Province Of Nova Scotia 18-K Annual report (foreign governments)

Exhibit 99.2

INDEPENDENT AUDITOR’S REPORT

To the Members of the Legislative Assembly of Nova Scotia:

Report on the Consolidated Financial Statements

I have audited the accompanying consolidated financial statements of the Province of Nova Scotia, which comprise the consolidated statement of financial position as at March 31, 2013, and the consolidated statements of operations and accumulated deficits, change in net debt and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibilities for the Consolidated Financial Statements

Management is responsible for the preparation and fair representation of these consolidated financial statements in accordance with Canadian generally accepted accounting principles for the public sector and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on these consolidated financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards required that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Province of Nova Scotia as at March 31, 2013, and its consolidated financial performance and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles for the public sector.

Jacques R. Lapointe, CA

Auditor General

July 25, 2013

Halifax, Nova Scotia

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Statement 1

Province of Nova Scotia

Consolidated Statement of Financial Position

As at March 31, 2013

($ thousands)

	2013			2012
				(as restated)
Financial Assets
Cash and Short-Term Investments (Note 3)		774,202			757,086
Accounts Receivable		768,199			894,796
Inventories for Resale		11,703			8,970
Loans Receivable (Schedule 3)		2,023,912			1,993,626
Investments (Note 3 & Schedule 3)		148,047			152,813
Investment in Government Business Enterprises (Schedule 6)		112,157			101,448
Assets Held for Sale (Note 4)		30,566			—
		3,868,786			3,908,739
Liabilities
Bank Advances and Short-Term Borrowings		550,440			405,215
Accounts Payable and Accrued Liabilities		1,717,548			1,673,587
Deferred Revenue (Note 5)		245,339			278,867
Accrued Interest		221,550			216,591
Unmatured Debt (Schedule 4)		12,869,245			12,665,417
Unamortized Foreign Exchange Translation Gains and Losses, Premiums and Discounts		178,000			222,933
Federal Equalization Repayable Loan (Note 6)		36,097			48,129
Pension, Retirement and Other Obligations (Note 7)		2,004,336			1,780,946
		17,822,555			17,291,685
Net Debt		(13,953,769	)		(13,382,946	)
Non-Financial Assets
Tangible Capital Assets (Schedule 7)		5,400,182			5,122,215
Inventories of Supplies		52,481			57,039
Prepaid Expenses		19,436			24,513
		5,472,099			5,203,767
Accumulated Deficits		(8,481,670	)		(8,179,179	)
Accounting Changes (Note 2)
Contingencies and Contractual Obligations (Note 12)
Trust Funds under Administration (Note 14)
Subsequent Events (Note 17)

The accompanying notes and schedules are an integral part of these Consolidated Financial Statements

71

Statement 2

Province of Nova Scotia

Consolidated Statement of Operations and Accumulated Deficits

For the fiscal year ended March 31, 2013

($ thousands)

	Adjusted Estimate 2013			Actual 2013			Actual 2012
							(as restated)
Revenue (Schedule 1)
Provincial Sources
Tax Revenue		4,859,390			4,901,794			4,652,058
Other Provincial Revenue		1,223,994			1,390,634			1,364,103
Net Income from Government Business Enterprises (Schedule 6)		350,993			352,097			369,370
Investment Income		188,719			194,575			195,464
		6,623,096			6,839,100			6,580,995
Federal Sources		3,325,170			3,262,765			3,179,294
Total Revenue		9,948,266			10,101,865			9,760,289
Expenses (Schedule 2)
Agriculture		68,791			67,141			69,234
Communities, Culture and Heritage		60,580			59,363			55,649
Community Services		1,012,650			1,029,692			1,047,543
Economic and Rural Development and Tourism		234,503			212,132			159,066
Education		1,376,553			1,429,756			1,468,528
Energy		31,134			30,393			31,770
Environment		76,076			72,569			75,760
Finance		83,638			88,808			78,786
Fisheries and Aquaculture		8,799			8,474			8,284
Health and Wellness		3,962,372			4,122,825			3,976,425
Justice		312,712			312,981			297,287
Labour and Advanced Education		395,345			388,901			392,210
Assistance to Universities		347,619			380,847			387,215
Natural Resources		97,998			100,995			102,569
Public Service		143,785			136,824			138,032
Seniors		1,871			1,748			1,866
Service Nova Scotia and Municipal Relations		276,896			270,102			260,366
Transportation and Infrastructure Renewal		423,042			417,747			412,204
Restructuring Costs		164,207			80,063			36,935
Restructuring of Nova Scotia Agricultural College (Note 8)		34,517			36,996			—
Pension Valuation Adjustment		71,485			107,370			40,041
Tax Credits and Rebates		73,500			127,145			116,510
Debt Servicing Costs (Note 9)		901,393			921,484			862,998
Total Expenses (Note 10)		10,159,466			10,404,356			10,019,278
Provincial Deficit		(211,200	)		(302,491	)		(258,989	)
Accumulated Deficits, Beginning of Year
As Previously Reported					(8,039,727	)		(7,791,257	)
Accounting Changes (Note 2)					(139,452	)		(128,933	)
As Restated					(8,179,179	)		(7,920,190	)
Accumulated Deficits, End of Year					(8,481,670	)		(8,179,179	)

The accompanying notes and schedules are an integral part of these Consolidated Financial Statements

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Statement 3

Province of Nova Scotia

Consolidated Statement of Changes in Net Debt

For the fiscal year ended March 31, 2013

($ thousands)

	Adjusted Estimate 2013			Actual 2013				Actual 2012
								(as restated)
Net Debt, Beginning of Year
As Previously Reported		(13,382,946	)		(13,243,494	)			(12,758,315	)
Accounting Changes (Note 2)		—			(139,452	)			(128,933	)
As Restated		(13,382,946	)		(13,382,946	)			(12,887,248	)
Changes in the Year *
Provincial Deficit		(211,200	)		(302,491	)			(258,989	)
Acquisitions and Transfers of Tangible Capital Assets		(523,689	)		(690,862	)			(609,649	)
Amortization of Tangible Capital Assets		287,951			382,898				362,442
Disposals of Tangible Capital Assets		—			29,997		��		1,916
Decrease (Increase) in Inventories of Supplies		—			4,558				(307	)
Decrease in Prepaid Expenses		—			5,077				8,889
Total Changes in the Year		(446,938	)		(570,823	)			(495,698	)
Net Debt, End of Year		(13,829,884	)		(13,953,769	)			(13,382,946	)

* Except for the Provincial Deficit figure, the adjusted estimates for items under Changes in the Year reflect the activity of the General Revenue Fund only

The accompanying notes and schedules are an integral part of these Consolidated Financial Statements

73

Statement 4

Province of Nova Scotia

Consolidated Statement of Cash Flow

For the fiscal year ended March 31, 2013

($ thousands)

	2013			2012
				(as restated)
Cash Inflows (Outflows) from the following activities:
Operating
Provincial Deficit		(302,491	)		(258,989	)
Sinking Fund and Public Debt Management Fund Earnings		(111,146	)		(106,768	)
Amortization of Premiums and Discounts on Unmatured Debt		(8,321	)		(11,510	)
Amortization of Tangible Capital Assets		382,898			362,442
Net Income from Government Business Enterprises		(352,097	)		(369,370	)
Profit Distributions from Government Business Enterprises		341,388			358,251
Loss on Disposal of Tangible Capital Assets		14,523			(333	)
Net Change in Other Items (Note 11)		486,940			(65,921	)
		451,694			(92,198	)
Investing
Repayment of Loans		390,970			270,742
Advances and Investing		(458,931	)		(423,861	)
Write-offs		42,441			31,430
		(25,520	)		(121,689	)
Capital
Acquisition of Tangible Capital Assets		(690,862	)		(609,649	)
Proceeds from Disposal of Tangible Capital Assets		15,474			2,249
		(675,388	)		(607,400	)
Financing
Debentures Issued		1,359,519			2,091,089
Repayment of Federal Equalization Repayable Loan		(12,032	)		(12,032	)
Foreign Exchange Amortization		(37,392	)		(27,594	)
Sinking Fund (Installments) Withdrawals		(44,075	)		(37,617	)
Repayment of Debentures and Other Long-Term Obligations		(999,690	)		(1,616,567	)
		266,330			397,279
Cash Inflows (Outflows)		17,116			(424,008	)
Cash Position, Beginning of Year		757,086			1,181,094
Cash Position, End of Year		774,202			757,086
Cash Position Represented by:
Cash and Short-Term Investments		774,202			757,086

The accompanying notes and schedules are an integral part of these Consolidated Financial Statements

74

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

1. Financial Reporting and Accounting Policies

These financial statements are prepared in accordance with Canadian generally accepted accounting principles (GAAP) for the public sector that for purposes of the Province’s financial statements are represented by the Public Sector Accounting Standards (PSAS) of the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA), supplemented where appropriate by other CICA and International Federation of Accountants accounting standards.

The consolidated financial statements are prepared using the following significant accounting policies:

(a) Government Reporting Entity

The government reporting entity (GRE) is comprised of the General Revenue Fund, other governmental units (GUs), government business enterprises (GBEs), and the Province’s proportionate share of government partnership arrangements (GPAs). GUs and GBEs represent the entities that are controlled by the government. Control is defined as the power to govern the financial and operating policies of another organization with expected benefits or the risk of loss to the government from the other organization’s activities. Control exists regardless of whether the government chooses not to exercise its power to govern so long as it has the ability to govern. Control must exist at the financial statement date, without the need to amend legislation or agreements. GPAs represent entities for which decision making and significant risks and benefits are shared with other parties outside of the GRE.

Trusts administered by the Province are excluded from the GRE and are disclosed in Note 14 for information purposes only.

(b) Principles of Consolidation

A GBE is a self-sustaining organization that has the financial and operating authority to sell goods and services to individuals and non-government organizations as its principal activity and source of revenue. GBEs are accounted for on the modified equity basis. Their accounting principles are not adjusted to conform with those of the Province. The total net assets of all GBEs are included under Investment in GBEs on the Consolidated Statement of Financial Position. The total net income from all GBEs is reported as a separate item on the Consolidated Statement of Operations and Accumulated Deficits.

A GPA is a contractual arrangement between the government and a party or parties outside the GRE. The partners have significant clearly defined common goals, make a financial investment in the partnership, share control of decision making, and share, on an equitable basis, the significant risks and benefits associated with the operations of the government partnership. Where significant, the government’s interest in partnerships is accounted for using the proportionate consolidation method.

A GU is a government organization that is not a GBE or a GPA. GUs include government departments, public service units, funds, agencies, boards, commissions, service organizations, and government not-for-profit organizations. The accounts of GUs are consolidated on a line-by-line basis after adjusting the accounting policies to be consistent with those described in Note 1(d). Significant inter-organization accounts and transactions are eliminated.

A complete listing of the organizations within the GRE is provided in Schedule 10.

75

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

1. Financial Reporting and Accounting Policies (continued)

(c) Presentation of Estimates

Each year, the Province prepares an annual budget, referred to as the Estimates, which represents the financial plan of the Province presented by the government to the House of Assembly for the fiscal year commencing April 1. The Estimates, forming the basis of the Appropriations Act, are prepared primarily for the management and oversight of the General Revenue Fund based upon the policies, programs, and priorities of the government. Impacts of consolidation are summarized in the Estimates and included on a net basis as Consolidation and Accounting Adjustments.

For comparison with these consolidated financial statements, the Estimates were adjusted on a line-by-line basis to gross up the associated revenues and expenses of the consolidated entities.

(d) Significant Accounting Policies

Revenues

Revenues are recorded on the accrual basis. The main components of revenue are various taxes, legislated levies, program recoveries, user fees, and investment income. Revenues from Personal and Corporate Income Taxes, as well as Harmonized Sales Tax, are accrued in the year earned based upon estimates using statistical models. Tax revenues are recorded at the amount estimated, after considering certain adjustments for non-refundable tax credits and other adjustments from the federal government. Refundable tax credits are not recognized as a reduction of tax revenues.

Government transfers are recognized as revenue in the period during which the transfer is authorized and all eligibility criteria are met, except when and to the extent that the transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers meeting the definition of a liability are recorded as deferred revenue and are recognized as revenue when the funds are used as intended.

Expenses

Expenses are recorded on the accrual basis and are reported in more detail in Note 10, Expenses by Object. Grants and other government transfers are recognized as expenses in the period at the earlier of 1) the transfer being authorized and all eligibility criteria are met by the recipients and 2) time of the payment.

Provisions are made for probable losses on certain loans, investments, loan guarantees, accounts receivable, advances, forgivable loans, and for contingent liabilities when it is likely that a liability exists and the amount can be reasonably determined. These provisions are updated as estimates are revised, at least annually.

