PPRINCERINCE ALBERTALBERT GGRANDRAND COUNCILCOUNCIL protecting our ways FINANCIAL 20 REPORT 18 PPAGCAGC O FFFICESF I C E S Executive Offi ce Holistic Wellness Centre Spiritual Healing Lodge Chief Joseph Custer Reserve #201 Chief Joseph Custer Reserve #201 Wahpeton Reserve 94 B 2nd Floor 2300 - 10th Avenue West 851 - 23rd Street West, Cottage 3 Box 2350 P.O. Box 2350 Prince Albert, SK S6V 6Z1 Prince Albert SK S6V 6Z1 Prince Albert, SK S6V 6Z1 Tel: 765-5305 Toll Free: 800-765-5305 Tel: 953-2498 Fax: 953-2514 Tel: 953-7200 Fax: 764-6272 Fax: 765-5223 Sprucelodge Boarding Home Agriculture Information Technology Services Cottage 10 Main Floor – McIntosh Mall 851 - 23rd Street West, Cottage 4 Prince Albert, SK S6V 3S1 P.O. Box 3003 Prince Albert, SK S6V 7G3 Tel: 953-1590 Fax: 922-2502 Prince Albert, SK S6V 6G1 Tel: 953-7281 Fax: 764-5388 Ph: 953-2755 Fax: 953-2440 Urban Services Justice Unit 1410 B Central Ave. Child Care & Education Centre 77A-11th Street West P.O. Box 2350 Chief Joseph Custer Reserve #201 P.O. Box 2350 Prince Albert, SK S6V 6Z1 851 - 23rd Street West, Cottage 5 Prince Albert, SK S6V 6Z1 Tel: 765-5300 Fax: 922-5544 P.O. Box 1988 Tel: 953-7254 Fax: 764-7295 Prince Albert, SK S6V 4M4 Sports, Culture & Recreation Tel: 953-7210 Fax: 763-1270 Northern Lights Community 1410 B Central Ave. Development Corporation P.O. Box 2350 Education 2nd Floor, 2300-10th Avenue West Prince Albert, SK S6V 6Z1 Sturgeon Lake Offi ce Complex P.O. Box 2350 Tel: 765-5300 Fax: 922-5544 3601 - 5th Ave. East Prince Albert, SK S6V 6Z1 P.O. Box 2770 Ph: 953-7259 Fax: 764-0765 Valley Hill Youth Treatment Centre Prince Albert, SK S6V 6K1 PO Box 761 Tel: 953-7234 Fax: 922-3135 Northern Spruce Housing 2101-10th Avenue West 2nd Site P.O. Box 777 Prince Albert, SK S6V 5S2 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 5S2 Tel: 764-2311 or 764-2312 or 2300 10th Ave West, Cottage 11 Tel: 922-4122 Fax: 764-9222 764-2958 Fax: 764-2377 Prince Albert, SK S6V 7M2 Tel: 953-7234 Fax: 922-3135 P.A. Development Corporation Wahpeton Reserve #94A Housing & Technical Services P.O. Box 478 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 5R8 2300 10th Ave West, Cottage 12 Tel: 922-0099 Fax: 922-5075 Prince Albert, SK S6V 7G3 Tel: 953-7242 Fax: 922-1710 PAGC Learn & Grow Daycare 807-15th Street West 2nd Site: Emergency Operations Prince Albert, SK S6V 3S1 851 - 23rd Street West, Cottage 5 Tel: 765-5308 Fax: 763-0838 Prince Albert, SK S6V 7G3 Tel: 953-7242 Fax: 922-1710 Personnel & Finance 2300-10th Avenue West, 2nd Floor Forestry P.O. Box 2410 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 7G3 2300 - 10th Avenue West, Cottage 12 Tel: 953-7217 Fax: 953-1045 Prince Albert, SK S6V 7G3 Finance Fax: 763-3635 Tel: 765-5373 Fax: 763-2012 Sakwatamo Lodge Health & Social Development James Smith Cree Nation #100 Chief Joseph Custer Reserve #201 P.O. Box 3917 851 - 23rd Street West Melfort, SK S0E 1A0 P.O. Box 1775 Tel: 864-3631 Fax: 864-2204 Prince Albert, SK S6V 5T3 Tel: 953-7283 Fax: 763-6611 F IINANCEN A N C E S UUMMARYM M A R Y During the past 6 years, our Chiefs and Executive have Once again I want to thank our auditors led by Keith been provided leadership in eliminating PAGC’s net Fonstad and Todd Robertson for working both diligently debt which was as high as $6.5 million at the end of and professionally on our audit under extreme time con- 2013. In April 2014 cutbacks in Tribal Council Funding straints. During the past four years of their audit engage- of $1,343,314 each year had a drastic impact on PAGC’s ment, PAGC has improved its fi nancial condition. We rely ability to recover this net debt. This 71% reduction in core on their advice for fi nancial statement presentation and funding by INAC now totals $6.7 million in the current fi s- fi nancial management solutions. cal year, severely aff ecting the Grand Council’s advisory services to our member First Nations. Despite this ongoing PAGC’s fi nance department has received the cooperation cutback in TCF funding, PAGC has managed to reduce its and support of our First Nations Chiefs, Elders and admin- net debt from $6.5 million to $2.3 million at the end of the istration staff to ensure that everything functions smoothly. 