EX-99.E 4 ex99-e.txt PUBLIC ACCOUNTS 2001-02 Public Accounts 2001-02 ------------------------------------------------------------------------------- Volume 1 ------------------------------------------------------------------------------- Main Financial Statements ------------------------------------------------------------------------------- Public Accounts, 2001-02 1 ------------------------------------------------------------------------------- Table of Contents Page Transmittal Letters....................................................... 3 Introduction to the Public Accounts....................................... 4 Sources of Additional Information......................................... 4 Financial Reporting Structure............................................. 5 General Revenue Fund Financial Statements Responsibility for General Revenue Fund Financial Statements............ 9 Provincial Auditor's Report ............................................ 11 Statement of Financial Assets, Liabilities, and Accumulated Deficit..... 13 Statement of Revenue, Expenditure, and Accumulated Deficit.............. 14 Statement of Cash Flow.................................................. 15 Notes to the Financial Statements....................................... 16 Schedules to the Financial Statements Schedule 1 - Accounts Receivable..................................... 24 Schedule 2 - Loans to Crown Corporations............................. 24 Schedule 3 - Other Loans............................................. 25 Schedule 4 - Accounts Payable and Accrued Liabilities................ 26 Schedule 5 - Deposits Held........................................... 26 Schedule 6 - Debt.................................................... 27 Schedule 7 - Sinking Funds........................................... 28 Schedule 8 - Debt by Maturity........................................ 29 Schedule 9 - Guaranteed Debt......................................... 30 Schedule 10 - Revenue................................................. 32 Schedule 11 - Loss on Loans and Investments........................... 33 Schedule 12 - Net Change in Non-cash Operating Activities............. 33 Schedule 13 - Investing Activities.................................... 34 Fiscal Stabilization Fund Schedule of Transfers and Accumulated Balance........................... 37 Summary Financial Statements Responsibility for Summary Financial Statements......................... 41 Provincial Auditor's Report............................................. 43 Summary Statement of Financial Assets, Liabilities, and Accumulated Deficit................................................... 45 Summary Statement of Revenue, Expenditure, and Accumulated Deficit...... 46 Summary Statement of Cash Flow.......................................... 47 Notes to the Summary Financial Statements............................... 48 Schedules to the Summary Financial Statements Schedule 1 - Accounts Receivable..................................... 58 Schedule 2 - Loans and Mortgages Receivable.......................... 58 Schedule 3 - Investment in Government Enterprises.................... 60 Schedule 4 - Other Investments....................................... 63 Schedule 5 - Accounts Payable and Accrued Liabilities................ 67 Schedule 6 - Other Liabilities....................................... 67 Schedule 7 - Public Debt............................................. 68 Schedule 8 - Sinking Funds........................................... 69 Schedule 9 - Public Debt by Maturity................................. 70 Schedule 10 - Guaranteed Debt......................................... 72 Schedule 11 - Revenue................................................. 74 Schedule 12 - Gains and Losses on Other Investments................... 75 Schedule 13 - Net Change in Non-cash Operating Activities............. 75 Schedule 14 - Reporting Entity........................................ 76 General Revenue Fund - Details of Debentures.............................. 78 Glossary of Terms......................................................... 87 This page left blank intentionally. Public Accounts, 2001-02 3 ------------------------------------------------------------------------------- To Her Honour The Honourable Lynda Haverstock Lieutenant Governor of the Province of Saskatchewan May It Please Your Honour: The undersigned has the honour to submit herewith the main financial statements of the Government of the Province of Saskatchewan for the fiscal year ended March 31, 2002. Respectfully submitted, Eric Cline Minister of Finance Regina, Saskatchewan June 2002 ------------------------------------------------------------------------------- The Honourable Eric Cline Minister of Finance We have the honour of presenting herewith the main financial statements of the Government of the Province of Saskatchewan for the fiscal year ended March 31, 2002. Respectfully submitted, Ron Styles Terry Paton Deputy Minister of Finance Provincial Comptroller Regina, Saskatchewan June 2002 4 Public Accounts, 2001-02 ------------------------------------------------------------------------------- Introduction to the Public Accounts The 2001-02 Public Accounts of the Government of Saskatchewan are organized into two reports: VOLUME 1 contains the General Revenue Fund Financial Statements and the Summary Financial Statements. These are the main financial statements of the Government of Saskatchewan. It also contains information on the Fiscal Stabilization Fund. The General Revenue Fund Financial Statements account for the financial transactions of the General Revenue Fund and the Province of Saskatchewan Sinking Funds. All public money is paid into the General Revenue Fund except where the Legislative Assembly has directed otherwise. The General Revenue Fund is available for appropriation for the public services of Saskatchewan. The Summary Financial Statements consolidate the financial transactions of the General Revenue Fund, Crown corporations, agencies, boards and commissions. These consolidated statements provide a full accounting of the financial affairs and resources of all entities for which the Government is responsible. The Fiscal Stabilization Fund was established April 1, 2000. Its purpose is to stabilize the fiscal position of the Government from year to year and to facilitate the accomplishment of long term objectives. Volume 1 also contains detailed information on public issue debentures and debentures issued to the Minister of Finance of Canada. VOLUME 2 contains the following: o details on the revenue and expenditure of the General Revenue Fund; and o other information including financial information on the assets, liabilities and residual balances of superannuation and trust funds administered by the Government, and a listing of remissions of taxes and fees. INTERNET ADDRESS The Public Accounts are available on the Internet at: http://www.gov.sk.ca/finance SOURCES OF ADDITIONAL INFORMATION FINANCIAL STATEMENTS COMPENDIUM This is a two volume report comprised of the financial statements of various government boards, agencies, commissions, superannuation funds, special purpose funds and institutions, as well as Crown corporations which are accountable to the Treasury Board. ANNUAL REPORTS OF SASKATCHEWAN CROWN CORPORATIONS This is a compendium of the financial reports of Crown corporations that are accountable to the Crown Investments Corporation. BUDGET ADDRESS The Government of Saskatchewan presents a budget each year, usually early in the spring. At this time, a document containing the Budget Address and budget papers is tabled. SASKATCHEWAN ESTIMATES The Government's spending estimates for the year commencing April 1 are presented to the members of the Legislative Assembly following presentation of the Budget Address by the Minister of Finance. The Estimates outline the detailed estimates of revenue, expenditure, loans, advances, and investments to the Legislative Assembly for approval in the form of The Appropriation Act. PROVINCE OF SASKATCHEWAN MID-YEAR FINANCIAL REPORT This report, released in November, provides an update on the General Revenue Fund's revenue, expenditure, surplus, and debt reflecting economic changes and other developments to the mid-point of the fiscal year. Updates on the Province's economy are also provided. Public Accounts, 2001-02 5 ------------------------------------------------------------------------------ FINANCIAL REPORTING STRUCTURE
-------------------- | | _ | Legislative | _ /|| Assembly ||\ / | | \ / -------------------- \ / /o\ \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ / o \ ---------------- --------------- --------------- | Crown | | | | Public | | Corporations | | Cabinet | | Accounts | | Committee | | | | Committee | ---------------- --------------- --------------- / \ - - / \ | o| |o | | o o | | o o | | o o | | o o | | o o | | o o | | --------------------- --------------------- | | | Crown Investments | | Treasury Board | | | | Corporation Board | | | | | --------------------- --------------------- | | /o\ /o\ | | o o | | o o | =====|================o=========================o==========================|======= = | o o | = = | o ============o==========================|=== = = | o = o | = = = | --------------------- = GENERAL o -------------------- | = = = | | Crown Investments | = REVENUE o | Departments | | = = = |-----| Corporation (CIC) | = FUND o--| |--| = = = | --------------------- = o -------------------- | = = = | /o\ = o | = = = | o = o | = = = | o ============o==========================|=== = = | o o | = = | o o | = = | o o -------------------- | = = | o o | Treasury Board | | = = | --------------------- o--| Crown |--| = = | | CIC Crown | o | Corporations[2] | | = = -----| Corporations[1] | o -------------------- | = = --------------------- o | = = o | = = o | = = o | = = o -------------------- | = = o | Agencies | | = = o--| Boards and |-- = = | Commissions | = = -------------------- = = SUMMARY FINANCIAL STATEMENTS = = = =================================================================================== oooooooooooooooooo\ Financial Control and Reporting ------------------\ Financial Reporting
1. Examples of CIC Crown corporations are: SaskEnergy, SaskPower, SaskTel, SGI, and STC. 2. Examples of Treasury Board Crown corporations are: Agricultural Credit Corporation of Saskatchewan, Saskatchewan Liquor and Gaming Authority, Saskatchewan Crop Insurance Corporation and Saskatchewan Property Management Corporation. This page left blank intentionally GENERAL REVENUE FUND FINANCIAL STATEMENTS This page left blank intentionally General Revenue Fund 9 ----------------------------------------------------------------------------- RESPONSIBILITY FOR GENERAL REVENUE FUND FINANCIAL STATEMENTS The Government is responsible for the General Revenue Fund Financial Statements. The Government maintains a system of accounting and administrative controls to ensure that accurate and reliable financial statements are prepared and to get reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained. The Provincial Comptroller prepares these statements following the Government's stated accounting policies and using the Government's best estimates and judgement when appropriate. The Provincial Auditor expresses an independent opinion on these statements. His report, stating the scope of his audit and opinion, appears on the following page. Treasury Board approves the General Revenue Fund Financial Statements. The Minister of Finance tables the statements in the Legislative Assembly as part of the Public Accounts. The Legislative Assembly refers the Public Accounts to the Standing Committee on Public Accounts for review. On behalf of the Government of the Province of Saskatchewan. Eric Cline Minister of Finance Ron Styles Deputy Minister of Finance Terry Paton Provincial Comptroller Regina, Saskatchewan June 2002 This page left blank intentionally General Revenue Fund 11 ----------------------------------------------------------------------------- AUDITOR'S REPORT To the Members of the Legislative Assembly of Saskatchewan THESE FINANCIAL STATEMENTS REPORT TRANSACTIONS AND EVENTS OF THE GENERAL REVENUE FUND ONLY. SIGNIFICANT FINANCIAL ACTIVITIES OF THE GOVERNMENT OCCUR OUTSIDE THIS FUND. THEREFORE, READERS SHOULD NOT USE THE GENERAL REVENUE FUND'S FINANCIAL STATEMENTS TO UNDERSTAND AND ASSESS THE GOVERNMENT'S MANAGEMENT OF PUBLIC FINANCIAL AFFAIRS AND RESOURCES AS A WHOLE. VOLUME 1 OF THE PUBLIC ACCOUNTS INCLUDES A MORE COMPLETE SET OF FINANCIAL STATEMENTS. THOSE STATEMENTS ARE CALLED THE SUMMARY FINANCIAL STATEMENTS OF THE GOVERNMENT OF SASKATCHEWAN. THEIR PURPOSE IS TO REPORT THE FULL NATURE AND EXTENT OF THE FINANCIAL AFFAIRS AND RESOURCES FOR WHICH THE GOVERNMENT IS RESPONSIBLE. PLEASE REFER TO THOSE SUMMARY STATEMENTS TO UNDERSTAND AND ASSESS THE GOVERNMENT'S MANAGEMENT OF PUBLIC FINANCIAL AFFAIRS AND RESOURCES AS A WHOLE. I have audited the statement of financial assets, liabilities, and accumulated deficit of the General Revenue Fund as at March 31, 2002 and the statements of revenue, expenditure, and accumulated deficit and cash flow for the year then ended. These financial statements are the responsibility of Treasury Board. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. RESERVATIONS 1. The Government records transactions between the General Revenue Fund and the Fiscal Stabilization Fund as revenues or expenditures of the General Revenue Fund. The substance of the transactions between the General Revenue Fund and the Fiscal Stabilization Fund are that amounts owed by the General Revenue Fund to the Fiscal Stabilization Fund must be repaid to the General Revenue Fund by the Fiscal Stabilization Fund. Canadian generally accepted accounting principles for the public sector do not allow the General Revenue Fund to record changes in the amounts due to the Fiscal Stabilization Fund as revenues or expenditures of the General Revenue Fund. In 2001, the financial statements show a liability of $775 million owed to the Fiscal Stabilization Fund and an expenditure of $775 million. It is not appropriate to record the $775 million as an expenditure because the Fiscal Stabilization Fund must return the $775 million to the General Revenue Fund. In my opinion, instead of recording an expenditure of $775 million, the financial statements should record an asset of $775 million owed to the General Revenue Fund from the Fiscal Stabilization Fund. Had the transaction been properly recorded, financial assets as at March 31, 2001, would increase by $775 million and the accumulated deficit would decrease by $775 million. Also, expenditure would decrease by $775 million and the surplus for the year would increase by $775 million. In 2002, the financial statements show a liability of $495 million owed to the Fiscal Stabilization Fund and revenue of $280 million from the Fiscal Stabilization Fund. It is not appropriate to record the $280 million as revenue because it is not revenue earned by the General Revenue Fund but is the reduction in the amount owed to the Fiscal Stabilization Fund by the General Revenue Fund. In my opinion, instead of recording revenue of $280 million, the financial statements should show an asset of $495 million owed to the General Revenue Fund from the Fiscal Stabilization Fund. Had the transaction been properly recorded, financial assets as at March 31, 2002, would increase by $495 million and the accumulated deficit would decrease by $495 million. Also, revenue from the Fiscal Stabilization Fund would decrease by $280 million and the surplus for the year would decrease by $280 million. 2. The General Revenue Fund is responsible for the liabilities of several pension funds. Note 7 states that the pension liabilities are not recorded in these financial statements. In my opinion, the pension liabilities should be recorded in the financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit as at March 31, 2002, would increase by $3,952 million (2001 - $3,913 million) and expenditure would increase by $39 million (2001 - $112 million) and surplus for the year would decrease by $39 million (2001 - $112 million). 12 Public Accounts, 2001-02 ----------------------------------------------------------------------------- OPINION In my opinion, except for the effects of recording changes in the amounts due to the Fiscal Stabilization Fund as revenues or expenditures of the General Revenue Fund and the failure to record pension liabilities as described in the preceding paragraphs, these financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31, 2002 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles for the public sector. Regina, Saskatchewan Fred Wendel, CMA, CA June 4, 2002 Provincial Auditor General Revenue Fund 13 ----------------------------------------------------------------------------- GENERAL REVENUE FUND STATEMENT OF FINANCIAL ASSETS, LIABILITIES, AND ACCUMULATED DEFICIT As at March 31, 2002
(thousands of dollars) ---------------------------------------------------------------------------------------- Schedule 2002 2001 ---------------------------------------------------------------------------------------- FINANCIAL ASSETS Cash and temporary investments (note 3)................$ 130,194 $ 361,328 Prepaid expenditures................................... 3,131 2,137 1 Accounts receivable.................................... 479,403 432,412 Agricultural land held for resale (note 4)............. 111,370 112,653 Deferred charges....................................... 47,290 57,161 Deferred foreign exchange loss......................... 227,577 234,326 2 Loans to Crown corporations............................ 3,608,190 3,478,962 3 Other loans ........................................... 101,322 37,675 Equity investment in Crown Investments Corporation of Saskatchewan ........................................ 1,242,452 1,362,452 ---------------------------------------------------------------------------------------- TOTAL FINANCIAL ASSETS 5,950,929 6,079,106 ---------------------------------------------------------------------------------------- LIABILITIES 4 Accounts payable and accrued liabilities .............. 651,106 740,897 5 Deposits held.......................................... 1,064,992 1,391,145 Unearned revenue....................................... 74,503 73,482 6,7&8 Debt................................................... 11,170,089 10,884,441 ---------------------------------------------------------------------------------------- TOTAL LIABILITIES 12,960,690 13,089,965 ---------------------------------------------------------------------------------------- ACCUMULATED DEFICIT $(7,009,761) $ (7,010,859) ======================================================================================== (See accompanying notes) Tangible capital assets (note 5) Pension liabilities, contingencies, and commitments (notes 7, 11, 12) 9 Guaranteed debt
14 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND STATEMENT OF REVENUE, EXPENDITURE, AND ACCUMULATED DEFICIT For the Year Ended March 31, 2002
(thousands of dollars) ---------------------------------------------------------------------------------------------------------------- Budget ACTUAL Actual Schedule 2002 2002 2001 ---------------------------------------------------------------------------------------------------------------- REVENUE 10 Taxation.....................................................$ 3,178,500 $ 3,022,179 $ 3,202,234 10 Non-renewable resources ..................................... 877,300 903,044 1,292,714 10 Transfers from Government entities........................... 557,700 561,337 1,055,387 10 Other own-source revenue..................................... 320,400 335,428 331,104 10 Transfers from the federal government ....................... 1,107,800 1,237,086 872,164 ---------------------------------------------------------------------------------------------------------------- TOTAL REVENUE 6,041,700 6,059,074 6,753,603 ---------------------------------------------------------------------------------------------------------------- OPERATING EXPENDITURE Executive Branch of Government Agriculture and Food......................................... 337,103 400,420 221,481 Centenary Fund............................................... 30,000 29,919 29,954 Culture, Youth and Recreation................................ 29,709 23,346 6,318 Economic and Co-operative Development....................... 67,896 70,144 72,529 Education.................................................... 614,923 621,082 581,635 Energy and Mines............................................. 30,301 29,924 18,880 Environment and Resource Management.......................... 130,022 137,428 125,356 - Forest Fire Contingency Fund........................... 40,000 40,000 3,848 Executive Council............................................ 7,707 7,462 7,227 Finance ..................................................... 212,318 211,501 197,911 Health....................................................... 2,207,228 2,199,753 2,025,833 - Transition Fund........................................ - - 49,817 Highways and Transportation.................................. 311,692 309,306 273,307 Intergovernmental and Aboriginal Affairs..................... 46,422 51,928 34,653 Justice...................................................... 235,376 237,086 232,207 Labour....................................................... 13,408 13,117 12,637 Municipal Affairs and Housing................................ 170,778 170,550 181,060 Post-Secondary Education and Skills Training................. 511,486 508,942 528,407 Public Service Commission.................................... 8,965 8,945 8,165 Rural Revitalization Office.................................. 800 597 - Saskatchewan Municipal Board................................. 1,101 956 901 Saskatchewan Property Management Corporation................. 21,719 24,502 22,017 Saskatchewan Research Council................................ 8,390 8,306 9,172 Saskatchewan Water Corporation............................... 8,810 8,722 9,444 Social Services.............................................. 588,492 579,956 578,574 Women's Secretariat.......................................... 1,183 1,178 1,150 LEGISLATIVE BRANCH OF GOVERNMENT Chief Electoral Officer...................................... 710 841 1,187 Conflict of Interest Commissioner............................ 122 91 90 Information and Privacy Commissioner......................... 105 84 85 Legislative Assembly......................................... 17,571 17,239 15,737 Ombudsman and Children's Advocate............................ 2,651 2,704 2,540 Provincial Auditor........................................... 5,136 5,136 4,698 ---------------------------------------------------------------------------------------------------------------- Total Operating Expenditure (note 10) 5,662,124 5,721,165 5,256,820 ---------------------------------------------------------------------------------------------------------------- Operating Surplus................................................... 379,576 337,909 1,496,783 Finance - Servicing the Debt (note 9)............................... (640,500) (616,811) (664,092) Transfer from (to) the Fiscal Stabilization Fund.................... 263,700 280,000 (775,000) ---------------------------------------------------------------------------------------------------------------- SURPLUS FOR THE YEAR................................................ 2,776 1,098 57,691 Accumulated deficit, beginning of year.............................. (7,010,859) (7,010,859) (7,068,550) ---------------------------------------------------------------------------------------------------------------- ACCUMULATED DEFICIT, END OF YEAR (NOTE 8) $ (7,008,083) $ (7,009,761) $(7,010,859) ================================================================================================================ (See accompanying notes)
General Revenue Fund 15 ----------------------------------------------------------------------------- GENERAL REVENUE FUND STATEMENT OF CASH FLOW For the Year Ended March 31, 2002 (thousands of dollars) -------------------------------------------------------------------------------- Schedule 2002 2001 -------------------------------------------------------------------------------- OPERATING ACTIVITIES -------------------------------------------------------------------------------- Surplus for the year.............................$ 1,098 $ 57,691 Add (deduct) non-cash items Amortization of foreign exchange gains and losses. 17,196 14,095 11 Loss on loans and investments..................... (296) (779) 12 Net change in non-cash operating activities ...... (126,884) (101,570) Earnings retained in sinking funds................ (35,216) (36,256) -------------------------------------------------------------------------------- CASH (USED FOR) OPERATING ACTIVITIES (144,102) (66,819) -------------------------------------------------------------------------------- INVESTING ACTIVITIES 13 Loan Advances..................................... (420,525) (495,314) 13 Loan Repayments................................... 296,017 672,002 13 Sinking funds' contributions received from Crown corporations...................................... 23,364 24,583 13 Contributions made to sinking funds............... (82,041) (77,252) 13 Other............................................. 121,223 1,286 -------------------------------------------------------------------------------- CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES (61,962) 125,305 -------------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from debt................................ 1,329,476 1,940,265 Repayment of debt.................................(1,028,393) (2,238,399) (Decrease) Increase in deposits held.............. (326,153) 148,754 -------------------------------------------------------------------------------- CASH (USED FOR) FINANCING ACTIVITIES (25,070) (149,380) -------------------------------------------------------------------------------- (DECREASE) IN CASH AND TEMPORARY INVESTMENTS ........ (231,134) (90,894) Cash and temporary investments, beginning of year ... 361,328 452,222 -------------------------------------------------------------------------------- CASH AND TEMPORARY INVESTMENTS, END OF YEAR $ 130,194 $ 361,328 ================================================================================ (See accompanying notes) 16 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS For the Year Ended March 31, 2002 1. SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared in accordance with the generally accepted accounting principles for senior governments as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants, with the following exceptions: o transfers to and from the Fiscal Stabilization Fund are included in the determination of surplus for the year; and o pension liabilities are not recorded in the financial statements. The General Revenue Fund accounts for pension obligations on a cash basis. The significant accounting policies are summarized below. A) REPORTING ENTITY The General Revenue Fund is the general fund which receives all revenues unless otherwise specified by law. Spending from the General Revenue Fund is appropriated by the Legislative Assembly. Other government entities such as special purpose funds, Crown corporations, and other agencies, report separately in other financial statements. Only financial transactions to or from these other entities are included in the General Revenue Fund. The net expenditures/recoveries for revolving funds' operations are charged to expenditure. The Government's summary financial statements which include the financial activities of the General Revenue Fund and other government entities are provided separately. B) BASIS OF ACCOUNTING The accrual basis of accounting is used and specifically expressed as follows: REVENUE Except for corporate and personal income taxes which are recorded when received from the federal government, revenues are recorded on the accrual basis. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met. EXPENDITURE Expenditures are recorded on the accrual basis except for pension costs which are recorded on the cash basis, and include the cost of tangible capital assets and inventories received during the year. Government transfers are recognized as expenditures in the period during which the transfer is authorized and any eligibility criteria are met. ASSETS Financial assets are those assets on hand at the end of an accounting period which could provide resources to discharge existing liabilities or finance future operations. TEMPORARY INVESTMENTS are recorded at the lower of cost or market. AGRICULTURAL LAND HELD FOR RESALE is valued at the lower of cost or net realizable value, on an aggregate basis. DEFERRED CHARGES include issue costs and net discounts or premiums incurred on the issue of long-term debt. They are recorded at cost and amortized on a straight line basis over the remaining life of the debt issue. DEFERRED FOREIGN EXCHANGE LOSS includes unrealized foreign exchange gains and losses resulting from conversion of debt and sinking funds' investments, held for general government purposes in a foreign currency, to the Canadian dollar equivalent at March 31. Unrealized foreign exchange gains and losses are amortized on a straight line basis over the remaining life of the debt issue. Realized foreign exchange gains or losses, resulting from transactions for general government purposes, are included in servicing the debt. LOANS TO CROWN CORPORATIONS and OTHER LOANS generally have fixed repayment terms and are interest bearing. Short-term loans to Crown corporations are recorded at par; all other loans are recorded at cost. Interest received on these loans is netted against interest paid on money borrowed for these loans. General Revenue Fund 17 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS EQUITY INVESTMENT IN CROWN INVESTMENTS CORPORATION OF SASKATCHEWAN is an advance to the corporation to form its equity capitalization and is recorded at cost. Where there has been a loss in value that is other than a temporary decline, loans and equity investments are written down to recognize the loss. TANGIBLE CAPITAL ASSETS and INVENTORIES, except for agricultural land held for resale, are recorded as an expenditure in the period acquired. LIABILITIES Reported liabilities include obligations to outside organizations and individuals as a result of transactions and events occurring prior to year end. They are the result of financial obligations to repay borrowings or to pay for goods and services acquired prior to year end, and of revenue, where goods or services will be delivered in the future. UNEARNED REVENUE consists mainly of revenue for Crown mineral leases and motor vehicle fees that will be earned in a subsequent fiscal year. DEBT is issued for general government purposes and for Crown corporations. All debt is recorded at par. Premiums, discounts, and issue costs incurred on debt issued for general government purposes are recorded as deferred charges and amortized on a straight line basis over the remaining life of the debt issue. Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. The General Revenue Fund is reimbursed by Crown corporations for all sinking fund contributions made on debt incurred on their behalf. Premiums and discounts on long-term investments within the sinking fund are amortized by the type of security on a constant yield basis. Debt issues and sinking funds' investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. Interest, discounts, premiums and commissions on money borrowed for Crown corporations and others are netted against reimbursements by these entities. GUARANTEED DEBT includes guarantees by the Minister of Finance, made through specific agreements or legislation, to repay promissory notes, bank loans, lines of credit, mortgages and other securities. Loss provisions on guaranteed debt are recorded when it is likely that a loss will occur. The amount of the loss provision represents the best estimate of future payments less recoveries. The loss provision is recorded as a liability and an expenditure in the year determined and is adjusted as necessary to ensure it equals the expected payout of the guarantee. 2. MEASUREMENT UNCERTAINTY Uncertainty in the determination of the amount at which an item is recognized in financial statements is known as measurement uncertainty. Such uncertainty exists when there is a variance between the recognized amount and another reasonably possible amount. Measurement uncertainty exists in these financial statements in the accrual of non-renewable resource royalties, and the federal government's Equalization and the Canada Health and Social Transfer. The uncertainty arises from factors such as price and production sensitivities in the royalty structures, and the effect on transfers from the federal government of changes in economic and demographic conditions in the Province and the country. Management considers that it is reasonably possible that changes in future conditions in the near term could require a material change in the amounts recognized. Near term is defined as a period of time not to exceed one year from the date of the financial statements. 3. CASH AND TEMPORARY INVESTMENTS The market value of cash and temporary investments is $130.2 million (2001 - $361.6 million). Temporary investments are generally for less than 30 days, and have an average effective interest rate of 2.02 per cent. 18 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS 4. AGRICULTURAL LAND HELD FOR RESALE The estimated net realizable value of the agricultural land held for resale at March 31, 2002 is $196.9 million (2001 - $202.2 million). 5. TANGIBLE CAPITAL ASSETS Tangible capital assets are recorded as an expenditure in the year acquired and are not included in the Statement of Financial Assets, Liabilities, and Accumulated Deficit. These assets are a key component in the delivery of government programs and provide on-going value to the public. Tangible capital assets are valued at cost. All costs directly attributable to the acquisition, construction, development or betterment of the tangible capital assets are included. Amortization is calculated using the straight line method based on the estimated useful life of each asset. During the current year, tangible capital assets costing $153.8 million (2001 - $117.3 million) were acquired. The net book value of $1,333.0 million (2001 - $1,271.1 million) represents the cost of tangible capital assets less an estimate of the portion of the assets used in the delivery of services. The following table includes assets held for use and does not include assets acquired by right or heritage assets and certain assets available for public use. The Saskatchewan Property Management Corporation (SPMC) also acquires tangible capital assets for use in day to day operations. SPMC manages most of the buildings and land used in the provision of services to the public. These assets are reported separately in the financial statements of SPMC.
