ANNUAL REPORT

2018

TABLE OF CONTENTS

01 Message from the Chair ...........................1

02 Executive Committee & Staff ................2

03 Alberta Chambers of Commerce

Organizational Chart ................................3

04 Chamber Members ....................................5

05 80th Provincial Conference &

Policy Session ............................................ 6

06 Canadian Chamber of Commerce ...... 9

07 Roundtables ...............................................10

08 Chamber of the Year Awards ............... 11

09 Political Action Day and

MLA Dinner ................................................ 13

10 Fall Board Meeting/

Deputy Ministers’ Dinner .......................14

11 2018 Advocacy Timeline ....................... 16

12 Policy Committee .................................... 18

13 2018 Alberta Business Awards

of Distinction ............................................20

14 Alberta Chamber Executives ............. 23

15 ACC Excellence Summit .......................24

16 Sponsorship Opportunities .................26

17 Corporate Members ............................... 27

18 Value-Added Programs ........................28

19 Management’s Discussion

& Analysis ..................................................30

20 Independent Auditor’s Report...........36

MESSAGE FROM THE CHAIR

In 2018, Alberta’s chamber network championed the cause of prosperity for all Albertans, mapping a path to new opportunities for prosperity and supporting businesses in overcoming those challenges they faced. Emerging risks to businesses’ health from new public policy developments did not eclipse the opportunities to advance businesses’ interests in public discourse.

This year, the ACC actively warned against the unintended consequences of public policies which would delay business’ ability to create jobs and wealth for all Albertans. Mounting debt, both provincially and federally, results from our governments’ failure to balance their budgets and continues to deter investors. Systemic dependence on non-renewable resource revenues to fund provincial spending remains unaddressed and casts doubt on Alberta’s long-term fiscal sustainability.

While the provincial government slowed-down the rapid layering of costs seen in 2017, the trend of adding new costs for business was not reversed. Minimum wage reached $15 an hour in October, driven by a government undeterred by concrete empirical evidence of sluggish job growth. New regulations on methane emissions were introduced, adding significant costs to Alberta’s energy industry.

The combined impact of these cost layers and a simultaneous widening of the discount on Alberta’s oil in export markets reversed job recovery in a palpable manner - from January to September, Alberta saw no net growth in payroll jobs. Throughout 2018, the ACC predictably and consistently highlighted the continuing impacts of these trends through its submissions and meetings with government officials.

Political leaders both federally and provincially pointed to the expansion of the Trans Mountain pipeline as the golden key to unlocking our economic recovery. With more access to Asian markets, Alberta’s energy industry would see greater profits, driving investment and job creation. The federal government doubled-down its bet on Trans Mountain to propel economic growth, purchasing the pipeline outright from Kinder Morgan who was considering withdrawing the expansion proposal. They simultaneously anted up on an overhauled environmental review process which would replace the National Energy Board. The ACC has continually voiced concerns that the newly proposed regulatory regime in its current form will deter private infrastructure investments and the growth of Canada’s energy sector.

Anticipating the importance of the 2019 provincial election and the need to ensure business needs were a major component of the next government’s mandate, the ACC developed the Vote Prosperity campaign. Launched in November with the support of chambers across the province, the campaign provided a ‘business platform’ whose recommendations were intended to be adopted by political parties ahead of the dropping of the writ in 2019. Throughout the election period, those recommendations - drawn from the ACC’s policy book in consultation with community chambers throughout the summer - provide political parties, candidates, and voters, the clear steps most crucial to attracting new investment, creating jobs, and supporting a more diverse and resilient economy.

We are indebted to our network’s support of the groundbreaking work we have done this year. The impact we have had on this election is evident. It is vital we continue building momentum based on our principles of non-partisan, grassroots advocacy. Our work is not done and 2019 will bring its own challenges. As the voice of Alberta business, I know the ACC network has a bright future as we advocate to new provincial and federal government’s in the coming year.

Shauna Feth CHAIR, Alberta Chambers of Commerce

01

1

EXECUTIVE COMMITTEE STAFF02

SHAUNA FETHCHAIR

KEN KOBLYPRESIDENT & CEO

SHAWNA MILLERCHAIR ELECT

ROSETTA TAYLORFIRST VICE CHAIR

BRUCE GALTSSECOND VICE CHAIR

AARON FLEMINGTREASURER

CHRIS DUGANPAST CHAIR

JONATHAN SEIBPOLICY MANGER

TRACY ACORNCHAMBER SERVICES MANAGER

JASON LESLIECOMMUNICATIONS MANAGER

QUINN CANDLER / JANEL CHAPUTMARKETING & COMMUNICATIONS COORDINATOR

JILLIAN MCGUIRE EVENTS & CORPORATE RELATIONS MANAGER

2

ALBERTA CHAMBERS OF COMMERCE ORGANIZATIONAL CHART03

Rosetta TaylorFIRST VICE CHAIR

Bruce Galts SECOND VICE CHAIR

Aaron FlemingTREASURER

Chris Dugan PAST CHAIR

Jillian McGuireEVENTS & CORPORATE RELATIONS MANAGER

COORDINATOR

Quinn Candler / Janel ChaputMARKETING & COMMUNICATIONS

COORDINATOR

Tracy AcornCHAMBER SERVICES

MANAGER

Jonathan SeibPOLICY MANGER

Jason LeslieCOMMUNICATIONS

MANAGER

The Executive Committee is formed from leading chamber volunteers from around Alberta. This year’s Executive Committee members are based in Sherwood Park, Camrose, Grande Prairie, Spruce Grove, Lethbridge, and Calgary.

BOARD OF DIRECTORS

Executive Committee(STRATEGIC OPERATIONS)

