Kativik Regional Government Annual Report December 31, 2014 Kativik Regional Government Annual Report December 31, 2014
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Kativik Regional Government Annual Report December 31, 2014 Kativik Regional Government Annual Report December 31, 2014 Synopsis Review I Consolidated Financial Statements II Notes to Consolidated Financial Statements III Appendices IV Kativik Regional Government Synopsis Review December 31, 2014 TABLE OF CONTENTS Revenue - Block Funding (Secrétariat aux affaires autochtones) 1 Accumulated Operating Surplus - Block Funding 2 Total Contributions - Block Funding 2004-2014 3 Accumulated Operating Surplus (Deficit) by Department Excluding Block Funding as at December 31, 2014 4 Accumulated Operating Surplus Excluding Block Funding 5 Net Accumulated Financial Reserves 6 Sources of Revenue 2014 7 Expenditure 2014 8 Revenue - Block Funding (Secrétariat aux Affaires Autochtones) $ 60,000,000 $ 50,000,000 $ 40,000,000 $56,714,178 $53,916,203 $ 30,000,000 $50,334,998 $49,816,602 $45,854,644 $ 20,000,000 $ 10,000,000 $ 0 2010 2011 2012 2013 2014 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 1 Accumulated Operating Surplus - Block Funding $ 12,000,000 $ 10,000,000 $ 8,000,000 $11,801,203 $11,801,203 $ 6,000,000 $11,041,750 $9,996,807 $9,675,570 $ 4,000,000 $7,358,132 $ 2,000,000 $ 0 2010 2011 2012 2013 2014 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 2 Total Contributions - Block Funding 2004-2014 3.8% 2.0% 1.3% 4.4% 6.4% 28.1% 7.5% 10.7% 21.8% 14.0% Child Care Programs (28.1%) Transportation (21.8%) Municipal Affairs (14.0%) Renewable Resources (10.7%) Sustainable Employment (7.5%) Regional and Local Development (6.4%) Financial Reserves (4.4%) Public Security (3.8%) Recreation (2.0%) Other Programs (1.3%) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 3 Accumulated Operating Surplus (Deficit) by Department Excluding Block Funding as at December 31, 2014 $ 6,000,000 $ 5,000,000 $ 4,000,000 $ 3,000,000 $2,105,035 $1,743,736 $1,743,736 $1,194,843 $5,505,048 $5,505,048 $ 2,000,000 $924,594 $259,778 $259,778 $36,427 $36,427 $(1,086,404) $ 1,000,000 $90,082 $22,795 $22,795 $ 0 ($ 1,000,000) ($ 2,000,000) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 4 Accumulated Operating Surplus Excluding Block Funding $14,000,000 $12,000,000 $10,000,000 $8,000,000 $12,766,358 $12,748,802 $6,000,000 $11,975,829 $11,975,829 $10,795,934 $4,000,000 $10,162,510 $2,000,000 $0 2010 2011 2012 2013 2014 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 5 Net Accumulated Financial Reserves $35,000,000 $30,000,000 $25,000,000 $20,000,000 $30,213,912 $15,000,000 $10,000,000 $19,435,912 $14,472,360 $5,000,000 $13,115,964 $11,081,142 $11,081,142 $0 2010 2011 2012 2013 2014 KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 6 Secrétariat aux affaires autochtones (49.23%) $73,477,806 Employment and Social Development Canada Ministère de la Sécurité (ESDC) (10.20%) publique (7.42%) $15,229,794 Sources of revenue 2014 $11,081,212 Public Safety Canada Ministère des Ressources naturelles (5.09%) (6.10%) $9,101,041 $7,593,694 Ministère Affaires municipales et de l'Occupation du territoire Aboriginal Affairs and (2.79%) $4,177,406 Northern Affairs Canada (0.85%) $1,267,140 Ministère des Transports (2.38%) $3,546,397 10.96% National Health and Sanarrutiik Amendment #3 - Welfare (0.49%) Ungaluk (1.63%) $2,439,867 $734,607 Emploi-Québec (0.66%) $986,434 Transport Canada (0.38%) $566,747 18.41% Ministère de la justice (0.64%) $948,562 Department of Fisheries Tourisme Québec (0.41%) and Oceans Canada $606,667 (DFO) (0.32%) $473,355 Other provincial 70.63% contributions (0.32%) Other Federal $471,446 Contributions (0.07%) Operating Provincial Funding $105,412,584 $110,697 Ministère Éducation, du Operating Federal