Exhibit 99.1
PROVINCE OF MANITOBA
2006/07 QUARTERLY FINANCIAL REPORT
APRIL TO DECEMBER 2006
NOTES TO THE QUARTERLY FINANCIAL REPORT
This report presents the unaudited financial results of the Province of Manitoba for the third quarter of the 2006/07 fiscal year.
The report is based on the re-organized structure of departments announced on September 21, 2006. The comparative data provided for the 2005/06 fiscal year has been restated to reflect the current organizational structure of departments.
THIRD QUARTER – ACTUAL TO ESTIMATE
The third quarter result of net revenue (excess revenue over expenditure) of $48.6 million was $125.3 million better than the net expenditure projection (excess expenditure over revenue) of $76.7 million. The increase is a combined result of third quarter expenditures being $116.9 million less than estimated and revenue being $8.4 million higher than anticipated. The variances result primarily from differences in the timing of expenditures and receipts.
THIRD QUARTER COMPARED TO PREVIOUS YEAR’S RESULTS
In total the third quarter net revenue was $73.3 million higher than for the same period last year.
Total revenues were $327.1 million more than the same period last year, mainly as a result of budgeted increases in transfers from the Government of Canada and in own source revenue.
Total expenditures were $253.8 million higher than the previous year. Program expenditures were $277.4 million higher while public debt costs were $23.6 million lower. The largest increases in program expenditures occurred in the departments of Health, Education, Citizenship and Youth, Family Services and Housing, Advanced Education and Literacy and Infrastructure and Transportation.
CAPITAL INVESTMENT
Overall, expenditures for tangible capital assets were $239.6 million, $30.3 million less than estimated for December 31, 2006, primarily due to timing variances related to the Manitoba Floodway Expansion. Total expenditures related to tangible capital assets were $96.0 million higher than the same period last year, related mainly to increased construction on provincial highways and roads and the Manitoba Floodway Expansion.
DEBT/PENSION REPAYMENT
The 2006 Budget provides for a $110.5 million contribution to the Debt Retirement Fund. As required by the balanced budget legislation, an allocation committee determines the share of those funds directed to pension or general purpose debt. In the 2006 Budget plan, the 2006/07 allocation is $85.5 million to the pension liability and $25.0 million for general purpose debt.
Page 1 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
ACCOUNTING POLICY UPDATE
As noted in the second quarter financial report, the Public Sector Accounting Board (PSAB) has issued a revision to the standard for tangible capital assets that affects how the province accounts for funds or assets received from other governments. Previously, under Manitoba’s accounting policy, contributions from Canada for capital projects were netted against the cost of the asset. The new policy requires that transfers from other governments be recorded as revenue in the year the expenditures are incurred. The quarterly results are restated to be consistent with the change in accounting policy.
In order to comply with Generally Accepted Accounting Principles (GAAP), the province provided increased capital investment expenditure authority in the current year for capital projects that are cost-shared with Canada and has adjusted revenue projections accordingly. The Office of the Auditor General was consulted and confirms the requirement for these in-year adjustments.
YEAR END PROJECTION
On a summary basis, the 2006 Budget projected a surplus of $148.0 million. Based on updated forecasts from all provincial entities and the changes in the operating fund explained below, the year-end surplus is projected to be higher than budget at $166.8 million.
Own Source revenues are forecast to be $98.2 million higher than budget, primarily due to an increase of $123.8 million in individual income tax as a result of higher income projections from Canada, combined with increases of $20.0 million in mining tax, $14.3 million in retail sales tax and $11.1 million from oil and natural gas tax revenue. These increases are offset by an expected decrease of $84.6 million in corporation income tax based on revised estimates from Canada and a decrease in corporation capital tax.
Transfers from Canada are forecast to be $89.4 million higher than budget including $48.9 million related to Bill C-48, $19.1 million from a revised estimate of Equalization entitlements, partial recovery of expenditures under the disaster financial assistance agreement and capital project contributions of $74.9 million, primarily related to the Manitoba Floodway Expansion. As noted above, contributions from Canada for capital projects must now be recorded as revenue in keeping with the change in accounting policy. Partially offsetting these increases is a $50.7 million reduction in the Canada Health and Social Transfers predominantly the result of slower than anticipated resolution to the fiscal imbalance at the federal, provincial and territorial level. In total, revenues are forecast to be $187.6 million over the 2006 Budget projection.