Shauna Feth CHAIR

Shawna Miller CHAIR ELECT

Ken KoblyPRESIDENT & CEO

3

Edmonton

Red Deer

Calgary

Lethbridge

Medicine Hat

Grand Prairie

Fort McMurray

63

63

88

58

58

88

88

35

35

35

64

02

02

02

02

55

02

02

21

21

21

21

56

56

53

5353

20

56

02A

01A

12X

02

22

22

22

54

22

22

23

24

22

25

36

36

36

27

27

09

09

61

03

03

04

62

0303

03

05

02

02

06

01

01

01

01

23

07

01

40

08

09

0972

09

1001

33

3332

32

1616 16

16

16

16

36

36

36

36

15

45

4545

28

28

41

41

41

55

55

36

63

02

18

63

44

44

3343

43

28

02

49

49

49

43

4359

40

40

47

93

11

11

12

11

12

12

12

13

1313

14

14

39

26

14

12

41

41

41

41

48

61

54

72

835210

45

94

50

57

59

42 44 118

38

18

12

87

63

11

15

03

34

102

90

0692

85

1074093

23

105 80

37

24

11153

390932

31

01

27

20

17

3679

65

56

78

25

47

33

86

22

7089

68 26

46

14

76

84

108

117

10425

19

58

02

05

109

67 91

97

115

112

6607

21

60

29

88

82

30

119

11673 69

74

43

64

101

71

13

62

16

04

28

49

9541

35

110

120

77

100

99103

98

81

0851

75

55

96

113

106

121

114

4

01 Airdrie

02 Alberta Beach

03 Alix

04 Athabasca

05 Barrhead

06 Bashaw

07 Beaumont

08 Beaverlodge

09 Beiseker

10 Berwyn

11 Blackfalds

12 Bluffton

13 Bonnyville

14 Bow Island/Burdett

15 Bow Valley

16 Boyle

17 Bragg Creek

18 Breton

19 Brooks

20 Calgary

21 Camrose

22 Cardston

23 Caroline

24 Carstairs

25 Chestermere

26 Claresholm

27 Coaldale

28 Cochrane

29 Cold Lake

30 Consort

31 Cremona/ Water Valley

32 Crossfield

33 Crowsnest Pass

34 Delburne

35 Devon

36 Diamond Valley

37 Didsbury

38 Drayton Valley

39 Drumheller

40 Eckville

41 Edmonton

42 Edson

43 Elk Point

44 Evansburg/Entwistle

45 Fairview

46 Foremost

47 Fort Macleod

48 Fort McMurray

49 Fort Saskatchewan

50 Fox Creek

51 Grande Prairie

52 Grimshaw

53 Hanna

54 High Level

55 High Prairie

56 High River

57 Hinton

58 Innisfail

59 Jasper Park

60 Killam

61 La Crete

62 Lac La Biche

63 Lacombe

64 Lamont

65 Langdon

66 Leduc

67 Legal

68 Lethbridge

69 Lloydminster

70 Magrath

71 Mallaig

72 Manning

73 Mannville

74 Marwayne

75 McLennan

76 Medicine Hat

77 Morinville

78 Nanton

79 Okotoks

80 Olds

81 Onoway

83 Oyen

83 Peace River

84 Picture Butte

85 Pigeon Lake

86 Pincher Creek

87 Ponoka

88 Provost

89 Raymond

90 Red Deer

91 Redwater

92 Rimbey

93 Rocky Mountain House

94 Sexsmith

95 Sherwood Park

96 Slave Lake

97 Smoky Lake

98 Smoky River

99 Spruce Grove

100 St. Albert

101 St. Paul

102 Stettler

103 Stony Plain

104 Strathmore

105 Sundre

106 Swan Hills

107 Sylvan Lake

108 Taber

109 Thorhild

110 Thorsby

111 Three Hills

112 Tofield

113 Valleyview

114 Vauxhall

115 Vegreville

116 Vermilion

117 Vulcan

118 Wabamun

119 Wainwright

120 Wetaskiwin

121 Whitecourt

Honorary Lifetime Membership Ron Chapman

CHAMBER MEMBERS04

5

80TH PROVINCIAL CONFERENCE & POLICY SESSIONGRANDE PRAIRIE

Every year members of our federation gather in a different Alberta community for three days of meetings, learning and networking.

Highlights of the 2018 Provincial Conference in Grande Prairie include:

• 75 delegates were in attendance representing 30 chambers.

• A total of 189 guests participated throughout the weekend

• The Grande Prairie Chamber hosted us for an exclusive Fun Night at the Philip J. Currie Museum.

• Guests gathered in the National Geographic Theatre to take in the Policy Showdown, a debate between ACC Staff on an emerging and important policy topic. This year’s debate question was, “Should Alberta adopt a provincial sales tax”?

• Delegates at the policy session debated 25 policies, all of which were approved.

• We welcomed Shauna Feth of Camrose as incoming Chair.

• We said farewell to Sean Ballard of Calgary, who stepped off the Executive Committee.

We’re looking forward to Camrose for 2019!

05

Perrin Beatty, President & CEO of the Canadian Chamber, presents on behalf of the national network.

6

Delegates at the policy session debated and approved 25 policies.

The 2018 Policy Plenary Session was chaired by ACC Past-Chair and Parliamentarian, Carman McNary. This was Carman’s second time guiding the session.

Jason Leslie, ACC Communications Manager, and Jonathan Seib, ACC Policy Manager, debate an Alberta sales tax during the Policy Showdown in the National Geographic Theatre during the Fun Night – By popular vote, Jon loses the debate and faces the consequences.

7

Delegates enjoy the tour of the Philip J. Currie Museum where the Grande Prairie Chamber hosted the fun night.

Incoming Chair, Shauna Feth and Outgoing Chair, Chris Dugan, follow the Piper to start the traditional Chair’s Dinner.

Delegates tour Seven Generations Energy’s facilities including drilling and pumping facilities, learning about their responsible development of energy resources in Alberta’s northwest region.

8

CANADIAN CHAMBER OF COMMERCE06 THUNDER BAY

AGM DELEGATESAlberta was proud to have one of the largest provincial delegations in 2018 at the Canadian Chamber’s AGM, which was held from September 22 to the 24 in Thunder Bay, Ontario.

Here are some highlights of the event:

• With chambers sending 58 delegates and providing ACC with their proxies, Alberta was able to carry 116 votes, the highest of any province, at the policy session.

• Chambers in Alberta sponsored 9 of the 79 resolutions presented at the policy session. Of those Alberta policies, 5 policies were approved, 1 was defeated, 1 was withdrawn, and 2 were referred to the Board of Directors for consideration.

• Alberta’s caucus displayed tremendous depth of knowledge throughout the two-day session. Our diplomatic, articulate delegates provided strong leadership on the floor and in pre-conference discussions with other chambers regarding their policies.

• ACC President & CEO Ken Kobly was honoured as the Chamber Executive of the Year by the Chamber of Commerce Executives of Canada.

Read the Canadian Chamber’s recap of the Conference.

Alberta [58]

British Columbia [33]

Saskatchewan [14]

Manitoba [9]

Ontario [86]

Quebec [5]

New Brunswick [9]

Nova Scotia [11]

Newfoundland [4]

PEI [5]

Yukon [4]

NWT [2]

Nunavut [2]

The 2019 AGM is in St. John, the CCC will celebrate two important milestones: the anniversary of their very first AGM, which was held in Saint John in 1926, and the 200th anniversary of the Saint John Region Chamber of Commerce.

tidbit

Federal Minister Patty Hajdu presents during the conference.

Chambers participate in education and policy debate sessions throughout the weekend.

9

ROUNDTABLES

The ACC Roundtables for 2018 took place in 5 communities across Alberta: Sherwood Park, St. Paul, Taber, Sylvan Lake, and Strathmore. The ACC is grateful to those chambers for assisting us with planning and hosting these events.

The Roundtables drew over 100 chamber volunteers and staff who shared a meal and conversation about topical issues and what’s happening within their respective communities. The ACC surveyed attending chambers on education topics for each event. This enabled us to shape the agendas for the day to best suit the needs of attendees. Education presentations included Board Governance and “Chamber 101”, an overview of the ACC’s Value-Added Benefits, Chambers Group Insurance Plan, How to Advocate to Government, a Chamber’s Role in Economic Development, Connecting with Youth, and the Chamber Connector Mobile App.

If your chamber is interested in hosting a Roundtable in your community, please reach out to Tracy Acorn, Manager of Chamber Services, to learn more at tacorn@abchamber.ca. Roundtables are open only to chamber volunteers and staff. If you have yet to join us for one, please consider doing so in 2019. The ACC finds them invaluable and we hope you will too.

Thank you to all those who participated, we look forward to seeing you at one of six scheduled sessions in 2019!

07

10

CHAMBER OF THE YEAR AWARDS

The Executive of the ACC takes the recognition of chambers within our federation seriously. The strength of our federation is largely due to our grassroots, boots-on-the-ground approach. That is why chambers are able to connect and advocate to bring positive change for Alberta business. The Annual Chamber of the Year Awards are a small way in which the ACC recognizes members’ commitment to the chamber movement and the tireless work they do in their communities.

St. Paul & District Chamber of CommerceSustainability, community engagement and growth, and value proposition are the

“pillars” chosen by the St. Paul & District Chamber that enable them to provide direction and the basis for balanced, measurable results in achieving their mission.

Conscious efforts were made to partner with other agencies in the community to maximize efforts, reduce duplicity, and create new opportunities. These opportunities include events such as the Health and Wellness Expo, a Career Fair, and participation in the Systemic Racism Dialogues and Walk.

The St. Paul Chamber has worked hard to connect business with resources, information, and opportunity. Greater engagement and understanding of their community’s businesses has led to their recognition with this award.

Drumheller’s Heather Bitz and Marley Henneigh pose for Chamber of the Year (Membership between 151-350).

Drumheller & District Chamber of CommerceWith 238 members, this chamber is a forward thinking and diverse organization which has been around since the early 1900’s. Lunch & Learns, a Spring Expo & Trade Show, Annual Golf Tournament, and an incredibly popular Canada Day Parade are just some of the networking events they host each year. The Drumheller Chamber provides a provincially accredited Visitor Information Centre, and also oversees one of the world’s largest attractions and gift shop. This Chamber had a big win in 2017 when a policy was put forward by the business advocacy committee recommending the town adopt a “shop local” component. With the Chamber’s commitment to support and engage business, one might say they have been a ROARING success.

08

CHAMBER OF THE YEAR

CHAMBER OF THE YEAR

(MEMBERSHIP BETWEEN 151-350)

(MEMBERSHIP UNDER 150)

11

Past Chair, Chris Dugan, presents Lloydminster’s Serena Sjodin with the award for Chamber of the Year (Membership between 351- 650).

Red Deer’s Robbin Bobocel, Reg Warkentin, and John Mackenzie accept Chamber of the Year (Membership over 651).

