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105 Kativik Regional Government 2018.Xlsm Kativik Regional Government Annual Report December 31, 2018 Kativik Regional Government Annual Report December 31, 2018 Synopsis Review I Financial Statements II Notes to Financial Statements III Appendices IV Kativik Regional Government Synopsis Review December 31, 2018 TABLE OF CONTENTS Revenue – Block Funding (Secrétariat aux affaires autochtones) 1 Accumulated Operating Surplus – Block Funding 2 Total Contributions – Block Funding 2004-2018 3 Accumulated Operating Surplus (Deficit) by Department Excluding Block Funding as at December 31, 2018 4 Accumulated Operating Surplus Excluding Block Funding 5 Net Accumulated Financial Reserves 6 Sources of Revenue 2018 7 Expenditure 2018 8 $ $ 10,000,000 $ 20,000,000 $ 30,000,000 $ 40,000,000 $ 50,000,000 $ 60,000,000 $ 70,000,000 $ $ 0 2014 $ 56,714,178 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 GOVERNMENT REGIONAL SYNOPSIS REVIEW - KATIVIK 2015 (Secrétariat aux affaires autochtones) affairesaux (Secrétariat $ 67,854,464 Revenue -Revenue Funding Block 2016 $ 63,229,344 2017 $ 67,431,446 2018 $ 69,721,513 Page 1 $ $ 10,000,000 $ 12,000,000 $ $ 2,000,000 $ 4,000,000 $ 6,000,000 $ 8,000,000 $ $ 0 2014 $ 7,358,132 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 GOVERNMENT REGIONAL SYNOPSIS REVIEW - KATIVIK Accumulated Operating Surplus -Surplus Operating Accumulated Funding Block 2015 $ 7,705,226 2016 $ 5,420,431 2017 $ 8,573,150 2018 $ 11,805,523 Page 2 Total Contributions - Block Funding 2004-2018 1.2% 2.3% 3.8% 4.9% 27.9% 5.9% 7.6% 11.3% 22.1% 13.0% Child Care Programs (27.9%) Transportation (22.1%) Municipal Affairs (13.0%) Renewable Resources (11.3%) Sustainable Employment (7.6%) Regional and Local Development (5.9%) Financial Reserves (4.9%) Public Security (3.8%) Recreation (2.3%) Other Programs (1.2%) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 Page 3 ($3,500,000) ($2,500,000) ($1,500,000) $ 1,500,000 $ 2,500,000 $ ($500,000) $ 500,000 $ Accumulated Operating Surplus (Deficit) by Department Excluding Block Funding as at asFunding Block Excludingby Department (Deficit) Surplus Operating Accumulated $ 722,635 ($ 419,392) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 GOVERNMENT REGIONAL SYNOPSIS REVIEW - KATIVIK ($ 680,000) December 201831, December $ 1,968,506 $ 1,669,318 ($ 10,169) $ 15,613 $ 492,710 $ 1,720,423 Page 4 $ 10,000,000 $ 12,000,000 $ $ 2,000,000$ 4,000,000$ 6,000,000$ 8,000,000$ $ 0 $ 2014 $ 10,795,934 Accumulated Operating Surplus Excluding Block Funding Block ExcludingSurplus Operating Accumulated KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 GOVERNMENT REGIONAL SYNOPSIS REVIEW - KATIVIK 2015 $ 9,737,939 2016 $ 7,468,775 2017 $ 4,357,540 2018 $ 5,479,644 Page 5 Voir onglet P7 pour celle-ci pour P7 Voir onglet $ 30,000,000 $ 35,000,000 $ 40,000,000 $ $ 10,000,000 $ 15,000,000 $ 20,000,000 $ 25,000,000 $ $ 5,000,000 $ $ 0 $ 2014 $ 30,213,912 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 GOVERNMENT REGIONAL SYNOPSIS REVIEW - KATIVIK 2015 Net Accumulated Financial Reserves FinancialAccumulated Net $ 32,437,877 2016 $ 21,513,699 2017 $ 34,434,874 2018 $ 35,370,713 Page 6 Secrétariat aux affaires autochtones (52.32%) Sources of revenue 2018 $92,321,535 Ministère de la Sécurité publique (8.37%) Employment and Social $14,725,679 Development Canada (ESDC) (9.14%) $16,121,439 Ministère de l'Énergie et des Ressources naturelles (4.96%) $8,757,658 Public Safety Canada (6.86%) $12,098,130 Ministère des Affaires municipales et de l'Habitation (2.35%) $4,146,717 9.45% Ministère des Transports (0.48%) $851,182 Aboriginal Affairs and Northern Affairs Canada (0.65%) $1,145,971 18.15% Sanarrutiik Amendment #3 - Ungaluk (0.34%) $596,495 Health Canada (0.77%) $1,366,607 Emploi-Québec (1.07%) $1,889,749 72.40% Ministère de la Justice (0.57%) $999,274 