Current projections for Manitoba Health forecast an additional requirement of $72.0 million including $28.3 million for Regional Health Authority operations, $24.6 million for medical remuneration and $13.2 million for expansion of the oncology drug program. As previously reported, costs related to forest fire suppression and flooding will be $27.0 million higher than budget while the additional costs for highway maintenance and preservation activities are forecast to be $20.0 million. Other cost pressures include $25.1 million in the Department of Education, Citizenship and Youth, primarily for capital grants for school as a result of favorable weather for construction, and additional costs in the Department of Family Services and Housing for child maintenance and implementing the recommendations from the external reviews of the child welfare system. In total, expenditures are forecast to be $178.2 million higher than budget.
Page 2 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
The year end positive balance for 2006/07 is forecast to be $3.4 million, after a draw from the Fiscal Stabilization Fund of up to $49.3 million for wait time reduction and other health related programming and $26.3 million for general programs. Efforts to manage expenditures resulted in the reduction of the projected draw for general requirements, down from a projection of $105.0 million in the second quarter.
COMPLIANCE WITH BALANCED BUDGET LEGISLATION
The Balanced Budget, Debt Repayment and Taxpayer Accountability Act includes a requirement for the Minister of Finance to report on compliance with the Act in the government’s Third Quarter Financial Report (for the period ending December 31). Based on the projection of a $3.4 million positive balance, the government will be in compliance with this Act.
FISCAL STABILIZATION FUND
The fund is projected to have a balance of $477.0 million at the end of the fiscal year. The projected status of the Fiscal Stabilization Fund is provided on page 13.
BORROWING ACTIVITY
The original estimate of borrowing requirements identified in the 2006 Budget was $2,762.0 million including refinancing, funding for Manitoba Hydro, capital investments, Health’s capital programs and new self sustaining requirements. This requirement had decreased to $2,673.0 million as a result of lower capital requirements for Manitoba Hydro and market conditions resulting in lower than anticipated debt issues called prior to maturity, as noted in the second quarter report, combined with pre-funding for fiscal year 2007/08.
Page 3 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
STATEMENT OF REVENUE AND EXPENDITURE
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
(UNAUDITED)
($000s)
| | | | | | | | | | | | | | | | | | | | |
| | 2006/07 | | Comparison to 2006/07 | | Comparison to 2005/06 |
| | ACTUAL | | Estimate | | Variance | | Actual | | Variance |
Revenue | | | | | | | | | | | | | | | | | | | | |
Own Source Revenue | | | 4,092,994 | | | | 4,057,884 | | | | 35,110 | | | | 3,932,864 | | | | 160,130 | |
Government of Canada | | | 2,272,613 | | | | 2,299,366 | | | | (26,753 | ) | | | 2,105,684 | | | | 166,929 | |
| | | | | | | | | | | | | | | | | | | | |
Total Revenue | | | 6,365,607 | | | | 6,357,250 | | | | 8,357 | | | | 6,038,548 | | | | 327,059 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Expenditure | | | | | | | | | | | | | | | | | | | | |
Program Expenditure | | | 6,088,803 | | | | 6,202,638 | | | | (113,835 | ) | | | 5,811,382 | | | | 277,421 | |