Lloydminster Chamber of Commerce This chamber has raised the advocacy flag and ran with it.

They are a clear voice for their members on many issues that directly impact the bottom line for small business. Their advocacy efforts have been strong both locally and provincially, and their work has not gone unnoticed by members and non-members alike.

The Lloydminster Chamber puts its members first. They understand that looking after their existing supporters successfully will ultimately lead to growth. The Board of Directors acknowledged the need for a strategic approach to member retention and provided for the addition of a part-time Business Relations Leader. This has enabled a stronger focus on advocacy.

Nestled between two prairie provinces, they host many casual and fun events like Chamber on Tap and a Golf tournament, while balancing the educational needs of their 545 members.

Red Deer & District Chamber of CommerceThe Red Deer Chamber is known for its professional and community-driven approach. Its advocacy efforts are consistently strong and cross over a wide variety of local and provincial issues. Its collaborative approach has not only enabled successful advocacy wins, but also grown and strengthened relations within the region.

Connecting and informing business and community is vital to the Red Deer chamber. Their social media efforts have led to significant increases in traffic and outreach. This chamber forges ahead, dealing with critical issues all while maintaining a great sense of humour. The sign outside the chamber building shows their fun side with messages like, “Join the Chamber, Resistance is Futile”.

Despite difficult economic times and a transitional period internally, this chamber managed to see growth in membership and moved towards the future.

CHAMBER OF THE YEAR

CHAMBER OF THE YEAR

(MEMBERSHIP BETWEEN 351- 650)

(MEMBERSHIP OVER 651)

12

POLITICAL ACTION DAY AND MLA DINNER

Members of the government caucus attended the evening MLA Dinner on Political Action Day 2018. The day’s activities featured leaders from Alberta’s other political parties and presentations from media leaders on how to improve the network’s advocacy efforts.

Here are some highlights of the event:

• Liberal Leader, David Khan, Alberta Party Leader, Stephen Mandel, and UCP Leader, Jason Kenney, each participated as speakers during the day’s education sessions. Lunch was attended by some UCP MLAs.

• A media panel followed the leaders, with the Edmonton Journal’s Graham Thompson and 630 CHED’s Ryan Jespersen. Dave Cournoyer & Tom Vernon also participated in the panel.

• The evening saw 311 guests arrive for a reception and the MLA Dinner. Nearly all Government MLAs visited before and during dinner with representatives from 19 chambers, as well as corporate members and other guests.

• Before dinner, Minister of Finance, Joe Ceci, gave a speech and then kicked off a question-and-answer session. A wide variety of topics were discussed by our panelists.

09

Media panelists Graham Thompson, Tom Vernon, Dave Cournoyer & Ryan Jespersen discuss the political landscape.

Minister of Finance, Joe Ceci, takes questions from guests during the MLA Dinner.

UCP Leader, Jason Kenney, speaks to guests during the morning sessions.

13

FALL BOARD MEETING AND DEPUTY MINISTER’S DINNER

This year’s ACC annual Fall Board Meeting and Deputy Ministers’ Dinner created opportunities to discuss emerging trends in politics, policy, and business issues prior to the 2019 election. Education sessions during the day featured speakers identifying trends in policy and how they have impacted businesses throughout the province. Opportunities for growth were emphasized through discussions of diversification and innovation. In the evening, delegates met with some of the Province’s top civil servants at the annual Deputy Ministers’ Dinner.

Highlights included:

• Alberta Labour Law Updates (Presentation with Q&A) with Gabriel Joshee-Arnal from Neuman Thompson

• Lunch with Minister Deron Bilous to discuss Alberta’s Economic Development and Trade (Presentation with Q&A)

• Media Panel – Ryan Jespersen, Emma Graney, Graham Thomson, and Tom Vernon

• Alberta Innovates – Working to Support A Positive Future for Alberta Business Laura Kilcrease, CEO Alberta Innovates

This year’s Deputy Ministers’ Dinner was facilitated by Deputy Minister Jason Krips of Economic Development and Trade. In attendance were the ACC’s guests, as well as Alberta’s civil servants including 14 Deputy Ministers and 8 Assistant Deputy Ministers.

10

Deputy Minister of Economic Development and Trade, Jason Krips, facilitates the dinner Q & A period.

14

Laura Kilcrease, CEO Alberta Innovates, answers questions following her presentation.

Medicine Hat & District Chamber of

Commerce Executive Director, Lisa

Kowalchuk, asks a question during the

Q & A portion of the evening.

ACC Treasurer Aaron Fleming

kicks off the Media Panel

with Ryan Jespersen,

Emma Graney, Graham

Thomson, and Tom Vernon.

15

APR. 23 | Letter to the Alberta Energy Regulator on Proposed

Methane Emissions Regulations

2018 ADVOCACY TIMELINE11 WINS FOR BUSINESS

MEETINGS WITH OFFICIALS

CHAMBER SUBMISSIONS

Want to learn more about our advocacy on behalf of business?

GO TO OUR WEBSITE

JAN. 4 | Cannabis Secretariat - Retail Regulation Roundtable

JANUARY 2018

MARCH 2018

MAY 2018

FEBRUARY 2018APRIL 2018

JUNE 2018

JAN. 9 | Alberta Vital Statistics Staff - Common Business Number

MAR. 5 | Alberta Labour – Impairment Regulations and Workplace Safety

JAN. 16 | Provincial Budget Submission and Letter to Minister Joe Ceci

APR. 20 | Submission on changes to the Alberta Lobbyist Act

APR. 11 | Political Action Day and MLA Dinner

FEB. 7 | Finance Minister Joe Ceci – Alberta Provincial Budget

FEB. 14 | Jessica Littlewood, Parliamentary Secretary for Small Business – Cost layering and

Small Business Perspectives

FEB. 22 | Worker’s Compensation Board Consultation

01

03

05

0204

06

16

DEC. 7 | Letter to Senator Grant Mitchell – Bill C-69

DEC. 7 | Federal Natural Resource Minister Amarjeet Sohi and Staff – 2nd Letter on Bill C-69

DEC. 18 | Stephen Mandel, Alberta Party Leader – Vote Prosperity

OCT. 10 | Transportation Minister, Brian Mason – Transportation Policies

OCT. 16 | Senate Committee on Banking, Trade and Commerce releases a report supporting a Royal Commission on Taxation and tax system reforms

The Alberta Chambers of Commerce (ACC) is active in engaging its provincial and federal representatives on issues that are most important to Alberta businesses. This chart maps the highlights for Alberta’s voice for business in 2018.

Alberta Chambers of Commerce is federation of 121 community chambers who collectively represent 24,000 businesses.

SEP. 1 | Province completes its review of workplace safety and impairment regulations, creating education documents and templates for employers.

NOV 5 | Jason Kenney, United Conservative Party Leader – Vote Prosperity

SEPTEMBER 2018

NOVEMBER 2018

JULY 2018

DECEMBER 2018

OCTOBER 2018

AUGUST 2018

JUNE 2018

JUL. 26 | Federal Budget Submission

SEP. 11 | Education Minister, David Eggen – Education Policies

NOV. 5 | ACC Launches its 2019 election platform – Vote Prosperity

NOV. 8 | Akylbek Kamaldinov, Ambassador of Kazakhstan to Canada – Trade opportunities for

Alberta and Kazakhstan

OCT. 17 | Federal pre-Budget Consultations

SEP. 22-24 | Canadian Chamber of Commerce AGM & Policy Session

DEC. 3 | Letters to Deputy Premier Sarah Hoffman and Finance

Minister Joe Ceci – National Pharmacare Program

NOV. 23 | Nurse Practitioners receive expanded scope of practice

DEC. 1 | Caribou Range Planning Engagements are paused until after the Alberta Provincial election.

OCT. 1 | Medicine Hat College launches Alberta’s first Natural Gas Vehicle Training Program

AUG. 13 | 2019 Policies sent to Provincial and Federal Ministers and

Premier Notley

NOV. 28 | Federal Natural Resource Minister Amarjeet Sohi and Staff – Bill C-69

NOV. 21 | Letter to Federal Natural Resources Minister, Amarjeet Sohi – Bill C-69

09

11

07

12

10

08

17

POLICYCOMMITTEE

The Alberta Chambers of Commerce’s Policy Committee meets regularly to discuss issues affecting business, advocacy activities, and policy development.