(thousands of dollars) -------------------------------------------------------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------------------------------ Office Highways Machinery & Computer Computer Furniture & Total Total & Bridges(*) Equipment Hardware Software Equipment Other (Restated) -------------------------------------------------------------------------------------------------------------------------------- 15 years - 3 years - Estimated useful life Indefinite 10 years 3 years 3 years 5-10 years Indefinite -------------------------------------------------------------------------------------------------------------------------------- Opening cost............. $ 2,367,204 $ 15,902 $ 27,009 $ 4,588 $ 10,166 $ 14,925 $ 2,439,794 $ 2,361,945 Additions ............... 132,315 1,682 8,109 6,521 2,098 3,053 153,778 117,340 Disposals................ (28,280) (1,659) (7,853) (679) (99) - (38,570) (39,491) -------------------------------------------------------------------------------------------------------------------------------- Closing cost of tangible capital assets 2,471,239 15,925 27,265 10,430 12,165 17,978 2,555,002 2,439,794 -------------------------------------------------------------------------------------------------------------------------------- Opening accumulated amortization............ 1,136,158 7,532 15,137 2,550 3,136 4,155 1,168,668 1,120,052 Annual amortization...... 72,228 1,716 10,404 3,492 1,441 2,235 91,516 86,689 Write-downs.............. - - - - - - - - Disposals................ (28,280) (1,263) (7,853) (679) (98) - (38,173) (38,073) -------------------------------------------------------------------------------------------------------------------------------- Closing accumulated amortization 1,180,106 7,985 17,688 5,363 4,479 6,390 1,222,011 1,168,668 -------------------------------------------------------------------------------------------------------------------------------- Net Book Value of Tangible Capital Assets $ 1,291,133 $ 7,940 $ 9,577 $ 5,067 $ 7,686 $ 11,588 $ 1,332,991 $ 1,271,126 --------------------------------------------------------------------------------------------------------------------------------
* During the year, the value of highways and bridges was established. Discounted replacement cost was used to estimate the cost of highways acquired prior to 1994-95 and bridges acquired prior to 1998-99. 6. RISK MANAGEMENT OF PUBLIC DEBT Funds are borrowed in both domestic and foreign capital markets by issuing Province of Saskatchewan securities. This borrowing activity finances general government operations and the activities of Crown corporations. These transactions result in exposure to four types of risk - interest rate risk, foreign exchange rate risk, credit risk and liquidity risk. To manage these risks, a preference for fixed rate Canadian dollar denominated debt is maintained. Where market conditions dictate that other forms of debt are more attractive, opportunities are identified to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract whose value is based on the value of another asset or index. General Revenue Fund 19 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS INTEREST RATE RISK is the risk that debt servicing costs will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominantly fixed rates of interest rather than at floating rates of interest. Opportunities are sought to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. At March 31, 2002, 85.6 % (2001 - 81.6%) of the principal value of debt issues effectively carried a fixed rate of interest. FOREIGN EXCHANGE RATE RISK is the risk that debt servicing costs will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, opportunities are sought to effectively convert it into Canadian dollar debt through the use of a cross currency swap. At March 31, 2002, 79.6% (2001 - 79.3%) of the principal value of debt issues was effectively denominated in Canadian dollars. CREDIT RISK is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties with good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2002, 100% (2001 - 100%) of counterparties held a credit rating of A or higher, as defined by Standard and Poor's. LIQUIDITY RISK is a risk that financial commitments will not be met over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short- term borrowing programs as contingent sources of liquidity. Schedule 8 provides more detailed information regarding the use of derivative instruments. 7. PENSION LIABILITIES The Government sponsors several defined benefit and defined contribution pension plans. Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans. DEFINED BENEFIT PENSION PLANS Defined benefit pension plans provide benefits based on length of service and pensionable earnings. A typical defined benefit pension plan provides pensions equal to 2 per cent of a member's average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their pension plan. Pensions and contribution rates are integrated with the Canada Pension Plan. The two main plans are the Teachers' Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Members of the Legislative Assembly Superannuation Plan (MLA), Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan, Anti-TB League Employees Superannuation Plan and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. Actuarial valuations are performed at least triennially. These valuations are extrapolated by an actuary when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates and short-term forecasts. Estimates vary based on the individual plan. The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. The TSP provides inflation protection equal to 80 per cent of the annual increase in the Consumer Price Index. Other plans provide inflation indexing at the discretion of the Lieutenant Governor in Council. The Government is required to match member current service contributions for all plans except Judges and the PSSP. Separate pension funds are maintained for all plans except the PSSP. PSSP member contributions are deposited into the General Revenue Fund. All pension obligations arising under the PSSP are paid from the General Revenue Fund. 20 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS Information on the defined benefit pension plans follows:
2002 2001 ------------------------------------------------------------- TSP PSSP Others Total Total ----------------------------------------------------------------------------------------------------------------------------- Plan status..................................................... closed closed closed(1) n/a n/a Member contribution rate, percentage of salary.................. 7.85 7 - 9(2) 5 - 9(2) n/a n/a Number of active members........................................ 5,269 2,069 86 7,424 8,461 Average age of active members, years............................ 50.6 52.1 55.0 51.1 49.9 Former members entitled to deferred pension benefits............ 6,675 124 10 6,809 7,162 Number of superannuates and surviving spouses................... 9,533 5,701 2,015 17,249 16,629 Member contributions (thousands of dollars)..................... $ 22,000 $ 6,278 $ 359 $ 28,637 $ 29,627 Government contributions (thousands of dollars)................. 56,000 - 4,807 60,807 54,803 Benefits paid (thousands of dollars)............................ 224,326 92,586 6,569 323,481 306,930 -----------------------------------------------------------------------------------------------------------------------------
1 Judges is open to new membership, all other plans are closed. 2 Contribution rate varies based on age upon joining the plan. The assumptions used to determine the actuarial value of the accrued benefit obligation and pension fund assets for TSP and PSSP are as follows: ------------------------------------------------------------------------------ TSP PSSP --------------------- Rate of compensation increase............................ 3.5% 3% Expected long-term rate of return on plan assets......... 7.5% N/A Discount rate............................................ 7.5% 6.25% Inflation rate........................................... 3% 3% ------------------------------------------------------------------------------ Based on the latest actuarial valuation, extrapolated to March 31, 2002, the present value of accrued pension benefits and the market related value of pension fund assets are shown in the table below:
(thousands of dollars) ------------------------------------------------------------------------------------------------------------------ 2002 2001 ------------------------- -------------- ---------- ---------- ---------- ------------ ----------- ----------- Actuarial Accrued Pension Unamortized Valuation Benefit Fund Net Estimation Pension Pension Plan Name Date Obligation Assets Obligation Adjustments(1) Liabilities Liabilities ------------------------- -------------- ---------- ---------- ---------- ------------ ----------- ----------- TSP2..................... Jun. 30/01 $3,682,000 $1,802,000 $1,880,000 $ 658,408 $ 2,538,408 $ 2,561,028 PSSP.................... Sept. 30/99 1,524,110 - 1,524,110 (183,174) 1,340,936 1,284,808 Others.................. Various 218,224 136,163 82,061 (8,922) 73,139 66,811 Total $5,424,334 $1,938,163 $3,486,171 $ 466,312 $ 3,952,483 $ 3,912,647 ========================= ============== ========== ========== ========== ============ =========== ===========
1 Amortized to income over 1 to 13 years the estimated average remaining service life of active plan members at the time the estimation adjustment arises. The net estimation adjustment gains during the year totalled $245.8 million. 2 The TSP accrued benefit obligation includes a liability of $78 million (2001 - $67.0 million) relating to the TSP disability provision. At March 31, 2002 the market value of plan investments was $1.9 billion (2001 - $2.0 billion). Of this amount, 43.7 per cent (2001 - 42.4 per cent), was invested in fixed income securities and 50.7 per cent (2001 - 52.7 per cent) in equity investments. The TSP's actual rate of return on plan assets was 4.9 per cent (2001 - 4.5 per cent). DEFINED CONTRIBUTION PENSION PLANS Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. The Government sponsors the Public Employees Pension Plan (PEPP), a multi-employer defined contribution pension plan. Employers are required to match employee current service contributions to this plan. The General Revenue Fund has fully funded its share. The General Revenue Fund also contributes to the Saskatchewan Teachers' Retirement Plan (STRP), sponsored by the Saskatchewan Teachers' Federation. General Revenue Fund 21 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS Information on the defined contribution pension plans to which the General Revenue Fund contributes follows:
2002 2001 --------------------------------------- PEPP STRP Total Total ---------------------------------------------------------------------------------------------- Plan status........................................... open n/a n/a n/a Member contribution rate, percentage of salary........ 5 - 5.75(1) n/a n/a n/a Employer contribution rate, percentage of salary...... 5 - 5.75(1) n/a n/a n/a Number of active members, all employers............... 29,207 n/a 29,207 27,888 GENERAL REVENUE FUND PARTICIPATION: Number of active members.............................. 14,560 n/a 14,560 14,303 Number of inactive members............................ 6,732 n/a 6,732 6,054 Member contributions (thousands of dollars)........... $ 25,501 n/a $ 25,501 $ 24,065 Government contributions (thousands of dollars)....... 25,637 $ 25,644 51,281 47,607 ----------------------------------------------------------------------------------------------
1 Contribution rate varies based on employee group. PENSION EXPENDITURE Pensions are accounted for on a cash basis. The pension liabilities are not recorded in the financial statements. (thousands of dollars) ------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------- Defined benefit plans........................ $ 147,115 $ 140,535 Defined contribution pension plans........... 51,281 47,607 ------------------------------------------------------------------------- Total pension expenditure.................... $ 198,396 $ 188,142 ------------------------------------------------------------------------- 8. RESERVES The accumulated deficit of $7,009.8 million consists of an unallocated deficit component of $7,021.7 million and the Environmental Protection Reserve of $11.9 million. The Environmental Protection Reserve was created to provide contingency funding to mitigate unforeseen environmental problems related to uranium milling. The reserve is maintained at its March 31, 1992 balance. 9. DEBT SERVICING COSTS (thousands of dollars) --------------------------------------------------------------------------- 2002 2001 --------------------------------------------------------------------------- Total interest costs .......................... $ 911,470 $ 1,020,168 Less interest reimbursed from Crown corporations and others...................... (319,507) (378,116) Other costs.................................... 24,848 22,040 --------------------------------------------------------------------------- Total Debt Servicing Costs $ 616,811 $ 664,092 --------------------------------------------------------------------------- 10. OPERATING EXPENDITURE BY FUNCTION AND BY OBJECT Operating expenditure by function is reported as follows: (thousands of dollars) ------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------- Agriculture........................................... $ 401,154 $ 219,235 Community development................................. 167,418 147,507 Economic development.................................. 109,899 115,000 Education............................................. 1,089,924 1,069,811 Environment and natural resources..................... 177,213 132,766 Health................................................ 2,199,753 2,075,650 Protection of persons and property.................... 244,762 240,299 Social services and assistance........................ 686,970 683,648 Transportation........................................ 336,628 299,199 Other................................................. 307,444 273,705 ------------------------------------------------------------------------------- Total Operating Expenditure........................... $5,721,165 $ 5,256,820 ------------------------------------------------------------------------------- Operating expenditure by object is reported as follows: (thousands of dollars) --------------------------------------------------------------------------- 2002 2001 --------------------------------------------------------------------------- Personal services............................. $ 514,460 $ 478,425 Travel........................................ 37,291 35,172 Transfers: Government entities.......................... 2,080,135 1,849,311 Other........................................ 2,383,798 2,236,593 Supplier payments............................. 510,067 471,030 Other......................................... 195,414 186,289 --------------------------------------------------------------------------- Total Operating Expenditure................... $ 5,721,165 $ 5,256,820 --------------------------------------------------------------------------- 22 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS ============================================================================= 11. CONTINGENCIES A) GUARANTEED DEBT At March 31, 2002, $260.8 million (2001 - $312.0 million) in loans were guaranteed by the Minister of Finance. Schedule 9 provides a listing of guaranteed debt. B) LAWSUITS Up to $42.5 million may be paid, depending on the outcome of lawsuits in progress. C) INDIAN AND NORTHERN AFFAIRS CANADA The Government pays for certain social services provided to status Indians and submits claims to the federal government for the cost of these services. The Government believes these costs are the responsibility of the federal government and believes they are fully reimbursable. However, the federal government denies responsibility for a portion of these costs. The Government is unable to determine whether or not the outstanding amounts will be reimbursed. The Government will account for any recovery resulting from the resolution of this contingency at the time of settlement. No provision for such a recovery has been made in these financial statements. 12. COMMITMENTS Major financial commitments include: o treaty land entitlement agreement commitments valued at approximately $67.1 million over nine years; rural municipality and school division tax loss compensation of approximately $14.0 million as land achieves reserve status over the course of the agreements; o research and development projects for new agriculture technology and opportunities in the agri-food industry, $13.1 million over five years; o Weyerhaeuser Canada Ltd. agreement for road maintenance and construction, term indefinite, five year estimate of commitment, $23.5 million; o Mistik Management agreement for road reconstruction, $1.6 million over two years; o capital grant projects, over the next three years, $90.3 million; o contracts for highway improvement, $36.8 million; o computer service agreements, $32.5 million over five years; o projects to expand innovation and enhance the competitive ability of the Saskatchewan economy, $10.0 million, over four years; and o an agreement with the Saskatchewan Medical Association for $7.8 million for recruitment, retention and continuing medical education initiatives for physicians. Included are commitments for agriculture $13.1 million, education $51.1 million, health $51.0 million, transportation $61.9 million, community development $81.1 million, economic development $10.0 million, social services and assistance $6.5 million and other $22.0 million. General Revenue Fund 23 ----------------------------------------------------------------------------- GENERAL REVENUE FUND NOTES TO THE FINANCIAL STATEMENTS 13. RELATED PARTY TRANSACTIONS Included in these financial statements are transactions with various Saskatchewan Crown corporations, agencies, boards, and commissions related to the General Revenue Fund by virtue of common control by the Government of Saskatchewan. Routine operating transactions with related parties are recorded at the rates charged by those organizations and are settled on normal trade terms. These transactions include: o payments to related parties of approximately $102.8 million (2001 - $97.6 million) to Saskatchewan Property Management Corporation and $17.3 million (2001 - $18.6 million) to Saskatchewan Telecommunications Holding Corporation; o taxation and non-renewable resource revenue received from related parties during 2001-02 of approximately $57.5 million (2001 - $56.0 million). In addition, Saskatchewan Provincial Sales Tax and Fuel Tax are received from related parties on all taxable purchases. Other transactions with related parties and amounts due to or from them are described separately in these financial statements. 14. TRUST FUNDS Trust funds are property held and administered on behalf of beneficiaries. Trust assets are not owned by the Government and the Government has no equity in the funds. Therefore, trust funds are not included in the reporting entity. Fund balances held and administered by the General Revenue Fund at March 31, 2002, were as follows: (thousands of dollars) ------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------- Superannuation funds and pension plans(1)........... $ 5,901,771 $ 5,821,892 Public Trustee's Trust Account...................... 139,542 135,357 Other trusts........................................ 37,346 35,957 ------------------------------------------------------------------------------- Total $ 6,078,659 $ 5,993,206 =============================================================================== 1 The balance reflects the latest financial statements of the funds and plans closest to March 31, 2002. 15. COMPARATIVE FIGURES Certain of the 2001 figures have been reclassified to conform with the current year presentation. With regard to expenditures, the figures are reported on the same basis as the Estimates for the prior year. 16. DEBT REDUCTION ACCOUNT This account was established pursuant to The Balanced Budget Act. The Debt Reduction Account is an accounting of the accumulated surpluses of the General Revenue Fund commencing April 1, 1995. (thousands of dollars) ---------------------------------------------------------------------------- Budget Actual ---------------------------------------------------------------------------- Debt reduction account, beginning of year..........$ 629,642 $ 629,642 Reduction in accumulated deficit for the year...... 2,776 1,098 ---------------------------------------------------------------------------- Debt Reduction Account, End of Year $ 632,418 $ 630,740 ============================================================================ 24 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements For the Year Ended March 31, 2002 Schedule 1 - Accounts Receivable (thousands of dollars) ---------------------------------------------------------------------------- 2002 2001 ---------------------------------------------------------------------------- Taxation ........................................$ 159,527 $ 146,589 Non-renewable resources.......................... 123,961 119,852 Transfers from Government entities............... 94,171 74,822 Other own-source revenue......................... 64,255 60,340 Transfers from the federal government............ 44,827 35,998 Other accounts receivable........................ 54,969 50,818 ---------------------------------------------------------------------------- 541,710 488,419 ---------------------------------------------------------------------------- Less: Provisions for losses...................... 62,307 56,007 ---------------------------------------------------------------------------- TOTAL ACCOUNTS RECEIVABLE $ 479,403 $ 432,412 ============================================================================ Accounts Receivable include $96.0 million due from related parties (2001 - $76.6 million). SCHEDULE 2 - LOANS TO CROWN CORPORATIONS (thousands of dollars) ------------------------------------------------------------------------------ 2002 2001 ------------------------------------------------------------------------------ SHORT-TERM LOANS Agricultural Credit Corporation of Saskatchewan.......$ 5,400 $ - Information Services Corporation of Saskatchewan...... 24,336 20,246 Saskatchewan Opportunities Corporation................ 35,201 32,065 Saskatchewan Water Corporation........................ 3,258 1,823 SaskEnergy Incorporated............................... 169,600 241,000 ------------------------------------------------------------------------------ TOTAL SHORT-TERM LOANS 237,795 295,134 ------------------------------------------------------------------------------
PRINCIPAL LESS SINKING OUTSTANDING FUND EQUITY ------------------------------------------------------------------------------------------------------------------------- LONG-TERM LOANS Agricultural Credit Corporation of Saskatchewan................$ 33,951 $ - 33,951 59,835 Crown Investments Corporation of Saskatchewan.................. 175,027 155,017 20,010 43,203 Information Services Corporation of Saskatchewan............... 30,000 - 30,000 - Municipal Financing Corporation of Saskatchewan................ 24,575 - 24,575 59,575 Saskatchewan Housing Corporation............................... 139,959 1,603 138,356 156,157 Saskatchewan Opportunities Corporation......................... 130,000 2,798 127,202 118,187 Saskatchewan Power Corporation................................. 2,007,664 104,458 1,903,206 1,710,159 Saskatchewan Property Management Corporation................... 5,500 - 5,500 - Saskatchewan Telecommunications Holding Corporation... 463,462 29,840 433,622 437,446 Saskatchewan Water Corporation................................. 38,984 3,294 35,690 36,780 SaskEnergy Incorporated........................................ 634,186 15,903 618,283 562,486 ------------------------------------------------------------------------------------------------------------------------- TOTAL LONG-TERM LOANS $3,683,308 $312,913 3,370,395 3,183,828 ------------------------------------------------------------------------------------------------------------------------- TOTAL LOANS TO CROWN CORPORATIONS $3,608,190 $3,478,962 ========================================================================================================================
General Revenue Fund 25 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements SCHEDULE 3 - OTHER LOANS
(thousands of dollars) ----------------------------------------------------------------------------------------------------- 2002 2001 ----------------------------------------------------------------------------------------------------- AGRICULTURE AND FOOD Agri-Food Equity Fund... .............................. $ 22,825 $ 17,825 Short-term Hog Loans................................... $ 1,361 $ 6,030 Less: Provision for Loss........................... 273 1,088 1,209 4,821 -------- -------- ECONOMIC AND CO-OPERATIVE DEVELOPMENT Economic Development Loans............................. 3,478 3,794 Less: Provision for Loss........................... 2,285 1,193 2,395 1,399 -------- -------- Hudson Bay Mining and Smelting Co. Ltd................. 2,405 2,513 Northern Economic Development.......................... 3,610 3,237 Less: Provision for Loss........................... 972 2,638 733 2,504 -------- -------- Small Business Loans Association....................... 8,172 7,941 Less: Provision for Loss........................... 1,827 6,345 1,522 6,419 -------- -------- FINANCE Treasury Advances...................................... 1,307 1,337 POST-SECONDARY EDUCATION AND SKILLS TRAINING Saskatchewan Student Aid Fund.......................... 62,790 - OTHER.................................................. 731 857 ----------------------------------------------------------------------------------------------------- TOTAL OTHER LOANS $ 101,322 $ 37,675 =====================================================================================================
26 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND SCHEDULES TO THE FINANCIAL STATEMENTS SCHEDULE 4 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (thousands of dollars) ------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------- Personal services..................................$ 49,907 $ 34,210 Travel............................................. 3,542 3,540 Transfers.......................................... 289,245 273,396 Supplier payments.................................. 56,044 73,745 Accrued interest .................................. 152,799 178,530 Transfers payable to the federal government........ 24,960 21,588 Other accounts payable and accrued liabilities..... 74,609 155,888 ------------------------------------------------------------------------- TOTAL ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $ 651,106 $ 740,897 ========================================================================= Total includes $154.5 million payable to related parties (2001 - $107.3 million) and $29.3 million payable to the federal government (2001 - $51.1 million). SCHEDULE 5 - DEPOSITS HELD
(thousands of dollars) ------------------------------------------------------------------------------------ 2002 2001 ------------------------------------------------------------------------------------ DEPOSITS HELD ON BEHALF OF GOVERNMENT ENTITIES AND OTHERS Agri-Food Equity Fund........................................$ 3,582 $ 2,278 Agri-Food Innovation Fund.................................... 10,328 14,578 Cattle Marketing Deductions Fund............................. 4,006 3,248 Crop Reinsurance Fund of Saskatchewan........................ 118,892 102,959 Extended Health Care Plans................................... 8,860 5,597 Fiscal Stabilization Fund.................................... 495,000 775,000 Fish and Wildlife Development Fund........................... 4,547 4,276 Forest Fire Contingency Fund................................. 33,995 - Liquor and Gaming Authority.................................. 32,348 12,925 Millennium Scholarship Trust Fund............................ 9,781 - New Crops Insurance Program.................................. 23,732 28,630 Public Employees Dental Fund ................................ 11,828 9,222 Public Employees Pension Plan................................ 6,279 5,714 Queen's Bench Court Accounts................................. 8,335 9,614 Saskatchewan Agricultural Stabilization Fund................. 4,721 56,242 Saskatchewan Crop Insurance Corporation...................... 166,204 262,346 Saskatchewan Grain Car Corporation........................... 13,116 11,659 Saskatchewan Health Information Network...................... 4,667 2,007 Saskatchewan Student Aid Fund ............................... 72,191 57,136 School Division Tax Loss Compensation Fund................... 3,822 3,096 Teachers' Superannuation Commission.......................... 3,876 4,171 Transportation Partnership Fund.............................. 5,339 2,973 Other........................................................ 17,705 15,111 CONDITIONAL RECEIPTS......................................... 1,838 2,363 ------------------------------------------------------------------------------------ TOTAL DEPOSITS HELD $1,064,992 $1,391,145 ====================================================================================
General Revenue Fund 27 ----------------------------------------------------------------------------- GENERAL REVENUE FUND SCHEDULES TO THE FINANCIAL STATEMENTS SCHEDULE 6 - DEBT
(thousands of dollars) ------------------------------------------------------------------------------------------------------------------------ 2002 2001 ------------------------------------------------------------ ------------- LESS PROMISSORY SINKING NOTES DEBENTURES FUNDS(1) DEBT DEBT ------------------------------------------------------------------------------------------------------------------------ CROWN CORPORATION PURPOSES Agricultural Credit Corporation of Saskatchewan................................$ 5,400 $ 33,951 $ - $ 39,351 $ 59,835 Crown Investments Corporation of Saskatchewan................................ - 175,027 155,017 20,010 43,203 Information Services Corporation of Saskatchewan................................ 24,336 30,000 - 54,336 20,246 Municipal Financing Corporation of Saskatchewan................................ - 24,575 - 24,575 59,575 Saskatchewan Housing Corporation............... - 139,959 1,603 138,356 156,157 Saskatchewan Opportunities Corporation...... 35,201 130,000 2,798 162,403 150,252 Saskatchewan Power Corporation................... - 2,007,664 104,458 1,903,206 1,710,159 Saskatchewan Property Management Corporation................................... - 5,500 - 5,500 - Saskatchewan Telecommunications Holding Corporation............................ - 463,462 29,840 433,622 437,446 Saskatchewan Water Corporation................... 3,258 38,984 3,294 38,948 38,603 SaskEnergy Incorporated.......................... 169,600 634,186 15,903 787,883 803,486 ----------------------------------------------------------------------- TOTAL CROWN CORPORATION PURPOSES 237,795 3,683,308 312,913 3,608,190 3,478,962 ------------------------------------------------------------------------------------------------------------------------ GENERAL GOVERNMENT PURPOSES 164,205 8,001,698 604,004 7,561,899 7,405,479 ------------------------------------------------------------------------------------------------------------------------ DEBT(2) $ 402,000 $ 11,685,006 $ 916,917 $11,170,089 $10,884,441 ======================================================================================================================== Debt repayable in foreign currency has been restated in Canadian dollar equivalents. 1 See Schedule 7 for information on sinking funds. 2 See Schedule 8 for information on debt by maturity.
