MASTERS SWIMMING CANADA

Note that these financial statements were delivered to MSC on the letterhead of Thornton McCain, Chartered Accountants and were signed.

AUDITOR'S REPORT

To the Directors of Masters Swimming Canada/Maîtres Nageurs Du Canada

We have audited the statement of financial position of Masters Swimming Canada/Maîtres Nageurs Du Canada as at December 31, 2002 and the statement of operations for the year then ended. These financial statements are the responsibility of the organization's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian 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 the organization as at December 31, 2002 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles.

April 14, 2003

Fredericton, NB

CHARTERED ACCOUNTANTS

STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2002

                                 ASSETS
    	 	   
                                                    2002       2001  
Current Assets
    Cash and short-term investments              $ 57,031   $ 26,989
    Accounts receivable                                -       3,020
                                                   ______    _______

                                                 $ 57,031   $ 30,009
                                                  =======    =======

                              LIABILITIES

Current Liabilities
    Accounts payable                             $    856   $    749

                                SURPLUS

Accumulated Surplus                                56,175     29,260
                                                  _______    _______

                                                 $ 57,031   $ 30,009
                                                  =======    =======


Approved by the Board


__________________________________________                                                
                                  Director


__________________________________________                                                
                                  Director

STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2002

                                       2002             2001	
Revenue
   Membership fees                 $  73,080        $  69,250
   Advertising revenue                   430            2,650
   Other income                          541              918
                                     _______          _______

                                      74,051           72,818
                                     _______          _______
	
Expenses
   Meeting costs                       9,647            7,976
   National office                     5,944            7,314
   Board and executive telephone       1,405            2,325
   MSC News                            8,176           37,656
   WWW site                            1,214            1,214
   Committee costs                     4,170            1,404
   SNC fees                           13,852           11,470
   Legal and audit                     2,714            1,227
   Insurance                              -             1,089
   Other expenses                         14               -   

                                      47,136           71,675
                                     _______          _______

Surplus For The Year                  26,915            1,143

Surplus, Beginning Of Year            29,260           28,117
                                     _______          _______

Surplus, End Of Year               $  56,175        $  29,260
                                     =======          =======

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2002

1. Organization

Masters Swimming Canada/Maîtres Nageurs Du Canada was incorporated under the Canada Corporations Act, Part II, on October 26, 1993 for the purpose of fostering masters swimming in Canada. The incorporated entity continues activities formerly carried on by other bodies. These predecessor bodies contributed capital to the organization upon its founding in the amount of $31,987. The organization is exempt from tax under the Income Tax Act.

2. Summary Of Significant Accounting Policies

Capital Assets

Capital assets are expensed as purchased. The principal capital assets acquired by the organization are office equipment and computer software. During the year ended December 31, 2002, nothing was expensed under this policy (2001- nil).