Saskatchewan Health Regional Health Services
Policy & Procedure Manual
Approved By:
Section:
Regional Accountability Branch
Finance
Title:
RHA ANNUAL FINANCIAL REPORTING
Status:
Effective Date:
Page:
Branch Contact:
Current
March 2007
1 of 1
787-7291
INTENT:
The intent of this policy is to provide guidance to regional health authorities regarding the
submission of audited financial statements, management information, and other year-end reporting
requirements that are part of the accountability mechanism.
LEGISLATIVE AUTHORITY:
The Regional Health Services Act, Section 55
RELATED GUIDELINES (Links):
None
POLICY:
In accordance with Section 55 of The Regional Health Services Act, regional health authorities
will, each fiscal year, submit a financial statement showing the business of the regional health
authority. The financial statement will include the information contained in the RHA Financial
Reporting Guide.
RHA Financial Reporting Guide 2006-07
Saskatchewan
Health
2006-07
Financial Reporting Guide
For the Regional Health Authorities
January 2007
Regional Accountability Branch
Last Updated: 01/25/07
Table of Contents
CHANGES TO THE 2006-07 FINANCIAL REPORTING GUIDE.............................................1
INTRODUCTION..................................................................................................................................2
AUDITING REQUIREMENTS ..........................................................................................................2
ANNUAL FINANCIAL STATEMENTS...........................................................................................3
a. Accounting Principles .....................................................................................................................3
b. Reliance on the Work of Other Auditors .......................................................................................5
c. Financial Statement Approval Requirements ................................................................................6
AUDIT REPORTS.................................................................................................................................7
OTHER REPORTING REQUIREMENTS ......................................................................................7
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Legislative Requirements............................................................................................................7
Health Care Organization Audited Financial Statements..........................................................7
Annual Reports ............................................................................................................................8
Federal Cost Sharing Claims.......................................................................................................8
Department of Finance Summary Financial Statement Consolidation Schedules ...................9
CMDB Flat File Facilities/Services (Formerly AHS Survey) .........................................................9
SHC Statements...........................................................................................................................9
General Revenue Fund Reconciliation.......................................................................................9
Energy Conservation in Saskatchewan’s Health Care Facilities.............................................10
Reconciliation of Salaries..........................................................................................................10
ROLE OF PROVINCIAL AUDITOR..............................................................................................10
APPENDICES ......................................................................................................................................11
Appendix 1: Audit Planning Schedule..............................................................................................12
Appendix 2: Financial Reporting of Health Care Organizations.....................................................14
Appendix 3: Restricted Fund Accounting.........................................................................................19
Appendix 4: Regional Health Authority Financial Statements........................................................22
i) Statements ..................................................................................................................................25
ii) Notes ..........................................................................................................................................28
iii) Schedules ..................................................................................................................................46
Appendix 5: Reports to Submit to Saskatchewan Health ................................................................51
Appendix 6: Audit Reports................................................................................................................53
Appendix 7: SHC Reporting Requirements .....................................................................................56
Appendix 8: Related Party Listing ....................................................................................................66
Financial Reporting Guide 2006-07
Saskatchewan Health
CHANGES TO THE 2006-07 FINANCIAL REPORTING GUIDE
The Financial Reporting Guide includes important information about the reporting requirements for
2006-07 and reflects the Regional Health Services Act. The following information indicates the
significant changes to the Financial Reporting Guide.
General Updates
The due date for the final audited financial statements is May 18th.
Statements, Schedules & Notes – Changed format to show values NOT in ‘thousands of
dollars’. Refer to statements, schedules & notes in this guide. Templates are available. RHAs
may submit statements in ‘dollars’ or ‘thousands’ – which ever is more conducive to the RHAs
portrayal of results.
- This symbol means there is new or additional information in the corresponding paragraph
or section.
- This symbol highlights important information or dates to remember.
Specific Changes
1. Schedule 5 (Page 6 & 50) – Senior Mgmt Schedule: # of FTE’s are no longer required
because individuals are named. Refer to updated wording for Salary & Benefits.
2. Salary Reconciliation (Page 10) Other Reporting Requirements item j. – reconciliation of the
Schedule 5 reported amount for CEO and Senior Management is to be completed by May 18th.
A template will be provided, this is not part of the audited financial statement package.
3.Financial Reporting of HCOs (Page 15 ) – added text to state if any consideration is given to
change the accounting treatment for an affiliate or HCO based on control the Department and
Provincial Comptroller’s Office must be notified.
4. Note 1 (Page 28) – changed to wording to remove text about districts that no longer applies
and add text regarding RHAs tax exemptions.
5. Note 2e (Page 31) – added the words ‘recorded as’ deferred ‘revenue’.
6. Note 4 (Page 33) – additional information is required to report capital lease amounts.
7. Note 5 (Page 34) – added a bullet in the reference section to highlight that mortgages are not
held by SHC (they are only administered and subsidized by SHC), therefore the Title of Issue
should show CMHC instead of SHC.
8. Note 6 (Page 35) - Removed sentence ‘Restricted funding related to general operations….’
This is already covered in Note 2(e) and is therefore not required.
9. Schedule 5 (Page 50) – there is a new detailed format for Board Remuneration.
10. Related Party Listing (Page 67) – new parties are added to the list and are highlighted in
Appendix 8.
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Introduction
This intention of this guide is to assist regional health authorities in meeting their accountability
requirements. The Regional Health Services Act (the Act) holds Regional Health Authorities
(RHAs) accountable to residents of the health region and to the Minister of Health for the effective
and affordable delivery of health services. The Act sets out various accountability mechanisms
including annual reports and independent audits. This document is primarily concerned with the
Audited Financial Statements, management information, and other year-end reporting requirements
that are part of this accountability mechanism.
Auditing Requirements
Audited reports required by the Minister include:
1. Audited financial statements (the Act, s.55-57).
Audited financial statements and summary financial statement consolidation schedules
are due May 1, 2007 to the Departments of Health and Finance. If audited financial
statements are not available by this date, provide draft financial statements that are
substantially complete (i.e. no significant changes required to audit figures).
Submit audited financial statements when available, no later than May 18, 2007.
On May 18, 2007, if audited financial statements have not been supplied, provide written
confirmation to the Departments of Health and Finance that the financial statements have
not changed significantly from the draft statements, which you provided on May 1, 2007.
Conversely, if significant changes have occurred, provide these updated financial statements
to the Departments of Health and Finance with confirmation that no further changes are
anticipated. Please note that delays in finalizing audited financial statements also affect the
timing of the annual report (which must be approved by the Board of Directors and tabled in
legislature). Notify the person responsible for the RHA’s annual report of any delays
and inform them of changes affecting the financial results in the annual report.
Section 55 of the Act indicates the RHAs financial statement must contain audited
information of all Health Care Organizations (HCOs) with which it has an agreement
pursuant to Section 34. The Department of Health requires disclosure as set out in Appendix
4, Note 9 on related parties (if the current year audited financial statements are not available
then RHAs should use the prior year audited financial information and note disclose any
significant activity occurring in the 2006-07 fiscal year).
2. Audit report on the financial control systems (internal control opinion) by June 29, 2007.
3. Audit reports on compliance with legislative and related authorities (legislative compliance
opinion) by June 29, 2007.
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These reports are useful for the RHA to explain its financial performance to the Minister and local
residents. These reports can also assist the RHA to hold its management accountable.
The Provincial Auditor's Office is involved in the audits of all the RHAs. They plan to attend auditplanning meetings with the RHA Chief Financial Officer and the RHA appointed auditor. The
purpose of these meetings will be to discuss the audit plan, timelines, and processes for each RHA
audit.
Annual Financial Statements
RHAs should prepare their annual financial statements using the accounting principles that apply to
not-for-profit organizations set out in the Canadian Institute of Chartered Accountants (CICA)
handbook, sections 4400 to 4460, as well as, generally accepted accounting principles, and The
Non-profit Corporations Act.
a. Accounting Principles
The following accounting principles, recommended by the CICA handbook, have the most
significant effect on a RHA.
i) Contribution (Revenue) Recognition1
The RHAs are to use the restricted fund method of revenue recognition.
Unrestricted contributions received in the fiscal year are reported as revenue in the operating
fund.
Accounting for restricted contributions depends on the existence of a corresponding restricted
fund:
•
If a restricted fund exists for the restricted contribution, the contribution is included as
revenue in the year received, whether the funds are spent or not. As in previous years, it
is recommended the RHAs limit the number of restricted funds presented in the financial
statements to two: the capital fund and if applicable a community generated/preamalgamation fund.
•
If no corresponding restricted fund exists, and the funds are spent during the year, the
restricted contribution is included in the operating fund as revenue.
•
If no corresponding restricted fund exists, and the funds are not spent during the year,
the restricted contribution is included in the operating fund as deferred revenue.
A change in the Contribution Recognition Accounting Policy is treated as a change in
accounting policy in accordance with ACCOUNTING CHANGES in section 1506 of the
1
Contribution recognition when using restricted fund accounting is described in section 4410 of the CICA Handbook.
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CICA handbook. Therefore, if the Contribution Recognition Accounting Policy changes from
the previous year, retroactive restatements of the previous year’s figures are required.
ii) Interfund Transfers
Transfers between funds or reserves during the year are neither revenue nor expense of either
fund. Instead, interfund transfers are to be included only in the Statement of Changes in Fund
Balances (below the surplus/deficit line of the Statement of Operations and Statement of Fund
Balances).
Transfers from a fund may only occur if there is a positive fund balance. The transfers
from the operating fund may only be to the amount that brings the fund balance to zero. The
exception may be a transfer from the operating fund to the SHC reserve, which may be
required to bring the reserve balance to the prescribed minimum level (Appendix 7). Discuss
such exceptions with the PFC Analyst before submitting the statements for format approval.
The RHA must receive prior approval from the Department of Health for any interfund
transfers that bring the fund balance to a negative.
iii) Related Parties
The Saskatoon and Sunrise RHAs currently have joint service management agreements with
some of their affiliates and respectively consolidate and combine the affiliate financial results
in their financial statements. The consolidated and combined financial statements recognize
that even though the reporting organization (the RHA) and its related affiliate may be separate
legal entities, together they constitute a single economic unit (by a joint service management
agreement). Such financial statements show readers (e.g. the Minister and the local residents)
the financial resources and operations of the RHA and the particular affiliates together.
The Saskatoon and Sunrise RHAs consolidate and combine the financial results of the
affiliates with a joint service management agreement and disclose information according to
Appendix 4, Note 9. All other RHAs will provide note disclosure for the applicable HCOs and
fund raising foundations financial information. The RHAs are encouraged to provide the
Financial Reporting Guide to HCOs to use as guidance in preparation of their financial
statements.
Health Care Organizations Defined
The following definitions will assist the RHAs in preparing for consolidation and disclosure in
Note 9. The Regional Health Services Act, Section 2 provides definitions for the terms HCO
and affiliate. As you will see below, the term HCO is all encompassing and used consistently
throughout this document to describe all HCOs to which an RHA provides grant funding.
Health Care Organization – as defined in The Act, Section 2(1) (h), is (i) an affiliate; or (ii) a
prescribed person that receives funding from a regional health authority to provide health
services.
Affiliate – as defined in The Act, Section 2(1) (a) means a person who, immediately before the
coming into force of this section, is the operator of a hospital approved pursuant to The
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Hospital Standards Act or a not-for-profit special-care home licensed pursuant to The Housing
and Special-care Homes Act, and includes any successor to that operator but does not include
a regional health authority or a prescribed person.
The following terms are used in Appendix 4, Note 9 b) and distinguish between the types of
HCOs and the disclosure of grant funding:
Prescribed Health Care Organizations (The Regional Health Services Administration
Regulations – Tables 1 and 2) – funding that is provided to prescribed HCOs (formerly called
Community Based Organizations or CBO) on a regular basis for health service delivery and
on behalf of the reporting organization (RHA). The name and total annual grant amount of
each HCO is disclosed separately in Appendix 4, Note 9 b) i).
Third Party Organizations – a third party organization receives either regular, intermittent,
or one time grant funding. The name and total annual grant amount of each third party is
disclosed separately in Appendix 4, Note 9 b) i). A third party includes organizations such as
an ambulance service or Extendicare.
Joint Service Management Agreement - an agreement between the RHA and affiliate,
which gives the RHA the right to manage certain aspects of the affiliate’s operations. The
RHA provides grant funding to the affiliate and consolidates or combines the affiliate
financial information with that of the RHA. This relates directly to the Saskatoon RHA and
Sunrise RHA. This type of agreement is disclosed as per Appendix 4, Note 2 and Note 9 b) ii).
Affiliate – an agreement between the RHA and affiliate (as defined in The Act) in which the
RHA provides funding in exchange for the delivery of health care services normally provided
by the RHA. Disclosure is according to Appendix 4, Note 9 b) iii).
Fund Raising Foundations – organizations with the primary purpose of providing assets or
funding for assets to the RHA.
Additionally, Appendix 2 provides guidance in assessing the relationship between the RHA,
HCO, and a fundraising foundation in regards to significant influence and economic interest.
b. Reliance on the Work of Other Auditors
The Office of the Provincial Auditor (OPA) is providing the RHA’s appointed auditor with
guidelines to consider for including affiliate financial information in the RHA’s financial
statements, as in Appendix 4, Note 9. The OPA’s guidelines address the issue of reliance on the
work of another auditor.
The OPA’s guidelines follow CICA Handbook section 6930 and recommend that where the
expenses of the affiliate are material but less than five times the materiality of the RHA, the
auditor will communicate with the affiliate’s auditor and get a letter of representation from
them. In addition, if the affiliate’s expenses are more than five times the materiality of the
RHA, the RHA auditor will need to review the other auditor’s files.
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c. Financial Statement Approval Requirements
Financial statements are to be prepared on a restricted fund accounting basis 1 . The PFC analyst
must approve any anticipated changes to the final version of the statements.