Financial Assets

Cash and Short-Term Investments are recorded at cost, which approximate market value. Investments are R-1 (low, mid, high) rated federal and provincial government bills or promissory notes, bankers’ acceptances, term deposits, and commercial paper. Terms of investments are generally 1 to 90 days. The average interest rate was 1.03 per cent at year-end.

Accounts Receivable and Advances are recorded at the principal amount less valuation allowances.

76

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

1. Financial Reporting and Accounting Policies (continued)

Inventories for Resale are held for sale in the ordinary course of operations and are recorded at the lower of cost and net realizable value.

Loans are recorded at cost less adjustments for concessionary assistance and any prolonged impairment in value. Concessionary assistance consists of subsidies provided by the Province and is recognized as an expense at the date of issuance of the loan. Any loan write-offs must be approved by the Governor-in-Council. Loans usually bear interest at approximate market rates and normally have fixed repayment schedules.

Investments are recorded at cost less adjustments for concessionary assistance and any prolonged impairment in value. Concessionary assistance consists of subsidies provided by the Province and is recognized as an expense at the date of issuance of the investment. Any write-down of an investment to reflect a loss in value is not reversed if there is a subsequent increase in value.

Liabilities

Bank Advances and Short-Term Borrowings have initial maturities of one year or less and are recorded at cost, which approximates market value. At year-end, short-term Canadian dollar borrowings had a weighted average interest rate of 1.00 per cent.

Unmatured Debt consists of debentures and various loans in Canadian and foreign currencies and capital leases. Debt is recorded at par, net of sinking funds (including public debt management funds).

Hedge accounting is used when financial instruments form a hedging relationship, the relationship is highly effective, and it is considered to be consistent with the Province’s financial risk management goals. To have reasonable assurance of the effectiveness of a hedging relationship, the Province must expect the relationship to be effective in achieving offsetting changes in the fair value or cash flows of the hedged item and the hedging item. Effectiveness requires a high correlation of changes in fair values or cash flows. To ensure hedge effectiveness, the Province employs non-speculative derivatives that match the critical terms of the underlying hedged item.

Hedging relationships include synthetic instruments, which involve relationships between two or more assets or liabilities with matching terms for the purpose of emulating the net cash flows or other characteristics of a single asset or liability. Synthetic instrument accounting is used to account for the assets and liabilities in a synthetic instrument relationship as though they were the item being emulated.

Sinking Fund and Public Debt Management Fund investments are recorded at cost and consist primarily of debentures of the Province of Nova Scotia, other provincial governments, and the Government of Canada. Premiums and discounts on sinking funds are deferred and amortized over the life of the investment. Amortization and realized gains and losses for premiums and discounts relating to sinking fund balances and installments are netted against sinking fund earnings.

Unamortized Foreign Exchange Translation Gains and Losses result when debentures payable in foreign currencies, and sinking funds invested in foreign currencies are translated into Canadian dollars at the rate of exchange in effect at March 31 and upon entering into derivative contracts. Foreign exchange gains and losses on the translation of foreign currency are amortized on a straight-line basis over the remaining term of the related monetary item.

77

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

1. Financial Reporting and Accounting Policies (continued)

Premiums and Discounts, as well as underwriting commissions relating to the issuance of debentures, are deferred and amortized over the term of the related debt. Amortization and realized foreign exchange gains and losses, premiums and discounts relating to debt balances, serial retirements, sinking fund balances, and installments are charged to debt servicing costs except as noted above.

Pension, Retirement and Other Obligations include various employee future benefit plans including accumulated sick leave benefits. Pension liabilities for defined benefit plans are calculated using the projected benefit actuarial method using accounting assumptions that reflect the Province’s best estimates of performance over the long-term. The projected benefit actuarial method attributes the estimated cost of retirement benefits to the periods of employee service. The net pension liability represents accrued pension benefits less the market related value of pension assets (if applicable) and the balance of unamortized experience gains and losses. The market related values are determined in a rational and systematic manner so as to recognize asset market value gains and losses over a five-year period. The pension benefit plan for the majority of health sector employees is offered by a multi-employer plan administrator and is not sponsored by the Province. Employer contributions to this plan are expensed in the period paid. The accrued benefit asset (liability) of this plan is not recognized in these financial statements.

Accumulated Sick Leave Benefits (ASLBs) arise from sick leave provisions in certain governmental units that accumulate but do not vest. Due to the nature of these benefits, a liability and an expense are measured using actuarial valuations taking into consideration the extent to which accumulated sick days are expected to be used by employees in future years. The accrued benefit obligation is accrued as employees render the service that gives rise to the benefits. These benefits are unfunded, meaning the Province has not set aside any assets to cover the future related costs.

Contingent liabilities, including provisions for losses on loan guarantees, are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. In cases where an accrual is made, but exposure exists beyond the amount accrued, this excess exposure would also be disclosed, unless the impact is immaterial or the disclosure would have an adverse effect on the outcome of the contingency.

Net Debt

Net Debt represents the total liabilities of the Province less its financial assets. Net debt is the accumulation of current and past annual surpluses and deficits and net investments in non-financial assets.

Non-Financial Assets

Tangible Capital Assets have useful lives extending beyond the accounting period, are held for use in the production and supply of goods and services, and are not intended for sale in the ordinary course of operations. Tangible capital assets are recorded at gross historical cost (or estimated cost when the actual cost is unknown) and include all costs directly attributable to the acquisition, construction, development, and installation of the tangible capital asset, except interest. Tangible capital assets include land, buildings, major equipment and software, vehicles, ferries, roads, highways, and bridges.

78

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2012

1. Financial Reporting and Accounting Policies (continued)

Tangible capital assets do not include intangibles or assets acquired by right, such as forests, water and mineral resources, or works of art and historical treasures. Tangible capital assets are amortized to expense over the useful lives of the assets. The amortization methods and rates applied by the other governmental units are not adjusted to the methods and rates used by the General Revenue Fund.

Inventories of Supplies are held for consumption or use by the Province in the course of its operations. Inventory is recorded at the lower of cost and net realizable value.

Prepaid Expenses are cash disbursements for goods or services, other than tangible capital assets and inventories of supplies, that will provide economic benefits in one or more future periods. The prepaid amount is recognized as an expense in the year the good or service is used or consumed.

Accumulated Deficits

Accumulated Deficits represent the total liabilities of the Province less financial assets and non-financial assets. This represents the cumulative balance of net surpluses and deficits arising from the operations of the Province.

(e) Measurement Uncertainty

Uncertainty in the determination of the amount at which an item is recorded in the financial statements is known as measurement uncertainty. Many items are measured using management’s best estimates based on assumptions that reflect the most probable set of economic conditions and planned courses of action. Uncertainty exists whenever estimates are used because it is reasonably possible that there could be a material difference between the recognized amount and another reasonably possible amount.

Measurement uncertainty exists in the accruals for such items as pension, retirement and other obligations, environmental remediation obligations, and federal and provincial source revenues. The nature of the uncertainty in the accruals for pension, retirement and other obligations arises because actual results may differ significantly from the Province’s various assumptions about plan members and economic conditions in the marketplace. Uncertainty exists in the accruals for environmental remediation obligations because the actual extent of the remediation activities, methods, and site contamination may differ significantly from the Province’s original remediation plans. Uncertainty related to Sales and Income Taxes, petroleum royalties, Canada Health Transfer, and Canada Social Transfer arises because of the possible differences between the estimated and actual economic growth and other assumptions used in statistical models to accrue these revenues.

(f) Future Changes in Accounting Policies

The Public Sector Accounting Board has issued a new accounting recommendation effective for fiscal years beginning on or after April 1, 2014. Section PS 3260 - Liability for Contaminated Sites establishes standards on how to account for and report a liability associated with the remediation of contaminated sites. Specifically, the section:

a) defines which activities would be included in a liability for remediation

b) establishes when to recognize and how to measure a liability for remediation

c) provides the related financial statement presentation and disclosure requirements.

The Province is currently analyzing the impacts of this standard on its financial statements.

79

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

2. Accounting Changes

Accounting changes were made during the year that have the following impacts:

($ thousands)
	2013						2012
	Net Debt April 1, 2012			Accumulated Deficits April 1, 2012			Provincial Deficit			Net Debt April 1, 2011			Accumulated Deficits April  1, 2011
a) Accumulated Sick Leave Benefits		(55,172	)		(55,172	)		(4,343	)		(50,829	)		(50,829	)
b) Non-Teaching Retiring Allowances		(4,924	)		(4,924	)		(277	)		(4,647	)		(4,647	)
c) Conversion to PSAS
CDHA		9,872			9,872			5,898			3,974			3,974
IWK		(17,193	)		(17,193	)		(7,943	)		(9,250	)		(9,250	)
NSCC		(2,706	)		(2,706	)		(1,294	)		(1,412	)		(1,412	)
SSDHA		(2,592	)		(2,592	)		(2,336	)		(256	)		(256	)
d) Correction of Prior Period Errors
GBEs		(5,191	)		(5,191	)		(224	)		(4,967	)		(4,967	)
Deferred Capital Grants		(61,546	)		(61,546	)		—			(61,546	)		(61,546	)
		(139,452	)		(139,452	)		(10,519	)		(128,933	)		(128,933	)

a) Accumulated Sick Leave Benefits

Actuarial valuations of sick leave provisions that accumulate but do not vest were completed for certain governmental units during 2013. These liabilities were recorded for the first time in the 2013 fiscal year with retroactive restatement of the comparative year. The 2012 impact was an increase of $4.3 million in expenses and an increase of $50.8 million to opening accumulated deficits.

b) Non-Teaching Retiring Allowances – Regional School Boards

Actuarial valuations of retirement allowances for non-teaching staff at certain school boards were completed during 2013. These liabilities were recorded for the first time in the 2013 fiscal year with retroactive restatement of the comparative year. The 2012 impact was an increase of $0.3 million in expenses and an increase of $4.6 million to opening accumulated deficits.

c) Conversion to Public Sector Accounting Standards – Government Not-For-Profit Organizations Effective April 1, 2012, Government Not-For-Profit Organizations (GNFPOs) adopted public sector accounting standards (PSAS) on a retroactive basis with restatement of the prior year. Certain changes upon conversion resulted in adjustments to the Province’s accounts as follows:

i. Capital District Health Authority (CDHA)

CDHA identified and consolidated a government business enterprise (GBE) under its control, derecognized an unrealized gain on long-term investments, and recognized its internally restricted deferred capital grants as revenue. The 2012 impact of the conversion was a decrease of $0.9 million to the Province’s investment in GBEs, a decrease of $0.7 million in net income from GBEs, a decrease of $1.5 million in both investments and investment income, a decrease of $12.3 million in deferred revenue, an increase of $8.1 million to other provincial revenue, and a decrease of $4.0 million to opening accumulated deficits.

80

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

2. Accounting Changes (continued)

CDHA made other changes that did not impact the provincial deficit, net debt, and opening accumulated deficits in 2012. Cash and short-term investments of $62.1 million were reclassified to investments. Recoveries that were previously netted against expenses were grossed up, resulting in an increase in other provincial revenue of $42.4 million with offsetting increases of $23.4 million in salaries and benefits and $19.0 million in operating expenses.

ii. Izaak Walton Killam Health Centre (IWK)

IWK identified certain grants and funding as externally restricted and recorded them as deferred capital and research revenue. The 2012 impact of this change was a decrease of $7.9 million in other revenue and an increase of $9.3 million to opening accumulated deficits.

IWK made another change that did not impact the provincial deficit, net debt, and opening accumulated deficits in 2012. IWK derecognized funds held in trust on behalf of stakeholders, reducing cash and short-term investments and accounts payable both by $10.0 million.

iii. Nova Scotia Community College (NSCC)

Externally restricted assets and revenues were reclassified to deferred revenue, and employee future benefit plans were retroactively restated. The 2012 impact of these changes was a decrease of $0.5 million in revenue, an increase of $0.8 million in salaries and benefits, an increase of $6.1 million in deferred revenue, a decrease of $3.4 million in pension, retirement and other obligations, and an increase of $1.4 million to opening accumulated deficits.

iv. South Shore District Health Authority (SSDHA)

Externally restricted capital funding was reclassified to deferred revenue. The 2012 impact of this change was an increase of $2.6 million in deferred revenue, a decrease of $2.3 million in other provincial revenue, and an increase of $0.3 million to opening accumulated deficits.

d) Correction of Prior Period Errors

i. Two GBEs reported retroactive restatements. Nova Scotia Liquor Corporation retroactively corrected its liability for accumulating non-vesting sick leave relating to the previous year. The 2012 impact of this correction was a decrease of $5.6 million to the Province’s investment in GBEs, a decrease of $0.2 million in net income from GBEs, and an increase of $5.4 million to opening accumulated deficits and net debt. Halifax-Dartmouth Bridge Commission retroactively restated its property, plant and equipment balance relating to the previous year. The 2012 impact of this change was an increase of $0.4 million to the Province’s investment in GBEs, a decrease of $0.1 million in net income from GBEs, and a decrease of $0.5 million to opening accumulated deficits and net debt.

ii. Deferred capital grants revenue for a governmental unit should have been eliminated upon consolidation in the year received. This resulted in an increase of $61.5 million to the opening accumulated deficits and net debt in 2012.

