The provincial election had the effect of dividing the year 2003 into two distinct parts. Once the election writ was dropped in the fall, all programmes involving provincial funding were placed in abeyance. This effectively froze most development activity since these projects identified federal and provincial co-funding. The programmes most affected were the Cellular Telephone Project (CTP) and the Connect Ontario: Broadband Regional Access (COBRA) as outlined later in this report.

On a positive note, ADnet’s agreement with Southern Ontario Library Service (SOLS), (on behalf of the Ministry of Culture), was renewed to March 31, 2004. This allowed ADnet to continue providing high-speed Internet connectivity to nineteen (19) urban and rural libraries throughout the Algoma District. In addition, the contract was expanded to include 16 libraries in the North Eastern Ontario Network (NEOnet) catchment area centred on Timmins.

The Broadband Infrastructure Project, commonly referred to as the Service Access Point (SAP) project, finished the majority of the construction and implementation phases by the end of December 2003. The target date to complete all the financial and administrative requirements of the project is June 30, 2004.

ADnet’s positive reputation amongst its peers and associates remains very high. ADnet continues to work with other northern Ontario community based networks to coordinate a unified approach and response to the unique challenges faced by northerners.

The year 2003 saw a number of major achievements:

The East Algoma Community Futures Development Corporation (EA CFDC) Technical and Feasibility Study was completed under ADnet management. The final report was issued in the spring and results were briefed at community meetings in both the eastern and northern areas of the District. Information from the Study formed the basis for the development of a COBRA funding application.

Extensive discussions were held with Northern Ontario Heritage Fund Corporation (NOHFC) and Federal Economic Development Initiative for Northern Ontario (FedNor) concerning funding for the Cellular Telephone Project (CTP.) A proposal acceptable to all parties was reached just prior to the provincial freeze noted above was imposed. NOHFC staff informed ADnet the project is still considered “active” with a good chance of being approved after the freeze is lifted.
Objectives and Progress 2003

ADnet was successful in achieving the majority of its objectives for 2003.

ADnet objectives for 2003 were divided into 4 categories.

I Ongoing Activities

Manage, monitor and support the implementation of funded projects.

Details pertaining to this objective are contained in the section of the report entitled “Project Summaries”

Identify sources and secure commitment of funding to ensure continuation of Information Communications and Telecommunications (ICT) community development activities.

While ADnet continued to monitor both public and private sector funding opportunities, there were no notable new initiatives at either the provincial or federal level.

Conduct ICT information sessions in communities within the Algoma District.

With assistance from East Algoma CFDC and Superior East CFDC, sessions were conducted in Blind River, Thessalon, and Wawa in association with the LID project. The Market Development officer also conducted sessions on St. Joseph Island, in Dubreuilville, Bruce Mines, Plummer Additional Township, and North Shore. The Executive Director briefed the Superior East Mayors and Reeves Group on a regular basis on the status of the Cellular Telephone Project. This group represents the communities of Hornepayne, White River, Dubreuilville, Wawa and Chapleau. The Goulais River Local Services Board was also briefed on a regular basis.

Respond to new funding opportunities as announced by funding agencies.

As noted above, there were no new funding opportunities announced. However, ADnet took advantage of changes in the COBRA guidelines to submit an enhanced funding application to the programme to cover the costs associated with the development of the business plan.

Implement corporate communications and marketing plans.

A good start was made on this objective but it was not fully completed in 2003. It will receive a high priority in 2004. ADnet continued to receive very positive press, especially in the District and trade media such as Angus Telecommunications.

Participate in community and regional ICT activities.

ADnet continued participation in the Telematics Advisory Group (TAG), the Information Technology Cluster and in 2003 joined the Sault Ste. Marie Chamber of Commerce Technology Committee. Details about these activities can be found in the Recurring Activities section of this report.

Improve operational and administrative efficiency.

ADnet continually reviews procedures with to view to improving efficiency. The majority of financial transactions are now carried out electronically. This reduces costs, is more efficient for the staff, and produces electronic records which are easier to audit.

Monitor advances in technology and work with members and partners to ensure they are aware of potential operational impact to existing infostructure.

This is carried out on an ongoing basis. Staff subscribe to numerous trade journals and electronic newsletters to keep abreast of technology. Items of interest are forwarded to the Board of Directors and members on a regular basis.

II Community Development Objectives

Establish a personnel presence in the Superior East region, the East Algoma region and the Sault Ste. Marie (SSM) District region to assist local organizations with ICT community capacity building.

An application was made to FedNor to establish an IT Intern position in the northern region of Algoma District. It is anticipated that this position will be filled on a one year contract sometime in 2004. It will serve as a pilot for the establishment of a similar position in the eastern region.

Prepare and submit funding applications under the Federal Broadband for Rural and Northern Development (BRAND) and Connect Ontario: Broadband Regional Access (COBRA) programme.

