Liabilities are present obligations to individuals and organizations outside the government reporting entity as a result of transactions and events occurring prior to year-end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. They consist of obligations to provide authorized transfers where any eligibility criteria have been met, to repay borrowings, to pay for goods and services acquired prior to year-end and to deliver goods or services in the future where payment has been received.
Premiums, discounts and issue costs are recorded as deferred charges and are amortized on a straight-line basis over the remaining life of the debt issue.
Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. Premiums and discounts on long-term investments within these sinking funds are amortized on a constant yield basis.
Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31.
Summary Financial Statements
Notes to the Summary Financial Statements
| 1. | Significant Accounting Policies (continued) |
Non-financial assets
Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed in the normal course of operations and are not for sale in the normal course of operations.
Inventories held for consumption are recorded at cost and are expensed as they are consumed.
Tangible capital assets are recorded at cost and include all amounts directly attributable to the acquisition, construction, development or betterment of the asset. Tangible capital assets are generally amortized on a straight-line basis over the estimated useful life of each asset.
Revenue
Revenues are recorded on the accrual basis except for receipts from the federal government for corporate and personal income taxes, which are recorded on the cash basis. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met.
Expense
Expenses are recorded on the accrual basis. Government transfers are recognized as expenses in the period during which the transfer is authorized and any eligibility criteria are met.
| f) | Measurement Uncertainty |
Uncertainty in the determination of the amount at which an item is recognized or disclosed in financial statements is known as measurement uncertainty. Such uncertainty exists when there is a variance between the recognized or disclosed amount and another reasonably possible amount.
Measurement uncertainty that may be material to these financial statements exists in the accrual of pension obligations, site restoration obligations, accident claims obligations, unbilled utility revenue, non-renewable resources royalties and the federal government’s Canada Health Transfer and Canada Social Transfer payments. It also exists in the valuation of loans where repayment is contingent upon an organization’s cash flows.
The nature of the uncertainty in the accrual of pension, site restoration and accident claims obligations arises because actual experience may differ significantly from actuarial or historical estimations and assumptions. Uncertainty in the accrual of unbilled utility revenue arises because actual usage may differ from estimated usage. The uncertainty related to accrued royalties arises because of price and production sensitivities in the royalty structures. Uncertainty related to transfers from the federal government arises because of changes in economic and demographic conditions in the Province and the country. The uncertainty in the valuation of loans arises from the effect of commodity prices on cash flows.
While best estimates are used for reporting items subject to measurement uncertainty, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require a material change in the amounts recognized or disclosed.
| 2. | Risk Management of Public Debt |
The Government borrows funds in both domestic and foreign capital markets by issuing Government of Saskatchewan securities. As a result, the Government is exposed to four types of risk: interest rate risk, foreign exchange rate risk, credit risk and liquidity risk.
To manage these risks, the Government maintains a preference for fixed rate Canadian dollar denominated debt. Where market conditions dictate that other forms of debt are more attractive, the Government seeks opportunities to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract whose value is based on the value of another asset or index.
Interest rate risk is the risk that the Government’s debt charges will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominantly fixed rates of interest rather than at floating rates of interest.
| Government of Saskatchewan - 2006-07 Public Accounts | 49 |
Summary Financial Statements
Notes to the Summary Financial Statements
| 2. | Risk Management of Public Debt (continued) |
Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. The Government seeks opportunities to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. The Government has interest rate swaps on a notional value of debt of $70.6 million (2006 — $311.5 million). At March 31, 2007, 88.6 per cent (2006 — 85.7 per cent) of the Government’s gross debt effectively carried a rate of interest that was fixed for greater than a one-year period.
Public debt includes floating rate debt of $1,402.1 million (2006 — $1,747.1 million). A one percentage point increase in interest rates would decrease the surplus by $14.0 million in 2007-08.
Foreign exchange rate risk is the risk that the Government’s debt charges will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, the Government seeks opportunities to effectively convert it into Canadian dollar debt through the use of cross currency swaps and foreign currency forward exchange contracts. At March 31, 2007, 97.4 per cent (2006 — 97.4 per cent) of the Government’s gross debt is effectively denominated in Canadian dollars.
The following foreign-denominated items have been hedged to Canadian dollars using cross currency swaps:
| • | debentures totalling 1,419.0 million U.S. dollars (2006 - 1,419.0 million) fully hedged to $1,882.3 million Canadian (2006 - $1,882.3 million); |
| • | debentures totalling 300.0 million Swiss francs (2006 — 200.0 million) fully hedged to $274.7 million Canadian (2006 - $182.4 million); and |
| • | interest payments on debentures of 275.0 million U.S. dollars (2006 — 275.0 million) hedged to Canadian dollars at an exchange rate of 1.2325 (2006 — 1.2325). |
In total, the Government has cross currency swaps on a notional value of debt of $2,770.5 million (2006 — $2,713.3 million). The effectiveness of these hedges is assessed on an ongoing basis by monitoring the credit ratings of the counterparties to the hedges.
Credit risk is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties with good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2007, 100 per cent (2006 — 100 per cent) of the Government’s counterparties held a Standard and Poor’s credit rating of A or better.
Liquidity risk is the risk that the Government will not be able to meet its financial commitments over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity.
The Government sponsors several defined benefit and defined contribution pension plans. The Government also participates in a joint defined benefit pension plan.
Defined benefit plans provide benefits based on length of service and pensionable earnings. A typical defined benefit plan provides pensions equal to 2.0 per cent of a member’s average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their plan. Pensions and contribution rates are integrated with the Canada Pension Plan.
Actuarial valuations are performed at least triennially. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates and short-term forecasts. Estimates vary based on the individual plan.
The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on the actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans.
Joint defined benefit plans are governed by a formal agreement between the joint sponsors (i.e., employer and plan members), which establishes that the joint sponsors have shared control over the plan. Funding contributions are shared
| 50 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
Notes to the Summary Financial Statements
| 3. | Retirement Benefits (continued) |
mutually between the employer and plan members. The sponsors share, on an equitable basis, the significant risks of each plan. Accordingly, the Government accounts for only its portion of the plan. Plan assets and surpluses are restricted for member benefits or certain other purposes set out in the agreement. Plan benefits are determined on the same basis as defined benefit plans.
The accrued benefit obligation is determined using the projected accrued benefit actuarial cost method. Pension fund assets are valued at market related values by averaging the difference between the net investment income on a market value basis and the expected investment income determined by the actuary, over a five year period.
Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. The Government provides contributions at specified rates for employee current service.
Pension fund assets of government sponsored defined benefit and defined contribution plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans.
Government Service Organizations
| a) | Defined benefit plans and joint defined benefit plan |
The two main defined benefit plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan (STC), Anti-TB League Employees Superannuation Plan (ATB) and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. Defined benefits are also payable to members of the former Members of the Legislative Assembly Superannuation Fund (MLA).
The Government is required to match member current service contributions for all plans except Judges and the PSSP. Separate pension funds are maintained for all plans except the PSSP and the MLA, for which member contributions are received and pension obligations are paid directly by the Government.
The Government also participates in the Saskatchewan Healthcare Employees’ Pension Plan (SHEPP), a joint defined benefit plan for employees of the Regional Health Authorities. The Government contributes to the plan at the ratio of 1.12 to 1 of employee contributions. Any actuarially determined deficiency is the responsibility of participating employers and employees in the ratio of 1.12 to 1. The Government’s participating employer contributions for the SHEPP represents approximately 91 per cent of the total employer contributions to the plan.
| Government of Saskatchewan - 2006-07 Public Accounts | 51 |
Summary Financial Statements
Notes to the Summary Financial Statements
| 3. | Retirement Benefits (continued) |
Information on the defined benefit plans and the joint defined benefit plan of government service organizations follows:
| 2007
| 2006
|
|---|
| TSP
| PSSP
| Others
| SHEPP
| Total
| Total
|
|---|
| Plan status | closed | closed | closed 1 | open | n/a | n/a |
| Member contribution rate (percentage of salary) | 7.85 | 7.00-9.00 2 | 5.00-9.00 2 | 5.85-7.35 2 | n/a | n/a |
| Number of active members | 3,124 | 1,312 | 63 | 30,646 | 35,145 | 35,469 |
| Average age of active members (years) | 53.2 | 54.9 | 57.0 | 44.9 | 46.0 | 46.1 |
| Number of former members entitled to deferred | | | | | | |
| pension benefits | 4,965 | 119 | 11 | 1,386 | 6,481 | 6,703 |
| Number of superannuates and surviving spouses | 10,640 | 5,717 | 2,372 | 8,813 | 27,542 | 27,023 |
| Actuarial valuation date | June 30/05 | Dec. 31/05 | Various | Dec. 31/04 | n/a | n/a |
| Long-term assumptions used | | | | | | |
| Rate of compensation increase (percentage) | 3.50 | 3.50 | 3.50 | 3.75 | n/a | n/a |
| Expected rate of return on plan assets (percentage) | 6.75 | 5.00 | 5.00-6.00 | 6.50 | n/a | n/a |
| Discount rate (percentage) | 5.00 | 5.00 | 5.00 | 6.50 | n/a | n/a |
| Inflation rate (percentage) | 2.50 | 2.50 | 2.50 | 2.75 | n/a | n/a |
| Expected average remaining service life (years) | 4.7 | 3.9 | Various | 11.9 | n/a | n/a |
| Post-retirement index (percentage of annual | | | | | | |
| increase in Consumer Price Index) | 80 | 70 | Various | Ad hoc | n/a | n/a |
|
| 1 | Judges is open to new membership; all other plans are closed. |
| 2 | Contribution rate varies based on age upon joining the plan. |
| b) | Defined contribution plans |
The two main multi-employer defined contribution plans sponsored by the Government are the Public Employees Pension Plan (PEPP) and the Capital Pension Plan (Capital). The Government provides contributions to the plans at specified rates for employee current service. The Government also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP), sponsored by the Saskatchewan Teachers’ Federation and to the Regina Civic Employees’ Superannuation and Benefit Plan (RCESP). The Government has fully funded its share of contributions to the defined contribution plans.
Information on the defined contribution plans of government service organizations follows:
| 2007
| 2006
|
|---|
| Government Sponsored
| | | | |
|---|
| PEPP
| Capital
| RCESP 1
| STRP 2
| Total
| Total
|
|---|
| Plan status | open | open | open | n/a | n/a | n/a |
| Member contribution rate (percentage of salary) | 5.00-7.00 3 | 5.00-5.50 3 | 8.85-13.11 3 | n/a | n/a | n/a |
| Government contribution rate (percentage of salary) | 6.45-7.00 3 | 5.50-6.00 3 | 8.85-13.11 3 | n/a | n/a | n/a |
| Government service organization participation | | | | | | |
| Number of active members | 20,135 | 706 | 1,434 | n/a | 22,275 | 22,788 |
| Member contributions (thousands of dollars) | 51,619 | 2,160 | 8,468 | n/a | 62,247 | 56,309 |
| Government contributions (thousands of dollars) | 48,113 | 2,401 | 8,640 | 38,235 | 97,389 | 91,621 |
|
| 1 | Certain employees of a Regional Health Authority participate in the RCESP, a multi-employer defined benefit plan established through a City of Regina bylaw. All costs, including costs of any actuarially determined deficiency, are equally shared by the employees and employers. At December 31, 2006, audited financial statements for the plan reported an accrued benefit obligation of $768.1 million (2005 — $768.1 million) and pension fund assets at market value of $825.2 million (2005 — $774.1 million). |
| 2 | The STRP is a contributory defined benefit pension plan. The Government contributes an amount which is set through provincial negotiations. |
| 3 | Contribution rate varies based on employee group. |
| 52 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
Notes to the Summary Financial Statements
| 3. | Retirement Benefits (continued) |
Pension expense for government service organizations is primarily allocated to education expense, health expense and other expense. Pension interest expense is included in debt charges. The total pension expense of government service organizations includes the following:
(thousands of dollars)
| 2007
| 2006
|
|---|
| Defined benefit plans | | | | | | | | |
| Current period benefit cost | | | | 81,889 | | | 73,663 | |
| Plan amendment 1 | | | | 90,433 | | | -- | |
| Amortization of estimation adjustments | | | | 218,988 | | | (19,849 | ) |
| Employee contributions | | | | (21,456 | ) | | (22,504 | ) |
| Plan expenses | | | | 4,502 | | | 7,255 | |
| Cost of financing unfunded pension obligation (pension interest expense) | | | | 259,885 | | | 260,546 | |
|
| Total pension expense, defined benefit plans | | | | 634,241 | | | 299,111 | |
| Other plans | | | | | | | | |
| Total pension expense, joint defined benefit plan | | | | 28,389 | | | 84,509 | |
| Total pension expense, defined contribution plans | | | | 97,389 | | | 91,621 | |
|
| Total Pension Expense | | | | 760,019 | | | 475,241 | |
|
| 1 | During the year, the Government approved a plan amendment to provide guaranteed indexing of pensions for members of the PSSP, Judges, STC, ATB, and MLA at 70 per cent of the annual change in the Consumer Price Index. Previously, the Government provided ad hoc indexing to members of these plans. |
Government Business Enterprises
There are additional employee pension plans of government business enterprises which are accounted for in the investment in government business enterprises. The two main defined benefit plans of government business enterprises are the Power Corporation Superannuation Plan (SaskPower) and the Saskatchewan Telecommunications Pension Plan (SaskTel). Other plans include the Saskatchewan Government Insurance Superannuation Plan, the Liquor Board Superannuation Plan, and the Pension Plan for Employees of the Saskatchewan Workers’ Compensation Board.
The Government contributes the amount necessary to fund the payment of pension benefits.