The Statement of Financial Position (Appendix 4, Statement 1) contains a column for each fund
(Operating, Capital and Pre-Amalgamated/Community Generated Trust). All the funds are
totalled and compared to last year's total. This presentation is consistent with the CICA's
example financial statements and provides a self-balancing set of statements. Eliminate all due
to/from balances between funds on the Statement of Financial Position before submitting for
format approval, discuss exceptional circumstances with the MA analyst.
The Statement of Operations and Changes in Fund Balances (Appendix 4, Statement 2)
individually presents the operating and restricted fund balances. The Statement contains budget
(operating only), current year actuals and prior year actuals in columns for comparison of these
funds. Revenues and expenses are summarized by program according to the Provincial Chart of
Accounts coding. The RHA Board approves the operating budget plan. The Accountability
Document, issued by the Department of Health to each RHA, reflects the RHA 2006-07 Budget
Plan.
The Statement of Cash Flow (Appendix 4, Statement 3) shows a column for each fund. A prior
year comparison column exists for the operating fund and for the total restricted funds. This
statement is prepared using the indirect method.
The Expenses by Object (Appendix 4, Schedule 1) uses the Provincial Chart of Accounts coding
format modeled in the 2006-07 quarterly financial report.
The schedule of Board Member Remuneration requires further details according to changes in
the Regional Health Services Administration Regulation 9.1(4). The schedule for Senior
Management Salaries, Benefits and Allowances in Appendix 4, Schedule 5 consists of board
members names, senior employee names and position titles, salaries, benefits & allowances, and
severances. The senior management salary information does not include accruals for the
fiscal year end and is based on the following:
•
Salaries include - Salaries include regular base pay, overtime, honoraria, sick leave,
vacation leave and merit or performance pay, lump sum payments, and any other direct
cash remuneration.
•
Benefits and Allowances include - the employers share of employee benefits and
allowances. This includes car allowance, education and training, professional
membership fees, other fees, and relocations costs. This does NOT include: travel
expense, pension, healthcare, dental and vision, group life insurance, Canada Pension
Plan, employment insurance, workers compensation, and long-term disability plans.
Note Appendix 4, Schedule 5 endnotes correspond with the above calculations.
1
Restricted fund accounting is described briefly in Appendix 3 and fully in section 4410 of the CICA Handbook.
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Segregate the replacement reserves; pursuant to CMHC mortgage agreements, on the balance
sheet as internally restricted assets in the Capital Fund. Appendix 4, Schedule 4 provides
individual balances and any commitments against those funds. Schedule 4 segregates amounts for
SHC replacement reserves as well as capital and operating reserves (if applicable), see
Schedule 4 in Appendix 4 for further details.
Audit Reports
Samples of audit reports addressed to the RHA are included in Appendix 6. The submission dates of
these reports to the Department of Health are included in Appendix 5.
These audit reports give assurance to the Minister, the residents of each health region, and the
regional health authority that:
•
the financial statements prepared by management present fairly the financial position and
results of operations of the regional health authority;
•
the internal control policies and procedures put in place by management are adequate to
safeguard and control the assets of the regional health authority; and
•
management has complied with legislative and related authorities including service
agreements with the Minister.
Other Reporting Requirements
a. Legislative Requirements
The Act allows for additional reporting requirements with an end, from the RHA, to increase the
RHAs accountability regarding services provided and activities undertaken to improve the
health status of its residents.
b. Health Care Organization Audited Financial Statements
The Department requires the RHA to submit a copy of the audited financial statements for
each related HCO to the Department of Health by June 8, 2007 (Appendix 5). Letters of
Internal Control and Legislative Compliance are required only for Affiliates. In the case of
Extendicare organizations, the department requires audited financial information of revenues
and expenses. In the past, Extendicare’s auditor has submitted audited schedules. Each RHA is
responsible for collecting these reports and submitting them to the PFC Analyst, as they are
available.
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c. Annual Reports
The Act requires the RHAs annual report to be tabled in accordance with The Tabling of
Documents Act within 120 days of the fiscal year end. In accordance with this legislation, a draft
of the report must be presented to the Minister 30 days before the tabling date. The draft Annual
Report must be submitted in hardcopy by June 15, 2007. The Annual Report includes: audited
financial statements; a Management Report; a section called ‘Financial Summary’; the
Payee Disclosure List; and financial performance indicators. The Department of Health
reviews the annual report then presents it to the Minister for approval. The final Annual Report
must: be signed by the Chairperson (in the Letter of Transmittal); include the signed external
‘Auditor’s Report’; be submitted in final form by July 16, 2007 (for compilation of the Tabling
Document).
The Management Report in the annual report (CICA Accounting Guideline 7 (AcG-7)) gives
direction for management to report on its responsibility for financial statements and other
financial information as per paragraph 2 of AcG-7. This report accompanies the audited
financial statements in the annual report and must be signed by the CFO and CEO. An example
of the management report is included in the Annual Report Guidelines, and AcG-7 should be
reviewed before writing the management report.
The RHA Annual Report Guidelines provide direction for preparing a Financial Summary
within the content of the Annual Report. Collaboration with the RHA’s communications
department (or person responsible for the annual report) is encouraged to support the reporting
and interpretation of financial information. The annual report guide also provides direction
for preparing the Payee Disclosure List and includes a Performance Management Summary,
which reports financial indicator results.
d. Federal Cost Sharing Claims
From time to time, the Department participates in Federal Cost Sharing Programs. In order for
the Department to prepare federal cost sharing claims, we require RHAs that participate in these
programs to provide information in a timely manner to facilitate the claims. This may include a
completed summary of expenditures and salary details or audited financial statements if the
entity operates independently from the RHA.
Some of the programs that will require information include regionally delivered alcohol and
drug training and rehabilitation programs, mental health services, and primary health services.
RHAs will be contacted specifically regarding their reporting requirements. The Financial
Analyst (Rhonda Ross @ 787-3106) from Saskatchewan Health’s Finance and Administration
Branch will inform you of the programs you will be required to report on for 2006-07. The
reporting dates on these programs vary and you will be informed of the due date, which
generally fall within 20 to 60 days after year-end.
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e. Department of Finance Summary Financial Statement Consolidation Schedules
The Department of Finance requires the submission of the Summary Financial Statement
Consolidation Schedules to be completed by May 1, 2007. These schedules are in Excel
worksheets and will be distributed separately by the Department of Finance to each RHA for
completion by the due date.
f. CMDB Flat File Facilities/Services (Formerly AHS Survey)
The Canadian Institute for Health Information (CIHI) requires all hospitals in Canada to
complete the CMDB Flat File. The information collected in the CMDB Flat File is used to
calculate national accounts and allows for the inter-provincial comparisons of hospital financial
and statistical data.
Saskatchewan Health requires an electronic copy of the 2006-07 CMDB Flat File to be
submitted to the Department by September 14, 2007, the Department will forward the CMDB
Flat File to CIHI.
g. SHC Statements
All health corporations operating facilities, in which Canada Mortgage and Housing
Corporation (CMHC) and Saskatchewan Housing Corporation (SHC) (an agency of the
Department of Community Resources and Employment) have an interest, are required to submit:
a copy of the Audited Financial Statements, which will be submitted by Health on
behalf of the RHA, directly to SHC; and
Schedules of Revenue and Expense for each facility (as outlined in Appendix 7) to
Saskatchewan Health, Regional Accountability Branch, Planning & Financial
Compliance Analyst (Cara Smith) by September 3, 2007. The Department will forward
the schedules to SHC.
This information is required to meet the terms and conditions of the operating agreements. SHC
provides all the administrative services relating to CMHC mortgages. These reporting
requirements are outlined in a letter dated December 14, 1994 along with updated reporting
requirements and a new list of contacts in Appendix 7.
h. General Revenue Fund Reconciliation
RHAs are required to provide a reconciliation of the Saskatchewan Health General Revenue
Fund (from the Statement of Operations and Changes in Fund Balances, Appendix 4, Statement
1) to the Revenue Confirmation (provided by Saskatchewan Health) for the 2006-07 fiscal
year. The template for the reconciliation will be provided separately, please submit the
reconciliation to Monitoring & Analysis Analysts by May 1, 2007.
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i. Energy Conservation in Saskatchewan’s Health Care Facilities
Regional Health Authorities are encouraged to pursue opportunities for energy efficiency and
savings within existing Saskatchewan Health Care facilities (RHA-owned and affiliate-owned).
The costs to implement the energy savings measures are paid for through future energy savings.
The Department will provide guidance when energy contracts are received. At that time,
RHAs will be made aware of the recommended accounting treatment of Energy Performance
Contracts (EPC). The RHA should discuss this with their appointed auditor.
j. Reconciliation of Salaries
A reconciliation of CEO & Senior Management Salaries is required, this reconciliation is not
part of the audited financial statements. The template for the reconciliation will be provided
separately, please submit the reconciliation to Cara Smith in the Regional Accountability
Branch, Saskatchewan Health by May 18, 2007.
Role of Provincial Auditor
Each RHA is required to appoint an auditor under section 57 of The Act. The Provincial Auditor
intends to fulfill his responsibilities as the Legislative Assembly's auditor by being involved in
RHAs’ audits and relying on the work and reports of the RHAs’ appointed auditors. In general
terms, this will include participation of senior staff of the Provincial Audit Office in audit planning,
resolving key issues, and agreeing on auditor's reports.
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APPENDICIES
APPENDICES
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APPENDIX 1
Appendix 1: Audit Planning Schedule
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APPENDIX 1
AUDIT PLANNING SCHEDULE
Financial Statement Approval 1
1
Appointed Auditor provides audit planning to Provincial Auditor for review
2
3
Provincial Auditor provides comments/written agreement on audit planning
The Provincial Auditor meets with RHA Board and Audit Committee
4
RHA submits unaudited financial statements to Health (for initial format review),
Appointed Auditor, and to the Provincial Auditor (Due to Health by May 1, 2007)
RHA submits Summary Financial Statement consolidation schedules to Provincial
Comptroller and to the Provincial Auditor (Due by May 1, 2007)
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Health provides initial comments on the format of the unaudited financial statements
Planned
Completion Date
Upon request
May 1, 2007
To be determined by
Health (based on #4)
RHA submits final draft audited financial statements including the auditor’s report to
Health for format approval
Appointed Auditor provides final draft audited financial statements and audit working
papers to Provincial Auditor
Health provides written final format approval
To be determined by
Health (based on #8)
Provincial Auditor provides comments/written agreement on draft audited financial
statements (after Health’s format approval)
Board of Regional Health Authority approves final statements2
Appointed Auditor signs off on the financial statements and issues statements to the RHA
(after Health’s format approval and Provincial Auditor’s review)
RHA submits audited financial statements and auditor’s report to Saskatchewan Health and
Provincial Auditor
Approval of other Audit Reports 3
Appointed Auditor, submits draft audit reports to the Provincial Auditor for the RHA,
affiliates and prescribed health care organizations
Provincial Auditor provides written agreement to Appointed Auditor on draft audit reports
Appointed Auditor issues the audit reports to the Authority
Appointed Auditor submits signed reports to Health and Provincial Auditor (due by June
29, 2007)
Provincial Auditor prepares a memorandum of audit observation for discussion with
Appointed Auditor and Management
Provincial Auditor submits the chapter to the RHA and Health
September 30,
2007
1
Saskatchewan Finance requires audited financial statements by May 1, 2007 for Summary Financial Statement purposes.
Board approval could be received prior to the appointed auditor signing the auditor’s report, this is left to the discretion of the Board and
management.
3
Internal control opinion (ICO), legislative compliance opinion (LCO) and certain specific matters to be reported to the Provincial Auditor.
2
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APPENDIX 2
Appendix 2: Financial Reporting of Health Care Organizations
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APPENDIX 2
FINANCIAL REPORTING OF HEALTH CARE ORGANIZATIONS
The CICA Handbook section 4450 deals with the reporting of control, significant influence, and
economic interest for other related entities in financial statements of a not-for-profit organization
such as a RHA. The following discussion includes the Departments position that RHAs have
significant economic interest or significant influence over affiliates and economic interest in fundraising foundations.
If the RHA is considering a change to accounting treatment for an affiliate or HCO based on
control, the Department and the Provincial Comptroller must be notified.
The Department requires financial reporting beyond what is recommended in the CICA Handbook
for significant influence. Section 55 (1) (b) in the Act says, “a financial statement showing the
business of the regional health authority for the preceding fiscal year in any form that may be
required by the minister”. The 2006-07 financial statements will give users a better understanding of
the total cost of all health care services in the Health Region and ultimately in the Province of
Saskatchewan.
Affiliates
RHA’s are required, per section 34 of the Act, to enter into funding agreements with HCOs. This
section of the Act was proclaimed in June 2004. Joint service management agreements and
affiliation agreements currently exist. Such agreements, depending on their terms and conditions,
may result in a RHA having significant economic interest or significant influence over an affiliate
for financial reporting purposes. Section 38 of the Act gives the RHA the ability to affect the
strategic, operating, investing, and financing activities of the affiliate. An example of the required
disclosures for affiliates are shown in Appendix 4, notes 2 and 9 b) ii) and iii).
Other Health Care Organizations
A RHA may have an economic interest in another organization. For example, the RHA may
contract with a not-for-profit organization for a specific set of services but does not through law or a
contract have the ability to determine the strategic operating, investing and financing activities of
the other organization. The Department requires disclosure in accordance with the CICA Handbook
section 4450.45 for organizations with whom the RHA has an economic interest. Further, the
Department requires disclosure of the grant funding to each organization. An example of the
required disclosures for community based organizations and third parties is shown in Appendix 4,
Notes 2 and 9 b) i).
Foundations
A RHA may have one or more Foundations raising money for it. By the very nature of the fund
raising activities, the RHA will have at least an economic interest in the Foundation. If a Foundation
is only able to raise funds and transfer them exclusively to the RHA, the economic interest may be
so significant that the RHA may have control over the Foundation, even without the ability to
appoint the majority of the Foundation’s board. The Department requires appropriate disclosure in
accordance with the CICA Handbook section 4450 depending on the level of economic interest the
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APPENDIX 2
RHA has over the Foundation. An example of the required disclosures for fund raising foundations
is shown in Appendix 4, Notes 2 and 9 b) iv).