Transport Canada (0.46%) $807,542 Ministère de l'Éducation et de l'Enseignement Operating Provincial Funding $127,754,055 supérieur (0.30%) $521,077 Operating Federal Funding $32,019,689 Department of Fisheries and Oceans Canada (DFO) Société d'habitation du Québec (0.13%) (0.27%) $480,000 Other Operating Funding $16,682,869 $226,896 Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques Operating revenue $ 176,456,613 (0.84%) $1,480,963 Infrastructure revenue $ 18,441,461 Other provincial contributions (0.67%) $1,236,830 Total revenue $ 194,898,074 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 Page 7 Expenditure 2018 1.1% 3.5% 2.2% 1.1% 14.8% 3.8% 8.7% 12.4% 5.8% 5.1% 12.0% 7.3% 6.1% 9.7% 6.4% Child Care Programs (14.8%) Public Security (12.4%) Sustainable Employment (12.0%) Transportation (9.7%) Municipal Affairs (6.4%) Renewable Resources (6.1%) General Administration (7.3%) Building and Housing Operation (5.1%) Inuit Support Program for Hunting, Fishing and Trapping Activities (5.8%) Nunavik Cost of Living Reduction (8.7%) Sanarrutik Agreement (3.8%) Tamaani Internet Services (3.5%) Regional and Local Development (2.2%) Recreation (1.1%) Other Programs (1.1%) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2018 Page 8 Kativik Regional Government Financial Statements December 31, 2018 TABLE OF CONTENTS Independent Auditor's Report 1 Financial Statements Statement of Financial Position 4 Statement of Variation of Net Financial Assets (Net Debt) 5 Statement of Accumulated Operating Surplus (Deficit) 6 Statement of Financial Reserves and Reserved Funds 7 Statement of Surplus (Deficit) for the Year 8 Operating Surplus (Deficit) for the Year for Fiscal Purposes 10 Investing Surplus (Deficit) for the Year for Fiscal Purposes 11 Cash Flow Statement 12 êm8 nÙ5 fÇ8 gx3b8 Independent Auditor's Report P.O. Box 639 Kuujjuaq, Quebec J0M 1C0 T 819-964-5353 F 819-964-4833 êm8 nÙ5 fÇ8 gx3b8 Suite 2000 National Bank Tower 600 De La Gauchetière Street West To the Members of the Council of Montréal, Quebec H3B 4L8 Kativik Regional Government T 514-878-2691 F 514-878-2127 Opinion We have audited the financial statements of Kativik Regional Government (hereafter "the KRG"), which comprise the statement of financial position as at December 31, 2018, and the statement of surplus (deficit) for the year, the statement of variation of net financial assets (net debt), the statement of financial reserves and reserved funds and the cash flow statement for the year then ended, and notes to financial statements including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the KRG as at December 31, 2018, and the results of its operations, the variation in its net financial assets (debt) and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the KRG in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter – Financial information established for fiscal purposes We draw attention to the fact that the KRG includes certain information in its financial statements that is not required under Canadian public sector accounting standards. This information, prepared in accordance with the model prescribed by the Ministère des Affaires municipales et de l’Habitation (MAMH) Member of Grant Thornton International Ltd rcgt.com 2 and presented on pages 6, 10 and 11, relates to the determination of the surplus (deficit) for the year for fiscal purposes. Our opinion is not modified in respect of this matter. Responsibilities of management and those charged with governance for the financial statements Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the KRG’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the KRG or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the KRG's financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: – Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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