Information on the defined benefit plans of government business enterprises follows:
| 2007
| 2006
|
|---|
| SaskPower
| SaskTel
| Others
| Total
| Total
|
|---|
| Plan status | closed | closed | closed | n/a | n/a |
| Number of active members | 496 | 375 | 109 | 980 | 1,188 |
| Number of former members, superannuates | | | | | |
| and surviving spouses | 1,733 | 1,914 | 433 | 4,080 | 3,961 |
| Member contributions (thousands of dollars) | 1,711 | 1,647 | 327 | 3,685 | 4,145 |
| Government contributions (thousands of dollars) | 453 | 35,404 | 1,156 | 37,013 | 44,231 |
| Benefits paid (thousands of dollars) | 42,260 | 54,042 | 8,062 | 104,364 | 96,097 |
| Actuarial valuation date | Sept.30/06 | Dec.31/06 | Various | n/a | n/a |
| Long-term assumtions used | | | | | |
| Rate of compensation increase (percentage) | 3.50 | 3.00 | 3.25-3.50 | n/a | n/a |
| Expected rate of return on plan assets (percentage) | 6.50 | 7.00 | 4.75-6.25 | n/a | n/a |
| Discount rate (percentage) | 5.25 | 5.15 | 4.75-5.00 | n/a | n/a |
| Inflation rate (percentage) | 2.50 | 2.50 | 2.25-2.50 | n/a | n/a |
| Post-retirement index (percentage of annual increase in | | | | | |
| Consumer Price Index) | 70 | 100 | 50-70 | n/a | n/a |
|
| Government of Saskatchewan - 2006-07 Public Accounts | 53 |
Summary Financial Statements
Notes to the Summary Financial Statements
| 3. | Retirement Benefits (continued) |
Based on the latest actuarial valuation for SaskPower at September 30, 2006 and extrapolations for other plans to December 31, 2006, the present value of accrued pension benefits and the market value of pension fund assets are shown in the table below:
| (thousands of dollars) | 2007
| 2006
|
|---|
| SaskPower
| SaskTel
| Others
| Total
| Total
|
|---|
| Accrued benefit obligation | | | | 836,505 | | | 1,049,368 | | | 132,975 | | | 2,018,848 | | | 1,926,102 | |
| Fair value of plan assets | | | | 790,190 | | | 1,007,653 | | | 100,724 | | | 1,898,567 | | | 1,781,249 | |
|
| Plan Deficit | | | | 46,315 | | | 41,715 | | | 32,251 | | | 120,281 | | | 144,853 | |
| Unamortized amounts 1 | | | | (82,564 | ) | | (88,284 | ) | | (5,683 | ) | | (176,531 | ) | | (202,934 | ) |
|
| Pension (Surplus) Liabilities | | | | (36,249 | ) | | (46,569 | ) | | 26,568 | | | (56,250 | ) | | (58,081 | ) |
|
| 1 | Includes unamortized transitional assets, unamortized actuarial gains (losses) and unamortized past service costs. SaskTel’s amounts are amortized against the plan deficit over the average remaining life of retired members of 22 years. SaskPower and the other plans’ amounts are amortized against the plan deficit over periods ranging from 2.6 to 4 years, which is the expected average remaining service life of active plan members at the time the amounts arose. |
At December 31, 2006, 31.4 per cent (2005 — 33.0 per cent) of pension plan assets were invested in fixed income securities and 60.2 per cent (2005 — 58.0 per cent) in equity investments.
| b) | Defined contribution plans |
Information on the defined contribution plans of government business enterprises follows:
| 2007
| 2006
|
|---|
| PEPP
| Capital
| Total
| Total
|
|---|
| Plan status | | | | open | | | open | | | n/a | | | n/a | |
| Member contribution rate (percentage of salary) | | | | 4.00-6.55 | 1 | | 5.50 | | | n/a | | | n/a | |
| Government contribution rate (percentage of salary) | | | | 5.00-6.55 | 1 | | 5.50 | | | n/a | | | n/a | |
| Government business enterprise participation | | | | | | | | | | | | | | |
| Number of active members | | | | 9,289 | | | 2,427 | | | 11,716 | | | 11,110 | |
| Government contributions (thousands of dollars) | | | | 29,681 | | | 5,600 | | | 35,281 | | | 31,861 | |
|
| 1 | Contribution rate varies based on employee group. |
Pension expense and pension interest expense for government business enterprises are included in income from government business enterprises. The pension expense for the year for the defined benefit plans is $40.7 million (2006 — $39.9 million) and $35.3 million (2006 — $31.9 million) for the defined contribution plans.
| d) | Other future benefit plans |
Other future benefit plans of government business enterprises include a defined benefit severance plan, a supplementary superannuation plan, two defined benefit service recognition plans, a defined benefit retiring allowance plan, and a voluntary early retirement plan. The accrued benefit liability is $77.8 million (2006 — $73.8 million).
| 54 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
Notes to the Summary Financial Statements
Guaranteed debt
The Government has guaranteed the debt of others of $62.6 million (2006 — $94.6 million). Schedule 11 provides a listing of guaranteed debt.
Lawsuits
Up to $42.4 million may be paid depending on the outcome of lawsuits in progress.
Goods and Services Tax Obligation
Since 1999, a government business enterprise has determined its GST obligations based on a ruling from the Canada Revenue Agency (CRA). As a result of recent legislative changes, the government business enterprise has requested the CRA to confirm its prior ruling. The outcome of this request cannot be predicted. If CRA amends its ruling, up to $32.5 million (2006 — $28 million) may be paid.
| 5. | Contractual Obligations |
Significant contractual obligations include:
| • | forward purchase agreements of $1,458.8 million for coal contracted for future minimum deliveries valued at current prices over the next 18 years, and approximately $5,743.8 million for power over the next 21 years; |
| • | contracts for the construction and acquisition of tangible capital assets of $717.7 million; |
| • | agreements to provide housing subsidies and transfers of $134.5 million over five years; |
| • | capital grant projects of $59.2 million over 15 years; |
| • | computer service agreements of $36.4 million over three years; |
| • | treaty land entitlement agreements valued at approximately $5.4 million over five years, and rural municipality and school division tax loss compensation of approximately $10.5 million as land achieves reserve status over the course of the agreements; |
| • | other contractual obligations of $321.7 million, which consists of $146.4 million for government service organizations, including $12.0 million for agriculture, $66.5 million for economic development, $3.6 million for education and $64.3 million for environment and natural resources, and $175.3 million for government business enterprises; and |
| • | operating and capital lease obligations as follows: |
(thousands of dollars)
| Operating 1
| Capital 2
|
|---|
| Future minimum lease payments | | |
| 2007-08 | 76,735 | 18,942 |
| 2008-09 | 67,662 | 16,783 |
| 2009-10 | 50,428 | 12,925 |
| 2010-11 | 44,325 | 12,525 |
| 2011-12 | 28,250 | 9,812 |
| Thereafter | 53,534 | 25,992 |
|
| | 320,934 | 96,979 |
| Interest and executory costs | -- | (40,674) |
|
| Total Lease Obligations | 320,934 | 56,305 |
|
| 1 | Total operating lease obligations include $164.2 million for government service organizations and $156.7 million for government business enterprises. |
| 2 | Total capital lease obligations include $48.4 million for government service organizations (schedule 7) and $7.9 million for government business enterprises. |
| Government of Saskatchewan - 2006-07 Public Accounts | 55 |
Summary Financial Statements
Notes to the Summary Financial Statements
| 6. | Government Partnerships |
The Government has a 50 per cent partnership interest in Meadow Lake Pulp Limited Partnership (MLPLP), which operates a pulp mill near Meadow Lake and a 45.5 per cent partnership interest in Saskatchewan Entrepreneurial Fund Inc., which assists with the development and growth of small business in the province.
The Government’s pro-rata share of its government partnerships is as follows:
(thousands of dollars)
| 2007
| 2006
|
|---|
| Revenue | | | | 89,378 | | | 89,281 | |
| Expense | | | | 94,523 | | | 98,413 | |
|
| Deficit | | | | (5,145 | ) | | (9,132 | ) |
| Recovery (write down) of partnership interest | | | | 24,584 | | | (48,516 | ) |
| Accumulated surplus, beginning of year | | | | 2,000 | | | 59,648 | |
|
| Accumulated surplus, end of year | | | | 21,439 | | | 2,000 | |
| Transferred to assets held for sale | | | | (21,439 | ) | | (2,000 | ) |
|
| Partnership Interest | | | | -- | | | -- | |
|
The Government is in the process of disposing of its interest in MLPLP. Accordingly, the net assets of MLPLP have been classified as assets held for sale. The revenue and expense of MLPLP have been proportionately consolidated in these financial statements.
During the year, certain of the MLPLP assets were sold to Meadow Lake Mechanical for cash and equity consideration, resulting in a reduction in the assets held for sale to $13.4 million, as disclosed in schedule 2.
Trust fund assets held and administered by the Government are as follows:
(thousands of dollars)
| 2007
| 2006
|
|---|
| Pension plans | | | | 10,827,351 | | | 9,948,965 | |
| Public Guardian and Trustee of Saskatchewan | | | | 154,479 | | | 148,566 | |
| Other | | | | 214,566 | | | 204,455 | |
|
| Total Trust Fund Assets 1 | | | | 11,196,396 | | | 10,301,986 | |
|
| 1 | Amounts are based on the latest financial statements of the funds closest to March 31, 2007, where available. |
| 8. | Adjustment to Accumulated Deficit |
Adjustments of $26.9 million were made to the April 1, 2006 accumulated deficit.
During 2006-07, the Government determined that one of its employee benefit plans should no longer be included in the government reporting entity, but rather be disclosed as a trust administered by the Government. As a result, the Government recorded an $11.2 million decrease in financial assets, a $0.3 million decrease in financial liabilities and a corresponding $10.9 million increase in the accumulated deficit.
Additionally, a government business enterprise recorded a prior period adjustment related to an error in its actuarial valuation performed in the prior year. As a result, the Government recorded a $16.0 million decrease in investment in government business enterprises, and a corresponding increase in the accumulated deficit.
The comparative figures have not been restated.
Certain of the 2006 comparative figures have been reclassified to conform with the current year’s presentation.
| 56 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
Notes to the Summary Financial Statements
On June 8, 2007, Crown Life Insurance Company and its two shareholders, HARO Financial Corporation and Extendicare REIT, and Canada Life Assurance Company signed agreements to facilitate the final closing of the sale of the insurance business of Crown Life to Canada Life. The agreements are subject to receiving regulatory approval. The closing is expected to occur in July 2007 when regulatory approval is received. Upon the closing, the Government expects to receive net proceeds of approximately $144 million from HARO resulting in investment income of approximately $60 million.
| Government of Saskatchewan - 2006-07 Public Accounts | 57 |
Summary Financial Statements
| | | | | |
|---|
| Accounts Receivable | | | | Schedule 1 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Taxation | | | | 200,564 | | | 210,998 | |
| Non-renewable resources | | | | 182,342 | | | 126,376 | |
| Other own-source revenue | | | | 437,210 | | | 442,234 | |
| Transfers from the federal government | | | | 123,455 | | | 97,923 | |
|
| | | | | 943,571 | | | 877,531 | |
| Provision for loss | | | | (83,947 | ) | | (84,102 | ) |
|
| Total Accounts Receivable | | | | 859,624 | | | 793,429 | |
|
| | | | | |
|---|
| Assets Held for Sale | | | | Schedule 2 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Land held for resale | | | | 113,241 | | | 114,191 | |
| Inventories held for resale | | | | 1,842 | | | 1,943 | |
| Other assets held for sale | | | | | | | | |
| Meadow Lake Pulp Limited Partnership (note 6) | | | | 13,439 | | | 2,000 | |
| Centennial Foods (schedule 5) | | | | 9,923 | | | 2,620 | |
|
| Total Assets Held for Sale | | | | 138,445 | | | 120,754 | |
|
Land Held for Resale
The estimated net realizable value of the Government’s land held for resale at March 31, 2007 is $216.9 million (2006 — $214.4 million).
Other Assets Held for Sale
The Government has committed to and has a plan in place for the sale of these assets. The assets are in sale condition, have been publicly offered for sale and an active market exists. The Government anticipates that a sale to a purchaser external to the government reporting entity will be completed within the next year.
| 58 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Loans and Mortgages Receivable | | | | Schedule 3 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Student loans | | | | 137,115 | | | 133,824 | |
| Agricultural loans | | | | 45,737 | | | 55,409 | |
| Other loans | | | | 35,112 | | | 39,005 | |
| Mortgages | | | | 2,640 | | | 2,709 | |
|
| | | | | 220,604 | | | 230,947 | |
| Provision for loss | | | | (85,006 | ) | | (89,550 | ) |
|
| Total Loans and Mortgages Receivable | | | | 135,598 | | | 141,397 | |
|
Student Loans
The program operates under the authority of The Student Assistance and Student Aid Fund Act, 1985. Loans are interest-free until the discontinuance of full-time studies or graduation. Interest rates are prescribed by the Government. Student bursaries, study grants and other varieties of loan forgiveness are available to students who meet specific criteria.
The administration and delivery of the federal and provincial student loans programs is integrated. The Government approves applications for both provincial and federal loans, external agencies are contracted to disburse, administer and collect loans, and the federal government is responsible for collection of loans in default.
Student loans approved between August 1996 and July 2001 are lender-financed, disbursed, managed and collected by a bank. The Government retained responsibility for loan approval during this period, and pays a risk premium of 5.0 per cent to the bank when loans become repayable.
A loss provision of $51.4 million (2006 — $52.7 million) has been recorded on these loans.
Agricultural Loans
Capital loan program
The Government holds $28.3 million (2006 — $35.7 million) in loans under the Capital loan program. These loans are repayable over terms not exceeding 25 years and bear interest at rates between 5.0 and 13.5 per cent (2006 — 5.0 and 13.5 per cent). Security on individual loans varies and may include mortgages on real property, security agreements and guarantees. The program operates under The Agricultural Credit Corporation of Saskatchewan Act. A loss provision of $7.3 million (2006 — $10.2 million) has been recorded on these loans.
Other agricultural loans
The Government holds $17.4 million (2006 — $19.7 million) in loans under various other agricultural loan programs. The interest on these loans ranges from 5.0 to 10.5 per cent (2006 — 5.0 to 10.5 per cent). Generally, the loans are secured by promissory notes and, where applicable, by guarantees or general security arrangements. A loss provision of $11.3 million (2006 — $11.3 million) has been recorded on these loans.
Other Loans
The Government’s loan portfolio also consists of numerous other loans at various interest rates. Maturities on these loans extend to 2022. A loss provision of $14.8 million (2006 — $15.2 million) has been recorded on these loans.