After a more in depth analysis of the BRAND and COBRA programmes, the decision was made to concentrate on the COBRA programme as it appeared to offer the best funding opportunities for the Algoma District. A COBRA application was submitted in June 2003. As previously noted, this programme is on “hold” status as a result of the provincial election.

Assist communities with the development of solutions for local broadband distribution problems identified by the Local Infrastructure Development (LID) project.

The community requirements were rolled in to the COBRA application.

Assist communities in the development of local ICT committees.

ADnet was very successful in working with Mamaweswen - The North Shore Tribal Council. An ICT committee is now functioning and they are working on the implementation of an IT strategic plan.

Develop a community mentoring programme.

Using the work done with Mamaweswen - The North Shore Tribal Council as a guide, ADnet is developing a workbook for this programme.

III Organizational Objectives

Develop an annual business plan and a five year forecast.

A preliminary plan was developed and reviewed by Board. The staff will re-work the plan to include the comments and recommendations made by the Board. A new plan will be published in 2004.

Update the ADnet membership package documentation for use in marketing, membership drives, and advertising.

The documents were reviewed and updated. Another complete rewrite will be done as the communications and marketing plans are updated.

Monitor and respond to opportunities to develop formal partnerships or joint ventures with likeminded organizations while avoiding duplication of effort.

The ADnet/NEOnet libraries project was extended for another year to March 2005. Informal discussions continue with other potential partners.

IV Continuous Improvement Objectives

Conduct Board of Director (BoD) development activities to improve Board effectiveness.

A successful session was held in June 2003. The theme of the session was board membership, qualifications and procedures.

Conduct staff development activities and attendance at conferences.

The Executive Director attended the provincial Broadband Conference in Hamilton, ON in November, 16 -18, 2003.

Review and update policy documents as required.

All policy documents were reviewed and updated.

Project Summaries

Broadband Infrastructure Project

The scope of the Broadband Infrastructure Project is to provide broadband access points in 26 communities throughout the Algoma District.

All sites were installed and operational by December 2003, with the exception of Goulais River, Garden River First Nation and Desbarats. These are scheduled for completion in the spring of 2004.

The target date for the completion of all matters pertaining to the NOHFC contract for this project is June 30, 2004.

Cellular Telephone Project

The scope of the Cellular Telephone Project is to provide cellular telephone service to unserviced and underserved areas of the Algoma District.

Numerous meetings were held with FedNor and NOHFC staff over the period march to June 2003. The purpose of these meetings was to fine tune the funding application to meet specific agency requirements. The final, agreed to submission was forwarded at the end of June.

Unfortunately, no approval was received before the announcement of the provincial election. This placed the project on a hold status pending the election outcome.

After the election, NOHFC staff advised ADnet that the project was still considered “active” but they could offer no forecast of when the a response might be received as the new government was conducting a policy review.

We are looking forward to project approval sometime in 2004.

Local Infrastructure Development Project

The scope of the East Algoma CFDC sponsored Local Infrastructure Development (LID) Project was to carry out a technical and feasibly study to address the local loop status and requirements to distribute broadband services in Algoma District communities.

The final reports were issued in February 2003. ADnet conducted community information sessions in February and March 2003. A number of briefings were also provided to community councils on a one-on-one basis upon request.

The LID report formed the basis for the development of the ADnet COBRA submission.

Connect Ontario: Broadband Regional Access

Connect Ontario: Broadband Regional Access (COBRA) is a provincial programme to provide broadband access to under serviced and rural Ontario communities.

ADnet’s application by means of a Letter of Intent to participate in the programme was approved by the Ministry of Economic Development and Trade (MEDT) in July 2003.

A request for Business Plan funding was submitted in the fall but like the Cellular Telephone Project got caught up in the provincial election. The funding application identifies all the communities covered by the broadband infrastructure project as being part of the submission. However, as private sector broadband becomes available in communities, they will be dropped from the COBRA submission.

Libraries Project

The scope of the Libraries Project is to provide high-speed connectivity and Internet access to libraries in the ADnet and NEOnet catchment areas. The Libraries Project is sponsored and funded by the Southern Ontario Library Service (SOLS) on behalf of the provincial Ministry of Culture.

A total of 19 libraries in the ADnet area and 16 libraries in the NEOnet area are covered by this project.

Monthly funding for this project was extended to March 2004 and will likely be extended to March 2005.

ADnet was reimbursed for all expenses associated with the management of the projects.

Recurring Activities

ADnet participated in a number of recurring activates throughout the year.

Telematic Advisory Group

The purpose of the TAG is to act as a venue for all persons with an interest in Information Technology to meet, network and exchange knowledge and ideas. There are no membership fees or obligations.

