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1991-92 


Public 
Accounts 
Volume  1 


CONSOLIDATED  REPORTING  ENTITY, 
TRUST  FUNDS  AND  SUMMARIES  OF 
FINANCIAL  INFORMATION  REPORTS 

FOR  THE  FISCAL  YEAR  ENDED 
MARCH  31,  1992 


PROVINCE  OF 
BRITISH  COLUMBIA 

MINISTRY  OF 
FINANCE  AND 
CORPORATE  RELATIONS 


HON.  GLEN  CLARK 

Minister  of  Finance  and  Corporate  Relations 


British  Columbia  Cataloguing  in  Publication  Data 

British  Columbia.  Ministry  of  Finance  and  Corporate 
Relations 

Public  accounts  of  British  Columbia.  —  1 985/86- 
Annual. 

Title  varies  slightly. 

Continues;  British  Columbia.  Ministry  of  Finance. 

Public  accounts  of  British  Columbia.  ISSN  0382-2001 
Report  year  ends  March  31 . 

Issued  in  3  Vols.,1 985/86  —  1 988/89;  2  Vols.,1 989/90 
ISSN  0382-2001  =  Public  accounts  of  British 
Columbia. 

1 .  Finance,  Public  —  British  Columbia  —  Accounting  — 
Periodicals.  I.  Title. 

HJ13.B75  354.71 1007231 '05 

Rev.  July  1990 


The  Honourable  David  C.  Lam,  c.m.,  b.a.,  m.b.a.,  ll.d. 

Lieutenant  Governor  of  the  Province  of  British  Columbia. 

May  it  please  Your  Honour: 

The  undersigned  has  the  honour  to  present  the  Public  Accounts  of  the  Province  of  British  Columbia  for  the 
fiscal  year  ended  March  31,1 992. 


GLEN  CLARK 

Minister  of  Finance 
and  Corporate  Relations 

Ministry  of  Finance 
and  Corporate  Relations 
Victoria,  British  Columbia 
November  30,  1992 


November  30,  1 992 
Victoria,  British  Columbia 


The  Honourable  GLEN  CLARK 

Minister  of  Finance  and  Corporate  Relations 

SIR:  I  have  the  honour  to  submit  herewith  the  Public  Accounts  of  the  Province  of  British  Columbia  for  the 
fiscal  year  ended  March  31,1 992. 

Respectfully  submitted. 


ALANJ.  BARNARD 

Deputy  Comptroller  General 
Acting  for  the  Comptroller  General 


Digitized  by  the  Internet  Archive 
in  2018  with  funding  from 
University  of  Alberta  Libraries 


https://archive.org/details/britishcolumbiap02brit_15 


Contents 


Volume  I  —  Section 

Consolidated  Reporting  Entity,  Trust  Funds  and  Summaries  of  Financial  Information  Reports 

Introduction .  A 

Summary  Financial  Statements .  B 

Financial  Statements  of  Government  Organizations  and  Enterprises .  C 

Trust  Funds  Financial  Statements .  D 

Summaries  of  Financial  Statements  of  Corporations  and  Agencies  to  which  the  Financial  Information 
Acfapplies .  E 

(A  table  of  contents  is  provided  at  the  beginning  of  each  section.) 


Note:  There  is  another  volume  of  the  Public  Accounts,  entitled:  Volume  II  —  Financial  Statements  and 
Schedules  of  the  Consolidated  Revenue  Fund. 


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Introduction 

Contents 

Page 

Government  Financial  Statements .  9 

— Statement  of  Responsibility  for  Government  Financial  Statements .  1 0 

— Significant  Accounting  Policies .  10 

Public  Accounts  Content . .  1 3 


> 


Introduction 


The  Public  Accounts  are  the  documents  that  contain  the  audited  financial  statements  of  the  government  and 
other  financial  information  presented  to  the  Legislative  Assembly  to  show  compliance  with  the  various  statutory 
authorities.  The  government's  financial  statements  are  prepared  in  accordance  with  the  accounting  policies 
described  in  this  Introduction  and  on  a  basis  consistent  with  that  of  the  preceding  year,  except  where  a  change  or 
variation  is  explicitly  described  in  the  Significant  Accounting  Policies  section  below. 

Government  Financial  Statements 

The  government  carries  on  its  activities  through  a  variety  of  appropriations,  special  funds,  corporations  and 
agencies.  Financial  statements  are  prepared  to  incorporate  two  levels  of  activity  under  its  authority:  the 
Consolidated  Revenue  Fund  Financial  Statements  and  the  Summary  Financial  Statements. 

Consolidated  Revenue  Fund  statements  incorporate  the  General  Fund  (main  operating  account  and  special 
accounts)  and  Special  Funds  such  as  the  Privatization  Benefits  Fund.  These  represent  the  funds  over  which  the 
government  has  direct  control.  When  the  Consolidated  Revenue  Fund  is  consolidated  with  government  organiza¬ 
tions  and  enterprises,  the  result  is  the  Summary  Financial  Statements.  This  is  graphically  illustrated  below: 


Main 

Operating 

Account 

Special 

Accounts 

General 

Fund 


Consolidated 
Revenue  Fund 
Financial 
Statements 


Privatization 
Benefits 
Special  Fund 


\ 


Summary 

Financial 

Statements 


Government 
Organizations 
and  Enterprises 

(each  publishing  its  own 
financial  statements) 


Each  set  of  financial  statements  includes  the  following: 

•  Balance  Sheet — a  statement  of  financial  position,  showing  recorded  assets  and  liabilities,  with  the 
residual  difference  being  net  equity.  In  addition  to  the  recorded  assets,  the  province  owns  a  significant 
number  of  physical  assets,  including  highways,  bridges,  ferries  and  Crown  land,  which  includes 
parks,  forests  and  all  other  publicly  held  land  in  the  province. 

•  Statement  of  Revenue  and  Expenditure — a  statement  summarizing  the  items  of  revenue  and  expendi¬ 
ture  for  the  fiscal  year.  The  net  revenue  or  expenditure  for  a  year  represents  the  change  in  net  equity 
for  the  same  period. 


A  10 


PROVINCE  OF  BRITISH  COLUMBIA 


•  Statement  of  Changes  in  Cash  and  Temporary  Investments— a  statement  showing  how  the  operating 
transactions  (being  those  expenditures  and  other  transactions  which  affect  operating  results)  and 
financing  transactions  (being  those  transactions  such  as  loans  which  affect  the  financial  position  but 
not  the  operating  results)  have  affected  the  cash  and  temporary  investments  position  of  the 
government. 

•  Notes  and  Supplementary  Statements  to  Financial  Statement^these  provide  additional  information 
on  the  amounts  included  in  the  financial  statements  and  they  form  an  integral  part  of  the  financial 
statements. 

Statement  of  Responsibility  for  Government  Financial  Statements 

Responsibility  for  the  integrity  and  objectivity  of  the  government's  financial  statements  rests  with  the 
government.  The  financial  statements  are  prepared  by  the  Comptroller  General  under  the  direction  of  the  Treasury 
Board,  pursuant  to  section  8  (2)  of  the  Financial  Administration  Act,  in  accordance  with  the  government's  stated 
accounting  policies.  Each  financial  statement  covers  the  fiscal  year  of  the  government,  which  is  from  April  1  to 
March  31  of  the  following  year. 

Significant  Accounting  Policies 

The  government's  financial  statements  are  prepared  in  accordance  with  the  accounting  policies  described 
below  and  on  a  basis  consistent  with  that  of  the  preceding  year,  except  where  a  change  or  variation  is  explicitly 
described  in  the  1 992  Changes  in  Accounting  Policy  section. 

Basis  OF  Accounting 

The  accrual  basis  of  accounting  is  used,  which  is  specifically  expressed  as  follows: 

Revenue 

All  revenues  are  recorded  on  an  accrual  basis  except  where  the  accruals  cannot  be  determined  with  a 
reasonable  degree  of  certainty  or  where  their  estimation  is  impracticable.  The  exceptions,  which  normally 
relate  to  certain  payments  to  the  province  under  the  Federal-Provincial  Fiscal  Arrangements  and  Federal 
Post-Secondary  Education  and  Flealth  Contributions  Act,  1977,  are  recorded  on  a  cash  basis.  Revenues  from 
government  enterprises  are  recognized  when  cash  transfers  are  received  or  when  dividends  are  declared. 

Expenditure 

All  expenditures,  includingthe  costoffixed  assets,  are  recorded  for  goods  and  services  received  during 
the  year.  Grants  (which  include  forgivable  loans)  are  recorded  as  expenditure  when  disbursement  of  the 
funds  has  been  authorized.  Contributions  are  recorded  as  expenditure  at  the  earlier  of: 

(i)  the  date  payment  has  been  authorized;  or, 

(ii)  the  date  on  which  performance  conditions  are  achieved  by  the  recipient  under  provisions  of  a 
statute,  contract  or  agreement. 

Authorized  contributions  relating  to  retroactive  wage  settlements  are  recorded  as  an  expenditure  of  the 
period  during  which  the  services  were  provided. 

Recoveries  of  expenditure  may  be  recorded  as  a  credit  to  the  appropriate  expenditure  account  when : 

(i)  they  can  be  specifically  identified  with  the  expenditure  transactions  and  payment  has  actually 
been  made  from  an  appropriation; 

(ii)  provision  for  them  has  been  approved  through  the  Estimates;  and 

(iii)  the  expenditure  to  which  they  relate  was  incurred  in  the  same  fiscal  year. 

Tax  c  red  its/off  sets  are  accrued  on  the  same  basis  as  the  associated  tax  revenues. 

Assets 

All  assets  are  recorded  to  the  extent  that  they  represent  cash  and  claims  upon  outside  parties  or  items 
held  for  resale  to  outside  parties  as  a  result  of  events  and  transactions  prior  to  the  year-end.  Rental  payments 
for  leases  which  transfer  the  benefits  and  risks  incident  to  the  ownership  of  certain  assets,  not  including 
special  purpose  buildings,  are  reported  as  expenditures  at  the  dates  of  inception  of  the  leases. 

Liabilities 

All  liabilities  are  recorded  to  the  extent  that  they  represent  claims  payable  to  outside  parties  as  a  result 
of  events  and  transactions  prior  to  the  year-end,  including:  probable  losses  on  loan  guarantees  issued  by  the 
government;  contingent  liabilities  when  it  is  likely  a  liability  exists  and  the  amount  of  the  liability  can  be 


PUBLIC  ACCOUNTS  1 991  \92 


All 


reasonably  determined  on  an  individual  or  portfolio  basis;  and,  unfunded  pension  liabilities  calculated  using 
the  Level  Contribution  Funding  Actuarial  Cost  Method. 

Changes  in  the  unfunded  liability  for  pension  plans  which  arise  as  a  result  of  estimation  adjustments 
due  to  experience  gains  and  losses  and  changes  in  actuarial  assumptions  are  amortized  over  expected 
average  remaining  service  life  of  the  related  employee  group.  Gains  or  losses  arising  as  a  result  of  plan 
amendments  are  recognized  in  full  in  the  year  of  amendment. 

Foreign  Currency  Translation 

Monetary  assets  and  liabilities  denominated  in  foreign  currencies  are  translated  to  Canadian  dollars  at 
the  exchange  rate  prevail  ing  at  the  year-end,  and  foreign  currency  transactions  are  translated  at  the  exchange 
rate  prevailing  at  the  date  of  the  transaction  unless  hedged  by  forward  contracts  which  specify  the  rate  of 
exchange.  Adjustments  to  revenue  or  expenditure  transactions  arising  as  a  result  of  foreign  currency 
translation  are  credited  or  charged  to  operations  at  the  time  the  adjustments  arise.  Unrealized  foreign 
currency  gains  and  losses  on  long-term,  fixed-term  monetary  assets  and  liabilities  are  reported  as  deferred 
charges  and  amortized  over  the  remaining  terms  of  the  related  items  on  a  straight  line  basis. 

Non-monetary  assets  and  liabilities  are  translated  at  historical  rates  of  exchange. 

Concessionary  Loans  and  Mortgages 

Loans  and  mortgages  that  are  made  at  a  rate  of  interest  below  the  government's  borrowing  rate  for  an 
equivalent  term  are  considered  concessionary. 

Concessionary  loans  and  mortgages  are  recorded  at  their  net  present  value  (net  of  grant  component) 
less  any  provision  required  for  doubtful  collection.  Present  value  discounts  are  recorded  as  grant  expendi¬ 
tures. 

Principal  repayments  of  concessionary  loans  and  mortgages  will  first  be  applied  to  the  reduced  loan  or 
mortgage  balance  (net  present  value)  and  then  recorded  as  revenue  (recovery  of  a  grant)  when  received. 

Valuation  Allowances 

Valuation  allowances,  such  as  provisions  for  doubtful  accounts  and  provisions  for  reduction  in  value 
of  investments,  are  included  as  expenditures  on  the  statement  of  revenue  and  expenditure.  Personal, 
corporate  income  and  property  tax  are  recorded  net  of  tax  credits  and  adjustments  which  are  based  upon 
revised  assessments  of  actual  tax  revenue  of  previous  taxation  years.  Tax  credits  and  adjustments  are  not 
considered  valuation  allowances. 

Specific  Policies 

Cash  and  Temporary  Investments 

Cash  balances  are  shown  after  deducting  outstanding  cheques  issued  prior  to  the  year-end.  Cheques 
issued  subsequent  to  the  year-end  relating  to  the  previous  year  are  included  in  accounts  payable. 

Temporary  investments  include  short-term  investments  recorded  at  the  lower  of  cost  or  market  value. 
Temporary  investments  consist  mainly  of  units  in  the  Province  of  British  Columbia  Pooled  Investment 
Portfolios.  Units  are  carried  at  the  lower  of  cost  of  acquisition  adjusted  by  income  attributed  to  the  units,  or 
market  value.  Income  attributed  to  the  units  represents  the  unitholders'  share  of  interest  earned  by  the 
portfolio  and  is  realizable  by  unitholders  upon  the  sale  of  units. 

Accounts  Receivable 

All  amounts  receivable  (including  any  trade  receivables  from  government  organizations  and  enter¬ 
prises)  at  the  year-end  for  work  performed,  goods  supplied  or  services  rendered  are  recorded  as  revenue  or 
recoveries  of  the  fiscal  year.  Valuation  allowances  are  provided  where  collectibility  is  considered  doubtful. 

Inventories 

Inventories  comprise  items  held  for  resale  and  are  recorded  at  the  lower  of  cost  or  net  realizable  value. 
Inventories  of  supplies  are  charged  to  the  respective  programs  when  the  cost  is  incurred. 

Property  underdevelopment,  which  will  eventually  be  sold  to  outside  parties,  is  recorded  at  the  lower 
of  cost  or  net  realizable  value. 

Amounts  Due  From  Other  Governments 

Amounts  due  from  other  governments  include  loans  and  advances  outstanding  at  the  year-end. 


A12 


PROVINCE  OF  BRITISH  COLUMBIA 


Investments  In  and  Amounts  Due  From  Crown  Corporations  and  Agencies 

Investments  in  and  amounts  due  represent  long-term  investments  and  amounts  due,  other  than  trade 
receivables,  and  are  recorded  at  cost  unless  significant  prolonged  impairment  in  value  has  occurred,  in 
which  case  they  are  written  down  to  recognize  this  loss  in  value.  If,  in  periods  subsequent  to  recognizing  this 
impairment,  the  value  of  the  investment  is  restored,  the  investment  is  written  up  to  the  lesser  of  restored  value 
or  original  cost. 

Loans,  Advances  and  Other  Investments 

Loans,  advances  and  other  investments  are  recorded  at  cost  less  adjustment  for  any  prolonged 
impairment  in  value. 

Mortgages  Receivable 

Mortgages  receivable  are  secured  by  real  estate  and  are  repayable  over  periods  ranging  up  to  thirty 
years.  Valuation  allowances  are  made  where  collectibility  is  considered  doubtful. 

Fiscal  Agency  Loan  Program 

Fiscal  Agency  Loan  Program  consists  of  loans  made  to  government  bodies,  and  cash  and  temporary 
investments  set  aside  for  the  specific  purpose  of  loaning  to  government  bodies.  Loans  are  recorded  at 
maturity  value  less  unamortized  discounts  and  sinking  fund  balances.  Discounts  are  amortized  on  an 
effective  yield  basis.  These  loans  are  recorded  as  assets  even  if  they  are  only  recoverable  through  future 
appropriations  of  the  government. 

Other  Assets 

Other  assets  include  prepaid  program  costs.  Prepaid  program  costs  represent  expenditures  made 
during  the  fiscal  year  for  work  to  be  performed,  goods  to  be  supplied,  services  to  be  rendered  or  contractual 
obligations  to  be  fulfilled  by  outside  parties  in  a  subsequent  fiscal  year.  These  costs  also  include  inventories 
of  operating  materials  held  in  the  Purchasing  Commission  and  Queen's  Printer  warehouses  pending 
distributions  in  a  subsequent  fiscal  year. 

Also  included  in  other  assets  are  certain  deferred  charges. 

Physical  Assets 

Disbursements  for  physical  assets  are  recorded  as  expenditures  in  the  year  the  assets  are  received. 
Consistent  with  the  reporting  of  physical  assets  as  expenditures,  highways,  bridges,  wharves,  ferries  and  ferry 
landings,  buildings,  office  equipment,  furniture,  automobiles  and  Crown  land  comprised  of  parks,  forests  and 
all  other  publicly  held  land  by  the  province,  not  including  property  under  development,  are  recorded  at  a 
nominal  value  of  $1 . 

Accounts  Payable  and  Accrued  Liabilities 

All  amounts  payable  (including  any  trade  payables  to  government  organizations  and  enterprises)  for 
work  performed,  goods  supplied,  services  known  to  have  been  rendered  or  for  charges  incurred  in 
accordance  with  the  terms  of  a  contract  are  recorded  as  part  of  the  expenditures  of  the  fiscal  year. 

Amounts  Due  to  Other  Governments 

Amounts  due  to  other  governments  represent  liabilities  incurred  due  to  advances  and  loans  from  other 
governments. 

Due  to  Crown  Corporations,  Agencies  and  Funds 

Amounts  due  to  Crown  corporations,  agencies  and  funds  represent  liabilities  incurred,  other  than  trade 
payables,  which  are  payable  in  the  following  year. 

Deferred  Revenue 

Deferred  revenue  represents  amounts  received  or  receivable  prior  to  the  year-end  relating  to  revenue 
that  will  be  earned  in  subsequent  fiscal  years. 

Public  Debt 

Public  debt  represents  direct  debt  obligations  for  the  purposes  of  the  Government  of  British  Columbia 
and  the  Fiscal  Agency  Loan  Program.  These  obligations  are  recorded  at  principal  less  unamortized  discounts 
and  sinking  fund  balances  where  applicable.  Discounts  are  amortized  on  an  effective  yield  basis. 


PUBLIC  ACCOUNTS  1 991  \92 


A  13 


Guaranteed  Debt 

Guaranteed  debt  represents  that  debt  of  mu  nicipal  ities  and  other  local  governments,  private  enterprises 
and  individuals,  and  debtand  minority  interests  of  provincial  Crown  corporations,  which  has  been  explicitly 
guaranteed  or  indemnified  by  the  government,  under  the  authority  of  a  statute,  as  to  net  principal  or 
redemption  provisions.  Valuation  allowances  are  made  where  probable  losses  can  be  reasonably  estimated. 

A  valuation  allowance  provision  is  established  representing  the  probable  losses  on  loan  guarantees 
issued  by  the  government.  The  amount  of  the  provision  is  determined  by  the  loss  experience  of  the  guarantee 
program  and  is  sufficient  to  meet  the  expected  payout  of  the  guarantee  to  the  lender.  The  provision  is 
recorded  as  an  expense  in  the  year  the  guarantee  is  issued  and  is  adjusted  as  necessary  to  ensure  it  equals  the 
expected  payout  of  the  guarantee. 

Commitments 

Commitments  represent  future  obligations  of  the  government  for  capital  contracts  and  extraordinary 
program  commitments,  to  the  extent  of  contracts  and  agreements  in  place  at  the  year-end. 

1992  Changes  IN  Accounting  Policy 

•  Contingent  liabilities — beginning  in  1991/92,  where  contingent  liabilities  are  considered  likely 
to  require  payment  by  the  government  and  an  amount  can  be  quantified  on  an  individual  or 
portfolio  basis,  they  are  included  in  the  liabilities  of  the  province  and  the  expense  recognized. 
This  resulted  in  a  $1 9  million  increase  in  expense  for  the  1 991/92  fiscal  year  and  a  $81  million 
increase  in  the  deficit  accumulated  prior  to  that  fiscal  year. 

•  Concessionary  Loans  and  Mortgages — beginning  in  1991/92,  concessionary  loans  and  mort¬ 
gages  issued  by  the  province  are  recorded  attheir  net  present  value.  The  remaining  loan  balance 
is  recorded  as  a  grant  in  the  year  of  issue.  This  resulted  in  a  $24  million  increase  in  expense  for 
fiscal  1 991/92  and  a  $  43  million  increase  in  the  accumulated  deficit  prior  to  that  fiscal  year. 

•  Unfunded  pension  liabilities — atMarch  31 , 1 990  an  actuarial  valuation  was  done  for  the  Public 
Service  Superannuation  Plan  which  calculated  an  unfunded  liability  of  $438  million.  The 
Members  of  the  Legislative  Assembly  Superannuation  Account  has  an  estimated  unfunded 
liability  of  $6.5  million.  Beginning  with  the  1 991/92  Public  Accounts  the  accounting  policy  of 
the  province  has  been  amended  to  include  the  unfunded  pension  liabilities  as  a  part  of  the 
province's  liabilities. 

The  current  year  and  comparative  liability  and  accumulated  deficit  amounts  on  the  Province's 
Balance  Sheets  have  therefore  been  restated  to  include  this  $444.5  million.  There  is  no  effect  on 
either  the  current  year  or  fiscal  1990/91  operating  statements. 

•  Contributions — beginning  in  1991/92,  authorized  contributions  relating  to  retroactive  wage 
settlements  are  recorded  as  an  expenditure  of  the  period  during  which  the  services  were 
provided.  As  a  result  of  this  change,  total  1991/92  expenditure  has  been  increased  by  $43.2 
million. 

Public  Accounts  Content 

The  Public  Accounts  are  divided  into  two  volumes  as  follows: 

Volume  1  —  Consolidated  Reporting  Entity,  Trust  Funds  and  Summaries  of  Financial  Informa¬ 
tion  Reports 

•  Summary  Financial  Statements — these  statements  have  been  prepared  to  disclose  the  economic 
impact  of  the  government's  activities.  They  aggregate  the  Consolidated  Revenue  Fund  and  govern¬ 
ment  organizations  and  enterprises. 

•  Financial  Statements  of  Government  Organizations  and  Enterprises — this  section  contains  the  latest 
audited  financial  statements  of  government  organizations  and  enterprises.  A  summary  of  financial 
information  for  other  entities  subject  to  the  Financial  Information  Actls  incorporated  in  the  last  section 
of  this  volume. 


A  14 


PROVINCE  OF  BRITISH  COLUMBIA 


•  Trust  Funds  Financial  Statements — this  section  contains  the  latest  audited  financial  statements  of  the 
pension,  superannuation  and  long-term  disability  funds  administered  by  the  government.  A  summary 
of  financial  information  for  trust  funds  is  included  in  this  section. 

•  Summaries  of  Financial  Statements  of  Corporations  and  Agencies  to  which  the  Financial  Information 
Act  applies — this  section  contains  summaries  of  the  financial  statements  of  corporations,  associa¬ 
tions,  boards,  commissions,  societies  and  public  bodies  required  to  report  under  the  Financial 
Information  Act  {S.B.C.  1985,  chapter  8,  section  2)  and  not  included  elsewhere  in  this  volume. 

Volume  II  —  Financial  Statements  and  Schedules  of  the  Consolidated  Revenue  Fund 

•  Consolidated  Revenue  Fund  Financial  Statements — these  statements  include  the  accounts  of  the 
Consolidated  Revenue  Fund,  combining  the  activities  of  the  General  Fund  with  funds  earmarked  for 
specific  purposes.  Special  Funds. 

•  Supplementary  Schedules  to  the  Financial  Statements — ^this  section  contains  schedules  which 
support  the  information  presented  in  the  province's  Consolidated  Revenue  Fund  financial  statements, 
including  details  of  expenditures  by  ministerial  appropriations,  together  with  an  analysis  of  statutory 
appropriations  and  Special  Accounts  and  Funds  transactions. 

•  Detailed  Schedules  of  Payments — ^this  section  contains  detailed  schedules  of  salaries,  wages,  travel 
expenses,  grants  and  other  payments. 


Summary  Financial  Statements 
as  at  March  31, 1992 

Contents 

Page 

Auditor  General's  Report .  3 

Balance  Sheet .  5 

Statement  of  Revenue  and  Expenditure .  6 

Statement  of  Changes  in  Cash  and  Temporary  Investments .  7 

Notes  to  Financial  Statements .  8 

Supplementary  Statements 

Statementof  Organizations  and  Enterprises .  21 

Statement  of  Government  Enterprises .  22 


Statement  of  Equity  in  Government  Enterprises 


24 


PUBLIC  ACCOUNTS  1991/92 


B  5 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 

AUDITOR  GENERALS  REPORT  V8vix4 

(604) 387-6803 
Fax  (604)  387-1230 

To  the  Legislative  Assembly 
of  the  Province  of  British  Columbia 
Parliament  Buildings 
Victoria^  British  Columbia 


I  have  audited  the  balance  sheet  of  the  Government  of  the  Province  of  British 
Columbia  as  at  March  31,  1992  and  the  statements  of  revenue  and  expenditure  and 
changes  in  cash  and  temporary  investments  for  the  year  then  ended.  These  financial 
statements  are  the  responsibility  of  the  Government.  My  responsibility  is  to  express 
an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  the  conduct  of  my 
audit,  I  have  received  all  the  information  and  explanations  I  have  required. 

I  report  in  accordance  with  section  7  of  the  Auditor  General  Act.  In  my  opinion 
these  financial  statements  present  fairly,  in  all  material  respects,  the  financial 
position  of  the  Government  as  at  March  31,  1992  and  the  results  of  its  operations 
and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
the  stated  accounting  policies  as  set  out  in  note  1  to  these  financial  statements 
applied,  after  giving  effect  to  the  changes  explained  in  the  1992  Changes  in 
Accounting  Policy  section  of  the  Introduction  to  the  1991/92  Public  Accounts,  on  a 
basis  consistent  with  that  of  the  preceding  year. 


