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Annual Report for 2018-19

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Annual Report for 2018-19 Annual Report for 2018-19 saskbuilds.ca Table of Contents Letters of Transmittal .................................................................................................................................................... 1 Addendum .................................................................................................................................................................... 2 Introduction .................................................................................................................................................................. 3 SaskBuilds Overview ..................................................................................................................................................... 4 Progress in 2018-19 ....................................................................................................................................................... 6 Management's Responsibilities ..................................................................................................................................... 9 Independent Auditor's Report ..................................................................................................................................... 10 2018-19 Financial Overview ........................................................................................................................................ 12 For More Information ................................................................................................................................................. 20 Letters of Transmittal His Honour, the Honourable W. Thomas Molloy, O.C., S.O.M. Lieutenant Governor of Saskatchewan May it Please Your Honour: I respectfully submit the Annual Report for SaskBuilds Corporation for the fiscal year ending March 31, 2019. SaskBuilds leads the delivery of large and complex infrastructure projects for public sector clients, coordinates long-term integrated capital planning for executive government and The Honourable drives public procurement modernization to support the province’s growth and the quality Gordon S. Wyant, Q.C. of life of its people. Minister Responsible and Chair of SaskBuilds Board Gordon S. Wyant, Q.C. Minister Responsible for SaskBuilds and Priority Saskatchewan Chair, SaskBuilds Board of Directors The Honourable Gordon S. Wyant, Q.C., Minister Responsible for SaskBuilds and Priority Saskatchewan, and Chair of SaskBuilds Board Dear Minister: I have the honour of submitting the Annual Report for SaskBuilds Corporation for the fiscal year ending March 31, 2019. As the President and Chief Executive Officer, I take responsibility for the financial administration and management control of SaskBuilds. Furthermore, I acknowledge my Kyle Toffan responsibility for this report and provide assurance on the accuracy, completeness and President and Chief reliability of the information contained within. Executive Officer Kyle Toffan President and Chief Executive Officer SaskBuilds Annual Report for 2018-19 1 Addendum This report, including the transmittal letter, was prepared before the recent decease of His Honour, the Honourable Thomas Molloy, O.C., S.O.M., on July 2, 2019. As the office of the Lieutenant Governor is vacant at the time of transmittal, no change has been made to the transmittal letter. Annual Report for 2018-19 2 Introduction This annual report for SaskBuilds presents the corporation’s results for the fiscal year ending March 31, 2019. It provides results of publicly committed strategies, key actions and performance measures identified in the SaskBuilds Plan for 2018-19. It also reflects progress toward commitments from the Government Direction for 2018-19, the Saskatchewan Plan for Growth – Vision 2020 and Beyond, throne speeches and directives of the SaskBuilds Board. The annual report demonstrates SaskBuilds’ commitment to effective public performance reporting, transparency and accountability to the public. SaskBuilds was created as a Treasury Board Crown Corporation on October 17, 2012. This is its seventh annual report. Alignment with Government’s Direction SaskBuilds’ activities in 2018-19 align with Saskatchewan’s vision and four goals: Saskatchewan’s Vision “… to be the best place in Canada – to live, to work, to start a business, to get an education, to raise a family and to build a life.” Sustaining growth and Meeting the challenges of Securing a better quality of Delivering responsive opportunities for growth life for all Saskatchewan and responsible Saskatchewan people people government Together, all organizations support the achievement of Saskatchewan’s four goals and work towards a secure and prosperous Saskatchewan. 3 Annual Report for 2018-19 SaskBuilds Overview SaskBuilds is a Treasury Board Crown Corporation with a mandate to: • Integrate, coordinate and prioritize infrastructure spending of the Province of Saskatchewan; • Provide advice and recommendations for infrastructure planning and delivery by advancing major projects through contract oversight, innovative approaches to development and alternative financing models such as public-private partnerships; and • Lead transformative procurements changes across ministries through Priority Saskatchewan. In 2018-19, it was announced that a Single Procurement Service would be implemented for Executive Government, and that the service would be housed within SaskBuilds. While the new service became operational on April 1, 2019, planning work to ensure a smooth implementation was undertaken during 2018-19. Vision Strategic provincial growth through leadership in infrastructure. Mission To drive innovation and efficiency in infrastructure planning, financing, delivery and procurement modernization, to derive greater value, timelines and accountability for the Saskatchewan people. Team In 2018-19, SaskBuilds had a public service team of 23 full-time equivalent employees, whose expertise included project management, engineering, policy, legal, accounting and administration. SaskBuilds has a passion for solving problems and building teams to develop meaningful and innovate solutions. Governance SaskBuilds is lead by a Board of Directors. Membership on the Board as of March 31, 2019 included: • Hon. Gordon S. Wyant, Q.C., Chair • Larry Doke, MLA • Hon. Donna Harpauer, Vice-Chair • Eric Olauson, MLA • Hon. Ken Cheveldayoff • Laura Ross, MLA • Hon. Warren Kaeding • Steven Bonk, MLA Annual Report for 2018-19 4 Infrastructure Development SaskBuilds is driving infrastructure innovation through the development and delivery of complex projects as well as establishing and leading government's integrated capital planning process. As part of this role, SaskBuilds also coordinates federal infrastructure funding under a long-term agreement with the Government of Canada. SaskBuilds has worked with ministry partners to deliver four public-private partnership (P3) projects worth more than $3 billion to meet Saskatchewan’s infrastructure needs. These four projects are achieving savings of more than $500 million (M), and have supported more than 12,000 construction jobs. Two projects continued in the operations phase in 2018-19: The Meadows, a 225-bed long-term care centre in Swift Current and the Joint-Use Schools Project which comprises 18 elementary schools on nine joint-use sites in Regina, Saskatoon, Warman and Martensville. A third project, the Saskatchewan Hospital North Battleford (SHNB), achieved service commencement on September 6, 2018. This new 284-bed provincial psychiatric facility replaced the existing 156-bed hospital. The new facility includes 188 psychiatric rehabilitation beds and a 96-bed secure wing for offenders living with mental health issues. This project is an innovative partnership between the Ministries of Health, Corrections and Policing, Central Services, the Saskatchewan Health Authority, and SaskBuilds. Following service commencement in September, all patients from the existing facility moved to Premier Scott Moe, patient Keri, and Battlefords MLA Herb the new SHNB in November 2018. Corrections began a phased-in move of its Cox declare the new SHNB officially open. patients in December 2018. SHNB patients and staff joined members of the (Photo courtesy Saskatchewan Health Authority) community and government to celebrate its official opening on March 8, 2019. While the SHNB project encountered some delays, it has proven that P3 risk transfer works to protect government and taxpayers by ensuring that risks and associated costs are the responsibility of Access Prairies Partnership (APP), the private sector partners on the project. When APP was not able to meet the original service commencement date of June 1, 2018 the unique protections of the P3 project agreement ensured that government retained $3.9M in forfeited service payments, plus recovered $484,000 for delay-related expenses. The fourth P3 project, the Regina Bypass, continued construction in 2018-19, and remains on schedule for substantial completion in October 2019. Integrated capital planning enables government to take a strategic approach to identifying, prioritizing and funding infrastructure investments. SaskBuilds leads government's annual integrated capital planning process, working closely with ministries and Crowns to ensure that decision makers have the best information possible to help meet Saskatchewan's infrastructure needs now and into the future. Priority Saskatchewan Priority Saskatchewan was created in 2014 to ensure that public procurement in Saskatchewan
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