28 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND SCHEDULES TO THE FINANCIAL STATEMENTS SCHEDULE 7 - SINKING FUNDS
(thousands of dollars) ----------------------------------------------------------------------------------------------------------------------------- 2001 2002 ----------------------------------------------------------------------------------------------------------------------------- SINKING LESS CURRENCY SINKING FUNDS CONTRIBUTIONS EARNINGS REDEMPTIONS ADJUSTMENT FUNDS ----------------------------------------------------------------------------------------------------------------------------- Crown Corporation Purposes Agricultural Credit Corporation of Saskatchewan...............................$ 7,116 $ - $ 181 $ 7,297 $ - $ - Crown Investments Corporation of Saskatchewan............................... 232,992 5,000 10,850 93,825 - 155,017 Saskatchewan Housing Corporation............. 949 585 69 - - 1,603 Saskatchewan Opportunities Corporation. 1,813 850 135 - - 2,798 Saskatchewan Power Corporation............... 87,539 9,961 6,242 - 716 104,458 Saskatchewan Telecommunications Holding Corporation........................ 24,406 3,226 1,927 - 281 29,840 Saskatchewan Water Corporation............... 2,832 302 160 - - 3,294 SaskEnergy Incorporated...................... 11,701 3,440 762 - - 15,903 ----------------------------------------------------------------------------------------------------------------------------- Total Crown Corporation Purposes 369,348 23,364 20,326 101,122 997 312,913 General Government Purposes 507,276 58,677 35,216 - 2,835 604,004 ----------------------------------------------------------------------------------------------------------------------------- Total Sinking Funds $ 876,624 $ 82,041 % 55,542 $ 101,122 $ 3,832 $ 916,917 =============================================================================================================================
The market value of sinking funds at March 31, 2002 is $912.3 million (2001 - $890.3 million). Sinking Fund earnings include gains on investment sales of $4.4 million (2001 - $7.5 million). Annual contributions, when established by Order in Council, are set at not less than one per cent of debentures outstanding. The redemption value is based on the market value of the sinking fund units at the date of redemption. The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements are:
(thousands of dollars) --------------------------------------------------------------------------------------------------------------------------------- 2003 2004 2005 2006 2007 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Contributions.................................$ 83,073 $83,073 $79,386 $69,762 $66,762 $382,056 Less recoverable from Crown corporations................................ 21,688 21,688 20,891 20,641 19,823 104,731 --------------------------------------------------------------------------------------------------------------------------------- General Government Purposes $ 61,385 $61,385 $58,495 $49,121 $46,939 $277,325 ================================================================================================================================= Sinking Fund assets are as follows: (thousands of dollars) --------------------------------------------------------------------------------------------------------------------------------- 2002 2001 --------------------------------------------------------------------------------------------------------------------------------- Long-term Investments Province of Saskatchewan securities, coupon interest range, 4.75% to 10.25%; range of term to maturity, 1.3 to 29.4 years...........................................................................$312,711 $370,036 Government of Canada securities, coupon interest range, 5.0% to 7.25%; range of term to maturity, 1.5 to 27.2 years........................................................................... 226,235 43,291 Other provincial governments' securities, coupon interest range, 5.25% to 10.50%; range of term to maturity, 4.0 to 37.3 years................................................................... 275,749 275,634 Government of the United States securities, coupon interest range, 3.5% to 8.875%; range of term to maturity, 4.6 to 28.9 years.................................................................. 47,628 17,558 Other................................................................................................... - 12,951 Cash, short term investments and accrued interest ........................................................ 54,594 157,154 --------------------------------------------------------------------------------------------------------------------------------- TOTAL SINKING FUNDS $916,917 $876,624 ==================================================================================================================================
Short term investments include $0 million (2001 - $135.7 million) Province of Saskatchewan securities. Cash, short term investments and accrued interest are disclosed net of $2.0 million in liabilities (2001 - $7.9 million). Included are U.S. dollar cash, investments and accrued interest converted to $337.6 million Canadian (2001 - $289.6 million) at the exchange rate in effect at March 31, 2002, 1.5935 (March 31, 2001, 1.5774). General Revenue Fund 29 ----------------------------------------------------------------------------- GENERAL REVENUE FUND SCHEDULES TO THE FINANCIAL STATEMENTS SCHEDULE 8 - DEBT BY MATURITY
(thousands of dollars) ------------------------------------------------------------------------------------------------------------------------ 2002 2001 --------------------------------------------------------- -------------------------- CANADIAN U. S. DOLLAR AVERAGE Average YEAR OF DOLLAR DEBT TOTAL COUPON Total Coupon MATURITY DEBT (CDN $) (CDN $) RATE (CDN $) Rate ------------------------------------------------------------------------------------------ -------------------------- Short-term promissory notes $ 402,000 $ - $ 402,000 2.26% $ 633,100 5.01% 2001-02........................... - - - 777,985 8.82% 2002-03........................... 390,601 - 390,601 10.25% 396,350 10.18% 2003-04........................... 456,433 79,675 536,108 8.07% 538,841 8.06% 2004-05........................... 1,319,447 - 1,319,447 8.99% 1,325,744 8.97% 2005-06........................... 950,375 - 950,375 6.93% 903,928 7.05% 2006 - 07......................... 1,247,668 - 1,247,668 6.22% - - --------------------------------------------- ------------- ------------- ------------- 1 - 5 YEARS 4,766,524 79,675 4,846,199 4,575,948 6-10 years........................ 2,501,115 309,139 2,810,254 7.14% 3,133,454 7.26% 11-15 years....................... 947,115 796,750 1,743,865 8.63% 1,826,032 8.70% 16-20 years....................... 376,888 796,750 1,173,638 9.05% 912,411 8.90% 21-25 years....................... 175,000 478,050 653,050 8.57% 903,220 8.86% 26-30 years....................... 860,000 - 860,000 6.09% 410,000 5.64% --------------------------------------------- ------------- ------------- ------------- 9,626,642 2,460,364 12,087,006 11,761,065 Less: Sinking funds 579,334 337,583 916,917 876,624 ------------------------------------------------------------------------------------------ -------------------------- DEBT 9,047,308 2,122,781 $11,170,089 $ 10,884,441 ========================================================================================================================
The average effective interest rate on debt during 2001-02 was 7.51% (2001 - 8.66%), and includes the impact of foreign exchange and the amortization of any premiums and discounts associated with the debentures. The average term to maturity of debt outstanding at March 31, 2002 is 9.22 years (2001 - 8.89 years). Debt includes Canada Pension Plan debentures of $1,219.6 million (2001 - $1,329.3 million) that are redeemable in whole or in part before maturity, on six months prior notice, at the option of the Minister of Finance of Canada. These debentures are callable in whole or in part before maturity, on 30 days prior notice, at the option of the Minister of Finance of Saskatchewan. Total debt includes $390.0 million (2001 - $310.0 million) that provides the holder with a choice of dates on which the debt matures. The year of maturity in the above table reflects the earliest possible date of maturity rather than the maximum term to maturity. SENSITIVITY OF DEBT CHARGES U.S. dollar debentures have been converted to Canadian dollars at the exchange rate in effect at March 31, 2002 of 1.5935 (2001 - 1.5774). A one cent change in the value of the U.S. dollar compared to the Canadian dollar from the March 31, 2002 level would change debt charges by $3.2 million in 2002-03. Debt includes floating rate debt of $1,746.3 million (2001 - $2,163.0 million). Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. A one percentage point increase in interest rates would increase debt servicing costs by $12.6 million in 2002-03. DERIVATIVE FINANCIAL INSTRUMENTS Cross Currency Swaps Included in debt are the following foreign denominated debt issues that have been hedged to Canadian dollars using cross currency swaps: - debentures totalling 22.5 billion yen (2001 - 22.5 billion) fully hedged to $259.2 million Canadian (2001 - $259.2 million); - debentures totalling 750.0 million U.S. dollars (2001 - 750.0 million) fully hedged to $1,037.0 million Canadian (2001 - $1,037.0 million); - debentures totalling 102.3 million euros (2001 - 102.3 million) fully hedged to $154.1 million Canadian (2001 - $154.1 million); and - debentures totalling 0 million Swiss francs (2001 - 200.0 million) fully hedged to $0 million Canadian (2001 - $145.4 million). In total, cross currency swaps on a notional value of $1,709.4 million of debt (2001 - $1,854.8 million) existed at March 31, 2002. Interest Rate Swaps Interest rate swaps on a notional value of $1,197.2 million of debt (2001 - $947.2 million) existed at March 31, 2002. Foreign Currency Forward Exchange Contracts Forward purchase commitments to acquire, during 2002-03, $3.0 million U.S. dollars (2001 - $0) at a cost of $4.8 million Canadian (2001 - $0) were in place at March 31, 2002. 30 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements SCHEDULE 9 - GUARANTEED DEBT (thousands of dollars) --------------------------------------------------------------------------- 2002 2001 --------------------------------------------------------------------------- CROWN CORPORATIONS The Municipal Financing Corporation Act Guaranteed debentures............................$ 2,500 $ 2,500 The Power Corporation Act National Trust Company........................... 10,003 12,007 Luscar Ltd....................................... 23,465 25,105 Saskatchewan Power savings bonds Series I - series VIl (matured)............... 66 100 The Saskatchewan Development Fund Act Guaranteed investments........................... 1,200 1,272 The Saskatchewan Telecommunications Act Telebonds - series I (matured)........................................... 159 164 --------------------------------------------------------------------------- TOTAL CROWN CORPORATIONS 37,393 41,148 --------------------------------------------------------------------------- OTHER The Community Bonds Act............................. 11 1,744 The Farm Financial Stability Act Breeder associations loan guarantees............. 16,224 15,970 Feeder associations loan guarantees.............. 11,839 15,560 Agricultural Income Disaster Assistance Program..... 52 53 The Government Organization Act The Saskatchewan Roughriders Football Club....... 1,660 1,260 The Housing and Special-care Homes Act Senior citizens' housing......................... 97 125 The Student Assistance and Student Aid Fund Act..... 296 314 The Industry and Commerce Development Act Saskferco Products Inc. .......................... 115,171 142,797 The NewGrade Energy Inc. Act NewGrade Energy Inc. ........................... 78,093 93,038 --------------------------------------------------------------------------- TOTAL OTHER 223,443 270,861 --------------------------------------------------------------------------- TOTAL GUARANTEED DEBT $260,836 $312,009 =========================================================================== In addition to the amount shown, there is a contingent liability for interest accrued on certain of these items. Total guaranteed debt is net of a loss provision of $1.8 million (2001 - $1.0 million). See page 31 for additional information. General Revenue Fund 31 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements SCHEDULE 9 (CONTINUED) - GUARANTEED DEBT NATIONAL TRUST COMPANY The government is contingently liable for payments on certain leased mining equipment, which was assumed by the purchaser of a mining operation. The lease expires in 2004. LUSCAR LTD. The Government has guaranteed a $45 million promissory note issued by Luscar Ltd. to finance the purchase of a dragline from Saskatchewan Power Corporation. The note is due in 2003. The amount recorded is net of $21.5 million (2001 - $19.9 million) for Luscar Ltd.'s equity in a sinking fund administered by the Minister of Finance. BREEDER AND FEEDER ASSOCIATIONS The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each cattle/bison association are limited to $5 million for the breeder or feeder option. Guarantees for each sheep association are limited to $4 million for the breeder or feeder option. SASKFERCO PRODUCTS INC. The Government has guaranteed certain medium term notes issued by Saskferco to finance the construction of a nitrogen based fertilizer plant located near Belle Plaine. This guarantee pertains to debt denominated in U.S. dollars. Thus, the amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar. The amount recorded is net of $120.7 million (2001 - $119.1 million) for Saskferco's equity in a sinking fund. NEWGRADE ENERGY INC. (NEWGRADE) The Government has guaranteed certain long-term debt of NewGrade to a maximum of $360 million. A significant portion of this guarantee relates to U.S. dollar denominated debt. Thus, the amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar. 32 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND SCHEDULES TO THE FINANCIAL STATEMENTS SCHEDULE 10 - REVENUE
(thousands of dollars) ----------------------------------------------------------------------------------------------------- Budget ACTUAL Actual 2002 2002 2001 ----------------------------------------------------------------------------------------------------- TAXATION Corporation capital.................................... 367,700 $ 363,204 $ 342,242 Corporation income..................................... 273,100 145,338 333,299 Fuel................................................... 367,700 353,765 345,136 Individual income...................................... 1,184,900 1,196,410 1,255,409 Sales.................................................. 795,500 770,984 736,563 Tobacco................................................ 124,600 120,049 122,012 Other ................................................. 65,000 72,429 67,573 ----------------------------------------------------------------------------------------------------- Total Taxes 3,178,500 3,022,179 3,202,234 ----------------------------------------------------------------------------------------------------- NON-RENEWABLE RESOURCES Natural gas............................................ 167,900 129,067 239,305 Oil.................................................... 511,500 555,337 799,049 Potash................................................. 160,900 179,658 199,296 Other.................................................. 37,000 38,982 55,064 ----------------------------------------------------------------------------------------------------- Total Non-renewable Resources 877,300 903,044 1,292,714 ----------------------------------------------------------------------------------------------------- TRANSFERS FROM GOVERNMENT ENTITIES Crown Investments Corporation of Saskatchewan.......... 200,000 200,000 - Liquor and Gaming Authority - Net Income .............. 312,700 315,710 316,412 Liquor and Gaming Authority - Retained Earnings........ - - 699,800 Other enterprises and funds............................ 45,000 45,627 39,175 ----------------------------------------------------------------------------------------------------- Total Transfers from Government Entities 557,700 561,337 1,055,387 ----------------------------------------------------------------------------------------------------- OTHER OWN-SOURCE REVENUE Fines, forfeits, and penalties......................... 14,100 14,331 12,732 Interest, premium, discount, and exchange.............. 47,300 40,684 55,458 Motor vehicle fees..................................... 112,700 117,898 113,844 Other licences and permits............................. 47,500 41,100 42,011 Sales, services, and service fees...................... 69,200 75,094 73,735 Transfers from other governments....................... 17,500 15,790 15,970 Other.................................................. 12,100 30,531 17,354 ----------------------------------------------------------------------------------------------------- Total Other Own-source Revenue 320,400 335,428 331,104 ----------------------------------------------------------------------------------------------------- TOTAL OWN-SOURCE REVENUE 4,933,900 4,821,988 5,881,439 ----------------------------------------------------------------------------------------------------- TRANSFERS FROM THE FEDERAL GOVERNMENT Canada Health and Social Transfer...................... 594,000 608,908 552,378 Equalization ......................................... 377,000 492,017 175,247 Other ................................................. 136,800 136,161 144,539 ----------------------------------------------------------------------------------------------------- TOTAL TRANSFERS FROM THE FEDERAL GOVERNMENT 1,107,800 1,237,086 872,164 ----------------------------------------------------------------------------------------------------- TOTAL REVENUE $6,041,700 $6,059,074 $6,753,603 =====================================================================================================
General Revenue Fund 33 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements
SCHEDULE 11 - LOSS ON LOANS AND INVESTMENTS (thousands of dollars) ------------------------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------------------------- Other loans........................................................$ (356) $ (779) Loss on sale of land............................................... 60 - ------------------------------------------------------------------------------------------------- TOTAL LOSS ON LOANS AND INVESTMENTS (296) $ (779) ================================================================================================= SCHEDULE 12 - NET CHANGE IN NON-CASH OPERATING ACTIVITIES (thousands of dollars) ------------------------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------------------------- (Increase) Decrease in prepaid expenditures........................ (994) $ 48 (Increase) in accounts receivable.................................. (46,991) (37,070) Decrease (Increase) in deferred charges............................ 9,871 (23,910) (Decrease) in accounts payable and accrued liabilities............. (89,791) (43,352) Increase in unearned revenue....................................... 1,021 2,714 ------------------------------------------------------------------------------------------------- NET CHANGE IN NON-CASH OPERATING ACTIVITIES (126,884) $(101,570) =================================================================================================
34 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Schedules to the Financial Statements SCHEDULE 13 - INVESTING ACTIVITIES
(thousands of dollars) --------------------------------------------------------------------------------------------------------- 2002 2001 RECEIPTS DISBURSEMENTS Receipts Disbursements --------------------------------------------------------------------------------------------------------- LOANS Agricultural Credit Corporation of Saskatchewan.........$ 33,000 $ 5,400 $ 168,600 $ - Crown Investments Corporation of Saskatchewan........... 101,168 - - - Information Services Corporation of Saskatchewan........ - 34,090 - 13,316 Municipal Financing Corporation of Saskatchewan......... 35,000 - 27,916 - Saskatchewan Housing Corporation........................ 41,647 24,500 27,603 10,336 Saskatchewan Opportunities Corporation.................. - 13,136 - 25,359 Saskatchewan Power Corporation.......................... - 200,000 54,703 - Saskatchewan Property Management Corporation............ - 5,500 - - Saskatchewan Telecommunications Holding Corporation..... - - 89,693 90,000 Saskatchewan Water Corporation.......................... 628 1,435 17,355 - SaskEnergy Incorporated................................. 71,401 60,000 272,934 341,271 Other................................................... 13,173 76,464 13,198 15,032 -------------------------------------------------------------------------------------------------------- TOTAL LOAN RECEIPTS AND DISBURSEMENTS 296,017 420,525 672,002 495,314 -------------------------------------------------------------------------------------------------------- SINKING FUNDS CONTRIBUTIONS 23,364 82,041 24,583 77,252 -------------------------------------------------------------------------------------------------------- OTHER Equity Investment in Crown Investments Corporation of Saskatchewan 120,000 - - - Other 1,253 30 1,357 71 -------------------------------------------------------------------------------------------------------- TOTAL OTHER RECEIPTS AND DISBURSEMENTS 121,253 30 1,357 71 -------------------------------------------------------------------------------------------------------- TOTAL RECEIPTS AND DISBURSEMENTS 440,634 502,596 697,942 572,637 -------------------------------------------------------------------------------------------------------- NET (DISBURSEMENTS) RECEIPTS $ (61,962) $ 125,305 ========================================================================================================
FISCAL STABILIZATION FUND (UNAUDITED) This page left blank intentionally Fiscal Stabilization Fund 37 ----------------------------------------------------------------------------- FISCAL STABILIZATION FUND SCHEDULE OF TRANSFERS AND ACCUMULATED BALANCE For the Year Ended March 31, 2002 (unaudited) (thousands of dollars) ------------------------------------------------------------------------------- Budget ACTUAL Actual 2002 2002 2001 ------------------------------------------------------------------------------- Balance, beginning of year......................$775,000 $775,000 $ - Transfer (to) from the General Revenue Fund.....(263,700) (280,000) 775,000 ------------------------------------------------------------------------------- BALANCE, END OF YEAR $511,300 $495,000 $775,000 =============================================================================== The Fiscal Stabilization Fund (Fund) was established April 1, 2000, by The Fiscal Stabilization Fund Act. Its purpose is to stabilize the fiscal position of the Government to facilitate long-term planning. Stabilization occurs through transfers between the Fund and the General Revenue Fund (GRF), as approved from time to time by Treasury Board. Transfers to the Fund from the GRF are statutory disbursements. Amounts transferred to the GRF from the Fund are available for expenditure subsequent to receiving required approval from the Legislative Assembly. This page left blank intentionally SUMMARY FINANCIAL STATEMENTS This page left blank intentionally Summary Financial Statements 41 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN RESPONSIBILITY FOR SUMMARY FINANCIAL STATEMENTS The Government is responsible for the Summary Financial Statements. The Government maintains a system of accounting and administrative controls to ensure that accurate and reliable financial statements are prepared and to get reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained. The Provincial Comptroller prepares these statements following the Government's stated accounting policies and using the Government's best estimates and judgement when appropriate. He uses information from the accounts of the General Revenue Fund, Crown corporations, agencies, and other funds to prepare these statements. The Provincial Auditor expresses an independent opinion on these statements. His report states the scope of his audit and opinion and appears on the following page. Treasury Board approves the Summary Financial Statements. The Minister of Finance tables the statements in the Legislative Assembly as part of the Public Accounts. The Legislative Assembly refers the Public Accounts to the Standing Committee on Public Accounts for review. On behalf of the Government of the Province of Saskatchewan. Eric Cline Minister of Finance Ron Styles Deputy Minister of Finance Terry Paton Provincial Comptroller Regina, Saskatchewan June 2002 This page left blank intentionally Summary Financial Statements 43 ----------------------------------------------------------------------------- AUDITOR'S REPORT To the Members of the Legislative Assembly of Saskatchewan I have audited the summary statement of financial assets, liabilities, and accumulated deficit of the Government of Saskatchewan as at March 31, 2002 and the summary statements of revenue, expenditure, and accumulated deficit and cash flow for the year then ended. These financial statements are the responsibility of Treasury Board. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In my opinion, these summary financial statements present fairly, in all material respects, the financial position of the Government of Saskatchewan as at March 31, 2002 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles for governments. Regina, Saskatchewan Fred Wendel, CMA, CA June 4, 2002 Provincial Auditor This page left blank intentionally Summary Financial Statements 45 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SUMMARY STATEMENT OF FINANCIAL ASSETS, LIABILITIES, AND ACCUMULATED DEFICIT As at March 31, 2002
(thousands of dollars) -------------------------------------------------------------------------------------- 2002 2001 Schedule (Restated) -------------------------------------------------------------------------------------- FINANCIAL ASSETS Cash and temporary investments (note 2)................$ 673,326 $ 884,053 Prepaid expenditures................................... 27,128 23,387 1 Accounts receivable.................................... 708,155 660,989 Inventories held for resale............................ 6,534 6,587 Land held for resale (note 3).......................... 124,231 128,894 Deferred charges....................................... 58,528 65,947 Deferred foreign exchange loss......................... 227,577 234,326 2 Loans and mortgages receivable......................... 112,176 142,229 3 Investment in government enterprises................... 2,247,746 2,280,313 4 Other investments...................................... 640,957 722,849 -------------------------------------------------------------------------------------- TOTAL FINANCIAL ASSETS 4,826,358 5,149,574 -------------------------------------------------------------------------------------- LIABILITIES 5 Accounts payable and accrued liabilities.......... 1,085,525 1,156,684 6 Other liabilities................................. 99,049 60,404 Unearned revenue.................................. 229,675 212,378 7,8 & 9 Public debt (note 6).............................. 8,167,690 8,032,557 Pension liabilities (note 7)...................... 3,952,483 3,912,647 -------------------------------------------------------------------------------------- TOTAL LIABILITIES 13,534,422 13,374,670 -------------------------------------------------------------------------------------- ACCUMULATED DEFICIT $(8,708,064) $ (8,225,096) ====================================================================================== (See accompanying notes) Tangible capital assets (note 4) Contingencies and commitments (notes 12 and 13) 10 Guaranteed debt
46 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SUMMARY STATEMENT OF REVENUE, EXPENDITURE, AND ACCUMULATED DEFICIT For the Year Ended March 31, 2002
(thousands of dollars) -------------------------------------------------------------------------------------------------- 2002 2001 Schedule (Restated) -------------------------------------------------------------------------------------------------- REVENUE 11 Taxation................................................$ 3,023,328 $3,203,256 11 Non-renewable resources................................. 903,044 1,292,714 11 Other own-source revenue................................ 1,070,147 923,743 11 Transfers from the federal government................... 1,517,880 1,028,823 -------------------------------------------------------------------------------------------------- TOTAL REVENUE 6,514,399 6,448,536 -------------------------------------------------------------------------------------------------- EXPENDITURE Agriculture.............................................. 837,288 321,524 Community development.................................... 203,769 176,106 Debt charges (note 9).................................... 890,784 947,229 Economic development..................................... 140,963 150,793 Education................................................ 987,197 1,018,884 Environment and natural resources ....................... 156,393 148,558 Health................................................... 2,423,522 2,223,259 Protection of persons and property....................... 298,852 265,584 Social services and assistance........................... 783,623 782,481 Transportation........................................... 337,282 302,904 Other.................................................... 363,755 292,401 -------------------------------------------------------------------------------------------------- TOTAL EXPENDITURE (NOTE 10) 7,423,428 6,629,723 -------------------------------------------------------------------------------------------------- Deficit from government service organizations............ (909,029) (181,187) 3 Income from government enterprises....................... 426,061 642,386 -------------------------------------------------------------------------------------------------- (DEFICIT) SURPLUS............................................. (482,968) 461,199 Accumulated deficit, beginning of year, as restated (note 15)....(8,225,096) (8,686,295) -------------------------------------------------------------------------------------------------- ACCUMULATED DEFICIT, END OF YEAR (NOTE 8) $(8,708,064) $(8,225,096) ================================================================================================== (See accompanying notes)