Mortgages
Mortgages are repayable, at various interest rates, over terms not exceeding 35 years. Security on the mortgages may include promissory notes or charges against residential property. A loss provision of $0.2 million (2006 — $0.1 million) has been recorded on these mortgages.
| Government of Saskatchewan - 2006-07 Public Accounts | 59 |
Summary Financial Statements
| | | | | |
|---|
| Investment in Government Business Enterprises | | | | | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| SaskEnergy | SaskPower | SaskTel | SLGA | SGC |
|---|
| Assets | | | | | | | | | | | | | | | | | |
| Cash and temporary investments | | | | | | | | | | | | | | | | | |
| Due from government organizations | | | | -- | | | -- | | | -- | | | 38,320 | | | -- | |
| Other | | | | (2,362 | ) | | 19,861 | | | 16,110 | | | 1,119 | | | 9,201 | |
| Accounts receivable | | | | | | | | | | | | | | | | | |
| Due from government organizations | | | | -- | | | -- | | | -- | | | -- | | | -- | |
| Other | | | | 170,310 | | | 185,863 | | | 95,518 | | | 34,689 | | | 149 | |
| Inventories | | | | 7,029 | | | 139,215 | | | 8,170 | | | 20,240 | | | 176 | |
| Prepaid expenses | | | | -- | | | 5,789 | | | 18,804 | | | 3,453 | | | 160 | |
| Long-term investments | | | | | | | | | | | | | | | | | |
| In the Government | | | | -- | | | -- | | | -- | | | -- | | | -- | |
| Other | | | | 25,145 | | | 31,814 | | | 2,299 | | | -- | | | -- | |
| Capital assets | | | | 955,169 | | | 3,694,756 | | | 958,643 | | | 59,212 | | | 62,564 | |
| Other assets | | | | | | | | | | | | | | | | | |
| Due from government organizations | | | | -- | | | -- | | | -- | | | -- | | | -- | |
| Other | | | | 164,569 | | | 86,028 | | | 107,410 | | | -- | | | -- | |
|
| Total Assets | | | | 1,319,860 | | | 4,163,326 | | | 1,206,954 | | | 157,033 | | | 72,250 | |
|
| Liabilities | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities | | | | | | | | | | | | | | | | | |
| Due to government organizations | | | | 12,107 | | | 60,539 | | | 5,098 | | | -- | | | -- | |
| Other | | | | 170,744 | | | 153,761 | | | 127,590 | | | 20,951 | | | 7,948 | |
| Dividends payable to government organizations | | | | 12,200 | | | 10,019 | | | 12,500 | | | 101,093 | | | 27,641 | |
| Public debt (schedule 9) | | | | | | | | | | | | | | | | | |
| Owing to government organizations | | | | 705,188 | | | 2,223,628 | | | 310,769 | | | -- | | | -- | |
| Other | | | | 7,621 | | | 89,861 | | | 7,458 | | | -- | | | 28,708 | |
| Unearned revenue | | | | -- | | | -- | | | 55,762 | | | -- | | | -- | |
| Unpaid insurance claims | | | | -- | | | -- | | | -- | | | -- | | | -- | |
| Other liabilities | | | | -- | | | 157,245 | | | 207 | | | 34,989 | | | 7,953 | |
|
| Total Liabilities | | | | 907,860 | | | 2,695,053 | | | 519,384 | | | 157,033 | | | 72,250 | |
|
| Net Assets | | | | 412,000 | | | 1,468,273 | | | 687,570 | | | -- | | | -- | |
|
| Revenue | | | | | | | | | | | | | | | | | |
| From government organizations | | | | 15,276 | | | 50,980 | | | 36,556 | | | -- | | | -- | |
| Other | | | | 1,238,670 | | | 1,410,168 | | | 978,576 | | | 784,100 | | | 112,230 | |
|
| Total Revenue | | | | 1,253,946 | | | 1,461,148 | | | 1,015,132 | | | 784,100 | | | 112,230 | |
|
| Expense | | | | | | | | | | | | | | | | | |
| Paid and owing to government organizations | | | | 60,629 | | | 268,826 | | | 53,519 | | | -- | | | -- | |
| Other | | | | 1,164,791 | | | 1,099,656 | | | 889,224 | | | 413,205 | | | 77,368 | |
|
| Total Expense 3 | | | | 1,225,420 | | | 1,368,482 | | | 942,743 | | | 413,205 | | | 77,368 | |
|
| Income (loss) before non-recurring items | | | | 28,526 | | | 92,666 | | | 72,389 | | | 370,895 | | | 34,862 | |
| Non-recurring items 4 | | | | 24,631 | | | -- | | | 114 | | | -- | | | -- | |
|
| Net Income (Loss) | | | | 53,157 | | | 92,666 | | | 72,503 | | | 370,895 | | | 34,862 | |
| Retained earnings, beginning of year | | | | 323,878 | | | 775,846 | | | 415,067 | | | -- | | | -- | |
| Effect of prior period adjustment | | | | -- | | | -- | | | -- | | | (842 | ) | | -- | |
| Dividends to government organizations | | | | (34,500 | ) | | (60,232 | ) | | (50,000 | ) | | (370,053 | ) | | (34,862 | ) |
|
| Retained earnings, end of year | | | | 342,535 | | | 808,280 | | | 437,570 | | | -- | | | -- | |
| Equity advances from government organizations | | | | 71,531 | | | 659,993 | | | 250,000 | | | -- | | | -- | |
| Accumulated other comprehensive income 5 | | | | (2,066 | ) | | -- | | | -- | | | -- | | | -- | |
|
| Net Assets | | | | 412,000 | | | 1,468,273 | | | 687,570 | | | -- | | | -- | |
|
| 1 | Net assets are restricted as disclosed on page 62. |
| | • | reclassifying dividends paid by March 31, 2007; |
| | • | accounting for the Saskatchewan Auto Fund policy holder rebates approved in 2006 and 2007; and |
| | • | reversing losses recognized by government business enterprises on transactions with government organizations. |
| 3 | Total expense includes debt charges, net of sinking fund earnings, of $249.9 million (2006 restated — $229.4 million). Interest in the amount of $249.6 million (2006 restated — $226.1 million) was paid to government organizations. |
| 4 | Non-recurring items include $24.6 million (2006 — $53.6 million) received from government organizations. |
| 5 | Accumulated other comprehensive income primarily consists of market value adjustments on investments and includes a $57.1 million (2006 — $65.8 million) current period net unrealized gain and $126.1 million (2006 - $60.3 million) accumulated from prior years. |
| 60 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| MFC | SGI | Auto Fund 1 | WCB 1 | SGGF | Adjustments 2 | 2007 | 2006 |
|---|
| |
| |
| 5 | | | | -- | | | -- | | | -- | | | -- | | | -- | | | 38,325 | | | 40,142 | |
| -- | | | | 24,054 | | | 24,748 | | | 62,956 | | | 3,327 | | | (45,097 | ) | | 113,917 | | | 258,186 | |
| |
| -- | | | | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 4,712 | |
| 916 | | | | 97,622 | | | 151,415 | | | 41,469 | | | 55 | | | -- | | | 778,006 | | | 730,751 | |
| -- | | | | -- | | | -- | | | -- | | | -- | | | -- | | | 174,830 | | | 170,125 | |
| -- | | | | 79,800 | | | 23,815 | | | -- | | | -- | | | -- | | | 131,821 | | | 121,812 | |
| |
| -- | | | | 6,763 | | | 14,246 | | | 6,473 | | | -- | | | -- | | | 27,482 | | | 32,442 | |
| 31,846 | | | | 439,712 | | | 1,061,637 | | | 1,184,664 | | | 104 | | | -- | | | 2,777,221 | | | 2,505,957 | |
| -- | | | | 10,881 | | | 41,925 | | | 16,529 | | | -- | | | -- | | | 5,799,679 | | | 5,638,276 | |
| |
| -- | | | | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 6,000 | |
| 86 | | | | 3,631 | | | -- | | | -- | | | -- | | | 3,217 | | | 364,941 | | | 377,751 | |
|
| 32,853 | | | | 662,463 | | | 1,317,786 | | | 1,312,091 | | | 3,486 | | | (41,880 | ) | | 10,206,222 | | | 9,886,154 | |
|
| |
| |
| -- | | | | 13,063 | | | 28,103 | | | 8,599 | | | -- | | | -- | | | 127,509 | | | 133,614 | |
| 291 | | | | 39,964 | | | 28,188 | | | 17,366 | | | 478 | | | -- | | | 567,281 | | | 585,787 | |
| -- | | | | 17,378 | | | -- | | | -- | | | -- | | | (52,097 | ) | | 128,734 | | | 142,413 | |
| |
| 20,367 | | | | -- | | | -- | | | -- | | | -- | | | -- | | | 3,259,952 | | | 3,293,210 | |
| -- | | | | -- | | | -- | | | -- | | | -- | | | -- | | | 133,648 | | | 140,862 | |
| -- | | | | 165,153 | | | 258,636 | | | -- | | | -- | | | -- | | | 479,551 | | | 445,321 | |
| -- | | | | 263,514 | | | 763,554 | | | 933,200 | | | -- | | | -- | | | 1,960,268 | | | 1,857,067 | |
| -- | | | | 1,792 | | | -- | | | 141,254 | | | 200 | | | 99,978 | | | 443,618 | | | 341,083 | |
|
| 20,658 | | | | 500,864 | | | 1,078,481 | | | 1,100,419 | | | 678 | | | 47,881 | | | 7,100,561 | | | 6,939,357 | |
|
| 12,195 | | | | 161,599 | | | 239,305 | | | 211,672 | | | 2,808 | | | (89,761 | ) | | 3,105,661 | | | 2,946,797 | |
|
| |
| -- | | | | -- | | | 4,081 | | | 21,868 | | | -- | | | 7,000 | | | 135,761 | | | 121,284 | |
| 1,705 | | | | 321,358 | | | 637,021 | | | 286,897 | | | 1,447 | | | -- | | | 5,772,172 | | | 5,519,195 | |
|
| 1,705 | | | | 321,358 | | | 641,102 | | | 308,765 | | | 1,447 | | | 7,000 | | | 5,907,933 | | | 5,640,479 | |
|
| |
| 783 | | | | 12,775 | | | 47,326 | | | 8,599 | | | -- | | | 565 | | | 453,022 | | | 430,622 | |
| 25 | | | | 254,894 | | | 492,638 | | | 281,278 | | | 1,856 | | | 1,366 | | | 4,676,301 | | | 4,491,511 | |
|
| 808 | | | | 267,669 | | | 539,964 | | | 289,877 | | | 1,856 | | | 1,931 | | | 5,129,323 | | | 4,922,133 | |
|
| 897 | | | | 53,689 | | | 101,138 | | | 18,888 | | | (409 | ) | | 5,069 | | | 778,610 | | | 718,346 | |
| -- | | | | (1,588 | ) | | (44,097 | ) | | -- | | | (500 | ) | | (55,881 | ) | | (77,321 | ) | | (535 | ) |
|
| 897 | | | | 52,101 | | | 57,041 | | | 18,888 | | | (909 | ) | | (50,812 | ) | | 701,289 | | | 717,811 | |
| 11,298 | | | | 63,364 | | | 198,323 | | | 7,438 | | | 3,716 | | | (39,798 | ) | | 1,759,132 | | | 1,617,150 | |
| -- | | | | -- | | | (16,059 | ) | | -- | | | -- | | | 842 | | | (16,059 | ) | | -- | |
| -- | | | | (33,866 | ) | | -- | | | -- | | | -- | | | -- | | | (583,513 | ) | | (575,829 | ) |
|
| 12,195 | | | | 81,599 | | | 239,305 | | | 26,326 | | | 2,807 | | | (89,768 | ) | | 1,860,849 | | | 1,759,132 | |
| -- | | | | 80,000 | | | -- | | | -- | | | 1 | | | 7 | | | 1,061,532 | | | 1,061,532 | |
| -- | | | | -- | | | -- | | | 185,346 | | | -- | | | -- | | | 183,280 | | | 126,133 | |
|
| 12,195 | | | | 161,599 | | | 239,305 | | | 211,672 | | | 2,808 | | | (89,761 | ) | | 3,105,661 | | | 2,946,797 | |
|
| Government of Saskatchewan - 2006-07 Public Accounts | 61 |
Summary Financial Statements
| | | | | |
|---|
| Investment in Government Business Enterprises (continued) | | | | Schedule 4 | |
SaskEnergy Incorporated (SaskEnergy)
SaskEnergy promotes, transports, stores and distributes natural gas in Saskatchewan.
Saskatchewan Power Corporation (SaskPower)
SaskPower generates, purchases, transmits, distributes and sells electricity and related products and services.
Saskatchewan Telecommunications Holding Corporation (SaskTel)
SaskTel markets and supplies a range of voice, data, internet, wireless, text, image and entertainment products, systems and services. Through interconnection agreements, SaskTel is part of the national and global communications network.
Liquor and Gaming Authority (SLGA)
SLGA’s main functions are to control the manufacture and distribution of beverage alcohol throughout the Province, to oversee the licensing of all establishments selling alcohol in the Province and to maintain the integrity of all licensed gaming while ensuring maximum benefit to Saskatchewan charities.
Saskatchewan Gaming Corporation (SGC)
SGC manages and operates Casino Regina and Casino Moose Jaw.
Municipal Financing Corporation of Saskatchewan (MFC)
MFC’s objective is to assist municipalities in financing their capital requirements.
Saskatchewan Government Insurance (SGI) and Saskatchewan Auto Fund (Auto Fund)
SGI’s competitive general insurance business, SGI CANADA, offers a comprehensive line of home, tenant, farm, automobile extension and commercial coverages.
The Auto Fund, the provincial compulsory vehicle insurance program, is administered by SGI on behalf of the Government. Any net assets of the Auto Fund are held on behalf of Saskatchewan’s motoring public and cannot be used for any other purpose.
Workers’ Compensation Board (Saskatchewan) (WCB)
WCB provides workers’ compensation insurance to Saskatchewan workers and employers. Any net assets of the WCB cannot be used for any other purpose.
Saskatchewan Government Growth Fund Management Corporation (SGGF)
SGGF participates in the federal government’s Immigrant Investor Program to acquire lower cost capital for commercial investment in Saskatchewan. Investment funds are raised through eight subsidiary fund companies and are managed by Crown Capital Partners Inc., a fund manager.
In March 1999, the Immigrant Investor Program ended. However, with a significant number of subscribers yet to complete their subscription requirements, the funds will require management by SGGF for at least the next four years.
| 62 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Other Investments | | | | Schedule 5 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007 | 2006 |
|---|
| Equity Investments | | | | | | | | |
| Saskferco Products Inc. | | | | 127,714 | | | 129,537 | |
| Meadow Lake OSB Limited Partnership | | | | 34,334 | | | 34,963 | |
| Big Sky Farms Inc. | | | | 29,318 | | | 26,477 | |
| Government Business Partnerships | | | | 93,512 | | | 119,072 | |
| Other | | | | 35,354 | | | 16,713 | |
|
| | | | | 320,232 | | | 326,762 | |
|
| Portfolio Investments | | | | | | | | |
| HARO Financial Corporation | | | | 68,000 | | | 68,000 | |
| Other | | | | 30,811 | | | 20,954 | |
|
| | | | | 98,811 | | | 88,954 | |
|
| Bonds, Debentures and Other Advances | | | | | | | | |
| HARO Financial Corporation | | | | 15,598 | | | 15,448 | |
| Meadow Lake Pulp Limited Partnership | | | | 13,439 | | | -- | |
| Other | | | | 210,626 | | | 184,857 | |
|
| | | | | 239,663 | | | 200,305 | |
|
| Property Holdings | | | | 90 | | | 3,154 | |
|
| Total Other Investments | | | | 658,796 | | | 619,175 | |
|
Saskferco Products Inc. (Saskferco)
The Government owns 68.4 million Class B common shares equivalent to a 49.5 per cent voting interest in Saskferco, a nitrogen fertilizer plant in Belle Plaine.
Meadow Lake OSB Limited Partnership (ML OSB)
The Government is a limited partner in ML OSB, an oriented strand board facility near Meadow Lake. The Government holds a 25 per cent interest in ML OSB. The Government has issued options to purchase its units of ML OSB, which, if exercised, would reduce the Government’s interest to 6.8 per cent.