The Telematics Advisory Group (TAG) is an outgrowth the ICT Committee. The ICT Committee provides administrative support but the meeting agendas and content are managed by the TAG participants. The ICT Committee membership consists of ADnet, the SSM Innovation Centre (SSM IC) and the SSM Economic Development Corporation (SSM EDC.) The Board of Director (BoD) approved ADnet’s membership in the ICT Committee in 2001.

TAG meeting are held on a monthly basis, usually the last Friday, with attendance varying from 10 to 25 depending on the subject matter. Seven local organizations gave presentations to the TAG and one organization sponsored a site visit and tour.

Information Technology Cluster

The Information Technology (IT) Cluster is sponsored by the local office of the National Research Council's Industrial Research Assistance Program (IRAP) headed by Ernie Black. The group was formerly known as the Internet Service Provider (ISP) Cluster. They have breakfast meetings on the third or fourth Thursday of the month.

In addition to ADnet and SSM IC, representatives from the web design firms and service providers attend on a regular basis with the occasional out-of-town visitors as guests.

CANNDO

The annual meeting of the Committee of the Association of Networks in the Northern Districts of Ontario (CANNDO) was held in North Bay in October. Representatives from all five northern Community Based Networks (CBN) attended as well as representatives from FedNor, Ministry of Northern Development and Mines (MNDM) and the Regional Networks for Ontario (RNO).

CANNDO continues to function as an excellent forum for the free exchange of ideas, strategies and operational concepts pertaining to the development of a pan-northern approach to solving issues surrounding the digital divide.

Sault Ste. Marie Chamber of Commerce Technology Committee

The SSM CoC Technology Committee meets monthly. Its mandate is to keep abreast of developments in Information Technology and inform the CoC membership of technology which may be of benefit to their enterprises.

Board of Director Activities

The Board of Directors (BoD) maintained the meeting scheduled adopted in 2002.

September - Project Review

November - Panning Session Review

January - Annual Plan Review

March - Financial Review and AGM Preparation

May - Inaugural Board Meeting and Election of Officers

July/August - At the call of the President as necessary

The following special BoD activities were also scheduled in lieu of regular BoD meetings:

April – Annual General Meeting

June – BoD Development Session

Both the Technical and Infrastructure Committee (TIC) and the Finance and Administration Committee (FAC) were active during 2003. The TIC held regular bimonthly meetings while the FAC met monthly.

The BoD started the year with vacancy due to the resignation of Michael Corbett on his departure from the Algoma District. His vacancy was filled by Pav Pokkettat from the Algoma District School Board.

The BoD recruited Gary Wight, Great Lakes Power, to be Secretary-Treasurer. In accordance with the Corporations Act and By-law 1, it is not necessary for the Secretary- Treasurer to be a member of the BoD.

ADnet Objectives for 2004

ADnet enters 2004 with a number of challenges. By achieving the objectives set by the BoD, ADnet will continue to grow and flourish while enhancing the quality of life for the residents of northern Ontario.

Annual objectives are derived from the ADnet goals and are related to one or more of the ADnet goals. The ADnet objectives for the year are divided into two categories:

Ø Standing Objectives; and

Ø Year Objectives

Standing Objectives are those which by their nature are carried out annually and are basic to the overall functionality of the organization. They do not have a readily identifiable achievement date.

Year Objectives are those which will be completed during the year and support the achievement of one or more of the ADnet goals.

Standing Objectives:

1. Manage, monitor and support the implementation of funded projects.

2. Identify sources and secure commitment of funding to ensure continuation of Information Communications and Telecommunications (ICT) community development activities; submit funding applications as appropriate.

3. Maintain and update 5 year Business Plan

4. Conduct ICT information sessions in communities within the Algoma District; develop, sponsor and present seminars to raise awareness of ICT applications

5. Implement corporate communications and marketing plans.

6. Participate in community and regional ICT activities.

7. Improve operational and administrative efficiency.

8. Monitor advances in technology and work with members and partners to ensure they are aware of potential operational impact to existing infostructure.

9. Conduct the ADnet Annual General Meeting (AGM)

Year Objectives:

1. Conduct a regional visioning session in each of the three the Algoma District regions: - Algoma North; Algoma Central; and Algoma East.

2. Prepare and publish a five year ADnet business plan.

3. Establish an ADnet staff presence in the Algoma North and Algoma East regions.

4. Raise the public awareness of ADnet by means of an effective Communication Plan.

5. Reconvene the ACE Group.

6. Review government ICT mandates.

7. Finalize ongoing projects that have a 2004 completion date.

8. Conduct membership satisfaction survey.

9. Train staff in Community Economic development processes.

10. Update BoD member orientation package.

Audit Report

And

Financial Statements

ALGOMA DISTRICT

COMMUNITY NETWORK

Year ended December 31, 2003

(Not Included in this Version)