financial statements statements 2008.pdf · an audit includes examining, on a test basis, evidence...

A s s U R A N C E S e n v r c E S

Financial Statements

Sisters of Charity of Ottawa Health Service Inc.March 3 1, 2008

E n x s r & Y o u N c L L P

AUDITORS'REPORT

To the Members of the Board of Directors of theSisters of Charity of Ottawa Health Service Inc.

We have audited the statement of financial position of the Sisters of Charity ofOttawa Health Service Inc. as at March 31,2008 and the statements of revenuesand expenses, changes in net assets and cash flows for the year then ended. Thesefinancial statements are the responsibility of the organization's management. Ourresponsibility is to express an opinion on these financial statements based on ouraudit.

We conducted our audit in accordance with Canadian generally accepted auditingstandards. Those standards require that we plan and perform an audit to obtainreasonable assurance whether these financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in these financial statements. An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects,the financial position of the Sisters of Charity of Ottawa Health Service Inc. asat March 31, 2008, and the results of its operations and its cash flows for the yearthen ended in accordance with Canadian generally accepted accounting principles.As required by the Ontario Corporations Act, we report that these principles havebeen applied, on a basis consistent with that of the preceding year, except for theimplementation of CICA 3855: Financial Instruments - Recognition andMeasurement and CICA 3861: Financial Instruments - Disclosure andPresentation.

/r-* rfu*t rt-fOttawa, Canada,May 16,2008.

Chartcrcd AccountantsLiccnsed Fublic Accounlants

-=Jl EnNsr *YouNc

Sisters of Chanity of Ottawa Health Service Inc.

STATEMEIdT OF FINANCIAL POSITION

As at March 3l

2008$

2007$

ASSETSCurrentCashCash restricted [note 6JAccounts receivable:

Patient serviceOther

Inventories

4,491,514730,450

4,649,6092,916,545

900,981

750,951709,594

6,460,1431,390,278

826,430496,298Prepaid expenses and other assets 513,599

Total current assets 14.192.698 10,633,694

Capital assets [note 4J 68,070,821 61,7t2,036Funds internally restricted for long-term obligations Irole 5/ 6,719,415 6,145,946

88,982,934 84,491,676

LIABILITIES AND NET ASSETSCurrent liabilitiesAccounts payable and accrued liabilities [note 6JDeferred revenue

18,552,235r.082.442

15,940,204r . r70 .57 6

Total current liabilities 19,634,677 l 7 , l 1 0 , 7 8 0Long-term liabilitiesPost-retirement benefits [note 10JDeferred contributions for capital assets [note 7]Post-employment benefits - vested sick leave fnote ]01

552,55048,718,812s,363.76s

474,95048,641,724s.030.473

Total long-term liabilities 54,635,127 54.147.147Commitments and contingencies [note l2J

Net assetsInvested in capital assetsIntemally restrictedUnrestricted

20,135,10920,000

(5,441,979)

19,710,835

(6.477.086\Total net assets 14.713.130 t3.233.749

88,982,934 84,491,67 6

See accompanying notes

On behalf of the Board:

Chair: Lisa Stilborn

gft- t ,

Sisters of Charify of Ottawa Health Service Inc.

STATEMENT OF REVENUESAND EXPENSES

Year ended March 31

2008$

2007$

REVENUESMinistry of Health and Long-Term CarePatient revenue from other payorsRoom differential and co-paymentRecoveries and miscellaneous revenue

89,274,5725,06E,E19

17,294,8327,635,060

86,160,3995,691,551

16,873,6536,236,929

622,6t8Amortization of deferred contributions - equipment 689,313119,962,596 1 1 5 , 5 8 5 , 1 5 0

EXPENSESSalaries and wagesBenefit contributions for employeesMedical staff remunerationSupplies and other expensesMedical and surgical suppliesDrugs and medical gasesBad debtsBanking charges and interest - short-termAmortization of major equipmentRental and lease of equipment