Summary Financial Statements 47 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SUMMARY STATEMENT OF CASH FLOW For the Year Ended March 31, 2002
(thousands of dollars) ----------------------------------------------------------------------------------------------------- 2002 2001 Schedule (Restated) ----------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES (Deficit) Surplus for the year...................................$ (482,968) $ 461,199 Add (deduct) non-cash items 3 Income from government enterprises............................ (426,061) (642,386) Amortization of foreign exchange gains and losses............. 17,196 14,095 12 Gain on other investments..................................... (114,396) (69,950) (Reduction of) provision for loan/mortgage losses............. (7,232) 2,513 Dividends received from other investments........................ 1,255 761 3 Dividends received from government enterprises................... 458,628 1,261,281 13 Net change in non-cash operating activities...................... (97,297) (163,504) ----------------------------------------------------------------------------------------------------- CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES (650,875) 864,009 ----------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Disposal of land held for resale ................................. 4,663 2,086 Net decrease in loans and mortgages receivable.................... 37,285 14,937 Acquisition of other investments.................................. (61,062) (87,053) Disposition of other investments.................................. 256,096 75,525 ----------------------------------------------------------------------------------------------------- CASH PROVIDED BY INVESTING ACTIVITIES 236,982 5,495 ----------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from public debt......................................... 977,510 1,423,242 Repayment of public debt.......................................... (852,825) (1,653,850) Increase (decrease) in pension and other liabilities.............. 78,481 (549,530) ----------------------------------------------------------------------------------------------------- CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 203,166 (780,138) ----------------------------------------------------------------------------------------------------- (Decrease) increase in cash and temporary investments .................... (210,727) 89,366 Cash and temporary investments, beginning of year......................... 884,053 794,687 ----------------------------------------------------------------------------------------------------- CASH AND TEMPORARY INVESTMENTS, END OF YEAR $ 673,326 $ 884,053 ===================================================================================================== (See accompanying notes)
48 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS For the Year Ended March 31, 2002 1. SIGNIFICANT ACCOUNTING POLICIES These Summary Financial Statements are prepared in accordance with generally accepted accounting principles for senior governments, as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. The significant accounting policies are summarized below. a) REPORTING ENTITY These financial statements report the financial activities of organizations which are accountable for the administration of their financial affairs and resources either to a Minister of the Government or directly to the Legislative Assembly and which are owned or controlled by the Government. Trusts administered by the Government are excluded from the reporting entity. A listing of organizations included in the reporting entity is provided in schedule 14. Unless otherwise noted, the financial activities of all subsidiaries of these organizations have also been included. b) METHOD OF CONSOLIDATION The accounts of all government organizations, except those designated as government enterprises, are consolidated after adjustment to a basis consistent with the accounting policies described in note 1(c). These organizations are referred to as government service organizations. Significant inter-organization accounts and transactions are eliminated. Government enterprises are defined as self-sufficient organizations that have the financial and operating authority to sell goods and services to individuals and non-government organizations as their principal activity. Government enterprises are recorded using the modified equity method. The Government's investment in government enterprises, which is initially recorded at cost, is adjusted annually to include the net earnings/losses and other net equity changes of the enterprise without adjustment to conform with the accounting policies described in note 1(c). With the exception of dividends declared by March 31, inter-organization accounts and transactions are not eliminated. Financial results of government organizations whose fiscal year-ends are not March 31 are adjusted for transactions having a significant impact on the consolidated operating results. c) BASIS OF ACCOUNTING The accrual basis of accounting is used and specifically expressed as follows: REVENUE Revenues are recorded on the accrual basis except for receipts from the federal government for corporate and personal income taxes, which are recorded on the cash basis. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met. EXPENDITURE Expenditures are recorded on the accrual basis and include the cost of tangible capital assets and inventories of supplies acquired during the year. Government transfers are recognized as expenditures in the period during which the transfer is authorized and any eligibility criteria are met. ASSETS Financial assets are those assets on hand at the end of an accounting period which could provide resources to discharge existing liabilities or finance future operations. TEMPORARY INVESTMENTS are recorded at cost which approximates market value. INVENTORIES HELD FOR RESALE are recorded at the lower of cost and net realizable value. INVENTORIES OF SUPPLIES are recorded as an expenditure in the period acquired. LAND HELD FOR RESALE is valued at the lower of cost or net realizable value, on an aggregate basis. DEFERRED CHARGES include issue costs and net discounts or premiums incurred on the issue of public debt. They are recorded at cost and amortized on a straight-line basis over the remaining life of the debt issue. DEFERRED FOREIGN EXCHANGE LOSS includes net unrealized foreign exchange gains and losses resulting from the conversion of debentures due and sinking funds held in a foreign currency to the Canadian dollar equivalent at the exchange rate in effect at March 31. Realized foreign exchange gains and losses are included in the surplus or deficit for the year. Unrealized foreign exchange gains and losses are amortized on a straight-line basis over the remaining life of the debt issue. Summary Financial Statements 49 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS LOANS AND MORTGAGES RECEIVABLE are initially recorded at cost. Where there has been a loss in value that is other than a temporary decline, the loan or mortgage is written down to recognize the loss. Interest is recognized on the accrual basis except where collection is uncertain. Interest is then recorded on the cash basis. OTHER INVESTMENTS are made up of: equity investments; portfolio investments; bonds, debentures and other advances; and property holdings. Equity investments include government business partnerships. Other investments are accounted for by various methods as described below and are written down to their fair value when there is evidence of a permanent decline in value. Equity investments exist when the Government holds shares of private or public companies and exercises significant influence but has less than a controlling interest or when the Government has shared control, as in government business partnerships. These investments are accounted for by the modified equity method. Using this method, the carrying value of the investment is adjusted for the Government's share of the investee's net earnings or losses and is reduced by dividends and partnership distributions received from these investments. Government business partnerships are equity investments where there is a contractual arrangement between the Government and one or more partners outside the reporting entity and where these partners share, on an equitable basis, the significant risks and benefits associated with operating the partnership. These partnerships are self-sufficient organizations that have the financial and operating authority to sell goods and services to individuals and non-government organizations as their principal activity. Government business partnerships are recorded using the modified equity method. Portfolio investments exist when the Government holds shares of private or public companies and the Government does not exercise significant influence. Portfolio investments are recorded at cost, and dividends from these shares are recorded as income when receivable. Bonds, debentures and other advances are recorded at amortized cost. TANGIBLE CAPITAL ASSETS held by government service organizations are recorded as an expenditure in the period acquired. Capital assets held by government enterprises, as disclosed in schedule 3, are generally recorded at cost and amortized on a straight-line basis over the estimated productive life of each asset. LIABILITIES Reported liabilities include obligations to outside organizations and individuals as a result of transactions and events occurring prior to year-end. They are the result of financial obligations to repay borrowing or to pay for goods and services acquired prior to year-end and of revenue, where goods or services will be delivered in the future. UNEARNED REVENUE is revenue that will be earned in a subsequent fiscal year and includes: revenue for Crown mineral leases; fees, permits and licences; and restricted funding from the federal government and other organizations. PUBLIC DEBT consists of promissory notes, debentures and bank indebtedness of government service organizations which are recorded net of amounts reimbursable from government enterprises. Total public debt includes public debt and debt of government enterprises, as disclosed in schedule 3. Public debt is recorded at par. Premiums, discounts and issue costs are recorded as deferred charges and are amortized on a straight-line basis over the remaining life of the debt issue. Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. Premiums and discounts on long-term investments within these sinking funds are amortized by the type of security on a constant yield basis. Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. PENSION LIABILITIES are calculated using the projected benefit method prorated on services. Pension fund assets are valued at market related values. Changes in the pension liabilities as a result of estimation adjustments due to experience gains and losses and changes in actuarial assumptions are amortized on a straight-line basis over the expected average remaining service life of the related employee group. Gains or losses as a result of plan amendments are recognized in the period of the plan amendment. GUARANTEED DEBT includes guarantees of the Government made through specific agreements or legislation to repay promissory notes, bank loans, lines of credit, mortgages and other securities. Loss provisions on guaranteed debt are recorded when it is likely that a loss will occur. The amount of the loss provision represents the Government's best estimate of future payments less recoveries. The loss provision is recorded as a liability and an expenditure in the year determined and is adjusted as necessary to ensure it equals the expected payout of the guarantee. 50 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS 2. CASH AND TEMPORARY INVESTMENTS Temporary investments are generally for less than 30 days and have an average effective interest rate of 2.02 per cent. 3. LAND HELD FOR RESALE The estimated net realizable value of the Government's land held for resale at March 31, 2002 is $209.8 million (2001 - $218.4 million). 4. TANGIBLE CAPITAL ASSETS The Government has a significant investment in tangible capital assets that have a useful life of greater than one year. These assets are a key component in the delivery of government programs and provide on-going value to the public. For government service organizations, tangible capital assets are recorded as an expenditure in the period acquired and are not included in the Statement of Financial Assets, Liabilities, and Accumulated Deficit. In the current year, government service organizations acquired tangible capital assets in the amount of $344.6 million (2001 restated - $294.6 million). The following table includes the tangible capital assets held by government service organizations and does not include assets acquired by right or heritage assets. These assets are disclosed at cost and are generally amortized on a straight-line basis over the estimated useful life of the asset.
(thousands of dollars) ----------------------------------------------------------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------------------- ----------- Infra- Machinery & Capital Total Land structure(1) Buildings Equipment Vehicles Leases Other(2) Total (Restated) ----------------------------------------------------------------------------------------------------------------------- ----------- Indefinite 15 years - 3 - 50 2 - 40 2-20 1 - 50 Estimated useful life Indefinite years years years Varies years ----------------------------------------------------------------------------------------------------------------------- ----------- Opening cost................ $77,920 $2,803,896 $2,224,791 $795,175 $70,975 $69,495 $232,119 $6,274,371 $6,072,417 Reclassification(3)......... 7 - 50,002 2,752 109 (50) (52,820) - - Additions................... 1,277 133,051 48,139 64,513 7,517 3,952 86,107 344,556 294,605 Write-downs................. - - (29,396) (1,263) (21) - (417) (31,097) (39,828) Disposals................... (1,585) (28,280) (6,539) (21,840) (7,383) (2,700) (1,873) (70,200) (52,823) ----------------------------------------------------------------------------------------------------------------------- ----------- Closing cost................ 77,619 2,908,667 2,286,997 839,337 71,197 70,697 263,116 6,517,630 6,274,371 ----------------------------------------------------------------------------------------------------------------------- ----------- Opening accumulated amortization............. - 1,272,050 735,780 543,117 43,152 43,419 69,904 2,707,422 2,539,274 Reclassification(3)......... - - 289 (852) 85 (128) 606 - - Annual amortization......... - 79,653 74,687 59,724 5,330 3,922 17,353 240,669 247,785 Write-downs................. - - (15,896) (345) - - (1) (16,242) (32,728) Disposals................... - (28,280) (5,879) (19,497) (5,551) (2,687) (1,587) (63,481) (46,909) ----------------------------------------------------------------------------------------------------------------------- ----------- Closing accumulated amortization............. - 1,323,423 788,981 582,147 43,016 44,526 86,275 2,868,368 2,707,422 ----------------------------------------------------------------------------------------------------------------------- ----------- Net Book Value of Tangible $77,619 $1,585,244 $1,498,016 $257,190 $28,181 $26,171 $176,841 $3,649,262 $3,566,949 Capital Assets........... ======================================================================================================================= ===========
1 The value of infrastructure, which consists of highways, bridges, and water control and irrigation projects, is disclosed for the first time in 2001-02. Accordingly, the March 2001 figures have been restated to include these assets (net book value $1,531.8 million). 2 Includes construction in progress, computer software, furniture and office equipment, aircraft and other tangible capital assets. 3 Includes the reclassification of construction in progress completed during the period. 5. MEASUREMENT UNCERTAINTY Uncertainty in the determination of the amount at which an item is recognized in financial statements is known as measurement uncertainty. Such uncertainty exists when there is a variance between the recognized amount and another reasonably possible amount. Measurement uncertainty exists in these financial statements in the accrual of pension obligations, non-renewable resources royalties, site restoration obligations, accident claims obligations and the federal government's Equalization and Canada Health and Social Transfer payments, and in the valuation of loans where repayment is contingent upon an organization's cash flows. The uncertainty arises from factors such as the effect on accrued pension obligations of actual experience compared to actuarial estimations and assumptions; the effect on accrued royalties of price and production sensitivities in the royalty structures; the effect on site restoration obligations of actual experience compared to historical estimations and assumptions; the effect on accrued accident claims obligations of actual experience compared to actuarial estimations and assumptions; the effect on transfers from the federal government of changes in economic and demographic conditions in the Province and the country; and the effect of commodity prices on cash flows. Management considers that it is reasonably possible that changes in future conditions, in the near term occurring within one fiscal year, could require a material change in the amounts recognized. Summary Financial Statements 51 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS 6. RISK MANAGEMENT OF PUBLIC DEBT The Government borrows funds in both domestic and foreign capital markets by issuing Government of Saskatchewan securities. As a result of these transactions, the Government is exposed to four types of risk: interest rate risk, foreign exchange rate risk, credit risk and liquidity risk. To manage these risks, the Government maintains a preference for fixed rate Canadian dollar denominated debt. Where market conditions dictate that other forms of debt are more attractive, the Government seeks opportunities to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract whose value is based on the value of another asset or index. INTEREST RATE RISK is the risk that the Government's debt charges will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominantly fixed rates of interest rather than at floating rates of interest. The Government seeks opportunities to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. At March 31, 2002, 85.3 per cent (2001 - 81.4 per cent) of the principal value of the Government's debt issues effectively carried a rate of interest that was fixed for greater than a one-year period. FOREIGN EXCHANGE RATE RISK is the risk that the Government's debt charges will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, the Government seeks opportunities to effectively convert it into Canadian dollar debt through the use of cross currency swaps. At March 31, 2002, 81.5 per cent (2001 - 79.6 per cent) of the principal value of the Government's debt issues was effectively denominated in Canadian dollars. CREDIT RISK is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties with good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2002, 100 per cent (2001 - 100 per cent) of the Government's counterparties held a Standard and Poor's credit rating of A or better. LIQUIDITY RISK is the risk that the Government will not be able to meet its financial commitments over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity. Schedule 9 provides more detailed information on the Government's use of derivative financial instruments. 7. RETIREMENT BENEFITS The Government sponsors several defined benefit and defined contribution pension plans. PENSION LIABILITIES DEFINED BENEFIT PENSION PLANS provide benefits based on length of service and pensionable earnings. A typical defined benefit pension plan provides pensions equal to 2 per cent of a member's average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their pension plan. Pensions and contribution rates are integrated with the Canada Pension Plan. Actuarial valuations are performed at least triennially. These valuations are extrapolated by an actuary when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long- term rates and short-term forecasts. Estimates vary based on the individual plan. The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. DEFINED CONTRIBUTION PLANS provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. The Government matches employee current service contributions. Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans. a) GOVERNMENT SERVICE ORGANIZATIONS DEFINED BENEFIT PENSION PLANS The two main plans of government service organizations are the Teachers' Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Members of the Legislative Assembly Superannuation Plan (MLA), Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan, Anti-TB League Employees Superannuation Plan and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. The TSP provides inflation protection equal to 80 per cent of the annual increase in the Consumer Price Index. Other plans provide inflation indexing at the discretion of the Lieutenant Governor in Council. 52 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS The Government is required to match member current service contributions for all plans except Judges and the PSSP. Separate pension funds are maintained for all plans except the PSSP. PSSP member contributions are deposited into the General Revenue Fund. All pension obligations arising under the PSSP are paid from the General Revenue Fund. Information on the defined benefit pension plans of government service organizations follows:
2002 2001 --------------------------------------------- -------- TSP PSSP Others Total Total ------------------------------------------------------------ --------- --------- --------- -------------- -------- Plan status................................................. closed closed closed(1) n/a n/a Member contribution rate, percentage of salary.............. 7.85 7 - 9(2) 5 - 9(2) n/a n/a Number of active members.................................... 5,269 2,069 86 7,424 8,461 Average age of active members, years........................ 50.6 52.1 55 51.1 49.9 Former members entitled to deferred pension benefits........ 6,675 124 10 6,809 7,162 Number of superannuates and surviving spouses............... 9,533 5,701 2,015 17,249 16,629 Member contributions (thousands of dollars)................. $ 22,000 $ 6,278 $ 359 $ 28,637 $ 29,627 Government contributions (thousands of dollars)............. 56,000 - 4,807 60,807 54,803 Benefits paid (thousands of dollars)........................ 224,326 92,586 6,569 323,481 306,930 ------------------------------------------------------------ --------- --------- --------- -------------- --------
1 Judges is open to new membership, all other plans are closed. 2 Contribution rate varies based on age upon joining the plan. The assumptions used to determine the actuarial value of the accrued benefit obligation and pension fund assets for TSP and PSSP are as follows: ------------------------------------------------------------------------------- TSP PSSP --------------------------- Rate of compensation increase....................... 3.5% 3% Expected long-term rate of return on plan assets.... 7.5% N/A Discount rate....................................... 7.5% 6.25% Inflation rate...................................... 3% 3% ------------------------------------------------------------------------------- Based on the latest actuarial valuation, extrapolated to March 31, 2002, the present value of accrued pension benefits and the market related value of pension fund assets are shown in the table below:
(thousands of dollars) --------------------------------------------------------------------------------------------------------- ----------------- 2002 2001 ------------------------------------------------------------------------------ --------------- Actuarial Accrued Pension Unamortized Recorded Recorded Valuation Benefit Fund Net Estimation Pension Pension Plan Name Date Obligation Assets Obligation Adjustments(1) Liabilities Liabilities --------------------------------------------------------------------------------------------------------- ----------------- TSP(2)...........Jun. 30/01 $3,682,000 $1,802,000 $1,880,000 $ 658,408 $2,538,408 $2,561,028 PSSP............. Sept. 1,524,110 - 1,524,110 (183,174) 1,340,936 1,284,808 30/99 Others........... Various 218,224 136,163 82,061 (8,922) 73,139 66,811 --------------------------------------------------------------------------------------------------------- ----------------- Total $5,424,334 $1,938,163 $3,486,171$ $ 466,312 $3,952,483 $3,912,647 ========================================================================================================= =================
1 Amortized to income over 1 to 13 years, the estimated average remaining service life of active plan members at the time the estimation adjustment arises. The net estimation adjustment gains (losses) during the year are $245.8 million. 2 The TSP accrued benefit obligation includes a liability of $78 million (2001 - $67 million) relating to the TSP disability provision. Summary Financial Statements 53 ------------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS At March 31, 2002, the market value of plan investments was $1.9 billion (2001 - $2.0 billion). Of this amount, 43.7 per cent (2001 - 42.4 per cent) was invested in fixed income securities and 50.7 per cent (2001 - 52.7 per cent) in equity investments. The TSP's actual rate of return on plan assets was 4.9 per cent (2001 - 4.5 per cent). DEFINED CONTRIBUTION PENSION PLANS The two main multi-employer defined contribution pension plans sponsored by the Government are the Public Employees Pension Plan (PEPP) and the Capital Pension Plan (Capital). The Government matches employee current service contributions to these plans. The Government also contributes to the Saskatchewan Teachers' Retirement Plan (STRP), sponsored by the Saskatchewan Teachers' Federation. The Government has fully funded its share of contributions to the defined contribution plans. Information on the defined contribution pension plans of government service organizations follows:
---------------------------------------------------------------------------------------------------------------------------- 2002 2001 --------------------------------------------------------- ---------- Government Sponsored ---------------------------- PEPP Capital STRP Total Total ---------------------------------------------------------------------------------------------------------------------------- Plan status........................................... open open n/a n/a n/a Member contribution rate, percentage of salary........ 5 - 5.75(1) 5 - 5.5(1) n/a n/a n/a Government contribution rate, percentage of salary.... 5 - 5.75(1) 5.5 - 6(1) n/a n/a n/a GOVERNMENT SERVICE ORGANIZATION PARTICIPATION: Number of active members.............................. 20,573 614 n/a 21,187 20,123 Number of inactive members............................ 8,710 15 n/a 8,725 7,977 Member contributions (thousands of dollars)........... $ 34,584 $ 1,527 n/a $ 36,111 $ 33,643 Government contributions (thousands of dollars)....... 34,622 1,627 $ 25,644 61,893 56,948 ----------------------------------------------------------------------------------------------------------------------------
1 Contribution rate varies based on employee group. PENSION EXPENDITURE Pension expenditure for government service organizations is allocated to education expenditure and other expenditure. Pension interest expenditure is reported in debt charges. The total pension expenditure of government service organizations includes the following: (thousands of dollars) ----------------------------------------------------------------------------- 2002 2001 ----------------------------------------------------------------------------- DEFINED BENEFIT PENSION PLANS: Current period benefit cost........................ 73,114 77,828 Amortization of estimation adjustments.............(89,196) (23,241) ----------------------------------------------------------------------------- (16,082) 54,587 Employee contributions.............................(28,637) (29,627) ----------------------------------------------------------------------------- (44,719) 24,960 Cost of financing unfunded pension obligation (pension interest expenditure).....................231,670 227,176 ----------------------------------------------------------------------------- Total pension expenditure, defined benefit plans...186,951 252,136 DEFINED CONTRIBUTION PENSION PLANS: Total pension expenditure, defined contribution plans................................. 61,893 56,948 ----------------------------------------------------------------------------- Total pension expenditure 248,844 309,084 ============================================================================= b) GOVERNMENT ENTERPRISES DEFINED BENEFIT PENSION PLANS The two main defined benefit pension plans of government enterprises are the Power Corporation Superannuation Plan (SaskPower) and the Saskatchewan Telecommunications Pension Plan (SaskTel). Other pension plans include Saskatchewan Government Insurance Superannuation Plan, Liquor Board Superannuation Plan, and the Workers' Compensation Board Superannuation Plan. The Government contributes the amount necessary to fund the payment of pension benefits. 54 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS Information on the defined benefit pension plans of government enterprises follows:
2002 2001 ------------------------------------------------------- ----------- SaskPower SaskTel Others Total Total ----------------------------------------------------------------------- ------------ ------------ ------------- ----------- Plan status.............................................. closed closed closed n/a n/a Member contribution rate, percentage of salary........... 6 -9(1) 7 - 9(2) 6.5 - 9(2) n/a n/a Number of active members................................. 661 818 170 1,649 1,721 Number of former members, superannuates and surviving spouses...................................... 1,713 1,570 484 3,767 3,750 Member contributions (thousands of dollars).............. $ 1,908 $ 2,703 $ 440 $ 5,051 $ 5,239 Government contributions (thousands of dollars).......... 479 - 2,140 2,619 2,515 Benefits paid (thousands of dollars)..................... 38,455 38,719 7,021 84,195 88,340 ----------------------------------------------------------------------- ------------ ------------ ------------- ----------- 1 Contribution rate varies based on age upon joining the plan and employee group. 2 Contribution rate varies based on age upon joining the plan.
