2016-17-Saskatoon Health Region Annual Report

128 Pages·2017·0.62 MB·English

Appendices to Annual Report
•
Auditor’s Report
•
Financial Statements
•
Transfer List
•
Supplier List
•
Employee Earnings

Saskatoon Health Region Annual Report 2016-2017 33
Auditor’s Report & Financial Statements

Consolidated Financial Statements of

SASKATOON REGIONAL HEALTH
AUTHORITY

Year ended March 31, 2017

Saskatoon Health Region Annual Report 2016-2017 34
KPMG LLP
500-475 2nd Avenue South
Saskatoon Saskatchewan S7K
1P4 Canada
Tel [phone]
Fax [phone]
INDEPENDENT AUDITORS' REPORT

To the Authority Members

We have audited the accompanying consolidated financial statements of Saskatoon Regional Health
Authority, which comprise the consolidated statement of financial position as at March 31, 2017,
consolidated statements of operations, consolidated statement of remeasurement gains and losses,
consolidated statement of changes in fund balances and consolidated statement of cash flows for the year
then ended, and notes, comprising a summary of significant accounting policies and other explanatory
information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Canadian public sector accounting standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on our judgment, including the
assessment of the risks of material misstatement of consolidated financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of consolidated financial statements.

We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a
basis for our audit opinion.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG Canada provides services to KPMG
LLP.

Saskatoon Health Region Annual Report 2016-2017 35
Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the
consolidated financial position of Saskatoon Regional Health Authority as at March 31, 2017, its
consolidated results of operations, its consolidated remeasurement gains and losses, its consolidated
changes in fund balances and its consolidated cash flows for the year then ended, in accordance with
Canadian public sector accounting standards.

Chartered Professional Accountants

May 17, 2017
Saskatoon, Canada

Saskatoon Health Region Annual Report 2016-2017 36
Statement 1
SASKATOON REGIONAL HEALTH AUTHORITY
Consolidated Statement of Financial Position
(in thousands of dollars)
March 31, 2017, with comparative information for 2016
Operating Restricted Total Total
Fund Fund 2017 2016
(note 19)
Assets
Current assets:
Cash and cash equivalents
(schedule 2) $ 7,966 $ 47,603 $ 55,569 $ 51,027
Short-term investments
(schedule 2) - 21,514 21,514 66,473
Accounts receivable: -
Ministry of Health 3,063 23 3,086 8,343
Other 18,109 1,421 19,530 19,645
Inventory 11,589 - 11,589 10,823
Prepaid expenses 4,590 - 4,590 5,274
45,317 70,561 115,878 161,585
Investments (schedule 2) - - - 21,521
Capital assets (note 3) - 446,677 446,677 363,905
$ 45,317 $ 517,238 $ 562,555 $ 547,011
Liabilities and Fund Balances
Current liabilities:
Accounts payable and accrued
liabilities $ 65,232 $ 11,329 $ 76,561 $ 62,401
Accrued salaries 29,818 - 29,818 34,833
Vacation payable 56,491 - 56,491 55,940
Long-term debt - current
(note 6) - 10,836 10,836 17,334
Deferred revenue (note 7) 14,997 - 14,997 11,320
166,538 22,165 188,703 181,828
Long-term debt (note 6) - 39,606 39,606 29,152
Employee future benefits (note 11(c)) 28,101 28,101 27,311
194,639 61,771 256,410 238,291
Fund balances:
Invested in capital assets - 396,235 396,235 317,419
Externally restricted (schedule 3) - 60,692 60,692 146,445
Internally restricted (schedule 4) - 84 84 84
Unrestricted (deficit) (149,322) - (149,322) (152,587)
Fund balances (statement 4) (149,322) 457,011 307,689 311,361
Accumulated remeasurement gains (losses)
(statement 3) - (1,544) (1,544) (2,641)
$ 45,317 $ 517,238 $ 562,555 $ 547,011
Contractual obligations (note 4)
Contingencies (note 5)

Saskatoon Health Region Annual Report 2016-2017 37
Statement 2
SASKATOON REGIONAL HEALTH AUTHORITY
Consolidated Statement of Operations
(in thousands of dollars)

