Revenue

   Membership Dues & Donations            $ 91,620.27
   Contract Revenue (Chebucto Suite)        34,020.00 
   Fundraising Revenue                         521.00  
   Contributions in Kind (Note 2)           47,400.00
                                          ___________
TOTAL REVENUE                             $173,561.27

Expenses

Operating & Development Expenses

   Administrative Salaries                $ 10,579.84
   Development Salaries                      6,094.09
   Contract Expense                         24,927.95
   Employee Benefits                         3,363.19
   Fundraising and Promotion                 1,357.37
   Internet Connection Fees                 14,056.28
   Office Expenses.............
      Office Phone             $285.01
      Office Supplies           131.72
      Office Furniture          136.58
      Postage                   371.95
      Long Distance & Fax       125.77
      Printing                  148.53......1,999.56 
   Telephone Fees (modem lines)            43,371.15
   Travel                                   3,320.26
   Equipment Purchases                        456.37
                                         ___________     
Total Operating & Development Expenses   $109,357.78 

Contributed Services

   Equipment Rental                      $ 11,100.00
   Facilities Management                   18,000.00
   Office Rent                              4,800.00
   Operations Management                   13,500.00
                                         ____________
Total Contributed Services               $ 47,400.00

TOTAL REVENUE                            $173,561.27
 LESS TOTAL EXPENSES                      156,757.78
                                         ___________
NET SURPLUS/(DEFICIT)                    $ 17,435.21
                                         ===========

Assets

   Bank                                   $ 13,019.56
   Prepaid Expenses                          3,521.97
   Accounts Receivable                         893.68
                                          ___________
TOTAL ASSETS                              $ 17,435.21
                                          ===========

Liabilities & Surplus

   Surplus                                $ 17,435.21 
                                          ___________
TOTAL LIABILITIES & SURPLUS               $ 17,435.21
                                          =========== 

Note 1 Accounting Policies

The cost of fixed assets acquired for the operation of the Chebucto Community Net are expensed in the year of acquisition. Contributions in kind to the society are reflected in the financial statements where it is possible to estimate an equivalent market value of services provided.

Commercial discounts are reflected in the financial statements where services provided to the Society under contract are discounted in support of the aims of the Society. The discounts are calculated as being the difference between the estimated commercial value of the contracts and the amounts paid. Prior years have been restated to reflect these discounts.

Note 2 Contributions in Kind

       Dalhousie University                 $ 37,800.00
       Sun Microsystems                        9,600.00
                                            ___________
                                            $ 47,400.00

In addition to the above contributions the society benefited from additional core support in the form of contracts for services at substantially below commercial value.

ISIS provided our network connection until October 1996, when our contract expired. The contract had an estimated commercial value of $16,740.00 our cost was $3,313.68. This represents a contribution of $13,426.32. Since October Chebucto Community Net has been provided an Internet connection through Interuniversity Services Inc at an amount of approximately $1,200.00 per month.