Big Sky Farms Inc. (Big Sky)
The Government owns 4.4 million (2006 — 4.4 million) common shares equivalent to a 41.2 per cent (2006 — 44.7 per cent) interest in Big Sky, a hog production operation headquartered in Humboldt.
| Government of Saskatchewan - 2006-07 Public Accounts | 63 |
Summary Financial Statements
| | | | | |
|---|
| Other Investments (continued) | | | | Schedule 5 | |
Government Business Partnerships
The Government has invested in government business partnerships to promote economic growth and provide an economic return. The Government’s investment in government business partnerships includes:
| • | a 50 per cent interest in NewGrade Energy Inc., which operates a heavy oil upgrading plant in Regina; |
| • | a 33.3 per cent interest in Foragen Technologies Limited Partnership, a venture capital fund which provides seed capital to technology corporations; and |
| • | a 33.1 per cent interest in Centennial Foodservice and Centennial 67 Partnership (Centennial Foods), value-added food manufacturing and distribution businesses in Saskatoon. |
As the Government expects to dispose of its remaining interest in Centennial Foods in 2007, its investment has been reclassified to assets held for sale and is disclosed on schedule 2.
Condensed financial information for Government Business Partnerships is as follows:
| 2007 | 2006 |
|---|
| Assets | | | | | | | | |
| Capital assets | | | | 12,670 | | | 11,951 | |
| Other | | | | 306,836 | | | 386,213 | |
|
| Total Assets | | | | 319,506 | | | 398,164 | |
|
| Liabilities | | | | | | | | |
| Debt | | | | 10,795 | | | 31,218 | |
| Other | | | | 123,201 | | | 132,130 | |
|
| Total Liabilities | | | | 133,996 | | | 163,348 | |
|
| Net Assets | | | | 185,510 | | | 234,816 | |
|
| Revenue | | | | 1,929,752 | | | 1,947,736 | |
| Expense | | | | 1,757,706 | | | 1,736,739 | |
|
| Net Income | | | | 172,046 | | | 210,997 | |
| Retained earnings, beginning of year | | | | 510,124 | | | 299,127 | |
|
| Retained earnings, end of year | | | | 682,170 | | | 510,124 | |
| Equity advances/share capital (net of partnership distributions) | | | | (496,660 | ) | | (274,678 | ) |
| Unrealized gains and losses | | | | -- | | | (630 | ) |
|
| Net Assets | | | | 185,510 | | | 234,816 | |
|
| Investment in Government Business Partnerships | | | | | | | | |
| Government's share of retained earnings, end of year | | | | 332,653 | | | 252,068 | |
| Government's investment 1 | | | | (216,924 | ) | | (112,074 | ) |
| Adjustments 2 | | | | (22,217 | ) | | (20,922 | ) |
|
| Total Investment in Government Business Partnerships 3 | | | | 93,512 | | | 119,072 | |
|
| 1 | Government’s investment includes the Government’s initial investment net of partnership distributions as well as subsequent cash injections provided under various terms and conditions. |
| | • | additional operating expenses incurred by the Government's subsidiaries through which the Government has made these investments; and |
| | • | certain valuation and amortization adjustments. |
| 3 | Total investment in government business partnerships consists of: |
| 2007
| 2006
|
|---|
| | NewGrade Energy Inc. | | | 91,671 | | | 116,827 | |
| | Foragen Technologies Limited Partnership | | | 1,841 | | | 2,245 | |
|
| | | | | 93,512 | | | 119,072 | |
|
| 64 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Other Investments (continued) | | | | Schedule 5 | |
HARO Financial Corporation (HARO)
In 1992, the Government entered into a Term Loan agreement with HARO. The loan was for an initial five-year term with a maximum of four five-year renewal terms at the option of HARO. In 2002, the Government agreed to renew this loan for a third five-year term. Annual interest rates on the loan are fixed at the start of each renewal term. For the third five-year term, the interest rate on the loan is 5.5 per cent compounded annually.
Security for the loan is 100 per cent of HARO’s assets, which consist primarily of HARO’s 65.2 per cent interest in Crown Life Insurance Company (Crown Life) shares.
Payment of principal and interest is subject to available cash flow as defined in the loan agreement. Due to collection uncertainty, the Government will record interest income when payments are received. The total interest deferred and owing to the Government at March 31, 2007 is $211.1 million (2006 — $199.3 million).
All unpaid principal and interest is due on December 15, 2017. On that date, any amounts outstanding will convert to 100 per cent of HARO equity shares. The Government has a unilateral right, prior to December 15, 2017, to convert the loan to either HARO non-voting, HARO voting or Crown Life shares. Any conversion may be subject to regulatory approval.
The Government owns 68 million HARO Class B non-voting common shares, which entitle the Government to a maximum of 100 per cent of participation rights with respect to dividends and remaining property of HARO on its liquidation or dissolution. Subject to regulatory approval, the Government has a unilateral right to exchange at any time the Class B shares for voting shares or HARO’s assets.
Meadow Lake Pulp Limited Partnership (MLPLP)
In addition to its government partnership interest in MLPLP, as disclosed in note 6, the Government has made several loans to MLPLP with interest rates ranging from 6 to 15 per cent (2006 — 6.0 to 11.5 per cent). During 2005-06, the Government reduced the carrying value of these loans to nil due to the uncertainty of cash flows from MLPLP. As a result of the ongoing liquidation of the remaining MLPLP assets, these loans have now been valued at the expected proceeds to be received by the Government. Accordingly, a recovery of the loan losses of $21.4 million has been recorded during the year.
| Government of Saskatchewan - 2006-07 Public Accounts | 65 |
Summary Financial Statements
| | | | | |
|---|
| Accounts Payable and Accrued Liabilities | | | | Schedule 6 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Transfers | | | | | | | | |
| Federal government | | | | 255,208 | | | 236,633 | |
| Other | | | | 262,013 | | | 210,666 | |
| Equalization and Canada Health and Social Transfer repayable | | | | | | | | |
| to the federal government | | | | 362,011 | | | 398,394 | |
| Accrued salaries and benefits | | | | 356,137 | | | 350,449 | |
| Supplier payments | | | | 260,213 | | | 215,896 | |
| Accrued interest | | | | 141,719 | | | 141,992 | |
| Other | | | | 146,323 | | | 136,920 | |
|
| Total Accounts Payable and Accrued Liabilities | | | | 1,783,624 | | | 1,690,950 | |
|
| | | | | |
|---|
| Other Liabilities | | | | Schedule 7 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Funds held on behalf of government business enterprises and others | | | | | | | | |
| Liquor and Gaming Authority | | | | 41,119 | | | 39,993 | |
| Other | | | | 46,993 | | | 54,650 | |
| Capital lease obligations (note 5) | | | | 48,353 | | | 59,650 | |
| Other | | | | 36,946 | | | 44,002 | |
|
| Total Other Liabilities | | | | 173,411 | | | 198,295 | |
|
| | | | | |
|---|
| Unearned Revenue | | | | Schedule 8 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Housing contributions | | | | 138,597 | | | 131,583 | |
| Motor vehicle licensing fees | | | | 35,227 | | | 34,800 | |
| Health contributions | | | | 26,362 | | | 26,468 | |
| Crown mineral leases | | | | 17,198 | | | 17,259 | |
| Other | | | | 33,299 | | | 31,662 | |
|
| Total Unearned Revenue | | | | 250,683 | | | 241,772 | |
|
| 66 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Public Debt | | | | Schedule 9 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Gross
Debt 1
| Sinking
Funds
(schedule 10)
| Public
Debt
| Public
Debt
|
|---|
| Government Service Organizations | | | | | | | | | | | | | | |
| General Revenue Fund 2 | | | | 8,148,029 | | | (903,091 | ) | | 7,244,938 | | | 7,197,223 | |
| Saskatchewan Crop Insurance Corporation | | | | 115,800 | | | -- | | | 115,800 | | | 153,000 | |
| Regional Health Authorities | | | | 84,154 | | | -- | | | 84,154 | | | 102,621 | |
| Saskatchewan Housing Corporation | | | | 96,089 | | | (46,303 | ) | | 49,786 | | | 53,676 | |
| Saskatchewan Water Corporation | | | | 34,970 | | | (389 | ) | | 34,581 | | | 33,328 | |
| Information Services Corporation of Saskatchewan | | | | 24,547 | | | -- | | | 24,547 | | | 36,500 | |
| Saskatchewan Opportunities Corporation | | | | 18,000 | | | -- | | | 18,000 | | | 3,000 | |
| Investment Saskatchewan Inc. | | | | 10,919 | | | -- | | | 10,919 | | | 60,761 | |
| Other | | | | 2,563 | | | -- | | | 2,563 | | | 2,659 | |
|
| Total Government Service Organizations 3 | | | | 8,535,071 | | | (949,783 | ) | | 7,585,288 | | | 7,642,768 | |
|
| Government Business Enterprises | | | | | | | | | | | | | | |
| Saskatchewan Power Corporation | | | | 2,614,431 | | | (213,678 | ) | | 2,400,753 | | | 2,369,164 | |
| SaskEnergy Incorporated | | | | 721,074 | | | (39,523 | ) | | 681,551 | | | 720,484 | |
| Saskatchewan Telecommunications Holding Corporation | | | | 368,374 | | | (52,031 | ) | | 316,343 | | | 355,135 | |
| Saskatchewan Gaming Corporation | | | | 28,708 | | | -- | | | 28,708 | | | 32,895 | |
| Municipal Financing Corporation of Saskatchewan | | | | 22,276 | | | (275 | ) | | 22,001 | | | 13,139 | |
|
| Total Government Business Enterprises 4 | | | | 3,754,863 | | | (305,507 | ) | | 3,449,356 | | | 3,490,817 | |
|
| Public Debt 5 | | | | 12,289,934 | | | (1,255,290 | ) | | 11,034,644 | | | 11,133,585 | |
|
| 1 | The average effective interest rate on gross debt during 2006-07 was 6.7 per cent (2005-06 — 6.9 per cent) and includes the impact of foreign exchange and the amortization of any premiums or discounts associated with the debentures. The average term to maturity of gross debt outstanding at March 31, 2007 is 11.8 years (2006 — 10.4 years). |
| | Gross debt includes Canada Pension Plan debentures of $851.4 million (2006 — $885.4 million). These debentures are callable in whole or in part before maturity, on 30 days prior notice, at the option of the Minister of Finance of Saskatchewan. |
| 2 | General Revenue Fund debt is shown net of $3,316.5 million (2006 — $3,350.7) reimbursable from government business enterprises and $240.5 million (2006 — $280.3 million) reimbursable from government service organizations. |
| 3 | Gross debt of government service organizations includes $98.5 million (2006 — $104.9 million) primarily secured by buildings with a carrying value of $134.2 million at March 31, 2007 (2006 — $167.7 million). |
| 4 | Schedule 4 provides information on government business enterprises as presented in their audited financial statements closest to March 31, 2007. Public debt of government business enterprises shown above has been adjusted from the audited financial statements to March 31, 2007 for the following government business enterprises, in the following amounts: |
| | 2007
| 2006
|
|---|
| | Saskatchewan Power Corporation | | | | | | 87,264 | | | 72,060 | |
| | SaskEnergy Incorporated | | | | | | (31,258 | ) | | (13,932 | ) |
| | Saskatchewan Telecommunications Holding Corporation | | | | | | (1,884 | ) | | (1,409 | ) |
| | Municipal Financing Corporation of Saskatchewan | | | | | | 1,634 | | | 26 | |
|
| | | | | | | | 55,756 | | | 56,745 | |
|
| 5 | Public debt payable in U.S. dollars of 91.7 million (2006 — 100.3 million) has been restated to $105.7 million Canadian (2006 — $117.0 million) at the exchange rate in effect at March 31, 2007 of 1.1529 (2006 — 1.1671). |
| Government of Saskatchewan - 2006-07 Public Accounts | 67 |
Summary Financial Statements
| | | | | |
|---|
| Public Debt (continued) | | | | Schedule 9 | |
Debt principal payment requirements in each of the next five years and thereafter are as follows:
| | 2007
| 2006
|
|---|
| Year of Maturity
| Government
Service
Organizations
| Government
Business
Enterprises
| Total
| Total
|
|---|
| | | | Short-term promissory notes | | | | 178,254 | | | 44,946 | | | 223,200 | | | 150,800 | |
| | | | 2006-07 | | | | -- | | | -- | | | -- | | | 1,334,858 | |
| | | | 2007-08 | | | | 452,562 | | | 431,626 | | | 884,188 | | | 892,495 | |
| | | | 2008-09 | | | | 513,866 | | | 123,318 | | | 637,184 | | | 717,834 | |
| | | | 2009-10 | | | | 898,552 | | | 51,318 | | | 949,870 | | | 956,804 | |
| | | | 2010-11 | | | | 495,376 | | | 179,640 | | | 675,016 | | | 808,444 | |
| | | | 2011-12 | | | | 473,012 | | | 6,648 | | | 479,660 | | | -- | |
| | | | 6-10 years | | | | 3,240,547 | | | 343,615 | | | 3,584,162 | | | 3,306,903 | |
| | | | Thereafter | | | | 2,282,902 | | | 2,573,752 | | | 4,856,654 | | | 4,070,547 | |
|
| | | | Gross debt a | | | | 8,535,071 | | | 3,754,863 | | | 12,289,934 | | | 12,238,685 | |
| | | | Sinking funds | | | | (949,783 | ) | | (305,507 | ) | | (1,255,290 | ) | | (1,105,100 | ) |
|
| | | | Public Debt | | | | 7,585,288 | | | 3,449,356 | | | 11,034,644 | | | 11,133,585 | |
|
a
| Gross debt includes debentures of $210.5 million (2006 — $410.5 million) that provide the holder with a choice of dates on which the debt matures. The year of maturity reflects the earliest possible date of maturity rather than the maximum term to maturity. |
| 68 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Sinking Funds | | | | Schedule 10 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2006
| 2007
|
|---|
| Sinking
Funds
| Contributions 1
| Earnings 2
| Redemptions 3
| Currency
Adjustment
| Sinking
Funds
|
|---|
| Government Service Organizations | | | | | | | | | | | | | | | | | | | | |
| General Revenue Fund | | | | 797,231 | | | 62,721 | | | 45,576 | | | -- | | | (2,437 | ) | | 903,091 | |
| Saskatchewan Housing Corporation | | | | 43,298 | | | 585 | | | 2,420 | | | -- | | | -- | | | 46,303 | |
| Saskatchewan Water Corporation | | | | 63 | | | 317 | | | 9 | | | -- | | | -- | | | 389 | |
| Investment Saskatchewan Inc. | | | | 6,158 | | | -- | | | 49 | | | (6,207 | ) | | -- | | | -- | |
|
| Sinking Funds of Government Service Organizations | | | 846,750 | | | 63,623 | | | 48,054 | | | (6,207 | ) | | (2,437 | ) | | 949,783 | |
|
| |
| Government Business Enterprises | | | | | | | | | | | | | | | | | | | | |
| Saskatchewan Power Corporation | | | | 179,931 | | | 22,853 | | | 10,894 | | | -- | | | -- | | | 213,678 | |
| Saskatchewan Telecommunications Holding | | | | | | | | | | | | | | | | | | | | |
| Corporation | | | | 46,086 | | | 3,266 | | | 2,679 | | | -- | | | -- | | | 52,031 | |
| SaskEnergy Incorporated | | | | 32,171 | | | 5,290 | | | 2,062 | | | -- | | | -- | | | 39,523 | |
| Municipal Financing Corporation of Saskatchewan | | | | 162 | | | 100 | | | 13 | | | -- | | | -- | | | 275 | |
|
| Sinking Funds of Government Business Enterprises | | | | 258,350 | | | 31,509 | | | 15,648 | | | -- | | | -- | | | 305,507 | |
|
| Total Sinking Funds 4 | | | | 1,105,100 | | | 95,132 | | | 63,702 | | | (6,207 | ) | | (2,437 | ) | | 1,255,290 | |
|
| 1 | Annual contributions, when established by Order in Council, are set at not less than 1.0 per cent of debentures outstanding. The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements are: |
| | Government
Service
Organizations a
| Government
Business
Enterprises
| Total
|
|---|
| | 2007-08 | 68,645 | 32,135 | 100,780 |
| | 2008-09 | 71,645 | 30,205 | 101,850 |
| | 2009-10 | 67,021 | 29,955 | 96,976 |
| | 2010-11 | 61,061 | 29,955 | 91,016 |
| | 2011-12 | 56,521 | 28,255 | 84,776 |
|
| | | 324,893 | 150,505 | 475,398 |
|
| | a Each year includes contributions for U.S. dollar debt of $1.2 million. |
| 2 | Sinking fund earnings include gains on investment sales of $6.8 million (2006 - $34.4 million). |
| 3 | The redemption value is based on the market value of the sinking fund units at the date of redemption. |
| 4 | The market value of sinking funds, at March 31, 2007, is $1,287.7 million (2006 - $1,128.2 million).