The assumptions used to determine the amounts under the defined benefit pension plans are as follows: ------------------------------------------------------------- Rate of compensation increase................................ 2.8% - 4% Expected long-term rate of return on plan assets............. 6.25% - 7.6% Discount rate................................................ 6.25% - 6.8% Inflation rate............................................... 2.8% - 3% ------------------------------------------------------------- Based on the latest actuarial valuations extrapolated to December 31, 2001, the present value of accrued pension benefits and the market related value of pension fund assets are shown in the table below:
----------------------------------------------------------------------------------------------------------------- (thousands of dollars) 2002 2001 --------------------------------------------------------- -------------------- Actuarial Accrued Benefit Pension Pension Pension Valuation Obligation Fund (Surplus) (Surplus) Plan Name Date Assets Liability Liability ----------------------------------------------------------------------------------------------------------------- SaskPower...... September 30, 2001 $ 640,650 $ 698,321 $ (57,671) $ (102,041) SaskTel........ December 31, 1998 695,134 749,193 (54,059) (155,055) Others......... Various 112,584 98,250 14,334 15,229 ----------------------------------------------------------------------------------------------------------------- Total $1,448,368 $ 1,545,764 $ (97,396) $ (241,867) =================================================================================================================
At December 31, 2001, the market value of plan investments was $1.5 billion (2000 - $1.6 billion). Of this amount, 45.6 per cent (2000 - 43.5 per cent) was invested in fixed income securities and 45.6 per cent (2000 - 45.6 per cent) in equity investments. DEFINED CONTRIBUTION PENSION PLANS Information on the defined contribution pension plans of government enterprises follows:
---------------------------------------------------------------------------------------------------------------- 2002 2001 ---------------------------------------- ------------ PEPP Capital Total Total ---------------------------------------------------------------------------------------------------------------- Plan status............................................... open open n/a n/a Member contribution rate, percentage of salary............ 4 - 6(1) 5 - 5.5 n/a n/a Number of active members.................................. 7,783 2,006 9,789 9,507 Number of inactive members................................ 2,523 61 2,584 2,460 Member contributions (thousands of dollars)............... $15,839 $ 4,203 $20,042 $19,079 Government contributions (thousands of dollars)........... 19,986 4,089 24,075 22,860 ----------------------------------------------------------------------------------------------------------------
1 Contribution rate varies based on employee group. PENSION EXPENSE Pension expense and pension interest expense for government enterprises are included in income from government enterprises. The pension expense (income) for the year for the defined benefit plans totalled $(28,154) million (2001 - $(21,395) million) and $24,075 million (2001 - $22,860 million) for the defined contribution plans. Summary Financial Statements 55 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS OTHER FUTURE BENEFIT PLANS Other future benefit plans of government enterprises include defined benefit severance plans for management employees, union employees and the supplementary superannuation plan. The present value of accrued benefits is $40 million (2001 - $37.2 million) and the accrued benefit liability is $20.9 million (2001 - $18.7 million). 8. RESERVES The accumulated deficit of $8,708.1 million consists of an unallocated deficit component of $8,720.0 million and the Environmental Protection Reserve of $11.9 million. The Environmental Protection Reserve was created to provide contingency funding to mitigate unforeseen environmental problems related to uranium milling. The reserve is maintained at its March 31, 1992 balance. 9. DEBT CHARGES
(thousands of dollars) 2002 2001 -------------------------------------------------------------------- --------------- Total interest costs................................... $1,126,774 $1,217,719 Less interest reimbursed from government enterprises... (260,838) (292,530) Other costs............................................ 24,848 22,040 -------------------------------------------------------------------- --------------- Total Debt Charges $ 890,784 $ 947,229 ==================================================================== ===============
10. EXPENDITURE BY OBJECT (thousands of dollars) 2002 2001 (Restated) -------------------------------------------- --------------- --------------- Transfers................................... $ 2,880,497 $ 2,475,557 Salaries and benefits....................... 1,948,000 1,850,836 Operating costs............................. 984,982 875,061 Debt charges................................ 890,784 947,229 Tangible capital asset acquisitions......... 344,556 294,605 Other....................................... 374,609 186,435 -------------------------------------------- --------------- --------------- Total Expenditure $ 7,423,428 $ 6,629,723 ============================================ =============== =============== 11. COMPARISON OF PLANNED TO ACTUAL RESULTS
(thousands of dollars) 2002 2001 (Restated) ------------------------ ------------- Planned Actual Actual ------------------------------------------------------------------------------------- -------- --------------- ------------- Surplus of the General Revenue Fund.................................................. $ 2,776 $ 1,098 $ 57,691 Income from government enterprises................................................... ======== 426,061 642,386 (Deficit) Surplus of other government service organizations.......................... (297,248) 1,096,426 Dividends received from government organizations included in the surplus figures above............................................................................ (658,628) (1,261,281) Adjustments to conform to the basis of accounting described in note 1(c)............. 45,749 (74,023) ------------------------------------------------------------------------------------- -------- --------------- ------------- (Deficit) Surplus $ (482,968) $ 461,199 ===================================================================================== ======== ================== =============
The planned and actual figures are before elimination of inter-organization transactions. 56 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS 12. CONTINGENCIES a) GUARANTEED DEBT At March 31, 2002, $323.1 million (2001- $386.7 million) in loans were guaranteed by the Government. Schedule 10 provides a listing of guaranteed debt. b) LAWSUITS Up to $49.5 million may be paid depending on the outcome of lawsuits in progress. c) INDIAN AND NORTHERN AFFAIRS CANADA The Government pays for certain social services provided to status Indians and submits claims to the federal government for the cost of these services. The Government believes these costs are the responsibility of the federal government and that these costs are fully reimbursable. However, the federal government denies responsibility for a portion of these costs. The Government is unable to determine whether the outstanding amounts will be reimbursed. The Government will account for any recovery resulting from the resolution of this contingency at the time of settlement. No provision for such a recovery has been made in these financial statements. d) OTHER Other contingencies of $3.1 million may be paid depending on the outcome of future events. 13. COMMITMENTS Significant financial commitments include: o forward purchase commitments of $1,729.7 million for coal contracted for future minimum deliveries valued at current prices; o forward purchase commitments of approximately $3,000 million for power over the next 25 years; o treaty land entitlement agreement commitments valued at approximately $67.1 million; o other commitments of $838.4 million which include commitments of $23.3 million for agriculture, $13.6 million for community development, $82.8 million for economic development, $70.1 million for education, $51.0 million for health, $123.4 million for social services and assistance, and $61.9 million for transportation; and o capital and operating lease obligations as follows: (thousands of dollars) ----------------------------------------- --------------- --------------- Operating Capital ----------------------------------------- --------------- --------------- Future minimum lease payments 2002-03.................................. $ 62,703 $15,835 2003-04.................................. 61,057 16,779 2004-05.................................. 52,772 15,458 2005-06.................................. 43,279 13,934 2006-07.................................. 34,132 11,482 Thereafter............................... 44,679 54,590 ----------------------------------------- --------------- --------------- 298,622 128,078 Less: Interest and executory costs - (44,575) ----------------------------------------- --------------- --------------- Total Lease Obligations $ 298,622 $83,503 ========================================= =============== =============== Total operating lease obligations include $201.4 million for government service organizations and $97.2 million for government enterprises. Total capital lease obligations include $47.8 million for government service organizations (schedule 5) and $35.7 million for government enterprises. Summary Financial Statements 57 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN NOTES TO THE SUMMARY FINANCIAL STATEMENTS 14. TRUST FUNDS Trust funds are property held and administered on behalf of beneficiaries. Trust assets are not owned by the Government and the Government has no equity in the funds. Therefore, trust funds are not included in the reporting entity. Fund balances held and administered by the Government at March 31, 2002, are as follows: (thousands of dollars) 2002 2001 ---------------------------------------------- ------------ ----------- Superannuation funds and pension plans(1)..... $8,098,203 $8,086,125 Public Trustee's Trust Account................ 139,542 135,357 Other trusts.................................. 30,161 39,543 Total Trust Funds $8,267,906 $8,261,025 ============================================== ============ =========== 1 The balance reflects the latest financial statements of the funds and plans closest to March 31, 2002. 15. COMPARATIVE FIGURES Certain of the 2001 comparative figures have been reclassified to conform with the current year's presentation. In addition, the following changes in accounting policy required restatement of the 2001 comparative figures. PROPERTY HOLDINGS During 2001-02, certain property holdings were reclassified from other investments to tangible capital assets. The Government's policy is to record tangible capital assets as an expenditure in the period acquired. The effect of this change in policy in the current year is an increase in expenditure of $14 million. The Government has retroactively restated comparative figures to record this change in accounting policy. GOVERNMENT ENTERPRISES a) Foreign Currency Translation During 2001-02, certain government enterprises adopted the recommendations of the Canadian Institute of Chartered Accountants (CICA) for foreign currency translation. Prior to 2001-02, government enterprises deferred and amortized unrealized foreign exchange gains and losses on long-term monetary items. The new recommendations of the CICA require that unrealized foreign exchange gains and losses be included in income of the current period. The effect of this change in policy in the current year is a decrease in income from government enterprises of $37 million. The Government has retroactively restated comparative figures to record this change in accounting policy. b) Future Benefits Administration Costs During 2001-02, the Workers' Compensation Board (Saskatchewan) (WCB) changed its policy of accounting for the estimated future costs of administering benefit claims incurred. Prior to 2001-02, these costs were accounted for as reserves. WCB now records the estimated future costs as a liability. The effect of this change in policy in the current year is a decrease in income from government enterprises of $3 million. The Government has retroactively restated comparative figures to record this change in accounting policy. The net effect of the restatements is as follows:
(thousands of dollars) --------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) ----------------------------------------------------------------------- March 31, 2001 March 31, 2000 ------------------------------------------------- ------------------- Surplus Accumulated for the year Assets Liabilities Deficit -------------------------------------------------- --------------- --------------- ---------------- ------------------- As previously reported............................ $ 506,354 $ 5,456,120 $ 13,374,670 $ 8,424,904 Property Holdings............................ (23,465) (128,482) - 105,017 Government Enterprises Foreign Currency Translation............... (21,282) (146,868) - 125,586 Future Benefits Administration Costs....... (408) (31,196) - 30,788 -------------------------------------------------- --------------- --------------- ---------------- ------------------- As restated $ 461,199 $ 5,149,574 $ 13,374,670 $ 8,686,295 ================================================== =============== =============== ================ ===================
58 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS For the Year Ended March 31, 2002 SCHEDULE 1 - ACCOUNTS RECEIVABLE
(thousands of dollars) -------------------------------------------------------------------------------------- 2002 2001 -------------------------------------------------------------------------------------- Taxation.......................................................$ 154,429 $142,254 Non-renewable resources........................................ 123,838 119,715 Transfers from the federal government.......................... 54,426 64,506 Leases and farm loans.......................................... 10,858 12,543 Accrued interest............................................... 5,321 4,484 Insurance premiums due from agricultural producers............. 2,917 6,498 Other.......................................................... 356,366 310,989 -------------------------------------------------------------------------------------- TOTAL ACCOUNTS RECEIVABLE $ 708,155 $660,989 ====================================================================================== SCHEDULE 2 - LOANS AND MORTGAGES RECEIVABLE (thousands of dollars) -------------------------------------------------------------------------------------- 2002 2001 -------------------------------------------------------------------------------------- AGRICULTURAL LOANS Capital loan program...........................................$ 63,967 $ 79,552 Production loan program........................................ 1,781 2,526 Short-term hog loan program.................................... 1,361 6,030 Counselling and Assistance for Farmers program................. 1,349 1,832 Livestock cash advance program................................. 980 1,517 Other.......................................................... 391 749 -------------------------------------------------------------------------------------- 69,829 92,206 Provision for losses....................................... (24,208) (37,336) -------------------------------------------------------------------------------------- 45,621 54,870 -------------------------------------------------------------------------------------- STUDENT LOANS.................................................. 37,536 9,348 Provision for losses....................................... (11,996) (6,430) -------------------------------------------------------------------------------------- 25,540 2,918 -------------------------------------------------------------------------------------- OTHER LOANS.................................................... 63,959 70,604 Provision for losses....................................... (27,312) (26,954) -------------------------------------------------------------------------------------- 36,647 43,650 -------------------------------------------------------------------------------------- MORTGAGES Housing ....................................................... 4,368 4,505 Cornwall Centre................................................ - 36,050 Other.......................................................... - 236 -------------------------------------------------------------------------------------- 4,368 40,791 -------------------------------------------------------------------------------------- TOTAL LOANS AND MORTGAGES RECEIVABLE $ 112,176 $142,229 ====================================================================================== See page 59 for additional information.
Summary Financial Statements 59 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 2 (CONTINUED) - LOANS AND MORTGAGES RECEIVABLE CAPITAL LOAN PROGRAM Loans are repayable over terms not exceeding twenty-five years and bear interest at rates between 6.0 per cent and 13.5 per cent. Security on individual loans varies and may include mortgages on real property, security agreements and guarantees. The program operates under The Agricultural Credit Corporation of Saskatchewan Act. PRODUCTION LOAN PROGRAM Production loans were disbursed in 1986 bearing interest at 6.0 per cent repayable in equal principal instalments over a term of three years. Amounts in arrears are at prime plus 2 per cent. Program amendments allowed borrowers to reschedule their outstanding loans at an average rate of 9.0 per cent. The loans are secured by promissory notes and, where applicable, by guarantees and general security agreements. The program operates under The Agricultural Credit Corporation of Saskatchewan Act. SHORT-TERM HOG LOAN PROGRAM Loan applications were accepted under this program between January 15, 1999 and July 5, 1999 for hogs marketed between November 1, 1998 and May 29, 1999. The loans are repayable, at floating interest rates, in full by March 31, 2003. Penalty interest is charged at prime plus 2 per cent. The program operates under The Farm Financial Stability Act. COUNSELLING AND ASSISTANCE FOR FARMERS PROGRAM Effective August 1, 1992, the Government no longer issued new guarantees under this program. Existing guarantees were renewed until March 31, 1995, at which time the program was terminated. The majority of loans are in default, have judgements obtained on them and bear interest at 5 per cent. The loans are secured by way of an assignment of security from the original lender. The program operates under The Farm Financial Stability Act. LIVESTOCK CASH ADVANCE PROGRAM Effective August 1, 1993, clients with livestock cash advances began repaying their loans, bearing interest at the bank prime rate plus 2 per cent, over a maximum five-year period. Program amendments allowed borrowers to reschedule their outstanding loans at an average rate of 9.0 per cent. The loans are secured by promissory notes and, where applicable, by guarantees. The program operates under The Agricultural Credit Corporation of Saskatchewan Act. STUDENT LOANS The program operates under the authority of The Student Assistance and Student Aid Fund Act, 1985. Loans are interest-free until the discontinuance of full-time studies or graduation. Interest rates are prescribed by the Minister of Post-Secondary Education and Skills Training. Special incentive loan remission grants, student bursaries, scholarships, study grants and other varieties of loan forgiveness are available to students who meet specific criteria. A Risk Sharing Student Loans Agreement between the Government and a bank was signed in March 1996. This Agreement covers loans approved between August 1, 1996 and July 31, 2001. The Government retained responsibility for loan approval. Loans approved are lender-financed, disbursed, managed and collected by the bank. The Government pays a risk premium of 5.0 per cent to the bank when loans become repayable. In June 2001, the Government entered into an agreement with the federal government to integrate the federal and provincial student loans programs. This agreement is effective for loans approved on or after August 1, 2001 and establishes the Government as financier of the program. The Government approves applications for both provincial and federal loans. Disbursement, administration and collection of loans is contracted to external agencies. HOUSING MORTGAGES Housing mortgages were provided pursuant to provisions of Section 15 of The Saskatchewan Housing Corporation Act. The mortgages are repayable, at various interest rates, over terms not exceeding thirty-five years. Security on the mortgages may include promissory notes or charges against residential property. CORNWALL CENTRE MORTGAGES The Government held two mortgages due jointly from Cadillac Fairview Corporation Limited and 1381052 ONTARIO INC. Both mortgages matured December 1, 2001. 60 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 3 - INVESTMENT IN GOVERNMENT ENTERPRISES (PART 1)
----------------------------------------------------------------------------------------------------------------------------- SASKATCHEWAN TELECOM- SASKATCHEWAN SASKATCHEWAN MUNICATIONS LIQUOR SASKATCHEWAN SASKENERGY POWER HOLDING AND GAMING GAMING INCORPORATED CORPORATION CORPORATION AUTHORITY CORPORATION Dec. 31, 2001 Dec. 31, 2001 Dec. 31, 2001 Mar. 31, 2002 Mar. 31, 2002 ----------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and temporary investments Due from government organizations...............$ 32,348 Other........................................... (678) 202,730 42,026 2,999 16,781 Accounts receivable Due from government organizations............... Other .......................................... 145,711 141,826 101,882 19,192 889 Inventories......................................... 104,501 10,177 14,300 177 Prepaid expenses.................................... 41,817 15,668 13,269 2,301 580 Long-term investments In the Province ................................ Other........................................... 12,832 14,155 79,199 Capital assets...................................... 1,018,687 3,071,338 910,884 32,733 50,782 Other assets Due from government organizations............... 4,000 Other........................................... 142,355 37,128 87,450 381 ----------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 1,360,724 3,591,346 1,244,887 104,254 69,209 ----------------------------------------------------------------------------------------------------------------------------- Liabilities Accounts payable and accrued liabilities Due to government organizations................. 13,344 55,846 7,594 Other........................................... 115,927 178,016 97,226 10,900 7,442 Dividends payable to government organizations....... 6,557 20,490 66,297 26,380 Debt Owing to government organizations............... 836,947 1,820,174 434,651 Other........................................... 4,816 91,070 15,562 35,387 Unearned revenue Received from government organizations.......... 2,375 Other........................................... 94,815 299,971 27,791 Unpaid insurance claims............................. Other liabilities................................... 446 24,438 ----------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,068,224 2,451,634 603,760 101,635 69,209 ----------------------------------------------------------------------------------------------------------------------------- Net Assets (Liabilities) $ 292,500 1,139,712 641,127 2,619 - ============================================================================================================================= Revenue Revenue from operations.............................$ 590,027 1,114,268 811,885 645,376 69,667 Transfers from government organizations............. 12,053 17,422 31,576 ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUE 602,080 1,131,690 843,461 645,376 69,667 ----------------------------------------------------------------------------------------------------------------------------- Expenses Expenses from operations............................ 540,291 871,918 686,763 327,990 43,287 Transfers to government organizations............... 77,166 230,620 55,202 ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES(3) 617,457 1,102,538 741,965 327,990 43,287 ----------------------------------------------------------------------------------------------------------------------------- Income (loss) before non-recurring items............ (15,377) 29,152 101,496 317,386 26,380 Non-recurring items................................. ----------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) (15,377) 29,152 101,496 317,386 26,380 Retained earnings (deficit) - beginning of year as previously reported............................ 236,346 587,813 406,626 Restatement of prior years (note 15)................ (121,220) (25,648) 943 Dividends to government organizations............... (16,026) (91,347) (315,710) (26,380) ----------------------------------------------------------------------------------------------------------------------------- Retained earnings (deficit) - end of year........... 220,969 479,719 391,127 2,619 - Equity advances/share capital....................... 71,531 659,993 250,000 ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS (DEFICIENCY) $ 292,500 1,139,712 641,127 2,619 - ============================================================================================================================= See page 62 for additional information. 1 Adjustments include: - reclassifying dividends paid by March 31, 2002; - reclassifying cross currency swaps of Saskatchewan Power Corporation; and - reversing the loss recognized by Municipal Financing Corporation for a premium paid on an exchange of debt with the General Revenue Fund and amortizing this same loss over the term of the original debt issues. 2 Net assets are restricted as disclosed in the narrative portion of this schedule on the pages following. 3 Total expenses include debt charges, net of sinking fund earnings, of $290.7 million (2001 restated - $283.6 million), of which $249.0 million (2001 - $251.2 million) in interest was paid to government organizations.