The Province adopted two new public sector accounting standards in the current year as follows:

PS 3410 – Government Transfers

The Province prospectively adopted this revised accounting standard effective April 1, 2012, which establishes how to account for and report government transfers to individuals, organizations, and other governments from both a transferring government and a recipient government perspective. As a result of adopting this revised standard, an additional $38.4 million in grant expenses were recorded in the current year with no impact to revenues.

81

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

2. Accounting Changes (continued)

PS 3510 – Tax Revenue

The Province retroactively adopted this new accounting standard effective April 1, 2012, whereby tax revenue is recognized at its gross amount, tax concessions are netted against tax revenue, and transfers through a tax system are recognized as expenses. As a result, both tax revenues and tax credits and rebates for the current year were increased by $56.7 million (2012 - $48.2 million) with no impact on the provincial deficit, net debt, and accumulated deficits of either year.

3. Restricted Assets

As at March 31, 2013, assets of $47.3 million (2012 - $47.2 million) were designated for restricted purposes by parties external to the Province. Restricted cash and short-term investments totaled $8.8 million, comprised of: $4.2 million for endowment and scholarship funds, $2.4 million for gas market development as part of the Nova Scotia Market Development Initiative Fund, and $2.2 million for various other purposes. Restricted investments totaled $38.5 million, comprised of: $26.7 million for Capital District Health Authority’s (CDHA) Centre for Clinical Research, $7.6 million for other CDHA purposes, and $4.2 million for various endowment funds.

Externally restricted inflows not spent by year-end create a liability that will be settled by using the restricted assets for their intended purposes. The restricted assets described in this note are segregated from other assets and will be used as prescribed in a future period.

4. Assets Held for Sale

On December 10, 2012 (the “Acquisition Date”), the Province purchased 100% of the outstanding shares of Bowater Mersey Paper Company (Bowater), along with its wholly owned subsidiary, Brooklyn Power Corporation (BPC), for cash consideration of one dollar plus acquisition costs of $1.3 million. The Province gained control of the entity with the full intention to manage the orderly wind-up of Bowater’s operations. Effective December 11, 2012, Bowater’s name was changed to Renova Scotia Bioenergy Inc. (Renova).

The acquisition was accounted for using the purchase method. The cost of this acquisition did not result in a purchase premium having to be charged to expenses in the current year. The net assets acquired on the Acquisition Date are summarized as follows:

Total assets acquired	$149.5 million
Total liabilities assumed	$148.2 million

At March 31, 2013, assets in the amount of $30.6 million were classified as held for sale. An agreement was in place at the Acquisition Date with a third party to purchase the shares of BPC for $25.0 million. The sale is expected to close in the next fiscal year. Other assets held for sale include redundant buildings, lands, and equipment including spare parts and store’s inventory that were previously held by Bowater.

The Province’s Consolidated Statement of Operations and Accumulated Deficits includes the results of Renova from December 10, 2012 to March 31, 2013.

82

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

5. Deferred Revenue

Receipts are recorded as deferred revenue if they are restricted by external parties for a stated purpose, such as a specific program or the purchase of tangible capital assets. Deferred revenue is recognized into revenue over time as the recognition criteria are achieved or is drawn down to reimburse third parties as conditions are met. The balance includes the following components:

($ thousands)	2013		2012
			(as restated)
Nova Scotia Housing Development Corporation - Social Housing Agreement		61,769		58,602
Provincial-Territorial Base Funding Agreement - Infrastructure and Highways		39,777		17,277
Capital District Health Authority - Capital and Research Funds		34,460		33,850
Izaak Walton Killam Health Centre - Capital and Research Funds		20,204		17,193
Resource Recovery Fund Board Inc. - Unearned Revenue from Container Deposits, Paint Levies and Tire Deposits		14,167		14,562
Nova Scotia Community College		10,271		7,981
Early Learning Child Care Funds		7,161		17,961
Seniors Pharmacare		6,069		9,487
Cape Breton District Health Authority		5,691		5,438
Heritage Canada - Official Languages in Education Protocol (OLEP)		4,755		5,668
Waterfront Development Corporation Limited		3,996		4,337
Labour Market Agreement		3,927		2,588
Nova Scotia Market Development Initiative Fund		3,771		4,884
C-50 Police Officers Recruitment Fund		3,500		7,500
Halifax Regional School Board		3,460		3,217
South Shore District Health Authority - Capital Funds		3,318		3,436
Trade Centre Limited		3,293		5,104
Nova Scotia Gas Tax Agreement on Municipal Funding		1,400		45,780
Other Externally Restricted Funds		14,350		14,002
Total Deferred Revenue		245,339		278,867

6. Federal Equalization Repayable Loan

The Province received an equalization repayable loan from the federal government in March 2005 in the amount of $120.3 million. The loan bears no interest and is being repaid over 10 years, with bi-monthly deductions of $0.5 million that commenced in April 2006. As at March 31, 2013, the balance of the loan was $36.1 million (2012 - $48.1 million).

83

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

7. Pension, Retirement and Other Obligations

The Province offers a variety of pension and other retirement, post-employment, and special termination benefits. The Province is responsible for adequately funding most of the plans. Except as otherwise noted, the cost of benefits are recognized in the periods the employee provides service. For benefits that do not vest or accumulate, a liability is recognized when an event that obligates the Province to pay benefits occurs.

(a) Description of Obligations

Pension Benefit Plans

The Province sponsors two funded pension plans, the Nova Scotia Public Service Superannuation Plan (PSSP) and the Nova Scotia Teachers’ Pension Plan (TPP). Both plans are defined benefit plans with plan assets primarily composed of Canadian and foreign equities, government and corporate bonds, debentures, secured mortgages and real estate. The plans are jointly funded with contributions from employees being matched by the province. Benefits paid upon retirement are based on an employee’s length of service, rate of pay, and inflation adjustments.

On April 1, 2006, the Minister of Finance transferred responsibility for the governance of the Nova Scotia Teachers’ Pension Plan to the Teachers’ Pension Plan Trustee Inc. (TPPTI). The TPPTI is the trustee for the plan and is comprised of nine board members - four nominated by the Nova Scotia Teachers’ Union, four nominated by the Province, and one Chair agreed to by both parties. As a result of this transfer, the Province and Union agreed to share all surpluses and deficits of the plan equally. The Province accounts for half of all components of the accrued benefit liability associated with the plan in its financial statements. In addition, the Province recognizes half of components associated with the net benefit expense (recovery) associated with this plan. As at March 31, 2013, the total accrued benefit liability associated with this plan was $347.8 million.

The Province has several unfunded defined pension plans. The majority of these plans do not require contributions from employees. Benefits paid upon retirement are based on an employee’s length of service, rate of pay, and inflation adjustments.

Employees in the health sector are members of a multi-employer defined benefit pension plan. As the Province does not sponsor this plan, the annual net benefit plan expense is the amount of required contributions provided for employees’ services rendered during the year. The accrued benefit asset (liability) of this plan is not recognized in these financial statements. The most recent actuarial valuation was performed on April 1, 2012 and extrapolated to December 31, 2012, which indicated a funding surplus of $0.35 million.

Other Retirement Benefit Plans

The Province sponsors two other retirement benefit plans: retirement allowances and retirement health plan benefits. These plans are not funded. Benefits paid upon retirement for retirement allowances are based on an employee’s length of service and rate of pay. Retirement health plan benefits vary depending on the collective agreements negotiated with each group. The Province pays 65 per cent and 100 per cent of the cost of retirement health plan benefits for the PSSP and TPP retirees, respectively.

84

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

7. Pension, Retirement and Other Obligations (continued)

Post-Employment Benefits

The Province offers two significant post-employment benefit plans: Self Insured Workers’ Compensation and Long-Term Disability. The amount recorded in these financial statements represents the actual amount of benefits paid during the year plus the actuarial estimate of future payments, based on claims ongoing at year-end. For the Long-Term Disability plan, the obligation is offset by the market related value of plan assets.

Accumulated Sick Leave Provisions

The Province’s Regional School Boards, District Health Authorities, and Nova Scotia Community College have collective agreements containing sick leave provisions that accumulate but do not vest. Under Public Sector Accounting Standards, governments must measure and record an obligation associated with the accumulated sick leave benefits (ASLBs) that are anticipated to be used in future years. Within the Province, ASLBs are unfunded, meaning there are no assets set aside to cover the related costs of these benefits in the future.

Due to the nature of these benefits, actuarial valuations are required to estimate their financial value. An actuarial assumption must be developed to reflect the probability of employees actually using ASLB “banked days”. This involves a detailed analysis of several years of data to determine historical usage. A historical usage pattern is not based on the data group as a whole but must take into account a number of specific factors such as, but not limited to, gender, age, and type of contract/job responsibilities, each of which may impact the anticipated amount of accumulated sick leave time to be taken in the future. As a result, the anticipated usage assumption may involve a number of criteria and circumstances that then must be applied to the data in coordination with other actuarial assumptions such as discount rate, retirement assumptions, future salary increases, mortality tables, etc.

Actuarial valuations of ASLBs have been completed and form the basis for recording these liabilities in 2013 with retroactive restatement of the comparative year for certain governmental units as described in Note 2.

Special Termination Benefits

The Province has offered early retirement incentive programs to members of the PSSP and TPP at various times commencing in 1986 and 1994 respectively. Qualified members were offered additional years of pensionable service if they elected to retire. The cost of these benefits was accrued in the year the employee accepted the early retirement option.

Retirement Obligations of Renova Scotia Bioenergy Inc.

As part of the Province’s acquisition of Renova, described in Note 4, there were unfunded pension liabilities associated with various pension plans and retirement health benefits. The obligations and assets associated with these plans have been noted in the continuity statements in Note 7(c) as “acquisitions.” The net unfunded liabilities of these plans totaled $112.0 million as at December 10, 2012. Land and other assets were subsequently sold and the proceeds used to fund the liabilities. As at March 31, 2013, the net unfunded liabilities associated with these plans were $24.7 million and are included in these financial statements.

85

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

7. Pension, Retirement and Other Obligations (continued)

(b) Summary of Accrued Benefit Liabilities

($ thousands)	2013		2012
			(as restated)
Pension Benefit Plans		230,062		102,205
Other Benefit Plans		1,774,274		1,678,741
Total Accrued Benefit Liability		2,004,336		1,780,946

(c) Summary of Activity During the Year

($ thousands)	Pension Benefit Plans						Other Benefit Plans
	2013			2012			2013			2012
										(as restated)
Projected Benefit Obligation, Beginning of Year		7,953,442			7,649,132			1,773,530			1,686,706
Current Benefit Cost		215,961			201,835			109,868			97,846
Interest Cost		529,056			524,274			80,817			80,039
Actuarial (Gains) Losses		38,676			22,137			(5,943	)		12,664
Benefit Payments		(487,471	)		(461,850	)		(109,812	)		(104,316	)
Other		8,772			10,948			(1,313	)		591
Acquisition		309,400			—			8,400			—
Plan Amendments		—			6,966			8,608			—
Projected Benefit Obligation, End of Year		8,567,836			7,953,442			1,864,155			1,773,530
Market Related Value of Plan Assets, Beginning of Year		6,740,107			6,771,568			124,861			114,503
Expected Return on Plan Assets		438,971			462,109			6,997			7,097
Actuarial Gains (Losses)		(149,853	)		(321,733	)		(4,272	)		(5,098	)
Benefit Payments		(487,471	)		(461,850	)		(109,812	)		(104,316	)
Other		8,453			10,948			(411	)		(579	)
Acquisition		205,800			—			—			—
Employer Contributions		242,436			154,449			104,251			102,772
Employee Contributions		125,598			124,616			10,159			10,482
Market Related Value of Plan Assets, End of Year		7,124,041			6,740,107			131,773			124,861
Funded Status, End of Year		(1,443,795	)		(1,213,335	)		(1,732,382	)		(1,648,669	)
Unamortized Net Actuarial (Gains) Losses		1,213,733			1,111,130			14,583			19,283
Valuation Allowance		—			—			(56,475	)		(49,355	)
Accrued Benefit Liability, End of Year		(230,062	)		(102,205	)		(1,774,274	)		(1,678,741	)

86

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

7. Pension, Retirement and Other Obligations (continued)

(d) Actuarial Assumptions

The table below shows significant weighted-average assumptions used to measure pension and other benefit plan obligations.

