Balance sheets As at August 31,	1996	1995
ASSETS Cash Receivables Investments (note 4)	$ 61,568 42,608 5,164,775 $ 5,268,951	$1,061,710 421 4,099,255 $ 5,161,386
LIABILITIES Accounts payable	$ 4,800	$ 3,925
FUND BALANCES (note 5)
Restricted Fund Operating Fund	5,058,000 206,151 5,264,151 $ 5,268,951	5,023,500 133,961 5,157,461 $ 5,161,386

ON BEHALF OF THE BOARD
Henri Audet, Director
Louis Audet, Director

1. STATUS AND NATURE OF BUSINESS
The Fund, incorporated July 26,1991 under the provisions of Part II of the Canada Corporations .Act, is a non-profit organization. It encourages and promotes the development of new independently produced Canadian Television Programming.

2. SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared inaccordance with generally accepted accounting principles. Significant accounting policies are as follows: i. Development advances are charged to current expenditures as disbursed. Recovery of development advances is recorded as revenue when received. ii. Interest income is accounted for on an accrual basis. iii. A statement of changes in financial position is not provided since disclosure in the statements of operations, Fund balances and the balance sheet is considered adequate.

3. DEVELOPMENT ADVANCES
The advances made during the year bear no interest and are repayable on the first day of principal photography of the series. Moreover, during the year, thc Fund authorized funding for ongoing projects which were not completed by year-end. As at August 31,1996, there were commitments for a total amount of $ 29,500 ($ 32,500 in 1995).

4. INVESTMENTS
lnvestments are recorded at cost. Their market value as at August 31.1996 amounted to $ 5,202,354 ($ 3,980,973 in 1995). When the value has been permanently impaired. the Fund's policy is to reduce its invest ments to their estimated realizable value.

5. FUNDS
a) The Fund is comprised of a Restricted Fund and an Operating Fund. The Restricted Fund, amounting to $ 5,058,000 as at August 31,1996 ($ 5,023,500 as at August 31 1995), is restricted in perpetuity. 50% of recovered advances during the fiscal year is transfered from the Operating Fund to the Restricted Fund. Income earned on the Restricted Fund is used to make development advances and to finance the Operating Fund's activities. The Operating Fund includes operating revenue and expenses. b) As at August 31,1995, Cogeco Cable Canada lnc. completed the commitment made by COGECO Inc. to the Canadian Radio-Television and Telecommunications Commission whereby the Cablenet Division would donate $5,000,000 to the Fund over a period of five years.

6. PRIOR PERIOD ADJUSTMENTS
Prior period adjustments result from a change in an accounting policy. Development advances and corresponding recovery are now accounted for as expenses and revenue respectively. Restatements of Operating Fund balances at beginning for the years ended August 31,1996 and 1995 amount to $ 217,150 and $ 120,650, respectively, in the year.