SCHEDULE 3 - INVESTMENT IN GOVERNMENT ENTERPRISES (PART 2)
----------------------------------------------------------------------------------------------------------------- MUNICIPAL WORKERS' FINANCING SASKATCHEWAN SASKATCHEWAN COMPENSATION CORPORATION OF GOVERNMENT AUTO BOARD SASKATCHEWAN INSURANCE FUND (SASKATCHEWAN)(2) Dec. 31, 2001 Dec. 31, 2001 Dec. 31, 2001 Dec. 31, 2001 ----------------------------------------------------------------------------------------------------------------- ASSETS Cash and temporary investments Due from government organizations............... Other........................................... 18,674 30,098 68,164 7,858 Accounts receivable Due from government organizations............... 6,473 8,959 Other .......................................... 1,146 55,508 77,285 23,267 Inventories......................................... Prepaid expenses.................................... 44,546 16,695 Long-term investments In the Province ................................ 6,176 10,339 7,406 Other........................................... 26,080 256,169 651,690 804,288 Capital assets...................................... 13,381 41,276 19,438 Other assets Due from government organizations............... Other........................................... 4,601 ----------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 45,900 410,479 871,922 871,216 ----------------------------------------------------------------------------------------------------------------- Liabilities Accounts payable and accrued liabilities Due to government organizations................. 1,171 11,739 23,271 7,799 Other........................................... 18 13,326 18,259 19,949 Dividends payable to government organizations....... 575 Debt Owing to government organizations............... 31,365 Other........................................... 2,500 Unearned revenue Received from government organizations.......... Other........................................... 113,408 200,944 Unpaid insurance claims............................. 172,924 627,479 700,463 Other liabilities................................... 4,660 93,030 ----------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 35,054 316,632 869,953 821,241 ----------------------------------------------------------------------------------------------------------------- Net Assets (Liabilities) 10,846 93,847 1,969 49,975 ================================================================================================================= Revenue Revenue from operations............................. 3,802 207,490 506,929 208,269 Transfers from government organizations............. 3,282 11,461 ----------------------------------------------------------------------------------------------------------------- TOTAL REVENUE 3,802 207,490 510,211 219,730 ----------------------------------------------------------------------------------------------------------------- Expenses Expenses from operations............................ 328 188,832 468,734 267,752 Transfers to government organizations............... 5,967 8,475 22,637 7,799 ----------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES(3) 6,295 197,307 491,371 275,551 ----------------------------------------------------------------------------------------------------------------- Income (loss) before non-recurring items............ (2,493) 10,183 18,840 (55,821) Non-recurring items................................. ----------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) (2,493) 10,183 18,840 (55,821) Retained earnings (deficit) - beginning of year, as previously reported............................ 13,339 37,829 (16,871) 136,992 Restatement of prior years (note 15)................ (31,196) Dividends to government organizations............... (9,165) ----------------------------------------------------------------------------------------------------------------- Retained earnings (deficit) - end of year........... 10,846 38,847 1,969 49,975 Equity advances/share capital....................... 55,000 ----------------------------------------------------------------------------------------------------------------- NET ASSETS (DEFICIENCY) 10,846 93,847 1,969 49,975 ================================================================================================================= See page 62 for additional information. 1 Adjustments include: - reclassifying dividends paid by March 31, 2002; - reclassifying cross currency swaps of Saskatchewan Power Corporation; and - reversing the loss recognized by Municipal Financing Corporation for a premium paid on an exchange of debt with the General Revenue Fund and amortizing this same loss over the term of the original debt issues. 2 Net assets are restricted as disclosed in the narrative portion of this schedule on the pages following. 3 Total expenses include debt charges, net of sinking fund earnings, of $290.7 million (2001 restated - $283.6 million), of which $249.0 million (2001 - $251.2 million) in interest was paid to government organizations.
Summary Financial Statements 61 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 3 - INVESTMENT IN GOVERNMENT ENTERPRISES (PART 3)
(thousands of dollars) ------------------------------------------------------------------------------------------------------------------------ SASKATCHEWAN GOVERNMENT GROWTH FUND MANAGEMENT TOTAL Total CORPORATION ADJUSTMENTS (1) 2002 2001 Dec. 31, 2001 (Restated) ------------------------------------------------------------------------------------------------------------------------ Assets Cash and temporary investments Due from government organizations................ $ 32,348 $ 12,925 Other............................................ 653 (27,596) 361,709 213,358 Accounts receivable Due from government organizations................ 15,432 4,473 Other ........................................... 2,129 568,835 577,802 Inventories.......................................... 129,155 132,218 Prepaid expenses..................................... 134,876 71,536 Long-term investments In the Province ................................. 23,921 19,958 Other............................................ 1,557 1,845,970 1,742,077 Capital assets....................................... 6 5,158,525 4,930,650 Other assets Due from government organizations................ 4,000 2,000 Other............................................ (11,899) 260,016 203,309 ------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS 4,345 (39,495) 8,534,787 7,910,306 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Accounts payable and accrued liabilities Due to government organizations........................ 120,764 117,489 Other.................................................. 239 461,302 498,957 Dividends payable to government organizations.............. (27,596) 92,703 68,721 Debt Owing to government organizations...................... (22,944) 3,100,193 2,764,062 Other.................................................. 149,335 33,051 Unearned revenue Received from government organizations................. 2,375 2,323 Other.................................................. 736,929 691,200 Unpaid insurance claims.................................... 1,500,866 1,343,440 Other liabilities.......................................... 122,574 110,750 ------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 239 (50,540) 6,287,041 5,629,993 ------------------------------------------------------------------------------------------------------------------------ NET ASSETS (LIABILITIES) 4,106 11,045 $ 2,247,746 $ 2,280,313 ======================================================================================================================== REVENUE Revenue from operations.................................... 3,982 $ 4,161,695 $ 3,982,812 Transfers from government organizations.................... 75,794 76,399 ------------------------------------------------------------------------------------------------------------------------ TOTAL REVENUE 3,982 - 4,237,489 4,059,211 ------------------------------------------------------------------------------------------------------------------------ EXPENSES Expenses from operations................................... 6,719 948 3,403,562 3,005,815 Transfers to government organizations...................... 407,866 398,084 ------------------------------------------------------------------------------------------------------------------------ TOTAL EXPENSES(3) 6,719 948 3,811,428 3,403,899 ------------------------------------------------------------------------------------------------------------------------ Income (loss) before non-recurring items................... (2,737) (948) 426,061 655,312 Non-recurring items........................................ - (12,926) ------------------------------------------------------------------------------------------------------------------------ NET INCOME (LOSS) (2,737) (948) 426,061 642,386 Retained earnings (deficit) - beginning of year, as previously reported................................... 6,842 12,929 1,421,845 2,019,050 Restatement of prior years (note 15)....................... (943) (178,064) (156,374) Dividends to government organizations...................... (458,628) (1,261,281) ------------------------------------------------------------------------------------------------------------------------ Retained earnings (deficit) - end of year.................. 4,105 11,038 1,211,214 1,243,781 Equity advances/share capital.............................. 1 7 1,036,532 1,036,532 ------------------------------------------------------------------------------------------------------------------------ NET ASSETS (DEFICIENCY) 4,106 11,045 $ 2,247,746 $ 2,280,313 ======================================================================================================================== See page 62 for additional information.
(1) Adjustments include: - reclassifying dividends paid by March 31, 2002; - reclassifying cross currency swaps of Saskatchewan Power Corporation; and - reversing the loss recognized by Municipal Financing Corporation for a premium paid on an exchange of debt with the General Revenue Fund and amortizing this same loss over the term of the original debt issues. (2) Net assets are restricted as disclosed in the narrative portion of this schedule on the pages following. (3) Total expenses include debt charges, net of sinking fund earnings, of $290.7 million (2001 restated - $283.6 million), of which $249.0 million (2001 - $251.2 million) in interest was paid to government organizations. 62 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 3 (CONTINUED) - INVESTMENT IN GOVERNMENT ENTERPRISES SASKENERGY INCORPORATED (SASKENERGY) SaskEnergy promotes, transports, stores and distributes natural gas in Saskatchewan. SASKATCHEWAN POWER CORPORATION (SASKPOWER) SaskPower generates, purchases, transmits, distributes and sells electricity and related products and services. SASKATCHEWAN TELECOMMUNICATIONS HOLDING CORPORATION (SASKTEL) SaskTel markets and supplies a range of voice, data, Internet, wireless, text and image products, systems and services. Through interconnection agreements, SaskTel is part of the national and global communications network. SASKATCHEWAN LIQUOR AND GAMING AUTHORITY (SLGA) SLGA's main functions are to control the manufacture and distribution of beverage alcohol throughout the Province, to oversee the licencing of all establishments selling alcohol in the Province and to maintain the integrity of all licenced gaming while ensuring maximum benefit to Saskatchewan charities. SASKATCHEWAN GAMING CORPORATION (SGC) SGC's mandate is to manage and operate Casino Regina. MUNICIPAL FINANCING CORPORATION OF SASKATCHEWAN (MFC) MFC's objective is to assist municipalities in financing their capital requirements. SASKATCHEWAN GOVERNMENT INSURANCE (SGI) & SASKATCHEWAN AUTO FUND (AUTO FUND) SGI's competitive general insurance business, SGI CANADA, offers a comprehensive line of home, tenant, farm, automobile extension and commercial coverages. The Auto Fund, the Province's compulsory vehicle insurance program, is administered by SGI on behalf of the Government. Any net assets of the Auto Fund are held on behalf of Saskatchewan's motoring public and are not used for the payment of dividends to the General Revenue Fund. WORKERS' COMPENSATION BOARD (SASKATCHEWAN) (WCB) WCB provides workers' compensation insurance to Saskatchewan workers and employers. Any net assets of the WCB cannot be used for the payment of dividends to the General Revenue Fund. SASKATCHEWAN GOVERNMENT GROWTH FUND MANAGEMENT CORPORATION (SGGF) SGGF participates in the federal government's Immigrant Investor Program to acquire lower cost capital for commercial investment in Saskatchewan. Investment funds are raised through eight subsidiary fund companies and are managed by Crown Capital Partners Inc., a fund manager. In March 1999, the Immigrant Investor Program ended. However, with a significant number of subscribers yet to complete their subscription requirements, the funds will require management by SGGF for at least the next six years. Summary Financial Statements 63 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 4 - OTHER INVESTMENTS
(thousands of dollars) ------------------------------------------------------------------------------------------------------------ Partnership Interest / 2002 2001 Voting Percentage (Restated) ------------------------------------------------------------------------------------------------------------ EQUITY INVESTMENTS GOVERNMENT BUSINESS PARTNERSHIPS Centennial Foods Partnership partnership interest........................ 35.0% $19,614 $19,939 NewGrade Energy Inc. 100 (2001 - 100) Class Y participating common shares............................... 50.0% 14,931 (4,804) Foragen Technologies Limited Partnership partnership interest........................ 33.3% 2,275 3,000 Meadow Lake Pulp Limited Partnership partnership interest........................ 50.0% (48,266) (33,629) OTHER EQUITY INVESTMENTS Saskferco Products Inc. 68,449,080 (2001 - 68,449,080) Class B common shares............................... 49.0% 109,303 106,079 Other......................................... 40,463 32,088 ------------------------------------------------------------------------------------------------------------ 138,320 122,673 ------------------------------------------------------------------------------------------------------------ PORTFOLIO INVESTMENTS HARO Financial Corporation 68,000,000 (2001 - 68,000,000) Class B non-voting common shares.................... 68,000 68,000 Cameco Corporation 0 (2001 - 5,423,123) common shares......... -- 114,898 Other......................................... 38,177 16,878 ------------------------------------------------------------------------------------------------------------ 106,177 199,776 ------------------------------------------------------------------------------------------------------------ BONDS, DEBENTURES AND OTHER ADVANCES HARO Financial Corporation.................... 171,141 162,666 Meadow Lake Pulp Limited Partnership.......... 150,361 148,361 NewGrade Energy Inc........................... 8,490 21,679 Other......................................... 61,440 58,856 ------------------------------------------------------------------------------------------------------------ 391,432 391,562 ------------------------------------------------------------------------------------------------------------ PROPERTY HOLDINGS 5,028 8,838 ------------------------------------------------------------------------------------------------------------ TOTAL OTHER INVESTMENTS $ 640,957 $722,849 ============================================================================================================
See pages 64-66 for additional information. 64 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 4 (CONTINUED) - OTHER INVESTMENTS CENTENNIAL FOODS PARTNERSHIP (CENTENNIAL) The Government, through its wholly-owned subsidiary CIC Foods Inc., owns a 35 per cent interest in Centennial. NEWGRADE ENERGY INC. (NEWGRADE) The Government owns 50 per cent (2001 - 50 per cent) of the outstanding voting participating shares of NewGrade. The Government also holds certain promissory notes due on demand from NewGrade that bear interest at Bank of Montreal prime rate, which was 4.0 per cent at December 31, 2001 (2000 - 7.5 per cent). In addition, should there be any operating shortfall at the end of any year, the Government will loan NewGrade up to $2.0 million, escalated by inflation, in the form of a Subordinated Operations Fee Amount after Consumers' Co-operative Refineries Limited (CCRL) has provided its $2.0 million Subordinated Operations Fee Amount. If these loans do not cover all cash shortfalls, then the Government will lend NewGrade up to $4.0 million as a Cash Flow Deficiency Loan on a pro-rata basis with CCRL. If this facility is exhausted, the Government will lend NewGrade the remainder to cover any other annual operating shortfalls. These loans bear interest at CCRL's rate of borrowing. CCRL's required Cash Flow Deficiency Loans cannot exceed $40.0 million outstanding at any time. During 2001, the Government received $15.5 million from NewGrade in principal payments on promissory notes outstanding. Of this amount, $2.3 million represents recovery of loans previously allowed for. FORAGEN TECHNOLOGIES LIMITED PARTNERSHIP (FORAGEN) The Government, through its wholly-owned subsidiary 101012875 Saskatchewan Ltd., owns a 33.3 per cent interest in Foragen. The Government has committed to providing $14.0 million in equity to Foragen over the five years ending 2005. At December 31, 2001, the Government had provided $3.0 million (2000 - $3.0 million) of this commitment. MEADOW LAKE PULP LIMITED PARTNERSHIP (MLPLP) The Government, through its wholly-owned subsidiary CIC Pulp Ltd., owns a 50 per cent (2001 - 50 per cent) interest in MLPLP. In addition to its equity interest in MLPLP, the Government has also provided the following loans: o Participating Debenture of $99.0 million (2001 - $99.0 million) bearing interest at 11.15 per cent (2001 - 11.15 per cent) calculated on October 31 of each year; o Term Loan of $20.0 million (2001 - $20.0 million) bearing interest at prime plus 2.0 per cent, which was 6.0 per cent at December 31, 2001 (2001 - 9.5 per cent). Any interest outstanding and not paid on October 31 of each year is added to the principal balance; o Contingency Loan of $10.9 million (2001 - $10.9 million) bearing interest at prime plus 1.0 per cent, which was 5.0 per cent at December 31, 2001 (2001 - 8.5 per cent). Any interest outstanding and not paid on October 31 of each year is added to the principal balance; o Guarantee Advance of $10.0 million (2001 - $8.0 million) bearing interest at prime plus 1.0 per cent, which was 5.0 per cent at December 31, 2001 (2001 - 8.5 per cent). Any interest outstanding and not paid on October 31 of each year is added to the principal balance; and o Cash Flow Loan of $10.5 million (2001 - $10.5 million) bearing interest at prime plus 1.0 per cent, which was 5.0 per cent at December 31, 2001 (2001 - 8.5 per cent). Any interest outstanding and not paid on October 31 of each year is added to the principal balance. The Government records, as a separate loan (Interest Loan), the accrued interest receivable from the Participating Debenture. Interest on the Interest Loan, at 11.15 per cent, is calculated on October 31 of each year and is added to the principal balance outstanding on the loan. Interest income earned and forming part of the Interest Loan is recorded as deferred interest income due to the uncertainty of collection. The deferred interest income will be recorded as income when payments are received under the cash availability formula. Any payments to be made on the Participating Debenture, the Contingency Loan and the Interest Loan are subject to available cash flows as defined in the loan agreements. Payments towards principal outstanding on the Term Loan are due in two equal instalments after MLPLP has fully repaid an external bank loan. The Participating Debenture, Term Loan, Contingency Loan and Interest Loan mature in 2014. The remaining balance outstanding on the Participating Debenture and Interest Loan on October 31, 2014 shall bear interest at a rate equal to the Government's short-term cost of borrowing, which at December 31, 2001 was 1.98 per cent (2000 - 5.63 per cent), until paid in full. On June 14, 2001, MLPLP refinanced its long-term debt with other major lenders. As a part of the refinancing agreement, the Government provided a guarantee on MLPLP's long-term debt payments to the other lenders to a maximum of $80 million. During the year, the Government provided payments of $2 million under this guarantee. The total deferred interest is $326.4 million (2000 - $275.5 million). Due to the uncertainty of cash flows from MLPLP, the Government's Participating Debenture is shown net of a provision for loan losses of $60.0 million (2000 - $60.0 million). Summary Financial Statements 65 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 4 (CONTINUED) - OTHER INVESTMENTS SASKFERCO PRODUCTS INC. (SASKFERCO) The Government holds a 49 per cent (2000 - 49 per cent) voting interest in Saskferco. HARO FINANCIAL CORPORATION (HARO) To December 31, 2001, the Government had advanced $273.0 million (2000 - $273.0 million) to HARO to finance its ownership interest in Crown Life Insurance Company (Crown Life). In 1995, the Government exercised its right to convert $68.0 million of these advances into 68,000,000 non-voting, fully participating equity shares of HARO. The loan was for an initial five-year term with a maximum of four five-year renewal terms at the option of HARO. In 1998, the Government agreed to renew this loan for a second five-year term. Annual interest rates on the loan are fixed at the start of each renewal term. For the second five-year term, the interest rate on the loan is 6.64 per cent compounded annually. Security for the loan is 100 per cent of HARO's assets, which as of December 31, 2001 consisted primarily of HARO's 64.5 per cent interest in Crown Life shares. In 1999, the Canada Life Assurance Company acquired most of the insurance operations of Crown Life. The remaining assets and operations will continue to be managed by Crown Life. Payment of principal and interest is subject to available cash flow as defined in the loan agreement. Due to collection uncertainty, the Government will record interest income when payments are received. All unpaid principal and interest is due on December 15, 2017. On that date, any amounts outstanding will convert to 100 per cent of HARO equity shares. The Government has a unilateral right, prior to December 15, 2017, to convert no less than 25 per cent of the loan to either HARO non-voting, HARO voting or Crown Life shares. Any conversion may be subject to regulatory approval. Ownership of the 68,000,000 of HARO's Class B non-voting common shares entitles the Government to a maximum of 100 per cent of participation rights with respect to dividends and remaining property of HARO on its liquidation or dissolution. Subject to regulatory approval, the Government has a unilateral right to exchange at any time the Class B shares for voting shares or HARO's assets. CAMECO CORPORATION (CAMECO) On February 14, 2002, the Government sold its remaining 5,423,123 shares in Cameco for net proceeds of $226.4 million, generating a gain on sale of $111.5 million. 66 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 4 (CONTINUED) - OTHER INVESTMENTS INVESTMENT IN GOVERNMENT BUSINESS PARTNERSHIPS The Government has invested in government business partnerships to promote economic growth and provide an economic return. At March 31, 2002, the Government's investment in government business partnerships includes a 35 per cent share in Centennial Foods Partnership (Centennial), a 50 per cent share in NewGrade Energy Inc. (NewGrade), a 33.3 per cent share in Foragen Technologies Limited Partnership (Foragen) and a 50 per cent share in Meadow Lake Pulp Limited Partnership (MLPLP). Centennial is a value- added food manufacturing and food service distribution business that is expanding its processing operations into Saskatchewan; NewGrade operates a heavy oil upgrading plant in Regina; Foragen is a venture capital fund which will offer seed capital to technology corporations; and MLPLP operates a pulp mill near Meadow Lake. These investments are accounted for using the modified equity method. For 2000-01 only, due to limited activity during the year, Foragen was recorded at cost and is not included in the 2001 condensed financial information for government business partnerships. ------------------------------------------------------------------------------- (thousands of dollars) 2002 2001 ------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR GOVERNMENT BUSINESS PARTNERSHIPS: ASSETS Capital assets............................... $ 284,836 $ 303,993 Other assets................................. 269,694 277,639 TOTAL ASSETS 554,530 581,632 ------------------------------------------------------------------------------- LIABILITIES Debt Owing to government organizations......... 550,506 515,076 Other..................................... 243,849 269,573 Other liabilities............................ 114,206 113,647 TOTAL LIABILITIES 908,561 898,296 ------------------------------------------------------------------------------- NET LIABILITIES $ (354,031) $ (316,664) =============================================================================== OPERATING RESULTS Revenue..................................... $ 1,095,858 $ 1,236,862 Expenses.................................... 1,140,889 1,143,887 -------------------------------------------------------------------------------- NET OPERATING RESULTS (45,031) 92,975 Net Operating Deficiency - beginning of year....................................... (483,286) (576,261) ------------------------------------------------------------------------------- Net Operating Deficiency - end of year...... (528,317) (483,286) Equity advances/share capital (net of partnership distributions)................. 174,286 166,622 ------------------------------------------------------------------------------- NET DEFICIENCY $ (354,031) $ (316,664) =============================================================================== INVESTMENT IN GOVERNMENT BUSINESS PARTNERSHIPS: Government's share of Net Operating Deficiency - end of year.................. $ (263,631) $ (241,617) Government's investment(1)................ 90,051 88,927 Adjustments(2)............................ 162,134 137,196 ---------------- ------------ TOTAL INVESTMENT IN GOVERNMENT BUSINESS PARTNERSHIPS(3) $ (11,446) $ (15,494) ================ ============ 1 Government's investment includes the Government's initial investment net of partnership distributions as well as subsequent cash injections provided under various terms and conditions. 