	Pension Benefit Plans						Other Benefit Plans
	2013			2012			2013			2012
Long-term inflation rates		2.25	%		2.50	%		2.25	%		2.50	%
Expected real rate of return on plan assets		4.15% + 4.40	%		4.29% + 4.39	%		—			—
Rate of compensation increase		2.50% to 5.25% + merit			2.50% to 5.25% + merit			2.40% to 4.90% + merit			2.65% to 5.15% + merit
Discount rate - main plans		6.50% + 6.75	%		6.90% + 7.00	%		4.30	%		4.75	%
Other		—			—			5.57	%		6.09	%

Other assumptions

7.0 per cent annual rate increase in the cost per person of covered healthcare benefits for 2012-13, decreasing to an ultimate rate of 4.5 per cent per annum over 15 years.

7.0 per cent annual rate increase in the cost per person of covered prescription drugs for 2012-13, decreasing to an ultimate rate of 4.5 per cent per annum over 15 years.

Actuarial assumptions are reviewed and assessed on a regular basis to ensure that the accounting assumptions take into account various changing conditions and reflect the Province’s best estimate of performance over the long-term.

(e) Other Disclosure

The net unamortized actuarial gains (losses) are amortized on a straight-line basis over the expected average remaining service life (EARSL) of the related employee groups ranging from 4 years to 18 years (weighted-average EARSL is 13 years).

During the year, the weighted average actual rate of return on plan assets was 10.1 per cent (2012 - 2.7 per cent). The total market value of plan assets at March 31, 2013 was $9.2 billion (2012 - $8.6 billion).

The most recent actuarial valuations performed for most of the benefit plans was at December 31, 2011 with the exception of certain other retirement benefit plans that were performed on various dates and the post-employment benefit plans that are performed annually at March 31.

87

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

7. Pension, Retirement and Other Obligations (continued)

(f) Net Benefit Plans Expense

The table below shows the components of the net benefit plans expense (recovery).

($ thousands)	Pension Benefit Plans						Other Benefit Plans
	2013			2012			2013			2012
										(as restated)
Current Benefit Cost		215,961			201,835			109,868			97,846
Employee Contributions		(126,117	)		(125,138	)		(10,160	)		(10,492	)
Employer Contributions*		39,706			36,469			—			—
Plan Amendments		—			6,966			8,608			—
Amortization of Net Actuarial (Gains) Losses		85,919			48,080			1,294			(4,247	)
Recognition of Actuarial Losses on Plan Amendment		—			254			(425	)		—
Other		14,879			23,774			1,146			1,169
Increase (Decrease) in Valuation Allowance		—			(3,297	)		7,120			12,983
Interest Cost		529,056			524,274			80,817			80,039
Expected Return on Plan Assets		(438,971	)		(462,109	)		(6,997	)		(7,097	)
Employer Contributions to Multi-Employer Plan		97,402			96,284			—			—
Net Benefit Plans Expense		417,835			347,392			191,271			170,201

* This represents one-half of the employer contributions made by the Province to the TPP. Included in the figures above for 2013 and 2012 are one-half of all transactions associated with TPP to reflect the Province’s share of this plan under joint trusteeship.

8. Restructuring of Nova Scotia Agricultural College

On September 1, 2012, the Nova Scotia Agricultural College (NSAC) was merged with Dalhousie University (Dalhousie) in accordance with the Dalhousie University - Nova Scotia Agricultural College Merger Act. The NSAC campus land, buildings, and other operating assets were transferred to Dalhousie as at the date of the merger. Therefore, NSAC no longer forms part of the Province’s Government Reporting Entity effective September 1, 2012. The Province’s Consolidated Statement of Operations and Accumulated Deficits includes the results of NSAC from April 1, 2012 to September 1, 2012. The merger included a three year funding agreement between the Province and Dalhousie. The amount of funding for 2012-13 was included in Agriculture expenses.

Expenses related to the transfer of NSAC charged to Restructuring Costs were as follows:

($ thousands)	Adjusted Estimate 2013		Actual 2013		Actual 2012
Net Book Value of Assets Transferred to Dalhousie		26,600		29,218		—
Other Transition Costs		7,917		7,778		—
Restructuring of Nova Scotia Agricultural College		34,517		36,996		—

88

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

8. Restructuring of Nova Scotia Agricultural College (continued)

The results of the operations of NSAC from April 1, 2012 to August 31, 2012 included in other provincial revenue and Department of Agriculture expenses were as follows:

($ thousands)	Adjusted Estimate 2013			Actual 2013			Actual 2012
Other Provincial Revenue Revenue from Nova Scotia Agricultural College		9,934			4,918			11,188
Department of Agriculture Expenses Expenses of Nova Scotia Agricultural College		22,726			7,821			22,677
Results of Nova Scotia Agricultural College		(12,792	)		(2,903	)		(11,489	)

9. Debt Servicing Costs

($ thousands)	2013			2012
				(as restated)
CDN$ Denominated Debt		770,785			736,035
Pension, Retirement and Other Obligations		164,033			135,133
Capital Leases		16,000			17,942
Other Debt		8,503			10,165
Premium / Discount Amortization		(8,321	)		(11,510	)
Foreign Exchange		(30,679	)		(25,897	)
Miscellaneous		1,163			1,130
Total Debt Servicing Costs		921,484			862,998

Debt servicing costs for the Province’s government business enterprises were $13.4 million (2012 - $13.7 million) for the year ended March 31, 2013.

10. Expenses by Object

($ thousands)	2013		2012
			(as restated)
Grants and Subsidies		3,712,408		3,565,817
Salaries and Employee Benefits		3,548,870		3,468,119
Operating Goods and Services		1,473,363		1,452,084
Professional Services		332,929		306,004
Amortization		382,898		362,442
Debt Servicing Costs		921,484		862,998
Other		32,404		1,814
Total Expenses by Object		10,404,356		10,019,278

89

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

11. Cash Flow – Net Change in Other Items

($ thousands)	2013			2012
				(as restated)
Change in Receivables from Government Business Enterprises		9,642			(3,891	)
Change in Accounts Receivable		116,955			180,752
Change in Accounts Payable and Other Short-Term Borrowings		189,186			(259,908	)
Change in Inventories for Resale		(2,733	)		(1	)
Change in Assets Held for Sale		(30,566	)		—
Change in Inventories of Supplies		4,558			(307	)
Change in Prepaid Expenses		5,077			8,889
Change in Deferred Revenue		(33,528	)		(127,634	)
Change in Accrued Interest		4,959			8,069
Change in Pension, Retirement and Other Obligations		223,390			128,110
Total Net Change in Other Items		486,940			(65,921	)

12. Contingencies and Contractual Obligations

(a) Contingent Liabilities

Environmental Sites

Various provincially owned sites throughout the province are considered environmental or contaminated sites. Studies are ongoing to assess the nature and extent of damage to develop remediation plans. Provisions for these costs are recorded when it is determined a liability exists and a reasonable estimate of the remediation costs can be made. With the exception of the remediation costs noted in the following paragraphs, no further provisions have been recognized in these financial statements.

Engineering and environmental studies have generated estimates for the cost of remediation of the Sydney Steel Corporation (SYSCO) and adjacent sites as well as the Sydney Tar Ponds site. As a result, the Province recorded liabilities totaling $318.5 million in 2000 for environmental site clean up. At March 31, 2013, $65.2 million (2012 - $72.4 million) remains unspent. The provision will continue to be utilized for future decommissioning, demolition, and remediation of SYSCO’s and adjacent sites, including the Sydney Tar Ponds site. Based on currently available information, the provision, in aggregate, appears to be sufficient to cover the estimated costs to remediate these sites.

Other remediation liabilities amounting to $16.0 million (2012 - $12.5 million) have been recognized in these financial statements.

Lawsuits

The Province of Nova Scotia is involved in various legal proceedings arising from government activities. These different disputes result from breaches of contract, damages suffered by individuals or property, and related elements. These claims include items with pleading amounts and items where an amount is not specified. While the total amount claimed in these actions may be significant, their outcomes are not certain.

When a liability is determined to likely exist and the amount can be reasonably estimated, the amount is recorded as an accrued liability and an expense. The accrued liability for pending litigation in process at March 31, 2013 was $52.0 million (2012 - $42.6 million).

90

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

12. Contingencies and Contractual Obligations (continued)

Guarantees

Guarantees by the Province are authorized by various acts of legislature and provided through specific agreements and programs to repay promissory notes, bank loans, lines of credit, mortgages, and other securities. Provisions for losses on guarantees are recorded when it is likely that a loss will occur. The amount of the loss provisions represents the Province’s best estimate of future payments. Estimates take into consideration the nature of the loan guarantees, loss experience, and current conditions. The provisions are reviewed on an ongoing basis and changes in the provisions are recorded as expenses in the year they become known. Details on guarantees authorized, utilized, and accrued are presented in Schedule 8.

Other Contingent Liabilities

The Province also has contingent liabilities in the form of indemnities. The Province’s potential liability, if any, cannot be determined at this time.

(b) Contingent Gains

The Province may receive funds in the future from recoveries of various types of claims paid out and other agreements pending the occurrence of certain events. Recoveries are recorded once the contingent events occur and collectability is reasonably assured.

(c) Contractual Obligations

As at March 31, 2013, the Province has contractual obligations as follows:

($ thousands)	Governmental Units		Government Business Enterprises		Total Contractual Obligations
Fiscal Year
2014		1,052,809		17,570		1,070,379
2015		875,295		8,640		883,935
2016		580,648		9,116		589,764
2017		485,265		9,102		494,367
2018		469,424		3,572		472,996
2019 - 2023		1,744,847		—		1,744,847
2024 - 2028		1,630,582		—		1,630,582
2029 - 2033		1,635,169		—		1,635,169
2034 & thereafter		611,153		—		611,153
		9,085,192		48,000		9,133,192

These contractual obligations are comprised of $8,894.0 million from the General Revenue Fund, $191.2 million from the Province’s Governmental Units, and $48.0 million from the Government Business Enterprises. Included are contractual obligations from the Department of Health and Wellness of $3,974.1 million for service agreements with long-term care facilities and $682.7 million for the management of the ground ambulance fleet, $2,662.4 million from the Department of Justice for RCMP policing services, $592.9 million from the Department of Labour and Advanced Education for university assistance, $220.7 million from the Department of Education for P3 School maintenance agreements, and $92.2 million from Nova Scotia Business Inc. for projects approved under its various programs.

91

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

12. Contingencies and Contractual Obligations (continued)

LEASES

As at March 31, 2013, the Province was contractually obligated under various operating leases. Future minimum annual lease payments are as follows:

($ thousands)	Governmental Units		Government Business Enterprises		Total Lease Payments
Fiscal Year
2014		85,557		7,588		93,145
2015		57,505		6,328		63,833
2016		47,216		4,626		51,842
2017		41,327		3,431		44,758
2018		26,835		2,286		29,121
2019 - 2023		38,237		7,538		45,775
2024 - 2028		2,148		—		2,148
2029 - 2033		1,474		—		1,474
		300,299		31,797		332,096

13. Risk Management and the Use of Derivative Financial Instruments

As a result of borrowing in both Canadian and foreign financial markets and being a party to financial instruments, the Province is exposed to interest rate risk, foreign exchange risk, credit risk, and liquidity risk. The Province employs various risk management strategies and operates within fixed risk exposure limits to ensure exposure to risk is managed in a prudent and cost effective manner. A variety of strategies are used, including the use of derivative financial instruments (derivatives). Derivatives are financial contracts, the value of which is derived from underlying instruments. The Province uses derivatives to hedge and to mitigate foreign exchange risk and interest rate risk. The Province does not use derivatives for speculative purposes.

Interest rate risk

Interest rate risk is the risk that debt servicing costs will vary unfavourably due to fluctuations in interest rates. To reduce its exposure to interest rate risk, the Province uses derivatives to manage the fixed and floating interest rate mix of its debt portfolio. Interest rate contracts include swap agreements and options on swaps. These contracts are used to vary the amounts and periods for which interest rates on borrowings are fixed or floating.

As at March 31, 2013, the Province has executed 34 interest rate swap contracts to convert certain interest payments from fixed to floating, floating to fixed, and floating to floating. These swaps have terms remaining of 62 days to 14.6 years, a notional principal value of $1.5 billion, and a mark to market value of -$10.6 million.