73,627,20517,704,713

772,95018,754,7261,947,2042,681,516

18,41611,783

1,860,628248,165

68,978,1 I I1 6 , 5 7 3 , 1 5 6

703,24618,563,727|,934,5622,521,800

9,363I 1 , 1 8 0

1,896,742135,023

Restructuring charges - 237,339117.627.306 ttt,564,249

Excess of revenues over expenses before thefollowing items

Amortization of deferred contributions - non shareable

2335,290

2,317,025

4,020,901

4,974,943Amortization leasehold improvements - non shareable (3,172,934) (6,790,816)

Excess of revenues over expenses 1,479,381 2,205,028


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Sisters of Charity of Ottawa Health Service Inc.

STATEMENT OF CHANGES IN NET ASSETS

Year ended March 3l

Invested in Internallycapitalassets restricted Unrestricted 2008 2007

$ $

Net assets, beginning of yearExcess (deficiency) of

revenues over expensesNet investment in capital assetsGrants and donations invested

in capital assetsFunds restricted by the Board

19,710,E35 (6,477,0E6)

3,506,605(5,392,347)

13,233,749 11,028,721

1,479J81 2,205,028(2,027,224)5,392,347

Q,940,E4912o,ooo (2o,ooo)

2,940,E49

Net assets, end of year 20,135,109 20,000 (5,441,979) t4,713,130 13,233,749


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STATEMENT OF CASH FLOWS

Year ended March 3l

2008$

2001$

OPERATING ACTIVITIESExcess ofrevenues over expensesAdd (deduct) items not affecting cash

Amortization of capital assetsAmortization of deferred contributions

1,479,381

5,033,562(3,006,338)

2,205,029

8,687,558(5 ,597,561)

Changes in non-cash operating items:Accounts receivableAccounts payable and accrued liabilitiesDeferred revenueInventoriesPrepaid expenses and other assetsPost-retirement benefi ts

3,506,605

284,2672,612,031

(88,134)(74,551)(17,301)

77,600

5,295,025

1,244,983(3 ,3 10 ,883)

236,603I 1 , 1 4 9(6,708)88,650

Post-employment benefits - vested sick leave 333'292 (331,500)

Cash provided by operating activities 6,633W 3221319

INVESTING ACTIVITIESChange in cash restrictedPurchase of capital assets

(20,856)(s,392,347)

301,672(4,039,247)

(3,421,189)Increase of funds internally restrictedfor lone-term oblieations (573'469\

Cash used in investins activities (5'986'672) (7,158,764)

FINANCING ACTryITIESCapital grants and donations received 3,083,426 4,659,538Interest on investments for capital purposes - 22,858

Cash provided bv financing activities 3'083'426 4,682,396

Net increase in cash 3,730,563 750,951Cash. beeinmns of year 750'951eT asn; end of year 4,481,514 750,951


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Sisters of Charity of Offawa Health Service Inc.

NOTES TO THE FINANCIAL STATEMENTS

March 31. 2008

I. NATURE OF ENTITY

The Sisters of Charity of Ottawa Health Service Inc. ["SCOHS"] was incorporated in April 1996 under theOntario Corporations Act and is a registered charity under the Income Tax Act. Inspired by its founder,Mother Elisabeth Bruydre, SCOHS is a Catholic health care organization committed to improving the qualityof life of its patients and residents. SCOHS is sponsored by the Catholic Health Corporation of Ontanowhose directors are Members of SCOHS. SCOHS consists of the SainrVincent Hospital and the ElisabethBruydre Health Centre, which constitute the SCO Hospital, the R6sidence Saint-Louis ["RSL"], and the VillaMarguerite ["Villa"].

As part of a corporate re-branding exercise, the SCOHS name will be changing to Bruydre Continuing CareInc. This name has been approved by the Minister of Government Services in March 2008. The launch forthe new name is expected in September 2008.