2 Adjustments include: - elimination of expenditures included in the Government's share of accumulated operating deficiency above and also consolidated as part of the operations of government service organizations; and - recording additional operating expenditures incurred by the Government's subsidiaries through which the Government has made these investments. 3 Total investment in government business partnerships includes: Centennial Foods Partnership................. $ 19,614 $ 19,939 NewGrade Energy Inc.......................... 14,931 (4,804) Foragen Technologies Limited Partnership..... 2,275 3,000 Meadow Lake Pulp Limited Partnership.......... (48,266) (33,629) ----------- ---------- $ (11,446) $ (15,494) =========== ========== Summary Financial Statements 67 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 5 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (thousands of dollars) ------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------- Transfers................................... $ 218,240 $ 268,134 Accrued employee benefits................... 207,444 161,359 Supplier payments........................... 201,440 194,568 Accrued interest............................ 165,456 189,662 Transfers to the federal government 101,942 107,546 Public employee benefit plans claims payable 67,922 62,830 Capital lease obligations (note 13)......... 47,790 47,561 Other....................................... 75,291 125,024 ------------------------------------------------------------------------------- TOTAL ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $1,085,525 $1,156,684 =============================================================================== SCHEDULE 6 - OTHER LIABILITIES (thousands of dollars) ------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------- FUNDS HELD ON BEHALF OF GOVERNMENT ENTERPRISES AND OTHERS Saskatchewan Liquor and Gaming Authority... $ 32,348 $ 12,925 Millenium Scholarship Trust Fund........... 9,781 - Queen's Bench Court Accounts............... 8,335 9,614 Public Employees' Pension Plan............. 6,279 5,714 Teachers' Superannuation Commission........ 3,876 4,171 Others..................................... 22,141 21,078 ------------------------------------------------------------------------------- 82,760 53,502 ------------------------------------------------------------------------------- OTHER...................................... 16,289 6,902 ------------------------------------------------------------------------------- TOTAL OTHER LIABILITIES $ 99,049 $ 60,404 =============================================================================== 68 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 7 - PUBLIC DEBT (thousands of dollars) --------------------------------------------------------------------------------------------------------------------- ------------------------------------------- ------------- 2002 2001 ------------------------------------------- ------------- GROSS LESS PUBLIC SINKING PUBLIC Public DEBT FUNDS(3) DEBT Debt ------------------------------------------------------------------------------------------------------------------- GOVERNMENT SERVICE ORGANIZATIONS General Revenue Fund(1)........................... $ 8,165,903 $604,004 $ 7,561,899 $ 7,405,479 Saskatchewan Opportunities Corporation............ 165,201 2,798 162,403 150,252 Saskatchewan Housing Corporation.................. 156,992 1,603 155,389 173,841 District Health Boards............................ 123,241 - 123,241 124,622 Information Services Corporation of Saskatchewan.. 54,336 - 54,336 30,246 Agricultural Credit Corporation of Saskatchewan... 39,351 - 39,351 59,835 Saskatchewan Water Corporation.................... 42,242 3,294 38,948 38,603 Crown Investments Corporation of Saskatchewan (non-consolidated) ........................... 175,027 155,017 20,010 43,203 Other............................................ 12,113 - 12,113 6,476 ------------------------------------------------------------------------------------------------------------------- DEBT OF GOVERNMENT SERVICE ORGANIZATIONS 8,934,406 766,716 8,167,690 8,032,557 ------------------------------------------------------------------------------------------------------------------- GOVERNMENT ENTERPRISES Saskatchewan Power Corporation................... 1,985,934 97,634 1,888,300 1,583,501 SaskEnergy Incorporated.......................... 857,194 15,431 841,763 717,493 Saskatchewan Telecommunications Holding Corporation.................................... 478,934 28,721 450,213 413,951 Saskatchewan Gaming Corporation.................. 35,387 - 35,387 20,093 Municipal Financing Corporation of Saskatchewan.. 33,865 - 33,865 62,075 ------------------------------------------------------------------------------------------------------------------- 3,391,314 141,786 3,249,528 2,797,113 Adjustments to March 31.......................... 33,639 8,415 25,224 245,808 ------------------------------------------------------------------------------------------------------------------- DEBT OF GOVERNMENT ENTERPRISES(2) 3,424,953 150,201 3,274,752 3,042,921 ------------------------------------------------------------------------------------------------------------------- TOTAL PUBLIC DEBT(4) $12,359,359 $916,917 $11,442,442 $ 11,075,478 ===================================================================================================================
Debt repayable in foreign currency has been restated in Canadian dollar equivalents. 1 General Revenue Fund debt is shown net of $3,149.3 million (2001 - $3,010.7 million) reimbursable from government enterprises and $458.9 million (2001 - $468.3 million) reimbursable from government service organizations. 2 The debt of government enterprises is as presented in their audited financial statements closest to March 31, 2002, as disclosed on schedule 3. The balance is adjusted for the net change to March 31, 2002. 3 See schedule 8 for information on sinking funds. 4 See schedule 9 for information on public debt by maturity. Summary Financial Statements 69 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 8 - SINKING FUNDS (thousands of dollars) ------------------------------------------------------------------------------------------------------------------------- 2001 2002 --------- ---------------------------------------------------------------- Sinking LESS CURRENCY SINKING Funds CONTRIBUTIONS EARNINGS REDEMPTIONS ADJUSTMENT FUNDS ------------------------------------------------------------------------------------------------------------------------- GOVERNMENT SERVICE ORGANIZATIONS General Revenue Fund.............. $ 507,276 $ 58,677 $ 35,216 $ - $ 2,835 $ 604,004 Crown Investments Corporation of Saskatchewan (non-consolidated). 232,992 5,000 10,850 93,825 - 155,017 Saskatchewan Water Corporation.... 2,832 302 160 - - 3,294 Saskatchewan Opportunities Corporation..................... 1,813 850 135 - - 2,798 Saskatchewan Housing Corporation.. 949 585 69 - - 1,603 Agricultural Credit Corporation of Saskatchewan................. 7,116 - 181 7,297 - - ------------------------------------------------------------------------------------------------------------------------- SINKING FUNDS OF GOVERNMENT SERVICE ORGANIZATIONS 752,978 65,414 46,611 101,122 2,835 766,716 ------------------------------------------------------------------------------------------------------------------------- GOVERNMENT ENTERPRISES Saskatchewan Power Corporation.... 77,217 9,865 7,461 - 3,091 97,634 Saskatchewan Telecommunications Holding Corporation............. 31,856 3,432 2,589 10,528 1,372 28,721 SaskEnergy Incorporated........... 54,443 5,670 1,239 45,921 - 15,431 ------------------------------------------------------------------------------------------------------------------------- 163,516 18,967 11,289 56,449 4,463 141,786 Adjustments to March 31........... (39,870) (2,340) (2,358) (56,449) (3,466) 8,415 ------------------------------------------------------------------------------------------------------------------------- SINKING FUNDS OF GOVERNMENT ENTERPRISES 123,646 16,627 8,931 - 997 150,201 ------------------------------------------------------------------------------------------------------------------------- TOTAL SINKING FUNDS $ 876,624 $ 82,041 $ 55,542 $ 101,122 $ 3,832 $ 916,917 =========================================================================================================================
The market value of sinking funds, at March 31, 2002, is $912.3 million (2001 - $890.3 million). Sinking fund earnings include gains on investment sales of $4.4 million (2001 - $7.5 million). Annual contributions, when established by Order in Council, are set at not less than 1 per cent of debentures outstanding. The redemption value is based on the market value of the sinking fund units at the date of redemption. The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements are: (thousands of dollars) -------------------------------------------------------------------------------- Government Service Government Organizations Enterprise TOTAL -------------------------------------------------------------------------------- 2002-03.................................. $ 63,796 $ 19,277 $ 83,073 2003-04.................................. 63,796 19,277 83,073 2004-05.................................. 60,906 18,480 79,386 2005-06.................................. 51,380 18,382 69,762 2006-07.................................. 49,198 17,564 66,762 -------------------------------------------------------------------------------- $ 289,076 $ 92,980 $382,056 ================================================================================ Sinking fund assets have been invested as follows: (thousands of dollars) 2002 2001 -------------------------------------------------------------------------------- Long-term Investments Governmentof Saskatchewan securities; coupon interest range 4.8% to 10.3%; maturing in 1.3 to 29.4 years................................ $ 312,711 $ 370,036 Other provincial governments' securities; coupon interest range 5.3% to 10.5%; maturing in 4.0 to 37.3 years.................................... 275,749 275,634 Government of Canada securities; coupon interest range 5.0% to 7.3%; maturing in 1.5 to 27.2 years....................................... 226,235 43,291 Government of the United States securities; coupon interest range 3.5% to 8.9%; maturing in 4.6 to 28.9 years................................ 47,628 17,558 Other long-term investments....................... - 12,951 Cash, short-term investments and accrued interest.. 54,594 157,154 -------------------------------------------------------------------------------- TOTAL SINKING FUNDS $ 916,917 $ 876,624 ================================================================================ Short-term investments include $0 (2001 - $135.7 million) Government of Saskatchewan securities. Cash, short-term investments and accrued interest are disclosed net of $2.0 million (2001 - $7.9 million) in liabilities. Included are U.S. dollar cash, investments and accrued interest converted to $337.6 million Canadian (2001 - $289.6 million) at the exchange rate in effect at March 31, 2002 of 1.5935 (2001 - 1.5774). 70 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 9 - PUBLIC DEBT BY MATURITY (thousands of dollars) ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 2002 2001 ----------------------------------------------- ---------------------- ----------------------------------------------- ---------------------- CANADIAN U.S. DOLLAR AVERAGE Average YEAR OF DOLLAR DEBT TOTAL COUPON Total Coupon MATURITY DEBT (CDN $) (CDN $) RATE (CDN$) Rate -------------------------------------------------------------------------------------------------- ------- -------------------------------------------------------------------------------------------------- ------- GOVERNMENT SERVICE ORGANIZATIONS Short-term promissory notes..... $ 232,400 $ - $ 232,400 2.26% $ 392,100 5.01% 2001-02......................... - - - - 791,515 8.42% 2002-03......................... 412,801 - 412,801 9.64% 385,870 9.96% 2003-04......................... 370,998 - 370,998 7.42% 374,010 7.41% 2004-05......................... 1,120,811 - 1,120,811 8.51% 1,126,578 8.49% 2005-06......................... 768,842 - 768,842 6.20% 721,859 6.30% 2006-07......................... 1,130,294 - 1,130,294 5.85% - - -------------------------------- --------- ---------- --------- ----- --------- ----- 1-5 YEARS 4,036,146 - 4,036,146 3,791,932 6-10 years...................... 2,049,891 - 2,049,891 6.90% 2,248,415 6.97% 11-15 years..................... 989,124 677,238 1,666,362 8.66% 1,753,230 8.74% 16-20 years..................... 104,607 478,050 582,657 8.79% 569,218 8.74% 21-25 years..................... - 159,350 159,350 8.50% 172,740 8.60% Thereafter...................... 440,000 - 440,000 6.03% 250,000 5.75% -------------------------------- --------- ---------- --------- --------- 7,619,768 1,314,638 8,934,406 8,785,535 Less: Sinking funds (519,047) (247,669) (766,716) (752,978) -------------------------------------------------------------------------------------------------- DEBT OF GOVERNMENT SERVICE ORGANIZATIONS 7,100,721 1,066,969 8,167,690 8,032,557 -------------------------------------------------------------------------------------------------- GOVERNMENT ENTERPRISES Short-term promissory notes..... 169,600 - 169,600 2.26% 241,000 5.01% 2001-02......................... - - - - 43,579 13.39% 2002-03......................... 22,042 - 22,042 12.51% 16,529 13.36% 2003-04......................... 159,430 12,748 172,178 9.38% 176,150 9.35% 2004-05......................... 210,607 - 210,607 11.45% 205,878 11.52% 2005-06......................... 194,830 - 194,830 9.82% 189,259 9.88% 2006-07......................... 131,777 - 131,777 9.51% - - -------------------------------- --------- ---------- --------- --------- 1-5 YEARS 888,286 12,748 901,034 872,395 6-10 years...................... 618,821 197,594 816,415 7.72% 918,430 7.96% 11-15 years..................... 29,811 119,512 149,323 7.36% 129,800 7.54% 16-20 years..................... 299,817 318,700 618,517 9.23% 350,646 9.10% 21-25 years..................... 196,148 318,700 514,848 8.55% 730,480 8.92% Thereafter...................... 424,816 - 424,816 6.23% 164,816 5.70% -------------------------------- --------- ---------- --------- ----- --------- 2,457,699 967,254 3,424,953 3,166,567 Less: Sinking funds (60,287) (89,914) (150,201) (123,646) ----------------------------------------------------------------------------------------------------------- DEBT OF GOVERNMENT ENTERPRISES 2,397,412 877,340 3,274,752 3,042,921 ----------------------------------------------------------------------------------------------------------- TOTAL PUBLIC DEBT $9,498,133 $1,944,309 $11,442,442 $11,075,478 ===========================================================================================================
See page 71 for additional information. Summary Financial Statements 71 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 9 (CONTINUED) - PUBLIC DEBT BY MATURITY The average effective interest rate paid on total public debt during 2001-02 was 7.96 per cent (2000-01 restated - 8.92 per cent). The average term to maturity of total public debt outstanding at March 31, 2002 is 9.2 years (2001 - 8.9 years). The average effective interest rate includes the impact of foreign exchange and the amortization of any premiums or discounts associated with the debentures. Total public debt includes Canada Pension Plan debentures of $1,219.6 million (2001 - $1,329.3 million) that are redeemable in whole or in part before maturity, on six months prior notice, at the option of the Minister of Finance of Canada. These debentures are callable in whole or in part before maturity, on 30 days prior notice, at the option of the Minister of Finance of Saskatchewan. Total public debt includes $390.0 million (2001 - $310.0 million) that provide the holder with a choice of dates on which the debt matures. The year of maturity in the previous table reflects the earliest possible date of maturity rather than the maximum term to maturity. SENSITIVITY OF DEBT CHARGES U.S. dollar debentures have been converted to Canadian dollars at the exchange rate in effect at March 31, 2002 of 1.5935 (2001 - 1.5774). A one cent change in the value of the U.S. dollar compared to the Canadian dollar from the March 31, 2002 level would change debt charges by $3.2 million in 2002-03. Debt of government service organizations includes floating rate debt of $1,632.6 million (2001 - $1,950.7 million). Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. A one percentage point increase in interest rates would result in an increase in debt charges of $16.3 million in 2002-03. DERIVATIVE FINANCIAL INSTRUMENTS Cross Currency Swaps Included in total public debt are the following foreign-denominated debt issues that have been hedged to Canadian dollars using cross currency swaps: o debentures totalling 22.5 billion yen (2001 - 22.5 billion) fully hedged to $259.2 million Canadian (2001 - $259.2 million); o debentures totalling $862.0 million U.S. (2001 restated - $862.0 million) fully hedged to $1,192.4 million Canadian (2001 restated - $1,192.4 million); o debentures totalling 102.3 million euros (2001 - 102.3 million) fully hedged to $154.1 million Canadian (2001 - $154.1 million); and o debentures totalling 0 Swiss francs (2001 - 200.0 million) fully hedged to $0 Canadian (2001 - $145.4 million). In total, the Government has cross currency swaps on a notional value of $2,089.8 million (2001 - $2,235.2 million) of debt. The Government also has future interest obligations totalling $12.5 million U.S. (2001 - $35.3 million) hedged to $17.6 million Canadian (2001 - $49.9 million). Interest Rate Swaps and Forward Rate Agreements The Government has interest rate swaps on a notional value of debt of $1,197.2 million (2001 - $997.2 million) and forward rate agreements on a notional value of debt of $125.0 million (2001 - $0). Foreign Currency Forward Exchange Contracts The Government has forward purchase commitments to acquire, during 2002-03, $3.0 million U.S. (2001 - $0) at a cost of $4.8 million Canadian (2001 - $0). 72 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 10 - GUARANTEED DEBT (thousands of dollars) ------------------------------------------------------------------------------- 2002 2001 ------------------------------------------------------------------------------- The Industry and Commerce Development Act Saskferco Products Inc. .................... $ 115,171 $ 142,797 The NewGrade Energy Inc. Act NewGrade Energy Inc. ....................... 78,093 93,038 Crown Investments Corporation of Saskatchewan (non-consolidated) NewGrade Energy Inc. ....................... 59,654 71,021 The Power Corporation Act Luscar Ltd. ................................ 23,465 25,105 National Trust Company ..................... 10,003 12,007 The Farm Financial Stability Act Breeder associations ....................... 16,224 15,970 Feeder associations ........................ 11,839 15,560 Other ........................................ 8,602 11,173 ------------------------------------------------------------------------------- TOTAL GUARANTEED DEBT $ 323,051 $ 386,671 =============================================================================== Total guaranteed debt is net of a loss provision of $1.8 million (2001 - $2.2 million). In addition to the amount shown, there is a contingent liability for interest accrued on these items. See page 73 for additional information. Summary Financial Statements 73 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 10 (CONTINUED) - GUARANTEED DEBT SASKFERCO PRODUCTS INC. (SASKFERCO) The Government has guaranteed certain medium-term notes issued by Saskferco to finance the construction of a nitrogen based fertilizer plant located near Belle Plaine. This guarantee pertains to debt denominated in U.S. dollars. Thus, the amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar. This note is due in 2003. The amount recorded is net of $120.7 million (2001 - $119.1 million) for Saskferco's equity in a sinking fund. NEWGRADE ENERGY INC. (NEWGRADE) The Government has guaranteed certain long-term debt of NewGrade to a maximum of $360 million. A significant portion of this guarantee relates to U.S. denominated debt. Thus, the amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar. At March 31, 2002, the Government's guarantee is $78.1 million (2001 - $93.0 million). The Government has also indemnified the Government of Canada for its guarantee of NewGrade's long-term debt, to a maximum of $275 million. At March 31, 2002, the Government's guarantee is $59.7 million (2001 - $71.0 million). LUSCAR LTD. The Government has guaranteed a $45 million promissory note issued by Luscar Ltd. to finance the purchase of a dragline from Saskatchewan Power Corporation. The note is due in 2003. The amount recorded is net of $21.5 million (2001 - $19.9 million) for Luscar Ltd's equity in a sinking fund administered by the Minister of Finance. NATIONAL TRUST COMPANY The Government is contingently liable for payments on certain leased mining equipment, which was assumed by the purchaser of a mining operation. The lease expires in 2004. BREEDER AND FEEDER ASSOCIATIONS The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each cattle or bison association are limited to $5 million under both the breeder and feeder options. Guarantees for each sheep association are limited to $4 million under both the breeder and feeder options. OTHER Other includes guarantees under $10 million. 74 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 11 - REVENUE (thousands of dollars) ------------------------------------------------------------------------------ 2002 2001 ------------------------------------------------------------------------------- TAXATION Individual income.......................... $ 1,196,410 $ 1,255,409 Sales...................................... 770,984 736,563 Corporation capital........................ 363,204 342,242 Fuel....................................... 353,765 345,136 Corporation income......................... 145,338 333,299 Tobacco.................................... 120,049 122,012 Other...................................... 73,578 68,595 ------------------------------------------------------------------------------- Total Taxation 3,023,328 3,203,256 ------------------------------------------------------------------------------- NON-RENEWABLE RESOURCES Oil........................................ 555,337 799,049 Potash..................................... 179,658 199,296 Natural gas................................ 129,067 239,305 Other...................................... 38,982 55,064 ------------------------------------------------------------------------------- Total Non-renewable Resources 903,044 1,292,714 ------------------------------------------------------------------------------- OTHER OWN-SOURCE REVENUE Fees, permits and licences................. 542,858 484,321 Interest and dividends..................... 91,966 114,223 Equity investments......................... 9,043 73,493 Insurance.................................. 82,682 69,635 Gain on sale of investments................ 111,517 - Other...................................... 232,081 182,071 ------------------------------------------------------------------------------- Total Other Own-source Revenue 1,070,147 923,743 ------------------------------------------------------------------------------- TOTAL OWN-SOURCE REVENUE 4,996,519 5,419,713 ------------------------------------------------------------------------------- TRANSFERS FROM THE FEDERAL GOVERNMENT Canada Health and Social Transfer........... 608,908 552,378 Equalization................................ 492,017 175,247 Crop insurance premium contributions........ 79,208 78,925 Housing subsidy............................. 52,854 55,126 Other....................................... 284,893 167,147 ------------------------------------------------------------------------------- TOTAL TRANSFERS FROM THE FEDERAL GOVERNMENT 1,517,880 1,028,823 ------------------------------------------------------------------------------- TOTAL REVENUE $ 6,514,399 $ 6,448,536 =============================================================================== Summary Financial Statements 75 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS Schedule 12 - Gains and Losses on Other Investments
(thousands of dollars) ----------------------------------------------------------------------------------------------------------------------- 2002 2001 ----------------------------------------------------------------------------------------------------------------------- GAIN (LOSS) ON SALE OF OTHER INVESTMENTS Cameco Corporation......................................................... $ 111,517 $ - ----------------------------------------------------------------------------------------------------------------------- Gain on Sale of Other Investments 111,517 - ----------------------------------------------------------------------------------------------------------------------- EARNINGS (LOSSES) FROM EQUITY INVESTMENTS NewGrade Energy Inc. ...................................................... 19,735 51,809 Saskferco Products Inc. ................................................... 3,225 3,065 Foragen Technologies Limited Partnership................................... (725) - Centennial Foods Partnership............................................... (337) (61) Meadow Lake Pulp Limited Partnership....................................... (15,009) 17,712 Other...................................................................... 2,154 968 ----------------------------------------------------------------------------------------------------------------------- Net Earnings from Equity Investments 9,043 73,493 ----------------------------------------------------------------------------------------------------------------------- PROVISION FOR INVESTMENT LOSSES............................................ (6,164) (3,543) ----------------------------------------------------------------------------------------------------------------------- GAIN ON OTHER INVESTMENTS $ 114,396 $ 69,950 ======================================================================================================================= SCHEDULE 13 - NET CHANGE IN NON-CASH OPERATING ACTIVITIES (thousands of dollars) ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- 2002 2001 ----------------------------------------------------------------------------------------------------------------------- Decrease (increase) in prepaid expenditures................................ $ (3,741) $ (7,409) Decrease (increase) in accounts receivable................................. (47,166) 141,273 Decrease (increase) in inventories held for resale......................... 53 (858) Decrease (increase) in deferred charges.................................... 7,419 (23,467) Increase (decrease) in accounts payable and accrued liabilities............ (71,159) (292,925) Increase (decrease) in unearned revenue.................................... 17,297 19,882 ----------------------------------------------------------------------------------------------------------------------- NET CHANGE IN NON-CASH OPERATING ACTIVITIES $ (97,297) $ (163,504) =======================================================================================================================