2017 fi scal year. We appreciate your strong leadership, guidance and sup- port for maintaining the fi nancial success of PAGC so that The consolidated operating results for the 2018 fi scal year we can continue serving your First Nations members. show an annual surplus of about $1.4 million, but the net debt stayed the same because the surplus funds were in- vested in capital assets – building renovations, equipment and vehicles. Revenue increased to $97.5 million from to $81.1 million due to one-time funding for the First Nations Housing Initiative. These higher revenues were off set by expenditures of $96.1 million, resulting in the surplus of $1.4 million after amortization. Acquisition of capital as- sets of around $1.2 million used up most of this annual surplus so there was no recovery of net debt in this fi s- cal year. These capital purchases will enable our program services to operate more effi ciently over the next few years and ensure that those programs generate future surpluses that will contribute to the recovery of our net debt. Our Chiefs and the Annual Assembly have supported our fi nancial recovery eff orts by their continued oversight of our fi nancial situation. We are grateful for their ongoing support at Chiefs meetings and at the Executive Board/ Treasury Board meetings where a lot more detailed ques- tions have been deliberated. T AABLEB L E OOFF C OONTENTSN T E N T S 2 Consolidated Statement of Financial Position 3 Consolidated Statement of Operations 4 Consolidated Statement of Changes in Net Debt 5 Consolidated Statement of Cash Flows 6-15 Notes to the Consolidated Financial Statements 16 Consolidated Schedule of Tangible Capital Assets 17 Consolidated Schedule of Expenses by Object 18-24 Consolidated Schedules of Revenue and Expense by Program 25-26 Financial Charts 27 Summary of Financial Activities and Surplus 28-34 Schedules of Program Financial Activities and Surplus PADC Management Company Ltd. Consolidated Statement of Financial Position As at March 31, 2018 2018 2017 Financial assets Cash resources (Note 3) 1,861,058 1,968,936 Accounts receivable (Note 4) 8,369,935 9,621,534 Due from member First Nations (Note 5) 2,074,166 2,012,239 Note receivable (Note 6) - 25,245 Total financial assets 12,305,158 13,627,954 Liabilities Current Bank indebtedness (Note 7) 4,788,785 8,889,089 Accounts payable and accrued liabilities (Note 8) 2,761,255 2,797,241 Deferred revenue (Note 9) 5,722,011 2,591,781 Due to member First Nations (Note 10) 664,648 834,909 Current portion of long-term debt (Note 11) 135,714 135,714 Total current liabilities 14,072,414 15,248,734 Long-term debt (Note 11) 576,798 712,500 Total liabilities 14,649,211 15,961,234 Net debt (2,344,053) (2,333,281) Non-financial assets Prepaid expenses 181,661 23,221 Tangible capital assets (Note 12) 4,654,596 3,414,240 Total non-financial assets 4,836,257 3,437,461 Accumulated surplus (deficit) (Note 19) 2,492,204 1,104,180 Contractual obligations (Note 13) Contingent liabilities (Note 14) Director Director The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements. 2 PADC Management Company Ltd. Consolidated Statement of Operations For the year ended March 31, 2018 Schedule Budget 2018 2017 (Note 20) Revenue Federal Government: (Note 15) Indigenous and Northern Affairs Canada 43,333,726 56,916,578 44,048,279 Health Canada - First Nations and Inuit Branch 16,427,930 17,584,495 15,764,936 Public Health Agency Canada 80,000 80,946 80,946 Justice Canada 509,727 509,727 507,790 Correctional Services Canada 600,000 526,938 554,351 Canadian Nuclear Safety Commission 20,000 - 7,000 Public Safety Canada - 52,716 53,064 Canada Mortgage and Housing Corporation 80,000 146,756 288,982 Provincial Government: - Sask Ministry of Justice 580,600 501,375 473,925 Sask Ministry of Corrections, Policing and Public Safety 240,800 209,672 224,885 Sask Ministry of Education 280,000 313,205 457,755 Sask Ministry of Environment 2,239,500 2,021,147 1,706,951 Sask Ministry of Social Services 2,000,000 2,519,197 1,850,137 Saskatchewan Indian Institute of Technologies 3,546,204 4,840,231 4,038,757 First Nations Trust 5,180,000 4,467,407 4,817,435 Federation of Sovereign Indigenous Nations 651,832 541,832 768,252 Northern Lights Community Development Corporation 810,000 927,854 667,313 Administration Fees and Services (Note 17) 1,060,000 631,744 479,651 First Nations Funding 2,625,600 1,802,407 2,070,727 Other Sources 1,300,059 2,860,541 2,284,499 Total Revenue 81,565,978 97,454,767 81,145,636 Program Expenses First Nations Government and Administration 3 7,089,575 7,679,078 7,459,530 Community Services 4 5,706,897 5,120,552 4,771,167 Economic Development 5 1,219,912 1,219,841 1,237,313 Education 6 37,926,235 39,579,666 36,744,157 Health 7 18,003,957 20,440,252 17,947,504 Infrastructure Services 8 8,210,647 20,169,740 10,265,332 Justice 9 1,957,127 1,857,615 1,820,655 Total Expenses 80,114,351 96,066,743 80,245,657 Annual surplus 1,451,627 1,388,024 899,978 Accumulated surplus (deficit), beginning of year 1,104,180 1,104,180 204,202 Accumulated surplus, end of year 2,555,808 2,492,204 1,104,180 The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements.