2017 Audited Financial Report

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2017 Audited Financial Report Prairie Mountain Health Consolidated Financial Statements For the year ended March 31, 2018 ( Prairie Mountain Health Contents For the year ended March 31, 2018 Page Management's Responsibility ........................................................................................................................................................ 1 Independent Auditors' Report ........................................................................................................................................................ 2 Consolidated Financial Statements Consolidated Statement of Financial Position ............................................................................................................................. 3 Consolidated Statement of Operations ........................................................................................................................................ 4 Consolidated Statement of Changes in Net Assets ..................................................................................................................... 5 Consolidated Statement of Cash Flows ....................................................................................................................................... 6 Consolidated Statement of Remeasurement Gains and Losses ................................................................................................. 7 Notes to the Consolidated Financial Statements ......................................................................................................................... 8 ( Prairie Mountain Health Management's Responsibility For the year ended March 31, 2018 To the Board of Directors of Prairie Mountain Health: Management has responsibility for preparing the accompanying consolidated financial statements. This responsibility includes selecting appropriate accounting principles and making objective judgments and estimates in accordance with Canadian public sector accounting standards. In discharging its responsibilities for the integrity and fairness of the consolidated financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets safeguarded and financial records are properly maintained to provide reliable information for the preparation of the consolidated financial statements. The Board of Directors and the Audit Committee are composed primarily of Directors who are neither management nor employees of the Organization. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors. The Audit Committee is appointed by the Board and has the responsibility of meeting with management and external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Committee is also responsible for recommending the appointment of the Organization's external auditors. MNP LLP, an independent firm of Chartered Accountants, is appointed by the Board of Prairie Mountain Health to audit the consolidated financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Audit Committee and management to discuss their audit findings. Management Independent Auditors' Report To the Board of Directors of Prairie Mountain Health: We have audited the accompanying consolidated financial statements of Prairie Mountain Health, which comprise the consolidated statement of financial position as at March 31, 2018, and the consolidated statements of operations, changes in net assets, remeasurement gains and losses and cash flows 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 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 the auditors' 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 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 Prairie Mountain Health as at March 31, 2018 and the results of its operations (including remeasurement gains and losses), changes in net assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Brandon, Manitoba MAIP LLf' June 26, 2018 Chartered Professional Accountants 1401 Princess Avenue, Brandon, Manitoba, R7A 7L7, Phone: (204) 727-0661, 1 (800) 446-0890 MNP Prairie Mountain Health Consolidated Statement of Financial Position (in thousands of dollars) As at March 31 2018 2017 ASSETS Current Cash and cash equivalents $ 73,246 $ 62,949 Short-term investments (Note 7) 3,429 2,450 Accounts receivable (Note 4) 4,946 5,530 Due from Manitoba Health (Note 5) 19,007 23,340 Current portion of loan receivable (Note 6) 33 32 Inventories held for use 4,951 5,031 Prepaid expenses 2,364 3,078 107,976 102,410 Non-Current Due from Manitoba Health (Note 5) 21,559 23,141 Loan receivable (Note 6) 125 157 Investments (Note 7) 4,762 5,728 Capital assets (Note 8) 296,603 286,476 Other long term assets 282 323,331 315,502 $ 431,307 $ 417,912 LIABILITIES Current Demand loans (Note 9) $ 117 $ 207 Accounts payable and accrued liabilities (Note 10) 36,697 40,330 Employee future benefits (Note 11) 34,014 34,047 Current portion of obligation under capital lease (Note 13) 396 511 Current portion of long-term debt (Note 12) 195 196 71,419 75,291 Non-Current Employee future benefits (Note 11) 46,616 46,828 Obligation under capital lease (Note 13) 411 807 Long-term debt (Note 12) 540 735 47,567 48,370 Deferred Contributions (Note 14) Expenses of future periods 20,848 14,713 Capital assets 284,370 274,675 305,218 289,388 $ 424,204 $ 413,049 Commitments and contingencies (Note 20) NET ASSETS Invested in capital assets (Note 16) 6,410 7,058 Internally restricted (Note 17) 5,314 5,289 Externally restricted (Note 17) 87 63 Unrestricted (4,708) (7,547) 7,103 4,863 431,307 $ 417,912 '--- Director The accompanying notes are an integral part of these consolidated financial statements 3 Prairie Mountain Health Consolidated Statement of Operations (in thousands of dollars) For the year ended March 31 2018 2017 REVENUE Manitoba Health operating income (Note 18) $ 527,407 $ 546,341 Authorized/residential charges 34,504 33,766 Amortization of deferred contributions - expenses of future periods (Note 14) 111 87 Amortization of deferred contributions - capital assets (Note 14) 17,113 16,908 Non-insured income 2,331 2,285 Ancillary revenue 3,344 3,313 Other income 13,261 15,376 Province of Manitoba 4,475 4,331 Investment income 992 743 603,538 623,150 EXPENSES Acute care services 225,595 253,907 Personal care home services 141,625 141,018 Medical remuneration 43,514 43,029 Community based mental health services 24,164 24,696 Community based home care services 40,732 40,898 Community based health services 25,852 25,974 Emergency medical services 29,225 22,818 Regional undistributed costs 36,518 36,837 Amortization of capital assets 18,556 18,252 Future employee benefits 3,535 3,489 Therapy services 9,074 9,114 Ancillary expenses 2,882 2,998 601,272 623,030 EXCESS (SHORTFALL) OF REVENUE OVER EXPENSES $ 2,266 $ 120 The accompanying notes are an integral part of these consolidated financial statements 4 Prairie Mountain Health Consolidated Statement of Changes in Net Assets (in thousands of dollars) For
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