ACC encourages every chamber to consider appointing at least one representative to the Policy Committee as the committee’s effectiveness expands with its membership. While the Policy Committee generally works on a consensus basis, chambers hold voting privileges, which are exercised when situations arise which require a vote.

The ACC is always pleased with the level of chamber interest in the Policy Committee. For 2018-19, the committee had 36 representatives from 19 chambers. The Committee adopted the four pillars of the ACC’s Vote Prosperity campaign as its strategic advocacy efforts for the 2018-19 year.

i. Strengthening Business Competitiveness

ii. Growing Provincial Trade

iii. Building Healthy Communities

iv. Improving Government Accountability

The committee meets regularly through conference calls until May and then gathers for an in-person meeting the day before the Annual Policy Session.

Meetings include roundtables, which see chambers discuss their local advocacy efforts, the economic situation in their region, and emerging concerns in their communities.

The committee also meets as required when ACC needs to obtain feedback and direction on emerging issues not addressed by existing policy.

12

18

As the February policy submission deadline approaches, participating in the committee allows chambers to work together to develop policies of common interest.

Chambers submit proposed policies to ACC in February and the Policy Committee determines whether they meet the required criteria for presentation at ACC’s Provincial Conference and Policy Session in May.

The ACC utilized the Policy Committee as a primary forum for discussing progress on the Vote Prosperity campaign, sharing successes in promoting the recommendations of the Vote Prosperity platform, and developing strategies to help community chambers engage with their local candidates.

The ACC appreciates chambers’ interest in participating in the Policy Committee because this group’s work provides us with the ability to recognize and react to issues facing Alberta’s business community.

The 2018/19 Policy Chair is

Shawna Miller of Grande Prairie.

Shawna is a business owner

who operates 17 Subway

restaurants in Northwest

Alberta.19

2018 ALBERTA BUSINESS AWARDS OF DISTINCTION

The Alberta Chambers of Commerce presented the 27th Alberta Business Awards of Distinction on March 2nd, 2018 in Edmonton at the Edmonton Airport Renaissance Hotel. Despite brutal weather, 270 storm troopers joined us for the event, the highest guest attendance we’ve had in a few years. Unfortunately, winners of four categories, were unable to make through the record snowfall in the Calgary area. Their awards were personally presented within 3 weeks of the event. A couple of firsts: This was a record year for the number of submissions received for each award category, it was the first year the Alberta Business Awards of Distinction received no funding from Government, and the previously named Premier’s Award was renamed as Alberta’s Best of Business Award. From this point forward, these Awards will be completely funded by business for business.

13

Edmonton comedian and radio personality, Peter Brown, was the evening’s Master of Ceremony.

2018 ALBERTA BUSINESS AWARDS OF DISTINCTION WINNERS

Arts & Culture Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Diversity Leadership Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Eagle Feather Award of DistinctionIN PARTNERSHIP WITH SYNCRUDE

Employer of Persons with Disabilities Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Evergreen Theatre & Community SPACES (Calgary)

SSC Family Restaurants o/a McDonald’s (Edmonton)

Seven Lakes Oilfield Services Corporation (Cold Lake)

Fluid Life (Edmonton)

20

Winner of Woman Entrepreneur Award of Distinction, Kathy Leskow of Confetti Sweets.

Employer of Youth Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Women Entrepreneur Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Marketing Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Export Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Small Business Award of DistinctionIN PARTNERSHIP WITH THE CHARTERED PROFESSIONAL ACCOUNTANTS OF ALBERTA (CPA ALBERTA)

Indigenous Relations – Best Practices Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE/PRESENTED BY SAMSON MANAGEMENT

YMCA of Medicine Hat (Medicine Hat)

Confetti Sweets (Sherwood Park)

Imagination Dental Solutions (Calgary)

BioNeutra North America Inc. (Edmonton)

Canmore Cave Tours (Canmore)

Noralta Lodge (Nisku)

21

Sponsor of the Small Business Award of Distinction, Darrell Jones of CPA Alberta.

Young Entrepreneur Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Alberta’s Best of Business Award of DistinctionIN PARTNERSHIP WITH THE ALBERTA CHAMBERS OF COMMERCE

Wave Engineering Consultants Inc. (Grande Prairie)

Brookline Public Relations (Calgary)

iPad WinnersIN PARTNERSHIP WITH INVEST IN YOU TODAY

• CIA Solutions (Grande Prairie)

• Grande Prairie Chamber of Commerce

22

ALBERTA CHAMBER EXECUTIVES

The Alberta Chamber Executives (ACE) is an association of chamber staff from across the province. Through membership in ACE, chamber professionals are provided with opportunities to share ideas and management strategies.

ACE members gather every year for a professional development summit where they participate in discussions and partake in professional development sessions. The Innisfail & District Chamber of Commerce hosted the 2018 ACE Summit from July 11 to 13.

The 56 participants at the 2018 Summit took part in a variety of fabulous and fun educational sessions.

ACE members participated in grant writing and social media workshops, learned how to use the Business Model Canvas, and were entertained by Faith Wood, who with great humour talked to the group about avoiding burnout.

While the ACE Summit is the most comprehensive gathering of chamber professionals, the organization also holds meetings in conjunction with the Alberta Chambers of Commerce’s events. Its executive and regular committees also meet monthly via teleconference.

The 2019 ACE Summit will be held in St. Paul, July 10-12th. Members look forward to another great year of education, professional development, and networking. Registrations for the Summit are available on the ACC website www.abchamber.ca and more information about ACE is available at www.abchamberexecutives.ca.

At the Chair’s Dinner held annually during the ACC`s provincial conference, ACE presents the Chamber Executive of the Year Award to a chamber executive chosen by their peers. Nomination submissions are available each spring in survey format for individuals who have made substantial contributions to their own community chamber and to the network.

At the 2018 conference in Grande Prairie, President Monica Bartman presented the ACE Executive of the Year Award to Tracy Acorn, Manager of Chamber Services with the Alberta Chambers of Commerce. Tracy has served as Treasurer of ACE for the past 6 years and is a key part of the Summit planning committee.

14

Group shot at the 2018 ACE Summit.

Tracy Acorn, Manager of Chamber Services with the ACC accepts Executive of the Year Award from ACE President, Monica Bartman.

23

ACC EXCELLENCE SUMMITDISNEY INSTITUTE

For nearly three decades, Disney Institute has helped professionals discover ways to positively impact their organizations and the customer they serve through immersion in leadership, service and employee engagement.

There are five powerful lessons in business, lessons carefully developed by the Disney organization in its never-ending pursuit of excellence. These universal pillars of a successful business—leadership, culture, service, brand and innovation—are the keys to sustained business excellence.

Together, these lessons forge an enduring bond between inspired leaders, motivated employees, satisfied customers, and an ability to drive stakeholder value.

The ACC has partnered with Invest in You Today for the past three years to bring Disney’s Excellence Training to Alberta. This partnership has culminated in the well-received ACC Excellence Summits, attracting attendees from all over the country.

The 2018 Summit took place at the Fantasyland Hotel from April 24-26.

15

Thank you to those chambers who came on as Marketing Partners and shared with your business communities. For more information visit investinyou.today.

Tracy Acorn of the ACC is all smiles.24

Event attendees pose with some of their favorite Disney Characters at the Ronald McDonald House Fundraiser.

An attendee of the ACC Excellence Summit – Disney

Institute shows off her mouse ears!

25

SPONSORSHIP OPPORTUNITIES

The Alberta Chambers of Commerce hosts a variety of events each year in order to raise the profile of Alberta business in our province and across Canada. These functions include:

16

Political Action DayThe leaders of Alberta’s opposition parties attend Political Action Day during the daytime portion of the event to speak to our guests and answer questions. The evening includes a networking opportunity with members of the provincial government caucus during a cocktail reception and dinner. This function offers an excellent opportunity to meet one-on-one with key government leaders.

Alberta Business Awards of DistinctionThe most influential business awards in the province are presented annually by the Alberta Chambers of Commerce. This event is funded by the business Community for the business community. The Awards recognize excellence in Alberta business, and are attended by over 250 business leaders and representatives from various levels of government, in support of finalists and entrepreneurs. The highlight of the gala is the presentation of the newly renamed Alberta’s Best of Business Award of Distinction.