CICA Handbook Section 4450:
.02 (b)
Control of an entity is the continuing power to determine its strategic operating, investing,
and financing policies without the co-operation of others.
Control
.04
Strategic operating, investing and financing policies establish the basis for the conduct of an
entity’s operations and the deployment of its resources...
.05
One organization is presumed to control another entity when it has the right to appoint the
majority of the voting members of the other entity’s board of directors...
.06
In the absence of the right to appoint the majority of the voting members of another not-for
profit organization’s board of directors, the reporting organization would consider the
characteristics of its relationship with the other organization to determine if any indicators of
control are present. Possible indicators of control are:
.13
(a)
a significant economic interest in the other organization (see paragraphs
4450.10 -.12 for a discussion of economic interest);
(b)
provisions in the other organization’s charter or bylaws that cannot be
changed without the reporting organization’s consent and that limit the other
organization to activities that provide future economic benefits to the
reporting organization; or
(c)
the other organization’s purpose is integrated with that of the reporting
organization so that the two organizations have common or complementary
objectives.
Government and other entities that provide resources to not-for-profit organizations may
have some influence over such organizations by virtue of the fact that funding may be
withdrawn if the funder disagrees with the funded organization’s strategic policies. The fact
that an organization depends on the reporting organization for resources is not by itself an
indication of control or significant influence for purposes of this Section. …In cases where
the reporting organization itself is economically dependent on particular resource providers,
this fact would be clear from the disclosure of contributions by major source…Section 4410.
Significant Influence
.09
In situations where it is concluded that control does not exist, an organization may be able to
exercise significant influence over the strategic operating, financing, and investing activities
of another entity. Factors that may indicate that the reporting organization has significant
influence over another entity would include representation on the board of directors, the
existence of an economic interest, participation in policy-making processes, material inter-
January 2007
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APPENDIX 2
entity transactions, or interchange of managerial personnel. A temporary ability to affect the
other entity’s strategic policies would not be considered significant influence for purposes of
this Section.
Disclosure of significantly influenced not-for-profit organizations
.40
When the reporting organization has a significant influence in another not-for-profit
organization, the following should be disclosed:
(a) a description of the relationship with the significantly influenced organization;
(b) a clear and concise description of the significantly influenced organization’s
purpose, its intended community of service, its status under income tax legislation
and its legal form; and
(c) the nature and extent of any economic interest that the reporting organization
has in the significantly influenced organization.
Economic Interest
Control
.07
In some cases, the presence of a single indicator of control is sufficient for the organization
to conclude that control exists. For example, whether or not an organization has an
economic interest in another organization is an important characteristic of its relationship
with the other organization. The significance of economic interest as an indicator of control
can vary. If an organization is only able to raise funds and transfer them exclusively to the
reporting organization, the economic interest may be so significant that the reporting
organization may have control over the other organization, even without the ability to
appoint the majority of the other organization’s board of directors. A less significant
economic interest would have less impact on the question of whether or not control exists. 1
Economic Interest
.10
1
The reporting organization has an economic interest in another not-for-profit organization
when the other organization holds resources for the benefit of the reporting organization. An
economic interest also exists when the reporting organization is responsible for the other
organization's liabilities. The following are possible indicators of economic interest:
(a)
The other organization solicits funds in the name of and with the expressed or
implied approval of the reporting organization, and substantially all of the funds
solicited are intended by the contributor or are otherwise required to be transferred to
the reporting organization or used at its discretion or direction,
(b)
The reporting organization transfers significant resources to the other organization,
whose resources are held for the benefit of the reporting organization,
Section 4450 of the CICA Handbook provides definitions of significant influence in paragraph .09 and economic interest in paragraph .10.
Disclosure requirements are set out in paragraphs .40 to .42 and .45, respectively.
January 2007
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APPENDIX 2
(c)
.12
The other organization is required to perform significant functions on behalf of the
reporting organization that are integral to the reporting organization's achieving its
objectives; or
(d)
The reporting organization guarantees significant liabilities of the other organization.
In determining if an economic interest in another organization exists, the reporting
organization would consider whether the other organization is required to transfer resources
to or perform significant functions for the reporting organization. For example, externally
imposed restrictions on the other organization's resources could create an economic interest.
However, a funding relationship where the other organization is not obliged to provide
resources to the reporting organization may not be considered an economic interest.
Similarly, a situation where another organization holds fund raising events from time to time
for the benefit of the reporting organization may not result in an economic interest.
Disclosure of Economic Interest
.45
When an organization has an economic interest in another not-for-profit organization over
which it does not have control or significant influence, the nature and extent of this interest
should be disclosed.
.46
Information about the nature and extent of an economic interest will help financial statement
users assess the reporting organization’s financial position by making them aware of
resources from which that organization will benefit in the future and of the risks to which it
may be exposed. If, for example, the economic interest takes the form of assets that will
flow to the reporting organization, the amount of these assets and the purposes for which
they are to be used would be disclosed. If the economic interest takes the form of an
arrangement to solicit funds on behalf of the reporting organization, details of this
arrangement would be disclosed. The extent to which the economic interest involves
responsibility of the other organization’s liabilities would also be disclosed.
Conclusion
The RHAs will disclose economic interest and the amount of individual grant funding to a CBO
and third party as shown in Appendix 4, Note 9 b) i).
The Saskatoon Health Region will consolidate and disclose significant economic interest for St.
Paul’s Hospital, which it has a joint service management agreement as shown in Appendix 4,
Note 9 b) ii). Sunrise Health Region will combine the financial statements of its affiliates based on
CICA HB 1600.05 and 4450.19. The Department and the Provincial Comptroller must be
notified if the RHA is considering a change to accounting treatment for an affiliate or HCO
based on control.
The RHAs will disclose significant influence of affiliates as shown in Appendix 4, Note 9 b) iii).
The RHAs will disclose economic interest of fund raising foundations as shown in Appendix 4,
Note 9 b) iv). As a courtesy, RHAs should inform the foundations that they plan to disclose their
financial information.
January 2007
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APPENDIX 3
Appendix 3: Restricted Fund Accounting
January 2007
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APPENDIX 3
RESTRICTED FUND ACCOUNTING
CICA Handbook
The CICA Handbook’s accounting recommendations for not-for-profit organizations describe
restricted fund accounting in Section 4410 as follows:
.57
The restricted fund method is a specialized use of fund accounting. ...When an
organization follows the restricted fund method, it presents a single general fund, or
the total of all general funds and one or more restricted funds. The purpose of a
restricted fund is to record the receipt and use of resources that are subject to
restrictions. ...All revenue reported in a restricted fund is externally restricted.
Resources transferred to a restricted ... fund as a result of the organization imposing
internal restrictions would be recognized as inter fund transfers ...
Saskatchewan Health recommends that RHAs use one unrestricted fund (the operating fund) and a
maximum of two restricted funds (a capital fund and, if applicable, a pre-amalgamation/community
generated trust fund).
•
Operating fund (unrestricted) - The operating fund reflects the primary operations of the
RHA including revenues received for provision of health services from Saskatchewan Health General Revenue Fund, and billings to patients, clients, the federal government and other
agencies for patient and client services. Other Revenue consists of donations, recoveries, and
ancillary revenue. Other Provincial Revenue includes the subsidy received from Saskatchewan
Housing Corporation (SHC) in respect of certain long-term care facilities. Expenses are for the
delivery of health services and ancillary operations.
•
Capital fund (restricted) - The capital fund reflects the equity of the RHA in capital assets
after taking into consideration any associated long-term debt. The capital fund includes
revenues received from Saskatchewan Health - General Revenue Fund designated for the
construction of capital projects and/or the acquisition of capital assets. The capital fund also
includes donations designated for the acquisition of capital assets by the contributor. Expenses
consist primarily of amortization of capital assets. The capital fund is to include mortgage
related subsidies and payments.
•
Pre-amalgamation/community generated trust fund (restricted) - This fund will only apply
where the RHA controls community generated funds transferred to the RHA in accordance
with the pre-amalgamation agreements signed with the amalgamating health corporations. The
fund reflects cash and investments initially accumulated by the former health corporations in
the Region. These assets are accounted for separately and uses of the assets are subject to
restrictions set out in the pre-amalgamation agreements.
CICA Handbook Section 4410 - Recognition of restricted contributions
•
Reported in restricted funds
.62
January 2007
Restricted contributions for which a corresponding restricted fund is presented
should be recognized as revenue of that fund in the current period.
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APPENDIX 3
•
Reported in the general (operating) fund
. 65
Restricted contributions for which no corresponding restricted fund is presented
should be recognized in the general fund in accordance with the deferral method.
. 68
Unrestricted contributions should be recognized as revenue of the general fund in
the current period.
CICA Handbook Section 4410 - Definitions
.02(b)(i)
A restricted contribution is a contribution subject to externally imposed stipulations
that specify the purpose for which the contributed asset is to be used. A contribution
restricted for the purchase of a capital asset or a contribution of a capital asset itself is a
type of restricted contribution.
.02(e)(i)
A restricted fund is a self-balancing set of accounts the elements of which are restricted
or relate to the use of restricted resources. Only restricted contributions, ... and other
externally restricted revenue would be reported as revenue in a restricted fund.
Allocations of resources that result from the imposition of internal restrictions are
recorded as interfund transfers to the restricted fund.
January 2007
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APPENDIX 4
Appendix 4: Regional Health Authority Financial Statements
January 2007
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APPENDIX 4
ASSUMPTIONS AND ALTERNATIVES FOR SAMPLE FINANCIAL STATEMENTS
1.
The sample financial statements have been prepared under the following assumption:
Assumption
•
2.
The RHA controls pre-amalgamated/community-generated trust funds transferred to
the RHA under pre-amalgamation agreements with former health corporations.
The sample financial statements include alternatives for Notes disclosure and presentation in
specific circumstances as follows:
Alternatives
Note 2. Significant Accounting Policies
•
Part a) of this note illustrates disclosure required if the RHA has newly
amalgamated organizations for the fiscal year being audited.
•
Part b) of this note illustrates disclosure of affiliates with and without joint
service management agreements using significant economic interest and
significant influence, and economic interest in CBO’s, third parties, and fund
raising foundations.
•
Part d) iii) of this note illustrates disclosure required if the RHA controls
community generated funds transferred to the RHA under terms of the preamalgamation agreements.
Note 9. Related Parties
This note includes related party transactions and disclosure of CBOs, third parties,
affiliates, and foundations.
January 2007
•
Part a) discloses related party transactions.
•
Part b) i) discloses CBOs and third parties.
•
Part b) ii) discloses information about the RHAs that consolidate or combine the
financial statements where they hold joint service management agreements with
affiliates.
•
Part b) iii) discloses financial information about affiliates that are not
consolidated or combined in the financial statements.
•
Part b) iv) discloses financial information about the foundations.
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APPENDIX 4
Note 10. Comparative information
This note illustrates alternatives for disclosure of changes to comparative
information.
•
Alternative a) is used where there have been reclassifications to prior year’s
numbers only.
•
Alternative b) is used where the RHA has amalgamated with additional
healthcare organizations during the year.
Note 16. Community Generated Funds
•
3.
This note illustrates disclosure of community-generated funds where a RHA
does not have control but has administrative responsibility for administering the
funds.
Throughout the sample financial statements:
♦
explanatory or clarifying comments are indicated by use of a text box
♦ optional statement disclosure, notes, or portions of notes are indicated by use of an
italics font.
Templates for Sample Financial Statements, Schedules & Notes
"Templates - FRG
Stmts,Schedules & No
January 2007
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APPENDIX 4
i) Statements
Statement 1
ABC REGIONAL HEALTH AUTHORITY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at March 31, 2007
Restricted Funds
Capital
Community
Fund
Trust Fund
Operating
Fund
ASSETS
Current assets
Cash and short-term investments (Statement 3)
Accounts receivable
Saskatchewan Health - General Revenue Fund
Other
Inventory
Prepaid expenses
$
5,385,479
LIABILITIES & FUND BALANCE
Current liabilities
Accounts payable
Accrued salaries
Vacation payable
Mortgages payable – Current (Note 5)
Deferred Revenue (Note 6)
4,320,632
$
292,296
$
9,998,407
Total
2006
(Note 10)
$
8,416,236
4,047
492,706
552,044
439,928
6,874,204
542,600
29,513
4,892,745
60,081
352,377
546,647
582,300
552,044
439,928
12,119,326
547,642
563,267
476,019
10,003,164
58,500
-
365,939
16,025,788
595,336
-
1,019,775
16,025,788
992,358
17,632,932
$
6,932,704
$ 21,284,472
$
947,713
$ 29,164,889
$ 28,628,454
$
820,722
714,910
2,352,641
1,413,437
5,301,710
$
$
-
$
$
Investments (Market $1,178,175; 2006 - $1,095,632)
Capital assets (Note 3)
Total Assets
$
Total
2007
16,383
53,370
69,753
837,105
714,910
2,352,641
53,370
1,413,437
5,371,463
1,294,074
657,632
2,198,903
49,592
1,144,759
5,344,960
Long term liabilities
Long Term Leases Payable
Mortgages payable (Note 5)
Total Liabilities
454,980
5,756,690
2,365,076
2,434,829
-
454,980
2,365,076
8,191,519
2,418,075
7,763,035
Fund Balances:
Invested in capital assets
Externally restricted (Schedule 3)
Internally restricted (Schedule 4)
Unrestricted
Fund balances – (Statement 2)
1,176,014
1,176,014
13,607,342
16,906
717,599
4,507,796
18,849,643
947,713
947,713
13,607,342
964,619
717,599
5,683,810
20,973,370
15,165,265
915,176
710,728
4,074,250
20,865,419
6,932,704
$ 21,284,472
947,713
$ 29,164,889
$ 28,628,454
Total Liabilities & Fund Balances
*Investment in capital assets (in dollars):
Capital assets
Current portion of mortgage payable
Mortgage payable
$
$
$
$
16,028,788
(53,370)
(2,365,076)
13,607,342
This is for information purposes only to calculate the above (do not include this on the statement).