Debt Servicing | | | 228,246 | | | | 231,307 | | | | (3,061 | ) | | | 251,885 | | | | (23,639 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Expenditure | | | 6,317,049 | | | | 6,433,945 | | | | (116,896 | ) | | | 6,063,267 | | | | 253,782 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Revenue/(Expenditure) | | | 48,558 | | | | (76,695 | ) | | | 125,253 | | | | (24,719 | ) | | | 73,277 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interfund Transfers | | | | | | | | | | | | | | | | | | | | |
Debt/Pension Repayment | | | — | | | | — | | | | — | | | | — | | | | — | |
Fiscal Stabilization Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Interfund Transfers | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Revenue/(Expenditure) After Interfund Transfers | | | 48,558 | | | | (76,695 | ) | | | 125,253 | | | | (24,719 | ) | | | 73,277 | |
| | | | | | | | | | | | | | | | | | | | |
Page 4 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF REVENUE
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
(UNAUDITED)
($000s)
| | | | | | | | | | | | | | | | | | | | |
| | 2006/07 | | Comparison to 2006/07 | | Comparison to 2005/06 |
| | ACTUAL | | Estimate | | Variance | | Actual | | Variance |
Taxation: | | | | | | | | | | | | | | | | | | | | |
Finance | | | | | | | | | | | | | | | | | | | | |
- Individual Income Tax | | | 1,520,934 | | | | 1,488,954 | | | | 31,980 | | | | 1,439,613 | | | | 81,321 | |
- Corporation Income Tax | | | 273,920 | | | | 281,282 | | | | (7,362 | ) | | | 271,300 | | | | 2,620 | |
- Corporation Capital Tax | | | 120,498 | | | | 122,665 | | | | (2,167 | ) | | | 125,964 | | | | (5,466 | ) |
- Gasoline Tax | | | 103,226 | | | | 103,184 | | | | 42 | | | | 103,614 | | | | (388 | ) |
- Insurance Corporations Tax | | | 44,692 | | | | 44,377 | | | | 315 | | | | 43,285 | | | | 1,407 | |
- Land Transfer Tax | | | 31,616 | | | | 29,726 | | | | 1,890 | | | | 26,009 | | | | 5,607 | |
- Levy for Health and Education | | | 208,794 | | | | 207,111 | | | | 1,683 | | | | 197,211 | | | | 11,583 | |
- Mining Tax | | | 38,552 | | | | 39,686 | | | | (1,134 | ) | | | 40,650 | | | | (2,098 | ) |
- Motive Fuel Tax | | | 59,062 | | | | 57,310 | | | | 1,752 | | | | 55,728 | | | | 3,334 | |
- Retail Sales Tax | | | 854,574 | | | | 849,380 | | | | 5,194 | | | | 807,803 | | | | 46,771 | |
- Tax Administration and Miscellaneous Tax Act | | | 44,164 | | | | 45,221 | | | | (1,057 | ) | | | 46,214 | | | | (2,050 | ) |
- Tobacco Tax | | | 150,776 | | | | 138,626 | | | | 12,150 | | | | 135,801 | | | | 14,975 | |
- Other Taxes | | | 2,342 | | | | 2,305 | | | | 37 | | | | 2,280 | | | | 62 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 3,453,150 | | | | 3,409,827 | | | | 43,323 | | | | 3,295,472 | | | | 157,678 | |
Science, Technology, Energy and Mines | | | | | | | | | | | | ) | | | | | | | | |
- - Oil and Natural Gas Tax | | | 11,047 | | | | 11,886 | | | | (839 | ) | | | 3,328 | | | | 7,719 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 3,464,197 | | | | 3,421,713 | | | | 42,484 | | | | 3,298,800 | | | | 165,397 | |
| | | | | | | | | | | | | | | | | | | | |
Other Revenue: | | | | | | | | | | | | | | | | | | | | |
Infrastructure and Transportation | | | 86,331 | | | | 90,430 | | | | (4,099 | ) | | | 90,400 | | | | (4,069 | ) |
Justice | | | 29,832 | | | | 28,570 | | | | 1,262 | | | | 25,717 | | | | 4,115 | |
Water Power Rentals | | | 81,626 | | | | 85,873 | | | | (4,247 | ) | | | 93,260 | | | | (11,634 | ) |
Manitoba Lotteries Corporation | | | 200,000 | | | | 198,000 | | | | 2,000 | | | | 202,000 | | | | (2,000 | ) |
Manitoba Liquor Control Commission | | | 141,200 | | | | 144,200 | | | | (3,000 | ) | | | 134,300 | | | | 6,900 | |
Other Sources | | | 89,808 | | | | 89,098 | | | | 710 | | | | 88,387 | | | | 1,421 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 628,797 | | | | 636,171 | | | | (7,374 | ) | | | 634,064 | | | | (5,267 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Own Source Revenue | | | 4,092,994 | | | | 4,057,884 | | | | 35,110 | | | | 3,932,864 | | | | 160,130 | |