Foreign exchange risk

Foreign exchange risk is the risk that the cash flows needed to repay the interest and principal on loans in foreign currencies will vary due to fluctuations in foreign exchange rates. To manage this risk, the Province uses derivative contracts to convert foreign currency principal and interest cash flows into Canadian dollar denominated cash flows. Derivative contracts hedge the underlying debt by matching the critical terms to achieve effectiveness. Foreign exchange contracts include swap agreements that are used to convert the liability for foreign currency borrowing and associated costs into Canadian dollars.

92

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

13. Risk Management and the Use of Derivative Financial Instruments (continued)

The Province has currency swap contracts which convert foreign denominated debt into Canadian dollar denominated debt as follows:

Termination Date	Original Currency	Original Principal		Current Currency	Current Principal		Mark to Market 1
		($ thousands)			($ thousands)		($ thousands)
April 16, 2019	UK£		60,000	CDN$		114,387		(28,296	)
Total	UK£		60,000	CDN$		114,387		(28,296	)
July 27, 2013	US$		300,000	CDN$		299,850		3,649
July 21, 2015	US$		750,000	CDN$		771,750		15,839
March 15, 2016	US$		150,000	CDN$		205,725		(41,337	)
January 26, 2017	US$		500,000	CDN$		562,470		9,777
February 1, 2019	US$		200,000	CDN$		198,000		14,559
July 1, 2019	US$		200,000	CDN$		199,900		10,904
November 15, 2019	US$		244,000	CDN$		246,318		11,140
March 1, 2020	US$		300,000	CDN$		409,200		(109,820	)
May 1, 2021	US$		300,000	CDN$		312,002		3,986
April 1, 2022	US$		300,000	CDN$		379,517		(72,141	)
July 30, 2022	US$		300,000	CDN$		329,310		(16,391	)
Total	US$		3,544,000	CDN$		3,914,042		(169,835	)

¹  Mark to Market is an indication of the swap’s market equivalent of the present value of future cash flows based value as at March 31, 2013. It is also the on market conditions as at March 31, 2013.

Credit risk

Credit risk is the risk that a counterparty will default on its contractual obligations. The Province manages its credit risk exposure from derivatives by, among other activities, dealing only with high credit quality counterparties and regularly monitoring compliance to credit limits. The Province’s policy requires that a minimum credit rating for counterparties to derivative transactions be ‘A’, where the minimum rating in the “A” category is “A-“or equivalent.

Liquidity risk

Liquidity risk is the risk that the Province will not be able to meet its financial commitments over the short term. To reduce liquidity risk, the Province maintains liquid reserves (cash and cash equivalents) at levels that will meet future cash requirements and will give the Province flexibility in the timing of issuing debt. In addition, the Province has a short-term note program, uncommitted bank lines, and discretionary sinking funds as alternative sources of liquidity. This risk is also managed by distributing debt maturities over many years and having 50.0 per cent of long-term debt with a maturity of over 15 years.

93

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

14. Trust Funds Under Administration

($ thousands)	2013		2012
			(as restated)
Nova Scotia Public Service Superannuation Fund (1)		4,709,136		4,369,319
Sydney Steel Corporation Superannuation Plan (1), (2)		8		12
Nova Scotia Public Service Long Term Disability Plan (1), (4)		127,804		113,597
Nova Scotia Credit Union Deposit Insurance Corporation (4)		20,584		19,534
Public Trustee (1), (5)		49,199		44,806
Miscellaneous Trusts (3)		19,778		26,105
Total Trust Funds Under Administration		4,926,509		4,573,373

(1) Financial statements of these funds are available in Public Accounts, Volume 2.

(2) Administration of the assets of Sydney Steel Corporation Superannuation Fund was assumed during 2001.

(3) Miscellaneous trusts include a large number of relatively small funds.

(4) These represent trusts with December 31 year ends.

(5) Final financial statements not available at time of production of Public Accounts, Volume 1.

Other

The Nova Scotia Teachers’ Union and the Province of Nova Scotia agreed to joint trusteeship of the Nova Scotia Teachers’ Pension Fund effective April 1, 2006. Under joint trusteeship, the Trustee of the Fund is the Teachers’ Pension Plan Trustee Inc., of which the Province has four of nine members. The Trustee is responsible for the administration of the Fund and investment management of fund assets. Total net assets available for benefits as at December 31, 2012 were $4.2 billion (2011 - $4.0 billion).

15. Related Party Transactions

Included in these consolidated financial statements are insignificant transactions with various provincial crown corporations, agencies, boards, and commissions. Significant related party transactions have been offset and eliminated for purposes of consolidated reporting. Parties are deemed to be related to the General Revenue Fund due to common control or ownership by the Province of Nova Scotia.

The most significant unadjusted related party transactions are described in more detail in Schedule 6 - Government Business Enterprises.

16. Comparative Figures

Certain of the prior year’s figures have been reclassified to conform to the presentation format adopted in the current year.

94

Province of Nova Scotia

Notes to the Consolidated Financial Statements

As at March 31, 2013

17. Subsequent Events

The Financial Measures (2012) Act, an Act Respecting Certain Financial Measures, received Royal Assent on May 17, 2012. Contained in this Act were changes to the Public Service Superannuation Act, whereby establishing the Public Service Superannuation Plan Trustee Incorporated (PSSPTI) as the new trustee of the Public Service Superannuation Plan (PSSP). This Act also established the Nova Scotia Pension Services Corporation (NSPSC). These changes were proclaimed effective April 1, 2013 (the “Effective Date”).

The PSSP transitioned to a joint governance structure on the Effective Date. Responsibility for the PSSP was transferred from the Minister of Finance to the PSSPTI. Upon this transfer, the Minister of Finance is no longer the trustee of the PSSP.

The NSPSC is a new non-profit corporation replacing the former Nova Scotia Pension Agency. The NSPSC administers the PSSP and the Teachers’ Pension Plan (TPP) under the direction and oversight of the respective joint trustee boards. NSPSC is jointly owned by the Teachers’ Pension Plan Trustee Inc. (TPPTI) and the PSSPTI. NSPSC is not controlled by the Province, thus does not form part of the Province’s government reporting entity and will not be consolidated as part of the Province’s consolidated financial statements.

95

	Schedule 1
Revenue
For the fiscal year ended March 31, 2013 ($ thousands)

	2013		2012
			(as restated)
Provincial Sources
Tax Revenue
Personal Income Tax		2,128,498		2,059,569
Corporate Income Tax		434,078		339,715
Harmonized Sales Tax		1,729,344		1,598,131
Tobacco Tax		206,287		208,631
Motive Fuel Tax		243,446		250,186
Other Tax Revenue		160,141		195,826
		4,901,794		4,652,058
Other Provincial Revenue
Recoveries		377,443		301,642
Other Revenue from Governmental Units		461,193		419,924
Municipal Contributions to School Boards		220,902		210,032
Petroleum Royalties		3,535		112,680
Registry of Motor Vehicles		113,434		117,084
Other Government Charges		68,679		70,842
Miscellaneous		130,138		128,532
Net Gain on Disposal of Crown Assets		15,310		3,367
		1,390,634		1,364,103
Net Income from Government Business Enterprises		352,097		369,370
Investment Income
Interest Revenue		83,429		88,696
Sinking Fund and Public Debt Retirement Fund Earnings		111,146		106,768
		194,575		195,464
Total Provincial Sources		6,839,100		6,580,995
Federal Sources
Equalization Payments		1,578,829		1,407,242
Canada Health Transfer		793,237		758,941
Canada Social Transfer		323,897		316,473
Recoveries		247,434		306,963
Offshore Accord		146,059		167,755
TCA Cost Shared Revenue		24,470		38,995
Crown Share		12,916		30,053
Other Federal Transfers		135,923		152,872
Total Federal Sources		3,262,765		3,179,294
Total Revenue		10,101,865		9,760,289

96

Schedule 2

Expenses

For the fiscal year ended March 31, 2013

($ thousands)

	2013		2012
			(as restated)
Agriculture
Department of Agriculture		57,683		58,895
Nova Scotia Blueberry Institute Fund		34		—
Nova Scotia Crop and Livestock Insurance Commission		2,251		3,662
Nova Scotia Harness Racing Fund		1,000		1,000
Perennia Food and Agriculture Incorporated		6,173		5,677
		67,141		69,234
Communities, Culture and Heritage
Department of Communities, Culture and Heritage		52,182		49,335
Art Gallery of Nova Scotia		4,039		3,852
Public Archives of Nova Scotia		83		107
Schooner Bluenose Foundation		622		—
Sherbrooke Restoration Commission		2,415		2,347
Vive l’Acadie Community Fund		22		8
		59,363		55,649
Community Services
Department of Community Services		880,246		895,170
Nova Scotia Housing Development Corporation		149,446		152,373
		1,029,692		1,047,543
Economic and Rural Development and Tourism
Department of Economic and Rural Development and Tourism		157,036		94,655
Bioscience Enterprise Centre Incorporated		3		2
Film and Creative Industries Nova Scotia		4,796		3,724
Nova Scotia Business Inc.		18,132		30,864
Nova Scotia Innovation Corporation		10,687		8,652
Nova Scotia Strategic Opportunities Fund Incorporated		4		17
Trade Centre Limited		15,317		16,508
Waterfront Development Corporation Limited		6,157		4,644
		212,132		159,066
Education
Department of Education		256,950		287,941
Annapolis Valley Regional School Board		127,374		129,379
Cape Breton Victoria Regional School Board		148,904		149,388
Chignecto-Central Regional School Board		190,799		193,375
Conseil scolaire acadien provincial		56,552		52,595
Halifax Regional School Board		426,174		430,436
Nova Scotia School Boards Association		617		647
Nova Scotia School Insurance Program		4,137		4,003
South Shore Regional School Board		73,173		73,293
Strait Regional School Board		78,972		80,889
Tri-County Regional School Board		66,104		66,582
		1,429,756		1,468,528

97

Schedule 2

Expenses (continued)

For the fiscal year ended March 31, 2013

($ thousands)

	2013		2012
			(as restated)
Energy
Department of Energy		29,209		30,129
Nova Scotia Market Development Initiative Fund		1,113		1,588
Pengrowth Nova Scotia Energy Scholarship Fund		71		53
		30,393		31,770
Environment
Department of Environment		24,703		26,618
Resource Recovery Fund Board Inc.		47,866		49,142
		72,569		75,760
Finance
Department of Finance		37,639		33,987
Nova Scotia Pension Agency		41,237		35,951
Nova Scotia Utility and Review Board		9,917		8,835
3052155 Nova Scotia Limited		15		13
		88,808		78,786
Fisheries and Aquaculture
Department of Fisheries and Aquaculture		8,474		8,284
Health and Wellness
Department of Health and Wellness		1,963,982		1,861,195
Annapolis Valley District Health Authority		129,969		126,561
Cape Breton District Health Authority		298,403		294,276
Capital District Health Authority		883,949		867,814
Colchester East Hants Health Authority		81,092		75,276
Cumberland Health Authority		66,749		63,672
Gambling Awareness Foundation of Nova Scotia		432		427
Guysborough Antigonish Strait Health Authority		84,382		83,729
Izaak Walton Killam Health Centre		247,970		248,237
Nova Scotia Health Research Foundation		5,442		5,771
Pictou County Health Authority		80,580		77,895
Provincial Drug Distribution Program		90,253		86,671
South Shore District Health Authority		89,355		85,316
South West Nova District Health Authority		100,267		99,585
		4,122,825		3,976,425
Justice
Department of Justice		285,320		269,193
Law Reform Commission		301		293
Nova Scotia E911 Cost Recovery Fund		4,809		5,067
Nova Scotia Legal Aid Commission		22,551		22,734
		312,981		297,287

98

Schedule 2

Expenses (continued)

For the fiscal year ended March 31, 2013

($ thousands)

	2013		2012
			(as restated)
Labour and Advanced Education
Department of Labour and Advanced Education		188,329		191,798
Nova Scotia Community College		200,572		200,412
		388,901		392,210
Assistance to Universities		380,847		387,215
Natural Resources
Department of Natural Resources		98,978		101,151
Acadia Coal Company Limited Fund		—		4
Coal Research Agreement Fund		—		2
Habitat Conservation Fund		160		91
Nova Scotia Primary Forest Products Marketing Board		112		167
Off-Highway Vehicle Infrastructure Fund		1,745		1,151
Species-at-risk Conservation Fund		—		3
		100,995		102,569
Public Service		136,824		138,032
Seniors
Department of Seniors		1,748		1,866
Service Nova Scotia and Municipal Relations
Department of Service Nova Scotia and Municipal Relations		269,248		259,643
Nova Scotia Coordinate Referencing System Trust Fund		—		30
Nova Scotia Municipal Finance Corporation		854		693
		270,102		260,366
Transportation and Infrastructure Renewal
Department of Transportation and Infrastructure Renewal		416,515		407,159
Harbourside Commercial Park Inc.		673		787
Nova Scotia Lands Inc.		559		4,258
		417,747		412,204
Restructuring Costs		80,063		36,935
Restructuring of Nova Scotia Agricultural College		36,996		—
Pension Valuation Adjustment		107,370		40,041
Tax Credits and Rebates		127,145		116,510