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August  15,  1992 


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PUBLIC  ACCOUNTS  1991/92 


B  5 


Summary  Financial  Statements  Balance  Sheet 
as  at  March  31,  1992 


Assets 

Cash  and  temporary  investments . 

Accounts  receivable . 

Inventories . 

Amounts  due  from  other  governments . 

Equity  in  government  enterprises . 

Loans,  advances  and  other  investments . 

Mortgages  receivable . 

Fiscal  Agency  Loan  Program . 

Other  assets . 

Liabilities  and  Net  Equity  (Deficiency) 

Liabilities: 

Accounts  payable  and  accrued  liabilities . 

Amounts  due  to  other  governments . 

Due  to  Crown  corporations,  agencies  and  trust  funds 

Deferred  revenue . 

Public  debt,  used  for  government  operating  purposes 
Public  debt,  used  for  Fiscal  Agency  Loan  Program . 

Net  equity  (deficiency) . 


Physical  assets . 

Contingencies  and  commitments 


Note 

In  Millions 

1992 

1991 

$ 

$ 

2 

85 

219 

3 

1,163 

1,160 

4 

48 

47 

5 

89 

64 

6 

2,522 

2,377 

7 

701 

845 

8 

138 

142 

9 

8,521 

7,396 

10 

29 

28 

13,296 

12,278 

11 

2,027 

1,842 

12 

105 

197 

13 

63 

53 

14 

314 

269 

15 

7,248 

5,318 

16 

8,502 

7,399 

18,259 

15,078 

17 

(4,963) 

(2,800) 

13,296 

12,278 

18 

19 


The  accompanying  notes  and  supplementary  statements  are  an  integral  part  of  these  financial  statements. 


Approved  on  behalf  of  the  Ministry  of  Finance  and  Corporate  Relations; 


MICHAEL  COSTELLO 

Deputy  Minister  of  Finance  and 
Corporate  Relations 


BARNARD 


Deputy  Comptroller  General 
Acting  for  the  Comptroller  General 


PROVINCE  OF  BRITISH  COLUMBIA 


B  6 

Summary  Financial  Statements 
Statement  of  Revenue  and  Expenditure 
for  the  Fiscal  Year  Ended  March  31, 1992 

In  Millions 
1992  1991 

Revenue  ^  ^ 

Taxation — personal  income .  4,287  4,140 

Taxation — corporate  income .  ^77  608 

Taxation — social  service .  1,991  2,010 

Taxation — property .  1,248  1,103 

Taxation — other .  1,165  1,079 

Natural  resources .  1,101  1,171 

Fees  and  licences— Medical  Services  Plan  premiums .  742  661 

Fees  and  licences — other . i .  722  654 

Investment  earnings .  715  587 

Privatization  Benefits  Fund .  52  52 

Miscellaneous .  293  282 

Contributions  from  government  enterprises .  465  601 

Contributions  from  the  federal  government— Established  Programs  Financing .  1,156  1,110 

Contributions  from  the  federal  government — Canada  Assistance  Plan .  767  716 

Contributions  from  the  federal  government — other .  180  135 

Recoveries .  795  870 

Total  revenue .  16,256  15,779 

Expenditure 

Health .  5,601  5,046 

Social  services .  1,949  1,630 

Education .  4,514  4,117 

Protection  of  persons  and  property .  705  633 

Transportation .  1,241  1,169 

Natural  resources  and  economic  development .  1,288  1,000 

Other .  572  484 

General  government .  939  673 

Debt  servicing .  1,826  1,660 

Total  operating  expenditure  (Note  20) .  18,635  16,412 

Net  Operating  Revenue  (Expenditure)  for  the  Year .  (2,379)  (633) 

Non-Operating  T  ransactions 

Increase  in  unremitted  earnings  of  government  enterprises  (Note  6) .  216  114 

Consolidated  Net  Revenue  (Expenditure)  for  the  Year  (Note  21 ) .  (2,1 63)  (51 9) 


The  accompanying  notes  and  supplementary  statements  are  an  integral  part  of  these  financial  statements. 


PUBLIC  ACCOUNTS  1 991/92 


B  7 


Summary  Financial  Statements 
Statement  of  Changes  in  Cash  and  Temporary  Investments 
for  the  Fiscal  Year  Ended  March  31,  1992 


In  Millions 

1992 

1991 

Receipts 

Disburse-  Net 

Net 

Operating  Transactions 

$ 

ments 

$ 

$ 

$ 

Net  operating  revenue  (expenditure)  for  the  year . 

Prior  period  adjustments . 

(2,379) 

(633) 

(678) 

Non-cash  items  included  in  net  expenditure: 

Accounts  receivable  (increase) . 

(57) 

(112) 

Due  from  other  governments  (increase)  decrease . 

(25) 

6 

Accounts  payable  increase . 

185 

617 

Due  to  other  governments  (decrease)  increase . 

(92) 

57 

Public  debt  issue/discount  (decrease)  increase . 

(52) 

70 

Equity  in  government  enterprises  (increase) . 

(145) 

(97) 

Due  to  Crown  corporations  increase  (decrease) . 

10 

(1) 

Concessionary  loan  adjustments  increase . 

24 

43 

Provision  for  doubtful  accounts  increase . 

211 

42 

Unremitted  equity  of  government  enterprises  increase . 

Other  under  $10  million . 

216 

(2) 

114 

Cash  items  applicable  to  future  operations . 

20 

(23) 

Cash  derived  from  (used  for)  operations . 

(2,086) 

(595) 

1  n  vestment  T  ransactions 

Loans,  advances  and  other  investments  (issues) . . 

.  174 

162 

12 

(101) 

Mortgages  receivable  repayments  (issues) . 

.  161 

155 

6 

(5) 

Cash  derived  from  (used  for)  investments . 

.  335 

317 

18 

(106) 

Total  financial  (decrease) . 

(2,068) 

(701) 

Financing  Transactions^ 

Increase  in  public  debt . 

.  19,041 

15,918 

3,123 

1,587 

Used  for  Fiscal  Agency  Loan  Program . 

.  (11,318) 

(10,129) 

(1,189) 

(1,109) 

Cash  derived  from  (used  for)  financing . 

.  7,723 

5,789 

1,934 

478 

(Decrease)  in  cash  and  temporary  investments . 

(134) 

(223) 

Balance — beginning  of  year . 

219 

442 

Balance — end  of  year . 

85 

219 

^Financing  transaction  receipts  are  from  debt  issues  and  disbursements  are  for  debt  repayments. 

The  accompanying  notes  and  supplementary  statements  are  an  integral  part  of  these  financial  statements. 


PROVINCE  OF  BRITISH  COLUMBIA 


B  8 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31, 1992 


1 .  Significant  Accounting  Policies 

(a)  Reporting  Entity 

These  financial  statements  include  the  accounts  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  Legislature,  and  are  owned  or  controlled  by  the  government. 

A  detailed  schedule  of  organizations  included  in  these  consolidated  financial  statements  may  be  found  on  B21 . 

Advanced  education  institutions  are  excluded  from  consolidation.  These  organizations  are  dissimilar  to  other  government  organizations 
in  terms  of  their  objectives,  operations  and  financial  reporting  practices.  Trusts  administered  by  a  government  or  government  organization  are 
excluded  from  the  government  reporting  entity. 

(b)  Principles  OF  Consolidation 

The  accounts  of  the  organizations,  except  those  designated  as  government  enterprises,  are  consolidated  after  adjusting  them  to  a  basis 
consistent  with  the  accounting  policies  described  below.  Inter-organization  accounts  and  transactions  are  eliminated  upon  consolidation. 

A  government  enterprise  has  the  financial  and  operating  authority  to  carry  on  a  business,  including  contracting  in  its  own  name,  and  sells 
goods  and  services  to  individuals  and  non-government  organizations  as  its  principal  activity  and  source  of  revenue. 

Government  enterprises  are  recorded  on  the  modified  equity  basis.  Under  this  basis,  the  government's  investment  is  initially  recorded  at 
cost  and  adjusted  annually  to  include  the  net  earnings/losses  and  other  net  equity  changes  of  the  enterprise  without  adjusting  them  to  conform 
with  the  accounting  policies  described  below.  Since  the  government  ensures  the  ongoing  activities  of  government  enterprises,  full  account  is 
taken  of  losses  in  these  enterprises,  even  where  the  cumulative  losses  exceed  the  original  investment. 

Inter-enterprise  accounts  and  transactions  are  not  eliminated.  However,  profit  elements  included  in  such  transactions,  including  certain 
increases  in  contributed  surplus,  are  eliminated. 

Adjustments  are  not  made  to  account  for  changes  in  organizations  whose  fiscal  year-ends  are  not  March  31 ,  unless  the  effect  of  adjustment 
would  be  significant  to  the  consolidated  operating  results. 

(c)  Basis  of  Accounting  and  Specific  Policies 

The  basis  of  accounting  and  specific  policies  and  1 992  changes  in  accounting  policy  are  as  stated  in  the  Introduction  section  of  the  Public 
Accounts,  with  the  following  amendments: 

•  Equity  in  government  enterprises  represents  the  government's  investment  (including  long-term  advances)  in  those  government 
organizations  at  cost,  adjusted  for  increases  and  decreases  in  the  investees'  net  assets. 

•  The  policies  "Investments  in  and  amounts  due  from  Crown  corporations  and  agencies"  and  "Revenues  from  government 
enterprises"  are  not  applicable. 

•  Public  debt  includes  debt  obligations  of  the  consolidated  Crown  corporations,  and  commitments  include  future  obligations 
of  all  the  government  organizations  and  enterprises. 

•  For  these  financial  statements,  the  gross  basis  of  accounting  is  followed.  In  particular,  recoveries  are  reported  as  revenue. 


2.  Cash  and  Temporary  Investments 


Cash  (cheques  issued  in  excess  of  funds  on  deposit) . 

Temporary  investments 

Units  in  Province  of  British  Columbia  Pooled  Investment  Portfolios 


In  Millions 

1992  1991 

$ 

$ 

(100) 

(10) 

185 

229 

85 


219 


PUBLIC  ACCOUNTS  1 991/92 


B  9 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31, 1992 — Continued 


3.  Accounts  Receivable  in  Millions 

1992  1991 

$  $ 

Taxes  receivable .  836  695 

Trade  accounts  receivable .  205  353 

Accrued  interest .  236  178 

Crown  corporations  and  agencies .  21  15 

1,298  1,241 

Less  provision  for  doubtful  accounts .  (135)  (81) 

1,163  1,160 


4.  Inventories  In  Millions 

1992  1991 

$  $ 

Property  underdevelopment .  47  46 

Ministerial  inventories .  1  1 

48  47 


5.  Amounts  Due  From  Other  Governments  In  Millions 

1992  1991 

$  $ 

Government  of  Canada: 

Current .  66  62 

Other  Provinces: 

Current .  2 

Local  Governments:^ 

Current .  21  2 


^  Local  governments  are  municipal  units  established  by  the  provincial  government.  They  include  regional  and  metropolitan  municipalities, 
cities,  towns,  townships,  districts,  rural  municipalities  and  villages. 


PROVINCE  OF  BRITISH  COLUMBIA 

Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992— Continued 


6.  Equity  in  Government  Enterprises 


B.C.  Pavilion  Corporation . 

British  Columbia  Assessment  Authority . 

British  Columbia  Ferry  Corporation . 

British  Columbia  Housing  and  Employment  Development  Financing  Authority .... 

British  Columbia  Housing  Management  Commission . 

British  Columbia  Hydro  and  Power  Authority . 

British  Columbia  Lottery  Corporation . 

British  Columbia  Petroleum  Corporation . 

British  Columbia  Railway  Company . 

British  Columbia  Steamship  Company  (1 975)  Ltd . 

British  Columbia  Transit . 

Duke  Point  Development  Limited . 

Insurance  Corporation  of  British  Columbia . 

Pacific  National  Exhibition . 

Provincial  Capital  Commission . 

Provincial  Rental  Housing  Corporation . 

W.L.C.  Developments  Ltd . 


’  See  B24  for  details. 


Change  in  Equity  in  Government  Enterprises 


In  Millions 


1992 

1991 

Investments 

and 

Unremitted 

Amounts  Due 

Earnings 

Total 

Total 

$ 

$ 

$ 

$ 

157 

157 

152 

3 

3 

4 

241 

241 

226 

1 

1 

1 

8 

8 

7 

8 

943 

951 

869 

20 

20 

15 

1 

1 

1 

268 

635 

903 

853 

3 

3 

3 

116 

116 

112 

4 

4 

4 

56 

32 

32 

30 

4 

4 

4 

56 

4  • 

60 

23 

18 

18 

17 

509 

2,013 

2,522 

2,377 

In  Millions 

1992 

1991 

Investments 

and 

Amounts  Due 

Unremitted 

Earnings 

Total 

Total 

$ 

$ 

$ 

$ 

580 

1,797 

2,377 

2,280 

(71) 

216 

145 

97 

509 

2,013 

2,522 

2,377 

Balance — beginning  of  year . 

Increase  (decrease)  for  the  year 
Balance — end  of  year . 


PUBLIC  ACCOUNTS  1991/92  B11 

Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31, 1992 — Continued 

7.  Loans,  Advances  and  Other  Investments^  In  Millions 

1992  1991 

$  $ 

Agricultural  Land  Development  Act .  9  8 

Crop  Insurance  Stabilization  Act .  15  15 

Development  Corporation  Act .  114  116 

Downtown  Revitalization  Act .  9  1 1 

Homeowner  Assistance  Act .  4  4 

Industrial  Development  Fund  Act .  20  21 

Industrial  Development  Incentive  Act .  158  127 

Low  Interest  Loan  Agreement  Revolving  Fund  Act .  4  4 

Ministry  of  Lands,  Parks  and  Housing  Act .  1  2 

Privatization  Benefits  Fund  Act .  512  474 

Province  of  Saskatchewan .  100 

Vancouver  Island  Natural  Gas  Pipeline  Act .  7  4 

Other . 66  45 

Less  provision  for  doubtful  accounts .  (218)  (86) 

701  845 


’The  act  reference  in  this  section  is  that  under  which  the  loan  program  was  established. 

8.  Mortgages  Receivable  In  Millions 

1992  1991 

$  $ 

Crown  Land — pursuant  to  the  Ministry  of  Lands,  Parks  and  Housing  Act .  17  18 

False  Creek  land  sale 

Note  receivable .  106  95 

Public  participation  funding  agreement .  7  20 

Provincial  Regional  Housing  Corporation .  1  1 

Provincial  Home  Acquisition — pursuant  to  the  Provincial  Home  Acquisition  Act,  Home  Purchase  Assistance 

Act,  and  the  Home  Conversion  and  Leasehold  Loan  Act .  41  43 

Other .  2  3 

174  180 

Less  provision  for  doubtful  accounts .  (36)  (38) 

138  142 


PROVINCE  OF  BRITISH  COLUMBIA 


B  12 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992— Continued 


9.  Fiscal  Agency  Loan  Program 


Amounts  recoverable  substantially  from  future  grant  appropriations; 

B.C.  Pavilion  Corporation . 

British  Columbia  Educational  Institutions  Capital  Financing  Authority ... 

British  Columbia  Ferry  Corporation . 

British  Columbia  Regional  Hospital  Districts  Financing  Authority . 

British  Columbia  School  Districts  Capital  Financing  Authority . 

British  Columbia  Transit . 

Capital  Project  Certificate  of  Approval  Program . 

Improvement  Districts . 

Selkirk  College . 

Simon  Fraser  University . 

Thompson-Nicola  District . 

University  of  British  Columbia . 

University  of  Victoria . 

Amounts  recoverable  from  sources  other  than  future  grant  appropriations: 

British  Columbia  Assessment  Authority . 

British  Columbia  Hydro  and  Power  Authority . 

British  Columbia  Railway  Company . 

Greater  Vancouver  Sewerage  and  Drainage  District . 

Greater  Vancouver  Water  District . 

W.L.C.  Developments  Ltd . 


1 0.  other  Assets 


Prepaid  program  costs . 

Unamortized  issue  costs  of  public  debt 

Provision  for  doubtful  accounts . 


1 1 .  Accounts  Payable  and  Accrued  Liabilities 


Trade  accounts  payable  and  other  liabilities. 

Accrued  interest  on  public  debt . 

Accrued  employee  leave  entitlements . 

Forest  Act,  section  88 . 

Provision  for  guaranteed  debt  payout . 

Other  accrued  liabilities^ . 

Accrued  pension  liabilities^ . 


In  Millions 


1992  1991 


$ 

$ 

6 

607 

482 

149 

897 

852 

1,144 

954 

1,087 

979 

250 

171 

2 

2 

2 

7 

2 

1 

1 

62 

41 

4 

4 

4,218 

3,488 

8 

6 

4,077 

3,736 

48 

78 

94 

26 

70 

62 

6 

4,303 

3,908 

8,521 

7,396 

In  Millions 

1992 

1991 

$ 

$ 

40 

16 

25 

25 

65 

41 

(36) 

(13) 

29 

28 

In  Millions 

1992 

1991 

$ 

$ 

926 

917 

402 

294 

110 

88 

1 

44 

1 

16 

100 

81 

445 

445 

2,027 

1,842 

includes  pending  litigation,  provision  for  clean  up  of  Expo  land  site  and  other  miscellaneous  contingent  liabilities. 

^This  is  an  estimate  of  public  service  pension  liability  based  on  actuarial  assumptions  of  future  inflation  rates,  interest  rates  and  wage  increases  made  as  of 
March  31, 1990,  and  also  includes  an  estimated  amount  to  cover  M.L.A.  pensions. 


PUBLIC  ACCOUNTS  1 991/92 


B  13 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 


1 2.  Amounts  Due  to  Other  Governments 


In  Millions 


1992  1991 

$  $ 

Government  of  Canada: 

Current .  74  151 

Local  Governments:' 

Current .  31  46 


105  197 


'Local  governments  are  municipal  units  established  by  the  provincial  government.  They  include  regional  and  metropolitan  municipali¬ 
ties,  cities,  towns,  townships,  districts,  rural  municipalities  and  villages. 


1 3.  Due  to  Crown  Corporations,  Agencies  and  Trust  Funds  In  Millions 

1992  1991 

$  $ 

Trust  Funds . 18  16 

British  Columbia  Colleges  and  Institutes .  17  14 

British  Columbia  Hydro  and  Power  Authority .  1 0 

British  Columbia  Liquor  Distribution  Branch .  2  2 

British  Columbia  Transit .  4  10 

Simon  Fraser  University .  3  3 

University  of  British  Columbia .  7  7 

University  of  Victoria .  2  1 

63  53 


1 4.  Deferred  Revenue  In  Millions 

1992  1991 

$  $ 

Motor  vehicle  licences  and  permits .  91  83 

Water  rentals  and  recording  fees .  74  61 

Petroleum,  natural  gas  and  minerals,  leases  and  fees .  21  22 

Medical  Services  Plan  premiums .  56  39 

Miscellaneous .  72  64 


314 


269 


PROVINCE  OF  BRITISH  COLUMBIA 


B  14 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31, 1992— Continued 


15.  Public  Debt,  Used  for  Government  Operating  Purposes 


In  Millions 

1992  1991 


Short  term  promissory  notes . 

Year  of 
Maturity 

....  1991-1992 

1992- 1993 

1993- 1994 

Canadian 

Dollar 

Debt 

$ 

437 

6 

U.S. 

Dollar 

Debt 

(CDN$) 

$ 

403 

Total 

Canadian 

Dollars 

$ 

840 

6 

Weighted 
Average 
Coupon  Rate 
Percent 

Total 

Canadian 

Dollars 

$ 

987 

11 

Weighted 
Average 
Coupon  Rate 
Percent 

443 

403 

846 

998 

Treasury  bills . 

....  1991-1992 

780 

1992-1993 

780 

780 

780 

780 

780 

Notes  and  bonds . 

....  1991-1992 

715 

10.25 

1992-1993 

346 

346 

8.20 

346 

8.34 

1993-1994 

406 

406 

9.77 

458 

9.90 

1994-1995 

492 

13 

505 

9.22 

86 

9.91 

1995-1996 

618 

618 

10.74 

622 

10.76 

1996-1997 

912 

4 

916 

9.31 

484 

8.71 

1 997-2002 

2,917 

2,917 

10.40 

1,703 

10.54 

2002-2007 

228 

228 

12.24 

239 

12.79 

2007-2012 

559 

559 

9.78 

125 

10.74 

6,478 

17 

6,495 

10.05 

4,778 

10.23 

Total  debt  issued  at  face  value . 

7,701 

420 

8,121 

6,556 

Less: 

Sinking  funds . 

(721) 

(1,054) 

7,400 

5,502 

Unamortized  discount . 

(147) 

(184) 

7,253 

5,318 

Amount  held  in  the  Consolidated  Revenue  Fund  .. 

(5) 

7,248 

5,318 

Promissory  notes  outstanding  at  March  31,  1992  mature  at  various  dates  to  April  26,  1993  at  an  annual  average  interest  rate  of  7.6%. 
During  the  year,  $3.4  billion  in  notes  were  issued  at  interest  rates  which  varied  between  6.6%  and  1 0.36%. 

Treasury  bills  outstanding  at  March  31,1 992  mature  at  various  dates  to  September  23,  1 992  at  an  annual  average  interest  rate  of  7.38%. 
During  the  year,  $2.3  billion  in  Treasury  bills  were  issued  at  interest  rates  which  varied  between  6.84%  and  9.67%. 

The  province  had  1  72  series  of  notes  and  bonds  outstanding  at  March  31,1 992. 

Included  in  notes  and  bonds  payable  in  Canadian  currency  are  Japanese  Yen  notes  totalling  26.2  billion  Yen  (1991 :  27.8  billion  Yen) 
which  have  been  fully  hedged  to  $1 94.2  million  Canadian  (1 991 :  $203  million  Canadian)  through  currency  exchange  agreements. 

The  province  holds  $5  million  of  the  bonds  issued  and  outstanding  at  March  31,1 992.  These  have  been  eliminated  from  the  Balance  Sheet 
for  reporting  purposes. 

The  aggregate  amounts  of  payments  estimated  to  be  required  in  each  of  the  next  five  fiscal  years  to  meet  sinking  fund  and  retirement 
provisions  are: 


In  Millions 

Canadian  Funds  U.S.  Funds 


$  $ 

1993  .  423  1 

1994  .  347  1 

1995  .  589  8 

1996  .  612 

1997  .  754 


PUBLIC  ACCOUNTS  1991/92 


B  15 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 

16.  Public  Debt,  Used  for  Fiscal  Agency  Loan  Program 


In  Millions 

1992  1991 


U.S. 

Weighted 

Weighted 

Canadian 

Dollar 

Total 

Average 

Total 

Average 

Year  of 

Dollar 

Debt 

Canadian 

Coupon  Rate 

Canadian 

Coupon  Rate 

Maturity 

Debt 

(CDN$) 

Dollars 

Percent 

Dollars 

Percent 

$ 

$ 

$ 

$ 

Promissory  notes . 

.  1991-1992 

1992-1993 

774 

1,518 

2,292 

2,673 

774 

1,518 

2,292 

2,673 

Notes,  bonds  and  debentures . 

.  1991-1992 

136 

10.19 

1992-1993 

42 

42 

13.56 

42 

12.39 

1993-1994 

771 

771 

11.70 

720 

11.75 

1994-1995 

232 

232 

9.86 

283 

9.25 

1995-1996 

68 

68 

10.18 

164 

9.22 

1996-1997 

308 

308 

7.65 

261 

8.87 

1997-2002 

2,197 

2,197 

10.93 

1,400 

11.72 

2002-2007 

1,353 

1,353 

12.38 

1,353 

12.38 

2007-2012 

2012-2017 

2,138 

2,138 

10.15 

1,410 

10.39 

2017-2022 

600 

600 

10.60 

300 

10.60 

7,709 

0 

7,709 

10.86 

6,069 

1 1.17 

Total  debt  issued  at  face  value . 

8,483 

1,518 

10,001 

8,742 

Less: 

Sinking  funds . 

(1,430) 

(1,253) 

8,571 

7,489 

Unamortized  discount .  (49)  (90) 


8,522  7,399 

Amount  held  in  Consolidated  Revenue  Fund .  (20) 

8,502  7,399 


Promissory  notes  outstanding  at  March  31 ,  1  992  mature  at  various  dates  to  January  7,  1 993  at  an  annual  average  interest  rate  of  6.87%. 
During  the  year,  $9.4  billion  in  notes  were  issued  at  interest  rates  which  varied  between  6.63%  and  9.85%. 

The  province  had  352  issues  of  notes,  bonds  and  debentures  outstanding  at  March  31,1 992. 

Included  in  notes,  bonds  and  debentures  payable  in  Canadian  currency  are  Japanese  Yen  notes  totalling  8  billion  Yen  (1 991 :  9.8  billion 
Yen)  which  have  been  fully  hedged  to  $53.3  million  Canadian  (1 991 :  $63.1  million)  through  foreign  currency  exchange  agreements. 

The  province  holds  $20  million  of  the  bonds  issued  and  outstanding  at  March  31,  1992.  These  have  been  eliminated  from  the  balance 
sheet  for  reporting  purposes. 

The  aggregate  amounts  of  payments  estimated  to  be  required  in  each  of  the  next  five  fiscal  years  to  meet  sinking  fund  and  retirement 
provisions  are: 


1993, 

1994, 

1995 

1996 

1997 


In  Millions 
Canadian  Funds 


133 

879 

313 

142 

237 


Under  interest  rate  swap  agreements,  fixed  rate  debt  service  payments  are  exchanged  for  variable  rate  payments  for  some  of  the  notes, 
bonds  and  debentures.  At  March  31,1 992,  $1  billion  in  debt  principal  was  subject  to  interest  rate  swaps.  The  agreements,  which  relate  to  four 
separate  bond  issues,  mature  at  various  dates  up  to  March  22,  1 994.  Interest  rate  differential  ranges  from  0.431  %  to  5.437%.  Subsequent  to 
March  31,1 992,  five  interest  rate  swap  agreements  totalling  $500  million  were  closed  out  and  buy-out  payments  totalling  $41  million  were 
received. 