Year ended March 31, 2017, with comparative information for 2016

Operating Fund Restricted Fund
Budget Total Total
2017 2017 2017 2017 2016
(note 12) (note 19)
Revenue:
Ministry of Health $ 1,121,860 $ 1,161,278 $ 18,752 $ 1,180,030 $ 1,127,416
Other provincial 12,510 22,014 3,155 25,169 20,776
Federal government 1,011 1,304 - 1,304 1,019
Patient and client fees 14,896 15,073 - 15,073 14,714
Out of province (reciprocal) 9,866 9,231 - 9,231 9,871
Out of country 1,905 2,880 - 2,880 1,908
Donations - - 5,833 5,833 7,492
Ancillary 19,818 19,009 - 19,009 17,749
Recoveries 21,182 34,518 - 34,518 25,825
Investment income - - 1,374 1,374 2,539
Other 3,736 3,218 4,526 7,744 7,477
Total revenues 1,206,784 1,268,525 33,640 1,302,165 1,236,786
Expenses:
Inpatient and resident services
Nursing administration 10,419 11,771 - 11,771 10,663
Acute 265,891 284,250 - 284,250 281,897
Supportive 149,934 152,477 - 152,477 152,735
Integrated rehabilitation 5,122 5,491 - 5,491 5,278
Mental health and addictions 11,701 12,438 - 12,438 13,280
Total inpatient and resident services 443,067 466,427 - 466,427 463,853
Physician compensation 117,779 133,996 - 133,996 118,459
Ambulatory care services 93,165 101,242 - 101,242 93,650
Diagnostic and therapeutic services 159,395 165,963 - 165,963 162,576
Community health services
Primary health care 4,618 4,497 - 4,497 4,682
Home care 50,967 50,174 - 50,174 53,225
Mental health and addictions 38,607 38,743 - 38,743 39,441
Population health 29,808 29,866 - 29,866 29,619
Emergency response services 20,819 21,913 - 21,913 22,335
Other community services 9,248 8,328 - 8,328 8,424
Total community health services 154,067 153,521 - 153,521 157,726

Support services
Employee future benefits 230 790 - 790 238
Program support 64,756 67,280 41,592 108,872 113,900
Operational support 151,765 156,204 - 156,204 155,075
Other support 8,577 2,999 - 2,999 3,967
Total support services 225,328 227,273 41,592 268,865 273,180
Ancillary 13,983 15,823 - 15,823 13,558
Total expenses (schedule 1) 1,206,784 1,264,245 41,592 1,305,837 1,283,002
Excess (deficiency) of revenue
over expenses $ - $ 4,280 $ (7,952) $ (3,672) $ (46,216)

The accompanying notes and schedules are part of these consolidated financial statements.

Saskatoon Health Region Annual Report 2016-2017 38
Statement 3
SASKATOON REGIONAL HEALTH AUTHORITY
Consolidated Statement of Remeasurement Gains (Losses)
(in thousands of dollars)

Year ended March 31, 2017, with comparative information for 2016
2017 2016
(note 19)
Accumulated remeasurement gains (losses), beginning of year $ (2,641) $ -
Unrealized gains (losses) attibuted to:
Interest rate swap (note 6) 1,097 (2,641)
Net remeasurement gain (loss) for the year $ 1,097 $ (2,641)
Accumulated remeasurement gains (losses), end of year $ (1,544) $ (2,641)

The accompanying notes and schedules are part of these consolidated financial statements.

Saskatoon Health Region Annual Report 2016-2017 39
Statement 4
SASKATOON REGIONAL HEALTH AUTHORITY
Consolidated Statement of Changes in Fund Balances
(in thousands of dollars)

Year ended March 31, 2017, with comparative information for 2016
Operating Fund Restricted Fund Total Operating Fund Restricted Fund Total
2017 2016
(note 19)
Fund balances, beginning of year $ (152,587) $ 463,948 $ 311,361 $ (116,121) $ 473,698 $ 357,577
Excess (deficiency) of revenue over
expenses 4,280 (7,952) (3,672) (35,663) (10,553) (46,216)
Interfund transfers (note 13) (1,015) 1,015 - (803) 803 -
Fund balances, end of year $ (149,322) $ 457,011 $ 307,689 $ (152,587) $ 463,948 $ 311,361

The accompanying notes and schedules are part of these consolidated financial statements.