| | | | | | | | | | | | | | | | | | | | |
Page 5 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF REVENUE
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
(UNAUDITED)
($000s)
| | | | | | | | | | | | | | | | | | | | |
| | 2006/07 | | Comparison to 2006/07 | | Comparison to 2005/06 |
| | ACTUAL | | Estimate | | Variance | | Actual | | Variance |
Government of Canada: | | | | | | | | | | | | | | | | | | | | |
Equalization | | | 1,277,708 | | | | 1,277,708 | | | | — | | | | 1,200,763 | | | | 76,945 | |
Bill C-48 | | | 48,911 | | | | 48,911 | | | | — | | | | — | | | | 48,911 | |
Canada Health Transfer (CHT) | | | 572,281 | | | | 571,376 | | | | 905 | | | | 544,569 | | | | 27,712 | |
Canada Social Transfer (CST) | | | 246,487 | | | | 244,916 | | | | 1,571 | | | | 240,048 | | | | 6,439 | |
Child Care | | | 23,683 | | | | 23,683 | | | | — | | | | 25,612 | | | | (1,929 | ) |
Health Funds | | | 8,343 | | | | 8,596 | | | | (253 | ) | | | 12,264 | | | | (3,921 | ) |
Departments | | | | | | | | | | | | | | | | | | | | |
- Labour Market Agreements | | | 46,335 | | | | 46,335 | | | | — | | | | 46,335 | | | | — | |
- Other Agreements | | | 48,865 | | | | 77,841 | | | | (28,976 | ) | | | 36,093 | | | | 12,772 | |
| | | | | | | | | | | | | | | | | | | | |
Total Government of Canada | | | 2,272,613 | | | | 2,299,366 | | | | (26,753 | ) | | | 2,105,684 | | | | 166,929 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Revenue | | | 6,365,607 | | | | 6,357,250 | | | | 8,357 | | | | 6,038,548 | | | | 327,059 | |
| | | | | | | | | | | | | | | | | | | | |
Page 6 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF PART A — OPERATING EXPENDITURE
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
(UNAUDITED)
($000s)
| | | | | | | | | | | | | | | | | | | | |
| | 2006/07 | | Comparison to 2006/07 | | Comparison to 2005/06 | |
| | ACTUAL | | Estimate | | | Variance | | | Actual | | | Variance | |
Legislative Assembly | | | 19,946 | | | | 20,796 | | | | (850 | ) | | | 18,650 | | | | 1,296 | |
Executive Council | | | 2,458 | | | | 2,442 | | | | 16 | | | | 2,485 | | | | (27 | ) |
Aboriginal and Northern Affairs | | | 26,366 | | | | 26,131 | | | | 235 | | | | 23,732 | | | | 2,634 | |
Advanced Education and Literacy | | | 382,785 | | | | 379,778 | | | | 3,007 | | | | 359,789 | | | | 22,996 | |
Agriculture, Food and Rural Initiatives | | | 90,808 | | | | 102,411 | | | | (11,603 | ) | | | 85,294 | | | | 5,514 | |
Civil Service Commission | | | 3,724 | | | | 4,032 | | | | (308 | ) | | | 3,675 | | | | 49 | |
Competitiveness, Training and Trade | | | 67,281 | | | | 67,403 | | | | (122 | ) | | | 63,345 | | | | 3,936 | |
Conservation | | | 82,792 | | | | 86,934 | | | | (4,142 | ) | | | 82,710 | | | | 82 | |
Culture, Heritage and Tourism | | | 55,503 | | | | 56,995 | | | | (1,492 | ) | | | 55,666 | | | | (163 | ) |
Education, Citizenship and Youth | | | 939,533 | | | | 938,376 | | | | 1,157 | | | | 891,083 | | | | 48,450 | |
Employee Pensions and Other Costs | | | 51,894 | | | | 53,140 | | | | (1,246 | ) | | | 48,196 | | | | 3,698 | |
Family Services and Housing | | | 740,801 | | | | 766,806 | | | | (26,005 | ) | | | 714,257 | | | | 26,544 | |
Finance — Departmental Costs | | | 81,311 | | | | 82,877 | | | | (1,566 | ) | | | 82,337 | | | | (1,026 | ) |
Finance — Debt Servicing Costs | | | 228,246 | | | | 231,307 | | | | (3,061 | ) | | | 251,885 | | | | (23,639 | ) |
Health | | | 2,681,572 | | | | 2,713,029 | | | | (31,457 | ) | | | 2,557,343 | | | | 124,229 | |
Healthy Child Manitoba | | | 18,390 | | | | 18,841 | | | | (451 | ) | | | 16,626 | | | | 1,764 | |
Infrastructure and Transportation | | | 332,500 | | | | 341,887 | | | | (9,387 | ) | | | 312,406 | | | | 20,094 | |