Bruyere Continuing Care Inc. will consist of Saint-Vincent Hospital, the Elisabeth Bruydre Hospital (formerlyElisabeth Bruydre Health Centre), which constitute the Bruydre Hospital, the R6sidence Saint-Louis and theElisabeth Bruydre Residence (formerly Villa Marguerite).

2. SIGNIFICANT ACCOUNTING POLICIES

These hnancial statements have been prepared in accordance with Canadian generally accepted accountingprinciples. The significant accounting policies are summarized as follows:

Revenue recognition

SCOHS follows the deferral method of accounting for contributions, which include donations and governmentgrants. Unrestricted contributions are recognized as revenue when received or receivable.

Under the Health Insurance Act (Ontario) and the regulations thereto, the SCO Hospital is funded primarilyby the Province of Ontario in accordance with funding arrangements established by the Ministry of Health andLong-Term Care ["the Minist4y'']. The Villa is funded through the Nursing Homes Act and the RSL under theCharitable Instihrtions Act. Operating grants are recorded as revenue in the period to which they relate.Grants approved but not received at the end of a period are accrued. Where a portion of a grant relates to afuture period, it is deferred and recognized in the subsequent period. These financial statements reflectmanagement's best estimates of funding arrangements with the Ministry.

Restricted investment income earned for unspent capital funds is recognized as an increase in deferredcontributions for capital assets. Unrestricted investment income is recognized as revenue when earned.

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FINANCIAL STATEMENTSNOTES TO THE

March 31. 2008

Net assets

Net assets invested in capital assets are comprised of the amount of capital assets purchased with unrestrictedfunds. The amount is determined as the recorded amount of capital assets and funds held for capital purposes,less deferred capital contributions for capital assets. Internally restricted net assets consist of funds set asideby the Board of Directors for future use. Unrestricted net assets represent the SCOHS net assets that may beused by SCOHS for any purpose it deems appropriate.

Inventories

Inventories are valued at the lower of weighted average cost and replacement value.

Capital assets and deferred contributions for capital assets

Capital assets are recorded at cost and amortized on a straight-line basis over their estimated useful life. Therates of amortization are as follows:

Leasehold improvementsMajor equipment

Over the remaining term of the leases: ending in20275 % - 2 0 %

Deferred contributions for capital assets are taken into revenue on the same basis as the amortization of therelated capital assets.

Post-employment and post-retirement benefits

The cost of post-employment and post-retirement benefits earned by employees is actuarially determinedusing the projected benefit method prorated on service and management's best estimate of discount rate,retirement ages of employees, expected health care costs and other actuarial factors. Plan obligations arediscounted using current market interest rates. SCOHS amortizes past service costs and unrecognized netaccumulated actuarial gains and losses, in excess of l0% ofthe projected benefit obligation, over the averageremaining service period of the active employee group cov€red by the plan.



March 31, 2008

Financial instruments

On April 1,2007, SCOHS adopted the CICA Section 3855, Financial instruments - Recognition andMeasurement and CICA Section 3861, Financial Instruments - Disclosure and Presentation. CICA 3855establishes the recognition and measurement criteria for financial assets, liabilities and derivatives. Generally,financial instruments and derivatives are required to be measured at fair value on initial recognition of theinstrument. Measurement in subsequent periods depends on whether the financial instrument has beenclassified as "held-for-trading", "available-for-sale", "held-to-maturity", "loans and receivables", or "other

financial liabilities" as defrned by the standard.

Cash is designated as "held-for-trading" and is measured at fair value. Accounts receivable are designated as"loans and receivables" and are carried at amortized cost using the effective interest method. Accountspayable and accrued liabilities are classified as "other financial liabilities" and carried at amortized cost usingthe effective interest method.

The adoption of these new standards had no impact on the SCOHS financial position as at April 1 , 2007 .

It is management's opinion that SCOHS is not exposed to signihcant interest, currency or credit risks arisingfrom these financial instruments due to their short-term nature.