Saskatoon Health Region Annual Report 2016-2017 40
Statement 5
SASKATOON REGIONAL HEALTH AUTHORITY
Consolidated Statement of Cash Flows
(in thousands of dollars)

Year ended March 31, 2017, with comparative figures for 2016
Operating Fund Restricted Fund
2017 2016 2017 2016
(note 19) (note 19)
Cash provided by (used in):
Operating activities:
Excess (deficiency) of
revenue over expenses $ 4,280 $ (35,663) $ (7,952) $ (10,553)
Net change in non-cash
working capital (note 8) 19,536 8,387 (83) 8,862
Amortization of capital assets - - 37,546 36,799
Investment premium/discounts - - (120) 273
Fair value adjustments on derivatives - - 1,097 (2,641)
23,816 (27,276) 30,488 32,740
Capital activities:
Purchase of capital assets
Land and land improvements - - (138) (768)
Building/construction - - (106,331) (51,637)
Equipment - - (12,813) (15,834)
Equipment under capital lease - - (1,036) (968)
- - (120,318) (69,207)
Investing activities:
Proceeds of investments (net) - - 66,600 33,430
- - 66,600 33,430
Financing activities:
Repayment of long-term debt - - (1,837) (699)
Proceeds from revolving credit
facilities - - 5,900 10,000
Increase in capital leases - - 1,036 968
Repayment of capital leases - - (1,143) (1,164)
Due to (from) other funds (15,485) 15,485 15,485 (15,485)
(15,485) 15,485 19,441 (6,380)
Net increase (decrease) in cash and cash
equivalents during the year 8,331 (11,791) (3,789) (9,417)
Cash and cash equivalents,
beginning of year 650 13,244 50,377 58,991
Interfund transfers (note 13) (1,015) (803) 1,015 803
Cash and cash equivalents, end of year
(schedule 2) $ 7,966 $ 650 $ 47,603 $ 50,377

The accompanying notes and schedules are part of these consolidated statements.

Saskatoon Health Region Annual Report 2016-2017 41
SASKATOON REGIONAL HEALTH AUTHORITY
Notes to Consolidated Financial Statements
(in thousands of dollars)

Year ended March 31, 2017

1. Legislative authority
The Saskatoon Regional Health Authority (SRHA) operates under The Regional Health Services Act (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 Saskatoon Health Region, under section 27 of The Act.
The SRHA is a not-for-profit organization and is not subject to income and property taxes from the federal,
provincial and municipal levels of government. The SRHA is a registered charity under the Income Tax Act
of Canada.
2. Significant accounting policies
These consolidated financial statements have been prepared in accordance with Canadian public sector
accounting (PSA) standards, issued by the Public Sector Accounting Board and published by CPA Canada.
SRHA has adopted the standards for government not-for-profit organizations, set forth at PSA Handbook
sections PS 4200 to PS 4270.
(a) Health care organizations
i) SRHA has entered into a joint service management partnership with one of its affiliates, St. Paul's
Hospital (Grey Nuns) of Saskatoon ("St. Paul's"). St. Paul’s is incorporated and is a registered
charity under the Income Tax Act of Canada. By agreement, SRHA and St. Paul's were each given
responsibility for the management of designated service lines and support services. As a result of
this relationship, the financial statements of St. Paul's have been consolidated with the financial
statements of SRHA. Transactions and inter-organization balances between SRHA and St. Paul’s
are eliminated. The agreement with St. Paul’s expires June 30, 2025.

ii) In addition to St. Paul's, SRHA has entered into affiliation agreements with the following health care
organizations (HCOs):
Bethany Pioneer Village Inc. Sherbrooke Community Society Inc.
Circle Drive Special Care Home Inc. (Central Haven Special Care Home)
Duck Lake and District Nursing Home Inc. Sherbrooke Community Society Inc.
Jubilee Residences Inc. (Stensrud Lodge) (Sherbrooke Community Centre)
Jubilee Residences Inc. (Porteous Lodge) Spruce Manor Special Care Home Inc.
Lakeview Pioneer Lodge Inc. St. Ann's Senior Citizens Village Corporation
Luther Care Communities (Lutheran St. Joseph's Home for the Aged
Sunset Home) Strasbourg and District Health Centre
Mennonite Nursing Home Inc. Sunnyside Adventist Care Centre
Oliver Lodge Warman Mennonite Special Care Home Inc.
Saskatoon Convalescent Home

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