Sinking fund assets have been invested as follows: |
|
| | | 2007 | 2006 |
| | Long-term investments in securities of: |
| | Government of Saskatchewan; coupon interest range 4.2% to 10.2%; maturing in 5.8 to 33.2 years | 432,662 | 321,332 |
| | Other provincial governments; coupon interest range 4.3% to 9.5%; maturing in 4.8 to 32.9 years | 455,015 | 464,267 |
| | Government of Canada; coupon interest range 4.0% to 6.0%; maturing in 4.2 to 26.2 years | 195,903 | 100,334 |
| | Government of the United States; coupon interest range 4.5% to 4.6%; maturing in 9.9 to 28.9 years | 19,964 | 13,521 |
| | Cash, short-term investments and accrued interest a | 151,746 | 205,646 |
|
| | Total Sinking Funds b | 1,255,290 | 1,105,100 |
|
| | a Cash, short-term investments and accrued interest include $0 (2006 — $19.6 million) Government of Saskatchewan securities and are disclosed net of $1.1 million (2006 — $1.3 million) in liabilities. |
| | b Included in total sinking funds are U.S. dollar cash, investments and accrued interest converted to $211.4 million Canadian (2006 — $203.9 million) at the exchange rate in effect at March 31, 2007 of 1.1529 (2006 — 1.1671). |
| Government of Saskatchewan - 2006-07 Public Accounts | 69 |
Summary Financial Statements
| | | | | |
|---|
| Guaranteed Debt | | | | Schedule 11 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| The Farm Financial Stability Act | | | | | | | | |
| Breeder and Feeder associations | | | | 25,195 | | | 26,123 | |
| The Agricultural Credit Corporation of Saskatchewan Act | | | | | | | | |
| BSE Livestock Loan Guarantee Program | | | | 13,983 | | | 22,040 | |
| The NewGrade Energy Inc. Act | | | | | | | | |
| NewGrade Energy Inc. | | | | 6,111 | | | 17,684 | |
| The Crown Corporations Act, 1993 | | | | | | | | |
| NewGrade Energy Inc. | | | | 4,675 | | | 13,520 | |
| Other | | | | 12,587 | | | 15,212 | |
|
| Total Guaranteed Debt 1 | | | | 62,551 | | | 94,579 | |
|
| 1 | In addition to the amount shown, there is a contingent liability for interest accrued on these items. Also, the Government has guaranteed debt, denominated in U.S. dollars, issued by Saskferco Products Inc. The debt of $24.2 million Canadian is fully offset by Saskferco Products Inc.‘s equity in a sinking fund.
Total guaranteed debt is net of a loss provision of $5.0 million (2006 — $7.1 million). |
Breeder and Feeder Associations
The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each cattle association are limited to $6 million under both the breeder and feeder options. Guarantees for each bison association are limited to $5 million under the feeder option. Guarantees for each sheep association are limited to $4 million under both the breeder and feeder options.
BSE Livestock Loan Guarantee Program
The Government has guaranteed certain loans of livestock producers affected by export market restrictions on cattle. The loans are due in 2009.
NewGrade Energy Inc. (NewGrade)
The Government has guaranteed certain long-term debt of NewGrade to a maximum of $360 million. A significant portion of this guarantee relates to U.S. denominated debt. Thus, the amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar.
The Government has also indemnified the Government of Canada for its guarantee of NewGrade’s long-term debt, to a maximum of $275 million.
| 70 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Pension Liabilities | | | | Schedule 12 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| TSP 1 | PSSP | Others | Total | Total |
|---|
| Accrued benefit obligation, | | | | | | | | | | | | | | | | | |
| beginning of year | | | | 4,825,284 | | | 1,763,072 | | | 355,175 | | | 6,943,531 | | | 6,102,619 | |
| Current benefit cost | | | | 57,101 | | | 20,360 | | | 4,428 | | | 81,889 | | | 73,663 | |
| Plan amendment | | | | -- | | | 90,000 | | | 433 | | | 90,433 | | | -- | |
| Interest cost | | | | 263,817 | | | 90,349 | | | 15,838 | | | 370,004 | | | 382,590 | |
| Actuarial (gains) losses | | | | -- | | | (3,581 | ) | | 986 | | | (2,595 | ) | | 742,256 | |
| Joint defined benefit plan (SHEPP) 2 | | | | -- | | | -- | | | (41,168 | ) | | (41,168 | ) | | 24,189 | |
| Benefit payments | | | | (285,642 | ) | | (105,376 | ) | | (15,427 | ) | | (406,445 | ) | | (381,786 | ) |
|
| Accrued Benefit Obligation, End of Year | | | | 4,860,560 | | | 1,854,824 | | | 320,265 | | | 7,035,649 | | | 6,943,531 | |
|
| Plan assets, beginning of year | | | | 1,460,911 | | | -- | | | 184,748 | | | 1,645,659 | | | 1,742,130 | |
| Return on plan assets | | | | 97,303 | | | -- | | | 12,816 | | | 110,119 | | | 122,044 | |
| Employer contributions | | | | 115,477 | | | 100,054 | | | 5,061 | | | 220,592 | | | 196,376 | |
| Employee contributions | | | | 15,696 | | | 5,322 | | | 438 | | | 21,456 | | | 22,504 | |
| Plan expenses | | | | (3,905 | ) | | -- | | | (597 | ) | | (4,502 | ) | | (7,255 | ) |
| Actuarial gains (losses) | | | | -- | | | -- | | | 718 | | | 718 | | | (48,354 | ) |
| Benefit payments | | | | (285,642 | ) | | (105,376 | ) | | (15,427 | ) | | (406,445 | ) | | (381,786 | ) |
|
| Plan Assets, End of Year 3 | | | | 1,399,840 | | | -- | | | 187,757 | | | 1,587,597 | | | 1,645,659 | |
|
| | | | | 3,460,720 | | | 1,854,824 | | | 132,508 | | | 5,448,052 | | | 5,297,872 | |
| Unamortized estimation adjustments 4 | | | | (616,163 | ) | | (135,372 | ) | | (12,050 | ) | | (763,585 | ) | | (985,886 | ) |
|
| Total Pension Liabilities 5 | | | | 2,844,557 | | | 1,719,452 | | | 120,458 | | | 4,684,467 | | | 4,311,986 | |
|
| 1 | The TSP accrued benefit obligation includes a liability of $32.0 million (2006 —$35.9 million) relating to the TSP disability provision. The TSP’s actual rate of return on plan assets was 13.3 per cent (2006 — 16.0 per cent). |
| 2 | The joint defined benefit plan includes only the Government’s employer portion of the pension liability. At December 31, 2006, the SHEPP had a total accrued benefit obligation of $2,676.8 million (2005 — $2,469.6 million) and pension fund assets of $2,697.1 million (2005 — $2,407.5 million) at market related values and unamortized estimation adjustment gains of $72.8 million (2005 — $77.5 million). The market value of the pension fund investments was $2,862.0 million (2005 — $2,536.1 million). Of this amount 34.2 per cent (2005 — 38.0 per cent) was invested in fixed income securities and 64.6 per cent (2005 — 60.9 per cent) in equity investments. The Government and member contributions to the plan totalled $69.6 million (2005 — $60.3 million) and $67.9 million (2005 — $59.5 million) respectively. Benefit payments from the plan totalled $91.8 million (2005 — $81.4 million). |
| 3 | At March 31, 2007, the market value of defined benefit plan investments was $1,994.4 million (2006 — $1,935.9 million). Of this amount 44.0 per cent (2006 — 43.2 per cent) was invested in fixed income securities and 45.2 per cent (2006 — 49.1 per cent) in equity investments. |
| 4 | Amortized to pension expense over periods ranging from 1 to 13 years, which is the expected average remaining service life of active plan members at the time the estimation adjustments arose. |
| 5 | The total pension liabilities are based on the latest actuarial valuations extrapolated to March 31, 2007 for the defined benefit plans and December 31, 2006 for the joint defined benefit plan. Changes in assumptions can result in significantly higher or lower estimates of pension liabilities. A one per cent decrease in the discount rate would result in a $610.3 million and $231.9 million increase in the pension liabilities for the TSP and the PSSP respectively, and a one per cent increase would result in a $500.2 million and $191.0 million decrease in the pension liabilities for the TSP and the PSSP respectively. |
| Government of Saskatchewan - 2006-07 Public Accounts | 71 |
Summary Financial Statements
| | | | | |
|---|
| Tangible Capital Assets | | | | Schedule 13 | |
| As at March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Land &
Improve-
ments | Buildings &
Improve-
ments | Machinery
&
Equipment | Trans-
portation
Equipment | Office &
Information
Technology | Infra-
structure | Total | Total |
|---|
Estimated useful life
| 3 years-
Indefinite
| 3-50 years
| 2-33 years
| 3-40 years
| 2-25 years
| 3-60 years
| | |
|---|
| Opening Net Book Value of | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tangible Capital Assets 1 | | | | 195,505 | | | 1,434,097 | | | 227,006 | | | 142,905 | | | 116,586 | | | 1,848,786 | | | 3,964,885 | | | 3,941,915 | |
|
| |
| Opening cost | | | | 212,980 | | | 2,552,218 | | | 827,825 | | | 249,577 | | | 330,408 | | | 3,405,074 | | | 7,578,082 | | | 7,456,523 | |
| Acquisitions | | | | 1,632 | | | 144,798 | | | 69,288 | | | 58,861 | | | 31,712 | | | 144,284 | | | 450,575 | | | 407,492 | |
| Write downs | | | | (750 | ) | | (541 | ) | | (15,455 | ) | | -- | | | (912 | ) | | (272 | ) | | (17,930 | ) | | (187,177 | ) |
| Disposals | | | | (1,691 | ) | | (8,236 | ) | | (5,761 | ) | | (26,663 | ) | | (13,861 | ) | | (26,543 | ) | | (82,755 | ) | | (98,756 | ) |
|
| Closing cost 2 | | | | 212,171 | | | 2,688,239 | | | 875,897 | | | 281,775 | | | 347,347 | | | 3,522,543 | | | 7,927,972 | | | 7,578,082 | |
|
| |
| Opening accumulated amortization | | | | 17,475 | | | 1,118,121 | | | 600,819 | | | 106,672 | | | 213,822 | | | 1,556,288 | | | 3,613,197 | | | 3,514,608 | |
| Annual amortization | | | | 1,449 | | | 95,393 | | | 52,121 | | | 13,970 | | | 25,369 | | | 97,083 | | | 285,385 | | | 298,092 | |
| Write downs | | | | (140 | ) | | (398 | ) | | (15,278 | ) | | -- | | | (908 | ) | | (10 | ) | | (16,734 | ) | | (114,886 | ) |
| Disposals | | | | (61 | ) | | (6,233 | ) | | (5,136 | ) | | (15,145 | ) | | (13,789 | ) | | (26,489 | ) | | (66,853 | ) | | (84,617 | ) |
|
| Closing accumulated amortization | | | | 18,723 | | | 1,206,883 | | | 632,526 | | | 105,497 | | | 224,494 | | | 1,626,872 | | | 3,814,995 | | | 3,613,197 | |
|
| |
| Closing Net Book Value of | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tangible Capital Assets 1 | | | | 193,448 | | | 1,481,356 | | | 243,371 | | | 176,278 | | | 122,853 | | | 1,895,671 | | | 4,112,977 | | | 3,964,885 | |
|
| 1 | Net book value of tangible capital assets does not include the following: |
| | • | works of art and historical treasures, such as the Legislative Building; |
| | • | intangible assets and items inherited by right of the Crown, such as Crown lands, forests, water and mineral resources, which are not recognized in these financial statements; and |
| | • | capital assets held by government business enterprises, as disclosed in schedule 4. |
| 2 | Closing cost includes work-in-progress of $151.7 million (2006 — $79.4 million). |
| 72 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Revenue | | | | Schedule 14 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007 | 2006 |
|---|
| Taxation | | | | | | | | |
| Individual income | | | | 1,668,538 | | | 1,447,905 | |
| Sales | | | | 1,079,794 | | | 1,112,350 | |
| Corporation income | | | | 554,001 | | | 393,629 | |
| Corporation capital | | | | 513,458 | | | 524,650 | |
| Fuel | | | | 383,576 | | | 376,426 | |
| Tobacco | | | | 190,334 | | | 171,107 | |
| Other | | | | 96,056 | | | 90,908 | |
|
| Total Taxation | | | | 4,485,757 | | | 4,116,975 | |
|
| |
| Non-renewable Resources | | | | | | | | |
| Oil | | | | 1,318,852 | | | 1,124,952 | |
| Natural gas | | | | 165,131 | | | 269,074 | |
| Potash | | | | 161,729 | | | 277,967 | |
| Other | | | | 48,540 | | | 49,107 | |
|
| Total Non-renewable Resources | | | | 1,694,252 | | | 1,721,100 | |
|
| |
| Other Own-source Revenue | | | | | | | | |
| Fees | | | | | | | | |
| Motor vehicle licensing | | | | 138,908 | | | 135,183 | |
| Health care | | | | 124,269 | | | 124,648 | |
| Subsidized housing rental | | | | 84,419 | | | 81,321 | |
| Other | | | | 375,103 | | | 365,929 | |
| Investment income | | | | | | | | |
| Interest and dividends | | | | 163,540 | | | 127,230 | |
| Earnings from equity investments (schedule 18) | | | | 97,726 | | | 148,602 | |
| Gain on sale of other investments (schedule 18) | | | | 5,114 | | | 7,884 | |
| Insurance | | | | 108,135 | | | 127,580 | |
| Other | | | | 333,781 | | | 332,695 | |
|
| Total Other Own-source Revenue | | | | 1,430,995 | | | 1,451,072 | |
|
| Total Own-source Revenue | | | | 7,611,004 | | | 7,289,147 | |
|
| |
| Transfers from the Federal Government | | | | | | | | |
| Canada Health Transfer | | | | 716,775 | | | 659,558 | |
| Canada Social Transfer | | | | 323,599 | | | 298,756 | |
| Crop insurance contributions | | | | 76,110 | | | 109,586 | |
| Housing subsidy | | | | 69,762 | | | 63,329 | |
| Equalization | | | | 12,723 | | | 88,672 | |
| Other | | | | 353,121 | | | 238,652 | |
|
| Total Transfers from the Federal Government | | | | 1,552,090 | | | 1,458,553 | |
|
| Total Revenue | | | | 9,163,094 | | | 8,747,700 | |
|
| Government of Saskatchewan - 2006-07 Public Accounts | 73 |
Summary Financial Statements
| | | | | |
|---|
| Debt Charges | | | | Schedule 15 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Total interest costs | | | | 1,030,333 | | | 1,097,687 | |
| Interest reimbursed from government business enterprises | | | | (257,214 | ) | | (267,182 | ) |
| Net foreign exchange loss | | | | 2,787 | | | 2,167 | |
| Other costs | | | | 6,870 | | | 7,968 | |
|
| Total Debt Charges | | | | 782,776 | | | 840,640 | |
|
| | | | | |
|---|
| Expense by Object | | | | Schedule 16 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Transfers | | | | 3,787,818 | | | 3,544,449 | |
| Salaries and benefits | | | | 2,889,969 | | | 2,604,710 | |
| Operating costs | | | | 1,283,851 | | | 1,175,220 | |
| Debt charges | | | | 782,776 | | | 840,640 | |
| Tangible capital asset amortization | | | | 285,385 | | | 298,092 | |
| Other | | | | 260,636 | | | 323,424 | |