99

Schedule 2

Expenses (continued)

For the fiscal year ended March 31, 2013

($ thousands)

	2013			2012
				(as restated)
Debt Servicing Costs
General Revenue Fund		871,273			815,157
Annapolis Valley District Health Authority		808			804
Annapolis Valley Regional School Board		862			967
Cape Breton District Health Authority		2,078			1,996
Cape Breton Victoria Regional School Board		992			1,113
Capital District Health Authority		8,148			7,965
Chignecto-Central Regional School Board		1,445			1,618
Colchester East Hants Health Authority		483			476
Conseil scolaire acadien provincial		354			397
Cumberland Health Authority		379			386
Guysborough Antigonish Strait Health Authority		509			512
Halifax Regional School Board		4,153			4,348
Izaak Walton Killam Health Centre		1,928			1,941
Nova Scotia Community College		1,685			1,552
Nova Scotia Housing Development Corporation		19,841			16,732
Nova Scotia Innovation Corporation		82			111
Nova Scotia Legal Aid Commission		384			385
Nova Scotia Municipal Finance Corporation		152			43
Nova Scotia Strategic Opportunities Fund Incorporated		3,168			2,684
Nova Scotia Utility and Review Board		39			39
Pictou County Health Authority		514			520
Renova Scotia Bioenergy Inc.		(800	)		—
Sherbrooke Restoration Commission		12			17
South Shore District Health Authority		584			586
South Shore Regional School Board		574			516
South West Nova District Health Authority		760			765
Strait Regional School Board		516			676
Trade Centre Limited		74			173
Tri-County Regional School Board		464			502
Waterfront Development Corporation Limited		23			15
Waycobah School Assistance Fund		—			2
		921,484			862,998
Total Expenses		10,404,356			10,019,278

100

Schedule 3

Loans and Investments

As at March 31, 2013

($ thousands)

	Loans and Investments		Provisions		Net 2013		Net 2012
Loans
Agriculture and Rural Credit Act		170,757		13,049		157,708		152,329
Educational & Services Products (NS) Ltd		15		—		15		15
Education - Student Loans Direct Lending		199,238		84,997		114,241		113,752
Fisheries Development Act		108,998		2,483		106,515		109,174
Halifax-Dartmouth Bridge Commission		2,000		—		2,000		2,000
Miscellaneous		—		—		—		709
Nova Scotia Business Inc.		60,185		23,205		36,980		78,672
Nova Scotia Housing Development Corporation		589,470		3,955		585,515		575,646
Nova Scotia Innovation Corporation		4,488		2,638		1,850		1,429
Nova Scotia Jobs Fund Act		277,765		102,681		175,084		154,368
Nova Scotia Market Development Initiative Fund		4,480		—		4,480		5,600
Nova Scotia Municipal Finance Corporation		764,182		—		764,182		725,038
Nova Scotia Strategic Opportunities Fund Incorporated		74,991		—		74,991		74,606
Perennia Food and Agriculture Incorporated		113		—		113		—
Resource Recovery Fund Board Inc.		238		—		238		89
Venture Corporations Act		809		809		—		—
Waterfront Development Corporation Limited		—		—		—		199
Total Loans		2,257,729		233,817		2,023,912		1,993,626
Investments
Art Gallery of Nova Scotia		2,247		—		2,247		2,091
Capital District Health Authority		59,373		—		59,373		60,683
Gambling Awareness Foundation of Nova Scotia		3,444		—		3,444		3,304
Nova Scotia Business Inc.		48,195		11,395		36,800		34,537
Nova Scotia Community College		3,200		—		3,200		3,020
Nova Scotia Housing Development Corporation		—		—		—		2,435
Nova Scotia Innovation Corporation		23,466		8,528		14,938		13,819
Nova Scotia Jobs Fund Act		31,671		14,071		17,600		22,400
Nova Scotia School Insurance Program		8,711		—		8,711		8,588
Perennia Food and Agriculture Incorporated		719		—		719		934
Public Archives of Nova Scotia		1,015		—		1,015		1,002
Total Investments		182,041		33,994		148,047		152,813

The provisions listed above include $6,275 (2012 - $5,275) for possible guarantee payouts from the Nova Scotia Jobs Fund Act. Also included in the provisions is $9,988 (2012 - $10,479) for the Debt Reduction Assistance Program of the Education Student Loans of which $3,742 (2012 - $3,950) relates to the student loans guaranteed by the Province.

101

Schedule 4

Unmatured Debt

As at March 31, 2013

($ thousands)

	Gross Unmatured Debt		Sinking Funds and Defeasance Assets		Net Unmatured Debt 2013		Net Unmatured Debt 2012
General Revenue Fund		15,349,979		2,694,183		12,655,796		12,444,153
Nova Scotia Housing Development Corporation		202,119		—		202,119		215,456
Nova Scotia Municipal Finance Corporation		8,749		—		8,749		3,431
Nova Scotia Power Finance Corporation		854,680		854,680		—		—
Waterfront Development Corporation Limited		1,680		—		1,680		1,245
Other		901		—		901		1,132
Total Unmatured Debt		16,418,108		3,548,863		12,869,245		12,665,417

Gross Unmatured Debt

All debt is presented in Canadian dollar equivalents and after giving effect to currency swap contracts itemized in Note 13.

Gross Unmatured Debt consists of the outstanding current and long-term debt of the Province’s governmental units, as well as the unmatured debt of the General Revenue Fund. Current and long-term debt of the government business enterprises is reflected in the Province’s Investment in Government Business Enterprises and further detailed in Schedule 6.

102

Schedule 4

Unmatured Debt (continued)

As at March 31, 2013

($ thousands)

Sinking Fund Assets

At March 31, 2013, the General Revenue Fund held Sinking Funds and Public Debt Management Funds of $2,694.2 million (2012 - $2,539.0 million). These funds were comprised of $2,536.4 million in Sinking Funds and $157.8 million in Public Debt Management Funds. The total market value of both funds was $2,738.5 million at year-end. During the year, contributions were $44.1 million, total earnings were $111.1 million and there were no redemptions.

Sinking fund assets are recorded at cost, which include premiums and discounts associated with the purchase of these investments. These premiums and discounts are amortized on a straight-line basis over the term of the related investment. The unamortized portion of the premiums and discounts is included as part of the value of the sinking funds.

Sinking fund assets consist primarily of debentures of the Provinces and Government of Canada with fixed interest rates ranging from 2.75% to 10.00%. Sinking fund payments normally commence on the first anniversary date of the issue of the debenture and are designed to retire the debt over the relevant period to maturity. At year-end, the Province held $675.9 million (2012 - $676.9 million) carrying value worth of its own debentures in Sinking Funds and Public Debt Management Funds as active investments.

As per the Nova Scotia Power Corporation Privatization Agreement, Nova Scotia Power Finance Corporation provides for defeasance of its debt. The portfolio of defeasance assets consists of Nova Scotia Power Corporation, other Provincial Governments and utilities, Federal US bonds, coupons or residuals. This debt is shown net of defeasance assets on the Statement of Financial Position.

Projected net principal repayments, capital lease payments, and sinking fund requirements for the next five years and thereafter are as follows:

($ thousands)
	Net Principal Repayments		Capital Lease Payments		Sinking Fund Payments		Total Payments
2014		1,018,176		26,068		39,385		1,083,629
2015		570,030		28,379		39,385		637,794
2016		992,942		30,318		39,385		1,062,645
2017		871,886		32,492		39,385		943,763
2018		213,511		34,748		39,385		287,644
2019 & thereafter		8,656,168		97,985		99,617		8,853,770
		12,322,713		249,990		296,542		12,869,245

Net principal repayments are comprised of the principal amounts due on loans and debentures less available designated sinking funds to retire the debentures.

In addition, the Province has approximately $814.8 million (2012 - $793.2 million) in unrestricted sinking funds that can be used towards the retirement of any unmatured debt. The use of these funds is evaluated each year based on a detailed analysis of cash requirements and market conditions.

103

Schedule 5

Gross Unmatured Debt

As at March 31, 2013

($ thousands)

	Foreign Exchange Rate		CDN $ Amount		Maturity Dates	Interest Rates
Debentures
General Revenue Fund
General Revenue Fund (CDN$)				15,084,933	2013 to 2062	3.50% to 11.75%
General Revenue Fund (US$)		0.9846		—	2013 to 2022	2.38% to 9.50%
General Revenue Fund (UK£)		0.6486		—	2019	11.75%
Nova Scotia Municipal Finance Corporation				8,749	2013 to 2032	1.00% to 2.62%
Nova Scotia Power Finance Corporation (CDN$)				550,000	2014 to 2031	10.25% to 11.25%
Nova Scotia Power Finance Corporation (US$)		0.9846		304,680	2021	9.40%
Total Debentures				15,948,362
Loans
General Revenue Fund - Other Debt				15,951	2014 to 2017	1.45% to 1.89%
Nova Scotia Housing Development Corporation				202,119	2013 to 2034	1.53% to 10.50%
Nova Scotia Innovation Corporation				6	2013	—
Waterfront Development Corporation Limited				1,680	Demand loan	Prime less 1.00%
Total Loans				219,756
Capital Leases
General Revenue Fund				249,095	2013 to 2027	6.04% to 7.25%
Other				895	2013 to 2017	6.19% to 6.29%
Total Capital Leases				249,990
Gross Unmatured Debt				16,418,108

Call, Redemption and Other Features

General Revenue Fund

Canadian debentures include $1,079.4 million in CPP debentures, which are redeemable in whole or in part before maturity, on six months notice, at the option of the Minister of Finance of Canada.

The interest rates shown for the Canadian and US debentures reflect the fixed interest rates only. There are debentures that have floating interest rates. Floating interest rates are adjusted on a quarterly basis.

Housing Development Corporation

Mortgages and notes payable are secured by investments in social housing.

104

Schedule 6

Government Business Enterprises

As at March 31, 2013

($ thousands)

	2013													2012
	Halifax- Dartmouth Bridge Commission		Highway 104 Western Alignment Corporation		Nova Scotia Liquor Corporation		Nova Scotia Provincial Lotteries and Casino Corporation			QEII Health Sciences Centre Auxiliary		Total		Total
														(as restated)
Cash		10,025		659		15,887		16,645			1,254		44,470		30,672
Accounts Receivable		339		954		1,376		1,024			1,534		5,227		5,740
Inventory		—		4		44,764		2,874			313		47,955		43,200
Investments		14,017		38,902		—		1			—		52,920		50,194
Tangible Capital Assets		92,259		40,003		44,028		99,587			1,563		277,440		248,309
Other Assets		225		477		5,805		13,744			3		20,254		18,357
Total Assets		116,865		80,999		111,860		133,875			4,667		448,266		396,472
Accounts Payable		3,952		1,685		42,314		69,056			4,343		121,350		110,506
Unmatured Debt		45,000		50,369		41		48,943			23		144,376		121,825
Other Liabilities		5,221		8,847		29,674		26,347			294		70,383		62,693
Total Liabilities		54,173		60,901		72,029		144,346			4,660		336,109		295,024
Equity		62,692		20,098		39,831		(10,471	)		7		112,157		101,448
Total Liabilities and Equity		116,865		80,999		111,860		133,875			4,667		448,266		396,472
Total Revenue		32,762		22,416		598,389		409,978			8,518		1,072,063		1,074,269
Debt Servicing		2,444		8,811		1,201		943			—		13,399		13,746
Other Expenses		18,678		11,649		370,802		297,875			7,563		706,567		691,153
Total Expenses		21,122		20,460		372,003		298,818			7,563		719,966		704,899
Net Income		11,640		1,956		226,386		111,160			955		352,097		369,370

105

Schedule 6

Government Business Enterprises (continued)

As at March 31, 2013

($ thousands)

Halifax-Dartmouth Bridge Commission

The Halifax-Dartmouth Bridge Commission (HDBC), operating as Halifax Harbour Bridges, was created in 1950 by a special statute of the Province of Nova Scotia (now the Halifax-Dartmouth Bridge Commission Act). The purpose of HDBC is to construct, maintain, and operate bridges and their necessary approaches across the Halifax Harbour, between the communities of Halifax and Dartmouth, and across the North West Arm.

HDBC currently operates and maintains two toll bridges across the Halifax Harbour; the Angus L. Macdonald Bridge and the A. Murray MacKay Bridge. Bridge tolls are regulated by the Nova Scotia Utility and Review Board, a provincially controlled public sector entity.