Fall Board Meeting and Deputy Ministers’ DinnerThis full-day function begins with education sessions presented by knowledgeable and respected experts. The Deputy Ministers’ Dinner in the evening provides an opportunity to network with the provincial officials who lead Alberta’s ministries.

Provincial Conference & Policy Session Our three-day conference sees chamber representatives gather for education sessions, networking opportunities, our Annual General Meeting, and the annual policy session. The hosting chamber makes sure the event isn’t all work, by hosting “Fun Night” on the Friday. The conference concludes with the Chair’s Dinner, when the Chamber of the Year Award is presented.

MP Dinner This dinner provides attendees an opportunity to discuss matters of national importance with members of the federal government’s Alberta caucus.

VIEW THE SPONSORSHIP BROCHURE ONLINE

26

CORPORATEMEMBERS

• 50Free Calls

• A.P. Reid (formerly Robinson Insurance Brokers Ltd.)

• AFSC

• Alberta Chamber of Resources

• Alberta Hotel & Lodging Association

• Alberta Real Estate Association

• Alberta Road Builders & Heavy Construction Association

• Alberta Urban Municipalities Association

• Alberta Utilities Commission

• Alberta Weekly Newspapers Association

• AltaSteel

• APEGA(Association of Professional Engineers, Geoscientists of Alberta)

• Association of Alberta Registry Agents

• ATB Financial

• ATCO

• ATCO Energy Ltd.

• Athabasca University

• Axia SuperNet Ltd.

• BDC

• Bennett Jones LLP

• Border Paving Ltd.

• Building Trades of Alberta

• Business Link

• BILD Alberta

• Canadian National Railway

• Cenovus Energy Inc.

• City of Edmonton

• College of Physicians & Surgeons

• Concordia University College of Alberta

• Concrete Alberta

• Constant Contact

• CPA Alberta

• Credit Union Central of Alberta

• Dentons Canada LLP

• Doyle & Company

• Dynalife

• Edmonton Airports

• Enbridge Inc.

• EnCana Corporation

17• EPCOR

• Fairmont Hotel Macdonald

• First Data

• Foresight Canada

• Gateway Casinos & Entertainment Ltd.

• Graymont Western Canada Inc.

• Great Excavations Inc.

• CHPR (formerly HRIA)

• Indus Travel

• INSTIT

• Johnson

• Kinder Morgan

• Loblaws/Shoppers Drug Mart

• Marasco Consulting Ltd.

• Matheson Insurance/Sherwood Park Registries

• Micronet Inc.

• Northern Alberta Institute of Technology

• Oxford Properties Group

• Purolator Courier Ltd.

• RBC Financial Group

• Realtors Association of Edmonton

• Rogers Communications Inc.

• RHPAP- Rural Health Physician Action Plan

• Scotiabank

• Servus Credit Union

• SMS Equipment Inc.

• Stantec Consulting Ltd.

• Suncor Energy Inc.

• Syncrude Canada Ltd.

• TELUS Communications Inc.

• The Online Safety Training Network

• TransCanada Pipelines

• WCG International Consultants

• Western Management Consultants

• Westin Hotel Edmonton

• Willoughby & Associates Inc.

• Xerox, The Document Company Canada

• Yellow Pages Group Corp.

27

VALUE-ADDEDPROGRAMS18 PREFERRED MEMBER RATES FOR ALBERTA CHAMBERS MEMBERS

Why Chambers Plan? Simple, Smart, Stable Employee benefits are an important tool used by employers to attract new employees and retain experienced ones.The Chambers of Commerce Group Insurance Plan® is Canada’s largest group benefit program for small business, serving over 30,000 firms. If you are a Farm or Ranch we can build a plan for you too! Contact your local Chamber or visit www.chamberplan.ca for a free quote today!

visit

Group Benefits with a Difference. Simple. Stable. Smart.

Payment solutions you can rely on – As an Alberta Chamber Member, we know you work hard for your business, your employees and your family. And we think you deserve a break.MEMBERS BENEFITS:• Merchant Solution rates• Device rental waived for the first 6 months• Full Disclosure rate system• No Set-up fees for your merchant account• Unlimited Business Banking Account for only $30/month

(regular price $60/month) • No Annual Fee on an ATB business MasterCard for one

yearCall Chris Johnston 780-218-7029 or e-mail cjohnston3@atb.com

The preferred shipping partner of the Alberta Chamber of CommerceAs a member of your local chamber of commerce you can receive volume discounts up to 45% on Purolator Express® and Purolator Ground® services.Use the Purolator Mobile App, E-Ship Services and Online Billing options.Visit www.Purolator.com/acc for more information or to register your business.

Email-Events-Social Media-SurveysA complete marketing solution that helps you connect with customers and build your business. Save up to 25% when you sign up through your local Chamber of Commerce, even if you’re already a Constant Contact user!Visit www.ConstantContact.com/partners/chamber Call 1-800-221-2793 Email chamberprogram@constantcontact.com

Whether you’re a single sales force or a large fleet The Esso | Mobil Business Card program will give you exceptional fuel savings and help you manage your costs. Esso proudly has over 2,000 Esso and Mobil stations across Canada.Member businesses and their employees save 3.5¢/litre off retail posted prices. Visit www.essofleetoffers.com/AB-CHAMBER/ to learn more or sign up today.

Maintain Control, save time and money with The Esso™ | Mobil™ Business Card program.

Best Rate Home & Auto Insurance Johnson Inc. offers Chamber members discounted Home and Auto insurance. In addition to exceptional coverage and premiums, Johnson Inc. also offers 1 Air Mile for every $20 in premium. Quotes available by telephone 1-800-563-0677, or visit www.Johnson.ca/acc to access rate information

It’s easy to get started and gets immediate results for your business.Let 50FreeCalls.com help with your online marketing and watch your customer base grow. We will work with you to understand your online marketing needs, then develop custom ads that run on a specific schedule to maximize the number of people who call you - and we are the nicest in the biz!Special pricing for Chamber Members. Call today! 50FREECALLS.COM 1-844-450-FREE (3733)

Our specifically Tailored program offers preferred rates for your Chamber and your members insurance needs. Including coverage for:• Commercial Property & General Liability• Directors & Officers Liability (Non-profit and for-profit

entities)• Special Events Coverage including Host Liquor Liability• Specialty Coverages including –Professional Errors &

Omissions, Crime, Cyber… and much moreThrough their highly regarded and experienced team of professionals, Foster Park delivers exceptional standards of service, competence and a competitive pricing advantage. To find out more about the Chamber Advantage with FPB Contact: Wanita Quaia, Account Executive, Direct: 780-930-4399, Fax: 780-486-0169, Email: Wanita.quaia@fpb.ca

28

Realize significant savings, convenience, control and security. Discounts of $0.02/litre on all grades of gas and diesel, 20% discount on car washes and 3% discount on vehicle propane. Petro-Canada also introduces their pre-paid card, available in denominations of $10, $25, $50 and $100. A minimum of 200 litres/month must be purchased to qualify for this discount.Visit your local Chamber to apply now

Fuel Discount Program

Payment Processing Services – Credit Card Processing First Data provides preferred payment processing rates, and terminals and solutions to help Alberta Chamber Member businesses be more competitive. Earn a $1,000 MasterCard gift card if First Data cannot beat your current payment processing fees.To find out more, speak to one of our Business Consultants today at 1-888-265-4117Email chambermember@firstdata.comVisit www.chambermerchantservices.ca

Audio Conferencing, Web Collaboration, Webinar ServicesThe Alberta Chambers of Commerce has created an Audio Conferencing, Web Conferencing and Webcasting Affinity Program for its members. This includes:• 3.5¢/min Audio Conferencing rate for Chambers• 4.5¢/min Audio Conferencing rate for Chamber

Members• Electronic Invoicing, bilingual operator assistance, no

contracts or activation feesCall 1-855-253-4780 x 9771.