|
| Total Expense | | | | 9,290,435 | | | 8,786,535 | |
|
| | | | | |
|---|
| Comparison of Estimated to Actual Results | | | | Schedule 17 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Estimated 1
| Actual 1
| Actual
|
|---|
| General Revenue Fund | | | | 101,908 | | | 292,704 | | | 400,466 | |
| Fiscal Stabilization Fund | | | | (75,000 | ) | | -- | | | 139,000 | |
| Saskatchewan Infrastructure Fund | | | | -- | | | 105,090 | | | -- | |
| Other Treasury Board Organizations | | | | (326,633 | ) | | (97,363 | ) | | (129,096 | ) |
|
| Treasury Board Organizations 2 | | | | (299,725 | ) | | 300,431 | | | 410,370 | |
| CIC Board Organizations 2 | | | | 149,722 | | | 237,252 | | | 80,373 | |
|
| | | | | (150,003 | ) | | 537,683 | | | 490,743 | |
| Not-for-Profit Insurance Organizations | | | | 37,063 | | | 36,265 | | | 188,233 | |
|
| Surplus (Deficit) | | | | (112,940 | ) | | 573,948 | | | 678,976 | |
|
| 1 | Presented on the basis of the summary financial budget, which is included in the Provincial Budget. |
| 2 | Net of dividends from other government organizations. |
| 74 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
| | | | | |
|---|
| Gains and Losses on Other Investments | | | | Schedule 18 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Earnings (Losses) from Equity Investments | | | | | | | | |
| NewGrade Energy Inc. 1 | | | | 79,844 | | | 103,318 | |
| Saskferco Products Inc. | | | | 15,136 | | | 27,167 | |
| Big Sky Farms Inc. | | | | 2,281 | | | 6,698 | |
| Meadow Lake OSB Limited Partnership | | | | 1,751 | | | 11,939 | |
| Other | | | | (1,286 | ) | | (520 | ) |
|
| | | | | 97,726 | | | 148,602 | |
| Gain on sale of other investments | | | | 5,114 | | | 7,884 | |
| Recovery of (provision for) loss | | | | 21,322 | | | (20,127 | ) |
|
| Net Gain on Other Investments | | | | 124,162 | | | 136,359 | |
|
| 1 | Net of purchase premium amortization of $1.7 million (2006 - $1.7 million). |
| | | | | |
|---|
| Other Non-cash Items Included in Surplus | | | | Schedule 19 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Amortization of tangible capital assets (schedule 13) | | | | 285,385 | | | 298,092 | |
| Net loss on disposal of tangible capital assets | | | | 8,713 | | | 8,350 | |
| Amortization of foreign exchange loss | | | | 2,787 | | | 2,166 | |
| Write downs of tangible capital assets | | | | 1,196 | | | 72,291 | |
| Net (reduction) addition to provision for loss on loans and mortgages | | | | (4,544 | ) | | 5,498 | |
| Earnings retained in sinking funds | | | | (48,054 | ) | | (64,775 | ) |
| Net gain on other investments | | | | (124,162 | ) | | (136,359 | ) |
|
| Total Other Non-cash Items Included in Surplus | | | | 121,321 | | | 185,263 | |
|
| | | | | |
|---|
| Net Change in Non-cash Operating Activities | | | | Schedule 20 | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| (Increase) decrease in accounts receivable | | | | (66,195 | ) | | 39,219 | |
| Decrease in inventories held for resale | | | | 101 | | | 13,856 | |
| Decrease in deferred charges | | | | 6,607 | | | 25,572 | |
| Increase (decrease) in accounts payable and accrued liabilities | | | | 92,674 | | | (17,895 | ) |
| Increase in unearned revenue | | | | 8,911 | | | 17,279 | |
| (Increase) decrease in prepaid expenses | | | | (2,908 | ) | | 4,753 | |
| Increase in inventories held for consumption | | | | (10,045 | ) | | (335 | ) |
|
| Net Change in Non-cash Operating Activities | | | | 29,145 | | | 82,449 | |
|
| Government of Saskatchewan - 2006-07 Public Accounts | 75 |
Summary Financial Statements
| | | | | |
|---|
| Segment Disclosure | | | | | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| Treasury Board
Organizations
|
|---|
| 2007
| 2006
|
|---|
| Revenue | | | | | | | | |
| Taxation | | | | 4,485,757 | | | 4,116,975 | |
| Non-renewable resources | | | | 1,694,252 | | | 1,721,100 | |
| Transfers from Government entities | | | | 167,000 | | | 221,000 | |
| Other own-source revenue | | | | 1,021,006 | | | 988,612 | |
| Transfers from the federal government | | | | 1,475,980 | | | 1,348,967 | |
|
| Total Revenue | | | | 8,843,995 | | | 8,396,654 | |
|
| Expense | | | | | | | | |
| Agriculture | | | | 389,997 | | | 457,114 | |
| Community development | | | | 318,514 | | | 294,495 | |
| Debt charges | | | | 773,123 | | | 822,403 | |
| Economic development | | | | 137,094 | | | 122,804 | |
| Education | | | | 1,691,705 | | | 1,413,920 | |
| Environment and natural resources | | | | 195,463 | | | 146,353 | |
| Health | | | | 3,379,066 | | | 3,221,618 | |
| Protection of persons and property | | | | 362,214 | | | 320,636 | |
| Social services and assistance | | | | 842,648 | | | 827,139 | |
| Transportation | | | | 351,518 | | | 308,690 | |
| Other | | | | 507,157 | | | 432,061 | |
|
| Total Expense | | | | 8,948,499 | | | 8,367,233 | |
|
| Surplus (deficit) from government service organizations | | | | (104,504 | ) | | 29,421 | |
| Income from government business enterprises | | | | 404,935 | | | 380,949 | |
|
| Surplus | | | | 300,431 | | | 410,370 | |
|
The Summary financial statements segments are based on the accountability and control relationships between the Government and the various organizations within the government reporting entity.
Treasury Board organizations include the General Revenue Fund, the Fiscal Stabilization Fund, the Saskatchewan Infrastructure Fund and organizations such as Regional Health Authorities and the Liquor and Gaming Authority.
CIC Board organizations are agencies that are responsible to the Crown Investment Corporation of Saskatchewan (CIC) and include organizations such as Saskatchewan Power Corporation, Saskatchewan Telecommunications Holding Corporation and Investment Saskatchewan Inc.
Not-for-profit insurance organizations are intended to be actuarially sound over the long-term. They typically adjust their rates to break even over the longer term and include Saskatchewan Auto Fund, Saskatchewan Crop Insurance Corporation, Crop Reinsurance Fund of Saskatchewan and Workers’ Compensation Board (Saskatchewan).
Schedule 22 lists the organizations included in each segment.
| 76 | Government of Saskatchewan - 2006-07 Public Accounts |
Summary Financial Statements
CIC Board Organizations
| Not-for-Profit Insurance
Organization
| Eliminations
| | |
|---|
2007
| 2006
| 2007
| 2006
| 2007
| 2006
| 2007
| 2006
|
|---|
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 4,485,757 | | | 4,116,975 | |
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 1,694,252 | | | 1,721,100 | |
| | -- | | | -- | | | 86,237 | | | 98,863 | | | (253,237 | ) | | (319,863 | ) | | -- | | | -- | |
| | 321,794 | | | 353,711 | | | 88,195 | | | 108,749 | | | -- | | | -- | | | 1,430,995 | | | 1,451,072 | |
| | -- | | | -- | | | 76,110 | | | 109,586 | | | -- | | | -- | | | 1,552,090 | | | 1,458,553 | |
|
| | 321,794 | | | 353,711 | | | 250,542 | | | 317,198 | | | (253,237 | ) | | (319,863 | ) | | 9,163,094 | | | 8,747,700 | |
|
| |
| | -- | | | 1,052 | | | 228,475 | | | 152,778 | | | (81,757 | ) | | (98,863 | ) | | 536,715 | | | 512,081 | |
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 318,514 | | | 294,495 | |
| | 7,930 | | | 11,342 | | | 6,203 | | | 6,895 | | | (4,480 | ) | | -- | | | 782,776 | | | 840,640 | |
| | 90,663 | | | 248,586 | | | -- | | | -- | | | -- | | | -- | | | 227,757 | | | 371,390 | |
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 1,691,705 | | | 1,413,920 | |
| | 17,031 | | | 27,810 | | | -- | | | -- | | | -- | | | -- | | | 212,494 | | | 174,163 | |
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 3,379,066 | | | 3,221,618 | |
| | 37,382 | | | 35,614 | | | -- | | | -- | | | -- | | | -- | | | 399,596 | | | 356,250 | |
| | -- | | | -- | | | -- | | | -- | | | -- | | | -- | | | 842,648 | | | 827,139 | |
| | 21,116 | | | 20,178 | | | -- | | | -- | | | -- | | | -- | | | 372,634 | | | 328,868 | |
| | 19,373 | | | 13,910 | | | -- | | | -- | | | -- | | | -- | | | 526,530 | | | 445,971 | |
|
| | 193,495 | | | 358,492 | | | 234,678 | | | 159,673 | | | (86,237 | ) | | (98,863 | ) | | 9,290,435 | | | 8,786,535 | |
|
| | 128,299 | | | (4,781 | ) | | 15,864 | | | 157,525 | | | (167,000 | ) | | (221,000 | ) | | (127,341 | ) | | (38,835 | ) |
| | 275,953 | | | 306,154 | | | 20,401 | | | 30,708 | | | -- | | | -- | | | 701,289 | | | 717,811 | |
|
| | 404,252 | | | 301,373 | | | 36,265 | | | 188,233 | | | (167,000 | ) | | (221,000 | ) | | 573,948 | | | 678,976 | |
|
| Government of Saskatchewan - 2006-07 Public Accounts | 77 |
Summary Financial Statements
| | | | | |
|---|
| Government Reporting Entity | | | | Schedule 22 | |
| | | |
| | | |
Government Service Organizations (Consolidated)
|
|---|
Agricultural Credit Corporation of Saskatchewan
Agricultural Implements Board
Agri-Food Innovation Fund
Beef Development Board
Board of Governors, Uranium City Hospital
Cattle Marketing Deductions Fund
Commercial Revolving Fund
Community Initiatives Fund
Correctional Facilities Industries Revolving Fund
Crop Reinsurance Fund of Saskatchewan 8b
Crown Investments Corporation of Saskatchewan
(non-consolidated) 6 7c 8a
Extended Health Care Plan 4
Extended Health Care Plan for Certain Other Employees 7c
First Nations and Métis Fund Inc. 1 7c 8a
Fiscal Stabilization Fund
Fish and Wildlife Development Fund
General Revenue Fund
Government House Foundation
Gradworks Inc. 7c 8a
Health Quality Council
Highways Revolving Fund 2
Horned Cattle Fund
Individual Cattle Feeder Loan Guarantee Provincial Assurance Fund
Information Services Corporation of Saskatchewan 7c 8a
Investment Saskatchewan Inc. 7c 8a
Law Reform Commission of Saskatchewan
Livestock Services Revolving Fund
Milk Control Board 7c
North Sask Laundry and Support Services Ltd. 3
Northern Revenue Sharing Trust Account 7c
Oil and Gas Environmental Fund
Operator Certification Board
Pastures Revolving Fund
Prairie Agricultural Machinery Institute
Public Employees Benefits Agency Revolving Fund
Public Employees Dental Fund 7c
Public Employees Disability Income Fund 7c
Public Employees Group Life Insurance Fund 7c
Queen’s Printer Revolving Fund
Regional Colleges 7a
Regional Health Authorities
Resource Protection and Development Revolving Fund
Saskatchewan Agricultural Stabilization Fund
Saskatchewan Apprenticeship and Trade Certification Commission 7a | | Saskatchewan Archives Board
Saskatchewan Arts Board
Saskatchewan Association of Health Organizations
Saskatchewan Cancer Agency 5a
Saskatchewan Centre of the Arts Fund
Saskatchewan Communications Network Corporation
Saskatchewan Crop Insurance Corporation 8b
Saskatchewan Development Fund Corporation 7c 8a
Saskatchewan Grain Car Corporation 7b
Saskatchewan Health Information Network
Saskatchewan Health Research Foundation
Saskatchewan Heritage Foundation
Saskatchewan Housing Corporation 7c
Saskatchewan Infrastructure Fund 1
Saskatchewan Institute of Applied Science and Technology 7a
Saskatchewan Legal Aid Commission
Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation
Saskatchewan Opportunities Corporation 7c 8a
Saskatchewan Research Council
Saskatchewan Snowmobile Fund
Saskatchewan Student Aid Fund
Saskatchewan Transportation Company 7c 8a
Saskatchewan Water Corporation 7c 8a
Saskatchewan Watershed Authority
Saskatchewan Western Development Museum
Sask911 Account
St. Louis Alcoholism Rehabilitation Centre
Technology Supported Learning Revolving Fund 5b
Training Completions Fund
Transportation Partnerships Fund
Victims’ Fund
Water Appeal Board
Government Business Enterprises (Modified Equity)
Liquor and Gaming Authority
Municipal Financing Corporation of Saskatchewan 7c
Saskatchewan Auto Fund 7c 8b
Saskatchewan Gaming Corporation
Saskatchewan Government Growth Fund
Management Corporation 7c 8a
Saskatchewan Government Insurance 7c 8a
Saskatchewan Power Corporation 7c 8a
Saskatchewan Telecommunications Holding Corporation 7c 8a
SaskEnergy Incorporated 7c 8a
Workers’ Compensation Board (Saskatchewan) 7c 8b |
| 1 | Organization established during 2006-07. |
| 2 | Organization wound up during 2006-07. |
| 3 | Organization determined to be part of the government reporting entity during 2006-07. |
| 4 | Organization determined to be a trust during 2006-07 and, as a result, it is no longer part of the government reporting entity. |
| 5 | Name changed during 2006-07 from: a Saskatchewan Cancer Foundation; b Saskatchewan Correspondence School Revolving Fund. |
| 6 | Includes the financial activities of the organization’s subsidiaries, CIC Economic Holdco and CIC Equity Holding Corporation, which were established during 2006-07. |
| 7 | The year-ends of certain organizations differ from March 31, 2007: a June 2006; b July 2006; c December 2006 |
| 8 | For segment disclosure (schedule 21) certain organizations are classified into categories other than Treasury Board Organizations as follows: a CIC Board Organizations; b Not-for-Profit Insurance Organizations |
| 78 | Government of Saskatchewan - 2006-07 Public Accounts |
Supplementary Information (unaudited)
Supplementary Information
| | | | | |
|---|
Fiscal Stabilization Fund
Schedule of Tranfers and Accumulated Balance | | | | | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2007
| 2006
|
|---|
| Budget
| Actual
| Actual
|
|---|
| Balance, beginning of year | | | | 887,500 | | | 887,500 | | | 748,500 | |
| Transfer from (to) the General Revenue Fund | | | | (75,000 | ) | | -- | | | 139,000 | |
|
| Balance, End of Year | | | | 812,500 | | | 887,500 | | | 887,500 | |
|
The Fiscal Stabilization Fund (Fund) was established April 1, 2000, by The Fiscal Stabilization Fund Act. Its purpose is to stabilize the fiscal position of the Government to facilitate long-term planning. Stabilization occurs through transfers between the Fund and the General Revenue Fund (GRF), as approved from time to time by Treasury Board.