B  16 


PROVINCE  OF  BRITISH  COLUMBIA 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 


1 7.  Net  Equity  (Deficiency) 


Net  equity  (deficiency) — beginning  of  year 

Net  revenue  (expenditure)  for  the  year^ . 

Prior  period  adjustment^ . 

Net  equity  (deficiency) — end  of  year . 


In  Millions 


1992 

1991 

$ 

$ 

(2,800) 

(1,603) 

(2,163) 

(519) 

(678) 

(4,963) 

(2,800) 

^The  comparative  revenue  and  expenditure  was  adjusted  to  reflect: 

$15  million  for  the  write-off  of  property  tax  revenue  accrual,  which  should  have  been  net  of  Home-owner  grants  due  to  a  change  in  the 
administration  of  the  program; 

$3  million  to  reverse  federal  government  contribution,  plus  accrued  interest  per  Canada/B.C.  Science  and  Technology  Development 
Subsidiary  agreement;  and 

$(2)  million  recovery  of  a  prior  period  accounting  error. 

^The  prior  year  equity  was  adjusted  to  reflect: 

$103  million  for  the  write-off  of  property  tax  revenue  accrual,  which  should  have  been  net  of  Home-owner  grants  due  to  a  change  in  the 
administration  of  the  program; 

$4  million  to  adjust  the  book  value  of  the  False  Creek  land  sale  proceeds; 

$43  million  for  the  present  value  adjustment  of  concessionary  loans  receivable  attributed  to  prior  years; 

$445  million  to  record  the  obligation  to  fund  provincial  government  employees  and  M.L.A.  pension  benefits  accrued  during  prior  years; 
$2  million  adjustment  for  employee  leave  liability  attributed  to  prior  years;  and 
$81  million  for  various  identifiable  contingent  liabilities  of  the  province. 


1 8.  Physical  Assets 

Physical  assets  are  recorded  as  expenditures  in  the  year  they  are  received.  Expenditures  for  physical  assets  are  classified  in  the  books  of  the 
province  as  "Asset  Acquisitions."  During  the  1 991/92  fiscal  year,  the  following  types  of  physical  asset  acquisitions  have  been  recorded: 


Data  and  word  processing  equipment 

Office  furniture  and  equipment . 

Lands,  buildings  and  works . 

Machinery,  equipment  and  works . . 


In  Millions 
1992  1991 


$ 

$ 

137 

96 

25 

15 

400 

465 

49 

12 

611 

588 

19.  Contingencies  and  Commitments 

(a)  Guaranteed  Debt 

Guaranteed  debt  as  at  March  31,  1992  totalled  $4.1  billion  (1991 :  $4.4  billion). 


Municipalities  and  other  local  governments . 

Health  and  education . 

Economic  development . 

Utilities . 

Total . 

Less: 

Amounts  included  as  investments  within  the  consolidated  entity 
Provision  for  probable  payout . 


In  Millions 


1992 

1991 

Net 

Net 

Outstanding 

Outstanding 

$ 

$ 

6 

6 

153 

118 

915 

892 

3,149 

3,461 

4,223 

4,477 

(70) 

(92) 

(44) 

(16) 

4,109 

4,369 

PUBLIC  ACCOUNTS  1991/92 


B  17 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 

19.  Contingencies  and  Commitments — Continued 

(b)  Contingent  Liabilities 

(i)  Pending  litigation 

The  government  is  a  defendant  in  legal  actions  which  may  give  rise  to  future  liabilities.  Contingent  liabilities  are  accrued  in  the 
financial  statements  when  it  is  likely  that  a  liability  exists  and  the  amount  of  the  liability  can  be  reasonably  estimated  on  an  individual 
or  portfolio  basis. 

•  Consolidated  Revenue  Fund — the  total  claimed  in  specific  legal  actions,  where  the  estimated  or  known  claim  is  or  exceeds 
$1 00,000,  amounts  to  approximately  $374.4  million.  See  Note  1  9  to  the  Consolidated  Revenue  Fund  Financial  Statements 
section  of  the  Public  Accounts  for  details. 

(ii)  Other  contingent  liabilities 

The  government  also  has  contingent  liabilities  in  the  form  of  indemnities,  indirect  guarantees  and  outstanding  claims.  Where 
indemnities  are  for  explicit  quantifiable  loans,  the  amounts  are  included  in  the  statement  of  guaranteed  debt. 

Under  the  Criminal  Injury  Compensation  Act,  the  province  is  responsible  for  providing  compensation  to  victims  of  crime  in 
British  Columbia,  for  offences  described  in  the  Act. 

(iii)  Aboriginal  land  claims 

The  absence  of  treaties  relating  to  most  of  the  territory  constituting  British  Columbia  has  resulted  in  a  number  of  outstanding 
aboriginal  land  claims  across  British  Columbia.  Some  of  these  claims  have  resulted  in  litigation  but  most  have  simply  been  submitted 
to  governments  for  negotiation.  The  province's  position  on  these  claims  is  that,  although  the  province  recognizes  aboriginal  rights 
including  the  inherent  right  of  aboriginal  people  to  self-government,  the  precise  location,  scope,  and  content  of  these  rights  should 
be  established  not  through  litigation,  but  by  means  of  tripartite  negotiations  involving  the  federal  and  provincial  governments  and 
aboriginal  groups.  The  province  anticipates  that  these  negotiations  will  result  in  modern  day  treaties  defining  the  boundaries  and 
nature  of  aboriginal  lands  and  rights  and  ensure  a  more  stable  environment  for  resource  development  in  British  Columbia. 

Twenty-one  tribal  councils  and  bands  have  had  comprehensive  land  claims  accepted  for  negotiation  by  the  Government  of 
Canada.  The  claim  of  Nisga'a  Tribal  Council  in  the  Nass  Valley  in  northwestern  British  Columbia  is  the  only  claim  under  active 
negotiation,  although  both  the  federal  and  provincial  governments  are  committed  to  engaging  in  multiple  negotiations  over  the  next 
several  years. 

There  is  currently  one  major  aboriginal  rights  case  before  the  courts  in  British  Columbia.  It  involves  a  claim  by  Hereditary  Chiefs 
and  the  houses  they  represent  to  jurisdiction  and  control  over  approximately  5.5  million  hectares  located  in  mainly  rural  and 
wilderness  areas  of  British  Columbia.  They  also  seek  declarations  which  challenge  the  province's  ownership  and  jurisdiction  over  the 
lands,  mines,  minerals,  royalties,  resources  and  all  other  matters  within  the  claim  area.  They  assert  that  the  province's  jurisdiction  is 
subject  to  their  right  of  ownership  and  further  that  the  province  cannot  issue  licenses  or  permits  authorizing  the  use  of  any  resources. 
They  also  seek  damages  from  the  province  for  wrongful  appropriation  and  the  use  of  the  claim  area.  The  claim  was  dismissed  at  trial 
on  March  8,  1 991 .  The  trial  judge  held  that  all  land-based  aboriginal  rights  were  lawfully  extinguished  in  colonial  times  (pre  1871). 
The  judgment  has  been  appealed  and  the  appeal  is  currently  before  the  British  Columbia  Court  of  Appeal.  The  province's  position  at 
the  appeal  is  consistent  with  its  policy  that  claims  should  be  negotiated  rather  than  litigated.  The  province  is  no  longer  taking  the 
position  that  all  aboriginal  rights  were  extinguished  during  colonial  times,  but  is  asserting  that  over  time  some  gradual  extinguishment 
has  occurred  through  the  granting  of  incompatible  interests  by  the  Crown.  The  province  has  asked  the  Court  to  limit  its  consideration 
at  this  stage  of  the  proceedings  to  broad  principles  of  law  with  respect  to  the  nature  of  aboriginal  rights  and  to  refer  the  specific  issues 
with  respect  to  the  scope  and  content  of  these  rights  to  negotiation.  Should  there  not  be  a  negotiated  settlement  of  this  case,  it  is  likely 
that  upon  a  decision  being  made  by  the  British  Columbia  Court  of  Appeal,  there  will  be  a  further  appeal  to  the  Supreme  Court  of 
Canada. 

There  are  a  number  of  other  cases  before  the  courts  in  which  aboriginal  rights  in  respect  of  land  and  other  natural  resources  have 
been  alleged.  Several  decisions  of  the  British  Columbia  Court  of  Appeal  are  pending.  However,  few  of  the  remaining  cases  are 
currently  being  actively  pursued  in  court. 

(c)  Commitments 

At  the  end  of  each  year,  government  has  a  number  of  commitments  outstanding  for  capital  contracts.  Such  future  expenditures  are  charged 
to  the  appropriation  in  the  year  in  which  the  work  or  service  is  performed.  Year-end  commitments  for  capital  contracts  totalled  approximately 
$41 1  million  (1991 ;  $388  million). 


PROVINCE  OF  BRITISH  COLUMBIA 


B  18 

Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 

20.  Expenditure  by  Group  Account  Classification  In  Millions 

1992  1991 

$  $ 

Grants  and  contributions .  12,570  11,095 

Salaries  and  benefits .  1,617  1,388 

Operating  costs .  1,643  1,521 

Asset  acquisitions .  611  588 

Other .  2,194  1,820 

Total  operating  expenditure .  18,635  16,412 


Valuation  allowances  of  $21 1  million  (1 991 :  $42  million)  are  included  in  the  "Other"  group  account  classification. 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 


PUBLIC  ACCOUNTS  1991/92 


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B20 


PROVINCE  OF  BRITISH  COLUMBIA 


Notes  to  Summary  Financial  Statements 
for  the  Fiscal  Year  Ended  March  31,  1992 — Continued 


22.  Expenses  Due  to  Increases  in  Valuation  Allowances  In  Millions 

1992  1991 

$  $ 

Accounts  receivable .  54  19 

Investments  in  and  amounts  due  from  Crown  corporations  and  agencies .  4  4 

Loans,  advances  and  other  investments .  132  13 

Mortgages  receivable . . .  (2)  1 

Other  assets .  23  5 


211  42 


These  amounts  are  included  in  expenditure  and  represent  the  write  down  of  assets  in  the  above  categories. 


23.  Trust  Funds 

Amounts  held  and  administered  in  trust  by  the  government  at  the  end  of  the  fiscal  year  totalled  $25.6  billion  (1 991 :  $23.1  billion).  See 
Note  23  to  the  Consolidated  Revenue  Fund  Financial  Statements  for  further  details. 


24.  Comparatives 

Certain  of  the  comparative  figures  for  the  previous  year  have  been  reclassified  to  conform  with  the  current  year's  presentation. 

These  reclassifications  have  had  no  effect  on  the  operating  results  or  fund  balances  as  previously  reported,  except  as  stated  in  Note  1  7^ . 


PUBLIC  ACCOUNTS  1991/92 


B  21 


Summary  Financial  Statements 
Statement  of  Organizations  and  Enterprises 
Recorded  on  a  Consolidated  or  Modified  Equity  Basis 
for  the  Fiscal  Year  Ended  March  31,  1992 

Government  Organizations 
Recorded  on  Consolidated  Basis 

Consolidated  Revenue  Fund 

B.C.  Flealth  Care  Risk  Management  Society 
B.C.  Summer  and  Winter  Games  Society 
British  Columbia  Buildings  Corporation 

British  Columbia  Educational  Institutions  Capital  Financing  Authority 

British  Columbia  Festival  of  the  Arts  Society 

British  Columbia  Hazardous  Waste  Management  Corporation 

British  Columbia  Health  Research  Foundation 

British  Columbia  Heritage  Trust 

British  Columbia  Regional  Hospital  Districts  Financing  Authority 

British  Columbia  School  Districts  Capital  Financing  Authority 

British  Columbia  Systems  Corporation 

British  Columbia  Trade  Development  Corporation 

British  Columbia  Year  of  Music  Society 

Cloverdale  Historic  Transportation  Society  of  B.C. 

Downtown  Revitalization  Program  Society  of  British  Columbia 

First  Peoples'  Heritage,  Language  and  Cultural  Council 

Health  Facilities  Association  of  British  Columbia 

Medical  Services  Commission  of  British  Columbia 

Okanagan  Valley  Tree  Fruit  Authority 

Science  Council  of  British  Columbia 

The  Education  Technology  Centre  of  British  Columbia 

Government  Enterprises 
Recorded  ON  Modieied  Equity  Basis 

B.C.  Pavilion  Corporation 
British  Columbia  Assessment  Authority 
British  Columbia  Enterprise  Corporation 
British  Columbia  Ferry  Corporation 

British  Columbia  Housing  and  Employment  Development  Financing  Authority 

British  Columbia  Housing  Management  Commission 

British  Columbia  Hydro  and  Power  Authority 

British  Columbia  Liquor  Distribution  Branch 

British  Columbia  Lottery  Corporation 

British  Columbia  Petroleum  Corporation 

British  Columbia  Railway  Company 

British  Columbia  Steamship  Company  (1 975)  Ltd. 

British  Columbia  Transit 

Creston  Valley  Wildlife  Management  Authority  Trust  Fund 
Duke  Point  Development  Limited 
Insurance  Corporation  of  British  Columbia 
Pacific  National  Exhibition 

Plain  Language  Institute  of  British  Columbia  Society 
Provincial  Capital  Commission 
Provincial  Rental  Housing  Corporation 
W.L.C.  Developments  Ltd. 

1  78561  B.C.  Ltd.  (formerly  Pacific  Coach  Lines  Limited) 


statement  of  Government  Enterprises 
Summary  of  Financial  Position  and  Operating  Results 
for  the  Year  Ended  March  31,  1992 


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Financial  Statements  of 
Government  Organizations  and  Enterprises 

Contents 


Page 

Summary  of  Financial  Statements  of  Government  Organizations  and  Enterprises  (refer  to  this  volume 

section  B) .  3 

B.C.  Health  Care  Risk  Management  Society .  5 

B.C.  Pavilion  Corporation .  1 0 

B.C.  Summer  and  Winter  Games  Society .  1 9 

British  Columbia  Assessment  Authority .  29 

British  Columbia  Buildings  Corporation .  38 

British  Columbia  Educational  Institutions  Capital  Einancing  Authority .  49 

British  Columbia  Enterprise  Corporation .  57 

British  Columbia  Eerry  Corporation .  60 

British  Columbia  Eestival  of  the  Arts  Society .  68 

British  Columbia  Hazardous  Waste  Management  Corporation .  73 

British  Columbia  Health  Research  Eoundation .  80 

British  Columbia  Heritage  Trust .  87 

British  Columbia  Housing  and  Employment  Development  Financing  Authority .  96 

British  Columbia  Housing  Management  Commission .  102 

British  Columbia  Hydro  and  Power  Authority .  1 08 

British  Columbia  Liquor  Distribution  Branch .  1 23 

British  Columbia  Lottery  Corporation . . .  1  32 

British  Columbia  Petroleum  Corporation .  1 43 

British  Columbia  Railway  Company . . .  1 49 

British  Columbia  Regional  Hospital  Districts  Financing  Authority .  1 59 

British  Columbia  School  Districts  Capital  Financing  Authority .  1  70 

British  Columbia  Steamship  Company  (1 975)  Ltd .  1 82 

British  Columbia  Systems  Corporation .  1 88 

British  Columbia  Trade  Development  Corporation .  1 97 

British  Columbia  Transit . 205 

British  Columbia  Year  of  Music  Society .  218 

Cloverdale  Historic  Transportation  Society  of  B.C .  223 

Creston  Valley  Wildlife  Management  Authority  Trust  Fund .  230 

Downtown  Revitalization  Program  Society  of  British  Columbia .  236 

Duke  Point  Development  Limited .  241 

First  Peoples'  Heritage  Language  and  Culture  Council .  248 

Health  Facilities  Association  of  British  Columbia .  254 

Insurance  Corporation  of  British  Columbia .  262 

Medical  Services  Commission  of  British  Columbia .  269 

Okanagan  Valley  Tree  Fruit  Authority .  274 

Pacific  National  Exhibition .  280 

Plain  Language  Institute  of  British  Columbia  Society .  289 

Provincial  Capital  Commission .  295 

Provincial  Rental  Housing  Corporation .  304 

Science  Council  of  British  Columbia . 312 

The  Education  Technology  Centre  of  British  Columbia .  325 

W.L.C.  Developments  Ltd .  333 

1  78561  B.C.  Ltd.  (formerly  Pacific  Coach  Lines  Limited) .  339 


PUBLIC  ACCOUNTS  1991/92 


C3 


Summary  of  Financial  Statements 
of  Government  Organizations  and  Enterprises 

(Unaudited) 


In  Thousands 


Recorded  on  the 
Consolidated  Basis 


B.C.  Health  Care  Risk  Management  Society  .... 

B.C.  Summer  and  Winter  Games  Society . 

British  Columbia  Buildings  Corporation . 

British  Columbia  Educational  Institutions 

Capital  Financing  Authority . 

British  Columbia  Festival  of  the  Arts  Society .... 
British  Columbia  Hazardous  Waste  Manage¬ 
ment  Corporation . 

British  Columbia  Health  Research  Foundation 

British  Columbia  Heritage  Trust . 

British  Columbia  Regional  Hospital  Districts 

Financing  Authority . 

British  Columbia  School  Districts  Capital 

Financing  Authority . 

British  Columbia  Systems  Corporation . 

British  Columbia  Trade  Development  Corpora¬ 
tion . 

British  Columbia  Year  of  Music  Society . 

Cloverdale  Historic  Transportation  Society  of 

B.C . 

Downtown  Revitalization  Program  Society  of 

British  Columbia . 

First  Peoples'  Heritage,  Language  and  Culture 

Council . 

Health  Facilities  Association  of  British 

Columbia . 

Medical  Services  Commission  of  British 

Columbia . . . 

Okanagan  Valley  Tree  Fruit  Authority . 

Science  Council  of  British  Columbia . 

The  Education  Technology  Centre  of  British 
Columbia . 


Recorded  on  the  Modified  Equity 
Basis 

B.C.  Pavilion  Corporation . 

British  Columbia  Assessment  Authority . 

British  Columbia  Enterprise  Corporation . 

British  Columbia  Ferry  Corporation . 

British  Columbia  Housing  and  Employment 

Development  Financing  Authority . 

British  Columbia  Housing  Management  Com¬ 
mission  . 

British  Columbia  Hydro  and  Power  Authority.. 
British  Columbia  Liquor  Distribution  Branch... 

British  Columbia  Lottery  Corporation . 

British  Columbia  Petroleum  Corporation . 

British  Columbia  Railway  Company . 

British  Columbia  Steamship  Company  (1975) 

Ltd . 

British  Columbia  Transit . 


Balance  Sheet  Operating  Statement 


Assets 

Liabilities 

Equity 

Income 

Expenditure 

Net  Earnings 
(losses) 

$ 

$ 

$ 

$ 

$ 

$ 

2,596 

2,502 

94 

2,946 

2,937 

9 

994 

547 

447 

3,432 

3,301 

131 

755,575 

621,795 

133,780 

332,524 

312,582 

19,942 

634,716 

634,716 

0 

85,503 

85,503 

0 

353 

347 

6 

551 

552 

(1) 

2,415 

1,364 

1,051 

4,113 

4,131 

(18) 

17,092 

13,298 

3,794 

11,920 

10,472 

1,448 

5,461 

49 

5,412 

3,060 

3,327 

(267) 

1,025,920 

1,025,920 

0 

152,291 

152,291 

0 

1,201,634 

1,201,634 

0 

1  79,699 

179,699 

0 

118,453 

86,640 

31,813 

171,860 

154,360 

17,500 

6,992 

5,340 

1,652 

11,741 

11,914 

(173) 

77 

11 

66 

25,854 

25,788 

66 

88 

74 

14 

898 

937 

(39) 

18,634 

1,449 

17,185 

1,436 

1,322 

114 

32 

22 

10 

985 

975 

10 

94,923 

94,923 

0 

22,901 

22,901 

0 

139,930 

139,930 

0 

1,481,524 

1,481,524 

0 

13,598 

283 

13,315 

15,937 

3,136 

12,801 

23,077 

414 

22,663 

21,010 

20,513 

497 

2,390 

1,105 

1,285 

3,049 

3,413 

(364) 

4,064,950 

3,832,363 

232,587 

2,533,234 

2,481,578 

51,656 

171,307 

14,052 

157,255 

32,906 

30,508 

2,398 

7,722 

4,538 

3,184 

48,381 

49,047 

(666) 

0 

0 

0 

0 

0 

0 

593,809 

436,481 

157,328 

284,791 

290,025 

(5,234) 

1,699 

799 

900 

142 

2 

140 

28,102 

19,440 

8,662 

112,875 

112,837 

38 

9,608,000 

8,649,000 

959,000 

2,072,000 

1,671,000 

401,000 

55,363 

55,363 

0 

1,305,739 

850,192 

455,547 

73,441 

73,441 

0 

676,411 

451,568 

224,843 

4,477 

3,441 

1,036 

49,143 

47,349 

1,794 

1,340,649 

357,822 

982,827 

325,188 

271,351 

53,837 

2,573 

115 

2,458 

363 

703 

(340) 

1,766,111 

1,559,677 

206,434 

507,505 

503,466 

4,039 

C4 


PROVINCE  OF  BRITISH  COLUMBIA 


Summary  of  Financial  Statements 
of  Government  Organizations  and  Enterprises — Continued 
(Unaudited) 

In  Thousands 


Recorded  on  the  Modified 
Equity  Basis — Continued 

Creston  Valley  Wild  life  Management  Authority 

Trust  Fund . 

Duke  Point  Development  Limited . 

Insurance  Corporation  of  British  Columbia . 

Pacific  National  Exhibition . 

Plain  Language  Institute  of  British  Columbia 

Society . 

Provincial  Capital  Commission . 

Provincial  Rental  Housing  Corporation . 

W.L.C.  Developments  Ltd . 

1  78561  B.C.  Ltd.  (formerly  Pacific  Coach  Lines 
Limited) . 


Balance  Sheet 


Assets 

Liabilities 

Equity 

$ 

$ 

$ 

201 

81 

120 

13,075 

21,846 

(8,771) 

3,032,560 

2,963,303 

69,257 

34,850 

2,857 

31,993 

215 

20 

195 

4,280 

467 

3,813 

228,290 

80,848 

147,442 

25,104 

6,882 

18,222 

42 

0 

42 

16,991,870 

14,250,473 

2,741,397 

21,056,820 

18,082,836 

2,973,984 

Operating  Statement 


Income 

Expenditure 

Net  Earnings 
(losses) 

$ 

$ 

$ 

311 

394 

(83) 

872 

1,262 

(390) 

1,850,583 

1,948,981 

(98,398) 

26,198 

24,638 

1,560 

427 

471 

(44) 

2,974 

2,985 

(11) 

9,179 

7,206 

1,973 

3,838 

2,559 

1,279 

0 

0 

0 

7,309,826 

6,266,544 

1,043,282 

9,843,060 

8,748,122 

1,094,938 

The  figures  on  this  schedule  are  taken  from  the  financial  statements  of  the  above  listed  entities  which  are  contained  in  this  volume.  As  they  do  not  all  have  the  same 
fiscal  year  end,  totals  do  not  all  apply  to  the  1 991/92  fiscal  year.  Totals  are  shown  only  to  give  the  reader  an  idea  of  the  size  and  scope  of  the  organizations  on  a  collective 
basis. 


PUBLIC  ACCOUNTS  1991/92 


C  5 


B.C.  Health  Care  Risk  Management  Society 


Coopers 

&Lybrand 


chartered  accountants 


777  Broughton  Street 
Victoria  British  Columbia 
Canada  V8W  tE3 


a  member  firm  of 

Coopers  &  Lybrand  (international) 


telephone  (604)  384-4131 
telecopier  (604)  384-1194 


AUDITORS’  REPORT 


To  the  Members  of 

B.C.  Health  Care  Risk  Management  Society 


We  have  audited  the  balance  sheet  of  B.C.  Health  Care  Risk  Management  Society 
as  at  March  31 ,  1 992  and  the  statements  of  operations  and  surplus,  and  changes  in 
financial  position  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  society’s  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  society  as  at  March  31 , 1 992  and  the  results  of  its  operations 
and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles.  As  required  by  the  British  Columbia 
Society  Act,  we  report  that,  in  our  opinion,  these  principles  have  been  applied  on  a 
basis  consistent  with  that  of  the  preceding  year. 


Victoria,  B.C. 


May  28,  1992 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  Health  Care  Risk  Management  Society 


Balance  Sheet 
As  at  March  31,  1992 


1992 

1991 

ASSETS 

Cash 

$  82,782 

$ 

100,803 

Prepaid  Expenditures 

13,000 

12,610 

Accounts  Receivable 

2,500,254 

629 

$  2,596,036 

$ 

114,042 

LIABILITIES  AND  SURPLUS 

Accounts  Payable  and  Accrued  Liabilities 

$  2,501,900 

$ 

28,929 

Surplus 

94,136 

85,113 

$  2,596,036 

$ 

114,042 

SIGNED  ON  BEHALF  OF  THE  BOARD 


Director 


0^ 

1  Director 


Coopers 

&Lybrand 


PUBLIC  ACCOUNTS  1991/92 


C  7 


B.C.  Health  Care  Risk  Management  Society 

Statement  of  Operations  and  Surplus 
For  the  Year  Ended  March  31,  1992 


1992 

1991 

Revenue 

Grants  from  the  Province  of  British  Columbia 

$  2,941,264 

$  5,346,177 

Interest 

4,533 

9,859 

2,945,797 

5,356,036 

Expenditures 

Audit 

2,302 

1,631 

Conferences 

2,126 

- 

Contracted  administration  and  loss  control 

394,020 

349,435 

Indemnification  costs  (note  2) 

2,500,000 

5,000,000 

Insurance  costs 

12,610 

12,566 

Office 

9,470 

2,236 

Purchase  of  capital  assets  (note  3) 

7,567 

- 

Travel 

8,679 

6,325 

2,936,774 

5,372,193 

Excess  (Deficiency)  of  Revenue 

over  Expenditures 

9,023 

(16,157) 

Surplus  -  Beginning  of  Year 

85,113 

101,270 

Surplus  -  End  of  Year 

$  94,136 

$  85,113 

I  Coopers 
I  &Ly brand 


PROVINCE  OF  BRITISH  COLUMBIA 


C  8 


B.C.  Health  Care  Risk  Management  Society 


Statement  of  Changes  in  Financial  Position 
For  the  Year  Ended  March  31, 1992 


1992 

1991 

Cash  from  Operations 

Excess  (deficiency)  of  revenue  over  expenditures 
Changes  in  non-cash  working  capital 

$  9,023 

$  (16.157) 

balances  related  to  operations  - 
Prepaid  expenditures 

(390) 

(44) 

Accounts  receivable 

(2,499,625) 

136 

Accounts  payable  and  accrued  liabilities 

2,472,971 

26,876 

(Decrease)  Increase  in  Cash 

(18,021) 

10,811 

Cash  -  Beginning  of  Year 

100,803 

89,992 

Cash  -  End  of  Year 

$  82,782 

$  100,803 

Coopers 

&Lybrand 


PUBLIC  ACCOUNTS  1991/92 


C  9 


B.C.  Health  Care  Risk  Management  Society 


Notes  to  Financial  Statements 
For  the  Year  Ended  March  31,  1992 


1.  Nature  of  the  Association 


The  B.C.  Health  Care  Risk  Management  Society  was  incorporated  under  the  Society  Act  on 
October  21 , 1 986.  The  purpose  of  the  society  is  to  provide  risk  management  services  for  hospitals 
and  other  health  care  agencies. 