Did you know that Matheson Insurance has partnered with Economical Select® to offer members of the Alberta Chamber of Commerce exclusive group rates on car and home insurance? That means you can enjoy:• A discount on car insurance• A discount on home insurance• Potential extra savings when claims-free, conviction-free,

or bundling multiple policiesContact Geoff today to see how much you could save!Phone 780-417-2144 Email geoff@mathesoninsurance.ca

Payworks is a leading expert in the field of total workforce management solutions, providing innovative cloud-based solutions for Payroll, Human Resources, Employee Time and Absence Management to more than 17,000 businesses across Canada.View the Payworks brochure.Contact Payworks:Devin Chatterjee @ 1.403 249-4939 / 1 866 788-3500 Devin.chatterjee@payworks.caVisit payworks.ca / Facebook.com/Payworks / @PayworksInc

Welcome to your group advantage®

Members have an Audio, Web and Video Conferencing Affinity program 5.0¢ Audio Conferencing Rate; that is 45% below the industry average for rates.Contact Pamala Mathews @ 1-877-299-7070 ext. 4018 or PMatthews@accutel.com

A Membership Opportunity!

A Benefit Opportunity

Not Just a service provider - your

business partner

ACC negotiates value-added programs on behalf of the province’s chamber federation. These programs are available to business members of Alberta’s community chambers.

29

MANAGEMENT DISCUSSION AND ANALYSIS19 MARCH 25, 2019

The following is a discussion of the strategic plan and 2019 outlook, as well as the financial position, results of operations, and cash flows for the year ended December 31, 2018, for ACC. ACC reports its financial results under Canadian accounting standards for not for profit organizations.

ACC OVERVIEW, MISSION & OBJECTIVES, GOVERNANCE, AND STRATEGY

ACC is a federation of 121 community chambers of commerce, which in turn represent approximately 25,000 businesses in Alberta. In addition, ACC also has 77 corporate members who are also members of a community chamber. ACC is a not-for-profit, self-governing organization incorporated under the Societies Act of Alberta.

MISSION

WHAT WE STAND FOR:

• Kaizen (Continuous Improvement)

• Integrity• Collaboration• Reputation• Empathy

The Alberta Chambers of Commerce, a federation of community chambers, is THE advocate for Alberta business.ACC exists to provide support to our federation of chambers. ACC has at least one community chamber in each federal and provincial electoral riding. These facts, coupled with the reality that the policies for which we advocate are grassroots-driven, permit us to be the premier advocate for business in Alberta.

ACC VISION

The Alberta Chambers of Commerce will be the premier organization representing Alberta business.

30

KEY PERFORMANCE DRIVERS

As an organization operating in the not-for-profit sector, ACC is not driven solely by financial results, although financial indicators are relied upon to ensure the resources entrusted to it are used in an efficient and appropriate manner. Several non-financial indicators are also used and play a significant role in what drives the organization and how performance is gauged. ACC annually reviews, through a review of its strategic plan, its deliverables and priorities to ensure these continue to be well-aligned with its mandate. Ensuring ACC accomplishes what it sets out to do is one of its most important performance indicators. Specific deliverables are identified, along with the projected resources needed and the time horizon expected. Deliverables are expected to be completed on time, within budget, and at the highest quality possible.

OBJECTIVES

To achieve this mission, ACC will:

• Serve ACC stakeholders (chamber members, corporate members, sponsors, industry, and government).

• Build the relationship and continuity which has been established with media; be the “first call” on business issues.

• Provide responsive and informed policy comment and advocacy.

• Continue to strengthen the identity and style that encourages program participation and influence.

• Build on policy advocacy and community chamber involvement.

• Promote confidence in ACC.

• Ensure sufficient financial resources to achieve objectives.

• Support and develop the “chamber federation” concept.

STRATEGIES

To accomplish our objectives, ACC will:

• Encourage and promote professional development for volunteers and staff.

• Develop a new activity or undertaking to advance the ACC profile and relevance to members.

• Develop opportunities for post-secondary students and businesses under the Business Apprenticeship Program.

• Continue to improve media relations, explore new media opportunities, and monitor the success of media strategy.

• Search for new strategies to get ACC’s message to decision makers of all political stripes and orders of government.

• Increase effective two-way contact with community chambers.

31

GOVERNANCE

The ACC Board of Directors consists of the elected Presidents/Chairs of each of the 121 community chambers of commerce in the province. The term served on ACC’s board coincides with their term as President/Chair of a community chamber. The board elects a six-member Executive Committee to conduct business and represent ACC (see Page 2 for members).

HUMAN RESOURCES PERFORMANCE

The quality of ACC’s work environment and its ability to attract and retain highly skilled people are important indicators of ACC’s capacity to deliver results. The appropriateness and level of support for staff training and development; fair and reasonable working conditions and compensation practices; staff morale; and staff turnover all help to gauge ACC’s success at providing a high-quality working environment.

FINANCIAL PERFORMANCE

ACC sets financial targets annually through the budget process. ACC’s performance is determined by the extent to which financial objectives identified in the budget for the fiscal year are met and how effectively the financial resources of ACC are managed. Measurement is based on actual financial results for the year, compared to the budget and prior year.

CAPABILITY TO DELIVER RESULTS

ACC’s capability to deliver results is discussed in four areas: Capital Resources and Liquidity; Net Assets; Non-Financial Resources; and Systems and Processes.

CAPITAL RESOURCES AND LIQUIDITY

At December 31, 2018, ACC had a cash and cash equivalent balance of $939,165 versus $906,362 on December 31, 2017. ACC’s marketable investment consists solely of fixed income GIC’s which will mature from January 2019 to November 2022 and have interest rates of 1.7% to 2.45%. ACC accounts for its marketable investments at fair value. During the year, ACC acquired property and equipment totaling $2,161 ($3,251 – 2017). ACC believes that its current cash balance and anticipated cash flow from operations is sufficient to meet its working capital and capital expenditure requirements. Current Assets at December 31, 2018, were $535,235 ($491,574 – 2017) and Current Liabilities at December 31, 2018, were $217,918 ($193,970 – 2017). This indicates an increase in liquidity of the organization in the amount of $19,713 when we compare December 31, 2018, to December 31, 2017.

32

NET ASSETS

Net assets at December 31, 2018, amounted to $841,043 ($827,694 – 2017) and consisted of $23,726 ($30,090 – 2017) invested in capital assets, $500,000 ($500,000 – 2017) of internally restricted net assets and $317,317 ($297,604 – 2017) of unrestricted net assets.

UNRESTRICTED NET ASSETS AND INTERNALLY RESTRICTED NET ASSETS

ACC believes that unrestricted net assets should be maintained to ensure a stable financial base sufficient to:

• Avoid major fluctuations in member fees from year to year.

• Cover unpredictable costs.

• Finance property and equipment purchases.

• Provide start-up funding for special projects undertaken by the ACC.

Further, ACC believes that net assets should be restricted to an amount equivalent to three to six months of operating expenses. As ACC is dependent upon its events as a major source of income, net assets have been restricted in the amount of $500,000 in the event one of our events is cancelled or financially compromised.

NON-FINANCIAL RESOURCES

ACC relies heavily on experienced volunteers and employees to enable it to carry out its mandate. ACC has an experienced team of directors, staff and volunteers, and well-developed processes.

SYSTEMS AND PROCESSES

ACC maintains systems of internal accounting and administrative controls of high quality, consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the financial information is relevant, reliable and accurate and that ACC’s assets are appropriately accounted for and adequately safeguarded. ACC believes there are no deficiencies that would impair its ability to provide reliable and timely disclosure or affect its ability to execute its strategic plan.

2019 BUDGET SUMMARY

The 2019 budget was distributed to all community chambers in April 2019. The accounting policies applied in the preparation of the budget are consistent with those applied in the financial statements for the year ended December 31, 2018, as stated in the notes to the financial statements. However, as with any budget, actual results for 2019 may vary from the information presented. Ongoing reporting is presented at every board meeting and quarterly financial statements are emailed to all community chambers.

33

FUNDING AND FINANCIAL RISKS

ACC relies on member fees, event registrations and sponsorships, and value-added program administration fees. We have cautious optimism for 2019, however, ACC will need to, just as any other Canadian organization or business, continue to be mindful of expenditure control.

HUMAN RESOURCES

ACC depends on the services of volunteers to carry out some of its objectives. The talent and expertise of ACC volunteers are valuable resources to ACC. A risk exists that, in the future, needed volunteers may not be as willing or able to devote their time and talents to ACC. Without these valuable resources, there is a further risk that knowledge would be lost and significant cost would be incurred by ACC. Volunteer recruitment and board orientation and training programs are used to help manage risk in this area. ACC wishes to express its appreciation to all volunteers who give of their time to benefit and strengthen the federation.

