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2016-17-Saskatoon Health Region Annual Report

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2016-17-Saskatoon Health Region Annual Report 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 (306) 934-6200 Fax (306) 934-6233 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
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