76 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GOVERNMENT OF SASKATCHEWAN SCHEDULES TO THE SUMMARY FINANCIAL STATEMENTS SCHEDULE 14 - REPORTING ENTITY GOVERNMENT SERVICE ORGANIZATIONS (CONSOLIDATED)
---------------------------------------------------------- --------------------------------------------------------- Agricultural Credit Corporation of Saskatchewan Saskatchewan Apprenticeship and Trade Certification Commission (4a) Agricultural Implements Board Saskatchewan Archives Board Agri-Food Equity Fund Saskatchewan Arts Board Agri-Food Innovation Fund Saskatchewan Cancer Foundation Board of Governors, Uranium City Hospital Saskatchewan Centre of the Arts Fund Cattle Marketing Deductions Fund Saskatchewan Communications Network Corporation CIC Industrial Interests Inc. (4c) Saskatchewan Crop Insurance Corporation Commercial Revolving Fund Saskatchewan Development Fund Corporation (4c) Community Initiatives Fund (2) Saskatchewan Grain Car Corporation (4b) Correctional Facilities Industries Revolving Fund Saskatchewan Health Information Network Correspondence School Revolving Fund Saskatchewan Heritage Foundation Crop Reinsurance Fund of Saskatchewan Saskatchewan Housing Corporation (4c) Crown Investments Corporation of Saskatchewan Saskatchewan Institute of Applied Science and Technology (4a) (non-consolidated) (4c) Saskatchewan Legal Aid Commission District Health Boards Saskatchewan Lotteries Trust Fund For Sport, Culture and Extended Health Care Plan (4c) Recreation Extended Health Care Plan for Certain Other Employees (4c) Saskatchewan Opportunities Corporation (4c) Fiscal Stabilization Fund Saskatchewan Property Management Corporation Fish and Wildlife Development Fund Saskatchewan Research Council Forest Fire Contingency Fund (1) Saskatchewan Student Aid Fund General Revenue Fund Saskatchewan Transportation Company (4c) Government House Foundation (1) Saskatchewan Water Corporation (4c) Health Services Utilization and Research Commission Saskatchewan Western Development Museum Highways Revolving Fund Saskatchewan Wetland Conservation Corporation Horned Cattle Fund Sask911 Account Information Services Corporation of Saskatchewan (4c) St. Louis Alcoholism Rehabilitation Centre Law Reform Commission of Saskatchewan Training Completions Fund Learning Resources Distribution Centre Revolving Fund Transportation Partnerships Fund Livestock Services Revolving Fund Victims' Fund Milk Control Board (4c) Water Appeal Board Northern Revenue Sharing Trust Account (4c) Oil and Gas Environmental Fund GOVERNMENT ENTERPRISES (MODIFIED EQUITY METHOD) Operator Certification Board Municipal Financing Corporation of Saskatchewan Pastures Revolving Fund Saskatchewan Auto Fund Prairie Agricultural Machinery Institute Saskatchewan Gaming Corporation Public Employees Benefits Agency Revolving Fund Saskatchewan Government Growth Fund Management Public Employees Dental Fund (4c) Corporation Public Employees Disability Income Fund (4c) Saskatchewan Government Insurance Public Employees Group Life Insurance Fund (4c) Saskatchewan Liquor and Gaming Authority Queen's Printer Revolving Fund Saskatchewan Power Corporation Regional Colleges(3),(4a) Saskatchewan Telecommunications Holding Corporation Resource Protection and Development Revolving Fund SaskEnergy Incorporated Saskatchewan Agricultural Stabilization Fund Workers' Compensation Board (Saskatchewan)
1 Organization established during 2001-02. 2 Name changed from Associated Entities Fund during 2001-02. 3 Includes eight colleges that were listed separately in previous years. 4 The year-ends of certain government service organizations differ from March 31, 2002: (a) June 2001; (b) July 2001; and (c) December 2001. GENERAL REVENUE FUND - DETAILS OF DEBENTURES (UNAUDITED)
78 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Public Issue Debentures As at March 31, 2002 ============================================================================================================================ Interest Equity of Sinking Fund Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2001-02 ---------------------------------------------------------------------------------------------------------------------------- July 15/97 July 15/02 4.00 Annual Can. GRF.........28,347,300 28,347,300 --- --- ------------ (Savings bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 1998; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) July 29/92 July 29/02 8.75 Semiannual Can. GRF.........47,700,000 47,700,000 --- --- ------------ (The original 6.04% 5,000,000,000 Japanese Yen loan has been converted by forward contract to Canadian dollars resulting in an all-in-cost of 8.75%; Non-callable; Payable in Tokyo) Sept. 30/92 Sept. 30/02 8.21 Semiannual Can. GRF.........49,613,664 49,613,664 --- --- ------------ (The original 6% 5,000,000,000 Japanese Yen loan has been converted by forward contract to Canadian dollars resulting in an all-in-cost of 8.21%; Non-callable; Payable in Tokyo) Feb. 12/93 Feb. 12/03 9.055 Semiannual Can. CIC........154,107,820 154,107,820 149,915,442 --- ------------ (The original 102,258,400 Euro issue carried interest at 11% paid annually for two years and a floating interest rate paid semi-annually for the remaining term of the debentures; Principal and interest payments have been converted by forward contract to Canadian dollars with an all-in-cost of 9.055%; Non-callable; Payable in Frankfurt/Main, Zurich, London, Luxembourg) July 20/93 July 15/03 6.625 Semiannual U.S. GRF........191,850,000 24,105,811 2,268,600 SaskPower.. 50,000,000(*) 241,850,000 5,614,855(*) 756,200(**) ------------ (The General Revenue Fund $150,000,000 U.S. share of this debenture issue has been swapped into Canadian dollars with an effective interest rate of 8.32%; Non-callable; Payable in New York) July 15/98 July 15/03 5.00 Annual Can. GRF.........73,382,700 73,382,700 --- --- ------------ (Savings bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 1999; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) Aug. 31/93 Aug. 31/03 8.20 Semiannual Can. GRF.........31,040,865 31,040,865 --- --- ------------ (The original 5.2% 2,500,000,000 Japanese Yen loan has been swapped into Canadian dollars with an effective interest rate of 8.2%; Non-callable; Payable in Tokyo) March 1/01 March 1/04 5.00-6.80 Semiannual Can. GRF.........50,000,000 50,000,000 502,305 500,000 ------------ (Canadian medium term note; If not redeemed by the holder on March 1, 2004, this note matures on March 1, 2011; This note pays interest of 5% to March 1, 2004 and 6.8% thereafter; This book-based note is held in the Canadian Depository for Securities) May 10/94 May 10/04 8.82 Semiannual Can. GRF.........67,116,600 67,116,600 --- --- ------------ (The original 4.48% 5,000,000,000 Japanese Yen loan has been swapped into Canadian dollars with an effective interest rate of 8.82%; Non-callable; Payable in Tokyo)
Details of Debentures 79 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Public Issue Debentures ============================================================================================================================ Interest Equity of Sinking Fund Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2001-02 ---------------------------------------------------------------------------------------------------------------------------- June 22/99 June 17/04 5.50-5.75 Semiannual Can. SOCO........25,000,000 25,000,000 --- --- ------------ (Canadian medium term note; If not redeemed by the holder on June 17, 2004, this note matures on June 17, 2019; This note pays interest of 5.50% to June 17, 2004 and 5.75% thereafter; This book-based note is held in the Canadian Depository for Securities) July 15/99 July 15/04 5.00 Annual Can. GRF........144,103,100 144,103,100 --- --- ------------ (Savings bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 2000; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) July 26/94 July 15/04 Var. Semiannual Can. GRF........553,094,588 553,094,588 53,418,684 6,049,600 ------------ (The original 8% $400,000,000 U.S. debentures have been swapped into Canadian dollars: $200,000,000 at 9.83%, $127,587,285 at 4.98% and $72,412,715 at 4.982%; Payable in New York) Aug. 16/94 Aug. 16/04 9.50 Semiannual Can. GRF........300,000,000 300,000,000 27,919,241 3,000,000 ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada) Dec. 30/86 Dec. 30/04 9.625 Semiannual Can. SaskPower.. 89,300,000 SaskEnergy..10,700,000 100,000,000 --- --- ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada) Feb. 17/00 Jan. 25/05 6.10-6.25 Semiannual Can. SOCO........25,000,000 25,000,000 522,025 250,000 ------------ (Canadian medium term note; If not redeemed by the holder on January 25, 2005, this note matures on January 25, 2030; This note pays interest at 6.10% to January 25, 2005 and 6.25% thereafter; This book-based note is held in the Canadian Depository for Securities) Jan. 16/02 April 1/05 4.205 Semiannual Can. GRF........ 50,000,000 50,000,000 --- --- (The original floating rate debt pays interest at the three month bankers' acceptance rate plus 0.09%. This has been swapped into a fixed rate obligation paying 4.205%; This book-based note is held in the Canadian Depository for Securities) July 15/00 July 15/05 5.75 Annual Can. GRF........486,944,700 486,944,700 --- --- ------------ (Savings Bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 2001; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) Dec. 19/95 Dec. 19/05 7.50 Semiannual Can. GRF........218,200,000 SaskWater.. 6,800,000 SaskEnergy. 75,000,000 300,000,000 22,511,598 3,084,000 ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities)
80 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Public Issue Debentures ============================================================================================================================ Interest Equity of Sinking Fund Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2001-02 ---------------------------------------------------------------------------------------------------------------------------- March 24/99 March 5/06 5.00-5.60 Semiannual Can. SaskTel.....35,000,000 SaskEnergy..25,000,000 60,000,000 --- --- ------------ (Canadian medium term note; If not redeemed by the holder on March 5, 2006, this note matures on March 5, 2029; This note pays interest at 5% to March 5, 2006 and 5.6% thereafter; This book-based note is held in the Canadian Depository for Securities) Oct. 27/00 June 1/06 6.00 Semiannual Can. GRF........240,000,000 SOCO........10,000,000 250,000,000 --- --- ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) July 15/01 July 15/06 4.25 Annual Can. GRF.........49,305,700 49,305,700 --- --- ------------ (Savings Bond; Redeemable annually at the option of the holder or any time on the death of the holder; The Province reserves the right to increase the interest rate after July 14, 2002; Payable at any Saskatchewan branch of a chartered bank, trust company and the Credit Union Central of Saskatchewan) Aug. 23/96 Aug. 23/06 7.846 Semiannual Can. GRF.........63,684,000 63,684,000 --- --- ------------ (The original 3.451% 5,000,000,000 Japanese Yen loan has been converted by forward contract to Canadian dollars resulting in an all-in-cost of 7.846%; Non-callable; Payable in Tokyo) Nov. 1/01 Dec. 1/06 4.75 Semiannual Can. GRF........260,000,000 SOCO........10,000,000 ISC.........30,000,000 300,000,000 --- --- ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) Jan. 25/00 Jan. 25/07 6.35 Semiannual Can. GRF.........30,000,000 30,000,000 626,430 300,000 ------------ (Canadian medium term note; Extendible at the option of the holder to January 25, 2030; This book-based note is held in the Canadian Depository for Securities) Jan. 25/00 Jan. 25/07 5.49-6.35 Semiannual Can. GRF........170,000,000 170,000,000 3,010,165 1,700,000 ------------ (Canadian medium term note; Extendible at the option of the holder to January 25, 2030; The original note paid interest at 6.20% to January 25, 2007, and 6.35% thereafter; This has been swapped into an obligation paying 5.49% to January 25, 2007, and 6.35% thereafter; This issue was reopened on January 17, 2002 and an additional $50,000,000 of notes were sold; This book-based note is held in the Canadian Depository for Securities) March 9/00 March 9/07 6.25 Semiannual Can. GRF........250,000,000 250,000,000 --- --- ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) May 15/97 May 15/07 6.65 Semiannual Can. SaskEnergy..30,000,000 30,000,000 1,403,441 300,000 ------------ (Canadian medium term note; Non-callable; This book-based note is held in the Canadian Depository for Securities)
Details of Debentures 81 -----------------------------------------------------------------------------
GENERAL REVENUE FUND Public Issue Debentures ============================================================================================================================ Interest Equity of Sinking Fund Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2001-02 ---------------------------------------------------------------------------------------------------------------------------- Jan. 31/02 Sept. 6/07 5.00 Semiannual Can. GRF........400,000,000 400,000,000 --- --- ------------ (Non-callable; $200,000,000 of the 5.00% debenture issue has been swapped to floating rate debt to pay interest at the three month bankers' acceptance rate plus 0.025%. This book-based note is held in the Canadian Depository for Securities) March 2/83 March 1/08 9.00 Annual Can. SaskEnergy..50,000,000 50,000,000 --- --- ------------ (Non-callable; Payable in London and Toronto) March 15/93 March 15/08 7.125 Semiannual U.S. SaskPower..194,000,000 194,000,000(*) 24,738,874(*) 3,094,688(**) ------------ (Non-callable; Payable in New York) Nov. 28/97 May 28/08 5.50 Semiannual Can. SOCO........20,000,000 20,000,000 935,627 200,000 ------------ (Canadian medium term note; Non-callable; This book-based note is held in the Canadian Depository for Securities) Feb. 26/98 June 2/08 5.50 Semiannual Can. GRF........328,500,000 SOCO........40,000,000 SaskEnergy..25,000,000 SaskHousing 6,500,000 400,000,000 13,398,781 4,000,000 ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) Feb. 13/02 Feb. 13/09 5.05 Semiannual Can. SaskHousing 24,500,000 SPMC.........5,500,000 30,000,000 --- --- ------------ (Canadian medium term note; Extendible at the option of the holder to February 13, 2032; This note pays interest at 5.05% to February 13, 2009 and 6.30% thereafter; This book-based note is held in the Canadian Depository for Securities) Nov. 12/99 Nov. 12/09 6.50 Semiannual Can. GRF........250,000,000 250,000,000 5,276,200 2,500,000 ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) Jan. 18/90 Jan. 18/10 10.00 Semiannual Can. GRF........300,000,000 300,000,000 60,447,837 3,000,000 ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada) Sept. 1/00 Sept. 1/10 6.15 Semiannual Can. GRF........380,000,000 SaskTel.....90,000,000 SaskEnergy..80,000,000 550,000,000 5,689,331 5,500,000 ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) Feb. 2/93 Feb. 1/13 8.00 Semiannual U.S. GRF (Can$).292,060,000 12,802,960 6,362,800 GRF........200,000,000(*) 492,060,000 41,408,182(*) --- ------------ (Non-callable; $200,000,000 of the U.S. $400,000,000 debenture issue has been swapped to Canadian dollars with an effective interest rate of 7.25%; Payable in New York) July 20/93 July 15/13 7.375 Semiannual U.S. GRF........225,000,000 SaskPower.. 75,000,000 300,000,000(*) 33,689,130(*) 4,580,425(**) ------------ (Non-callable; Payable in New York) March 14/91 April 10/14 10.25 Semiannual Can. GRF........583,916,000 583,916,000 93,773,475 5,839,160 ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada)
82 Public Accounts, 2001-02 ----------------------------------------------------------------------------- GENERAL REVENUE FUND Public Issue Debentures ============================================================================================================================ Interest Equity of Sinking Fund Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2001-02 ---------------------------------------------------------------------------------------------------------------------------- Dec. 1/65 Dec. 1/15 5.125 Semiannual Can. GRF..........1,182,489 U. of S. ......330,887 1,513,376 --- --- ------------ (Payable in blended semi-annual payments of principal and interest totalling $76,399.60; Payable in whole or in part any time prior to December 1, 2015, without penalty; Payable in Ottawa) Sept. 17/96 Sept. 17/16 7.93 Semiannual Can. SaskWater...17,184,000 17,184,000 --- --- ------------ (Canadian medium term serial note; Payable in annual instalments; Non-callable; Payable in Regina) Dec. 20/90 Dec. 15/20 9.375 Semiannual U.S. GRF........100,000,000 SaskPower..100,000,000 SaskTel....100,000,000 300,000,000(*) 34,282,764(*) 4,716,800(**) ------------ (Non-callable; Payable in New York) Feb. 26/91 Feb. 15/21 9.125 Semiannual U.S. GRF........200,000,000 200,000,000(*) 32,863,448(*) 3,189,560(**) ------------ (Non-callable; Payable in New York) Feb. 4/92 Feb. 4/22 9.60 Semiannual Can. SaskPower..240,000,000 SaskWater...15,000,000 255,000,000 35,604,047 2,550,000 ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada) July 21/92 July 15/22 8.50 Semiannual U.S. GRF........100,000,000 SaskPower..200,000,000 300,000,000(*) 39,253,059(*) 4,594,833(**) ------------ (Non-callable; Payable in New York) May 30/95 May 30/25 8.75 Semiannual Can. SaskPower..100,000,000 SaskEnergy..75,000,000 175,000,000 13,559,393 1,750,000 ------------ (Non-callable; Payable at any Canadian branch of the Royal Bank of Canada) Dec. 4/98 March 5/29 5.75 Semiannual Can. GRF........250,000,000 SaskTel.....75,000,000 SaskEnergy..25,000,000 350,000,000 8,371,865 3,500,000 ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) Dec. 10/01 Sept. 5/31 6.40 Semiannual Can. GRF........190,000,000 SaskPower..200,000,000 SaskEnergy..60,000,000 450,000,000 --- --- ------------ (Non-callable; This book-based note is held in the Canadian Depository for Securities) * Adjustment to reflect conversion of debentures and related sinking funds quoted in foreign currencies to Canadian dollars using the exchange rate in effect at March 31, 2002 (U.S. $1.5935) 916,364,000 125,733,160 --- ------------------------------------------ 10,465,328,413 871,378,130 73,586,666 Various debentures issued to finance union hospital debt 2,702 --- --- ---------------------------------------------------------------------------------------------------------------------------- TOTAL $10,465,331,115 $871,378,130 $73,586,666 ============================================================================================================================
** Sinking fund contributions to U.S. dollar sinking funds are made in U.S. dollars. Contributions for general government purposes are shown at the cost in Canadian dollars to purchase U.S. dollars equal to the contribution amount. Contributions for Crown corporation purposes are converted to Canadian dollars at the U.S./Canadian exchange rate at the date the contribution was made. Details of Debentures 83 -----------------------------------------------------------------------------
Details of Debentures 83 ----------------------------------------------------------------------------------------------------------------------- GENERAL REVENUE FUND Debentures Issued to the Minister of Finance of Canada As at March 31, 2002 ================================================================================================================ INTEREST AMOUNT Date of Issue Date of Maturity Rate % Outstanding ---------------------------------------------------------------------------------------------------------------- Canada Pension Plan Investment Fund(*) April 1982 - March 1983 April 2002 - March 2003 14.67 110,084,000 April 1983 - March 1984 April 2003 - March 2004 11.60 109,328,000 April 1984 - March 1985 April 2004 - March 2005 13.37 104,274,000 April 1985 - March 1986 April 2005 - March 2006 11.48 112,507,000 April 1986 - March 1987 April 2006 - March 2007 9.61 133,709,000 April 1987 - March 1988 April 2007 - March 2008 9.61 88,333,000 April 1988 - March 1989 April 2008 - March 2009 10.08 93,932,000 April 1989 - March 1990 April 2009 - March 2010(**) 9.90 101,867,000 April 1990 - March 1991 April 2010 - March 2011(**) 10.85 90,318,000 April 1991 - March 1992 April 2011 - March 2012(**) 9.92 90,664,000 April 1992 - March 1993 April 2012 - March 2013(**) 9.37 62,705,000 April 1999 - March 2000 April 2019 - March 2020(**) 6.34 46,335,000 April 2000 - March 2001 April 2020 - March 2021(**) 6.54 75,553,000 ---------------------------------------------------------------------------------------------------------------- 1,219,609,000 THE MUNICIPAL DEVELOPMENT LOAN FUND 1965 - 1967 2005 - 2007 5.38 18,087 AGRICULTURAL SERVICE CENTRES LOAN AGREEMENT 1984 - 1985 2003 - 2004 12.28 48,249 ---------------------------------------------------------------------------------------------------------------- TOTAL $ 1,219,675,336 ================================================================================================================
* Canada Pension Debentures have a 20 year maturity and are redeemable in whole or in part before maturity, on six months prior notice at the option of the Minister of Finance of Canada. These debentures are callable in whole or in part before maturity, on 30 days prior notice at the option of the Minister of Finance of Saskatchewan. ** Subject in part to annual sinking funds; equity in sinking funds at March 31, 2002, $45,539,277. This page left blank intentionally GLOSSARY OF TERMS This page left blank intentionally Glossary of Terms 87 ----------------------------------------------------------------------------- Glossary of Terms ACCRUAL ACCOUNTING GENERAL REVENUE FUND (GRF) The method of accounting used to prepare The fund into which all revenues are the financial statements. This is the paid, unless otherwise provided for method of accounting recommended by the by Legislation, and from which all Public Sector Accounting and Auditing expenditures are appropriated by the Board of the Canadian Institute of Legislative Assembly. Chartered Accountants. Accrual accounting recognizes financial GENERAL REVENUE FUND FINANCIAL transactions at the time they occur, STATEMENTS regardless of whether any cash is The financial statements prepared to received or paid. account for the moneys appropriated by the Legislative Assembly. ACCUMULATED DEFICIT The amount by which expenditures have GOVERNMENT ENTERPRISES exceeded revenues from the beginning of Government organizations that have incorporation (1905). It is the sum of the financial and operating all annual deficits and surpluses plus authority to carry on a business. any adjustments that were charged This includes contracting in their directly to the accumulated deficit. own name, and selling goods and services to individuals and BUDGET non-government organizations as The amount presented in the Estimates. their principal activity and source of revenue. Government enterprises CONSOLIDATION are recorded in the Summary The method used to account for government Financial Statements using the service organizations in the Summary modified equity method. Financial Statements. The accounts are adjusted to the basis of accounting used GOVERNMENT SERVICE ORGANIZATIONS by the General Revenue Fund and then Those organizations that are added together. Inter-entity transactions accountable to government and either are eliminated. owned or controlled by government, and are not government enterprises. DEBT Government service organizations are The term "debt" is used in a number of consolidated in the Summary ways. Financial Statements after adjusting them to a basis consistent with the C DEBT (GRF) - the total debt issued for accounting policies of the GRF. general government purposes and for Crown corporations, net of sinking MODIFIED EQUITY funds; The method by which government enterprises are included in the C TOTAL DEBT (GRF) - the total debt Summary Financial Statements. The issued for general government purposes Government's investment, which is and for Crown corporations, net of originally recorded at cost, is sinking funds, plus guaranteed debt; adjusted annually to include the net earnings/losses and other net equity C PUBLIC DEBT (SFS) - the debt of changes of the enterprise without government service organizations, net adjusting them to conform with the of sinking funds; accounting policies of the GRF. Inter-organizational transactions C TOTAL PUBLIC DEBT (SFS) - the debt of are not eliminated. government service organizations and government enterprises, net of sinking PENSION LIABILITY funds. An actuarial estimate of discounted future payments to be made to C GUARANTEED DEBT - the debt of Crown retirees under Government pension corporations and others that the plans, net of plan assets. Government has agreed to repay if they are unable to do so; and, SUMMARY FINANCIAL STATEMENTS REPORTING ENTITY C SINKING FUNDS - the amount of The Summary Financial Statements money which has been set aside for the reporting entity includes the repayment of debt. financial activities of organizations which are accountable DEBT REDUCTION ACCOUNT for the administration of their This account is established pursuant to financial affairs and resources The Balanced Budget Act. The Debt either to a Minister of the Reduction Account is an accounting of the Government or directly to the accumulated surpluses of the General Legislative Assembly and which are Revenue Fund commencing April 1, 1995. owned or controlled by the Government. Trusts administered by FISCAL STABILIZATION FUND (FSF) the Government are excluded from the The fund established to stabilize the reporting entity. fiscal position of the Government to facilitate long term planning. SUMMARY FINANCIAL STATEMENTS (SFS) Stabilization occurs through transfers The statements prepared to account between the FSF and the GRF. for the full nature and extent of the financial activities authorized by the Legislative Assembly and administered through government departments, special funds, agencies and enterprises. This page left blank intentionally