Significant  Accounting  Policy 

Capital  assets  are  recorded  as  expenditures  at  the  time  the  payment  is  made  or  the  liability  has 
been  Incurred. 


2.  indemnification  Costs 

The  society  has  arranged  with  the  British  Columbia  Provincial  Government  to  provide  hospitals  and 
other  specifically  Identifiable  health  care  facilities  with  an  indemnification  for  liability  claims  against 
the  facility.  The  cost  of  $2,500,000  (1991  -  $5,000,000)  protects  the  society  against  liability  claims 
where  the  incident  occurred  during  the  fiscal  year  ended  March  31 ,  1 992. 


3.  Purchase  of  Capital  Assets 

During  the  year  the  society  expensed  the  following  capital  assets: 

Computer  $  6,157 

Furniture  1,410 


$  7,567 


C  10 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  Pavilion  Corporation 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


111  Dunsmuir  Street 
PO.  Box  10426 
Vancouver,  B.C..  Canada 
V7Y1K3 


Telephone:  (604)  691-3000 
Direct  Dial:  (604) 

Fax:  (604)  691-3031 
File  Ref. 


AUDITORS’  REPORT  TO  THE  SHAREHOLDER 


We  have  audited  the  balance  sheet  of  B.C.  Pavilion  Corporation  as  at  March  31,  1992  and  the 
statements  of  revenue  and  expenses  and  deficit,  changes  in  financial  position  and  contributed 
surplus  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Corporation's 
management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our 
audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of 
the  Corporation  as  at  March  31, 1992  and  the  results  of  Its  operations  and  the  changes  in  Its  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles.  As 
required  by  the  Company  Act  (British  Columbia),  we  report  that,  in  our  opinion,  these  principles  have 
been  applied  on  a  basis  consistent  with  that  of  the  preceding  year. 


Chartered  Accountants 


Vancouver,  Canada 
Mays,  1992 


11^ 


Member  Firm  o( 

Klynveld  Peal  Marwick  Goerdeler 


PUBLIC  ACCOUNTS  1991/92 


C  11 


B.C.  PAVILION  CORPORATION 

Balance  Sheet 
(in  thousands) 

March  31, 1992,  with  comparative  figures  for  1991 


1992 

1991 

Assets 

Current  assets: 

Cash  and  term  deposits 

Accounts  receivable 

Supplies  inventory 

Prepaid  expenses 

$  10,395 
4,006 

87 

272 

$ 

2,181 

92 

194 

14,760 

2,467 

Capital  assets  (note  3) 

156,547 

154,954 

$  171,307 

$  157,421 

Liabilities  and  Shareholder's  Equity 

Current  liabilities: 

Short-term  borrowings  (note  4) 

Accounts  payable  and  accrued  liabilities 

Deposits  and  deferred  revenue 

$  6,086 
4,039 
3,321 

$ 

2,675 

1,947 

13,446 

4,622 

Deferred  government  contributtons  (note  5) 

606 

_ 

14,052 

4.622 

Shareholder's  equity: 

Share  capital  (note  6) 

Contributed  surplus 

Deficit 

1 

157,254 

1 

155,196 

(2,398) 

157.255 

152,799 

Contingent  liability  (note  7) 

Commitments  (note  8) 

Subsequent  event  (note  9) 

$  171,307 

$  157,421 

See  accompanying  notes  to  financial  statements. 


C  12 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  PAVILION  CORPORATION 

Statement  of  Revenue  and  Expenses  and  Deficit 
(in  thousands) 

Year  ended  March  31, 1992,  with  comparative  figures  for  1991 


1992 

1991 

Revenue  from  operations 

$  25,854 

$  27,993 

Direct  event  costs 

12,411 

14,465 

13,443 

13,528 

Facility  expenses: 

Staffing  costs 

6,943 

7,408 

Operating  expenses 

4,211 

4,045 

General  and  administration 

2,868 

2,165 

Business  development 

2,522 

3,529 

Fees 

796 

817 

Transportation  Museum  operations  (note  9) 

757 

1,263 

Depreciation 

3,558 

3,749 

21,655 

22,976 

Net  expenses  prior  to  recoveries 

8,212 

9,448 

Recoveries: 

Contributions  from  the  Province  of  British  Columbia  (note  5) 
Amortization  of  contributed  surplus  to  offset 

7,052 

3,301 

depreciation  charged  on  contributed  assets 

3,558 

3,749 

10,610 

7,050 

Revenue  and  recoveries  for  the  year  in  excess 

of  (less  than)  expenses 

2,398 

(2,398) 

Deficit,  beginning  of  year 

2,398 

— 

Deficit,  end  of  year 

$ 

$  2,398 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  13 


B.C.  PAVILION  CORPORATION 

Statement  of  Changes  in  Financial  Position 
(in  thousands) 

Year  ended  March  31 , 1992,  with  comparative  figures  for  1991 


1992 

1991 

Cash  provided  by  (used  for): 

Operations: 

Net  expenses  prior  to  recoveries 

$  (8,212) 

$  (9,448) 

Depreciation,  an  item  not  involving  cash 

3,558 

3,749 

Changes  in  non-cash  operating  working  capital: 

(4,654) 

(5,699) 

Accounts  receivable 

(1,825) 

2,826 

Supplies  inventory 

5 

(3) 

Prepaid  expenses 

(78) 

200 

Accounts  payable  and  accrued  liabilities 

1,364 

(1,356) 

Deposits  and  deferred  revenue 

1,374 

(404) 

Financing: 

Contributions  from  the  Province  of  British  Columbia  towards: 

(3,814) 

(4,436) 

Operations 

7,052 

3,301 

Capital  asset  acquisitions 

5,616 

1,155 

Deferred  Government  contributions 

606 

- 

13,274 

4,456 

Investments: 

Proceeds  on  sale  of  capital  assets 

465 

- 

Capital  asset  additions 

(5,616) 

(1,155) 

(5,151) 

(1,155) 

Increase  (decrease)  in  cash  position 

4,309 

(1,135) 

Cash  position,  beginning  of  year 

- 

1,135 

Cash  position,  end  of  year 

$  4,309 

$ 

Cash  position  is  defined  as  cash  and  term  deposits  less  short-term  borrowings. 
See  accompanying  notes  to  financial  statements. 


C  14 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  PAVILION  CORPORATION 

Statement  of  Contributed  Surplus 
(in  thousands) 


Year  ended  March  31, 1992,  with  comparative  figures  for  1991 


1992 

1991 

Balance,  beginning  of  year 

$  155,196 

$  157,790 

Contributions  from  the  Province  of  British 

Columbia  towards  capital  asset  acquisitions  (note  5) 

5,616 

1,155 

Transferred  to  statement  of  revenue  and 
expenses  to  offset  depreciation  charged 
on  contributed  assets 

(3,558) 

(3,749) 

Balance,  end  of  year 

$  157,254 

$  155,196 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  15 


B.C.  PAVILION  CORPORATION 

Notes  to  Financial  Statements 
Year  ended  March  31, 1992 


1 .  General: 

B.C.  Pavilion  Corporation  was  incorporated  by  the  Province  of  British  Columbia  on  May  3,  1984 
under  the  Company  Act  of  British  Columbia.  The  mandate  of  the  Corporation  is  to  manage  certain 
public  facilities  in  the  Province.  Accordingly,  the  Corporation  owns  and  operates  B.C.  Place 
Stadium,  Bridge  Studios  and  Tradex  and  operates  the  following  public  facilities  under  separate 
agreements: 

Vancouver  Trade  and  Convention  Centre 
Robson  Conference  Centre 
B.C.  Transportation  Museum 

2.  Summary  of  significant  accounting  policies: 

The  accompanying  financial  statements  are  prepared  in  accordance  with  generally  accepted 
accounting  principles  which  are  considered  appropriate  for  B.C.  Pavilion  Corporation.  Specific 
accounting  policies  are: 

(a)  Capital  assets: 

Capital  assets  have  been  recorded  as  follows: 

(i)  capital  assets  funded  through  contributions  by  the  Province  of  British  Columbia,  either 
to  the  Corporation  or  predecessor  corporations,  at  cost.  The  related  contribution  is 
initially  recorded  as  a  credit  to  contributed  surplus; 

(ii)  capital  assets  specifically  funded  by  the  federal  government  at  cost  net  of  the  related 
contribution: 

(iii)  all  assets  are  depreciated  over  their  estimated  useful  lives  to  the  Corporation. 
Depreciation  is  provided  on  the  following  bases: 


Asset  classification 

Depreciation  term 

Buildings  and  improvements 

10  to  50  years.  Buildings  are  depreciated  on  a 
sinking-fund  basis;  Improvements  on  a  straight- 
line  basis 

Furniture 

5  years  straight-line 

Computers 

3  years  straight-line 

Leasehold  improvements 

Over  the  shorter  of  the  estimated  useful  life  of 
the  improvement,  or  the  term  of  the  lease 

Other  capital  assets 

1  to  10  years  on  a  straight-line  basis,  except 
motor  vehicles  which  are  at  30%  of  the  declining- 
balance 

C  16 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  PAVILION  CORPORATION 

Notes  to  Financial  Statements,  page  2 
Year  ended  March  31, 1992 


2.  Summary  of  significant  accounting  policies  (continued): 

(b)  Deferred  government  contributions: 

Government  funding  from  the  Province  of  British  Columbia  Is  Initially  deferred  in  the  accounts 
of  the  Corporation.  Funding  towards  operations  is  recognized  as  a  recovery  In  the  statement 
of  revenue  and  expenses  and  deficit  to  the  extent  that  the  funds  are  utilized  or  required. 
Funding  towards  capital  asset  acquisitions  Is  allocated  to  contributed  surplus  at  the  time  the 
related  asset  is  acquired. 

(c)  Amortization  of  contributed  surplus: 

Contributed  surplus  Is  amortized  and  reflected  as  a  recovery  in  the  statement  of  revenue  and 
expenses  and  deficit  in  an  amount  equal  to  that  required  to  offset  depreciation  charged  on 
contributed  assets. 

(d)  New  business  development: 

Start-up  costs  relating  to  new  business  development  are  expensed  In  the  year  incurred.  Any 
related  revenues  are  only  recognized  as  earned. 

(e)  Operating  revenues  and  expenses  are  recorded  on  an  accrual  basis. 


3.  Capital  assets: 

(in  thousands) 


1992 

1991 

Cost 

Accumulated 

depreciation 

Net  book 
value 

Net  book 
value 

Facilities: 

B.C.  Place  Stadium 

$  173,781 

$  28,364 

$  145,417 

$  148,306 

Bridge  Studios 

6,636 

1,065 

5,571 

5,807 

Tradex 

4,595 

154 

4,441 

- 

Vancouver  Trade  and 
Convention  Centre 

1,353 

683 

670 

630 

Other 

1,170 

722 

448 

211 

$  187,535 

$  30,988 

$  156,547 

$  154,954 

4 .  Short-term  borrowings: 

During  the  year,  In  order  to  fund  construction  of  Tradex,  and  cover  operating  shortfalls,  the 
Corporation  obtained  unsecured  loans  from  the  Province  of  British  Columbia  with  varying  maturity 
dates.  During  the  month  of  March  1992,  the  Corporation  received  funding  from  the  Provincial 
Government  to  repay  the  loans.  The  loans  outstanding  at  March  31,  1992  were  repaid  within  30 
days,  with  average  interest  rates  of  7%  per  annum. 


PUBLIC  ACCOUNTS  1991/92 


C  17 


B.C.  PAVILION  CORPORATION 

Notes  to  Financial  Statements,  page  3 
Year  ended  March  31 , 1992 


5.  Deferred  government  contributions: 

(in  thousands) 

1992 

1991 

Balance,  beginning  of  year 

$ 

- 

$ 

- 

Contribution  for  the  year  from  the  Province  of  British  Columbia 

13,274 

4,455 

Allocated  as  follows: 

Transferred  to  operations: 

For  current  year's  funding 

To  cover  prior  years  deficit 

4,654 

2,398 

3,301 

Contributed  surplus  for  capital  asset  acquisitions 

7,052 

5,616 

3,301 

1,154 

12,668 

4,455 

Balance,  end  of  year 

$ 

606 

$ 

- 

6.  Share  capital: 

Authorized: 

10,000  common  shares  with  no  par  value 
Issued  and  fully  paid: 

1  share,  held  by  her  Majesty  the  Queen  in  right  of  the  Province  of  British  Columbia 


7.  Contingent  liability: 

The  Corporation's  lease  to  operate  the  B.C.  Enterprise  Centre,  which  was  terminated  effective 
September  30,  1989,  provided  that  the  rent  payable  to  the  landlord  for  the  six  month  period 
April  1 ,  1989  to  September  30,  1989  would  be  subject  to  review.  Per  the  terms  of  the  lease,  an 
appraiser  was  jointly  appointed  to  determine  the  fair  market  rent.  While  the  appraiser  found  that 
the  rent  paid  by  the  Corporation  was  fair  market  rent,  the  procedures  to  be  employed  pursuant  to 
the  lease  terms  were  not  followed.  The  landlord  did  not  agree  with  the  results  of  the  review  and 
filed  an  action  In  the  Supreme  Court  of  British  Columbia  to  have  the  appraiser's  findings  set  aside. 
This  action  was  dismissed  by  the  Supreme  Court  in  June  1990  and  the  landlord  subsequently 
filed  a  Notice  of  Appeal.  The  appeal  was  heard  in  the  B.C.  Court  of  Appeal  in  June  1991  and  the 
Court  set  aside  the  original  decision.  The  landlord  has  the  legal  right  to  require  that  the  appraisal 
process  be  repeated.  The  Corporation's  position  is  that  the  rents  actually  paid  were  in  accordance 
with  the  lease,  and  consequently  no  provision  for  rent  escalation  has  been  made  in  these  financial 
statements. 


C  18 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  PAVILION  CORPORATION 

Notes  to  Financial  Statements,  page  4 
Year  ended  March  31,  1992 


8.  Commitments: 

Minimum  obligations  under  long-term  operating  leases  are  as  follows: 


(ipitiousands) 

1993 

$  362 

1994 

173 

1995 

184 

1996 

195 

1997 

154 

9.  B.C.  Transportation  Museum  management  contract: 

On  November  1,  1989,  the  Corporation  entered  into  an  agreement  with  the  Historic 
Transportation  Society  of  B.C.  to  manage,  operate  and  assist  In  financing  the  B.C.  Transportation 
Museum.  For  the  year  ended  March  31,  1992,  the  Corporation  loaned  $757,000  (1991  - 
$1 ,263,000)  to  the  Society  and  has  forgiven  such  loans. 

The  closure  of  the  B.C.  Transportation  Museum  was  announced  in  the  Provincial  Budget  In  early 
1992.  The  Corporation  will  cease  operation  of  the  Museum  on  June  30,  1992.  Operational  and 
closure  costs  from  this  date  forward  will  be  provided  by  the  Royal  British  Columbia  Museum,  the 
owner  of  the  vehicle  collection. 

10.  Related  party  transactions: 

In  the  normal  course  of  operations,  the  Corporation  acquires  from  and  sells  to  the  Province  of 
British  Columbia  and  certain  Crown  corporations  goods  and  services,  predominantly  under 
prevailing  trade  terms. 


PUBLIC  ACCOUNTS  1991/92 


C  19 


B.C.  Summer  and  Winter  Games  Society 


MANTELL 
DICKSON 
BLADES  & 
DAVIES 


A  Partnership  of  Incorporated  Professionals 


CHARTERED  ACCOUNTANTS 


FIFTH  FLOOR 


844  COURTNEY  STREET 
VICTORIA,  B.C.  V8W  1C4 


TELEPHONE  (604)  386-5544 
FAX  (604)  381-3734 


AUDITORS'  REPORT 


To  The  Directors: 

B.C.  Summer  and  Winter  Games  Society 

We  have  audited  the  balance  sheet  of  B.C.  Summer  and  Winter  Games  Society  as  at 
March  31,  1992  and  the  statements  of  revenue,  expenditure  and  surplus  and  changes 
in  financial  position  for  the  year  then  ended.  These  financial  statements  are 
the  responsibility  of  management.  Our  responsibility  is  to  express  an  opinion 
on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material 
respects,  the  financial  position  of  the  Society  as  at  March  31,  1992  and  the 
results  of  its  operations  and  the  changes  in  its  financial  position  for  the  year 
then  ended  in  accordance  with  generally  accepted  accounting  principles.  As 
required  by  the  Society  Act  of  British  Columbia,  we  report  that,  in  our  opinion, 
these  principles  have  been  applied  on  a  basis  consistent  with  that  of  the 
preceding  year. 


Victoria,  B.C. 
June  16,  1992 


Chartered  Accountants 


C  20 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
(Incorporated  under  the  Society  Act  of  British  Columbia) 

BALANCE  SHEET 

MARCH  31,  1992 


ASSETS 


CURRENT 

Cash 

Accounts  receivable 

Goods  and  Services  Tax  recoverable 

Prepaid  insurance 


CAPITAL  ASSETS  (Note  3) 


LIABILITIES 


CURRENT 

Accounts  payable  and  accrued  liabilities 
Legacy  grants 

-  Penticton  1990  Winter  Games  Society 

-  Prince  George  1990  Summer  Games  Society 

-  Coquitlam  1991  Summer  Games  Society 


1992 

$  826,699 
127,389 
30,028 
9,591 

993,707 


$  993,707 

$  476,679 

70,000 

546,679 


1991 

$  603,171 
134,540 
8,297 
9,386 

755,394 


$  755,394 


$  299,666 

70,000 

70,000 


439,666 


SURPLUS 


SURPLUS 


447,028 
$  993,707 


315,728 
$  755,394 


See  accompanying  notes 

MANTl 

DICKS( 

BLADE 

DAVIE! 


PUBLIC  ACCOUNTS  1991/92 


C  21 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
STATEMENT  OF  REVENUE,  EXPENDITURE  AND  SURPLUS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


REVENUE 

Grants  -  Province  of  British  Columbia 
Corporate  sponsors  (Schedule  4) 
Interest  earned 


EXPENDITURES 

Salaries  and  employee  benefits  (Schedule  1) 
Travel  and  accommodation  (Schedule  1) 
Professional  services  (Schedule  1) 

Computer  maintenance  (Schedule  2) 

Office  and  business  expenses  (Schedule  2) 
Advertising  and  publications  (Schedule  2) 
Insurance,  leases,  and  utilities  (Schedule  2) 
Games  operating  costs  (Schedule  3) 

Data  and  word  processor  acquisition 
Machinery  and  equipment  (Schedule  3) 

Operating  grants  (Schedule  3) 

Legacy  grants  (Schedule  3) 


EXCESS  OF  REVENUE  OVER  EXPENDITURE  FOR  THE  YEAR 
SURPLUS  FROM  HOST  SOCIETIES  (Note  4) 

SURPLUS  AT  BEGINNING  OF  YEAR 
SURPLUS  AT  END  OF  YEAR 


1992 


$  3,000,000 
211,300 
127.919 

3.339,219 


273,968 

116,909 

135,783 

28,719 

91,369 

93,124 

90,116 

742,381 

13,413 

4,909 

1,570,000 

140.000 

3.300.691 

38,528 
92,772 
315.728 
$  447.028 


1991 


$  3,000,000 
132,545 
219.239 

3,351.784 


244,457 

80,413 

135,958 

30,621 

83,564 

85,759 

93,523 

945,392 

701 

48,402 

1,430,000 

140,000 

3.318.790 

32,994 
81,211 
201.523 
$  315.728 


See  accompanying  notes 


MANTELL 
DICKSON 
BLADES  & 
DAVIES 


C  22 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992  1991 


OPERATING  ACTIVITIES 

Working  capital  from  operations 

Excess  of  revenue  over  expenditure 

Amortization,  not  affecting  working  capital 

$ 

38,528 

14.101 

$  32,994 

49.104 

52,629 

82,098 

Changes  in  non-cash  operating  working  capital 
Accounts  receivable 

Prepaid  insurance 

Accounts  payable  and  accrued  liabilities 

(14,580) 

(  205) 

107.013 

(142,572) 

349 

2.647 

Cash  from  (used  in)  operations 

144.857 

(  57.478') 

INVESTING  ACTIVITY 

Surplus  from  host  societies 

Purchase  of  equipment 

92,772 

a4.101') 

81,211 
(  49.104') 

78.671 

32.107 

INCREASE  (DECREASE)  IN  CASH  DURING  THE  YEAR 

223,528 

(  25,371) 

CASH  AT  BEGINNING  OF  YEAR 

603.171 

628.542 

CASH  AT  END  OF  YEAR 

$ 

826.699 

$  603.171 

See  accompanying  notes 


MANX 

DICKS 

BLADE 

DAVIE: 


PUBLIC  ACCOUNTS  1991/92 


C  23 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


1.  OPERATIONS 

The  Society  was  incorporated  on  June  26,  1987  for  the  purposes  of  managing, 
operating  and  promoting  the  B.C.  Summer  and  Winter  Games  and  for  fostering 
interest  and  participation  in  sports  and  sporting  activity  in  British 
Columbia . 

The  British  Columbia  Summer  and  Winter  Games  are  planned  and  operated  by 
societies  incorporated  in  the  host  community  for  each  event.  These 
financial  statements  do  not  reflect  the  revenues  and  expenditures  of  the 
local  host  societies. 

The  Society  is  responsible  for,  and  receives  additional  grants  in  respect 
of,  the  funding  of  host  society  grants  and  certain  other  expenses, 
including  transportation  previously  disbursed  directly  by  the  Province  of 
British  Columbia. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 
Capital  Assets 

Equipment  and  leasehold  improvements  are  recorded  at  cost,  and  are  fully 
amortized  in  the  year  of  acquisition. 

Revenue  Recognition 

Revenue  from  Provincial  Grants  has  been  recorded  on  the  accrual  basis. 
Provincial  Contributions 

The  financial  statements  do  not  reflect  certain  administrative  expenses 
paid  directly  by  the  Province  of  British  Columbia,  in  the  delivery  of 
the  games . 

Legacy  Grants 

Legacy  payments  are  made  to  host  societies  for  distribution  to  local 
sports  and  recreation  groups  upon  satisfactory  completion  of  an 
application  and  approval  process  within  twelve  months  of  completion  of 
the  games.  The  Society  recognizes  the  legacy  grant  liability  upon 
substantial  completion  of  the  application  and  approval  process  and  other 
matters  relating  to  the  finalization  of  the  host  society  accounts. 


MANTELL 
DICKSON 
BLADES  C&: 
DAVIES 


C  24 


PROVINCE  OF  BRITISH  COLUMBIA 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


3.  CAPITAL  ASSETS 


Gost 

Accumulated 

Amortization 

Net  Book 
Value 

Games  equipment  and  supplies 

Office  machinery  and  equipment 
Leasehold  improvements 

$  97,922 

243,617 
17.172 

$ 

97,922 

243,617 

17.172 

$ 

$  358.711 

$ 

358.711 

$ 

Equipment  additions  during  the  year 

consist  of: 

Office  equipment  -  Fax  Machine 
Gomputer  equipment 

$  2,067 

12.034 

$  14.101 

4.  SURPLUS  FROM  HOST  SOCIETIES 

Surpluses  from  the  host  societies  is  comprised  of  Coquitlam  1991  Summer 
Games  Society  -  $63,344  and  Duncan/North  Cowichan  1991  Winter  Games  Society 
$29,428.  Receipt  of  surplus  from  summer  and  winter  games  host  societies 
is  recorded  at  the  earlier  of  cash  receipt  and  final  determination  of  the 
amount  of  the  surplus . 


5 .  CONTRACTUAL  COMMITMENTS 

The  Society  leases  premises  for  $46,615  per  annum,  under  a  lease  expiring 
on  November  30,  1993.  The  Society  is  also  leasing  office  equipment  for 
$9,115  per  annum,  under  leases  expiring  in  1993  and  1996.  The  Society  has 
a  contractual  commitment  to  the  Executive  Director  which  extends  to  March 
1994. 