January 2007
25
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APPENDIX 4
Statement 2
ABC REGIONAL HEALTH AUTHORITY
CONSOLIDATED STATEMENT OF OPERATIONS AND
CHANGES IN FUND BALANCES
For the Year Ended March 31, 2007
Operating Fund
REVENUES
Saskatchewan Health - General
Other Provincial
Federal Government
Funding from other Provinces
Special Funded Programs
Patient Fees
Out of Province (Reciprocal)
Out of Country
Donations
Investment
Ancillary
Recoveries
Other
Fund Balances, beginning of year
Interfund transfers (Note 14)
Fund balances, end of year
January 2007
Restricted
Community
Trust Fund
Total
2007
2007
Budget
2007
2007
2006
(Note 10)
$ 52,246,796
450,000
20,000
150,000
1,699,095
225,000
55,000
100,000
108,000
168,000
301,900
440,361
55,964,152
$ 52,387,149
432,088
23,178
150,000
1,689,045
214,562
49,055
112,720
365,283
161,733
318,425
851,234
56,754,472
$ 50,832,625
452,019
19,504
90,000
1,745,074
241,654
63,125
185,839
312,081
164,148
325,489
555,425
54,986,983
12,541,743
10,002,865
1,582,821
16,854,494
3,419,845
2,349,554
267,000
1,020,886
357,917
814,755
3,666,054
240,653
469,000
1,900,879
346,886
128,800
55,964,152
11,000,197
11,246,785
1,674,504
17,047,994
3,100,080
2,242,100
267,000
925,998
433,100
944,910
3,558,357
225,332
497,425
1,926,977
348,421
117,810
55,556,990
10,569,943
10,975,426
1,618,336
16,290,264
3,264,196
2,082,999
267,000
975,019
405,938
790,560
3,321,429
228,450
478,512
1,886,452
334,684
105,822
53,595,030
1,263,801
642,675
423,151
7,216
16,340
37,762
2,390,945
2,336
2,336
1,263,801
642,675
423,151
9,552
16,340
37,762
2,393,281
1,709,025
689,426
392,876
22,039
15,013
36,445
2,864,824
-
1,197,482
1,391,953
(1,138,974)
49,443
(1,089,531)
(1,237,059)
EXPENSES
Province Wide Acute Care Services
Acute Care Services
Physician Compensation - Acute
Supportive Care Services
Home Based Service - Supportive Care
Population Health Services
Community Care Services
Home Based Services - Acute & Palliative
Primary Health Care Services
Emergency Response Services
Mental Health Services - Inpatient/Residential
Addictions Services - Residential
Physician Compensation - Community
Program Support Services
Special Funded Programs
Ancillary
Total Expenses (Schedule 1)
Excess (Deficiency) of revenues over expenses
Capital
Fund
2007
$
1,886,131
(1,907,599)
$ 1,176,014
1,884,178
(1,390,000)
$ 1,886,131
$
966,818
146,168
132,572
6,413
1,251,971
18,081,018
1,907,599
$ 18,849,643
$
$
51,779
51,779
898,270
947,713
$
Total
2006
(Note 10)
966,818
146,168
184,351
6,413
1,303,750
$
18,979,288
1,907,599
$ 19,797,356
498,755
183,288
139,795
805,927
1,627,765
18,826,347
1,390,000
$ 18,979,288
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APPENDIX 4
Statement 3
ABC REGIONAL HEALTH AUTHORITY
CONSOLIDATED STATEMENT OF CASH FLOW 1
For the Year Ended March 31, 2007
Operating Fund
2007
Restricted Fund
Community
Total
Trust Fund
2007
Capital
Fund
2006
Total
2006
(Note 10)
Cash Provided by (used in):
Excess (deficiency) of revenue over expenditure $ 1,197,482
Net change in non-cash working capital (Note 7)
513,419
Amortization of capital assets
Investment income on long-term investments
Gain/(loss) on disposal of capital assets
1,710,901
Purchase of capital assets
Buildings/construction
Equipment
Proceeds on disposal of capital assets
Buildings
Equipment
Purchase of long-term investment
Repayment of debt
(Note 10)
Operating Activities
Financing and Investing Activities
$ 1,391,953
369,196
1,761,149
$ (1,138,974)
(545,428)
2,349,662
(32,500)
632,760
-
-
(3,000)
(3,000)
$
49,443
(24,277)
(13,981)
11,185
$ (1,089,531)
(569,705)
2,349,662
(46,481)
643,945
$ (1,237,059)
226,057
2,485,521
(29,546)
1,444,973
(696,733)
(41,283)
(2,336)
(696,733)
(43,619)
(2,185,264)
(365,856)
(55,500)
(55,500)
19,898
(718,118)
(2,336)
19,898
(720,454)
1,482
(2,549,638)
-
-
(49,221)
-
(49,221)
(45,415)
1,707,901
1,705,649
(134,579)
8,849
(125,730)
(1,150,080)
Net increase (decrease) in cash & short
term investments during the year
Cash & short term investments,
beginning of year
Interfund transfers (Note 14)
Cash & short term investments,
end of year (Schedule 2)
5,585,177
(1,907,599)
5,269,528
(1,390,000)
2,547,612
1,907,599
283,447
-
2,831,059
1,907,599
2,591,139
1,390,000
$ 5,385,479
$ 5,585,177
$ 4,320,632
$ 292,296
$ 4,612,928
$ 2,831,059
Amounts in cash balances
Cash & short term investments
$ 5,385,479
$ 5,585,177
$ 4,320,632
$ 292,296
$ 4,612,928
$ 2,831,059
1
Statement is prepared on a fund accounting basis using the indirect method (see CICA paragraph 4400.48).
January 2007
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Financial Reporting Guide 2006-07
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ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
ii) Notes
1.
Legislative Authority
On August 1, 2002, the Legislative Assembly passed The Regional Health Services Act (The
Act). The Act created the Regional Health Authorities for the purpose of governing the
delivery of health services as well as establishing and governing Health Regions in the
province of Saskatchewan. The ___Regional Health Authority was created by The Act and
is responsible for the planning, organization, delivery, and evaluation of health services it is
to provide within the geographic area known as the ___ Health Region, under section 27 of
The Act.
The ___ Regional Health Authority is a non-profit organization and is not subject to income
and property taxes from the federal, provincial, and municipal levels of government.
2.
Significant Accounting Policies
These financial statements are prepared in accordance with Canadian Generally Accepted
Accounting Principles and include the following significant accounting policies.
Point a) is only necessary if additional health care organizations were amalgamated with
the RHA during the current fiscal year.
a) Amalgamation of Organizations
The Act and regulations under the Act assign the XX Regional Health Authority (RHA)
the responsibility to co-ordinate and deliver certain institutional and community based
health services. To meet this responsibility, certain health care organizations (HCOs)
were amalgamated with the RHA. In the 2006-07 fiscal year, the following HCOs
amalgamated with the RHA:
(List names of HCOs amalgamated)
b) Health Care Organizations
i) The RHA has agreements with and grants funding to the following CBOs and third
parties to provide health services:
(List names of CBO’s and Third Party organizations)
Note 9 b) i) provides disclosure of payments to CBOs and third parties.
Include point ii) when there is a joint service management agreement with an
affiliate and point iii) for agreement with an affiliate.
January 2007
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ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
ii) The following affiliates are incorporated as follows (and are registered charities
under The Income Tax Act):
(List affiliate names and applicable Act)
Choose one of the following options: the first one is for consolidated
affiliates and the second for combined affiliates.
In addition to an affiliate agreement, the RHA has a Joint Service Management
Agreement with [name of affiliate]. (RHA should further disclose briefly the
responsibilities of the joint service agreement).
As a result, the financial statements of [name of affiliate] are consolidated with the
financial statements of the RHA. Transactions and inter-organization balances
between the RHA and [name of affiliate] are eliminated.
Note 9 b) ii), provides supplementary information regarding the consolidated
affiliate.
or
In addition to an affiliate agreement, the RHA has a Joint Service Management
Agreement with [name of affiliate]. (RHA should further disclose briefly the
responsibilities of the joint service agreement).
As a result, the financial statements of [name of affiliate] are combined with the
financial statements of the RHA. Transactions and inter-organization balances
between the RHA and [name of affiliate] are eliminated.
Note 9 b) ii), provides supplementary information regarding the combined affiliate.
iii) The following affiliates are incorporated as follows (and are registered charities
under The Income Tax Act):
(List affiliate names and applicable Act)
The RHA provides annual grant funding to these organizations for the delivery of
health care services. Consequently, the RHA has disclosed certain financial
information regarding these affiliates.
These affiliates are not consolidated into the RHA financial statements.
Alternatively, Note 9 b) iii) provides supplementary information on the financial
position, results of operations, and cash flows of the affiliates.
January 2007
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ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
Include iv) if the RHA receives assets or funding for assets from a fund raising
foundation. (These foundations would not have been subject to preamalgamation agreements between the RHA and former health corporations.)
iv) The ABC Foundation (the Foundation) is incorporated under The Non-Profit
Corporations Act and is a registered charity under The Income Tax Act.
Under the Foundation’s Articles of Incorporation, all funds raised by the
Foundation after payments of reasonable expenses must be paid to the RHA (or
must be used to purchase and transfer assets to the RHA, for the purpose to provide
health care services.)
Reference CICA 4450.06 and 4450.10-12
These financial statements do not include the financial activities of the foundation.
Alternatively, Note 9 b) iv) provides supplementary information of the foundation.
Or
Include the following note disclosure if the foundation is
controlled by the RHA.
iv) The ABC Foundation (the Foundation) is incorporated under The Non-Profit
Corporations Act and is a registered charity under The Income Tax Act.
Under the Foundation’s Articles of Incorporation, all funds raised by the
Foundation after payments of reasonable expenses must be paid to the RHA (or,
must be used to purchase and transfer assets to the RHA, for the purpose to provide
health care services).
Disclosure should include other relevant information about the agreement.
The RHA has an agreement with the Foundation to fund raise exclusively and
administer the funds for the RHA. The RHA provides financial support through an
annual operating grant.
These financial statements do not consolidate the financial activities of the
foundation. Alternatively, Note 9 b) iv) provides supplementary information on the
financial position, results of operations, and cash flows of the foundation.
d) Fund Accounting
The accounts of the RHA are maintained in accordance with the restricted fund method
of accounting for contributions. For financial reporting purposes, accounts with similar
characteristics have been combined into the following major funds:
January 2007
30
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
i) Operating Fund
The operating fund reflects the primary operations of the RHA including revenues
received for provision of health services from Saskatchewan Health - General
Revenue Fund, and billings to patients, clients, the federal government and other
agencies for patient and client services. Other revenue consists of donations,
recoveries, and ancillary revenue. Expenses are for the delivery of health services.
ii) Capital Fund
The capital fund is a restricted fund that reflects the equity of the RHA in capital
assets after taking into consideration any associated long-term debt. The capital fund
includes revenues received from Saskatchewan Health - General Revenue Fund
designated for construction of capital projects and/or the acquisition of capital assets.
The capital fund also includes donations designated for capital purposes by the
contributor. Expenses consist primarily of amortization of capital assets.
The following note iii) only applies where the RHA controls communitygenerated funds transferred to the RHA in accordance with the preamalgamation agreements signed with the amalgamating health corporations.
iii) Community Trust Fund
The community trust fund is a restricted fund that reflects community generated
assets transferred to the RHA in accordance with the pre-amalgamation agreements
signed with the amalgamating health corporations. The assets include cash and
investments initially accumulated by the health corporations in the RHA from
donations or municipal tax levies. These assets are accounted for separately and use
of the assets is subject to restrictions set out in pre-amalgamation agreements
between the RHA and the health corporations.
e) Revenue
Unrestricted contributions are recognized as revenue in the Operating Fund in the year
received or receivable if the amount to be received can be reasonably estimated and
collection is reasonably assured.
Restricted contributions related to general operations are recorded as deferred revenue
and recognized as revenue of the Operating Fund in the year in which the related
expenses are incurred. All other restricted contributions are recognized as revenue of the
appropriate restricted fund in the year.
January 2007
31
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
f) Capital Assets
Capital assets are recorded at cost. Normal maintenance and repairs are expensed as
incurred. Capital assets, with a life exceeding one year, are amortized on a straight-line
basis over their estimated useful lives as follows:
Buildings
Land improvements
Equipment
% range
% range
% range
Donated capital assets are recorded at their fair value at the date of contribution (if fair
value can be reasonably determined.)
Transfers of capital assets from a related party are to be recorded at the asset
carrying amounts.
g) Inventory
Inventory consists of general stores, pharmacy, laboratory, linen, and other. All
inventories are valued at cost as determined on the first in, first out basis.
h) Investments
Investments are valued at the lower of cost or market.
i) Pension
Employees of the RHA participate in several multiemployer defined benefit pension
plans or a defined contribution plan. The RHA follows defined contribution plan
accounting for its participation in the plans. Accordingly, the RHA expenses all
contributions it is required to make in the year.
j) Measurement Uncertainty
These financial statements have been prepared by management in accordance with
Canadian Generally Accepted Accounting Principles. In the preparation of financial
statements, management makes various estimates and assumptions in determining the
reported amounts of assets and liabilities, revenues and expenses and in the disclosure of
commitments and contingencies. Changes in estimates and assumptions will occur based
on the passage of time and the occurrence of certain future events. The changes will be
reported in earnings in the period in which they become known.
January 2007
32
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
3.
Capital Assets
Land
Land Improvements
Buildings
Equipment
Construction in progress
4.
Cost
224,576
170,461
24,716,741
16,543,913
8,410
$ 41,664,101
$
March 31, 2007
Accumulated
Amortization Net Book Value
$
- $
224,576
110,563
59,898
13,801,625
10,915,116
11,726,125
4,817,788
8,410
$ 25,638,313 $ 16,025,788
APPENDIX 4
Notes
March 31, 2006
Net Book
Value
$
224,576
46,466
11,556,243
5,805,647
$ 17,632,932
Commitments
a) Capital Assets Acquisitions
At March 31, 2007, commitments for acquisition of capital assets were $76,540 (2006 - $263,438).
b) Operating Leases
Minimum annual payments under operating leases on property and equipment over the
next five years are as follows:
2008
2009
2010
2011
2012
$ 113,745
113,745
113,745
113,745
113,745
c) Capital Leases
2008
Cost
Equipment under capital lease
Building under capital lease
Total
326,000
441,000
767,000
Accumulated
Amortization
130,400
176,400
306,800
2007
Net Carrying
Amount
Net Carrying
Amount
195,600
264,600
460,200
260,800
308,700
569,500
The building and equipment are amortized on a straight-line basis over the economic life beginning in the year of acquisition.
