To the Members of
Dufferin Child and Family Services
Orangeville, Ontario

We have audited the statement of financial position of Dufferin Child and Family Services as at March 31, 2001 and the statements of revenue and expenditures and fund balances for the year then ended. These financial statements are the responsibility of Dufferin Child and Family Services management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of Dufferin Child and Family Services as at March 31, 2001 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles disclosed in the Summary of Significant Accounting Policies.

/signed/ BDO Dunwoody LLP

Chartered Accountants

Orangeville Ontario
May 15, 2001


BDO Dunwoody LLP is a Limited Liability Partnership registered in Ontario

March 31, 2001

1. Capital Assets

	Cost	Accumulated Amortization	2001 Net Book Value	2000 Net Book Value
Land	$ 100,000	$ -	$ 100,000	$100,000
Building	146,122	4,566	141,556	145,209
Vehicles	49,148	27,892	21,256	31,086
Leasehold improvement	17,764	1,838	15,926	2,466
Furniture and equipment	90,553	55,160	35,393	33,615
Computer equipment	75,557	52,935	22,622	16,979
	$ 479,144	$ 142,391	$ 336,753	$ 329,355

2. Unrestricted Fund Balances

Unrestricted fund balances are comprised of the following:

	2001	2000
Child Protection Service	$ (74,744)	$ (20,103)
Children's Mental Health	(2,017)	(2,017)
Child Sixual Assault Counselling Program	(7,890)	(9,051)
Community Resource Program-Adult	11,275.	(1,688)
Community Resource Program-Children	2,683.	2,683.
Parent Infant Program-Resources	(2,633)	(2,633)
Special Services At Home	(8,929)	(6,677)
Associate Home Program	411.	1,175.
	$ (81,844)	$ (38,311)

3. Commitments

The lease for 50 Fourth Ave office premises extends until November, 2001.

Annual rent under the lease is as follows:

      2001  $71,150 

The organization has signed a contract with Citicorp Vendor Finance Ltd. re lease on photocopier and fax machine until April 2004
Annual rent under the lease is as follows:

      2002  $10,922
      2003  $10,922
      2004  $10,922 

In addition to leased premises, the organization has an agreement with the Ministry of Community and Social Services whereby the Ministry leases computer equipment then subleases this equipment to agencies. Under the terms of this agreement the organization has committed to the following lease payment:

      2001  $27,184

On April 2, 2001 the agency purchased land and buildings at 235 Broadway for a purchase price of $385,000. $375,000 will be financed at prime plus 1/2 over 20 years.

4. Contract with the Ministry of Community and Social Services

A review of the APER report shows that the Society's contract with the Ministry of Community and Social Services to be in a deficit position as at March 31, 2001 as follows:

	Total Revenue	Total Expenditures	Surplus (Deficit)
Child Protection Service	$ 3,405,461	$ 3,480,389	$ (74,928)
Children's Mental Health	625,244	625,244	-
Community Resource Program-Adults	156,353	143,390	12,963.
Community Resource Program-Children	100,489	100,489	-
Parent Infant Program-Resources	202,383	202,383	-
Family Relief	92,747	92,747	-
Enhanced Respite Services	20,000	20,000	-
Special Services At Home	305,916	305,954	(38)
Associate Home Program	79,136	79,900	(764)
	$ 4,987,729	$ 5,050,496	$(62,767)

5. Financial Instruments

The Society's accounts Instruments consist of accounts receivable, bank advances, accounts payable and accrued charges, Due to Province and Due to trust account. Unless otherwise noted, it is management's opinion that the company is not exposed to significant interest, currency or credit risks arising from these financial instruments approximated their carrying values, unless otherwise noted.

6. Pension Agreements

Dufferin Child and Family Services makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS) which is a multi-employer plan on behalf of the employees. The plan is a defined benefit plan which specifies the amount of retirement benefit to be received by the employee based on the length of service and rates of pay.

The amount contributed to OMERS for fiscal and 2001 was $ NIL (fiscal 2000 - $ NIL) for current service. Effective August 1, 1998 through December 31, 2001 the OMERS Board introduced a temporary contribution holiday for active members and participating employers. OMERS member and employer contribution rates for current service will both be 0%.

7. Salary Disclosure

For the calendar year ended December 31, 2000, no employees were paid a salary as defined in the Public Sector Salary Disclosure Act, 1996, of $100,000 or more by Dufferin Child and Family Services

8. Statement of Cash Flows

A statement of cash flows has not been included in the financial statements as the statement would not provide any additional information to users of the financial statements

9. Trust Funds

Clients funds held in trust at March 31, 2001 amount to $88,210 (2000 - $70,955).

To the Board of Directors of
Dufferin Child and Family Services
Orangeville, Ontario

The audited financial statements of the Dufferin Child and Family Services as at March 31, 2001 and our report thereon dated May 15, 2001 are presented in the preceding section of this annual report. The financial information presented hereinafter was derived from the accounting records tested by us as part of the auditing procedures followed in our examination of the financial statements and, in our opinion, it is fairly presented in all material respects in relation to the financial statements taken as a whole.

These schedules have been prepared on the basis of accounting required by the Ministry of Community and Social Services

/signed/ BDO Dunwoody LLP
Chartered Accountants

Orangeville Ontario
May 15, 2001

BDO Dunwoody LLP is a Limited Liability Partnership registered in Ontario