Transfers to the Fund from the GRF are statutory disbursements. Amounts transferred to the GRF from the Fund are available for expenses subsequent to receiving required approval from the Legislative Assembly.
In January 2007, the GRF extinguished its liability to the Fund by transferring cash and temporary investments with a value of $887.5 million to the Fund.
The Fund balance is invested in temporary investments that generally carry a term of less than 90 days. At March 31, 2007, these investments had an average effective interest rate of 4.30 per cent.
In accordance with The Fiscal Stabilization Fund Act, all earnings on the Fund’s investments are credited to the GRF. For 2006-07, this amount was $7.5 million, however the Fund only held interest bearing assets from January 18, 2007 until March 31, 2007. Prior to January 18, 2007, the Fund balance was a non-interest bearing amount receivable from the GRF.
| Government of Saskatchewan - 2006-07 Public Accounts | 81 |
Summary Financial Statements
| | | | | |
|---|
Saskatchewan Infrastructure Fund
Schedule of Tranfers and Accumulated Balance | | | | | |
| For the Year Ended March 31, 2007 | | |
| (thousands of dollars) | | |
| 2006
| 2007
|
|---|
| Balance
at March 31
| Transfers
from the GRF
| Transfers
to the GRF
| Balance
at March 31
|
|---|
| Building Communities Program | | | | -- | | | 100,000 | | | 12,087 | | | 87,913 | |
| Municipal Infrastructure | | | | -- | | | 17,177 | | | -- | | | 17,177 | |
|
| Balance, End of Year | | | | -- | | | 117,177 | | | 12,087 | | | 105,090 | |
|
The Saskatchewan Infrastructure Fund (Fund) was established December 6, 2006, by The Infrastructure Fund Act. Its purpose is to provide moneys that may be used to support the provision and maintenance of infrastructure in Saskatchewan. This occurs through transfers between the Fund and the General Revenue Fund (GRF), as approved from time to time by Treasury Board.
Transfers to the Fund from the GRF are attached to a specific purpose. Amounts transferred to the GRF from the Fund are allocated through a legislated appropriation. Transfers to/from the Fund are recorded as expenses/revenues of the GRF.
The Fund balance is invested in temporary investments that generally carry a term of less than 90 days. At March 31, 2007, these investments had an average effective interest rate of 4.32 per cent.
In accordance with The Infrastructure Fund Act, all earnings on the Fund’s investments are credited to the GRF. For 2006-07, this amount was $0.4 million.
No comparison to budgeted amounts has been made because the Fund was not part of the 2006-07 budget.
| 82 | Government of Saskatchewan - 2006-07 Public Accounts |
Supplementary Information
General Revenue Fund - Public Issue Debentures
As at March 31, 2007
(dollars)
Date of
Issue | Date of
Maturity | Interest
Rate
% | Interest
Payments | Currency | Purpose of
Issue | Amount
Outstanding | Total Issue
Outstanding | Equity of
Applicable
Sinking Fund | Sinking Fund
Contribution
2006-07 |
|---|
|
|---|
| May 15/97 | May 15/07 | 6.65 | Semiannual | Can. | SaskEnergy | 30,000,000
| 30,000,000 | 3,799,651 | 300,000 |
(Canadian medium term note; Non-callable; This book-based note is
held in the Canadian Depository for Securities) | | | | |
| |
| July 15/02 | July 15/07 | 4.00 | Annual | Can. | GRF | 18,918,000
| 18,918,000 | -- | -- |
(Savings Bond; Redeemable annually at the option of the holder or
anytime on the death of the holder; The Province reserves the right
to increase the interest rate after July 14, 2003; Payable at any
Saskatchewan branch of a chartered bank, trust company and the
Credit Union Central of Saskatchewan) | | | | |
| |
| Jan. 31/02 | Sept. 6/07 | 5.00 | Semiannual | Can. | GRF | 400,000,000
| 400,000,000 | -- | -- |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | | |
| |
| March 2/83 | March 1/08 | 9.00 | Annual | Can. | SaskEnergy | 50,000,000
| 50,000,000 | -- | -- |
| (Non-callable; Payable in London and Toronto) | | | | |
| |
| March 15/93 | March 15/08 | 7.698 | Semiannual | Can. | SaskPower | 262,989,200
| 262,989,200 | 55,312,227 | 2,630,000 |
(The original 7.125% 194,000,000 U.S. dollar debentures have been swapped
into Canadian dollars with an effective interest rate of 7.698%; Non-callable;
Payable in New York) | | | |
| |
| Nov. 28/97 | May 28/08 | 5.50 | Semiannual | Can. | GRF | 20,000,000
| 20,000,000 | 2,533,101 | 200,000 |
(Canadian medium term note; Non-callable; This book-based note is
held in the Canadian Depository for Securities) | | | | |
| |
| Feb. 26/98 | June 2/08 | 5.50 | Semiannual | Can. | GRF
SaskEnergy
Sask Housing | 368,500,000
25,000,000
6,500,000
|
400,000,000 |
48,837,293 |
4,000,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | | |
| |
| July 15/03 | July 15/08 | 4.00 | Annual | Can. | GRF | 28,155,300
| 28,155,300 | -- | -- |
(Savings Bond; Redeemable annually at the option of the holder or
any time on the death of the holder; The Province reserves the right to
increase the interest rate after July 14, 2004; Payable at any
Saskatchewan branch of a chartered bank, trust company and the Credit
Union Central of Saskatchewan) | | | |
| |
| Sept. 24/03 | Sept. 5/08 | 3.90-5.75 | Semiannual | Can. | Sask Crop | 50,000,000
| 50,000,000 | -- | -- |
(Canadian medium term note; Extendible at the option of the holder to
September 5, 2033; This note pays interest at 3.90% to September 5,
2008, and 5.75% thereafter; This book-based note is held in the
Canadian Depository for Securities) | | | |
| |
| Feb. 13/02 | Feb. 13/09 | 5.05-6.30 | Semiannual | Can. | Sask Housing
GRF | 24,500,000
5,500,000
|
30,000,000 |
27,716,358 |
673,750 |
(Canadian medium term note; Extendible at the option of the holder to
February 13, 2032; This note pays interest at 5.05% to February 13, 2009,
and 6.30% thereafter; This book-based note is held in the Canadian
Depository for Securities) | | | |
| |
| Aug. 3/04 | June 17/09 | 4.00-5.50 | Semiannual | Can. | GRF | 26,000,000
| 26,000,000 | 567,517 | 260,000 |
(Canadian medium term note; If not redeemed by the holder on
June 17, 2009, this note matures on June 17, 2019; This note pays
interest of 4.00% to June 17, 2009 and 5.50% thereafter; This book-
based note is held in the Canadian Depository for Securities) | | | |
| |
| July 15/04 | July 15/09 | 4.00 | Annual | Can. | GRF | 5,891,100
| 5,891,100 | -- | -- |
(Savings Bond; Redeemable annually at the option of the holder or
any time on the death of the holder; The Province reserves the right to
increase the interest rate after July 14, 2005; Payable at any
Saskatchewan branch of a chartered bank, trust company and the Credit
Union Central of Saskatchewan) | | | |
| |
| Government of Saskatchewan - 2006-07 Public Accounts | 83 |
Supplementary Information
General Revenue Fund - Public Issue Debentures (continued)
Date of
Issue | Date of
Maturity | Interest
Rate
% | Interest
Payments | Currency | Purpose of
Issue | Amount
Outstanding | Total Issue
Outstanding | Equity of
Applicable
Sinking Fund | Sinking Fund
Contribution
2006-07 |
|---|
|
|---|
| Sept. 24/02 | Sept. 24/09 | 4.75 | Annual | Can. | GRF
Sask Crop
Sask Water | 195,500,000
50,000,000
4,500,000
|
250,000,000 |
-- |
-- |
| (Euro medium term note; Non-callable; Payable in London) | | | |
| |
| Nov. 12/99 | Nov. 12/09 | 6.50 | Semiannual | Can. | GRF | 250,000,000
| 250,000,000 | 22,156,242 | 2,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Jan. 18/90 | Jan. 18/10 | 10.00 | Semiannual | Can. | GRF | 300,000,000
| 300,000,000 | 103,079,001 | 3,000,000 |
(Non-callable; Payable at any Canadian branch of the Royal Bank of
Canada) | | | |
| |
| July 15/05 | July 15/10 | 4.00 | Annual | Can. | GRF | 17,506,100
| 17,506,100 | -- | -- |
(Savings Bond; Redeemable annually at the option of the holder or any
time on the death of the holder; The Province reserves the right to increase
the interest rate after July 14, 2006; Payable at any Saskatchewan branch
of a chartered bank, trust company and the Credit Union Central of
Saskatchewan) | | | |
| |
| Sept. 1/00 | Sept. 1/10 | 6.15 | Semiannual | Can. | GRF
SaskTel
SaskEnergy | 380,000,000
90,000,000
80,000,000
|
550,000,000 |
40,852,334 |
5,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| July 15/06 | July 15/11 | 4.00 | Annual | Can. | GRF | 256,412,700
| 256,412,700 | -- | -- |
| (Savings Bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 2007; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) | | | |
| |
| June 10/03 | Sept. 5/11 | 4.75-5.80 | Semiannual | Can. | GRF | 104,500,000
| 104,500,000 | 5,473,121 | 1,045,000 |
(Canadian medium term note; Extendible at the option of the holder to
September 5, 2033; This note pays interest at 4.75% to September 5,
2011, and 5.80% thereafter; This book-based note is held in the
Canadian Depository for Securities) | | | |
| |
| Sept. 20/02 | Dec. 3/12 | 5.25 | Semiannual | Can. | GRF
SaskEnergy | 300,000,000
50,000,000
|
350,000,000 |
15,872,113 |
3,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Feb. 2/93 | Feb. 1/13 | 7.613 | Semiannual | Can. | GRF | 568,212,000
| 568,212,000 | 119,711,263 | 5,682,120 |
(The original 8% 400,000,000 U.S. dollar debentures have been swapped
into Canadian dollars at an interest rate of 7.613%; Non-callable; Payable
in New York) | | | |
| |
| June 17/03 | June 17/13 | 4.75 | Annual | Can. | GRF
MFC | 195,000,000
5,000,000
|
200,000,000 |
6,808,435 |
2,000,000 |
| (Euro medium term note; Non-callable; Payable in London) | | | |
| |
| July 20/93 | July 15/13 | 7.375
7.809
7.753 | Semiannual | U.S.
Can.
Can. | GRF
SaskPower
GRF | 50,000,000*
97,147,500
228,639,500
|
375,787,000 | 41,456,794*
29,816,680 |
3,907,900 |
(175,000,000 U.S. dollars of the GRF's 225,000,000 U.S. dollar share of the
7.375% debenture issue has been swapped into Canadian dollars at an
interest rate of 7.753%. Interest payments on the remaining 50,000,000 U.S.
dollars have been swapped into Canadian dollars at an interest rate of 7.912%;
Sask Power's 75,000,000 U.S. dollar share of the 7.375% debenture issue
has been swapped into Canadian dollars at an interest rate of 7.809%;
Non-callable; Payable in New York) | | | |
| |
| Sept. 30/03 | Dec. 3/13 | 4.90 | Semiannual | Can. | GRF | 200,000,000
| 200,000,000 | 6,555,724 | 2,000,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| 84 | Government of Saskatchewan - 2006-07 Public Accounts |
Supplementary Information
General Revenue Fund - Public Issue Debentures (continued)
Date of
Issue | Date of
Maturity | Interest
Rate
% | Interest
Payments | Currency | Purpose of
Issue | Amount
Outstanding | Total Issue
Outstanding | Equity of
Applicable
Sinking Fund | Sinking Fund
Contribution
2006-07 |
|---|
|
|---|
| March 14/91 | April 10/14 | 10.25 | Semiannual | Can. | GRF | 583,916,000
| 583,916,000 | 168,637,206 | 5,839,160 |
(Non-callable; Payable at any Canadian branch of the Royal Bank of
Canada) | | | |
| |
| June 22/04 | June 3/14 | 5.25 | Semiannual | Can. | GRF
SaskEnergy | 250,000,000
50,000,000
|
300,000,000 |
6,548,267 |
3,000,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Dec. 1/65 | Dec. 1/15 | 5.125 | Semiannual | Can. | GRF
U.of S. | 852,245
238,457
|
1,090,702 |
-- |
-- |
(Payable in blended semi-annual payments of principal and interest
totalling $76,399.60; Payable in whole or in part any time prior to
December 1, 2015, without penalty; Payable in Ottawa) | | | |
| |
| June 3/05 | Dec. 3/15 | 4.25 | Semiannual | Can. | GRF
SaskEnergy
MFC | 145,000,000
50,000,000
5,000,000
|
200,000,000 |
4,195,609 |
2,000,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Nov. 15/05 | Jan. 15/16 | 4.305 | Semiannual | Can. | GRF | 274,654,700
| 274,654,700 | 2,785,165 | 2,746,575 |
(This issue was reopened on December 31, 2006, and an additional
100,000,000 Swiss Franc debentures were sold; The original 2.125%
300,000,000 Swiss Franc debentures have been swapped into Canadian
dollars at an interest rate of 4.305%; Non-callable; Payable in Zurich) | | | |
| |
| Aug. 23/06 | Aug. 23/16 | 4.50 | Semiannual | Can. | GRF | 300,000,000
| 300,000,000 | -- | -- |
(Non-callable; This book-based note is held in the Canadain Depository
for Securities) | | | |
| |
| Sept. 17/96 | Sept. 17/16 | 7.93 | Semiannual | Can. | Sask Water
GRF | 1,949,000
11,394,000
|
13,343,000 |
-- |
-- |
(Canadian medium term serial note; Payable in annual instalments;
Non-callable; Payable in Regina) | | | |
| |
| June 17/04 | June 17/19 | 5.00 | Semiannual | Can. | GRF | 33,000,000
| 33,000,000 | 720,309 | 330,000 |
(Canadian medium term note; After June 17, 2014, this note pays interest
at the three month bankers' acceptance rate less 0.245%; Non-callable;
This book-based note is held in the Canadian Depository for Securities) | | | |
| |
| Dec. 20/90 | Dec. 15/20 | 9.375
9.653
10.08
9.965 | Semiannual | U.S.