Minimum annual payments under capital leases on equipment and the building over the full lease term are as follows:
Interest rate
Expiry date
2008
2009
2010
2011
2012
2013 and subsequent
Total minimum lease payments
Amount representing interest
Balance of the obligation
Less current portion
Long term portion
January 2007
Equipment
5.3%
31-Mar-11
68,656
68,656
68,656
68,656
274,622
(13,822)
260,800
(68,656)
192,144
Building
4.0%
31-Mar-14
45,864
45,864
45,864
45,864
45,864
91,728
321,048
(12,348)
308,700
(45,864)
262,836
Total
114,520
114,520
114,520
114,520
45,864
91,728
595,670
(26,170)
569,500
(114,520)
454,980
Refer to CICA
3065.22-.26
33
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
5.
APPENDIX 4
Notes
Mortgages Payable
(in dollars)
Balance Outstanding
Title of Issue
Interest
Rate
Annual Repayment Terms
7.22%
$105,409 principal & interest of
which $24,356 is subsidized by SHC.
Yielding an effective interest rate of
4.02%. Mortgage renewal date –
June 1, 2011
2007
2006
$1,229,998
$1,261,502
6.88%
$10,814 principal & interest.
Mortgage renewal date – May 1,
2007
75,751
77,770
5.38%
$19,292 principal & interest.
Mortgage renewal date - June 1,
2005.
242,888
252,573
869,809
875,822
$2,418,446
$2,467,667
Deadwood and District Nursing Home
Bank of Montreal, due June 1, 2018
Saskatchewan Pioneer Lodge
CIBC, due May 1, 2018
Big District Centennial Lodge
Town 1 Credit Union, due June 1, 2015
Golden Arches Home
CMHC, due July 1, 2026
$110,375 principal & interest of
which $53,576 is subsidized by SHC.
Yielding an effective interest rate of
8.15 %. Mortgage renewal date - July
10.50% 1, 2006.
Less: Current portion
53,370
49,592
$2,365,076
$2,418,075
For each of the mortgages, the RHA has pledged the related buildings of the special care
homes as security. Principal repayments required in each of the next five years is estimated
as follows:
2008
2009
2010
2011
2012
2013 and subsequent
$ 53,370
57,883
62,794
68,140
73,959
2,102,300
The RHA may have other types of long-term debt. For each debt issue follow disclosure set out above, i.e.
specify: security, lender, term/maturity, interest rate, annual payment, annual mortgage subsidy [if
applicable], security on the debt, and amount of debt outstanding for current year and previous year.
Title of Issue: mortgages cannot be held by SHC, mortgages administered by SHC are ‘held’ by CMHC (see
page 58 for further details)
January 2007
34
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
6.
APPENDIX 4
Notes
Deferred Revenue
Balance
Beginning of
Year
Sask Health Initiatives
Saskatchewan Health – General
Revenue Fund
$
Less Amount
Recognized
-
$
Add Amount
Received
-
$
Balance End of
Year
-
$
-
Health Improvement Initiatives
612,478
54,982
145,412
702,908
Work Place Wellness
251,346
53,415
23,145
221,076
Sask Health Initiative
Sask Health Initiative
Total Sask Health
$
863,824
$
108,397
$
168,557
$
923,984
$
280,935
$
24,375
$
232,893
$
489,453
Non Sask Health Initiatives
Initiative
Initiative
-
-
-
Initiative
-
-
-
-
Total Non Sask Health
$
280,935
$
24,375
$
232,893
$
489,453
Total Deferred Revenue
$
1,144,759
$
132,772
$
401,450
$
1,413,437
(Sentence removed, already stated in note 2e)
The basis of the deferral needs to be disclosed.
7.
Net Change in Non-cash Working Capital
Operating Fund
(Increase) Decrease in accounts receivable
(Increase) Decrease in inventory
(Increase) Decrease in prepaid expenses
Increase (Decrease) in accounts payable
Increase (Decrease) in accrued salaries
Increase (Decrease) in vacation payable
Increase (Decrease) in deferred revenue
8.
2007
$ (17,339)
11,223
36,091
3,750
57,278
153,738
268,678
$ 513,419
2006
$ 544,287
(8,297)
46,652
113,145
(600,123)
277,843
(4,311)
$ 369,196
Capital
Fund
$ (539,689)
(5,739)
$ (545,428)
Restricted Funds
Community
Total
Trust Fund
2007
$ (24,277) $ (563,966)
(5,739)
$ (24,277) $ (569,705)
Total
2006
$ 233,496
(7,439)
$ 226,057
Patient and Resident Trust Accounts
The RHA administers funds held in trust for patients and residents using the RHA’s
facilities. The funds are held in separate accounts for the patients or residents at each facility.
The total cash held in trust as at March 31, 2007 was $7,014 (2006 - $8,523). These amounts
are not reflected in the financial statements.
January 2007
35
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
Related Parties 1
9.
These financial statements include transactions with related parties. The RHA is related to
all Saskatchewan Crown Agencies such as departments, corporations, boards, and
commissions under the common control of the Government of Saskatchewan. The RHA is
also related to non-Crown enterprises that the Government jointly controls or significantly
influences. In addition, the RHA is related to other non-Government organizations by virtue
of its economic interest in these organizations.
The following note ‘a)’ is required when all material related party transactions are
adequately disclosed in the financial statements; therefore, they do not need to be disclosed
separately in this note (adequate disclosure includes amounts due to or from related parties
and the recorded amount of transactions by financial statement category). Consider the
qualitative as well as quantitative characteristics of materiality when disclosing related party
transactions.
a) Related Party Transactions
Transactions with these related parties are in the normal course of operations. Amounts due
to or from and the recorded amounts of the transactions resulting from these transaction are
included in the financial statements at the standard rates charged by those organizations
and are settled on normal trade terms.
The following paragraph is required if not all material related party transactions are
disclosed in the financial statements. In this case, a table disclosing transactions not
disclosed in the financial statements is required. When considering disclosure of related
party transactions, the qualitative as well as quantitative characteristics of materiality should
be considered.
Transactions with these related parties are in the normal course of operations. Amounts due
to or from and the recorded amounts of transactions resulting from these transactions are
included in the financial statements and the table below. They are recorded at the standard
rates charged by those organizations and are settled on normal trade terms.
1
RHAs need to ensure only significant/material related parties are disclosed in the financial statements and/or notes. For a listing of
potential related parties refer to Appendix 8. Each RHA needs to assess its transactions to determine if other related parties should be
disclosed.
January 2007
36
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
2007
APPENDIX 4
Notes
2006
Revenues
Saskatchewan Housing Corp
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Related Party Revenue
Expenditures
Saskatchewan Energy Corp
Related Party Expense
Accounts Receivable
SaskTel
Related Party Receivable
Prepaid Expenditures
Workers Compensation
Related Party Prepaid
Accounts Payable
SaskPower Corp.
Related Party Payable
In addition, the RHA pays Provincial Sales Tax to the Saskatchewan Department of
Finance on all its taxable purchase. Taxes paid are recorded as part of the cost of those
purchases.
b) Health Care Organizations
i) Community Based Organizations and Third Parties
The RHA has also entered into agreements with CBOs and Third Parties to provide
health services.
These organizations receive operating funding from the RHA on a monthly basis in
accordance with budget amounts approved annually. During the year, the RHA
provided the following amounts to CBOs and Third Parties:
(list organizations that receive grants)
CBO
Other Related Party (e.g. ambulance service)
January 2007
2007
2006
$ 500,000
400,000
$ 500,000
350,000
$ 900,000
$ 850,000
37
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
ii) Affiliates with Joint Service Management Agreements
The following note is required if the RHA has consolidated or combined an affiliate’s
financial statements in the RHA’s financial statements, based on a joint service
management agreement. This note assumes that the consolidated affiliates have similar
accounting policies and report on the same year-end as the RHA. Disclosure of
significant economic interest should be followed as noted in the CICA HB 4450.30-35.
This note assumes these organizations have similar accounting policies and report on the
same year-end as the RHA.
Additionally, if an RHA has combined an affiliate’s financial statements in the RHA’s
financial statements, based on a joint service management agreement then disclosure
of significant influence and combined statements should follow CICA HB 4450.40.
This note assumes that the combined affiliates have similar accounting policies and
report on the same year-end as the RHA.
The Act makes the RHA responsible for the delivery of health services in its region
including the health services provided by privately owned affiliates. The Act
requires affiliates to conduct their affairs and activities in a manner that is consistent
with, and that reflects, the health goals and objectives established by the RHA.
Further, the RHA provides most of the affiliates funding. Accordingly, the RHA has
significant economic interest (significant influence) in the affiliate(s) and has the
ability to determine (affect) the strategic operating, investing, and financing activities
of the affiliates.
The RHA consolidated (combined) financial statements include the accounts of St.
Elsewhere Health Centre and Sandhills Hospital based on the Joint Service
Management Agreement held with each of the two organizations.
iii) Affiliates
The following note is required to show the RHA has disclosed certain financial
information pertaining to other organizations because of affiliation agreements.
This note assumes these organizations have similar accounting policies and
report on the same year-end as the RHA.
The Act makes the RHA responsible for the delivery of health services in its region
including the health services provided by privately owned affiliates. The Act
requires affiliates to conduct their affairs and activities in a manner that is consistent
with, and that reflects, the health goals and objectives established by the RHA. The
RHA exercises significant influence over affiliates by virtue of its material interentity transactions. There is also an interchange of managerial personnel, provision
of human resource and finance/administrative functions with some affiliates. The
following presentation discloses the amount of funds granted to each affiliate:
January 2007
38
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 4
Notes
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
2007
(list affiliates that receive grants)
Affiliate 1
Affiliate 2
2006
$
1,500,000
2,000,000
$
1,500,000
3,250,000
$
3,500,000
$
4,750,000
In the following information, if current year information is not available, then
use prior year financial information and note disclose any significant activity
occurring in the 2006-07 fiscal year
Saskatchewan Health requires additional reporting in the following financial
summaries of the affiliate entities for the years ended March 31, for 2007 and 2006.
Total
2007
Balance Sheet
Assets
Net Capital Assets
Total Assets
Total
2006
$
1,234,000
2,706,000
$
1,112,000
2,514,000
$
3,940,000
$
3,626,000
$
3,339,000
601,000
3,940,000
$
3,050,000
576,000
3,626,000
Total Liabilities
Total Net Assets (Fund Balances)
Results of Operations
RHA Grant
Other Revenue
$
Total Revenue
3,500,000
1,500,000
5,000,000
Total Expenses
$
4,050,000
925,000
4,975,000
$
3,900,000
965,000
4,965,000
$
25,000
$
35,000
Salaries & Benefits
Other Expenses*
Excess Revenue over Expenses
$
3,750,000
1,250,000
5,000,000
* Other Expenses includes amortization of $105,421 (2006 - $102,354)
Cash Flows
Cash from Operations
Cash used in Financing Activities
Cash used in Investing Activities*
Increase in cash
$
50,000
(10,000)
(9,000)
$
75,000
(15,000)
(8,000)
$
31,000
$
52,000
* Cash used in Investing Activities includes capital purchases of $7,800 (2006 - $6,841)
January 2007
39
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
iv) Fund Raising Foundations
The following note disclosure is required if the RHA has economic interest in
the fundraising foundations.
Fund raising efforts are undertaken through a non-profit business corporation known as
the ABC Foundation (the Foundation). The XX RHA has an economic interest in the
Foundation. In accordance with donor-imposed restrictions, $10,000 (2006 - $7,500) of
the foundation’s net assets must be used to purchase specialized equipment. The
foundation’s total expenses include contributions of $73,748 (2006 - $138,263) to the
RHA.
OR
The following note disclosure is required if the RHA has control of the
fundraising foundations.
XX RHA (RHA) controls ABC Foundation (the Foundation) by virtue of an agreement
and for the period set to expire on [date]. The Foundation raises funds from the
residents and from the communities in the XX RHA.
The Foundation has not been consolidated in the RHA’s financial statements. Financial
statements of the Foundation are available upon request. Financial summaries of the
unconsolidated entity for the years ended March 31, 2007 and 2006 are as follows:
ABC Foundation
Balance Sheet
Total Assets
$
Total Liabilities
Total Net Assets (Fund Balances)*
$
2007
20,050
500
19,550
20,050
$
$
2006
21,000
1,500
19,500
21,000
* In accordance with donor-imposed restrictions, $10,000 (2006 - $7,500) of the
foundation’s net assets must be used to purchase specialized equipment.
Results of Operations
RHA Operating Grant
Other Revenues
Total revenues
Total expenses*
Excess of revenue over expenses $
2007
$
25,000
75,500
100,500
100,000
500
2006
$
25,000
125,000
$
150,000
149,000
$
1,000
* Total expenses include contributions of $73,748 (2006 - $138,263) to the RHA and
amortization of $5,500 (2006 - $5,100).
January 2007
40
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
2007
Cash flows
Cash from operations
Cash used in financing and investing activities*
APPENDIX 4
Notes
2006
$
7,000
(9,000)
$
9,000
(8,000)
(Decrease) increase in cash $
(2,000)
$
1,000
* Investing activities includes capital purchases of $2,500 (2006 - $3,000)
10.
Comparative Information
a) Certain 2005-06 balances have been reclassified to conform to the current year’s
presentation.
Choose option b) if the Board amalgamated with HCOs during the year other than
the amalgamation into the region.
b) As described in Note 2a), the RHA amalgamated with [number] additional healthcare
organizations during the year. By aggregating the financial statements of the controlled
organization with those of the reporting organization, the assets, liabilities, and results of
operations of the HCOs are included in the financial statements for the 2006 fiscal year.