Funding $27,483,381 Loisir et du Sport (0.29%) $439,049 Other Operating Funding $16,365,897 Ministère de la Santé et des Services Sociaux (0.25%) $367,363 Société d'Habitation du Québec (0.11%) $159,606 Operating revenue: $ 149,261,862 Infrastructure revenue $ 32,241,861 Ministère du Développement durable, de l'Environnement, Total Revenue $ 181,503,723 de la Faune et des Parcs (-0.59%) $(882,925) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 7 Expenditure 2014 2.6% 1.5% 1.6% 2.9% 16.0% 4.0% 4.9% 5.6% 12.4% 5.7% 6.7% 12.2% 7.3% 8.0% 8.6% Child Care Programs (16.0%) Public Security (12.4%) Sustainable Employment (12.2%) Transportation (8.6%) Municipal Affairs (8.0%) Renewable Resources (7.3%) General Administration (6.7%) Building and Housing Operation (5.7%) Inuit Support Program for Hunting, Fishing and Trapping Activities (5.6%) Nunavik Cost of Living Reduction (4.9%) Sanarutiik Agreement (4.0%) Tamaani Internet Services (2.9%) Regional and Local Development (2.6%) Recreation (1.5%) Other Programs (1.6%) KATIVIK REGIONAL GOVERNMENT - SYNOPSIS REVIEW 2014 Page 8 Kativik Regional Government Consolidated Financial Statements December 31, 2014 TABLE OF CONTENTS Independent Auditor's Report 1 Consolidated Financial Statements Consolidated Statement of Financial Position 3 Consolidated Statement of Variation of Net Financial Assets (Net Debt) 4 Consolidated Statement of Accumulated Operating Surplus (Deficit) 5 Consolidated Statement of Financial Reserves and Reserved Funds 6 Consolidated Statement of Surplus (Deficit) for the Year 7 Operating Surplus (Deficit) for the Year for Fiscal Purposes 9 Investing Surplus (Deficit) for the Year for Fiscal Purposes 10 Consolidated Cash Flow Statement 11 êm8 nÙ5 fÇ8 gx3b8 P.O. Box 639 Kuujjuaq, Quebec J0M 1C0 Telephone: 819-964-5353 Fax: 819-964-4833 Independent Auditor's Report êm8 nÙ5 fÇ8 gx3b8 Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Quebec H3B 4L8 To the Members of the Council of Telephone: 514-878-2691 Fax: 514-878-2127 Kativik Regional Government www.rcgt.com We have audited the accompanying consolidated financial statements of Kativik Regional Government, which comprise the consolidated statement of financial position as at December 31, 2014 and the consolidated statement of variation of net financial assets (net debt), the consolidated statement of accumulated operating surplus (deficit), the consolidated statement of financial reserves and reserved funds, the consolidated statement of surplus (deficit) for the year and the consolidated cash flow statement for the year then ended, and 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. Auditor’s 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 the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the 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 Member of Grant Thornton International Ltd 2 reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Kativik Regional Government as at December 31, 2014 and the results of its operations, the variation of its net financial assets (net debt) and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Emphasis of matter Without modifying our opinion, we draw attention to the fact that Kativik Regional Government includes certain information in its consolidated 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’Occupation du territoire, is presented on pages 9 and 10 and relates to the determination of the surplus (deficit) for the year for fiscal purposes. Montréal April 23, 2015 1 CPA auditor, CA public accountancy permit no. A121667 3 Kativik Regional Government Consolidated Statement of Financial Position December 31, 2014 2014 2013 $ $ FINANCIAL ASSETS Cash (note 6) 21,662,381 23,904,650 Term deposits, maturing in 2015, bearing interest at rates varying from 0.87% to 1.57% 14,389,698 14,393,784