Intergovernmental Affairs | | | 164,544 | | | | 174,378 | | | | (9,834 | ) | | | 161,321 | | | | 3,223 | |
Justice | | | 203,248 | | | | 206,264 | | | | (3,016 | ) | | | 198,433 | | | | 4,815 | |
Labour and Immigration | | | 22,986 | | | | 24,328 | | | | (1,342 | ) | | | 22,128 | | | | 858 | |
Manitoba Seniors and Healthy Aging Secretariat | | | 660 | | | | 747 | | | | (87 | ) | | | 655 | | | | 5 | |
Science, Technology, Energy and Mines | | | 51,674 | | | | 55,139 | | | | (3,465 | ) | | | 47,912 | | | | 3,762 | |
Sport | | | 8,589 | | | | 8,585 | | | | 4 | | | | 8,428 | | | | 161 | |
Water Stewardship | | | 18,093 | | | | 20,823 | | | | (2,730 | ) | | | 17,750 | | | | 343 | |
Enabling Appropriations | | | 1,661 | | | | 2,591 | | | | (930 | ) | | | 1,264 | | | | 397 | |
Other Appropriations | | | 39,684 | | | | 47,905 | | | | (8,221 | ) | | | 35,896 | | | | 3,788 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Expenditure | | | 6,317,049 | | | | 6,433,945 | | | | (116,896 | ) | | | 6,063,266 | | | | 253,783 | |
| | | | | | | | | | | | | | | | | | | | |
Page 7 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF PART B — CAPITAL INVESTMENT
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
(UNAUDITED)
($000s)
| | | | | | | | | | | | | | | | | | | | |
| | 2006/07 | | | Comparison to 2006/07 | | | Comparison to 2005/06 | |
| | ACTUAL | | | Estimate | | | Variance | | | Actual | | | Variance | |
General Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Legislative Assembly | | | 6 | | | | 28 | | | | (22 | ) | | | 9 | | | | (3 | ) |
Agriculture, Food and Rural Initiatives | | | — | | | | 54 | | | | (54 | ) | | | 53 | | | | (53 | ) |
Competitiveness Training and Trade | | | — | | | | — | | | | — | | | | 355 | | | | (355 | ) |
Conservation | | | 1,306 | | | | 1,740 | | | | (434 | ) | | | 374 | | | | 932 | |
Culture, Heritage and Tourism | | | 31 | | | | 50 | | | | (19 | ) | | | — | | | | 31 | |
Finance | | | 1,409 | | | | 1,505 | | | | (96 | ) | | | 1,172 | | | | 237 | |
Health | | | 1,084 | | | | 1,999 | | | | (915 | ) | | | 98 | | | | 986 | |
Infrastructure and Transportation | | | 153 | | | | 660 | | | | (507 | ) | | | 376 | | | | (223 | ) |
Justice | | | 26,632 | | | | 27,193 | | | | (561 | ) | | | 23,846 | | | | 2,786 | |
Science, Technology, Energy and Mines | | | 484 | | | | 737 | | | | (253 | ) | | | 665 | | | | (181 | ) |
Water Stewardship | | | 4,100 | | | | 6,988 | | | | (2,888 | ) | | | 5,125 | | | | (1,025 | ) |
Enabling Appropriations | | | 279 | | | | 433 | | | | (154 | ) | | | — | | | | 279 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total General Assets | | | 35,484 | | | | 41,387 | | | | (5,903 | ) | | | 32,073 | | | | 3,411 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Infrastructure Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Conservation | | | 5,328 | | | | 6,557 | | | | (1,229 | ) | | | 2,256 | | | | 3,072 | |
Infrastructure and Transportation | | | 112,477 | | | | 108,633 | | | | 3,844 | | | | 84,665 | | | | 27,812 | |
Manitoba Floodway Expansion | | | 86,264 | | | | 113,264 | | | | (27,000 | ) | | | 24,538 | | | | 61,726 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total Infrastructure Assets | | | 204,069 | | | | 228,454 | | | | (24,385 | ) | | | 111,459 | | | | 92,610 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total Capital Assets | | | 239,553 | | | | 269,841 | | | | (30,288 | ) | | | 143,532 | | | | 96,021 | |
| | | | | | | | | | | | | | | |
Page 8 of 14
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PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF PROVINCIAL BORROWINGS, GUARANTEES AND OBLIGATIONS
December 31, 2006
(with comparative figures for March 31, 2006)