Use of accounting estimates

The preparation of frnancial statements in accordance with Canadian generally accepted accounting principlesrequires management to make estimates and assumptions. These estimates and assumptions affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of thehnancial statements and the reported amounts of revenues and expenses during the reporting periodspresented. The more significant areas requiring the use of estimates include accrued liabilities, potentialretroactive union settlements, post-employment benefits and post-retirement benefits. Actual results coulddiffer from those estimates.

--JI

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March 3 l , 2008

Future accounting changes

The CICA has issued the followine new Handbook Sections:

CICA Section 3862, Financial instruments - Disclosures, applies to fiscal years beginning on or afterOctober 1,2007. This section modifies the disclosure standards for financial instruments that wereincluded in Section 3861, Financial Instruments - Disclosure and Presentation. The new standardrequires entities to provide disclosure on a) the significance of financial instruments for the entity'sfinancial position and performance and b) the nature and extent of risks arising from f,tnancialinstruments to which the entity is exposed during the period and at the balance sheet date, and how theentity manages those risks.

CICA Section 3863, Financial instruments - Presentation, applies to fiscal years begiruring on or afterOctober 1,2007. This Section carries forward the same presentation standards for financial instrumentsthat were included in Section 3861, Financial Instruments - Disclosure and Presentation.

CICA Section 1535, Capital Disclosures, applies to fiscal years beginning on or after October 1,2007 .This Section establishes standards for disclosing information about an entity's objectives, policies andprocesses for managing capital.

CICA Section 3031, Inventories, applies to fiscal years beginning on or after January l,2008 andreplaces Section 3030, Inventories. The new Section prescribes measurement of inventories at the lowerof cost and net realizable value. It provides guidance on the determination of cost, prohibiting the use ofthe last in hrst out method (LIFO), and requires the reversal of previous write-downs when there is asubsequent increase in the value ofinventories.

Management is currently evaluating the full effect of the adoption of these Sections on the financialstatements.

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March 31. 2008

3. LAND AND BUILDINGS LEASED FROM THE CORPORATION OF THESISTERS OF CHARITY OF OTTAWA

Land and buildings used by SCOHS are leased from the Corporation of the Sisters of Charity of Ottawa ["theCorporation"]. On February 25,2008, the terms of the leases have been extended from March 31,2016 toMarch 31, 2027 . SCOHS is leasing the buildings for a period of 20 years for a nominal amount, maturing in2027 without a pre-determined renewal period. Accordingly, improvements made to the buildings arerecorded as leasehold improvements and amortized over the remaining term of the leases. The first 8 years ofthe new terms resulted in an annual decrease of the non shareable expense in the amount of $3,744,119 and anannual decrease of the non shareable revenue in the amountof $2,737,474. For the remaining 12 years, theimpact is an increase of the non shareable expense in the amount of $3,046,697 and an annual increase of thenon shareable revenue in the amount of $2,237 ,467 .

4. CAPITAL ASSETS

20072008

Cost$

Cost$

AccumulatedAmortization

$

AccumulatedAmortization

$

Leasehold improvementsConstruction in progressMajor equipmentSoftware

109,028,967 49,743,215 106,504,246 45,570,280940,313 I s3,768

35J54,880 29,146,493 33,593,792 27,441,5161,088,953 452.584 768_960 296.934

t46,413,tt3 78,342,292 141,020,766 73,308,730Accumulated amortization (78,342,292) (73,308,730)Net book value 68,070,821 67,712,036

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Sisters of Charity of Ottawa Health Service lnc.