As a result, the 2006 comparative figures are restated as follows:
2006
As Previously
Recorded
$28,115,208
Restatement
$513,246
2006
As Restated
$28,628,454
7,000,887
762,148
7,763,035
- Operating fund
2,543,254
(659,076)
1,884,178
- Restricted funds
18,931,543
(105,196)
18,826,347
- Operating fund
1,678,526
207,605
1,886,131
- Restricted funds
19,435,795
(456,507)
18,979,288
Revenues
54,135,999
2,478,749
56,614,748
Expenses
54,496,475
1,963,379
56,459,854
(360,476)
515,370
154,894
Assets
Liabilities
Fund balances, beginning of year
Fund balances, end of year
Excess of revenue over expenses
January 2007
41
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
11.
APPENDIX 4
Notes
Pension Plan
Employees of the RHA participate in one of the following pension plans:
1. Saskatchewan Healthcare Employees’ Pension Plan (SHEPP)- This is jointly governed by
a board of eight trustees. Four of the trustees are appointed by the Saskatchewan Association
of Health Organizations (SAHO) (a related party) and four of the trustees are appointed by
Saskatchewan’s health care unions (CUPE, SUN, SEIU, SGEU, RWDSU, and HSAS).
SHEPP is a multiemployer defined benefit plan, which came into effect December 31, 2002.
(Prior to December 31, 2002, this plan was formerly the SAHO Retirement Plan and
governed by the SAHO Board of Directors).
2. Public Service Superannuation Plan (a related party) - This is also a defined benefit plan
and is the responsibility of the Province of Saskatchewan.
3. Public Employees’ Pension Plan (a related party) - This is a defined contribution plan and
is the responsibility of the Province of Saskatchewan.
The RHA's financial obligation to the plans is limited to making required payments to match
amounts contributed by employees for current services. Pension expense for the year
amounted to $1,159,818 (2006 - $1,098,313) and is included in benefits in Schedule 1.
The RHA also needs to disclose a description of the nature and effect of any significant
change during the period affecting the comparability of the expenses – such as a change in
the rate of employer contributions.
Effective [date], contribution rates are as follows:
xx% (xx% - 2006) of pensionable earnings up to the yearly maximum pensionable
earnings (CPP) plus
xx% (xx% - 2006) of pensionable earnings above the yearly maximum pensionable
earnings (CPP).
12.
Budget
The RHA Board approved the 2006-07 budget plan on [date].
13.
Financial Instruments
a) Significant terms and conditions
There are no significant terms and conditions related to financial instruments classified
as current assets or current liabilities that may affect the amount, timing, and certainty of
January 2007
42
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
APPENDIX 4
Notes
future cash flows. Significant terms and conditions for the other financial instruments
are disclosed separately in these financial statements.
b) Credit risk
The RHA is exposed to credit risk from the potential non-payment of accounts
receivable. The majority of the RHA’s receivables are from Saskatchewan Health General Revenue Fund, Saskatchewan Workers’ Compensation Board, health insurance
companies or other Provinces. Therefore, the credit risk is minimal.
If a RHA does have significant concentrations of credit risk with respect to other
receivables, make the disclosure here.
c) Fair value
The following methods and assumptions were used to estimate the fair value of each
class of financial instrument:
•
•
•
The carrying amounts of these financial instruments approximate fair value due
to their immediate or short-term nature.
cash and short-term investments
accounts receivable
accounts payable
accrued salaries and vacation payable
For investments, the fair value is considered to approximate quoted market
values.
The fair value of mortgages payable before the repayment required within one
year, is $2,660,709 (2006 - $2,712,303) and is determined using discounted cash
flow analysis based on current incremental borrowing rates for similar
borrowing arrangements.
d) Short-term Borrowing/Operating Line-of-credit
Short-term borrowings are secured by ____ and bearing interest at an interest rate of x%,
which is due on demand. Total interest paid on the short-term borrowings in 2007 was
$x (2006 - $x).
The RHA has a line-of-credit limit of $x (2006 - $x) with an interest charged at x%
which is re-negotiated annually. The line-of-credit is secured by _____. Total interest
paid on the line-of-credit in 2007 was $x (2006 - $x). This line-of-credit was approved
by the Minister on [date].
January 2007
43
Financial Reporting Guide 2006-07
Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
14.
APPENDIX 4
Notes
Interfund Transfers
Each year the RHA transfers amounts between its funds for various purposes. These include
funding capital asset purchases, and reassigning fund balances to support certain activities.
2007
Operating
Fund
Building renovations
Capital asset purchases
SHC reserves
Mortgage payments
Other
15.
$
(1,190,000)
(717,599)
$ (1,907,599)
Capital
Fund
$
1,190,000
717,599
$ 1,907,599
2006
Community
Trust
Fund
$
$
-
Operating
Fund
$
(1,390,000)
$ (1,390,000)
Capital
Fund
$
1,390,000
$ 1,390,000
Community
Trust
Fund
$
$
-
Volunteer Services
The following note is only required if the RHA has received significant volunteer
services.
The operations of the RHA utilize services of many volunteers. Because of the difficulty in
determining the fair market value of these donated services, the value of these donated
services is not recognized in the financial statements.
16.
Community Generated Funds
These financial statements have been prepared using the example whereby preamalgamation agreements between the RHA and the former health corporations allow the
RHA to control former community generated funds. The substance of other preamalgamation agreements may result in other required accounting treatment for the
community-generated funds. One example follows:
•
In this example the RHA does not control the community generated funds but is
responsible for administering the funds as trustee.
Under the terms of the pre-amalgamation agreement, the RHA has agreed to hold
community generated assets in trust. The Board established a separate fund for the assets of
each trust. Health corporations formerly held these assets before amalgamating with the
Board. The assets are interest bearing with the interest credited to the trust balance. The
Board presently administers $x,xxx,xxx (2006 - $x,xxx,xxx) under these agreements. The
assets are not property of the RHA and are therefore not included as part of the assets of the
Board.
January 2007
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Saskatchewan Health
ABC REGIONAL HEALTH AUTHORITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at March 31, 2007
•
APPENDIX 4
Notes
If additional trust funds were established during the year, the following sentence
should be added to the previous paragraph.
During the year, the RHA received and transferred to community generated funds and
registered foundations trust monies of $xx,xxx (2006 - $xx,xxx). Following is the status of
the trust funds at March 31, 2007:
Each trust fund has a "Trust Advisory Committee" which is appointed by the various towns,
villages, hamlets, and rural municipalities served by the pre-amalgamation agency. The
trust funds are for the benefit of the ratepayers of the various municipalities and shall be
used for health related purposes. The committees have the power to establish rules and
procedures and the majority decision of the committees shall be binding upon the RHA with
respect to any use of the trust fund.
17.
Subsequent Events
Enter any that are applicable - for example, a facility closed or converted after yearend, but before the audit report date. (If the pension rate does not change until after
March 2007, then include it as a subsequent event.)
January 2007
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Saskatchewan Health
APPENDIX 4
iii) Schedules
Schedule 1
ABC REGIONAL HEALTH AUTHORITY
SCHEDULE OF CONSOLIDATED EXPENSES BY OBJECT
For the Year Ended March 31, 2007
Budget
2007
Operating:
Board costs
Compensation - Benefits
Compensation - Salaries
Diagnostic imaging supplies
Drugs
Food
Grants to ambulance services
Grants to third parties
Housekeeping and laundry supplies
Information technology contracts
Insurance
Interest
Laboratory supplies
Medical and surgical supplies
Medical remuneration and benefits
Office supplies and other office costs
Other
Other referred out services
Professional fees
Prosthetics
Purchased services
Rent/lease costs
Repairs and maintenance
Service contracts
Travel
Utilities
$
$
Restricted:
Amortization
Loss/(Gain) on disposal of fixed assets
Other
82,500
4,650,122
27,913,975
384,400
1,175,225
615,240
675,000
11,790,000
704,600
24,800
77,000
200,000
432,100
1,085,500
1,790,200
300,000
555,800
87,000
150,000
195,000
305,600
1,150,050
240,500
590,000
789,540
55,964,152
$
$
$
$
January 2007
Actual
2007
Actual
2006
82,727
4,515,241
27,835,423
375,138
1,103,245
611,411
676,134
11,810,490
702,111
21,354
77,460
196,394
428,232
1,079,354
1,763,070
296,391
546,159
81,457
134,659
198,452
307,619
1,093,248
234,895
588,233
798,093
55,556,990
77,534
3,795,465
27,312,295
341,984
1,095,135
621,842
577,234
11,490,247
691,938
18,345
74,610
200,007
407,130
1,111,669
1,722,673
261,306
479,888
86,524
153,129
185,347
302,838
1,051,294
201,498
587,777
747,321
53,595,030
2,349,662
43,619
2,393,281
$
$
$
$
2,485,521
379,303
2,864,824
46
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 4
Schedule 2
ABC REGIONAL HEALTH AUTHORITY
SCHEDULE OF CONSOLIDATED INVESTMENTS
For the Year Ended March 31, 2007
Amount
Maturity
Effective
Rate
Coupon
Rate
07/15/2006
09/30/2006
4.67%
5.67%
-----
07/12/2009
11/15/2009
12/01/2009
10/10/2010
04/15/2014
8.00%
7.35%
6.50%
7.80%
9.20%
10.00%
----9.80%
11.20%
01/27/2009
10.25%
Restricted Investments*
Cash and Short Term
Chequing and Savings:
Deadwood Credit Union
Town 1 CIBC
$
$
Term Deposits:
Town 1 CIBC
Town 2 Bank of Montreal
Total Cash & Short Term Investments
$
4,549,580
19,188
4,568,768
$
16,160
28,000
44,160
$
4,612,928
$
$
103,436
200,000
200,000
100,000
357,839
961,275
$
5,574,203
$
5,385,479
5,385,479
Long Term
Ontario Hydro Coupon
Sunlife Trust, GIC
North American Trust, GIC
Canada Savings Bond
Province of Saskatchewan
Total Long Term Investments
Total Restricted Investments
Unrestricted Investments
Cash and Short Term
Chequing and Savings - Royal Bank
Other
Other
Total Cash & Short Term Investments
$
Long Term
Province of Saskatchewan
Other
Other
Total Long Term Investments
$
$
58,500
58,500
Total Unrestricted Investments
$
5,443,979
Total Investments
$ 11,018,182
Restricted & Unrestricted Totals
Total Cash & Short Term
Total Long Term
Total Investments
$
$
$
8.00%
9,998,407
1,019,775
11,018,182
* Restricted Investments consist of:
•
Community generated funds transferred to the RHA and held in the Community Trust Fund (Schedule 3); and
•
Replacement reserves maintained under mortgage agreements with Canada Mortgage and Housing Corporation (CMHC) and/or
Saskatchewan Housing Corporation (an agency of the Department of Community Resources and Employment) (SHC) held in the Capital
Fund (Schedule 4).
January 2007
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Saskatchewan Health
APPENDIX 4
Schedule 3
ABC REGIONAL HEALTH AUTHORITY
SCHEDULE OF CONSOLIDATED EXTERNALLY RESTRICTED FUNDS
For the Year Ended March 31, 2007
COMMUNITY TRUST FUND EQUITY
Trust Name
Deadwood Health Centre
Investment &
Balance
Other
Balance End
Beginning of
Revenue
Donation
Expenses
Withdrawals
of Year
Year
$
63,822 $
3,335 $
- $
(0) $
(0) $
67,157
Big District Centennial Lodge
12,341
Valley Area Trust
Deadwood and District Nursing Home
Total Community Trust Fund
$
171
-
-
-
12,512
95,329
5,269
-
-
-
100,598
726,778
43,004
-
(2,336)
-
767,446
898,270 $
51,779 $
- $
(2,336) $
(0) $
947,713
CAPITAL FUND
Balance
Beginning of Investment & Capital Grant
Year
Other Income
Funding
Transfer to
Investment in
Capital Asset
Fund Balance
Expenses
Balance End
of Year
SHC
Big District Centennial Lodge
$
Golden Arches Home
Other
Total SHC
$
6,003 $
- $
- $
4,512
-
-
-
-
-
- $
- $
10,515 $
(0) $
(0) $
6,003
-
-
4,512
-
-
-
(0) $
(0) $
10,515
-
OTHER
Saskatchewan Pioneer Lodge
$
6,391 $
- $
- $
- $
- $
6,391
Other
-
-
Other
-
-
Total Other
$
6,391 $
- $
- $
Total Capital Fund
$
16,906 $
- $
- $
TOTAL EXTERNALLY
RESTRICTED FUNDS
$ 915,176 $
January 2007
51,779
$
- $
- $
(0) $
(2,336) $
- $
6,391
(0) $
16,906
(0) $ 964,619
48
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 4
Schedule 4
ABC REGIONAL HEALTH AUTHORITY
SCHEDULE OF CONSOLIDATED INTERNALLY RESTRICTED FUND BALANCES
For the Year Ended March 31, 2007
Balance,
beginning of
year
Investment
income
allcoated
Annual
allocation
from
unrestricted
fund
Transfer to
unrestricted
fund
(expenses)
Transfer to
investment in
capital asset
fund balance
Balance,
end of year
Capital
SHC Replacement Reserves
Deadwood and District Nursing
Home
Saskatchewan Pioneer Lodge
Golden Arches Home
Total SHC
Other Internally Restricted Funds
Big District Centennial Lodge
Total Capital
$105,411
148,619
123,358
$377,388
$6,660
8,290
6,610
$21,560
$14,833
12,000
$26,833
$0
333,340
$0
(41,522)
$126,904
168,909
129,968
$425,781
$710,728
$21,560
$26,833
$0
($41,522)
291,818
0
$717,599
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0
$0
Operating
Other Internally Restricted Funds
New Building
asdfasdf
New Building
Total Operating
Total Internally Restricted Funds
$710,728
$21,560
$26,833
$0
($41,522)
$717,599
The RHA is required to maintain certain replacement reserves as a condition of receiving subsidy assistance from
Saskatchewan Housing Corporation. The above schedule shows the changes in these reserve balances during the year.