(UNAUDITED)
($000s)
| | | | | | | | | | | | |
| | Canadian | | | Canadian | | | Increase | |
| | Dollar | | | Dollar | | | (Decrease) | |
| | Valuation | | | Valuation | | | December 31, 2006 | |
| | (Note 1) | | | (Note 1) | | | over | |
| | December 31, 2006 | | | March 31, 2006 | | | March 31, 2006 | |
Provincial Borrowings Payable in: | | | | | | | | | | | | |
Canadian Dollars | | | 13,684,320 | | | | 13,710,863 | | | | (26,543 | ) |
Issues Hedged to Canadian Dollars | | | 2,519,100 | | | | 2,834,264 | | | | (315,164 | ) |
U.S. Dollars | | | 2,217,624 | | | | 2,221,050 | | | | (3,426 | ) |
Issues Hedged to U.S. Dollars | | | 616,388 | | | | 617,340 | | | | (952 | ) |
| | | | | | | | | | | | |
| | | | | | | | | |
Subtotal Provincial Borrowings | | | 19,037,432 | | | | 19,383,517 | | | | (346,085 | ) |
| | | | | | | | | |
| | | | | | | | | | | | |
Guarantees and Obligations Payable in: | | | | | | | | | | | | |
Canadian Dollars | | | 1,346,751 | | | | 1,229,575 | | | | 117,176 | |
U.S. Dollars | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
| | | | | | | | | |
Subtotal Guarantees and Obligations (Note 2) | | | 1,346,751 | | | | 1,229,575 | | | | 117,176 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Subtotal Provincial Borrowings, Guarantees and Obligations (Note 3) | | | 20,384,183 | | | | 20,613,092 | | | | (228,909 | ) |
Less: Sinking Fund Investments | | | (4,294,207 | ) | | | (4,475,996 | ) | | | (181,789 | ) |
Less: Debt Retirement Fund | | | (25,002 | ) | | | (25,000 | ) | | | 2 | |
| | | | | | | | | | | | |
| | | | | | | | | |
Total Provincial Borrowings, Guarantees and Obligations Outstanding (Note 4) | | | 16,064,974 | | | | 16,112,096 | | | | (47,122 | ) |
| | | | | | | | | |
Note to Reader:
Outstanding provincial borrowings will fluctuate during the fiscal year as a result of the timing of borrowing activities of the Province. While current accounting standards identify Net Debt as the best presentation of a government’s financial position, certain valuations used in the calculation of Net Debt are not available on a quarterly basis. Net Debt is defined as total liabilities less the financial assets available to repay those liabilities. The Public Accounts for the year ended March 31, 2006 reflected Net Debt of the operating fund to be $8.3 billion (see Public Accounts, Volume 1, page 105) and for the government reporting entity to be $10.5 billion (See Public Accounts, Volume 1, page 55).
Page 9 of 14
| | |
PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
OPERATING FUND
STATEMENT OF PROVINCIAL BORROWINGS, GUARANTEES AND OBLIGATIONS
December 31, 2006
(with comparative figures for March 31, 2006)
| | NOTES: |
|
1. | | The Canadian Dollar Valuation is calculated using the foreign currency exchange rates in effect at December 31, 2006 and at March 31, 2006. As at December 31, 2006, the U.S. dollar exchange rate was $1.1653 ($ 1.1671 at March 31, 2006). |
|
2. | | Includes borrowings of Manitoba Hydro which has been guaranteed by the Province, Government Enterprises and Other payables and third party debt of health care facilities. |
|
3. | | Provincial Borrowings and Guarantees are payable in Canadian and U.S. dollars. As at December 31, 2006, total provincial borrowings and guarantees were payable 86% in Canadian dollars and 14% in U.S. dollars. Of this total, General Government Program borrowing and Other Crown organizations borrowings was 100% payable in Canadian dollars. Manitoba Hydro borrowings was payable 61% in Canadian dollars (60% at March 31, 2006) and 39% in U.S. dollars (40% at March 31, 2006). |
|
4. | | The above borrowings, guarantees and obligations were outstanding for the following purposes: |
| | | | | | | | | | | | | | | | |