FINANCIAL STATEMENTSNOTES TO THE

March 3l, 2008

5. FUNDS INTERNALLY RESTRICTED FOR LONG-TERM OBLIGATIONS

Funds internally restricted for long-term obligations reflect the SCOHS practice to designate funds requiredfor future obligations, as follows:

2007$

2008$

Capital purposesInternally restricted net assetsPost-employment benefits - vested sick leavePost-retirement benefi ts

783,10020,000

5,363,765552,550

640,523

5,030,473474,950

6,719,415 6,145,946

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2008$

2007$

Accounts payableEmployee/employer remittances payable

Accrued salaries & wages - general

Accrued salaries & wages - under negotiation

Vacation benefi ts payable

Other accrued benefitsOther accrued liabil i t ies

Funds held as Paymaster

Patient deposits trust account

5,740,6692,296,2932,209,3521,036,4895,845,396

338,445365,151458,707271,743

4,695,7161,916,7491,574,512

652,1415,531,906

274,2715 8 5 , 3 1 5334,604374,990

18,552,235 15,940,204

Funds held as Paymaster represent deposits administered by SCOHS on behalf of other organizationsoperating on site. These funds are under the exclusive control of these organizations. SCOHS alsoadministers trust funds on behalf of patients and pursuant to trust agreements, which are subject to restrictions.

These funds are both recorded in accounts payable and are both presented as restricted cash.

--JI

Sisters of Charity of Ottawa

NOTES TO

Health Service Inc.

THE FINANCIAL STATEMENTS

March 31 .2008

7. DEFERRED CONTRIBUTIONS

Deferred contributions for capital assets relateHospital.

FOR CAPITAL ASSETS

to purchases of capital assets and to renovations of the SCO

2008$

2007$

Net deferred contributions subject to amortizationDeferred contributions not yet subject to amortization

47,253,1201,465,692

47,984,072657,652

48,718,E12 48,641,724

The changes in the deferred contributions for capital assets balance for the year are as follows:

200E$

2007$

Balance, beginning of year

Grants and donations received during the year

Interest earned from restricted investments

4E,641,7243,083,426

49,556,8894,659,538

22,858(5,597,561)Amortization of deferred capital contributions (3,006J38)

Balance, end of year 48,718,812 48,64t,724

In fiscal 2008, total net grant contributions of $1,540,475 12007 -$3,916,8891 were awarded and total netdonations of $760,000 [2007 - $722,774) were received from the Foundation for leasehold improvements.

In fiscal 2008, SCOHS also received total net grant contributions of $306,313 L2007 - $nill and total netdonations of$476,638 12007 - $19,8751 from the Foundation for equipment purchases.

ElI

Sisters of Charitv of Ottawa Health Service Inc.


March 31. 2008

8. RELATED PARTY TRANSACTIONS

SCOHS exercises significant influence over the Sisters of Charity of Ottawa Health Service Foundation Inc.

["the Foundation"], the Bruydre Academic Family Health Team ["the FHT"] and the Elisabeth BruyereResearch Institute Inc. ["the Research Institute"], with the cross appointment of ex-officio board members asrequired by the individual corporation by-laws.

However, the Foundation, the FHT and the Research Institute are separate entities, whose financialinformation is not consolidated in the SCOHS financial statements and is reported separately. Their separatefinancial statements are available upon request.

Sisters of Charity of Ottawa Health Service Foundation Inc.

The Foundation was established to raise funds for SCOHS and related entities. The Foundation isincorporated under the Corporations Act of Ontano and is a registered charify under the Income Tax Act.Unaudited net assets of the Foundation at March 31, 2008 amount to $4,354,956 [2007 - $3,526,823]. Duringthe year, SCOHS received donations of $1,269,553 12007 - $919,2431 from the Foundation. Included in otheraccounts receivable is $45,667 12007 - $46,0261 due from the Foundation.

Bruyire Academic Family Health Team

The FHT was established with funds from the Ministry to provide family health services to the communifyand to support an academic environment for the training of physicians and medical students. It is comprisedof the University of Ottawa, SCOHS and the Bruydre Family Health Network physicians. The unincorporatedgovernance structure is established by a tripartite agreement commencing on April 1, 2007 and expiring onMarch 31, 2010, which can be extended by the Ministry at the wrllingness of the participants. Unaudited netassets of the FHT at March 3 I , 2008 amount to $nil. During the year, the FHT contributed $202,7 53 towardsthe SCOHS capital and operational expenses. Included in other accounts receivable is $773,009 due from theFHT.