Maximum  annual  commitments  in  each  of  the  next  three  fiscal  vears  are  as 
follows : 

1993 

1994 

1995 


$  142,130 
125,248 
7.772 

$  275.150 


MANT 

DICKS 

BLAD] 

DAVIE 


PUBLIC  ACCOUNTS  1991/92 


C  25 


SCHEDULE  1 

B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 

SALARIES  AND  EMPLOYEE  BENEFITS 
TRAVEL  AND  ACCOMMODATION 
PROFESSIONAL  SERVICES 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

SALARIES  AND  EMPLOYEE  BENEFITS 

Base  salaries 

$  220,941 

$ 

202,699 

Canada  pension 

3,894 

3,597 

Casual  employees 

6,556 

7,082 

Group  insurance 

10,230 

7,716 

Health  development 

325 

- 

Medical  services  plan 

3,520 

3,149 

Overtime 

8,750 

10,006 

Pension  plan 

11,900 

4,250 

Unemployment  insurance 

7.852 

5.958 

$  273.968 

$ 

244.457 

TRAVEL  AND  ACCOMMODATION 

Travel  and  accommodation 

Per  diem 

Mileage  and  parking 

$ 

92,320 

21,294 

3.295 

$ 

60,183 

16,370 

3.860 

$ 

116.909 

$ 

80.413 

PROFESSIONAL  SERVICES 

Executive  director 

$  86,400 

$ 

85,100 

Acquiring  corporate  sponsors 

- 

21,000 

Economic  impact  study 

17,999 

- 

External  accountants 

12,362 

13,043 

Games  Curriculum  (Co-op) 

- 

5,400 

Independent  audits 

11,157 

3,667 

Media  relations 

- 

1,025 

Special  games  projects 

5,865 

3,000 

Sports  medicine  council 

2.000 

3.723 

$  135.783 

$ 

135.958 

MANTELL 

DICKSON 

BLADES 

DAVIES 


26 


PROVINCE  OF  BRITISH  COLUMBIA 


SCHEDULE  2 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 

COMPUTER  MAINTENANCE 
OFFICE  AND  BUSINESS  EXPENSES 
ADVERTISING  AND  PUBLICATIONS 
INSURANCE,  LEASES,  UTILITIES 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992  1991 


COMPUTER  MAINTENANCE 


B.C.  Systems  Corporation 

$ 

- 

$ 

108 

Maintenance 

- 

3,000 

Program  enhancements 

28, 

,719 

27.513 

$ 

28, 

,719 

$ 

30.621 

OFFICE  AND  BUSINESS  EXPENSES 

Advisory  committee  meetings 

$ 

3,635 

$ 

1,595 

Board  administration 

- 

67 

Business  expenses 

10,918 

20,000 

G.S.T.  expense  portion 

31,865 

8,304 

Office  expenses 

17,107 

11,007 

Office  supplies 

9,215 

19,253 

Postage 

16,243 

15,601 

Staff  training 

2,386 

2,616 

Workshops 

- 

5.121 

$ 

91.369 

$ 

83.564 

ADVERTISING  AND  PUBLICATIONS 

Corporate  sponsor  -  souvenir  programme 

$ 

19,955 

$ 

19,635 

Highway  sign  installation 

3,398 

- 

Printing  rule  books 

12,931 

14,324 

Provincial  advertising 

6,840 

400 

Television  advertising 

50.000 

51.400 

$ 

93.124 

$ 

85.759 

INSURANCE,  LEASES,  UTILITIES 

Equipment  lease 

$ 

12,806 

$ 

17,473 

Games  truck  insurance 

450 

957 

Maintenance 

(51) 

1,251 

Office  and  liability  insurance 

11,493 

12,352 

Rent,  utilities,  property  tax 

47,703 

46,615 

Telephone 

17.715 

14.875 

$ 

90.116 

$ 

93.523 

MAN' 

DICK! 

BLAD 

DAVI 


PUBIIC  ACCOUNTS  1991/92 


C  27 


SCHEDULE  3 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 

GAMES  OPERATING  COSTS 
MACHINERY  AND  EQUIPMENT 
OPERATING  GRANTS 
LEGACY  GRANTS 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

GAMES  OPERATING  COSTS 

External  transportation  -  Summer 

$ 

356,885 

$ 

495,673 

External  transportation  -  Winter 

333,587 

405,113 

Games  general  supplies 

48,315 

31,208 

Games  costs 

- 

265 

Moving 

- 

6,184 

Premier's  Gertificates 

3.594 

6.949 

$ 

742.381 

$ 

945.392 

MACHINERY  AND  EQUIPMENT 

Foam  beds 

$ 

- 

$ 

16,853 

Flags  and  signs 

1,715 

18,135 

Office  equipment 

2,067 

- 

Permanent  games  signs 

975 

800 

Storage  trailer 

152 

12.614 

$ 

4.909 

$ 

48.402 

OPERATING  GRANTS 

Prince  George  1990  Summer  Games  Society 
Duncan/North  Cowichan  1991  Winter  Games 
Coquitlam  1991  Summer  Games  Society 
Vernon  1992  Winter  Games  Society 

Port  Alberni  1992  Summer  Games  Society 
Kitimat  1993  Winter  Games  Society 
Chilliwack  1993  Summer  Games  Society 

Society 

$ 

765,000 

610,000 

130,000 

55,000 

10.000 

$ 

745,000 

580,000 

65,000 

35,000 

5,000 

$  1 

.570.000 

$  1 

.430.000 

LEGACY  GRANTS 

Penticton  1990  Winter  Games  Society 
Prince  George  1990  Summer  Games  Society 
Duncan/North  Cowichan  1991  Winter  Games 
Coquitlam  1991  Summer  Games  Society 

Society 

$ 

70,000 

70.000 

$ 

70,000 

70,000 

$ 

140.000 

$ 

140.000 

MANTELL 
DICKSON 
BLADES  <51* 
DAVIES 


28 


PROVINCE  OF  BRITISH  COLUMBIA 


SCHEDULE  U 


B.C.  SUMMER  &  WINTER  GAMES  SOCIETY 
CORPORATE  SPONSORS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

Air  B.C. 

$  12,000 

$  12,000 

B.C.  Credit  Unions 

40,000 

40,000 

B.C.  Telephone 

68,300 

- 

B.C.  Gns 

14,000 

14,000 

Coca  Cola 

50,000 

45,000 

Mining  Association 

- 

3,045 

Overwaitea 

50,000 

40,000 

Williams  Moving  &  Storage 

1.500 

3.000 

235,800 

157,045 

Payments  to  host  communities 

('24.500) 

('24.500) 

$  211.300  $  132.545 


MAN'; 

DICK5 

BLAD 

DAVII 


PUBLIC  ACCOUNTS  1991/92 


C  29 


British  Columbia  Assessment  Authority 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


AUDITOR'S  REPORT 


(604)387-6803 
Fax  (604)387-1230 


To  the  Board  of  Directors  of  the 
British  Columbia  Assessment  Authority,  and 

To  the  Minister  of  Municipal  Affairs,  Recreation  and  Housing, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  British  Columbia  Assessment  Authority  as  at 
December  31,  1991  and  the  statements  of  revenue,  expenditure  and  equity  and  changes 
in  financial  position  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Authority's  management.  My  responsibility  is  to  express  an  opinion 
on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  Authority  as  at  December  31,  1991  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance 
with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
March  9,  1992 


C  30 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  ASSESSMENT  AUTHORITY 
BALANCE  SHEET 
AS  AT  DECEMBER  31,  1991 


ASSETS 

Current  Assets 

Cash  and  temporary  investments 
Accounts  receivable 
Prepaid  expenses 


Capital  Assets  [Note  3] 

Land,  building,  equipment  and  vehicles 
Less  accumulated  amortization 


1991  1990 


$  3,740,420 
326,968 
226.721 

4,294,109 


9,235,875 

5.807.770 

3,428,105 


$  3,821,533 
265,423 
527 . 515 

4,614,471 


7,521,569 

4.783.538 

2,738,031 


$  7,722,214  $  7,352,502 

LIABILITIES  AND  EQUITY 
Current  Liabilities 


Accounts  payable  and  accrued 
Current  portion  of  long-term 

liabilities 

liabilities 

$  4,024,665 
28.421 

$  2,993,274 
16.373 

4,053,086 

3,009,647 

Long-term  Liabilities 

Employees'  past  benefits  [Note  4] 

Less  current  portion 

513,031 

28.421 

509,045 

16.373 

484,610 

492,672 

4,537,696 

3,502,319 

Equity 

In  capital  assets 

From  operations 

3,428,105 
[  243,587] 

2,738,031 

1,112,152 

3,184,518 

3,850,183 

$  7,722,214  $  7,352,502 


The  accompanying  ten  notes  are  an  integral  part  of  these  financial 
statements . 


PUBLIC  ACCOUNTS  1991/92 


BRITISH  COLUMBIA  ASSESSMENT  AUTHORITY 
STATEMENT  OF  REVENUE,  EXPENDITURE  AND  EQUITY 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


i 


REVENUE 

Province  of  British  Columbia  grant 
[Note  5] 

Tax  levies  [Note  6] 

Interest 
I  Other 


EXPENDITURE 

fi 

\  Salaries  and  benefits 
1  Directors'  fees  and  expenses 
Office  accommodation 
Travel 

I  Office 

Interest  [Notes  7  and  10] 
Professional  and  special  services 
Amortization 


1991  1990 


$  5,190,750 

41,869,537 
540,638 
780.015 

48,380,940 


34,832,542 

131,329 

3,182,193 

1,973,907 

2,076,912 

460,201 

5,112,839 

1.276.682 

49,046,605 


$  6,250,000 

36,491,365 
670,721 
767 .336 

44,179,422 


32,087,756 
138,397 
2,210,581 
1,818,893 
2,503,076 
495,468 
4,723,707 
969 .341 

44,947,219 


(EXCESS  OF  EXPENDITURE  OVER 
REVENUE  FOR  THE  YEAR 

EQUITY  -  BEGINNING  OF  YEAR 

SEQUITY  -  END  OF  YEAR 

1 


[  665,665] 

3.850.183 
$  3,184,518 


[  767,797] 

4 . 617 . 980 
$  3,850,183 


C  32 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  ASSESSMENT  AUTHORITY 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1991 


1990 


OPERATING  ACTIVITIES 


Excess  of  expenditure  over 
revenue  for  the  year 
Items  not  affecting  funds: 
Amortization 

Gain  on  disposal  of  capital  assets 
Increase  [decrease]  in  employees' 
past  benefits 

Increase  in  non-cash  working  capital 


$[  665,665] 

1,276,682 
[  45,466] 

3,986 

1.270.640 


$[  767,797] 

969,341 
[  19,839] 

[  4,212] 

317.120 


Funds  provided  by  operations 


1,840,177 


494,613 


INVESTING  ACTIVITIES 


Acquisition  of  capital  assets 
Proceeds  on  disposal  of  capital  assets 


[1,968,980] 
47 . 690 


[1,506,824] 

51.888 


Funds  used  for  investing  activities 


[1,921,290]  [1,454,936] 


[DECREASE]  IN  FUNDS 
FUNDS  -  BEGINNING  OF  YEAR 
FUNDS  -  END  OF  YEAR 


[  81,113] 

3 .821.533 
$  3,740,420 


[  960,323] 

4.781.856 
$  3,821,533 


Funds  consist  of  cash  and  temporary  investments 


PUBLIC  ACCOUNTS  1991/92 


C  33 


BRITISH  COLUMBIA  ASSESSMENT  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  THE  AUTHORITY 

The  purpose  of  the  Authority,  as  set  out  in  the  Assessment 
Authority  Act,  is  to  establish  and  maintain  assessments  that 
are  uniform  in  the  whole  of  the  province  in  accordance  with 
the  Assessment  Act. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 

These  financial  statements  have  been  prepared  in  accordance 
with  generally  accepted  accounting  principles.  Significant 
accounting  policies  followed  in  the  preparation  of  these 
financial  statements  are: 


(a)  Capital  Assets 

Capital  assets  are  stated  at  cost.  Amortization  is 
provided  on  a  straight  line  basis  using  the  following 


annual  rates: 

Building 

5% 

Furniture  and  equipment 

20% 

Motor  vehicles 

20% 

(b)  Revenue 

Revenues  are  recorded  on  an  accrual  basis.  Tax  levy 
revenue  is  recognized  when  taxes  are  collected  by  the 
municipality  or  the  Minister  of  Finance  and  Corporate 
Relations,  at  which  time  they  become  due  to  the 
Authority.  The  basis  of  recognition  of  tax  levy 
revenue  is  also  consistent  with  the  provisions  of 
Section  16(3)  of  the  Assessment  Authority  Act. 


(c)  Temporary  investments 

Temporary  investments  are  recorded  at  the  lower  of  cost 
and  market  value. 


34 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Assessment  Authority 
Notes  to  Fincincial  Statements 


3 .  CAPITAL  ASSETS 


1991 


1990 


Accumulated 

Cost  Amortization  Net 


Net 


Land  $ 

Building 

Furniture  &  equipment 
Motor  vehicles 


178,000 

223,249 

7,696,083 

1.138.543 


$ 

181,007 

4,998,361 

628.402 


$ 


178,000 

42,242 

2,697,722 

510.141 


$  178,000 

53,407 
2,192,975 
313 . 649 


$  9,235,875 


$  5,807,770  $ 


3,428,105 


$  2,738,031 


4.  EMPLOYEES'  PAST  BENEFITS 

At  the  time  of  the  formation  of  the  British  Columbia 
Assessment  Authority,  the  Authority  negotiated  an  agreement 
with  those  designated  employees  whose  previous  working 
agreements  contained  clauses  which  called  for  payment  of 
certain  benefits  upon  death,  retirement  or  termination  of 
employment.  The  benefits  under  the  agreement  are  recognized 
as  a  long-term  liability,  with  an  amount  equal  to  payments 
due  within  the  immediate  twelve  months  following  the 
statement  date  segregated  and  recognized  as  a  current 
liability.  Adjustments  to  the  liability  resulting  from 
changes  in  salary  rates  are  charged  to  the  current  year. 
Payments  of  benefits  are  treated  as  a  reduction  of  the 
liability. 


5.  PROVINCE  OF  BRITISH  COLUMBIA  GRANT 

The  Authority,  as  indicated  in  Section  15(4)  of  the 
Assessment  Authority  Act,  may  receive  an  annual  operating 
grant  as  appropriated  by  the  Legislature. 

For  1991,  the  Authority's  tax  levy  rates  (Note  6)  were  set 
taking  into  account  an  anticipated  annual  operating  grant  of 
$6,690,700  (1990:  $7,000,000)  of  which  $5,190,750  (1990: 
$6,250,000)  was  paid  to  the  Authority. 

Effective  1992,  no  operating  grant  will  be  paid  to  the 
Authority. 


PUBLIC  ACCOUNTS  1991/92 


C  35 


Brit:ish  Columbia  Assessment:  Autboriby 
Nobes  bo  Financial  Sbabemenbs 


6 .  TAX  LEVIES 

The  Aubhoriby,  by  by-law  and  subject  to  the  prior  approval 
of  the  Lieutenant  Governor  in  Council,  each  year  imposes  and 
levies  a  tax  upon  all  taxable  property  in  the  Province, 
except  on  the  property  of  the  British  Columbia  Hydro  and 
Power  Authority.  A  copy  of  this  by-law  is  forwarded  to  the 
Tax  Collector  of  every  municipality  in  the  Province  and  to 
the  Surveyor  of  Taxes  in  order  that  the  taxes  so  levied  will 
be  placed  on  the  tax  rolls.  The  proceeds  of  the  taxes  so 
levied  and  collected  by  the  municipalities  or  the  Minister 
of  Finance  and  Corporate  Relations  constitute  the 
Authority's  tax  levies  revenue. 

Under  Section  15(4)  of  the  Assessment  Authority  Act,  the 
Authority's  annual  tax  levies  are  to  be  "at  rates  sufficient 
to  maintain  the  operating  fund."  The  operating  fund  is 
defined  under  Section  15(3)  as  "the  total  amount  required  to 
meet  the  annual  operating  and  capital  expenses  of  the 
Authority."  Section  15(4)  further  specifies  that  in 
determining  the  rate  of  taxation  to  be  levied  "the  Authority 
shall  take  into  account  the  amount  of  the  annual  operating 
grant. " 

Based  on  the  foregoing,  there  was  levied  on  all  taxable 
property  in  the  Province,  except  on  the  property  of  the 
British  Columbia  Hydro  and  Power  Authority,  a  tax  on  each 
class  of  property  at  a  rate  as  set  out  below: 


Class  of  Property  Prescribed 
Under  Section  26  of  the 
Assessment  Act 


1  -  Residential 

2  -  Utilities 

3  -  Unmanaged  Forest  Land 

4  -  Major  Industry 

5  -  Light  Industry 

6  -  Business  and  Other 

7  -  Managed  Forest  Land 

8  -  Recreational  Property/ 

Non-profit  Organization 

9  -  Farm 


Rate  of  Tax  Applied  Against 
Each  $1,000  of  Net  Taxable 
Value  of  Property 


1991  1990 


1510 

.1815 

5285 

.6353 

6040 

.7260 

5134 

.6171 

5134 

.6171 

3700 

.4447 

4530 

.5445 

1510 

.  1815 

1510 

.1815 

36 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Assessment  Authority 
Notes  to  Financial  Statements 


7 .  FINANCING 

Under  Section  16(4)  of  the  Assessment  Authority  Act,  the 
Authority  may,  "pending  receipt  of  the  proceeds  of  the 
taxes,  borrow  an  amount  not  exceeding  the  proceeds  of  the 
taxes.... and  the  loan  shall  be  repaid  from  the  proceeds  of 
the  taxes . " 

The  maximum  borrowings  by  the  Authority  outstanding  at  any 
time  in  1991  were  $19,825,600  [1990:  $14,870,500]. 


8 -  LEASE  COMMITMENTS 

The  Authority  is  committed  to  make  the  following  payments  on 
premises  under  operating  leases  for  periods  of  more  than  one 
year: 

1992 

1993 

1994 

1995 

1996 


$  16,514,576 


$  2,365,651 

2,425,197 
2,327,195 
2,020,482 
-  2001  7,376.051 


9 .  PENSION  LIABILITY 

The  Authority  and  its  employees  make  contributions  to  the 
Public  Service  Superannuation  Fund  in  accordance  with  the 
Pension  (Public  Service)  Act.  The  Superannuation  Commission 
of  the  Province  of  British  Columbia  administers  the  Fund, 
including  the  payment  of  pension  benefits,  on  behalf  of 
employers  and  employees  to  whom  the  Act  applies. 


PUBLIC  ACCOUNTS  1991/92 


C  37 


British  Columbia  Assessment  Authority 
Notes  to  Financial  Statements 


10.  RELATED  PARTY  TRANSACTIONS 

In  the  normal  course  of  operations,  the  Authority  entered 
into  transactions  with  the  Province  and  certain  Crown 
corporations,  predominantly  at  prevailing  market  prices  and 
credit  terms. 

The  Ministry  of  Finance  and  Corporate  Relations  acts  as 
fiscal  agent  of  the  Authority.  Through  this  agreement,  the 
Authority  received  interest  revenue  of  $492,000  [1990: 
$618,000]  on  temporary  investments,  and  paid  interest 
charges  of  $437,000  [1990;  $464,000]  on  borrowings. 

Included  in  expenses  are  office  accommodation  payments  of 
$2,928,000  [1990:  $2,104,000]  to  British  Columbia  Buildings 
Corporation,  and  computing  services  payments  of  $2,229,000 
[1990:  $560,000]  to  British  Columbia  Systems  Corporation. 

Balances  at  the  end  of  the  year  with  related  parties  were: 


1991 


1990 


Temporary  investments 
Accounts  receivable 
Accounts  payable 


$  3,960,300 


13,600 

619,825 


$  4,285,000 


82,400 

169,300 


C  38 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Buildings  Corporation 


AUDITORS'  REPORT 


To  the  Lieutenant-Governor-in-Council 
Province  of  British  Columbia 

We  have  audited  the  balance  sheets  of  British  Columbia  Buildings  Corporation  as  at  March  31, 
1992  and  1991  and  the  statements  of  income,  retained  earnings  and  changes  in  financial  position 
for  the  years  then  ended.  These  financial  statements  are  the  responsibility  of  the  Corporation’s 
management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on 
our  audits. 

We  conducted  our  audits  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly.  In  all  material  respects,  the  financial 
positions  of  the  Corporation  as  at  March  31,  1992  and  1991  and  the  results  of  its  operations  and 
the  changes  In  its  financial  position  for  the  years  then  ended  in  accordance  with  generally 
accepted  accounting  principles. 


CHARTERED  ACCOUNTANTS 


Vancouver,  Canada 
May  1, 1992 


PUBLIC  ACCOUNTS  1991/92 


C  39 


MANAGEMENT’S  REPORT 

The  financial  statements  of  British  Columbia  Buildings  Corporation  have  been  prepared  by 
management  in  accordance  with  generally  accepted  accounting  principles  consistently  applied 
and  appropriate  in  the  circumstances.  The  financial  statements  have,  in  management’s  opinion, 
been  properly  prepared  within  reasonable  limits  of  materiality  and  within  the  framework  of  the 
accounting  policies  summarized  in  the  notes  to  financial  statements.  The  external  auditors 
appointed  by  the  Lieutenant-Governpr-in-Council  have  examined  the  financial  statements  which 
have  also  been  reviewed  by  the  Audit  Committee  and  approved  by  the  Board.  Financial 
Information  presented  elsewhere  in  this  Annual  Report  is  consistent  with  that  in  the  financial 
statements. 

The  Audit  Committee,  comprised  of  non-management  members  of  the  Board  of  Directors,  meets 
periodically  with  internal  auditors,  the  external  auditors,  and  management,  to  ensure  that  each 
group  Is  fulfilling  its  obligations. 

Management  depends  upon  a  system  of  internal  accounting  controls  that  provide  reasonable 
assurance,  on  a  cost  effective  basis,  that  the  financial  Information  is  reliable  and  accurate.  This 
system  is  maintained  through  the  performance  of  a  comprehensive  internal  audit  program. 


Dennis 
President  and 
Chief  Executive  Officer 


Vice-President  and 
Chief  Financial  Officer 


C  40 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 
BALANCE  SHEETS 
$  thousands 


March  31 

1992_ 1991 


ASSETS 

Real  estate  Investments 

Income-producing  properties  (note  2) 

Income-producing  properties  under  construction  (note  3) 
Land  held  for  development  (note  4) 


Corporate  properties  and  equipment  (note  5) 
Unamortized  debt  discount  and  issue  expenses 
Other  assets  (note  6) 


670,934 

597,555 

34,431 

83,864 

14.069 

10.779 

719,434 

692,198 

6,517 

6,517 

9,470 

11,674 

20.154 

25.775 

755.575 

736.164 

LIABILITIES 

Long-term  debt  (note  7) 
Notes  payable 
Short-term  debt  (note  8) 
Other  liabilities  (note  9) 


477,685  414,729 

1,876 

65,201  104,536 

78,909  89,177 


EQUITY 

Contributions  by  the  Province  of  British  Columbia  (note  10) 
Retained  earnings 

Commitments  (note  11) 


55,469  55,469 

78.311  70,377 

755.575  736.164 


On  Behalf  of  the  Board: 


Gordon  Hunter,  Director 


Malcolm  Christie,  Director 


The  accompanying  notes  are  an  integral  part  of  these  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  41 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 
STATEMENTS  OF  INCOME 
$  thousands 


Year  Ended  March  31 

1992 

1991 

REVENUE  (note  13) 

Rentals 

289,121 

265,059 

Other  Income 

43.403 

33.334 

332.524 

298.393 

EXPENSES 

Property  management 

100,910 

84,477 

Leases 

83,189 

70,621 

Amortization 

36,496 

34,283 

Energy 

13,707 

13,586 

Property  taxes  and  grants 

11,634 

11,608 

General  and  administrative 

14.494 

10.825 

260.430 

225.400 

INCOME  BEFORE  INTEREST 

72,094 

72,993 

Interest  (note  12) 

52.152 

52.372 

NET  INCOME 

19,942 

20.621 

STATEMENTS  OF  RETAINED  EARNINGS 

$  thousands 

Year  Ended  March  31 

1992 

1991 

Balance,  beginning  of  year 

70,377 

71,656 

Net  Income 

19.942 

20.621 

90,319 

92,277 

Dividend 

12.008 

21.900 

Balance,  end  of  year 

78.311 

70.377 

The  accompanying  notes  are  an  integral  part  of  these  statements. 


C  42 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 
STATEMENTS  OF  CHANGES  IN  FINANCIAL  POSITION 
$  thousands 


Year  Ended  March  31 
1992_ 1991 

OPERATING  ACTIVITIES 

Net  income  19,942  20,621 

Non-cash  items  -amortization  40,152  38,198 

-  gains  on  disposal  of  properties  (1 ,099)  (6,51 2) 

Other  assets  and  liabilities,  net  change  8.726  (13.8821 

67.721  38.425 


FINANCING  ACTIVITIES 

Long-term  debt  issued  125,000  75,000 

Long-term  debt  repayments  (41 ,483)  (1 1 ,477) 

Increase  in  sinking  funds  (20,558)  (22,073) 

Decrease  in  notes  payable  to  the  Province  (1 ,876)  (1 0,306) 

Decrease  in  short-term  debt  (39.335)  (32.781) 

21.748  (1.637) 

INVESTMENT  ACTIVITIES 

Real  estate  investments  (65,212)  (63,785) 

Sale  proceeds  from  disposal  of  properties  5,581  24,857 

Corporate  properties  and  equipment  (3.004)  (2.064) 

(62.635)  (40.992) 


DIVIDENDS 

Prior  year  dividends  paid  (21.900)  (1.517) 

INCREASE  (DECREASE)  IN  CASH 

AND  CASH  EQUIVALENTS  4.934  (5.721) 


The  accompanying  notes  are  an  integral  part  of  these  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  43 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 

NOTES  TO  FINANCIAL  STATEMENTS 
March  31 , 1992  ($  thousands) 


1.  Accounting  Principles 

The  Corporation  is  incorporated  under  the  British  Columbia  Buildings  Corporation  Act  as  a 
Crown  Corporation  of  the  Province  of  British  Columbia,  and  is  an  agent  of  the  Crown. 

(a)  Real  Estate  Investments  and  Corporate  Properties  and  Equipment 

Real  estate  investments  and  corporate  properties  and  equipment  are  recorded  at  cost 
less  accumulated  amortization.  In  addition  to  land  and  direct  costs,  amounts 
capitalized  to  real  estate  investments  during  development  and  construction  include 
property  taxes  and  the  applicable  portion  of  both  interest  on  general  borrowings  and 
general  and  administrative  expenses. 

(b)  Amortization 

Real  estate  investments  and  corporate  properties  and  equipment  are  amortized  on  an 
individual  basis  by  the  straight-line  method  over  their  estimated  useful  lives  or  lease 
terms.  Amortization  is  prorated  by  month  In  the  year  of  acquisition  or  disposal. 

The  estimated  useful  lives  or  lease  terms  of  income-producing  and  corporate 
properties  are  between  five  and  forty  years.  The  estimated  useful  lives  of  all  other 
assets  are  between  three  and  ten  years. 

(c)  Income  Taxes 

The  Corporation  Is  exempt  from  Federal  and  Provincial  income  taxes. 

(d)  Sinking  Funds 

Payments  made  to  sinking  funds  with  respect  to  retirement  provisions  of  sinking  fund 
bonds  and  debentures,  together  with  accumulated  sinking  fund  earnings,  are  netted 
against  the  related  debt.  The  related  sinking  funds  will  be  applied  against  the  bonds 
or  debentures  when  they  are  redeemed  and  cancelled.  Sinking  fund  earnings  are 
recognized  as  interest  is  earned  and  gains  are  realized. 

