Broadcasting Participation Fund Inc. Update November 24, 2015 Presented by Andre Auger, CPA, CGA, CFE Costs Officer and CEO

Agenda  Corporate Statement of Purpose  Tasks of the Costs Officer  BPF Value Proposition  Metrics  Risk Management  Upcoming Issues

Corporate Statement of Purpose The purpose of the BPF:  Provide costs support to public interest groups and consumer groups representing non-commercial user interests and the public interest before the CRTC  Provide efficient and accessible service in English and French

Tasks of the Costs Officer Institution Building:  Define the mission and vision of the BPF  Develop cost award policies, processes, procedures, and funding criteria  Develop official Fund documents and forms  Create the Fund website General and Active Management:  Manage the Fund bank account  Receive and review claims, and prepare recommendations for the BPF Board of Directors  Communicate BPF decisions to applicants  Maintain proper application records

BPF Value Proposition  Quality and Professionalism - compliance with CPA Canada standards - quality assurance regime - annual external audit  Timely service - turnaround time in 2013 was days - in 2014 and 2015, days  Engaging the Community - maintain ongoing communication with applicants  Transparency - all cost awards decisions, the audited F/S, and the annual report all posted on the Fund website

Metrics  Fund net assets - at December 31, 2013 = $4.5M, composed of original contribution of $3M from BCE and a receivable of the next $2M contribution, minus operating costs - the $2M to be received in 7 installments from 2014 to at December 31, 2014 = $3.9M  Operating costs - at December 31, 2013 = $557K (includes cost awards of $331K) - at December 31, 2014 = $994K (includes cost awards of $801K) - at October 31, 2015 = $443,589 (includes cost awards of $310,087

Metrics – cont’d  Cost awards for claims from 11 applicants = $355, paid claims = $331,042 (adjustments = $4,633) - 8 denied claims = $20,136  Cost awards for claims from 13 applicants = $838, paid claims = $801,294 (adjustments = $6,483) - 7 denied claims = $31,035  Cost awards to October 31, claims from 10 applicants = $315, paid claims = $310,087 (adjustments = $4,557) - 1 claim pending review = $ claims denied

Risk Management Key risks are:  Claimants’ expectations incompatible with the mandate and services offered by the Fund - continue information exchange meetings with key groups - maintain on-going communication with claimants to gain a sound understanding of their organizations and objectives - Residual risk at October 31, 2015 = Minimal  Independence / credibility - all policies, procedures, forms, and processes aligned with the CRTC telecommunications sector - adhere to professional assurance and auditing standards - Residual risk at October 31, 2015 = Minimal

Risk Management – cont’d  Risk of increased operating costs - continue to closely manage operating costs - Residual risk at October 31, 2015 = Minimal  Length of existence of the Fund - difficult to assess as we have no control over the number of claims to come and the significance of future CRTC proceedings - Residual risk at October 31, 2015 = Medium

Upcoming Issues  Interim cost awards - will soon be implemented that will align to the extent possible with CRTC telecommunications interim cost awards guidelines - applicants must demonstrate they do not have sufficient financial resources and that they can assist the CRTC in a better understanding - applicants must indicate amount and nature of costs requested and comply with BPF Guidelines for the Assessment of Costs - application for final costs must be filed with explanation of difference between interim and final