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March 3l, 2008

Elisabeth Bruyire Research Institute Inc.

The Research Institute was established to promote, support and carry out research in gerontology. TheResearch Institute is incorporated under the Ontario Corporations Act and is a registered charity under theIncome Tax Act. Unaudited net assets of the Research Institute at March3l.2008 amount to $713.074[2007 - $733,087]. SCOHS supported the Research Institute's overhead with a contribution of $713,000[2007 - $638,000]. Included in other accounts receivable is $543,055 [2007 - $218,256] due from theResearch Institute.

These transactions are in the normal course of operations and are measured at the exchange amount, which isthe amount of consideration established by the related entrtles.

SCOHS provides the Foundation, the FHT and the Research Institute with financial, human resources andinformation systems services as well as occupation cost. These services are provided at minimal or no charge.

Hospital Food Services - Ontario Inc. and Ottawa Regional Hospital Linen ServicesIncorporated

SCOHS is a founding member of Hospital Food Services - Ontario Inc. ["HFS"] and of the Ottawa RegionalHospital Linen Services Incorporated ["ORHLS']. HFS and ORHLS were established to provide food andlaundry services, respectively to member hospitals on a cost recovery basis and to the community for proht.

For the year ended March 31, 2008, SCOHS paid $814,012 L2007 - $799,0431 to HFS for food services and81,226,484 [2007 - $ I , 172,958] to ORHLS for linen services. These amounts have been included in suppliesand other expenses in the statement ofrevenues and expenses.



March 31. 2008

9. PENSION PLAN

Substantially all of the employees of the SCO Hospital and the Villa are members of the Hospitals of OntarioPension Plan, which is a multiemployer final average pay contributory pension plan. Up to the proratedyearly maximum pensionable earnings ['YMPE"], the employees make contributions equal to 6.9o/o of theirsalary and in excess of YMPE, contributions of 9.2o/o. The SCOHS contributions amount to 1.26 times theemployees' share. Contributions to the Hospitals of Ontario Pension Plan during the year by SCOHS onbehalf of these employees amounted to $5,079,790 [2007-$4,618,285] and are included in benefitcontributions for employees in the statement of revenues and expenses.

Unionized employees of the R6sidence Saint-Louis are members of the Nursing Homes and Related IndustriesPension Plan which is a multi-employer contributory pension plan. Employees' contributions are 4%, of theirsalary and SCOHS contributes an equal amount. Contributions to this plan during the year amounted to$183,227 12007 - $180,2081. A collective RRSP plan is also offered to non-unionized employees of the RSL.No contribution is required from the employees but SCOHS contributes an amount of 4o/o of their salary.Contributions to this plan for the year totaled $34,92612007 - $38,4401. Contributions by SCOHS on behalfof employees of the RSL are included in benefit contributions for employees in the statement of revenues andexpenses.

IO. POST-EMPLOYMENT AND POST.RETIREMENT BENEFITS

Post-employment benefits are comprised of vested sick leave. Post-retirement benefits are comprised ofextended health care, dental benefits and life insurance benefits for retired employees. The cost of theextended health care and dental benefits is the sole responsibility of the retirees while the cost of the lifeinsurance is covered entirely by SCOHS. These benefits are recorded in the statement of revenues andexpenses as a component ofsalaries and wages for $743,300 [2007 - $940,500] and as a component ofbenefitcontributions for employees for $128,100 [2007-$124,400]. These benefits are based on an actuarialvaluation performed by a hrm of independent acfuaries as at April l, 2008, based on the plan provisionsknown as at March 31, 2008 and on an updated employee list as at December 31,2007 .