(e)  Amortization  of  Debt  Discount  and  Issue  Expenses 

Debt  discount  is  amortized  by  the  effective  rate  of  interest  method  and  issue 
expenses  are  amortized  on  a  straight-line  basis,  both  over  the  terms  of  the  applicable 
debt. 

(f)  Rentals  Received  in  Advance 

Rentals  received  In  advance  are  amortized  using  the  effective  rate  of  interest  method 
over  the  period  to  which  it  relates. 


C  44 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 

NOTES  TO  FINANCIAL  STATEMENTS 
March  31, 1992  ($  thousands) 


Income-Producinq  Properties 

1992 

1991 

Net  book  value: 

Cost 

958,564 

855,133 

Accumulated  amortization 

f287.630) 

f257.578) 

670.934 

597.555 

Activity: 

Net  book  value,  beginning  of  the  year 

597,555 

535,972 

Properties  transferred  from  income-producing 

properties  under  construction 

107,306 

109,112 

Acquisitions  (Disposals),  Net 

(435) 

(16,274) 

Amortization  expense 

f33.492l 

f31.255l 

Net  book  value,  end  of  year 

670.934 

597.555 

Income-Producinq  Properties  Under  Construction 

Balance,  beginning  of  year 

83,864 

133,851 

Direct  development  and  construction  costs 

52,036 

46,888 

Capitalization  of: 

Interest 

1,742 

7,584 

General  and  administrative  expenses 

4,095 

4,653 

Cost  of  properties  completed  and  transferred 

to  Income-producing  properties 

(107.306) 

(109.112) 

Balance,  end  of  year 

34.431 

83.864 

Land  Held  For  Development 

Balance,  beginning  of  year 

10,779 

8,246 

Capitalization  of  interest  and  property  tax 

535 

768 

Acquisitions,  Net 

2.755 

1.765 

Balance,  end  of  year 

14.069 

10.779 

PUBLIC  ACCOUNTS  1991/92 


C  45 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 

NOTES  TO  FINANCIAL  STATEMENTS 
March  31, 1992  ($  thousands) 


Coroorate  Prooerties  and  Eauioment 

1992 

1991 

Cost: 

Office  and  data  processing  equipment 

14,945 

13,744 

Corporate  properties  and  leasehold  improvements 

4,413 

3,428 

Maintenance  equipment 

2,950 

2,743 

Vehicles 

4.489 

4.020 

26,797 

23,935 

Accumulated  amortization 

f20.280) 

(17.418) 

6.517 

6.517 

Other  Assets 

Accounts  receivable 

-  Province  of  British  Columbia 

18,545 

20,908 

-  Other 

1,325 

4,529 

Prepaid  expenses 

284 

338 

20,154 

25.775 

C  46 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 


NOTES  TO  FINANCIAL  STATEMENTS 
March  31, 1992  ($  thousands) 


7.  Long-Term  Debt 


1992 


1991 


Principal  outstanding: 


38  series  at  an  average  effective  interest 
rate  of  10.75%  maturing  at  various  times  to 
2012  (1991  -  35  series  at  an  average  effective 
interest  rate  of  1 1 .35%) 


614,540 


531,026 


Sinking  funds  on  deposit  with  the  Minister  of  Finance 
and  Corporate  Relations  for  British  Columbia,  relating 
to  long-term  debt  of  $582,532  (1991  -  $382,532) 


(136.8551  (116.2971 

477.685  414.729 


At  March  31, 1992,  the  coupon  rates  on  the  long-term  debt  ranged  from  5.25%  to  15.69% 
(1991  -5.25%  to  15.69%). 

Of  the  long-term  debt  outstanding,  $447,361  (1991  -  $352,361)  is  payable  to  the  Ministry 
of  Finance  and  Corporate  Relations  for  British  Columbia.  The  Province  of  British 
Columbia  has  unconditionally  guaranteed  the  principal  and  interest  of  all  other  long-term 
debt  issued  by  the  Corporation. 

At  the  option  of  the  Minister  of  Finance  for  Canada,  Sinking  Fund  Debentures  with  an 
aggregate  principal  of  $165,041  maturing  between  1997  and  2003  may  be  called  prior  to 
maturity  under  certain  conditions  on  six  months  written  notice. 


Principal  payments,  net  of  projected  sinking  fund  balances  at  maturity,  and  sinking  fund 
payments  for  each  of  the  next  five  years: 


1992/93 

1993/94 

1994/95 

1995/96 

1996/97 


69,496 

18,524 

63,726 

15,362 

7,703 


PUBLIC  ACCOUNTS  1991/92 


C  47 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 

NOTES  TO  FINANCIAL  STATEMENTS 
March  31, 1992  ($  thousands) 


8.  Short-Term  Debt 

The  interest  rates  on  short-term  debt  range  from  6.84%  to  8.96%  (1991  -  9.62%  - 13.53%), 
and  result  in  an  average  effective  interest  rate  of  7.81%  (1991  -  10.90%)  for  the  notes 
outstanding.  These  notes  mature  at  varying  dates  to  December  2,  1 992  and  are  payable 
to  the  Minister  of  Finance  and  Corporate  Relations  for  British  Columbia. 


Other  Liabilities 

1992 

1991 

Due  to  bank,  unsecured 

1,285 

6,219 

Accounts  payable  and  accrued  liabilities 

34,827 

25,205 

Holdbacks 

Accrued  interest  payable: 

3,418 

7,145 

-  Province  of  British  Columbia 

11,683 

12,015 

-  Other 

5,970 

6,051 

Rentals  received  in  advance  from 

the  Province  of  British  Columbia 

9,718 

10,642 

Dividend  payable 

12.008 

21.900 

78.909 

89.177 

Contributions  bv  the  Province  of  British  Columbia 

Balance,  beginning  of  the  year 

55,469 

55,528 

Land  returned  to  the  Province 

- 

59 

Balance,  end  of  year 

55.469 

55.469 

C  48 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  BUILDINGS  CORPORATION 

NOTES  TO  FINANCIAL  STATEMENTS 
March  31, 1992  ($  thousands) 


11.  Commitments 

The  Corporation  estimates  that  the  cost  to  complete  projects  under  construction  will  be 
$77,000  of  which  $36,000  has  been  committed. 

The  Corporation  has  entered  into  leases  with  third  parties  to  provide  space  for  its  clients 
and  its  head  office  for  varying  periods  up  to  the  year  2037,  at  a  total  aggregate  net  rental  of 
approximately  $299,000.  Most  leases  are  for  between  five  and  ten  years  and  include 
renewal  options. 

Minimum  annual  lease  payments  which  will  be  charges  to  operations  in  subsequent  years, 
for  leases  committed  at  March  31 , 1992: 

1992/93  71,000 

1993/94  60,000 

1994/95  50,000 

1995/96  38,000 

1996/97  26,000 

Post  1996/97  54,000 


Interest 

1992 

1991 

Interest  on  long-term  debt 

58,350 

51,527 

Other  Interest 

8,023 

16,548 

Amortization  of  debt  discount  and  issue  expenses 

3.657 

3.915 

Deduct: 

70.030 

71.990 

Sinking  fund  earnings 

15,743 

11,575 

Interest  capitalized 

2.135 

8.043 

17.878 

-J.9.61.8 

52.152 

52.372 

13.  Related  Party  Transactions 

The  Corporation  received  85%  of  its  total  revenues  from  Provincial  Government  ministries. 
These  revenues  consist  primarily  of  rents  that  are  determined  with  reference  to  market; 
however,  in  such  cases  where  comparable  market  rates  do  not  exist,  rents  are  calculated 
based  on  the  amortization  of  the  properties’  capital  costs. 


PUBLIC  ACCOUNTS  1991/92 


C  49 


British  Columbia  Educational  Institutions 
Capital  Financing  Authority 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


AUDITOR'S  REPORT 


(604) 387-6803 
Fax (604) 387-1230 


To  the  Members  of  the  British  Columbia  Educational 
Institutions  Capital  Financing  Authority,  and 

To  the  Minister  of  Finance  and  Corporate  Relations, 

Province  of  British  Columbia: 

I  have  audited  the  balance  sheet  of  the  British  Columbia  Educational 
Institutions  Capital  Financing  Authority  as  at  March  31,  1992  and  the  statement  of 
financing  and  lending  activities  and  statement  of  changes  in  sinking  funds  for  the 
year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Authority's 
management.  My  responsibility  is  to  express  an  opinion  on  these  financial 
statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Authority  as  at  March  31,  1992  and  the  results  of  its 
operations  and  changes  in  sinking  funds  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
May  29,  1992 


C  50 


PROVINCE  OF  BRITISH  COLUMBIA 


STATEMENT  OF  RESPONSIBILITY 


To  the  Members  of  the 

British  Columbia  Educational  Institutions 
Capital  Financing  Authority 

Responsibility  for  the  integrity  and  objectivity  of  the 
accompanying  financial  statements  rests  with  the  Authority. 
The  financial  statements  are  prepared  by  the  Provincial 
Treasury,  Ministry  of  Finance  and  Corporate  Relations  in 
accordance  with  generally  accepted  accounting  principles  in 
a  manner  consistent  with  the  previous  year.  Policies  and 
procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are 
safeguarded  and  financial  records  properly  maintained  to 
provide  reliable  financial  statements. 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial 
statements . 


Director 

Banking/Cash  Management 
Provincial  Treasury 


Victoria,  British  Columbia 
June  23,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  51 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 

BALANCE  SHEET 
AS  AT  MARCH  31,  1992 
ASSETS 

In  Thousands 


1992 

1991 

lioans  receivable  (note  3) 

$790,677 

$640,491 

!  Less:  Sinking  funds  (note 

5) 

183 . 497 

159,254 

I: 

607 , 180 

481,237 

ijccrued  interest  receivable 

27 . 536 

23 , 279 

j 

$634 ,716 

$504 , 516 

LIABILITIES 

erm  debt  (note  4) 

$790,677 

$640,491 

1  Less:  Sinking  funds  (note 

5) 

183 , 497 

159 ,254 

607, 180 

481,237 

pcrued  interest  payable 

27 . 536 

23 . 279 

$634 ,716 

$504 , 516 

he  six  accompanying  notes  are  an 
^^ntegral  part  of  these  financial  statements. 

pproved  by  the  Authority: 

] 

lien  Clark,  Chairman 


Michael  Costello,  Secretary 


C  52 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 
STATEMENT  OF  FINl^CING  AND  LENDING  ACTIVITIES 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


In  Thousands 
1992  1991 

Funds  generated  from 

Interest  on  loans  receivable  $  85,503  $  73,294 

Assets  transferred  from 

sinking  funds  (note  5)  13,827  1,623 

Debentures  issued  164 , 013  93,354 

$263 , 343  $168 , 271 

Funds  applied  to 

Interest  on  term  debt  $85,503  $73,294 

Repayment  of  term  debt  (note  5)  13,827  7,022 

164 , 013  87 ,955 

$263 , 343  $168 , 271 


Loans  issued 


PUBLIC  ACCOUNTS  1991/92 


C  53 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 
|j  STATEMENT  OF  CHANGES  IN  SINKING  FUNDS 

I  FOR  THE  YEAR  ENDED  MARCH  31,  1992 


'I' 


[ncrease 

j|  Instalments 

Investment  income 


In  Thousands 


1992 

$  20,377 
21 . 268 

41 , 645 


1991 

$  17,108 
15 . 677 

32 . 785 


becrease 


Funds  management  fees  (note  5) 

99 

85 

!i  Excess  assets  due  to  province  (note  6) 

3 ,303 

- 

1  Excess  assets  transferred  to  the  province 

173 

- 

1  Term  debt  retired 

13 .827 

1 . 623 

17.402 

1.708 

Increase  in  Sinking  Funds 

1 

24 , 243 

31,077 

i^inking  Funds,  Beginning  of  Year 

159 . 254 

128 . 177 

Sinking  Funds,  End  of  Year 

$183 .497 

$159 .254 

C  54 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 

NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  The  Authority 

The  Authority  was  established  by  the  Educational  Institution  Capita 
Finance  Act.  R.S.B.C,  1979,  Chapter  102.  as  amended.  Section  3  of  the  Ac 
states  "The  purpose  of  the  authority  is  to  lend  money  to  designate 
educational  institutions  to  finance  their  capital  expenditures". 

The  loans  made  by  the  Authority  to  the  educational  institutions  ar 
financed  by,  and  have  interest  rates  and  maturity  dates  identical  to,  th 
borrowing  of  the  Authority  itself. 


2.  Significant  accounting  policies 

These  financial  statements  are  prepared  on  the  basis  of  generally  accepte 
accounting  principles. 

Sinking  fund  investments 

i)  Units  in  Province  of  British  Columbia  Pooled  Investment  Portfolic 
are  carried  at  the  lower  of  cost,  adjusted  by  income  attributed  1 
the  units,  or  market  value. 

ii)  Long-term  investments  are  valued  at  cost  of  acquisition  adjustc 
by  amortization  of  discounts  and  premiums  on  a  true  constant  yie! 
basis  over  the  remaining  terms  of  the  investments. 


3.  Loans  receivable 

Certain  loans  receivable  $564,846,383  (1991:  $566,846,383)  have  ear 
redemption  provisions  similar  to  those  of  the  related  debentures  issued 
the  Authority. 


PUBLIC  ACCOUNTS  1991/92 


C  55 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 

NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Term  debt 


In  Thousands 


Held  by: 


1992 


1991 


Canada  Pension  Plan  Investment  Fund 
9.13%  to  17.51%  debentures, 
due  1998  through  2009 

Province  of  British  Columbia 
Pension  Funds 

11.75%  debentures,  due  1993 

Province  of  British  Columbia 
9.10%  to  11.33%  debentures, 
due  1993  through  2012 


$456,419 

3 , 747 

330.511 

$790 , 677 


$456,419 

3 , 747 

180.325 

$640 . 491 


Debentures  issued  to  the  Canada  Pension  Plan  Investment  Fund  are 
redeemable  in  whole  or  in  part  before  maturity,  on  six  months'  notice,  at 
the  option  of  the  Minister  of  Finance  of  Canada,  subject  to  certain 
restrictions. 


Debentures  maturing  in  the  next  five  fiscal  years  are  as  follows: 

In  Thousands 

1993 

1994 

1995 

1996 

1997 

Sinking  fund  instalments  due  in  the  next  five  fiscal  years  are  as  follows: 


In  Thousands 

1993 

$22,380 

1994 

22 , 380 

1995 

21,843 

1996 

18,450 

1997 

18,450 

$  - 
6,227 
23,133 


The  Province  of  British  Columbia  has  unconditionally  guaranteed  the 
payment  of  principal  and  interest  on  $460,166,000  (1991:  $460,166,000)  of 
the  debt  of  the  Authority. 


C  56 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  EDUCATIONAL  INSTITUTIONS  CAPITAL  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


5.  Sinking  funds 

In 

Thousands 

1992 

1991 

Units  in  Province  of  British  Columbia 

Pooled  Investment  Portfolio  (at  market) 

$  28,629 

$  27,155 

Long-term  investments 

(market  value  $159,420,093; 

1991:  $133,333,172) 

155,595 

128,589 

Accrued  interest 

2 , 602 

3 . 533 

186 . 826 

159 . 277 

Less:  Excess  assets  of  matured 

sinking  funds  payable  to  the 

province 

3 ,303 

— 

Accounts  payable 

26 

23 

$183 , 497 

$159 . 254 

Sinking  fund  instalments  received  from  the  educational  institutions  ir 
respect  of  their  debt  to  the  Authority,  together  with  the  investment 
income  earned  thereon,  are  placed  in  sinking  funds  maintained  by  the 
trustee,  the  Minister  of  Finance  and  Corporate  Relations.  These  funds 
provide  for  the  retirement  of  educational  institutions'  debt  and  in  turn, 
for  the  retirement  of  the  debt  of  the  Authority  at  maturity. 

Long-term  investments  consist  primarily  of  bonds  of  the  Government  ol 
Canada,  various  provinces  and  Crown  corporations. 

Funds  management  fees  have  been  charged  to  the  sinking  funds  of  th( 
Authority  by  the  Minister  of  Finance  and  Corporate  Relations  in  accordance 
with  Section  39(4)  of  the  Financial  Administration  Act.  These  fees  are 
based  on  the  market  value  of  sinking  fund  assets  and  are  charged  on  i 
quarterly  basis  during  the  year. 


6.  Assets  transferred  from  sinking  funds 

During  the  year  ended  March  31,  1992,  sinking  fund  assets,  with  a  cost  o  j 
$13,827,000  (1991:  $1,623,095)  were  transferred  to  the  Authority  for  th 
repayment  of  the  Authority's  term  debt  with  a  par  value  of  $13,827,00 
(1991:  $7,021,662)  . 

When  the  assets  of  the  sinking  fund  exceed  what  is  required  to  meet  th 
obligation  of  the  debt,  the  Authority  pays  the  excess  to  the  province 
For  the  year  ended  March  31,  1992,  excess  assets  payable  were  $3,303,17 
(1991:  $nil)  . 


PUBLIC  ACCOUNTS  1991/92 


C  57 


British  Columbia  Enterprise  Corporation 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


AUDITOR'S  REPORT 


(604) 387-6803 
Fax  (604)  387-1230 


To  the  Shareholder  of  British  Columbia  Enterprise  Corporation: 


I  have  audited  the  balance  sheet  of  British  Columbia  Enterprise  Corporation  as  at 
March  31,  1992.  This  financial  statement  is  the  responsibility  of  the  Corporation's 
management.  My  responsibility  is  to  express  an  opinion  on  this  financial  statement 
based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  I  plan  and  perform  an  audit  to  obtain  reasonable  assurance 
whether  the  financial  statement  is  free  of  material  misstatement.  An  audit  includes 
examining,  on  a  test  basis,  evidence  supporting  the  amounts  and  disclosures  in  the 
financial  statement.  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,  this  financial  statement  presents  fairly,  in  all  material  respects,  the 
financial  position  of  the  Corporation  as  at  March  31,  1992  in  accordance  with  generally 
accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria^  British  Columbia 
April  9,  1992 


C  58 


PROVINCE  OF  BRITISH  COLUMBIA 


Cash 


BRITISH  COLUMBIA  ENTERPRISE  CORPORATION 
BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


ASSETS 


1992 


$  2 


^ _ 2 


SHAREHOLDER'S  EQUITY 


1991 

$ 

^ 


Share  capital 
Authorized  - 

10,000  common  shares  without  par  value 
Issued  and  fully  paid  - 

2  common  shares  $  2  $ 

Retained  earnings  30,026,421  30,026,42 


30,026,423  30,026,42 


Net  assets  transferred  to  shareholder 


(30,026,421)  (30,026,42 

2  $ _ 


PUBLIC  ACCOUNTS  1991/92 


C  59 


BRITISH  COLUMBIA  ENTERPRISE  CORPORATION 
NOTE  TO  BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


THE  CORPORATION 

British  Columbia  Enterprise  Corporation  (the  Corporation)  is 
incorporated  under  the  Company  Act  of  British  Columbia,  and  is  a 
provincial  Crown  corporation  having  special  powers  under  the  British 
Columbia  Enterprise  Corporation  Act. 

The  Corporation  was  inactive  during  the  year  and  it  is  intended  that 
the  Corporation  be  wound  up. 


C  60 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Ferry  Corporation 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Auditors'  Report 


To  the  Lieutenant-Governor  in  Council 
Province  of  British  Columbia 

We  have  audited  the  balance  sheet  of  British  Columbia  Feriy  Corporation  as  at  March  31,  1992 
and  the  statements  of  operations  and  deficit  and  changes  in  financial  position  for  the  year  then 
ended.  These  financial  statements  are  the  responsibility  of  the  Corporation’s  management.  Our 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial 
position  of  the  Corporation  as  at  March  31 ,  1992  and  the  results  of  its  operations  and  the  changes 
in  its  financial  position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting 
principles. 


Victoria,  Canada 
May  15,  1992 


Chartered  Accountants 


PUBLIC  ACCOUNTS  1991/92 


C  91 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Balance  Sheet 

AT  MARCH  31,  1992 


ASSETS 

ASSETS  IN  SERVICE  (Note  3) 

ASSETS  UNDER  CONSTRUCTION  (Note  4) 
CURRENT  ASSETS  (Note  5) 

RESERVED  FUNDS  (Note  6) 

DEBENTURE  (Note  7) 


LIABILITIES 

LONG  TERM  DEBT  (Note  8) 

OBLIGATIONS  UNDER  CAPITAL  LEASES  (Note  9) 
CAPITAL  SUBSIDY  (Note  10) 

CURRENT  LIABILITIES  (Note  11) 

ACCRUED  SICK  LEAVE  LIABILITY  (Note  12) 


SHAREHOLDER’S  EQUITY 
SHARE  CAPITAL  (Note  13) 
CONTRIBUTED  SURPLUS 
DEFICIT 


(expressed 

1992 

$346,281 

171.327 

30,912 

8,433 

36,856 

$593,809 


$157,593 

75.341 

128,546 

69,662 

5,339 

436.481 


6,851 

250,401 

(99,924) 

157,328 

$593,809 


thousands) 

1991 

$225,674 

92,997 

61,340 

8,697 

37,943 

$426,651 


$  10,753 
78,323 
109,152 
60,219 
5,642 
264,089 


6,851 

250,401 

(94,690) 

162,562 

$426,651 


ON  BEHALF  OF  THE  BOARD: 


DIRECTOR  1 

DIRECTOR 


C  62 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Statement  of  Operations  and  Deficit 

YEAR  ENDED  MARCH  31,  1992 


(expressed  in  thousands) 


1992 

1991 

OPERATING  REVTiNUES 

Tolls 

$  204,509 

S  186,555 

Catering  and  other  income 

46,592 

44,084 

Operating  subsidy  (Note  2) 

28,147 

15,104 

279,048 

245,525 

OPERATING  EXPENSES 

Salaries,  wages  and  benefits 

164,506 

1 46,659 

Fuel 

28,161 

51,270 

Contracted  setx’ices 

27,870 

26,589 

Cost  of  food  and  goods  sold 

17,871 

16,776 

Materials  and  supplies 

15,981 

15,159 

Depreciation  and  amortization 

12,852 

10,698 

Administration 

7,092 

6.211 

Professional  serxices 

7,056 

5,598 

281,169 

256,740 

EXCESS  OF  OPERATING  EXPENSES  OVER  OPERATING 

revenues  (2,121)  (15,217) 

Interest  income  5,745  18,512 

Interest  on  long  term  obligations  (8,856)  (9,128) 

Net  financing  income  (expense)  (5,115)  9, 1 84 

EXCESS  OF  EXPENSES  OVER  REVENUES  FOR  THE  YEAR  (5,254)  (4,055) 

DEFICIT  AT  BEGINNING  OF  YEAR  (94,690)  (90,657) 


$  (99,924) 


DEFICIT  AT  END  OF  YEAR 


PUBLIC  ACCOUNTS  1991/92 


C  63 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Statement  of  Changes  in  Financial  Position 

YEAR  ENDED  MARCH  31,  1992 


(expressed  in  thousands) 

1992  1991 


OPERATING  ACTIVITIES 


Excess  of  expenses  over  revenues  for  the  year 

$  (5,234) 

$  (4,033) 

Depreciation,  amortization  and 

other  non-cash  charges 

13,250 

11,325 

Net  cash  generated  from  operating  working  capital 

11,818 

13,897 

19,834 

21,189 

INVESTING  ACTIVITIES 

Fixed  asset  additions 

(217,767) 

(101,286) 

Fixed  asset  additions  financed  from  current  liabilities 

(1.589) 

16,726 

Proceeds  from  disposals  of  assets 

495 

- 

(218,861) 

(84,560) 

FINANCING  ACTIVITIES 

Proceeds  from  long  term  debt  issues 

150,129 

- 

Capital  subsidy  (Note  2) 

22,853 

55,346 

Transfers  from  reserved  funds 

6,003 

94,273 

Transfers  to  reserved  funds 

(1.705) 

(42,600) 

Payments  received  on  debenture 

1,062 

980 

Long  term  debt  repayment 

(5,700) 

(5,700) 

Capital  lease  repayments 

(1.917) 

(966) 

170,725 

81,333 

INCREASE  (DECREASE)  IN  CASH 

(28,302) 

17,962 

CASH  AT  BEGINNING  OF  YEAR 

44,033 

26,071 

CASH  AT  END  OF  ^TAR 

$  15,731 

$  44,035 

In  this  statement  cash  includes  only  cash  and  short-term  investments  available  for  day-to-day 
operations  and  does  not  include  Reserved  Funds. 


C  64 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Notes  to  Financial  Statements 


YEAR  ENDED  MARCH  31,  1992 

(TABULAR  AMOUNTS  IN  THOUSANDS) 

1 .  SIGNIFICANT  ACCOUNTING  POLICIES 

The  Corporation  was  incorporated  under  the  Ferry'  Corporation  Act  on  June  50.  1976  and  commenced  operations  on 
January'  1 ,  1977.  The  shares  of  the  Corporation  are  held  by  the  Minister  of  Finance  as  representative  of  Her  Majesty 
the  Queen  in  right  of  the  Province  of  British  Columbia. 

As  required  in  Section  8(7^  of  the  Ferry'  Corporation  Act.  the  financial  statements  of  the  Corporation  are  prepared  in 
accordance  with  generally  accepted  accounting  principles.  Significant  accounting  policies  adopted  in  the  preparation 
of  these  linanciarstatements  are  as  follows: 

Inventories  - 

Im  entones  which  consist  of  materials  and  supplies,  catering  stores,  and  fuel  are  valued  at  the  lower  of  weighted 
a\  erage  cost  and  current  replacement  cost. 

Fixed  assets  - 

Certain  ships,  berths,  buildings  and  equipment  were  transferred  from  the  Province  in  prior  years.  These  assets  were 
recorded  at  estimated  depreciated  replacement  value  at  the  dates  of  acquisition.  Included  in  these  values  are  three 
ships  under  charter  by  the  Province  until  1 994  which  were  subchartered  to  the  Corporation  for  the  same  period  at  an 
annual  cost  of  SI  each.  The  Corporation  may  request  the  Province,  at  its  expense,  to  exercise  its  option  to  purchase 
the  ships  in  1994  and  transfer  title  to  the  Corporation  under  the  terms  of  the  subcharter  agreement. 