RESULTS YEAR ENDED DECEMBER 31, 2018

The net positive variance from 2018 budget to 2018 actual was $12,917. The positive variance is the equivalent of .01% of budgeted expenditures. Major categories contributing to this overall negative variance are as follows:

VARIANCE

Event Income vs. expenditures – $(39,384)

Group Insurance Admin. Fees + 28,721

Other Revenue – (75)

Membership Fees (Corp & Chambers) – (47,150)

Travel Staff and Executive + 6,535

Salaries and Benefits + 62,136

Bad Debts + 709

Rent – (765)

Amortization – (725)

Other Expenses + 2,915

34

FORWARD-LOOKING STATEMENTS

Certain statements in this Annual Report and this Management Discussion & Analysis are forward-looking statements subject to risks and uncertainties. A number of factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, fluctuation in the number of community chambers and corporate members, as well as sponsorship decisions of our valued sponsors.

Today, 121 chambers of commerce belong to Alberta’s chamber federation, making us the largest business network in our province. Our members stretch across the province and, in turn, represent the 24,000 local businesses that work every day to drive Alberta’s economic engine.

35

INDEPENDENT AUDITOR’S REPORT20

INDEPENDENT AUDITOR'S REPORT

To the Members of Alberta Chambers of Commerce

Opinion

We have audited the financial statements of Alberta Chambers of Commerce, which comprise the statement offinancial position as at December 31, 2018, and the statements of change in net assets, operations, and cash flows forthe year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position ofAlberta Chambers of Commerce as at December 31, 2018, and the results of its operations and its cash flows for theyear then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilitiesunder those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report.

We are independent of the Organization in accordance with the ethical requirements that are relevant to our audit ofthe financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Other Information

Management is responsible for the other information. The other information comprises the management discussionand analysis (MD&A) in the annual report.

Our opinion on the financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we haveperformed, we conclude that there is a material misstatement of this other information, we are required to report thatfact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance withCanadian accounting standards for not-for-profit organizations, and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.

In preparing these financial statements, management is responsible for assessing the Organization's ability tocontinue as a going concern, disclosing, as applicable, matters related to a going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Organizations or to cease operations,or has no realistic alternative to do so.

Those charged with governance are responsible for overseeing the Organization's financial reporting process.

1.

36

INDEPENDENT AUDITOR'S REPORT CONTINUED

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withCanadian generally accepted auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professionaljudgment and maintain professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based

on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that

may cast significant doubt on the Organization's ability to continue as a going concern. If we conclude that a

material uncertainty exists, we are required to draw attention in our auditor's report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future

events or conditions may cause the Organization to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a

manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.

Edmonton, AlbertaMarch 25, 2019 Chartered Professional Accountants

2.

37

Alberta Chambers of Commerce

Statement of Financial Position

As at December 31, 2018

2018 2017

$ $

Current AssetsCash (Note 3) 234,481 144,068Restricted funds (Note 4) 49,307 69,453Short term investments (Note 5) 155,377 192,841Accounts receivable (Note 6) 81,562 70,134GST receivable - 13Inventories (Note 7) 715 1,551Prepaid expenses 13,793 13,514

535,235 491,574

Capital assets (Note 8) 23,726 30,090

Long term investments (Note 5) 500,000 500,000

1,058,961 1,021,664

LiabilitiesAccounts payable 88,757 51,059Chamber relief trust (Note 4) 49,307 69,453GST payable 3,928 -Deferred revenue (Note 9) 75,926 73,458

217,918 193,970

Net AssetsUnrestricted net assets 317,317 297,604Internally restricted net assets (Note 10) 500,000 500,000Equity in capital assets 23,726 30,090

841,043 827,694

1,058,961 1,021,664

Lease commitment - Note 12

Approved by the Board of Directors:

___________________________________Chair: Shauna Feth

___________________________________Treasurer: Aaron Fleming

The accompanying notes form part of these financial statements.3.

Alberta Chambers of Commerce

Statement of Change in Net Assets

For the year ended December 31, 2018

EquityInternally in Capital 2018 2017

Unrestricted Restricted Assets Total Total$ $ $ $ $

Balance, beginning of year 297,604 500,000 30,090 827,694 831,467

Excess (Deficiency) of revenue over expenses 13,349 - - 13,349 (3,773)

Capital asset additions (2,161) - 2,161 - -Current amortization 8,525 - (8,525) - -

Balance, end of year 317,317 500,000 23,726 841,043 827,694

The accompanying notes form part of these financial statements.4.

Alberta Chambers of Commerce

Statement of Operations

For the year ended December 31, 2018

2018 2018 2017

Budget Actual Actual(Unaudited)

$ $ $

RevenueCommunity chamber memberships fees 242,200 241,936 242,607Corporate membership fees 159,050 112,164 131,550Event registrations and sponsorships 354,000 315,857 202,947Group insurance administration fee 350,400 379,121 348,383Interest 12,800 12,785 10,041Value added administration fees 87,000 81,278 96,334Other revenue 40,020 45,682 104,296

1,245,470 1,188,823 1,136,158

ExpendituresAmortization 7,800 8,525 12,051Bad debts 6,000 5,291 6,675Bank charges 3,600 5,306 3,156Communications 13,580 5,896 10,570Corporate relations and promotions 6,000 2,039 3,592Equipment leases 9,000 8,776 8,889Events 242,000 243,241 173,707Insurance 3,960 3,851 3,856Office 30,800 42,687 40,010Professional fees 19,000 24,000 18,976Rent 69,692 70,457 64,089Salaries and benefits 746,126 683,990 713,925Staff training 12,000 3,079 173Subscriptions and memberships 2,580 1,971 14,617Travel - executive 32,800 30,121 30,783Travel - staff 40,100 36,244 34,862

1,245,038 1,175,474 1,139,931

Excess (Deficiency) of Revenue over Expenditures 432 13,349 (3,773)

The accompanying notes form part of these financial statements.5.

Alberta Chambers of Commerce

Statement of Cash Flows

For the year ended December 31, 2018

2018 2017

$ $

Operating Activities

Cash received from fees, registration, and sponsorships 1,167,091 1,124,253Cash paid to suppliers and employees (1,144,912) (1,122,549)Interest received 12,785 10,041

34,964 11,745

Investing Activities

Decrease (increase) in investments 37,464 (10,041)Purchases of capital assets (2,161) (3,251)

35,303 (13,292)

Increase (Decrease) in Cash During the Year 70,267 (1,547)

CASH - Beginning of year 213,521 215,068

CASH - End of year 283,788 213,521

Cash is comprised of:

Cash 234,481 144,068Restricted cash (Note 4) 49,307 69,453

283,788 213,521

The accompanying notes form part of these financial statements.6.

38

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

Description of the Organization

Alberta Chambers of Commerce ("Alberta Chambers") is incorporated under The Societies Act of Alberta as a non-profit, non-taxable organization. Alberta Chambers establishes and maintains a reciprocal relationship with localcommunity Chambers and Alberta businesses in order to lobby effectively on behalf of businesses at the provincialand national government levels.

1. Significant Accounting Policies

These financial statements have been prepared in accordance with Canadian Accounting Standards for Not-for-Profit Organizations ("Part III") of the CPA Canada Handbook - Accounting. Significant accountingpolicies are described below:

(a) Amortization

Capital assets are recorded at cost and amortized annually with a corresponding reduction in Equity inCapital Assets. Assets are amortized over their expected useful life using the declining balance methodat the following annual rates, except in the year of acquisition when one-half the normal rate isapplied. No amortization is recorded in the year of disposal.

Computer Hardware 30%Computer Software 100%Office Equipment 20%

(b) Revenue Recognition

Alberta Chambers of Commerce follows the deferral method of accounting for revenue. Unrestrictedcontributions are recognized as revenue when received or receivable if the amount to be received canbe reasonably estimated and collection is reasonably assured.

Membership fees, which are voluntary, are recorded as revenue on a calendar year basis. The portionof membership fees collected in a current year that provide members benefits in the following year(s)are deferred and recognized as revenue in the year the benefits are received.

Revenues and expenses related to projects or events are deferred until the fiscal year in which theytake place.

Interest revenue is recognized when received and when receivable if the amount to be received can bereasonably estimated.