=-Jll 0



March 31. 2008

Information about the SCOHS post-employment and post-retirement benefits is as follows:

Vested sick leave Post-retirement benefi ts200E 2007

$ $2008 2007

$ $

Accrued benefit liabitifyBalance, beginning of year

Net periodic cost5,030,473 5,361,973 474,950

128,100386,300124,400(35,750)

743,300 940.500Contributions made during the year (410,00E) (1,272,000) (50,500)Balance, end of year 5,363,765 5,030,473 552,550 474,950

The net periodic benefit/vested sick leave cost includes:

Vested sick leave Post-retirement benefits200E 2007

$ $2008 2007

$ $

Service cost for benefits earnedduring the year

Interest cost on benefit obligationAmortization of net actuarial lossSettlement loss

380,400321,30041,600

362,204339,1004 l ,800

197,400

45,60044,6006,500

43,40042,1007,500

3 l ,400Amortization of past service costs 31,400Net periodic cost 743,300 940,500 128,100 t24,400

ln 2007 , SCOHS recognized a settlement loss of $ 197,400 as a result of the payment of a portion of the vestedsick leave liability for a small group of employees which participated in a voluntary departure program as partof the restructuring initiatives. The settlement loss was included in the net periodic cost in fiscal 2007 [2008 -

$nil l.

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March 31. 2008

The reconciliation of the accrued benefit oblieation to the accrued benefit liabilitv is as follows;

Vested sick leave Post-retirement benefits2008 2007

$ $2008 2007

$ $

Accrued benefit obligationLess unamortized amounts:

Net actuarial lossPast service costs

6,109,000 6,170,400

745,235 1,139,927

838,200

10,950274,700

872,3s0

172,300225,t00

Accrued benefit liabilitv 5,363,765 5,030,473 552,550 474,950

The key actuarial assumptions used to determine the net periodic cost and accrued benefit obligation are:

Vested sick leave Post-retirement benefits200E 2007

"h oh200E 2007

o ,

Discount rateSalary escalation rateExtended health care cost trend - currentExtended health care cost trend - ultimateDental care cost trend - currentDental care cost trend - ultimate

r . / J

3.005.003.00

!. / f ,

roso4.504.504.50

5.00

10.504.504.504.50

11. LINE OF CREDIT

SCOHS has available a $2,400,000 [2007 - $2,400,000] line of credit, bearing interest based on Canadianprime rate. At March 31,2008, SCOHS had drawn $nil [2007 - $nil] from the line of credit.

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March 31. 2008

12. COMMITMENTS AND CONTINGENCIES

At March 31, 2008, HFS had drawn $10,497,574 12007 - $11,284,0311 on an available non-revolvingdemand loan of $13,900,000, for which SCOHS, as a founding member, is one of the guarantors. In theevent of any breach of covenants associated with this non-revolving demand loan, SCOHS may berequired to advance some funds to HFS, in accordance with its guarantee of the debt. The SCOHS shareof the capital advance would be based on its percentage of ownership. As at the date of the audit report,there has been no such request by the debtor.

On March 17,2008, SCOHS received approval from the Ministry to proceed with the hre alarm andsprinkler upgrade project at the Elisabeth Bruydre Health Centre site. The total project cost is estimatedat $10,000,000. The Ministry will fund 90o/o of the construction cost, up to a maximum grant of$8,887,300. The remaining balance will be funded by the Foundation. As of March 31,2008, theproject is approximately 4%o completed.

SCOHS is committed to several equipment leases and maintenance and service agreements, which expireon various dates. The minimum amounts payable over the next five years are as follows:

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2009201 0201 r20t22013

602,134664, | 50520,591

7 1 4 1 1

24,750

[d] SCOHS is periodically involved in claims and legal actions arising in the ordinary course of business. Inthe opinion of management, the ultimate resolution of these matters will not have a material adverseeffect on the organization's hnancial position, results of operations, or liquidity.

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SCOHS 2008 03 31 EngSCOHS 2008 03 31 Eng 2

financial statements statements 2008.pdf · an audit includes examining, on a test basis, evidence...

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