Long-Term Loan Agreement

On July 25, 2007, HDBC entered into a long-term loan agreement with the Province for $60.0 million with a final maturity date of December 4, 2019. This agreement requires annual principal repayments of $3.0 million plus interest, with a final principal repayment of $27.0 million along with all accrued and unpaid interest thereon due on the final maturity date. At March 31, 2013, HDBC had $42.0 million (2012 - $45.0 million) of long-term debt and $3.0 million (2012 - $3.0 million) of debt maturing within one year.

Interest is payable semi-annually on July 4 and December 4 of each year. The average interest rate over the loan is 5.13%. For the period ending March 31, 2013, interest expense on the long term debt was $2.4 million (2012 - $2.6 million), of which $742.0 thousand (2012 - $790.0 thousand) was payable at year-end.

This agreement also requires that two reserve funds, the Operating, Maintenance & Administrative Fund (OM Fund) and the Debt Service Fund, be maintained. Effective June 4, 2008, a Capital Fund was also established.

Line of Credit Agreement

On June 30, 2008, HDBC entered into an agreement with the Province for a $60.0 million revolving, unsecured line of credit. At March 31, 2013, HDBC had one advance totaling $2.0 million (2012 - $2.0 million) against the line of credit and accrued interest for the year in the amount of $27.0 thousand (2012 - $32.0 thousand), of which $8.0 thousand (2012 - $2.0 thousand) was payable at year-end.

106

Schedule 6

Government Business Enterprises

(continued) As at March 31, 2013

($ thousands)

Highway 104 Western Alignment Corporation

The Highway 104 Western Alignment Corporation (H104) was established for the purpose of financing, designing, constructing, operating, and maintaining a 45 km stretch of highway (referred to as the Cobequid Pass) between Masstown and Thomson Station in the counties of Colchester and Cumberland, Nova Scotia.

Related Party Transactions

Included in the financial statements of H104 are transactions with various Crown corporations, ministries, agencies, boards and commissions related to H104 by virtue of common control by the Province. All other transactions with parties under the control of the government are routine operating transactions carried out as part of H104’s normal day-to-day operations. These routine transactions are individually insignificant and include maintenance services, enforcement costs, and purchases of inventory and property, plant and equipment. Collectively the transactions increase enforcement costs by $60.0 thousand (2012 - $60.0 thousand), maintenance services by $1.2 million (2012 - $1.2 million), inventory by $25.8 thousand (2012 - $15.1 thousand), and property, plant and equipment by $94.6 thousand (2012 - $35.0 thousand).

At March 31, 2013, H104 had a receivable from the Province in the amount of $638.4 thousand (2012 - $860.7 thousand). Government grants are recognized initially as deferred income at fair value when there is reasonable assurance that they will be received and H104 will comply with the conditions associated with them.

Omnibus Agreement

The Omnibus Agreement, dated April 1, 1996, is an agreement between H104, the Contractor, the Operator, and the Province to design, finance, construct, operate and maintain the Highway 104 Western Alignment. Under this agreement, the Province of Nova Scotia retains ownership of the highway. However, H104 is granted the right to operate the highway and collect tolls for a 30-year period, after which time the right will revert to the Province.

Restricted accounts for capital reserve, major maintenance reserve, and debt service reserve have been established in accordance with the Omnibus Agreement. Restricted assets totaling $38.9 million (2012 - $38.0 million) are comprised of investments that are recorded at fair value and include accrued interest of $91.4 thousand (2012—$74.5 thousand), have a weighted average term of 6.77 (2012 - 8.91) months to maturity, and a weighted average interest rate of 1.20 per cent (2012 - 1.18 per cent).

Annual Roadway Maintenance Agreement

The annual roadway maintenance agreement is a 30-year agreement between H104 and the Department of Transportation and Infrastructure Renewal for the provision of annual roadway maintenance services and is renewable in five year increments.

Long-Term Debt

Long-term debt is comprised of senior toll revenue bonds bearing interest of 10.25% and maturing March 31, 2026. The bonds are payable in equal installments of interest and principal. At year-end, H104 had $48.4 million (2012 - $55.2 million) of long-term debt and $2.0 million (2012 - $1.9 million) of debt maturing within one year. Interest expense on the long term debt was $8.8 million (2012 - $9.0 million) for the year. Minimum principal repayments for the next five years are as follows: 2014 - $2.0 million, 2015 - $2.2 million, 2016 - $2.4 million, 2017 - $2.7 million, and 2018 - $3.0 million. As security, H104 has provided an assignment of all the present and future property and assets, including rights to operate the facility, and a security interest in the Debt Service Reserve Account and the Major Maintenance Reserve Account.

107

Schedule 6

Government Business Enterprises (continued)

As at March 31, 2013

($ thousands)

Nova Scotia Liquor Corporation

The Nova Scotia Liquor Corporation (NSLC) derives its mandate from the Liquor Control Act, Chapter 260 of the Revised Statutes of Nova Scotia, 1989. NSLC was created June 1, 2001, by Chapter 4 of the Government Restructuring (2001) Act, via continuance of the Nova Scotia Liquor Commission as a body corporate.

NSLC operates retail sales locations across the province and has a fiscal year-end of March 31. Remittances to the Department of Finance totaled $224.5 million in 2013 (2012 - $221.5 million).

Obligations under Finance Lease

At March 31, 2013, NSLC had long-term obligations under finance lease of $21.0 thousand (2012 - $41.0 thousand) and current obligations under finance lease of $20.0 thousand (2012 - $19.0 thousand). Interest expense on the finance lease obligations was $2.0 thousand (2012 - $68.0 thousand) for the year.

Equity

Upon conversion to International Financial Reporting Standards (IFRS) in the previous year, NSLC reclassified its payable to the Minister of Finance from a liability to equity. At March 31, 2013, NSLC’s equity was $39.8 million (2012 - $40.1 million).

Nova Scotia Provincial Lotteries and Casino Corporation

The Nova Scotia Gaming Corporation (NSGC) was incorporated on February 15, 1995 by Chapter 4 of the Acts of 1994-95, the Gaming Control Act. The Gaming Control Act was amended on November 13, 2012, whereby the name of NSGC was changed to Nova Scotia Provincial Lotteries and Casino Corporation (NSPLCC). The principal activities of NSPLCC are to develop, undertake, organize, conduct, and manage casinos and other lottery business on behalf of the Province of Nova Scotia. Revenues of NSPLCC are derived from two casinos, located in Halifax and Sydney, as well as ticket and video lottery sales.

Payable to the Province

At March 31, 2013, NSPLCC had a payable to the Province in the amount of $54.9 million (2012 - $55.6 million).

Special Payments to Government Departments

NSPLCC is obligated to make direct payments annually to three provincial government departments: the Department of Communities, Culture and Heritage (in support of the Cultural Federation of Nova Scotia), the Department of Agriculture (in support of the Exhibition Association of Nova Scotia), and the Department of Health and Wellness (in support of Sport Nova Scotia). These payments totaled $0.2 million (2012 - $0.2 million).

Additionally, as part of its Gaming Strategy, the Province approved a contribution of $3.0 million to the Department of Health and Wellness in 2013 (2012 - $3.0 million) to fund problem gambling treatment.

108

Schedule 6

Government Business Enterprises

(continued) As at March 31, 2013

($ thousands)

Nova Scotia Provincial Lotteries and Casino Corporation (continued)

Gambling Awareness Foundation Contribution

Video Lottery (VL) retailers in Nova Scotia have agreed, under the terms of their agreements with Atlantic Lottery Corporation Inc., to contribute 1.0 per cent of their VL commission to the Gambling Awareness Foundation of Nova Scotia. NSPLCC has agreed to contribute an amount equal to all contributions made by the VL retailers. At March 31, 2013, NSPLCC had a payable to the Gambling Awareness Foundation in the amount of $38.0 thousand (2012 - $45.0 thousand).

Harness Racing Fund Contribution

NSPLCC annually contributes to the Nova Scotia Harness Racing Fund, pursuant to the Nova Scotia Harness Racing Fund Regulations. These contributions go towards supporting the harness racing industry in Nova Scotia. In 2013, the contribution was $1.0 million (2012 - $1.0 million). The 2014 approved budget for this item is $1.0 million.

Due to Atlantic Gaming Equipment

At March 31, 2013, the amount due to Atlantic Gaming Equipment Limited was $48.9 million (2012 - $16.5 million). This liability represents a portion of Atlantic Lottery Corporation Inc.’s (ALC) debt used in the acquisition of property, plant and equipment operated on behalf of NSPLCC. All amounts are payable by ALC and are due on or before August 2016. The debt is based on variable interest rates ranging from 1.34 to 2.58 per cent. The aggregate maturity of long-term debt for the years subsequent to March 31, 2013 is approximately as follows: 2014 - $17.2 million, 2015 - $9.9 million; 2016 - $7.8 million; and 2017 - $4.7 million. Included in interest expense is $0.8 million (2012 - $0.7 million) relating to long-term debt.

Queen Elizabeth II Health Sciences Centre Auxiliary

The Queen Elizabeth II Health Sciences Centre Auxiliary, operating as Partners for Care, is a volunteer based non-profit, charitable organization. The primary objective of Partners for Care is to generate revenue for Capital District Health Authority (CDHA) through parking and retail services, rental activities, and other special projects that generally take place within the hospital premises. Partners for Care was identified and consolidated as a government business enterprise by CDHA.

Receivable from Capital District Health Authority

At March 31, 2013, Partners for Care had a receivable from CDHA in the amount of $1.3 million (2012 - payable to CDHA in the amount of $2.7 million).

Capital Lease

At March 31, 2013, Partners for Care had a current obligation under capital lease of $23.0 thousand (2012 - $62.0 thousand) and long-term obligation under capital lease of $nil (2012 - $23.0 thousand).

Transfers to Capital District Health Authority

Transfers to CDHA totaled $nil in 2013 (2012 - $5.1 million).

109

Schedule 7

Tangible Capital Assets

As at March 31, 2013

($ thousands)

	2013																		2012
	Land			Buildings and Land Improvements			Machinery, Computers and Equipment			Vehicles and Ferries			Roads, Bridges and Highways			Total			Total
Costs
Opening Costs		800,385			4,503,880			1,365,571			137,826			2,147,183			8,954,845			8,382,500
Transfers		(10	)		11,343			(11,380	)		47			—			—			(1,341	)
Additions		152,685			179,093			103,696			15,911			239,477			690,862			611,179
Disposals		(2,228	)		(81,657	)		(35,060	)		(4,145	)		—			(123,090	)		(37,493	)
Closing Costs		950,832			4,612,659			1,422,827			149,639			2,386,660			9,522,617			8,954,845
Accumulated Amortization
Opening Accumulated Amortization		—			(1,849,889	)		(988,802	)		(82,815	)		(911,124	)		(3,832,630	)		(3,505,576	)
Transfers		—			(6,684	)		6,684			—			—			—			(189	)
Disposals		—			54,864			34,284			3,945			—			93,093			35,577
Amortization Expense		—			(137,089	)		(88,876	)		(12,605	)		(144,328	)		(382,898	)		(362,442	)
Closing Accumulated Amortization		—			(1,938,798	)		(1,036,710	)		(91,475	)		(1,055,452	)		(4,122,435	)		(3,832,630	)
Net Book Value		950,832			2,673,861			386,117			58,164			1,331,208			5,400,182			5,122,215
Opening Balance		800,385			2,653,991			376,769			55,011			1,236,059			5,122,215			4,876,924
Closing Balance		950,832			2,673,861			386,117			58,164			1,331,208			5,400,182			5,122,215
Increase in Net Book Value		150,447			19,870			9,348			3,153			95,149			277,967			245,291

110

Schedule 7

Tangible Capital Assets

(continued) As at March 31, 2013

($ thousands)

Amortization is calculated on a declining balance basis for most assets of the General Revenue Fund. The amortization percentages of the more common tangible capital assets are as follows:

Buildings and Land Improvements	5-30 per cent
Machinery, Computers and Equipment	15-50 per cent
Vehicles and Ferries	15-35 per cent
Roads, Bridges and Highways	5-15 per cent

Capital leases are amortized on a straight-line basis over the length of each lease (3-25 years).

Amortization is generally calculated on a straight-line basis for assets of the governmental units. The estimated useful lives of the more common tangible capital assets are as follows:

Buildings (including Leasehold Improvements) and Land Improvements	5-50 years
Machinery, Computers and Equipment	2-50 years
Vehicles and Ferries	3-7 years

Capital leases are amortized on a straight-line basis, generally 5-45 years.