January 2007
49
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 4
Schedule 5
ABC REGIONAL HEALTH AUTHORITY
CONSOLIDATED SCHEDULES OF
BOARD MEMBER REMUNERATION
for the year ended March 31, 2007
TRAVEL AND
TRAVEL TIME SUSTENANCE
RETAINER PER DIEM
EXPENSES
EXPENSES
RHA MEMBERS
TOTAL
-
-
-
OTHER
EXPENSES
-
CPP
2007
TOTAL
2006
TOTAL
-
-
-
SENIOR MANAGEMENT SALARIES, BENEFITS, ALLOWANCES, AND SEVERANCE
for the year ended March 31, 2007
2007
-
-
-
Salaries1
Senior Employees
John Smith, CEO
Benefits
and
Allowances2
$
-
$
2006
Severance
Amount
Sub-total
$
-
$
Total
-
$
Paul Smith, CFO
Jane Brown, VP
Total
$
-
$
-
$
-
$
-
$
-
Salaries,
Benefits and
Allowances
$
$
-
Severance
$
$
Total
-
$
$
-
(1) Salaries include regular base pay, overtime, honoraria, sick leave, vacation leave and merit or performance pay, lump sum payments, and any other
direct cash remuneration.
(2) Benefits and allowances include the employers share of all employee benefits and contributions. This includes car allowance, education and
training, professional membership fees, other fees, and relocation costs.
Senior Employees include: the CEO; an employee performing senior management functions who reports directly to the regional health authority, or the CEO, or an employee
performing senior management functions who reports directly to the CEO; a person performing senior management functions whose services are engaged on a contract basis or
a fee-for-service basis and who reports directly to any person mentioned above.
Severance is the total severance awarded.
January 2007
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Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 5
Appendix 5: Reports to Submit to Saskatchewan Health
January 2007
51
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 5
ABC REGIONAL HEALTH AUTHORITY
REPORTS TO SUBMIT TO SASKATCHEWAN HEALTH
Please send reports to the following address:
Saskatchewan Health
C/O Planning & Financial Compliance Analyst
RAB, Saskatchewan Health
3rd Floor T.C. Douglas Building
3475 Albert Street
Regina, Saskatchewan
S4S 6X6
Report Name
Date to be Submitted in
2007
Audited Financial Statements & Dept. of Finance
Consolidation Schedules (see page 2 for further details)
May 1
General Revenue Fund Reconciliation
May 1
CEO Salary Reconciliation
May 18
Final Audited Financial Statements
May 18
Health Care Organization Audited Financial
Statements, Internal Control and Legislative
Compliance Opinion for Affiliates, and Extendicare
Audited Financial Information
June 8
Draft Annual Report and final electronic Payee
Disclosure List
June 15
RHA Internal Control Opinion, Appendix 6
June 29
RHA Legislative Compliance Opinion, Appendix 6
June 29
Final Annual Report and Payee Disclosure List (for
tabled version)
July 16
SHC – Audited Financial Statements & Schedules of
Revenue and Expense (to PFC Analyst)
September 3
CMDB Flat File
September 15
Note: RHAs are responsible for gathering and submitting HCO audited financial
statements to the Department of Health.
January 2007
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Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 6
Appendix 6: Audit Reports
January 2007
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Financial Reporting Guide 2006-07
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APPENDIX 6
1. Financial Control Systems Report
Standard wording for the expression of an opinion on an internal control system
To:
[ ___ Regional Health Authority]
I have audited [RHA name]'s control as of [date] to express an opinion as to the effectiveness of its control
related to the following objectives.
•
•
•
To safeguard public resources. That is, to ensure its assets are not lost or used inappropriately; to
ensure it does not inappropriately incur obligations; to establish a financial plan for the purposes of
achieving its financial goals; and to monitor and react to its progress towards the objectives
established in its financial plan.
To prepare reliable financial statements.
To conduct its activities following laws, regulations and policies related to financial reporting,
safeguarding public resources, revenue raising, spending, borrowing, and investing.
I used the control framework developed by The Canadian Institute of Chartered Accountants (CICA) to make
my judgements about the effectiveness of [RHA name]'s control. I did not audit certain aspects of control
concerning the effectiveness, economy, and efficiency of certain management decision-making processes.
The CICA defines control as comprising those elements of an organization that, taken together, support
people in the achievement of the organization’s objectives. Control is effective to the extent that it provides
reasonable assurance that the organization will achieve its objectives.
[RHA name]'s management is responsible for effective control related to the objectives described above. My
responsibility is to express an opinion on the effectiveness of control based on my audit.
I conducted my audit in accordance with standards for assurance engagements established by the CICA.
Those standards require that I plan and perform an audit to obtain reasonable assurance as to effectiveness of
[RHA name]’s control related to the objectives stated above. An audit includes obtaining an understanding of
the significant risks related to these objectives, the key control elements and control activities to manage these
risks and examining, on a test basis, evidence relating to control.
Control can provide only reasonable and not absolute assurance of achieving objectives reliably for the
following reasons. There are inherent limitations in control including judgement in decision-making, human
error, collusion to circumvent control activities and management overriding control. Cost/benefit decisions
are made when designing control in organizations. Because control can be expected to provide only
reasonable assurance and not absolute assurance, the objectives referred to above may not be achieved
reliably. Also, projections of any evaluation of control to future periods are subject to the risk that control
may become ineffective because of changes in internal and external conditions, or that the degree of
compliance with control activities may deteriorate.
In my opinion, based on the limitations noted above, [RHA name]’s control was effective, in all material
respects, to meet the objectives stated above as of [Year-end] based on the CICA criteria of control
framework (except as follows:)
[If control is not effective, describe the risk or weakness, and indicate which objective is affected.
The report should state whether the weaknesses resulted from the absence of control procedures or
the degree of compliance with them.]
Regina, Saskatchewan
[Date]
January 2007
[Name]
[Title]
54
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Saskatchewan Health
APPENDIX 6
2. Compliance with Legislative and Related Authorities Report
Standard wording for the expression of an opinion on compliance with specified authorities.
To: ___ Regional Health Authority
We have made an examination to determine whether [RHA Name] complied with the provisions of
the following legislative and related authorities pertaining to its financial reporting, safeguarding
public resources, spending, revenue raising, borrowing and investing activities during the year
ended [Year End]:
(List all legislative and related authorities covered by this report.)
(The Provincial Auditor’s audit package lists all legislative and related authorities
to be covered by this report.)
Our examination was made in accordance with Canadian generally accepted auditing standards, and
accordingly included such tests and other procedures as we considered necessary in the
circumstances.
In our opinion, the [RHA Name] has complied, in all significant respects, with the provisions of the
aforementioned legislative and related authorities during the year ended [Year End].
(The report should provide adequate explanation with respect to any
reservation contained in the opinion together with, if relevant and
practicable, the monetary effect.)
City, Province
Date
January 2007
Firm Name
55
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Saskatchewan Health
APPENDIX 7
Appendix 7: SHC Reporting Requirements
January 2007
56
Financial Reporting Guide 2006-07
Saskatchewan Health
APPENDIX 7
Continuity
The information in this appendix replaces a memorandum issued by the Department of Health to the
Chief Executive Officers of District Health Boards, on December 14, 1994 (PDF file attached at end
of this appendix).
Transfer of Administrative Responsibility - Social Housing Agreement
The Social Housing Agreement signed by Saskatchewan Housing Corporation (SHC) and Canada
Mortgage and Housing Corporation (CMHC), which took effect January 1, 1997, provided for the
transfer of financial and administrative responsibility of certain housing programs from CMHC to
SHC.
•
Subsidy assistance provided to the sponsors of certain health care facilities (in accordance
with project-specific operating agreements) is now paid monthly by SHC.
•
Sponsors of certain health care facilities obtained long-term mortgage financing from CMHC.
SHC is responsible for administration of the mortgages, on CMHC’s behalf.
•
RHAs and affiliates that continue to operate as separate legal entities are accountable to SHC for
the financial administration of those facilities that receive subsidy assistance from the
Corporation and/or obtained mortgage financing from CMHC. Prior to 1997, the accountability
relationship was with CMHC (for facilities developed under section 26 or 27 of the National
Housing Act, and certain facilities developed under section 95 of the National Housing Act), or
SHC (for other facilities developed under section 95 of the National Housing Act).
SHC Year-End Reporting Requirements
RHAs and affiliates that operate facilities in which SHC or CMHC has a financial interest are
required to submit the following financial reports, to meet terms and conditions of project
operating agreements:
•
a copy of the audited financial statements, which will be submitted by Health directly to
SHC. The statements shall include audited information in regard to replacement reserve
transactions and account balances, as explained below;
•
a Schedule of Revenue and Expenses (Schedule 1) for each facility that receives subsidy
assistance from SHC, or that obtained mortgage financing from CMHC, prepared in
accordance with the template of Schedule 1 in this appendix (applicable to RHAs, only).
Send this schedule to the PFC analyst (Cara Smith) in the Regional Accountability
Branch by September 1, 2007.
The Chief Financial Officer, on behalf of the RHA, should sign Schedule 1 for each facility. If
expenses as reported in Schedule 1 include allocations of costs that are common to two or more
facilities, the basis for allocation should be explained and the expenses allocated should be
identified.
January 2007
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APPENDIX 7
Replacement Reserve Accounts
The subsidy assistance SHC provides in respect of certain health care facilities includes an
allocation that is specifically for use in funding a replacement reserve, as provided for in the
project operating agreement. The main purpose for establishing a replacement reserve is to
provide for replacement of costly building components when required, and to reduce fluctuation
in annual operating requirements resulting from such replacements.
Replacement reserve funds are to be used only for the cost of replacing items of a capital nature, as
listed in Schedule 2, Eligible Replacement Reserve Elements, of this appendix.
Expenses reported on Schedule 1 (for each facility that receives subsidy assistance from SHC)
should include the replacement reserve allocation, and should exclude amounts spent from the
reserve funds during the reporting period.
Audited financial statements for RHAs and affiliates that receive subsidy assistance from SHC
should reference the SHC Replacement Reserves. They must include a note to the financial
statements that provides information showing the continuity of the reserve balances from one fiscal
year-end to the next (i.e., current allocations, interest earned and amounts expended must be
reported in the note).
Unexpended replacement reserve funds are to be held in an interest bearing bank account or
financial instrument(s). Interest earned thereon is to be credited to the replacement reserve account.
RHAs that administer replacement reserve funds in respect of multiple facilities may pool the funds
for investment purposes. However, replacement reserve balances and the transactions affecting the
account balance for each facility must be shown separately in the note to the audited financial
statements.
Schedule 3 of this appendix sets forth the annual replacement reserve allocation for each facility that
has been amalgamated into a RHA structure. Schedule 3 also sets forth the recommended
maximum amount for the accumulated replacement reserve balance for each facility, equal to ten
times the annual allocation.
Annual replacement reserve allocations for each facility are to be at least equal to the previous
year’s allocation, until the recommended maximum amount has accumulated.
Proposed Conversion of, Renovations to, or Demolition of Health Care Facilities
RHAs or affiliates that are considering conversion of, renovations to, or demolition of a facility in
which SHC or CMHC has a financial interest must obtain approval from SHC before proceeding.
A proposal to reduce the number of subsidized (Social Housing) beds/units in a facility could
require a change of the amount of subsidy assistance provided by SHC, or a change to the existing
CMHC mortgage.
RHAs or affiliates that are considering the integration of health care facilities with housing projects
owned by SHC (i.e., properties managed by a local housing authority) should contact Mr. Tim
Gross, Director of Affordable Housing Programs at (306) 787-7311.
January 2007
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APPENDIX 7
Contact Persons at SHC
RHAs and affiliates that have questions relating to facilities in which SHC or CMHC has a
financial interest should contact the following:
Regional Health Authority & affiliates
Sun Country RHA
Five Hills RHA
Cypress RHA
Regina Qu’appelle RHA
Sunrise RHA
Ms. Myrna Mikkonen
Property Administrator, Affordable Housing
6th Floor, 1855 Victoria Avenue
REGINA, Saskatchewan S4P 3V7
Tel. (306) 787-1952 Fax (306) 787-0137
e-mail: mmikkonen@dcre.gov.sk.ca
Regional Health Authority & affiliates
Saskatoon RHA
Heartland RHA
Kelsey Trail RHA
Prince Albert Parkland RHA
Prairie North RHA
Ms. Terri Steen*
Program Administrator, Affordable Housing
9th Floor, 122 3rd Avenue North
SASKATOON, Saskatchewan S7K 2H6
Tel. (306) 933-8463 Fax (306 933-8411
e-mail: tsteen@dcre.gov.sk.ca
Mortgage Administration (all facilities) Ms. Cathy Yasinowski
Manager, Mortgage & Loan Administration
5th Floor, 1855 Victoria Avenue
REGINA, Saskatchewan S4P 3V7
Tel. (306) 787-8743
Fax (306) 787-0137
e-mail: cyasinowski@dcre.gov.sk.ca
* Terri Steen is currently on secondment. Please contact Myrna Mikkonen in her absence.
Appendix 7 CMHC
Reporting.pdf
January 2007
59
Financial Reporting Guide 2006-07
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APPENDIX 7
Schedule 1
Sample (Submit to Health separately, do not include in Financial Statements)
SCHEDULE OF REVENUE AND EXPENSE
Regional Health Authority
Project Name:
SHC Account No.:
Project Location:
Year Ending:
Revenue
$
Department of Health Provincial Funding
Special Care Home Resident Fees
Dietary Recoveries
GST Rebate
Day Program Fees
Rental Income from Rental Units
Subsidy – Saskatchewan Housing Corporation
Other Income (please specify)
-
TOTAL REVENUE
$
-
$
-
Expenses
Property Taxes
Insurance
Utilities
Janitorial Costs
Janitorial Supplies
Janitorial Labour
Grounds Material
Waste/Snow Removal
Housekeeping
$
$
-
-
Maintenance Costs
Building Exterior
Building Interior
Building Labour
Heating/Ventilation/Plumbing
Electrical System Repairs
Elevators
Painting
-
Replacement Reserve Allocation
Administration
(Maximum of 12% of expenses excluding P & I
and health related costs)
Amortization
(Actual principal and interest payments on the mortgage)
Health Related Costs (Salaries, benefits, etc.)
