RHD Financials Statements 2020 Final.Xlsx
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Powell River Regional Hospital District Financial Statements For the year ended December 31, 2020 Powell River Regional Hospital District Financial Statements For the year ended December 31, 2020 Contents Management's Responsibility for the Financial Statements Independent Auditor's Report Financial Statements Statement of Financial Position 1 Statement of Operations 2 Statements of Changes in Net Debt 3 Statement of Cash Flows 4 Summary of Significant Accounting Policies 5 - 6 Notes to Financial Statements 7 - 8 Schedules Schedule I - Tangible Capital Assets Continuity 9 Powell River Regional Hospital District Financial Statements For the year ended December 31, 2020 Management's Responsibility for the Financial Statements The accompanying financial statements of the Powell River Regional Hospital District have been prepared in accordance with the Candian public sector accounting standards and are outlined under significant accounting policies in the notes to the financial statements. Management is responsible for the integrity and objectivity of these statements as well as the supplementary schedules. The preparation of financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. Management maintains a system of internal controls to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. Management also maintains a program of proper business compliance. These systems are regularly monitored and evaluated by management. The Board of Directors is responsible for reviewing and approving the financial statements and for ensuring that management fulfils its responsibility for financial reporting and internal control. The financial statements have been audited by MNP, independent external auditors appointed by the Powell River Regional Hospital District. The accompanying independent Auditor's Report oulines their responsibilities, the scope of their examination and their opinion on the Powell River Regional Hospital District's financial statements. Chief Administrative Officer Manager of Financial Services LLP - NANAIMO - 345 WALLACE STREET Independent Auditor's Report To the Board of Directors of Powell River Regional Hospital District: Opinion We have audited the financial statements of the Powell River Regional Hospital District (the "Hospital District"), which comprise the statement of financial position as at December 31, 2020, and the statements of operations, changes in net debt and cash flows for the year then ended, and notes to the 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 Hospital District as at December 31, 2020, and the results of its operations 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 Hospital District 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. 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 Hospital District’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 Hospital District or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Hospital District’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. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit 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 Hospital District’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 400, MNP PLACE, 345 WALLACE STREET, NANAIMO B.C., V9R 5B6 T: 250.753.8251 F: 250.754.3999 MNP.ca Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Hospital District’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Hospital District to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Nanaimo, British Columbia April 29, 2021 Chartered Professional Accountants Page 1 Powell River Regional Hospital District Statement of Operations For the year ended December 31, 2020 2020 2020 2019 Budget Actual Actual (Note 5) 2020 Restated (Note 1) Revenue Lease revenue $1,192,776 $1,192,776 $1,192,776 Tax levy 870,544 870,545 715,078 Insurance recovery 78,551 80,585 75,530 Interest income - 128,516 124,309 Grants and other revenue 1,135 1,366 1,135 2,143,006 2,273,788 2,108,828 Expenses Debenture interest 755,692 737,805 737,805 Actuarial gains - (162,665) (127,532) Amortization 542,630 542,630 542,630 Community grants to VCH for equipment for Powell River Community Health Council 178,271 159,475 - Insurance 82,016 83,592 78,825 Other expenses 31,150 14,286 18,778 Administration fees (Note 4) 100,000 100,000 65,000 1,689,759 1,475,123 1,315,506 Annual Surplus 453,247 798,666 793,322 Accumulated surplus, beginning of year 10,461,610 10,461,610 9,668,288 Accumulated surplus, end of year $10,914,857 $11,260,276 $10,461,610 The accompanying summary of significant accounting policies and notes are an integral part of these financial statements Page 2 Powell River Regional Hospital District Statement of Changes in Net Debt For the year ended December 31, 2020 2020 2020 2019 Budget Actual Actual (Note 5) Restated (Note 1) Annual Surplus $453,247 $798,666 $793,322 Amortization of tangible capital assets 542,630 542,630 542,630 Change in prepaid expenses (12,494) (2,536) Net change in debt 995,877 1,328,802 1,333,416 Net debt, beginning