Social Housing assets are included in Buildings and Land Improvements and relate to the Nova Scotia Housing Development Corporation. These assets are amortized using the straight-line method. The net book value of these assets is $339,563 (2012 - $346,628).

Included in the closing costs of the various classes as at March 31, 2013, are costs for assets under construction, which have not yet been amortized. These costs relate to buildings and land improvements of $178,811, machinery, computers and equipment of $30,813, vehicles and ferries of $17,643, and roads, bridges and highways of $55,777.

Capital leases are included in the various classes as at March 31, 2013 as follows: buildings and land improvements - cost of $452,560, accumulated amortization of $284,525; machinery, computers and equipment - cost of $41,453, accumulated amortization of $39,700; and vehicles and ferries - cost of $17,514, accumulated amortization of $11,103.

111

Schedule 8

Direct Guarantees

As at March 31, 2013

($ thousands)

	Authorized 2013		Utilized 2013			Utilized 2012
						(as restated)
Bank Loans
Department of Education - Student Loan Program		9,977		9,977			15,449
Nova Scotia Business Inc.		1,050		300			300
Nova Scotia Jobs Fund Act		64,550		45,749			39,931
Total Bank Loan Guarantees		75,577		56,026			55,680
Mortgages
Housing Development Corporation Act		8,774		8,774			9,143
Housing Development Corporation Act - CMHC Indemnities		78,457		78,457			87,213
Provincial Finance Act		8		8			18
Total Mortgage Guarantees		87,239		87,239			96,374
Total Direct Guarantees		162,816		143,265			152,054
Less: Provision for Guarantee Payout
Department of Education - Student Loan Program				(1,776	)		(3,191	)
Housing Development Corporation Act				(11,981	)		(10,385	)
Nova Scotia Business Inc.				(300	)		(300	)
Nova Scotia Jobs Fund Act				(6,275	)		(5,275	)
				(20,332	)		(19,151	)
Less: Provision for Student Debt Reduction Program
Department of Education - Student Loan Program				(3,742	)		(3,950	)
Net Direct Guarantees				119,191			128,953
(Not provided for in these Consolidated Financial Statements)

112

Schedule 9

Segment Reporting

As at March 31, 2013

Segment reporting is designed to assist users in identifying the resources allocated to support the major activities of government and to better understand the performance of segments.

The following schedules provide segment information for the 2013 and 2012 fiscal years. Segment results represent the activities of that segment and include any inter-segment transactions. Inter-segment eliminations are shown in a separate column. The Province has determined that the following segments represent the major activities of government.

Health

The provision of such services and institutions to the public that will lead to a higher state of personal health.

Education

The provision of all aspects and phases of training to equip people with necessary skills to pursue productive lives. This includes: Primary to Grade 12, post-secondary and advanced education, as well as labour support.

Infrastructure & Public Works

The provision of the means to facilitate the effective and efficient movement of persons and property. This includes the net results of the Halifax-Dartmouth Bridge Commission and the Highway 104 Western Alignment Corporation.

Social Services

The provision of services and assistance to economically and/or socially disadvantaged persons requiring aid.

Natural Resources & Economic Development

The provision for the maintenance and upkeep, efficient extraction, processing, and utilization of the natural attributes of the province with the aim of creating employment and contributing to the material well-being of residents.

Other Government

Revenues and expenses that relate to activities that are not identified as a separate segment or cannot be directly allocated on a reasonable basis to individual segments because they support a wide range of service delivery activities. This includes certain items from the General Revenue Fund such as general tax revenues, sinking fund earnings, debt servicing costs, and the pension valuation adjustment.

113

Schedule 9

Segment Reporting

For the fiscal year ended March 31, 2013

($ thousands)

													Infrastructure &
	Health						Education						Public Works						Social Services
	2013			2012			2013			2012			2013			2012			2013			2012
				(as restated)						(as restated)						(as restated)						(as restated)
Revenue
Provincial Sources
Tax Revenue		206,287			208,631			—			—			243,446			250,186			—			—
Other Provincial Revenue		401,594			367,240			433,991			410,457			14,303			17,641			107,725			32,730
Net Income from GBEs		955			(721	)		—			—			13,596			13,415			—			—
Investment Income		2,747			2,311			5,087			4,595			—			—			27,024			30,209
Federal Sources		855,136			828,896			268,099			271,252			27,574			30,140			267,508			350,281
Total Revenue		1,466,719			1,406,357			707,177			686,304			298,919			311,382			402,257			413,220
Expenses
Grants and Subsidies		1,658,973			1,574,702			641,547			644,440			459			15,775			810,472			806,920
Salaries and Employee Benefits		1,633,886			1,591,075			1,150,897			1,171,954			123,882			122,188			155,815			147,793
Operating Goods and Services		714,428			688,051			325,341			336,805			107,026			93,137			82,215			104,497
Professional Services		96,270			83,159			28,214			27,778			18,166			20,251			3,432			1,222
Amortization		98,214			96,802			76,290			73,938			169,487			157,221			19,245			18,176
Debt Servicing Costs		17,348			17,106			11,044			11,688			—			—			45,571			43,683
Other		1			2			—			—			—			—			—			—
Total Expenses		4,219,120			4,050,897			2,233,333			2,266,603			419,020			408,572			1,116,750			1,122,291
Segment Result		(2,752,401	)		(2,644,540	)		(1,526,156	)		(1,580,299	)		(120,101	)		(97,190	)		(714,493	)		(709,071	)

114

Schedule 9

Segment Reporting

For the fiscal year ended March 31, 2013

($ thousands)

	Natural Resources &					Other				Inter-Segment
	Economic Development					Government				Eliminations						Total
	2013			2012		2013		2012		2013			2012			2013			2012
				(as restated)				(as restated)											(as restated)
Revenue
Provincial Sources
Tax Revenue		363			415		4,451,698		4,192,826		—			—			4,901,794			4,652,058
Other Provincial Revenue		142,865			266,715		424,011		382,412		(133,855	)		(113,092	)		1,390,634			1,364,103
Net Income from GBEs		—			—		337,546		356,676		—			—			352,097			369,370
Investment Income		9,818			11,006		184,733		186,440		(34,834	)		(39,097	)		194,575			195,464
Federal Sources		167,617			207,251		1,676,831		1,491,474		—			—			3,262,765			3,179,294
Total Revenue		320,663			485,387		7,074,819		6,609,828		(168,689	)		(152,189	)		10,101,865			9,760,289
Expenses
Grants and Subsidies		200,353			151,373		399,641		378,258		963			(5,651	)		3,712,408			3,565,817
Salaries and Employee Benefits		140,122			149,917		446,979		366,295		(102,711	)		(81,103	)		3,548,870			3,468,119
Operating Goods and Services		136,432			129,184		116,624		104,834		(8,703	)		(4,424	)		1,473,363			1,452,084
Professional Services		21,426			20,335		166,126		153,914		(705	)		(655	)		332,929			306,004
Amortization		5,721			5,904		13,941		10,401		—		��	—			382,898			362,442
Debt Servicing Costs		6,718			8,788		898,035		840,660		(57,232	)		(58,927	)		921,484			862,998
Other		32,704			2,792		—		449		(301	)		(1,429	)		32,404			1,814
Total Expenses		543,476			468,293		2,041,346		1,854,811		(168,689	)		(152,189	)		10,404,356			10,019,278
Segment Result		(222,813	)		17,094		5,033,473		4,755,017		—			—			(302,491	)		(258,989	)

115

Schedule 10

Government Reporting Entity

As at March 31, 2013

The government reporting entity is comprised of the province’s departments and public service units (General Revenue Fund) as well as the following governmental units, government business enterprises, and a proportionate share of government partnership arrangements:

Governmental Units

(Consolidation Method)

Acadia Coal Company Limited Fund	Nova Scotia Harness Racing Fund
Annapolis Valley District Health Authority	Nova Scotia Health Research Foundation
Annapolis Valley Regional School Board	Nova Scotia Housing Development Corporation
Art Gallery of Nova Scotia	Cape Breton Island Housing Authority
Arts Nova Scotia	Cobequid Housing Authority
Bioscience Enterprise Centre Incorporated (inactive)	Eastern Mainland Housing Authority
Cape Breton District Health Authority	Metropolitan Regional Housing Authority
Cape Breton Victoria Regional School Board	Western Regional Housing Authority
Capital District Health Authority	Nova Scotia Innovation Corporation
Check Inns Limited (inactive)	1402998 Nova Scotia Limited
Chignecto-Central Regional School Board	3087532 Nova Scotia Limited
Coal Research Agreement Fund	Nova Scotia Jobs Fund
Colchester East Hants Health Authority	Nova Scotia Lands Inc.
Conseil scolaire acadien provincial	Nova Scotia Legal Aid Commission
CorFor Capital Repairs and Replacements Fund	Nova Scotia Market Development Initiative Fund
Creative Nova Scotia Leadership Council	Nova Scotia Municipal Finance Corporation
Crown Land Mine Remediation Fund	Nova Scotia Nominee Program Fund
Crown Land Silviculture Fund	Nova Scotia Pension Agency
Cumberland Health Authority	Nova Scotia Power Finance Corporation
Democracy 250 (inactive)	Nova Scotia Primary Forest Products Marketing Board
Film and Creative Industries Nova Scotia	Nova Scotia School Boards Association (1)
Gambling Awareness Foundation of Nova Scotia	Nova Scotia School Insurance Exchange (2)
Gaming Addiction Treatment Trust Fund	Nova Scotia School Insurance Program Association (2)
Guysborough Antigonish Strait Health Authority	Nova Scotia Sportfish Habitat Fund
Habitat Conservation Fund	Nova Scotia Strategic Opportunities Fund Incorporated
Halifax Regional School Board	Nova Scotia Tourism Agency
Harbourside Commercial Park Inc.	Nova Scotia Utility and Review Board
Sydney Utilities Limited	Off-Highway Vehicle Infrastructure Fund
Izaak Walton Killam Health Centre	P3 Schools Capital and Technology Refresh Fund (3)
Law Reform Commission	Pengrowth Nova Scotia Energy Scholarship Fund
Muggah Creek Remediation Fund	Perennia Food and Agriculture Incorporated
Nova Scotia Arts Council (inactive)	Pictou County Health Authority
Nova Scotia Blueberry Institute Fund	Provincial Drug Distribution Program
Nova Scotia Business Inc.	Public Archives of Nova Scotia
Nova Scotia Community College	Public Debt Management Fund
Nova Scotia Community College Foundation	Renova Scotia Bioenergy Inc.
Nova Scotia Coordinate Referencing System Trust Fund	Resource Recovery Fund Board Inc.
Nova Scotia Crop and Livestock Insurance Commission	Rockingham Terminal Incorporated (inactive)
Nova Scotia E911 Cost Recovery Fund	Schooner Bluenose Foundation
Nova Scotia Environmental Trust	Scotia Learning Technology Refresh Fund
Nova Scotia Farm Loan Board	Sherbrooke Restoration Commission
Nova Scotia Fisheries and Aquaculture Loan Board	South Shore District Health Authority
Nova Scotia Government Acadian Bursary Program Fund	South Shore Regional School Board

116

Schedule 10

Government Reporting Entity (continued)

As at March 31, 2013

Governmental Units (continued)	Government Business Enterprises
(Consolidation Method)	(Modified Equity Method)
South West Nova District Health Authority	Halifax-Dartmouth Bridge Commission
Species-at-risk Conservation Fund	Highway 104 Western Alignment Corporation
Strait Regional School Board	Nova Scotia Liquor Corporation
Sustainable Forestry Fund	Nova Scotia Provincial Lotteries and Casino Corporation
Sydney Environmental Resources Limited	Atlantic Lottery Corporation (25% ownership)
(inactive) Sydney Steel Corporation	Interprovincial Lottery Corporation
Sydney Tar Ponds Agency	(10% ownership)
Sysco Decommissioning	Nova Scotia Gaming Equipment Limited
Fund Trade Centre Limited	Queen Elizabeth II Health Sciences Centre Auxiliary
Tri-County Regional School Board
Upper Clements Family Theme Park Limited
(inactive) Vive l’Acadie Community Fund	Government Partnership Arrangements
Waterfront Development Corporation Limited	(Proportionate Consolidation Method)
3104102 Nova Scotia Limited
Waycobah School Assistance Fund	Atlantic Provinces Special Education Authority
3052155 Nova Scotia Limited	(approximately 55% share)
	Canada-Nova Scotia Offshore Petroleum Board
	(50% share)
	Canadian Sports Centre Atlantic
	(approximately 14% share)
	Council of Atlantic Premiers
	(approximately 46% share)

(1) – Entity is a partnership controlled by the eight school boards.

(2) – Entity is a partnership controlled by the eight school boards and the Nova Scotia Community College.

(3) – This includes all refresh funds related to P3 schools.

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