The  costs  of  all  other  major  replacements,  additions,  extensions  and  improvements,  including  direct  overhead  and 
interest  costs  are  capitalized  in  the  .Assets  under  Construction  accounts  and  transferred  to  'the  ,\ssets  in  Service 
account  when  placed  into  service.  The  costs  of  maintenance,  repairs,  refit  and  minor  renewals  or  replacements  are 
expensed  as  incurred. 

Depreciation  - 

Fixed  assets,  including  assets  recorded  under  capital  leases,  are  depreciated  using  the  straight  line  method  based 
upon  the  useful  lives  of  the  assets  as  determined  by  the  Corporation.  Useful  lives" are  as  follows:  ships  -  40  years, 
benhs  -  10-30  years,  buildings  -  20  years,  equipment  -  5-12  years. 

.Amortization  of  long  term  debt  discount  and  issue  costs  - 

Long  term  debt  discount  is  amortized  using  the  compound  interest  method  over  the  term  of  the  debt.  Issue  costs  for 
long  term  debt  and  capital  leases  are  amortized  on  a  straight-line  basis  over  the  term  of  the  debt  or  lease. 

Provincial  Government  Subsidy  - 

The  annual  subsidy  received  from  the  Prov  ince  of  British  Columbia  is  applied  firstly  to  cover  any  annual  operating 
loss  excluding  depreciation  plus  net  financing  expense  and  long  term  debt  and  capital  lease  repayments,  and  applied 
secondly  to  a  capital  subsidy  account.  This  accounting  treatment  refiects  the  government's  stated  intention  that 
capital  maintenance  and  expansion  be  financed  from  the  annual  subsidy.  The  capital  subsidy  is  amortized  on  the 
same  basis  as  the  related  fixed  assets  are  depreciated  and  is  netted  against  depreciation  on  the  Statement  of 
Operations. 

Contributed  surplus  - 

Contributed  surplus  represents  the  recorded  value  of  certain  assets  received  from  the  Province  of  British  Columbia  in 
prior  years. 

Comparative  figures  - 

Certain  comparative  figures  have  been  reclassified  to  conform  with  the  presentation  adopted  for  the  current  year. 
2..ANNUAL  SUBSIDY 

The  Corporation  received  a  cash  subsidy  of  $51  Million  (1991  -  S48.5  .Million)  from  the  Province  of  British 
Columbia. 

Ot  this  amount.  528.1  million  (1991  -  SI 3.1  million)  has  been  recorded  as  operating  subsidy  and  the  balance  of 
S22.9  million  (1991  -  S35.4  million)  has  been  allocated  to  capital  ^Note  10). 

3.  .ASSETS  IN  SERVICE 


1992 

1991 

.Accumulated 

Net  Book 

Net  Book 

Cost  Depreciation 

\’alue 

Value 

Ships  owned 

S  36/  .o29 

S  180.053 

S  187.476 

S  93.640 

Ships  under  capital  lease 

131.054 

ol  .533 

09.52  1 

09.097 

Berths,  buildings  and  equipment 

208.612 

1 33.2  73 

75.339 

5o.338 

Land 

13. ‘-MS 

13.'-M5 

o.5'39 

S  721.140 

S  374.85‘;> 

S  346.281 

S  225.674 

PUBLIC  ACCOUNTS  1991/92 


C  65 


BRITISH  COLUMBIA 
FERRY  CORPORATION 

Notes  to  Financial  Statements 

4.  ASSETS  UNDER  CONSTRUCTION 

In  1989.  tile  Corporation  began  a  major  capital  expansion  program.  .\  summary  of  transactions  during  the  vear 
follows; 


Balance 

beginning  Costs  incurred  .\ssets  Balance 

of  year  in  the  year  placed  in  ser\-ice  end  of  year 
Major  \  cssels  -  '  ' 

Two  maior  vessels,  of  approximately 
4  70  car  capacitv’.  are  under  constaiction. 

Planned  deli\  eiy  date  for  the  first 
vessel  is  Spring  1993.  with  the  second 

vessel  to  follow  a  year  later.  S23.618  S99.785  -  S123.403 

The  Oueen  of  New  Westminster  was 
lilted  and  re-engined  during  the  \-ear. 
increasing  its  capacity  from  192  cars 

to  286e\irs.  20.395  31.485  S5 1.880 


.Minor  vessels  - 

Construction  of  the  Oueen  of  Capilano 
was  completed  in  the  year.  Its  sister 
ship,  the  Oueen  of  Cumberland  was 

completed  in  April  1992.  27.784  27.303  26.852  28.235 

Renovations  to  the  Oueen  of  Chilliwack, 

were  completed  in  the  year.  1 1 . 1 06  1 0.288  2 1 .394 


Terminal  redevelopment  - 

Tsawwassen  -  The  terminal  area  was 
expanded  by  8  hecuires.  a  new  toll 
booth  plaza  was  constructed  and 
improvements  were  made  to  berths 
and  transfer  decks.  Work  continues 
on  improving  passenger  services  and 

ticketing  facilities.  7.228  21,4  78  23.641  5,065 

Swartz  Bay  -  .A  new  parking  area  on 
the  west  side  of  the  terminal  was 
completed  and  improvements  were 
made  to  berths  and  transfer  decks. 

Work  continues  on  a  new  passenger 
terminal  building  and  improvements 

to  marine  structures.  698  15.856  1 .930  14.624 

90.829  206.195  S125.697  5171,327 


Costs 

Written-Off 

Horseshoe  Bay  -  Work  on  this  terminal 
was  suspended  in  1991  while  the 
Corporation  re-evaluated  the  location's 
requirements.  Consequently,  design  and 
engineering  costs  incurred  to  date  "were 
expensed  as  professional  scrx  ices  in 

the  year.  2.168  296  S2.464 

$92.997  S206.491 

Interest  costs  of  S4.9  million  0^91  -  nih  were  capitalized  as  cost  of  constaiction  in  the  year. 
Commitments  at  .March  31.1 992  totalled  S 1 9 1 .8  million. 


5.CURRENT  .ASSETS 

1992  1991 

Cash  and  shoa-term  investments  S15.731  S44.033 

.Accounts  receivable  5.477  5.485 

Inventories  9,704  1 1 .822 

S30.912  S6 1.340 


C  66 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA 
FERRY  CORPORATION 

Notes  to  Financial  Statements 


1. RESERVED  FUNDS 

Funds  designated  for  specific  purposes  are  segregated  by  the  Corporation. 

1992 

1991 

Funds  designated  to  meet  accrued  sick  leave  liabilities  ^Note  12) 

$5,559 

$5,642 

Long  term  disability  fund 

5.094 

5.055 

S  8.455 

$  8.697 

. DEBENTURE 

The  debenture  from  the  Province  of  British  Columbia  bears  interest  at  8. 18%  per  annum  and  matures  in 
December  2006. 

LONG  TERM  DEBT 

Sinking  fund  bonds,  weighted  average  interest 
rate  of  9.89%  maturing  at  various  dates  from 

1998  to  2012,  amortized  over  50  years, 
repayable  by  annual  sinking  fund  payments  of 

1992 

1991 

Sl.O  million 

Sinking  fund  promissory  note,  elective 
interest  rate  of  12.44%.  due 

September  9.  2005.  repayable  by  annual 

SI  10.000 

sinking  fund  payments  of  $.5  million 

14.758 

$14,758 

Promissory  notes  repaid  in  the  year 

Short-term  loans,  weighted  average  interest 
rate  of  7. 15%.  to  be  refinanced  subsequent 

5.700 

to  year  end  by  issue  of  sinking  fund  bonds 

40.150 

164.888 

20.458 

Less;  sinking  funds 

4.092 

9.051 

current  sinking  hind  payments 

1.295 

522 

deferred  charges 

1,910 

552 

Long  term  debt  is  due  to  the  Province  of  British  Columbia. 

S157.595 

$  10.755 

Sinking  fund  payments  of  S 1 .5  million  are  due  in  1 995.  Payments  of  S 1 
subsequent  years. 

.6  million  are  due  in  each  of  the  four 

C  OBLIGATIONS  UNDER  CAPITAL  LEASES 

The  Corporation  has  obligations  under  capital  leases  for  the  M.V.  "Queen  of  Oak  Bay".  .W.V.  “Queen  of  Surrey". 
.Vl.V.  "Quinsam"  and  other  equipment. 

Total  future  minimum  lease  payments,  net  of  sinking  fund  requirements,  for  fiscal  \  ears  ending  in: 

1995 

S  9.218 

1 994 

9.218 

1995 

9.218 

1 996 

10.049 

1997 

10.567 

1998  and  subsequent 

107.728 

155.798 

Less:  interest  at  implicit  rates  between  8. 14%  and  10.o4% 

71.552 

Present  value  of  net  minimum  capital 

lease  pa\’mcnts 

84.466 

Less;  sinking  fund 

0.767 

current  portion 

2.095 

deferred  charges 

265 

S  75.3-n 


PUBLIC  ACCOUNTS  1991/92 


C  67 


BRITISH  COLUMBIA 
FERRY  CORPORATION 


Notes  to  Financial  Statements 


10.  CAPITAL  SUBSIDY 


1992 

1991 

Capital  subsidv  at  beginning  of  year 

$109,152 

$  76.096 

Provincial  Government  subsidy,  capital 

portion  (Note  2) 

22.855 

55.546 

152.005 

1  1  1,442 

Annual  amortization 

5.459 

2.290 

Capital  subsidy  at  end  of  year 

$128,546 

$109,152 

.  CURRENT  LIABILITIES 

1992 

1991 

Accounts  payable  and  accrued  liabilities 

$56,912 

$50,652 

Deferred  revenue 

9,562 

7.548 

Current  portion  of  long-term  obligations 

5.588 

2.259 

$69,662 

$60,219 

12.  ACCRUED  SICK  LEAVE  LIABILITY 

In  1978  the  Corporation  introduced  short-term  illness  and  injury  and  long-term  disability  plans  and  as  of  that  date  all 
employees  ceased  accruing  sick  leave  credits.  In  the  event  of  illness  the  accumulated  sick  time  may  be  withdrawn. 
On  retirement,  any  balance  remaining  is  payable  at  50%  of  accredited  time. 

An  actuarial  valuation  by  Leong  &  Associates  in  1991  established  the  value  at  March  51.  1991  and  the  projected 
value  for  1992  and  the  subsequent  two  years.  This  projected  value  has  been  reflected  in  the  financial  statements. 

Funds  have  been  designated  to  meet  the  accrued  sick  leave  liability  (see  Note  6). 


15.  SHARE  CAPITAL 

1992  1991 

.•\uthorized:  1 ,000.000  shares  without 
par  value  with  a  maximum  consideration  of  $100  million 
Issued:  68.512  shares  $6,851  $6,851 

14.  RELATED  PARTY  TRANSACTIONS 

In  addition  to  the  annual  subsidy  described  in  Note  2.  the  Provincial  Government  pays  $4.8  million  for  annual  leases 
of  three  ships  which  are  sub-leased  from  the  Province  at  an  annual  cost  of  $1  each.  These  payments  are  attributed 
to  the  Corporation  in  the  annual  estimates  of  the  Province  but  are  not  recorded  by  the  Corporation. 

The  Corporation  utilizes  Crown  land  for  terminals  and  highway  access  without  the  payment  of  rent.  In  1991  the 
Corporation  initiated  a  program  of  payments  to  municipalities  in  lieu  of  property  taxes  for  major  terminals  located 
within  municipal  boundaries. 

The  Corporation  engages  in  transactions  with  other  government  agencies,  departments  and  Crown  Corporations, 
notably  B.C.  Hydro  and  Power  Authority  and  B.C.  Systems  Corporation,  on  normal  commercial  terms. 

The  Minister  of  Finance,  in  his  capacity  as  the  Corporation's  fiscal  agent,  arranges  short  and  long  term  financing  at 
the  Corporation’s  request.  The  Corporahon  paid  fees  totalling  $  1 .0  million  in  the  year  for  these  fiscal  agent  services. 

15. CONT1NGENT  LIABILITIES 

The  Corporation  in  conducting  its  usual  business  activities,  is  involved  in  various  legal  proceedings  and  litigation,  the 
outcome  of  which  is  indeterrriinable.  It  is  the  Corporation’s  policy  to  carrv'  adequate  insurance  to  minimize  the  risk 
associated  with  such  matters.  Management  is  of  the  opinion  that  the  aggregate  liability,  if  any.  of  these  proceedings 
and  litigation  would  not  be  material  to  the  Corporation. 


68 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Festival  of  the  Arts  Society 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


Third  Floor.  Royal  Bank  Building 
707  Fort  Street 

Victoria.  British  Columbia.  Canada 
V8W  3G3 


Telephone  (604)  382-8251 
Telefax  (604)  382-0622 


AUDITORS*  REPORT  TO  THE  MEMBERS 


We  have  audited  the  balance  of  the  British  Columbia  Festival  of  the  Arts  Society  as  at 
August  31,  1991  and  the  statement  of  revenue  and  expenditures  and  surplus  for  the  period  then 
ended.  These  financial  statements  are  the  responsibility  of  the  Society's  management.  Our 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly.  In  all  material  respects,  the  financial  position  of 
the  Society  as  at  August  31,  1991  and  the  results  of  Its  operations  for  the  period  then  ended  in 
accordance  with  generally  accepted  accounting  principles.  As  required  by  the  British  Columbia 
Society  Act,  we  report  that,  in  our  opinion,  these  principles  hav9»been  applied  on  a  basis  consistent 
with  that  of  the  preceding  year. 


Chartered  Accountants 


Victoria,  Canada 
October  29,  1991 


■■H 


Fiini  of 

KIvTivHlrl 


PUBLIC  ACCOUNTS  1991/92 


C  69 


BRITISH  COLUMBIA  FESTIVAL 
OF  THE  ARTS  SOCIETY 

Balance  Sheet 

August  31,  1991,  with  comparative  figures  for  March  31,  1991 


August  31,  March  31, 

1991  1991 


Assets 

Current  assets: 

Cash  and  term  deposits  $  340,265  $  803,761 

Accrued  interest  receivable  997  7,050 

Accounts  receivable  3,267  2,611 

GST  receivable  1,722 

346,251  813,422 

Equipment: 

Furniture  and  equipment  14,965  14,965 

Accumulated  depreciation  7,786  6,832 

7,179  8,133 


$  353,430  $  821,555 


Liabilities  and  Surplus 

Current  liabilities: 

Accounts  payable  and  accrued  liabilities  $  8,906  $  14,388 

Grants  payable  75,000  - 

Deferred  grant  revenue  (note  2) _ 263,000 _ 800,000 

346,906  814,388 


Surplus  --  6,524  7,167 


Director 


C  70 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  FESTIVAL 
OF  THE  ARTS  SOCIETY 

Statement  of  Revenue  and  Expenditures  and  Surplus 

For  the  five  months  ended  August  31,  1991,  with  comparative  figures  for  the  year  ended 
March  31,  1991 


August  31,  March  31, 


1991 

1991 

Revenue: 

Grant  (note  2) 

$  537,000 

$ 

800,000 

Donations  (note  3) 

1,641 

16,875 

Interest 

12,534 

28,100 

551,175 

844,975 

Expenditures: 

Host  community 

346,300 

373,413 

Provincial  Arts  Service  Organizations 

11,116 

181,737 

Salaries  and  employee  benefits 

21,364 

45,574 

Executive  director’s  fees 

4,000 

15,680 

Rent 

3,714 

8,017 

Printing 

3,098 

18,753 

Festival  promotion  and  advertising 

15,152 

32,564 

Travel 

88,568 

99,375 

Office 

6,391 

9,579 

Supplies  and  equipment 

1,383 

2,618 

Adjudicators’  fees 

41,289 

39,224 

Telephone 

2,509 

3,206 

Courier 

1,756 

971 

Professional  fees 

4,224 

10,109 

Depreciation 

954 

3,194 

551,818 

844,014 

Net  revenue  (expenditures) 

(643) 

961 

Surplus,  beginning  of  year 

7,167 

6,206 

Surplus,  end  of  year 

$  6,524 

$ 

7,167 

See  accompanying  notes  to  financial  statements. 

! 


I 


PUBLIC  ACCOUNTS  1991/92 


C  71 


BRITISH  COLUMBIA  FESTIVAL 
OF  THE  ARTS  SOCIETY 

Notes  to  Financial  Statements 
Five  months  ended  August  31,  1991 


The  Society  was  incorporated  under  the  British  Columbia  Society  Act  on  August  26,  1988  and  its 
principal  activities  include  the  staging  of  an  annual  arts  festival. 

The  fiscal  year  end  of  the  Society  has  been  changed  from  March  31  to  August  31  and, 
accordingly,  these  financial  statements  are  for  the  five  months  from  April  1,  1991  to  August  31, 
1991. 

1 .  Significant  accounting  policies: 

(a)  Equipment: 

Equipment  is  stated  at  cost.  Depreciation  is  computed  using  the  declining  balance  method  at 
the  following  annual  rates: 

Computer  hardware  30% 

Furniture  and  equipment  20% 

(b)  Donated  equipment,  materials  and  services: 

Donated  equipment  and  materials  are  recorded  In  the  financial  statements  at  fair  market  value 
when  this  can  be  reasonably  determined.  Donated  services,  such  a  volunteer  labour,  are  not 
recorded  In  the  financial  statements. 

2.  Grant  revenue  and  expenditures: 

Under  the  terms  of  a  contract  with  the  Minister  of  Municipal  Affairs,  Recreation  and  Culture 
covering  the  two-year  period  from  April  1 , 1990  to  March  31,1 992,  the  Society  received  a  grant  of 
$1,600,000  to  fund  two  years  of  operation  of  the  annual  British  Columbia  Festival  of  the  Arts. 

In  order  to  match  revenues  and  expenditures,  the  Society  recorded  $800,000  as  revenue  for  the 
year  ended  March  31,  1991  and  $537,000  as  revenue  for  the  period  ended  August  31,  1991, 
and  has  recorded  the  remaining  $263,000  on  the  balance  sheet  as  revenue  deferred  to  the 
period  from  September  1,  1991  to  March  31,  1992. 


C  72 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  FESTIVAL 
OF  THE  ARTS  SOCIETY 

Notes  to  Financial  Statements,  page  2 
Five  months  ended  August  31,  1991 


3.  Donations: 

August  31, 

March  31, 

1991 

1991 

Cash 

$ 

$  7,700 

Air  travel 

1,641 

6,175 

Equipment 

~ 

3,000 

$ 

1,641 

$  16,875 

4.  Statement  of  changes  in  financial  position: 

A  statement  of  changes  in  financial  position  has  not  been  prepared  as  it  would  not  provide 
additional  information. 

5.  Contingency: 

The  society  has  applied  for  registration  as  a  charity  under  the  Income  Tax  Act.  A  liability  for  income 
taxes  may  exist  if  registration  retroactive  to  the  date  of  incorporation  is  not  obtained. 


PUBLIC  ACCOUNTS  1991/92 


C  73 


British  Columbia  Hazardous  Waste  Management  Corporation 

HI  Ernst  &Younc 


AUDITORS*  REPORT 


To  the  Board  of  Directors 

Lieutenant  Governor  in  Council,  Province  of  British  Columbia 
Minister  of  Environment,  Province  of  British  Columbia 


We  have  audited  the  balance  sheet  of  British  Columbia  Hazardous  Waste 
Management  Corporation  as  at  March  31,  1992  and  the  statements  of 
operations  and  retained  excess  of  revenues  over  expenses  and  changes  in  financial 
position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility 
of  the  corporation's  management.  Our  responsibility  is  to  express  an  opinion  on 
these  fmancial  statements  based  on  our  audit 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  plan  and  perform  an  audit  to  obtain  reasonable 
assurance  whether  the  fmancial  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  fmancial  statement  presentation. 

In  our  opinion,  these  fmancial  statements  present  fairly,  in  all  material  respects,  the 
fmancial  position  of  the  Corporation  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Vancouver,  Canada, 
May  29  1992. 


Chartered  Accountants 


C  74 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Hazardous  Waste  Management  Corporation 

BALANCE  SHEET 

Year 

Eight 

months 

ended 

ended 

March  31, 

March  31 

1992 

1991 

$ 

$ 

ASSETS 

Cash 

2,126,852 

811,639 

Sustainable  Environment  Fund  grant  receivable 

— 

295,845 

Other  receivables 

56,506 

37,930 

Prepaid  expenses 

236 

10,562 

Fixed  assets  [note  4] 

231,510 

441.156 

2,415,014 

1,597,132 

LIABILITIES  AND  RETAINED  EXCESS 

OF  REVENUES  OVER  EXPENSES 

Accounts  payable  and  accrued  liabilities 

1,364,028 

462,326 

Retained  excess  of  revenues  over  expenses 

1,051,076 

1.134.806 

2,415,104 

1,597,132 

See  accompanying  notes 
On  behalf  of  the  Board: 


I 


Director 


PUBLIC  ACCOUNTS  1991/92 


C  75 


British  Columbia  Hazardous  Waste  Management  Corporation 


STATEMENT  OF  OPERATIONS 


Year 
ended 
March  31, 
1992 
$ 


Eight  months 
ended 
March  31, 
1991 
$ 


REVENUES 

Sustainable  Environment  Fund  grant  4,000,000  3,688,000 

Interest  income _ 113,289 _ 36,886 

4,113,289  3,724,886 


EXPENSES 


Operating  expenses 

1,363,171 

868,451 

Salaries  and  benefits 

1,386,414 

341,459 

Office  administration 

788,114 

1,025,429 

Building  occupancy 

456,886 

262,243 

Depreciation 

136,502 

92,498 

4,131,087 

2,590.080 

Excess  (deficiency)  of  revenues  over  expenses 

(17,798) 

1,134,806 

STATEMENT  OF  RETAINED  EXCESS  OF 
REVENUES  OVER  EXPENSES 


Year 
ended 
March  31, 
1992 
$ 

Eight  months 
ended 
March  31, 
1991 
$ 

Retained  excess  of  revenues  over  expenses, 
beginning  of  period 

Excess  (deficiency)  of  revenues  over  expenses 

Continuity  of  interest  adjustment 

1,134,806 

(17,798) 

(65,932) 

Nil 

1,134,806 

Retained  excess  of  revenues 
end  of  period 

over  expenses. 

1,051,076 

1,134,806 

See  accompanying  notes 


C  76 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Hazardous  Waste  Management  Corporation 

STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 


Year 

Eight  months 

ended 

ended 

March  31, 

March  31, 

1992 

1991 

$ 

$ 

OPERATING  ACTIVITIES 

Excess  (deficiency)  of  revenues  over  expenses 

Adjustmenl  for  items  not  involving  a  flow  of  cash: 

(17,798) 

1,134,806 

Depreciation 

Change  in  non-cash  working  capital  balances 

136,502 

92,498 

related  to  operations 

1,189,297 

117,989 

Cash  provided  by  operating  activities 

1,308,001 

1,345.293 

INVESTING  ACTIVITIES 

Purchase  of  fixed  assets 

(17,698) 

(533,654) 

Proceeds  on  sale  of  fixed  assets 

24,910 

— 

Cash  provided  by  (used  in)  investing  activities 

7,212 

(533,654) 

Increase  in  cash 

1,315,213 

811,639 

Cash,  beginning  of  period 

811,639 

— 

Cash,  end  of  period 

2,126,852 

811,639 

See  accompanying  notes 


PUBLIC  ACCOUNTS  1991/92 


C  77 


British  Columbia  Hazardous  Waste  Management  Corporation 


NOTES  TO  FINANCIAL  STATEMENTS 


March  31, 1992 


1.  AUTHORITY 

British  Columbia  Hazardous  Waste  Management  Corporation  is  established  under  the  Hazardous 
Waste  Management  Corporation  Act  (the  Act).  The  principle  role  of  the  Corporation  is  the 
development,  implementation  and  maintenance  of  a  comprehensive  hazardous  waste  management 
system  in  British  Columbia  through  partnership  with  industry,  business  and  local  government 

The  Act  limited  the  lifespan  of  the  Corporation  to  5  years.  The  Corporation  commenced 
operations  on  August  1,  1990. 


2.  TRANSFER  OF  OPERATIONS 

On  March  26,  1992  the  Provincial  government  announced  that  all  the  operations  of  the 
Corporation  would  be  reorganized  and  transferred  to  the  Ministry  of  Environment,  Land  and  Parks 
and  the  Corporation  subsequently  dissolved. 


3.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES 

As  prescribed  by  Section  12(7)  of  the  Act,  the  financial  statements  of  the  Corporation  are  prepared 
according  to  generally  accepted  accounting  principles. 

Continuity  of  interest 

Any  non-arm's  length  reorganization  and  transfer  of  operations  is  accounted  for  using  the 
continuity  of  interest  method  of  accounting  under  which  gains  and  losses  on  non-arm's  length  asset 
transfers  are  recorded  directly  in  the  statement  of  retained  excess  of  revenues  over  expenses  at  the 
time  of  their  transfer.  Expenses  related  to  the  non-arm's  length  reorganization  and  transfer  of 
operations  are  costs  of  continuing  public  sector  operations  and  are  classified  according  to  their 
nature  in  the  statement  of  operations. 

Estimated  future  costs  of  reorganizing  and  transferring  operations 

Estimated  future  costs  related  to  the  reorganization  and  transfer  of  operations  are  accrued  and 
expensed  in  the  fiscal  period  in  which  the  reorganization  decision  is  made. 


C  78 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Hazardous  Waste  Management  Corporation 


NOTES  TO  FINANCIAL  STATEMENTS 


March  31,  1992 


3.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (confd.) 
Grant  funding 

Grant  funding  was  received  from  the  Province  of  British  Columbia  through  the  Sustainable 
Environment  Fund  administered  by  the  Ministry  of  Environment,  Land  and  Parks. 

Fixed  assets 

Fixed  assets  are  recorded  at  cost  less  depreciation  provided  on  the  straight  line  basis  as  follows: 

Computer  equipment  3  years 

Furniture  and  equipment  5  years 

Leasehold  improvements  5  years 

Corporate  income  taxes 

The  Corporation  is  exempt  from  Federal  and  Provincial  income  taxes. 