All Resident Care
All Dietary
All Laundry
All Activities and Recreation
Portion of Administration
Portion of Housekeeping
-
-
-
Other Expenses (please specify)
TOTAL EXPENSES
OPERATING SURPLUS/DEFICIT
-
Signature: ___________________________
Chief Financial Officer
Date: ____________________________
January 2007
60
Financial Reporting Guide 2006-07
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APPENDIX 7
Schedule 2
Eligible Replacement Reserve Elements
Roofs
Complete replacement of roof cover (shingles,
tar and felt membrane, etc).
Plumbing and Heating
Replacement of furnace or major heating system
components, boiler, hot water heater, plumbing
fixtures (bathtub, shower, sink, toilet, drain,
stack, pump).
Electrical
Major rewiring, moving/replacement of panels,
replacement of distribution transformer, etc. due
to obsolescence or for safety purposes.
Fire Protection
Sprinkler system replacement, emergency
lighting replacement.
Cooling System
Replacement of major components.
Chimney
Replacement of chimney.
Appliances
Replacement of shelter related fixed equipment,
included in the original capital cost of the
project. Examples are fridges, stoves, washers,
dryers, central vacuum systems, etc.
Floor Covering
Replacement of floor coverings.
Doors
Replacement of exterior doors, frames.
Concrete/Asphalt Drives/Walks/Floors
Replacement
Grounds and Maintenance Equipment
Items that were included in the original capital
cost of the project such as lawn mowers,
tractors, snow blowers, etc.
Windows
Replacement of windows and frames.
Siding
Complete replacement.
Kitchen Cabinets
Complete replacement.
Elevator
Replacement of major components.
PLEASE NOTE – While the above components are recognized as eligible items, good quality and
properly maintained materials could last the life of the structure.
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APPENDIX 7
Schedule 3
CYPRESS REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Gull Lake
Leader
Mankota
Maple Creek
Herbert
Gull Lake & District Special Care (15010130)
Western Senior Citizens Home (15010112)
Prairie View Health Centre (19010105)
Cypress Lodge (15010103)
Herbert Nursing Home (19010079)
TOTALS
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$9,600
$7,644
--$11,450
$10,234
$28,694
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$96,000
$76,440
--$114,500
$102,340
$286,940
FIVE HILLS REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Assiniboia
Central Butte
Moose Jaw
Ross Payant Nursing Home (15020062)
Regency Manor (19010078)
Pioneers Housing Association (15420011)
Pioneers Housing Association (15420132)
TOTALS
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$23,866
$7,650
$12,000
$14,833
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$238,660
$76,500
$120,000
$148,330
$58,349
$583,490
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$4,069
$2,035
$8,789
$9,390
$17,925
--$7,400
$5,637
$14,432
$4,400
$22,488
--$4,800
$5,527
$20,000
$12,425
$7,900
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$40,690
$20,350
$87,890
$93,900
$179,250
--$74,000
$56,370
$144,320
$44,000
$224,880
--$48,000
$55,270
$200,000
$124,250
$79,000
$147,217
$1,472,170
HEARTLAND REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Biggar
Diamond Lodge (15050068)
Diamond Lodge (15050123)
Diamond Lodge (19050053)
Arm River Housing Corp. (15040065)
Prairie View Lodge (19040069)
Dinsmore & District Health Centre (19010095)
Elrose & District Health Centre (82008801)
Jubilee Lodge (15010064)
Jubilee Lodge (19010100)
Buena Vista Lodge (15050118)
Heritage Manor (19010068)
Lucky Lake & District Health Centre (19010101)
Outlook & District Pioneer Home (15070067)
Outlook & District Pioneer Home (19070084)
Rosetown & District Health Centre (15010069)
Unimac Pioneer Lodge (15050076)
Wilkie & District Nursing Home (19050045)
Davidson
Dinsmore
Elrose
Eston
Kerrobert
Kindersley
Lucky Lake
Outlook
Rosetown
Unity
Wilkie
TOTALS
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APPENDIX 7
KELSEY TRAIL REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Arborfield
Carrot River
Hudson Bay
Arborfield Special Care Home (19060076)
Pasquia Special Care Home (15060108)
Hudson Bay Health Care Facility (15060090)
Hudson Bay Health Care Facility (15060105)
Kelvindell Lodge (15040151)
Kelvindell Lodge (19040058)
Nirvana Pioneer Villa (15060125)
Pineview Lodge (15060093)
Pineview Lodge (19060037)
Pineview Lodge (82008802)
Red Deer Nursing Home (15060094)
Red Deer Nursing Home (82009001)
Rose Valley & District Special Care (19060086)
St. Brieux Special Care Home (82009002)
Sasko Park Lodge (15060106)
Tisdale & District Housing Co. Ltd. (19060029)
Kelvington
Melfort
Nipawin
Porcupine Plain
Rose Valley
St. Brieux
Tisdale
TOTALS
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$9,915
$5,800
$1,080
$4,000
$6,183
$1,860
$12,000
$4,822
$3,062
$3,370
--$2,294
--$7,750
$4,320
$18,000
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$99,150
$58,000
$10,800
$40,000
$61,830
$18,600
$120,000
$48,220
$30,620
$33,700
--$22,940
--$77,500
$43,200
$180,000
$104,456
$1,044,560
PRINCE ALBERT PARKLAND REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Big River
Birch Hills
Canwood
Hafford
Kinistino
Lakewood Lodge (19060073)
Birch Hills & District Nursing Home (19060049)
Whispering Pine Place (19060026)
Hafford & District Nursing Home (15050163)
Jubilee Lodge (15060040)
Jubilee Lodge (19060067)
Wheatland Lodge (82008901)
Leoville & District Continuing Care (19050025)
Pineview Terrace (15430041)
Herb Bassett Home (19430048)
Rabbit Lake Integrated Facility (19050088)
Parkland Terrace Special Care (15060152)
Idylwild Senior Citizen Lodge (19050056)
Leask
Leoville
Prince Albert
Rabbit Lake
Shellbrook
Spiritwood
TOTALS
January 2007
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$9,100
$5,075
$8,235
$4,250
$7,755
$17,600
$7,750
--$8,466
$49,740
--$7,707
$10,000
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$91,000
$50,750
$82,350
$42,500
$77,550
$176,000
$77,500
--$84,660
$497,400
--$77,070
$100,000
$135,678
$1,356,780
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APPENDIX 7
PRAIRIE NORTH REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Cutknife
Goodsoil
Lloydminster
Meadow Lake
Cutknife & District Special Care Home (19050094)
L. Gervais Memorial Health Centre (19050093)
Lloydminster & District Senior Lodge (19050072)
Northland Pioneer Lodge (15050100)
Northland Pioneer Lodge (19050091)
River Heights Lodge (15050099)
River Heights Lodge (15050149)
Lakeland Lodge (15050137)
Turtle River Nursing Home (15050147)
North Battleford
St. Walburg
Turtleford
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$9,340
$4,500
$13,000
$8,500
$11,023
$7,170
$8,565
$6,500
$5,400
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$93,400
$45,000
$130,000
$85,000
$110,230
$71,700
$85,650
$65,000
$54,000
$73,998
$739,980
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$10,800
$9,405
$9,980
$22,850
$9,000
$8,503
$3,076
$15,400
$7,750
$7,700
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$108,000
$94,050
$99,800
$228,500
$90,000
$85,030
$30,760
$154,000
$77,500
$77,000
$104,464
$1,044,640
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$5,830
$8,623
--$8,000
$7,926
$7,856
--$13,913
$52,148
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$58,300
$86,230
--$80,000
$79,260
$78,560
--$139,130
$521,480
TOTALS
REGINA QU’APPELLE REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Balcarres
Broadview
Fort Qu’Appelle
Parkland Lodge (15080115)
Broadview & District Centennial Home (19030060)
Echo Lodge (15080048)
Echo Lodge (19080107)
Grenfell & District Pioneer Home (15030032)
Golden Prairie Home (15080109)
Golden Prairie Home (19080083)
Eastern Saskatchewan Pioneer Lodge (15030087)
Raymore & District Special Care Home (82009101)
Whitewood & District Nursing Home (19030077)
Grenfell
Indian Head
Moosomin
Raymore
Whitewood
TOTALS
SASKATOON REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Cudworth
Lanigan
Nokomis
Wadena
Watrous
Watson
Wynyard
Humboldt
Cudworth Nursing Home (15040097)
Central Parkland Lodge (15040122)
Puffer Special Care Home (19040087)
Pleasant View Care Home (82008803)
Manitou Lodge (15040119)
Quill Plains Centennial Lodge (15040078)
Golden Acres (15040081)
St. Mary’s Villa (15040138)
TOTALS
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APPENDIX 7
SUN COUNTRY REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Bengough
Carlyle
Estevan
Fillmore
Gainsborough
Kipling
Lampman
Redvers
Stoughton
Wawota
Weyburn
Bengough Health Centre (15020056)
Moose Mountain Lodge Co. (15020127)
Estevan Regional Nursing Home (15020059)
Fillmore Union Health Centre (19020109)
Gainsborough & Area Health Center (19020106)
Willowdale Lodge Care Home (15020088)
Lampman Community Health Centre (19020096)
Redvers Centennial Haven (15020058)
Newhope Pioneer Lodge (19020082)
Wawota & District Special Care Home (19020080)
Weyburn & District Special Care Home (15020055)
Weyburn & District Special Care Home (19020064)
TOTALS
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$6,540
$8,235
$15,500
----$6,500
--$6,000
$10,000
$7,745
$23,728
$21,240
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$65,400
$82,350
$155,000
----$65,000
--$60,000
$100,000
$77,450
$237,280
$212,400
$105,488
$1,054,880
ANNUAL
REPLACEMENT
RESERVE
ALLOCATION
REQUIREMENT
$14,254
$5,406
$13,000
$6,067
$11,590
$5,573
$6,000
$6,000
$5,600
$14,596
$10,288
$3,355
$6,000
$6,000
$7,500
$9,300
$9,300
$8,000
--$21,504
$13,011
TOTAL
REPLACEMENT
RESERVE
REQUIREMENT
$142,540
$54,060
$130,000
$60,670
$115,900
$55,730
$60,000
$60,000
$56,000
$145,960
$102,880
$33,550
$60,000
$60,000
$75,000
$93,000
$93,000
$80,000
--$215,040
$130,110
$191,992
$1,919,920
SUNRISE REGIONAL HEALTH AUTHORITY
LOCATION
FACILITY NAME &
SHC ACCOUNT NUMBER
Canora
Gateway Lodge (15030104)
Gateway Lodge (19030039)
Centennial Special Care Home (15030085)
Centennial Special Care Home (19030110)
Jubilee Home (15030080)
Jubilee Home (19030099)
Gateway Lodge (19030021)
Gateway Lodge (19030041)
Ituna & District Pioneer Lodge (15030116)
Kamsack Nursing Home (19030032)
Centennial Special Care Home (15030128)
Centennial Special Care Home (19030097)
Gateway Lodge (19030020)
Gateway Lodge (19030040)
Preeceville Lions Housing (15030077)
Preeceville Lions Housing (15030079)
Preeceville Lions Housing (19030061)
Lakeside Manor Care Home (19030098)
Heritage Special Care Home (19030027)
Yorkton & District Nursing Home (15030082)
Yorkton & District Nursing Home (19030019)
Esterhazy
Foam Lake
Invermay
Ituna
Kamsack
Langenburg
Norquay
Preeceville
Saltcoats
Theodore
Yorkton
TOTALS
January 2007
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APPENDIX 8
Appendix 8: Related Party Listing
January 2007
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APPENDIX 8
Departments and Secretariats
Department of Community Resources and Employment
Department of Corrections and Public Safety
Department of Culture, Youth and Recreation
Department of Environment
Department of Finance
Department of Government Relations and Aboriginal Affairs
Department of Health
Department of Justice
Department of Learning
Department of Property Management
Northern Affairs
Colleges and Universities
Carlton Trail Regional College
Cumberland Regional College
Cypress Hills Regional College
North West Regional College
Northlands College
Parkland Regional College
Prairie West Regional College
Southeast Regional College
University of Regina
University of Saskatchewan
CIC Crown Corporation, Other Crown Corporations, and Other Crown Agencies
Crown Investments Corporation of Saskatchewan
Health Quality Council
Public Employees Pension Plan
Public Service Superannuation Board
SAHO Core Dental Plan
SAHO Disability Income Plans
SAHO Enhanced Dental Plans
SAHO Extended Health Care Plans
SAHO Group Life Insurance Plan
Saskatchewan Association of Health Organizations
Saskatchewan Cancer Foundation
Saskatchewan Health Information Network Corporation (Saskatchewan Health Information
Solutions Centre)
Saskatchewan Health Employees Pension Plan (SHEPP)
Saskatchewan Health Research Foundation
Saskatchewan Housing Corporation & controlled Housing Authorities
Saskatchewan Liquor and Gaming Authority
Saskatchewan Power Corporation
Saskatchewan Telecommunications (includes SaskTel Mobility)
Saskatchewan Transportation Company
SaskEnergy Incorporated
SGI Canada Insurance Services Ltd.
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APPENDIX 8
St. Louis Alcoholism Rehabilitation Centre
Uranium City Hospital, Board of Governors
Workers' Compensation Board
Special Purpose and Trust Funds
Public Employees Deferred Salary Leave Fund
Public Employees Dental Fund
Public Employees Disability Income Fund
Public Employees Group Life Insurance Fund
Public Guardian and Trustee of Saskatchewan
Other Organizations
Athabasca Health Authority
Designated Health Affiliates & Health Care Organizations
Regional Health Authorities
The above-related party listing is not a comprehensive list; therefore, if there are transactions with
other government agencies not specifically listed above also include them.
January 2007
68