| | December 31, 2006 | | | March 31, 2006 | |
| | ($ Thousands) | | | ($ Per Capita) | | | ($ Thousands) | | | ($ Per Capita) | |
| | | | | | (Note 5) | | | | | | | (Note 5) | |
General Government Programs | | | 6,355,330 | | | | 5,393 | | | | 6,582,745 | | | | 5,598 | |
Manitoba Hydro | | | 6,630,254 | | | | 5,626 | | | | 6,524,289 | | | | 5,548 | |
Capital Investments | | | 532,609 | | | | 452 | | | | 463,766 | | | | 394 | |
Health Facilities | | | 734,834 | | | | 624 | | | | 766,834 | | | | 652 | |
Government Enterprises and Other (Note 6) | | | 502,336 | | | | 426 | | | | 502,336 | | | | 427 | |
Other Crown Organizations | | | 1,309,611 | | | | 1,111 | | | | 1,272,126 | | | | 1,082 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 16,064,974 | | | | 13,632 | | | | 16,112,096 | | | | 13,701 | |
| | | | | | | | | | | | |
| | | (Note 7) | | | | | | | | | | | | | |
5. | | Per Capita data is based upon population figures at July 1, 2006 and April 1, 2006 as reported by Statistics Canada. |
|
6. | | In 2003/04, the Province, in accordance with PSAB GAAP, changed its accounting treatment for certain amounts owed to Canada and for debentures issued by certain school boards and hospitals, the debt service of which is paid with future grants from the Government. Amounts owed to the Federal Government over time, which were previously treated as accounts payable are now accounted for as loans payable. Debentures issued by school boards and hospitals, were previously recognized as an expense over the life of the debentures as grants for debt service were made and held by the Provincial Sinking Fund and Manitoba Public Insurance (MPI), (a Crown corporation). Now the obligation to fund debt principal payments is expensed in full at the time the debenture is issued. Any of these debentures held by MPI are recorded as “Loans Payable to Government Enterprises”. The Government also recognized a loan payable in respect of the pension liability of the Manitoba Liquor Control Commission. |
|
7. | | Provincial borrowings, guarantees and obligations decreased by $47.1 million. This decrease was primarily due to matured General Government Program and Health Facilities borrowings which have not yet been refinanced, offset by Part B Capital requirements and funding of Manitoba Hydro’s capital program. Manitoba Hydro’s U.S. dollar revenues are sufficient to pay the interest and principal on all outstanding U.S. dollar borrowings. |
|
8. | | Manitoba’s net general purpose debt to GDP ratio is projected to be 14.8% in 2006/07, down from 15.6% in 2005/06 and from 20.9% in 1999/2000. GDP data reflects the latest information available from Manitoba Bureau of Statistics. |
Page 10 of 14
| | |
PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
DEBT RETIREMENT FUND
PROJECTION FOR THE YEAR ENDING MARCH 31, 2007
(with comparative figures for March 31, 2006)
($000s)
| | | | | | | | |
| | 2006/07 | | | 2005/06 | |
| | Projection | | | Actual (2) | |
Fund Balance, Beginning of Year | | | 25,000 | | | | — | |
| | | | | | |
| | | | | | | | |
Revenue: | | | | | | | | |
Interest Earnings | | | 1,000 | | | | — | |
Transfer from Operating Fund (1) | | | 110,495 | | | | 110,495 | |
| | | | | | |
| | | 111,495 | | | | 110,495 | |
| | | | | | |
| | | | | | | | |
Expenditure: | | | | | | | | |
Transfer to Operating Fund for: | | | | | | | | |
- Pension Assets Fund (3) | | | (85,495 | ) | | | (85,495 | ) |
- Sinking Fund Obligation | | | — | | | | — | |
| | | | | | |
| | | (85,495 | ) | | | (85,495 | ) |
| | | | | | |
| | | | | | | | |
| | | | | | |
Fund Balance, End of Year | | | 51,000 | | | | 25,000 | |
| | | | | | |
Notes:
(1) | | Based on projection included in the 2006 Budget. |
|
(2) | | Based on 2005/06 Public Accounts. |
|
