2003 Annual Report

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Schedule C – Schedule of Disbursements to Claimants and Related Funding Requirements

The 1986-1990 Hepatitis C Fund

Auditors' Report

To the Joint Committee of the 1986-1990 Hepatitis C Fund

We have audited the 1986-1990 Hepatitis C Fund schedule of disbursements to claimants and related funding requirements for the six-month period ended September 30, 2002. This statement is the responsibility of the Administrator. Our responsibility is to express an opinion on this schedule 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 schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial presentation.

In our opinion, this schedule presents fairly, in all material respects, the disbursements to claimants and related funding requirements of the Fund for the six-month-period ended September 30, 2002.

Chartered Accountants
October 30, 2002

Schedule C - Schedule of Disbursements to Claimants and Related Funding Requirements for the Six-Month Period Ended September 30, 2002

Schedule C - Notes to the Schedule of Disbursements to Claimants and Related Funding Requirements for the Six-Month Period Ended September 30, 2002

1. DESCRIPTION OF THE FUND

The 1986-1990 Hepatitis C Fund was established as a result of the Hepatitis C January 1, 1986 -July 1, 1990 class actions settlement. Its purpose is to make payments to persons recognized as claimants under the settlement. The majority of disbursements to claimants and related funding requirements are administered by the Garden City Group Canada (the "Administrator"), a division of Crawford Canada.

2. PRIOR PERIOD ADJUSTMENT

In respect of the six-month period ended March 31, 2002, $787,868 of disbursements to claimants are to be funded by the Administrator pursuant to an agreement thereon, as disclosed in the March 31, 2002 six-month schedule of disbursements. Subsequently, a classification error of $24,468 was identified. As a result, the funding requirements for Quebec should have been higher by $24,468 and New Brunswick should have been lower by the same amount. The March 31, 2002 comparative figures in the schedule of disbursements for the six-month period ended September 30, 2002 have been restated to reflect these changes.

3. DISBURSEMENTS TO CLAIMANTS

The disbursements include payments totalling $480,000 for HIV secondary claimants. These amounts were disbursed directly by Liberty Health.

In August 2002, the Courts instructed the Administrator to release an additional payment of $5,000 plus indexation and interest thereon, to each claimant who had previously received payment( s), under section 4.01( 1)( b) of the Agreement, between June 2000 and August 2002. As at September 30, 2002 these additional payments totalled $14,685,287, of which $160,770 had not yet been disbursed due to difficulties in contacting the claimants. For reporting purposes, the entire balance of $14,685,287 has been presented as a disbursement for the six-month period ended September 30, 2002.