Can.
Can.
Can. | GRF
GRF
SaskTel
SaskPower | 45,000,000*
65,972,500
126,600,000
128,797,500
|
366,370,000 | 27,089,275*
48,994,971 |
3,753,500 |
(55,000,000 U.S. dollars of the GRF's 100,000,000 U.S. dollars share of the
9.375% debenture issue has been swapped into Canadian dollars at an
interest rate of 9.653%. Interest payments on the remaining 45,000,000 U.S.
dollars have been swapped into Canadian dollars at an interest rate of
9.653%. SaskTel's 100,000,000 U.S. dollars share of the 9.375% debenture
issue has been swapped into Canadian dollars at an interest rate of 10.08%;
Sask Power's 100,000,000 U.S. dollars share of the 9.375% debenture issue
has been swapped into Canadian dollars at an interest rate of 9.965%;
Non-callable; Payable in New York) | | | |
| |
| Feb. 26/91 | Feb. 15/21 | 9.254
9.125 | Semiannual | Can.
U.S. | GRF
GRF | 147,600,000
80,000,000*
|
227,600,000 | 5,100,840
53,430,278* | 2,460,000
-- |
(120,000,000 U.S. dollars of this debenture has been swapped into Canadian
dollars at an interest rate of 9.254%. Interest payments on the remaining
80,000,000 U.S. dollars have been swapped into Canadian dollars at an
interest rate of 9.254%; Non-callable; Payable in New York) | | | |
| |
| Feb. 4/92 | Feb. 4/22 | 9.60 | Semiannual | Can. | SaskPower
GRF | 240,000,000
15,000,000
|
255,000,000 |
65,146,600 |
2,550,000 |
(Non-callable; Payable at any Canadian branch of the Royal Bank of
Canada) | | | |
| |
| Government of Saskatchewan - 2006-07 Public Accounts | 85 |
Supplementary Information
General Revenue Fund - Public Issue Debentures (continued)
Date of
Issue | Date of
Maturity | Interest
Rate
% | Interest
Payments | Currency | Purpose of
Issue | Amount
Outstanding | Total Issue
Outstanding | Equity of
Applicable
Sinking Fund | Sinking Fund
Contribution
2006-07 |
|---|
|
|---|
| July 21/92 | July 15/22 | 8.50
8.942 | Semiannual | U.S.
Can. | GRF
SaskPower | 100,000,000*
256,320,000
|
356,320,000 | 61,356,959*
13,490,712 | 1,134,900**
2,563,200 |
(Interest payments on the GRF's 100,000,000 U.S. dollar share of the 8.50%
debenture issue have been swapped into Canadian dollars at an interest
rate of 8.497%; Sask Power's 200,000,000 U.S. dollar share of the 8.50%
debenture issue has been swapped into Canadian dollars at an interest
rate of 8.942%; Non-callable; Payable in New York) | | | |
| |
| May 30/95 | May 30/25 | 8.75 | Semiannual | Can. | SaskPower
SaskEnergy | 100,000,000
75,000,000
|
175,000,000 |
29,737,986 |
1,750,000 |
(Non-callable; Payable at any Canadian branch of the Royal Bank of
Canada) | | | |
| |
| Dec. 4/98 | March 5/29 | 5.75 | Semiannual | Can. | GRF
SaskTel
SaskEnergy | 250,000,000
75,000,000
25,000,000
|
350,000,000 |
31,924,183 |
3,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| March 24/99 | March 5/29 | 5.60 | Semiannual | Can. | SaskTel
SaskEnergy | 35,000,000
25,000,000
|
60,000,000 |
603,499 |
600,000 |
(Canadian medium term note; Non-callable; This book-based note is held in the
Canadian Depository for Securities) | | | |
| |
| Feb. 17/00 | Jan. 25/30 | 6.25 | Semiannual | Can. | GRF | 25,000,000
| 25,000,000 | 2,188,527 | 250,000 |
(Canadian medium term note; Non-callable; This book-based note is held
in the Canadian Depository for Securities) | | | |
| |
| Jan. 25/00 | Jan. 25/30 | 6.35 | Semiannual | Can. | GRF | 199,995,000
| 199,995,000 | 16,750,456 | 2,000,000 |
(Canadian medium term note; This book-based note is held in the Canadian
Depository for Securities) | | | |
| |
| Dec. 10/01 | Sept. 5/31 | 6.40 | Semiannual | Can. | GRF
SaskPower
SaskEnergy | 190,000,000
300,000,000
60,000,000
|
550,000,000 |
31,525,746 |
5,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| May 12/03 | Sept. 5/33 | 5.80 | Semiannual | Can. | GRF
SaskPower | 150,000,000
300,000,000
|
450,000,000 |
15,053,621 |
4,500,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Aug. 12/04 | Sept. 5/35 | 5.60 | Semiannual | Can. | GRF
SaskPower | 200,000,000
200,000,000
|
400,000,000 |
8,561,502 |
4,000,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| Feb. 15/05 | March 5/37 | 5.00 | Semiannual | Can. | SaskEnergy
SaskPower | 25,000,000
400,000,000
|
425,000,000 |
7,721,356 |
4,250,000 |
(Non-callable; This book-based note is held in the Canadian Depository
for Securities) | | | |
| |
| May 26/06 | June 1/40 | 4.75 | Semiannual | Can. | GRF
SaskPower | 500,000,000
100,000,000
|
600,000,000 |
-- |
-- |
($200,000,000 of debentures were issued on May 26, 2006; This issue was
reopened on March 6, 2007, and an additional $400,000,000 of debentures
were sold; Non-callable; This book-based note is held in the Canadian
Depository for Securities) | | | |
| |
| 86 | Government of Saskatchewan - 2006-07 Public Accounts |
Supplementary Information
General Revenue Fund - Public Issue Debentures (continued)
Date of
Issue | Date of
Maturity | Interest
Rate
% | Interest
Payments | Currency | Purpose of
Issue | Amount
Outstanding | Total Issue
Outstanding | Equity of
Applicable
Sinking Fund | Sinking Fund
Contribution
2006-07 |
|---|
|
|---|
| Sept. 16/02 | Sept. 5/42 | 5.70 | Semiannual | Can. | GRF | 50,000,000
| 50,000,000 | 2,310,037 | 500,000 |
(Canadian medium term note; Non-callable; This book-based note is held
in the Canadian Depository for Securities) | | | |
| |
* Adjustment to reflect conversion of debentures and related sinking
funds quoted in foreign currencies to Canadian dollars using the
exchange rate in effect at March 31, 2007 (U.S. $1.1529) | 42,047,500 | 28,031,663 | -- |
|
| Total | 10,982,708,302 | 1,162,452,621 | 90,426,105 |
|
| ** | Sinking fund contributions to U.S. dollar sinking funds are made in U.S. dollars. Contributions for general government purposes are shown at the cost in Canadian dollars to purchase U.S. dollars equal to the contribution amount. |
| Government of Saskatchewan - 2006-07 Public Accounts | 87 |
Supplementary Information
General Revenue Fund - Debentures Issued to the Minister of Finance of
Canada
As at March 31, 2007
(dollars)
Date of Issue
| Date of Maturity
| Interest
Rate %
| Amount
Outstanding
|
|---|
| Canada Pension Plan Investment Fund* | | | | | | | | | | | |
| April 1987 - March 1988 | | | April 2007 - March 2008 | | | | 9.61 | | | 88,333,000 | |
| April 1988 - March 1989 | | | April 2008 - March 2009 | | | | 10.08 | | | 93,932,000 | |
| April 1989 - March 1990 | | | April 2009 - March 2010 ** | | | | 9.90 | | | 101,867,000 | |
| April 1990 - March 1991 | | | April 2010 - March 2011 ** | | | | 10.85 | | | 90,318,000 | |
| April 1991 - March 1992 | | | April 2011 - March 2012 ** | | | | 9.92 | | | 90,664,000 | |
| April 1992 - March 1993 | | | April 2012 - March 2013 ** | | | | 9.37 | | | 62,705,000 | |
| April 1999 - March 2000 | | | April 2019 - March 2020 ** | | | | 6.34 | | | 46,335,000 | |
| April 2000 - March 2001 | | | April 2020 - March 2021 ** | | | | 6.54 | | | 75,553,000 | |
| April 2002 - March 2003 | | | April 2022 - March 2023 ** | | | | 5.89 | | | 41,182,000 | |
| April 2003 - March 2004 | | | April 2023 - March 2024 ** | | | | 5.48 | | | 40,189,000 | |
| April 2005 - March 2006 | | | April 2015 - March 2036 ** | | | | 4.63 | | | 20,654,000 | |
| April 2006 - March 2007 | | | April 2011 - March 2027 ** | | | | 4.58 | | | 99,655,000 | |
|
| | | | | | | | | | | 851,387,000 | |
| The Municipal Development Loan Fund | | | | | | | | | | | |
| 1967 | | | May 2007 | | | | 5.38 | | | 291 | |
| |
|
| Total | | | | | | | | | | 851,387,291 | |
|
The average effective interest rate on debentures issued to the Minister of Finance of Canada is 8.31%.
| * | Canada Pension Plan debentures have a 5-30 year maturity and are callable in whole or in part before maturity, on six business days prior notice at the option of the Minister of Finance of Saskatchewan. |
| ** | Subject in part to annual sinking funds; equity in sinking funds at March 31, 2007, $92,836,986. |
| 88 | Government of Saskatchewan - 2006-07 Public Accounts |
Supplementary Information
Glossary of Terms
Accrual Accounting
The method used to prepare the financial statements included in Volume 1 of the Public Accounts. Accrual accounting recognizes financial transactions at the time they occur, regardless of whether any cash is received or paid.
Accumulated Deficit
One of the two measures of a government’s financial position (see net debt). The accumulated deficit is the amount by which expenses have exceeded revenues from the beginning of incorporation (1905) plus any adjustments that were charged directly to the accumulated deficit. It is calculated as the difference between assets and liabilities.
Budget
The amount presented in the Estimates and authorized by the Legislative Assembly.
Consolidation
The method used to account for government service organizations in the Summary financial statements in which the accounts are adjusted to the basis of accounting described in note 1e of the Summary financial statements and then combined. Inter-organization balances and transactions are eliminated.
Debt
Terms used when describing debt include:
Government debt is debt incurred by the General Revenue Fund (GRF) to fund Government spending.
Crown Corporation debt is debt incurred by the GRF for Crown corporation purposes.
Gross debt is borrowings through the issuance of debt instruments such as promissory notes and debentures.
Sinking funds are funds set aside for the repayment of debt.
Public debt is gross debt net of sinking funds.
Guaranteed debt is the debt of others that the Government has agreed to repay if others default.
Total debt is public debt plus guaranteed debt.
Debt Reduction Account
The account, established pursuant to The Balanced Budget Act, to account for the accumulated surpluses of the General Revenue Fund commencing April 1, 1995.
Fiscal Stabilization Fund (FSF)
The fund established to stabilize the fiscal position of the Government and to facilitate long-term planning. Stabilization occurs through transfers between the FSF and the General Revenue Fund.
General Revenue Fund
The fund into which all revenues are paid, unless otherwise provided for by Legislation, and from which all expenditures are appropriated by the Legislative Assembly.
Government Business Enterprises
Self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity. Government business enterprises are recorded in the Summary financial statements using the modified equity method.
Government Business Partnerships
Government partnerships that are self-sufficient and have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity. Government business partnerships are accounted for in the Summary financial statements using the modified equity method.
| Government of Saskatchewan - 2006-07 Public Accounts | 89 |
Supplementary Information
Government Partnerships
Investments by the Government where there is a contractual arrangement between the Government and one or more partners outside the government reporting entity and where the partners share, on an equitable basis, the risks and benefits of the partnership. Government partnerships, except those designated as government business partnerships, are proportionately consolidated in the Summary financial statements.
Government Service Organizations
Those organizations that are controlled by the Government, except those designated as government business enterprises. Government service organizations are consolidated in the Summary financial statements after adjustment to a basis consistent with the accounting policies described in note 1e of the Summary financial statements.
Modified Equity
The method by which government business enterprises and government business partnerships are accounted for in the Summary financial statements. The Government’s investment, which is originally recorded at cost, is adjusted annually to include the net earnings/losses and other net equity changes of the enterprise/partnership without adjustment to conform with the accounting policies described in note 1e of the Summary financial statements. Inter-organizational balances and transactions are disclosed but not eliminated.
Net Debt
One of the two measures of a government’s financial position (see accumulated deficit). Net debt is calculated as the difference between financial assets and liabilities.
Pension Liability
An actuarial estimate of discounted future payments to be made to retirees under government pension plans, net of plan assets.
Saskatchewan Infrastructure Fund (SIF)
The fund established to provide moneys that may be used to support the provision and maintenance of infrastructure in Saskatchewan that achieves the Government’s long-term objectives of: building and improving Saskatchewan communities; building and improving the capacity of social and economic development in Saskatchewan; and meeting the growing needs of Saskatchewan families.
Summary Financial Statements (SFS)
The statements prepared to account for the full nature and extent of the financial activities of the Government. The SFS includes the financial activities of organizations controlled by the Government. These organizations are segregated into two classifications, government service organizations and government business enterprises, and are collectively referred to as the government reporting entity. Trusts administered by the Government are excluded from the government reporting entity.
| 90 | Government of Saskatchewan - 2006-07 Public Accounts |