(3) | | The actual allocation of funds for 2006/07 will be determined by the Allocation Committee as per the Balanced Budget, Debt Repayment and Taxpayer Accountability Act. |
Page 11 of 14
| | |
PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
PENSION ASSETS FUND
PROJECTION FOR THE YEAR ENDING MARCH 31, 2007
(with comparative figures for March 31, 2006)
($000s)
| | | | | | | | |
| | 2006/07 | | | 2005/06 | |
| | Projection(1) | | | Actual(2) | |
Fund Balance, Beginning of Year | | | 536,986 | | | | 382,342 | |
| | | | | | |
| | | | | | | | |
Revenue: | | | | | | | | |
Interest Earnings | | | 68,000 | | | | 60,761 | |
Transfer from Debt Retirement Fund (3) | | | 85,495 | | | | 85,495 | |
Transfer from Departments and Crown Corporations | | | 10,250 | | | | 8,388 | |
| | | | | | | | |
| | | | | | |
| | | 163,745 | | | | 154,644 | |
| | | | | | |
| | | | | | | | |
| | | | | | |
Fund Balance, End of Year | | | 700,731 | | | | 536,986 | |
| | | | | | |
Notes:
(1) | | Based on YTD earnings and contributions (extrapolated to March 31, 2007) |
|
(2) | | Based on 2005/06 Public Accounts |
|
(3) | | The actual allocation of funds for 2006/07 will be determined by the Allocation Committee as per the Balanced Budget, Debt Repayment and Taxpayer Accountability Act. |
Page 12 of 14
| | |
PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
FISCAL STABILIZATION FUND
PROJECTION FOR THE YEAR ENDING MARCH 31, 2007
(with comparative figures for March 31, 2006)
($000s)
| | | | | | | | |
| | 2006/07 | | | 2005/06 | |
| | Projection | | | Actual (1) | |
Health Programs | | | | | | | | |
| | | | | | | | |
Program Fund Balance — Beginning of Year | | | 202,411 | | | | 210,067 | |
Interest Earnings | | | 5,761 | | | | 6,044 | |
Transfer to General Programs | | | | | | | | |
- Wait Time Reduction | | | — | | | | (13,700 | ) |
Transfer (to)/from the Operating Fund | | | | | | | | |
- Wait Time Reduction and other Health Related Programming | | | (49,252 | ) | | | — | |
| | | | | | |
Program Fund Balance — End of Year | | | 158,920 | | | | 202,411 | |
| | | | | | |
| | | | | | | | |
General Programs | | | | | | | | |
| | | | | | | | |
Program Fund Balance — Beginning of Year | | | 329,576 | | | | 275,876 | |
Interest Earnings | | | 11,406 | | | | 8,915 | |
Recovered from Health Programs | | | | | | | | |
- Wait Time Reduction Programming | | | — | | | | 13,700 | |
Transfer (to)/from the Operating Fund | | | | | | | | |
- Year-end Positive Balance | | | 3,353 | | | | 31,085 | |
- General Requirements | | | (26,300 | ) | | | — | |
| | | | | | |
Fund Balance — End of Year | | | 318,035 | | | | 329,576 | |
| | | | | | |
| | | | | | | | |
|
Total Fund Balance, End of Year | | | 476,955 | | | | 531,987 | |
Note:
(1) | | Based on 2005/06 Public Accounts. |
Page 13 of 14
| | |
PROVINCE OF MANITOBA FINANCIAL REPORT | | APRIL TO DECEMBER 2006 |
PROJECTED OPERATING FUND
FOR THE YEAR ENDING MARCH 31, 2007
($000s)
| | | | | | | | |
| | Revised | | | Budget | |
| | Projection | | | Estimate | |
Revenue | | | 8,838,674 | | | | 8,651,036 | |
| | | | | | | | |
Expenditure | | | 8,800,378 | | | | 8,622,203 | |
| | | | | | |
| | | | | | | | |
Net Revenue/(Expenditure) | | | 38,296 | | | | 28,833 | |
| | | | | | |
| | | | | | | | |
Interfund Transfers | | | | | | | | |
Debt/Pension Repayment | | | (110,495 | ) | | | (110,495 | ) |
Fiscal Stabilization Fund | | | | | | | | |
- Wait Time Reduction and other | | | | | | | | |
Health Related Programming | | | 49,252 | | | | 30,000 | |
- Other general requirements | | | 26,300 | | | | 55,000 | |
| | | | | | |
Sub-total Interfund Transfers | | | (34,943 | ) | | | (25,495 | ) |
| | | | | | |
| | | | | | | | |
Balance Under Balanced Budget Legislation | | | 3,353 | | | | 3,338 | |
| | | | | | |
Page 14 of 14