(c) Cash & Cash Equivalents

Cash and cash equivalents consists of bank deposits and savings accounts with a term of three monthsor less.

(d) Investments

Investments comprise of term deposits recorded at fair market value, and are classified as short or longterm depending on the investment maturity date.

7.

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

1. Significant Accounting Policies - continued

(e) Financial Instruments

(i) Measurement of financial instruments

Alberta Chambers of Commerce initially measures all of its financial assets and liabilities at fairvalue, except for certain non-arm's length transactions.

Alberta Chambers of Commerce subsequently measures all of its financial assets and liabilities atamortized cost, except in equity instruments that are quoted in an active market, which aremeasured at fair value. Changes in fair value are recognized in net income.

Financial assets measured at amortized cost include cash, restricted funds, short term investments,accounts receivables, GST receivable and long term investments.

Financial liabilities measured at amortized cost include accounts payable, chamber relief trust andGST payable.

(ii) Impairment

Financial assets measured at cost are tested for impairment when there are indicators ofimpairment. The amount of the write-down is recognized in net income. A previously recognizedimpairment loss may be reversed to the extent of the improvement, directly or by adjusting theallowance account, provided it is no greater then the amount that would been reported at the dateof the reversal had the impairment not been recognized previously. The amount of the reversal isrecognized in net income.

(f) Contributed Goods or Services

The Alberta Chambers of Commerce receives the benefit of donated goods and services fromindividuals and organizations. The value of these contributed goods or services are recorded at fairmarket value in the financial statements. Volunteer time is not reflected in these statements.

(g) Inventories

Inventories are recorded at the lower of cost and net realizable value. Cost is determined using the firstin first out method.

2. Measurement Uncertainty

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profitorganizations requires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statementsand the reported amounts of revenues and expenses during the reporting period. Actual results could differfrom those estimates.

8.

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

3. Cash2018 2017

$ $

Operating 208,231 144,068Vote Prosperity 26,250 -

Ending balance 234,481 144,068

4. Restricted Funds and Chamber Relief Trust

The restricted funds are held for the Chamber Relief Trust. Alberta Chambers collects donations on behalfof local chambers when emergency situations occur. Funds collected are used to support the viability ofaffected chambers. This year Nil (2017 - $0) were collected subsequent to the Fort McMurray wildfires. Asof December 31, 2018, $20,000 (2017 - $0) has been distributed to the Fort McMurray Chamber. Anyfunds not accessed by Fort McMurray Chamber will be retained in trust for future emergencies.

2018 2017$ $

Beginning balance 69,453 69,592Bank charges (146) (139)Disbursements (20,000) -

Ending balance 49,307 69,453

5. Investments

Investments represent Term Deposits with a range of maturity dates from January 2019 to November 2022and interest rates of 1.70% to 2.45%. A portion of the investments have been allocated to long term as theyare internally restricted for net assets. See note 10.

2018 2017$ $

Principal 650,194 690,862Accrued interest 5,155 1,951Beaumont Credit Union - Common Share Member 28 28

655,377 692,841

Long term portion - internally restricted (500,000) (500,000)

Short term portion - unrestricted 155,377 192,841

9.

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

6. Accounts Receivable

2018 2017$ $

Accounts receivable 90,487 86,693Allowance for doubtful accounts (AFDA) (8,925) (16,559)

Ending balance 81,562 70,134

7. Inventories

The amount of inventories recognized as an expense during the period is $836 (2017 - $1,969), which isincluded in corporate relations and promotions expenses.

8. Capital Assets 2018 2017

Accumulated Net Book Net BookCost Amortization Value Value

$ $ $ $

Computer hardware 95,740 82,639 13,101 16,715Computer software 33,134 33,049 85 587Office equipment 74,815 68,165 6,650 7,926Leasehold improvements 13,190 9,300 3,890 4,862

216,879 193,153 23,726 30,090

10.

39

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

9. Deferred Revenue

The following funds have been deferred and will be recognized as revenue in the year which the relatedexpenses are incurred.

Opening Additions Consumed 2018 2017$ $ $ $ $

Alberta Business Awards Dinner (ABAD) 36,000 68,000 (48,500) 55,500 36,000

Chamber Membership - 184 - 184 -Oxford Tenant Improvements 29,958 - (9,716) 20,242 29,958Political Action Day (PAD) 7,500 - (7,500) - 7,500

73,458 68,184 (65,716) 75,926 73,458

10. Internally Restricted Net Assets

The internally restricted operating fund has been established by the Alberta Chambers of Commerceexecutive committee to cover the operating and administrative costs of the organization. The board has setaside $500,000 (2017 - $500,000) as a reserve to cover approximately three months of operating expenses.See note 5.

11. Line of Credit

The Alberta Chambers of Commerce has an operating line of credit with TD Canada Trust. The limit is$25,000 and the interest rate is prime plus 1.0%. To date the line of credit has never been used. The line ofcredit is unsecured.

11.

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

12. Lease Commitment

Alberta Chambers has committed to lease payments for both office space and equipment. The officeequipment lease expires April 2020 and the lease for office space expires January 2021. The annualoperating costs allocated by the landlord to the office space is not reflected below because this amountvaries each year therefore only the basic office lease payments are reflected in the schedule. Theorganization is committed to annual future minimum lease payments under the lease as follows:

Annual Leasehold NetMinimum Improvement AnnualPayment Allowance Payment

$ $ $

2019 51,872 9,715 42,1572020 46,047 9,715 36,3322021 3,676 813 2,863

101,595 20,243 81,352

The landlord has credited to the Alberta Chambers of Commerce a leasehold improvement allowance of$20.00 per square foot upon the occurrence or satisfaction of some criteria in the agreement of which one isthe commencement of the extension period (February 1, 2016 - January 31, 2021). Alberta Chambers ofCommerce does not plan to do any leasehold improvements during the extension period so the amount ofthe allowance ($48,580) will be credited against the monthly lease payments over 60 months.

13. Financial Instruments and Concentration of Risk

Credit Risk

Credit risk is the risk that one party to a financial asset will cause a financial loss for Alberta Chambers ofCommerce by failing to discharge an obligation. The credit risk is mainly related to trade accountsreceivable. Credit is provided to members and sponsors in the normal course of operations and the accountsreceivables are assessed by Alberta Chambers of Commerce and they record any amounts that are notcollectible in the allowance for doubtful accounts. The balance of the allowance for doubtful accounts as ofDecember 31, 2018 is $8,925 (2017 - $16,559).

Market Risk

Market risk is the risk that the fair value or future cash flows of Alberta Chambers of Commerce financialinstruments will fluctuate due to changes in market prices. Market risk is comprised of currency risk,interest rate risk, and other price risk. The Alberta Chambers of Commerce is mainly exposed to interestrate risk.

12.

Alberta Chambers of Commerce

Notes to the Financial Statements

December 31, 2018

13. Financial Instruments and Concentration of Risk - continued

Interest Rate Risk

Interest rate risk refers to the risk that the fair value of Alberta Chambers of Commerce financialinstruments or future cash flows associated with the instruments will fluctuate relative due to changes inmarket interest rates. The Alberta Chambers of Commerce is exposed to interest rate risk on its fixed rateand floating rate interest financial instruments. The fixed rate is subject to fair value risk while the floatingrate is subject to a cash flow risk.

Liquidity Risk

Liquidity risk is the risk that Alberta Chambers of Commerce will encounter difficulty in meeting itsobligations associated with financial liabilities. Alberta Chambers of Commerce manages its liquidity riskby monitoring its operating requirements and cash forecasts to ensure it has sufficient funds to fulfills itsfinancial obligations.

14. Budget Figures

The budget figures have not been audited and are for presentation purposes only.

15. Comparative Figures

Certain comparative figures have been restated to conform with the current year's presentation.

13.

40

ACC exists to provide support to our federation of chambers. ACC has at least one community chamber in each federal and provincial electoral riding.

41

ALBERTA CHAMBERS OF COMMERCE1808, 10025 - 102A AVENUEEDMONTON, AB T5J 2Z2

PHONE: 780-425-4180

TOLL-FREE: 1-800-272-8854

www.abchamber.cawww.albertavision2020.ca

www.abbusinessawards.com

facebook.com/ABChambersofCommerce

twitter.com/albertachambers