4.  FIXED  ASSETS 

Cost 

$ 

Accumulated 

depreciation 

$ 

Net 

book 

value 

$ 

1992 

Ccnnputer  equipment 

240,123 

133,402 

106,721 

Furniture  and  equipment 

163,632 

52,151 

111,481 

Leasehold  improvements 

19,553 

6,245 

13,308 

423,308 

191,798 

231,510 

1991 

Cwnputer  equipment 

240,123 

53,361 

186,762 

Furniture  and  equipment 

197,753 

26,367 

171,386 

Leasehold  improvements 

95,778 

12,770 

83,008 

533,654 

92,498 

441,156 

PUBLIC  ACCOUNTS  1991/92 


C  79 


British  Columbia  Hazardous  Waste  Management  Corporation 


NOTES  TO  FINANCIAL  STATEMENTS 


March  31, 1992 


5.  RELATED  PARTY  TRANSACTIONS 

Gram  funding  was  received  from  the  Province  of  British  Columbia  through  the  Sustainable 
Environment  Fund  administered  by  the  Ministry  of  Environment,  Land  and  Parks. 

The  Corporation  engages  in  transactions  with  other  government  agencies,  departments  and  Crown 
Corporations  on  normal  intra-government  terms. 


6.  COMPARATIVE  FIGURES 

Certain  of  the  cennparative  figures  have  been  reclassified  to  conform  to  the  presentation  adopted  in 
the  current  year. 


C  80 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Health  Research  Foundation 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)387-6803 
Fax  (604)387-1230 


To  the  Members  of  the  Board  of  Directors, 

British  Columbia  Health  Research  Foundation,  and 

To  the  Minister  of  Health  and  Minister  Responsible  for  Seniors, 

Province  of  British  Columbia: 

I  have  audited  the  balance  sheet  of  the  British  Columbia  Health  Research 
Foundation  as  at  March  31,  1992  and  the  statement  of  revenue  and  expenditure  and 
surplus  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of 
the  Foundation's  management.  My  responsibility  is  to  express  an  opinion  on  these 
financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Foundation  as  at  March  31,  1992  and  the  results  of  its 
operations  for  the  year  then  ended  in  accordance  with  generally  accepted 
accounting  principles. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
June  16,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  81 


STATEMENT  OF  RESPONSIBILITY 


To  the  Board  of  Directors  of  the 

British  Columbia  Health  Research  Foundation,  and 
To  The  Minister  of  Health: 


Responsibility  for  the  integrity  and  objectivity  of  the  accompanying 
financial  statements  rests  with  the  Foundation.  The  financial  statements 
are  prepared  by  the  Financial  Services  Division,  Ministry  of  Health,  in 
accordance  with  generally  accepted  accounting  principles  for  non-profit 
organizations  in  a  manner  consistent  with  the  previous  year.  Policies 
and  procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are  safeguarded,  and 
financial  records  properly  maintained  to  provide  reliable  financial 
statements. 

The  Auditor  General  of  the  Province  of  British  Columbia  conducts  an 
independent  examination,  in  accordance  with  generally  accepted 
auditing  standards,  and  provides  an  independent  professional  opinion  on 
the  financial  statements  of  the  Foundation. 


>.  Herbert,  C.A. 
executive  Director 
Financial  Services 
Ministry  of  Health 


Victoria,  British  Columbia 
June  24,  1992 


C  82 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION 

BALANCE  SHEET 
AS  AT  MARCH  31,1992 

1992  1991 

ASSETS 

Cash  $  50.174  $  2,357,065 

Short-term  investments  17,040,008  12,383,785 

(market  $17,054,928  -  1991  $12,489,925) 

Accounts  receivable  2,243  1 1 ,922 


$  17,092,425  $  14,752.772 


LIABILITIES 

Accounts  payable  $  14,179  $  69,653 

Grants,  fellowships,  and  scholarships  payable  7,106,190  6,816,645 

Deferred  contributions  (note  3)  6,177,710  5,520,051 

SHAREHOLDER’S  EQUITY 

Share  Capital-authorized  and  issued, 
one  share  with  a  par  value  of  $1 00  (note  1 )  100 

Surplus  3.794,246  2,346.423 


$  17,092,425  $  14,752,772 


The  accompanying  notes  are  an  integral  part 
of  these  financial  statements. 


Approved  by  the  Directors: 

Elizabeth  Cull 
Director 


Les  Foster 
Director 


PUBLIC  ACCOUNTS  1991/92 


C  83 


BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION 
STATEMENT  OF  REVENUE  AND  EXPENDITURE  AND  SURPLUS 
FOR  THE  YEAR  ENDED  MARCH  31,1992 


1992  1991 

REVENUE 

Contributions: 

Lottery  Fund 

Ministry  of  Advanced  Education,  Training  and  Technology 
Interest 
Donations 


11,919,602  12,560,328 


$  8,832,635 

1 ,259,706 
1,827,111 
150 


$  9,200,000 

1,419,702 
1 ,940,526 
100 


EXPENDITURE 


Grants 
-Research 
-Equipment 
-Emergency  funding 
-Development 

-Community  Demonstration  Projects 
Research  fellowships 
Scholarship  awards 
Administrative  expenses 
Joint  Patent  Fund 


EXCESS  OF  REVENUE  OVER  EXPENDITURE 


5,895,817 

5,586,225 

963,452 

1,451,934 

24,440 

29,473 

- 

10,000 

1,060,196 

2,063,532 

94,205 

35,670 

1,466,531 

1,259,910 

689,131 

482,976 

278,007 

448,503 

10,471,779 

1 1 ,368,223 

1 ,447,823 

1,192,105 

SURPLUS  AT  BEGINNING  OF  YEAR 


2,346,423 


1,154,318 


$  3,794,246 


$  2,346,423 


SURPLUS  AT  END  OF  YEAR 


C  84 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 

1.  THE  FOUNDATION 

The  British  Columbia  Health  Research  Foundation  (the  Foundation)  was 
incorporated  pursuant  to  the  British  Columbia  Health  Research  Foundation  Act 
(the  Act)  on  March  12,  1991,  and  is  an  agent  of  the  Crown.  The  Act  provided 
for  the  Foundation  to  assume  all  rights  and  obligations  of  the  British  Columbia 
Health  Care  Research  Foundation,  incorporated  under  the  Society  Act. 

The  objects  of  the  Foundation  are  to  assist  and  collaborate  with  organizations 
conducting  research  in  the  field  of  health,  including  policy,  promotion,  and 
care  in  the  Province  of  British  Columbia;  to  co-operate  with  community 
facilities  or  organizations  concerned  with  the  general  health  of  communities 
in  the  Province;  and  to  accept  and  receive  grants,  donations,  and  other  funds 
for  use  in  carrying  out  its  objects.  It  awards  grants  to  support  health  research, 
purchase  of  equipment,  development  of  research  proposals,  and  special 
research  demonstration  projects  for  innovative  community  based  pilot  projects 
with  evaluations. 

One  share  with  a  par  value  of  $100.00  in  the  capital  of  the  Foundation  was 
issued  on  June  28,  1991,  and  is  held  by  the  Minister  of  Finance  and  Corporate 
Relations. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 
Basis  of  Accounting 

These  financial  statements  have  been  prepared  in  accordance  with  generally 
accepted  accounting  principles  for  non-profit  organizations.  A  statement  of 
changes  in  financial  position  has  not  been  included  as  it  would  not  provide 
additional  useful  information. 

Specific  Accounting  Policies 

a)  Revenue 

Contributions  are  recognized  in  the  year  in  which  the  corresponding  grants 
are  awarded  by  the  Foundation. 


PUBLIC  ACCOUNTS  1991/92 


C  85 


BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 

b)  Expenditures 

Grants  and  fellowships  are  recognized  as  expenditures  in  the  year  they  are 
awarded. 

Scholarship  awards  are  renewable  for  three  additional  years,  subject  to 
satisfactory  annual  progress  reports  and  applications  for  renewal.  Only 
current  year  awards  are  expended  during  the  year. 

c)  Short-Term  Investments 

Short-term  investments  consist  of  units  in  Province  of  British  Columbia 
Pooled  Investment  Portfolios.  Units  are  carried  at  the  lower  of  cost, 
adjusted  by  income  attributed  to  the  units,  and  market  value.  Income 
attributed  to  the  units  represents  the  unitholder’s  share  of  interest  earned 
and  realized  upon  sale  of  units. 

d)  Donated  Services 

The  Province  and  the  Science  Council  of  British  Columbia  provide  certain 
staffing,  accommodation,  and  administrative  services  to  the  Foundation. 
No  amounts  are  recorded  in  the  financial  records  of  the  Foundation  for 
these  donated  services  as  the  cost  of  providing  these  services  is  determined 
to  be  not  significant. 


3.  DEFERRED  CONTRIBUTIONS 


1992 

1991 

Community  Demonstration  Projects 

Ministry  of  Advanced  Education,  Training 

$5,917,365 

$4,000,000 

and  Technology 

260.345 

1.520.051 

$6,177,710 

$5,520,051 

The  Community  Demonstration  Projects  contribution  represents  lottery  funds 
received  for  which  competitions  will  be  held  in  subsequent  fiscal  years.  These 
projects  are  awarded  on  a  one-time  basis,  and  it  may  take  up  to  one  year 
before  grants  are  awarded. 


C  86 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


The  Ministry  of  Advanced  Education,  Training  and  Technology  contribution 
relates  to  grants  paid  to  the  Province  under  the  Federal  Patent  Act. 
Contributions  received  by  the  Foundation  are  those  amounts  authorized  by  the 
Province  for  distribution  to  the  Foundation.  The  contributions  include  funds 
to  be  administered  by  the  Foundation  (1992  -  $nil;  1991  -  $981,700),  and 
funds  to  be  administered  jointly  by  the  Foundation  and  the  Science  Council 
of  British  Columbia  (1992  -  $260,345;  1991  -  $538,351). 


4.  COMMITMENT 

If  all  existing  scholarships  are  renewed  for  their  remaining  terms,  the 
commitment  required  to  fund  them  would  be  $2,059,476  (1991  -  $2,015,830). 


PUBLIC  ACCOUNTS  1991/92 


C  87 


British  Columbia  Heritage  Trust 


AUDITORS'  REPORT 


To  the  Members  of  the  Board  of  Directors, 
British  Columbia  Heritage  Trust,  and 


ill 

^  To  the  Minister  Responsible  for  Culture, 
1  Province  of  British  Columbia 


We  have  audited  the  balance  sheet  of  British  Columbia  Heritage  Trust  as  at  March  31,  1992  and 
ijthe  statements  of  revenue  and  expenditure,  heritage  investment  fund  and  changes  in  financial 
[position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Trust's 
'•management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on 
i||our  audit. 

I  We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
^require  that  we  plan  and  perform  an  audit  to  obtain  reasonable  assurance  whether  the  financial 
I  statements  are  free  of  material  misstatement.  An  audit  includes  examining,  on  a  test  basis, 
jevidence  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 
i|as  evaluating  the  overall  financial  statement  presentation. 

!  In  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial 
[position  of  the  Trust  as  at  March  31,1 992  and  the  results  of  its  operations  and  the  changes  in  its 
l|financial  position  for  the  year  then  ended  in  accordance  with  the  accounting  principles  disclosed  in 
iiNote  2  to  the  financial  statements. 

Ifurther,  we  have  examined  the  transactions  that  came  to  our  notice  in  the  course  of  our 
1  examination  of  the  financial  statements  of  British  Columbia  Heritage  Trust  for  the  year  ended  March 
:31 , 1 992  to  determine  whether  they  were  in  compliance  with  the  Heritage  Conservation  Act.  Our 
examination  of  these  transactions  was  made  in  accordance  with  generally  accepted  auditing 
[Standards,  and  accordingly  included  such  tests  and  other  procedures  as  we  considered  necessary 
i  jn  the  circumstances.  In  our  opinion,  these  transactions  were,  in  all  material  respects,  in  compliance 
I  with  the  Act. 


Chartered  Accountants 
Victoria,  B.C. 

May  15,  1992 


C  88 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HERITAGE  TRUST 

BAU\NCE  SHEET 
as  at  March  31,  1992 


CURRENT  ASSETS 


Cash 

Short-term  investments 
(market  value  $3,242,953;  1991  -  $3,732,369) 
Accounts  receivable 


HERITAGE  PROPERTIES  (Note  3) 


Director 

Director 


1992 


1991 


$  327,389  $  197,268 


3,117,257  3,692,368 


49.587 


50C 


3,494,233  3,890,136 


$5,461,264 

$5,759,12(1 

CURRENT  LIABILITIES 

Accounts  payable  and  accrued  liabilities 

$  46,504 

$  74,83; 

Due  to  Province  of  British  Columbia 

2,549 

5.45; 

49.053 

80.28^ 

HERITAGE  INVESTMENT  FUND 

Invested  in  heritage  properties 

1,967,031 

1,868,98 

Committed  to  heritage  projects 

3,304,361 

3,604,081 

Uncommitted  fund  balance 

140.819 

205.761 

5.412.211 

5.678.83 

$5,461,264 

$5,759,121 

PUBLIC  ACCOUNTS  1991/92 


C  89 


BRITISH  COLUMBIA  HERITAGE  TRUST 

STATEMENT  OF  REVENUE  AND  EXPENDITURE 
year  ended  March  31,  1992 


1992 

1991 

Revenue 

Grant  from  the  British  Columbia  Lottery  Fund 

$  2,550,000 

$  2,550,000 

Investment  income 

403,595 

585,485 

Miscellaneous  revenue 

106.549 

41.545 

3,060.144 

3.177.030 

Expenditure 

Grants 

,  Archaeology 

171,494 

107,600 

Building  restoration 

579,099 

247,943 

j  Community  heritage  development 

140,077 

178,958 

1  Community  heritage  markers 

18,371 

350 

1  Conferences  and  societies 

132,588 

111,045 

II  Heritage  Area  Revitalization  Program 

342,050 

161,058 

Historic  landmarks 

338,250 

286,906 

i  Planning  and  inventory 

303,514 

160,881 

Publications  assistance 

45,000 

60,655 

Regional  heritage  development 

129,430 

55,000 

1  Religious  buildings 

90,520 

137,279 

f  Scholarships 

22,000 

11,000 

1  Special  projects 

60,906 

47,624 

;  Transportation  artifacts 

1 

14.804 

41.402 

2.388.103 

1.607.701 

Administration 

178,884 

134,538 

f  Education  and  communication 

14,917 

75,394 

|iCommunity  Pride  Program 

246,358 

262,022 

Wsite  management  expenses 

498.507 

399.141 

938.666 

871.095 

■ 

3.326.769 

2.478.796 

,i  XCESS  OF  REVENUE  OVER  EXPENDITURE 
/'(EXPENDITURE  OVER  REVENUE) 


$  1266.6251  $  698.234 


C  90 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HERITAGE  TRUST 

STATEMENT  OF  HERITAGE  INVESTMENT  FUND 
year  ended  March  31,  1992 


Invested 
in  Heritage 
Properties 

Committed 
to  Heritage 
Proiects 

Heritage  Investment  Fund, 
beginning  of  year 

$1,868,984 

$3,604,086 

Excess  of  expenditure  over 
revenue 

- 

- 

Commitments  made  during  the  year 
net  of  grants  paid  and 
commitments  revoked  (Schedule) 

(299,725) 

Acquisition  of  heritage  property 
assets 

98.047 

Heritage  Investment  Fund, 
end  of  year 

$1,967,031 

$3,304,361 

Uncommitted 

Fund 

Balance 


$  205,766 
(266,625) 


299,725 


(98.0471 


$  140.819 


Total 


$5,678,83C 

(266,625 


$5.412.2ll 


PUBLIC  ACCOUNTS  1991/92 


C  91 


BRITISH  COLUMBIA  HERITAGE  TRUST 

STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
year  ended  March  31,  1992 


iNET  INFLOW  (OUTFLOW)  OF  CASH  RELATED  TO  THE 
!  FOLLOWING  ACTIVITIES: 


i|!  OPERATING 

I  Excess  of  revenue  over  expenditure 
ill  (expenditure  over  revenue) 


! 

L  Changes  in  non-cash  operating  working 
capital  items 

*i  Accounts  receivable 

j  i  Accounts  payable  and  accrued  liabilities 


I  FINANCING 

Ji;  Advances  (to)  from  Province  of  British  Columbia 
;  INVESTING 

2j;  Acquisition  of  heritage  properties  (net) 

1' 

^lET  CASH  INFLOW  (OUTFLOW) 
iUsH  POSITION,  BEGINNING  OF  YEAR 
t-ASH  POSITION,  END  OF  YEAR 


'  EPRESENTED  BY: 
iCash 

I  |Short-term  investments 


j 


1992 


$  (266,625) 

(49,087) 

J2S32B) 

(344.040) 

f2.903) 

...  (98,047) 

(444,990) 

3.889.636 

$3.444.646 

$  327,389 
3.117.257 

$3.444.646 


1991 


$  698,234 

450 

37.469 

736.153 

1.252 

f382.670) 

354,735 

3.534.901 

$3.889.636 

$  197,268 
3.692.368 

$3.889.636 


C  92 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HERITAGE  TRUST 

NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


1 .  DESCRIPTION  OF  THE  TRUST 

The  British  Columbia  Heritage  Trust  is  a  Crown  Corporation  incorporated  under  the 
Heritage  Conservation  Act,  R.S.B.C.  1979,  Chapter  165,  and  is  an  agent  of  the  Crown 
The  object  of  the  Trust  is  to  encourage  and  facilitate  the  protection  and  conservation  o 
heritage  property  in  the  Province. 

2.  ACCOUNTING  POLICIES 
Short-term  investments 


Short-term  investments  consist  of  units  in  Province  of  British  Columbia  Pooled  Investmer 
Portfolios  and  are  recorded  at  the  lower  of  cost  and  market  value. 

Heritage  properties 

Costs  incurred  for  the  acquisition,  restoration  and  upgrading  of  heritage  property 
excess  of  $1,500  are  capitalized.  Expenditures  which  do  not  relate  to  restoration  an| 
upgrading  are  expensed  in  the  year.  In  the  current  year,  $33,534  has  been  expensed 
accordance  with  this  policy  (1991  -  $39,416).  Donated  property  is  recorded  at  t 
appraised  value  at  the  time  of  its  receipt. 


Due  to  the  heritage  nature  of  these  properties,  no  provision  is  made  for  depreciation. 
Grant  expenditures 

Grants  to  approved  projects  are  recorded  as  an  expenditure  in  the  year  the  disburseme 
is  made. 


PUBLIC  ACCOUNTS  1991/92 


C  93 


BRITISH  COLUMBIA  HERITAGE  TRUST 

NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


HERITAGE  PROPERTIES 


1992  1991 


Land,  buildings  and  furnishings 


Beach  Grove 

$  121,185 

$  121,185 

Hat  Creek  Ranch 

876,031 

830,471 

Keremeos  Grist  Mill 

635,130 

605,852 

Vallican  Archaeological  Site 

82,080 

82,080 

Monte  Creek 

41.000 

41.000 

1,755.426 

1.680.588 

Machinery  and  equipment 

C.P.  Railway  Business  Car  19 

47,041 

47,041 

Machinery  artifacts 

144,564 

116,355 

B.X.  Stagecoach 

20,000 

20,000 

Ontario  Rail  Car 

- 

5.000 

211.605 

188.396 

$1,967,031 

$1,868,984 

RELATED  PARTY  TRANSACTIONS 

During  the  year,  the  Trust  had  the  following  transactions  with  the  Province  of  British 

Columbia: 

a)  Received  grants  from  the  British  Columbia  Lottery  Fund  amounting  to  $2,550,000 
(1991  -  $2,550,000). 

b)  Received  certain  staffing,  accommodation  and  administrative  services  for  the  Trust  at 
no  charge.  The  fair  value  of  providing  these  services  amounted  to  approximately 
$407,000  (1991  -$384,000). 

c)  Earned  income  from  its  funds  invested  in  the  Pooled  Investment  Portfolio  amounting 
to  $378,596  (1991  -  $561,953).  In  addition,  the  Trust  paid  to  the  Provincial  Treasury 
$7,053  (1991  -$7,620)  for  management  of  the  Portfolio. 


C  94 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HERITAGE  TRUST 

NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


5.  COMMITMENTS 

The  Trust  is  committed  under  contracts  for  various  professional  services  in  1993  for 
$676,000. 

The  Trust  had  commitments  for  heritage  grants  totalling  $3,304,361  at  March  31,  1992 
(1991  -  $3,604,086)  as  set  out  in  the  attached  schedule  of  commitments  anc 
disbursements  of  grants. 


6.  CONTINGENCY 

The  Province  of  British  Columbia  is  a  defendant  in  a  land  claims  lawsuit  which  includes 
the  Vallican  property  beneficially  owned  by  the  Trust. 

As  at  the  date  of  these  financial  statements,  this  lawsuit  has  not  been  resolved  and  the 
Trust  is  unable  to  determine  the  likelihood  or  amount,  if  any,  of  the  loss.  If  settlement  o 
this  litigation  results  in  a  loss  to  the  Trust,  it  will  be  accounted  for  as  a  prior  perioe 
adjustment. 

7.  COMPARATIVE  FIGURES 

Certain  of  the  prior  year’s  comparative  figures  have  been  reclassified  to  conform  to 
the  current  year’s  presentation.  j 


BRITISH  COLUMBIA  HERITAGE  TRUST 


PUBLIC  ACCOUNTS  1991/92 


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C  96 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia 


Housing  and  Employment  Development 
Financing  Authority 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 

(604) 387-6803 
Fax (604) 387-1230 


To  the  Members  of  the  British  Columbia  Housing  and 
Employment  Development  Financing  Authority,  and 


To  the  Minister  of  Finance  and  Corporate  Relations, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  British  Columbia  Housing  and 
Employment  Development  Financing  Authority  as  at  March  31,  1992  and  the 
statement  of  revenue,  expenditure  and  accumulated  balance  and  statement  of 
changes  in  financial  position  for  the  year  then  ended.  These  financial  statements 
are  the  responsibility  of  the  Authority's  management.  My  responsibility  is  to  express 
an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Authority  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Victoria,  British  Columbia 
May  15,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  97 


STATEMENT  OF  RESPONSIBILITY 


To  the  Members  of  the 

British  Columbia  Housing  and  Employment 
Development  Financing  Authority 

Responsibility'  for  the  integrity  and  objectivity  of  the 
accompanying  financial  statements  rests  with  the  Authority. 
The  financial  statements  are  prepared  by  the  Provincial 
Treasury,  Ministry  of  Finance  and  Corporate  Relations  in 
accordance  with  generally  accepted  accounting  principles  in 
a  manner  consistent  with  the  previous  year.  Policies  and 
procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are 
safeguarded  and  financial  records  properly  maintained  to 
provide  reliable  financial  statements. 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial 
statements . 


Banking/Cash  Management 
Provincial  Treasury 

Victoria,  British  Columbia 
June  23,  1992 


C  98 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HOUSING  AND  EMPLOYMENT  DEVELOPMENT 
FINANCING  AUTHORITY 
BALANCE  SHEET 
AS  AT  MARCH  31,  1992 
ASSETS 


1992 


Cash  and  temporary  investment  $1,698,931 

Due  from  the  Province  of  British  Columbia  _ 29 

$1,698 ,960 


LIABILITIES  AND  ACCUMULATED  BALANCE 


1991 


$1,619,3 

1 


$1 , 619 , 5 


Accounts  payable 
Accrued  interest  payable 
Term  debt  (note  3) 

Accumulated  balance 


194,106 

604 , 600 

798,929 

900,031 

$1 , 698 ,960 


210,7 

648 , 1 

858,9 

760,5 

$1,619,5 


The  four  accompanying  notes  are  an  integral 
part  of  these  financial  statements. 

Approved  by  the  Authority: 

-'fiaJ.QjA 

Michael  Costello,  Secretary 


Glen  Clark,  Chairman 


PUBLIC  ACCOUNTS  1991/92 


C  99 


BRITISH  COLUMBIA  HOUSING  AND  EMPLOYMENT  DEVELOPMENT 
I  FINANCING  AUTHORITY 

I  STATEMENT  OF  REVENUE,  EXPENDITURE  AND  ACCUMULATED  BALANCE 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 

1992 

i  Revenue 

iii  Investment  income  $141,87  6 

Ll  :xpenditure 

11  Administrative  costs  2,376 

i|!xcess  of  Revenue 

!!j  over  Expenditure  13  9,500 

Iccumulated  Balance, 

I  Beginning  of  Year  760.531 

J 

rccumulated  Balance,  End  of  Year  $900 . 031 


1991 

$204,264 

2 . 006 

202 ,258 

558 , 273 

$760 . 531 


C  100 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HOUSING  AND  EMPLOYMENT  DEVELOPMENT 
FINANCING  AUTHORITY 

STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Operating  Transactions 

Excess  of  Revenue  over  Expenditure 

Changes  in  non-cash  items: 

Accrued  interest  payable 
Due  from  Province  of 
British  Columbia 
Accounts  payable 


1992 


1991 


$  139,500 

16,655 

(93) 

_ (101) 

16,461 

123 , 039 


$  202,258 

18,723 

(101) 
163 

18 , 785 

183 , 473 


Financing  Transactions 

Redemption  of  term  debt 
Increase  in  Funds 
Funds  at  Beginning  of  Year 
Funds  at  End  of  Year 


43,500 

79,539 
1 , 619 , 392 

$1,698 , 931 


116 ,700 

66,773 
1,552 , 619 

$1,619 , 392 


Funds  consist  of  cash  and  temporary  investment. 


PUBLIC  ACCOUNTS  1991/92 


C  101 


BRITISH  COLUMBIA  HOUSING  AND  EMPLOYMENT  DEVELOPMENT 
FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  The  Authority 

The  Authority  was  established  on  October  14,  1982  by  the  Housing  and 

Employment  Development  Financing  Act,  S.B.C.  1982  Chapter  34.  Section 
3  of  the  Act  states  that  "The  purposes  of  the  authority  are  to  create 
employment  by  financing  housing  and  other  capital  projects  in  British 
Columbia,  and  any  other  programs  the  committee  considers  advisable,  and 
to  raise  money  for  those  purposes  by  the  issue  of  housing  and  development 
bonds". 

All  notes  receivable  and  term  debt  have  matured  and  no  further  debt 
issues  are  permissible  under  the  Act.  The  Authority's  current  function 
is  to  administer  its  investment  pending  dissolution. 

2.  Significant  accounting  policies 

These  financial  statements  are  prepared  on  the  basis  of  generally  accepted 
accounting  principles. 

Temporary  investment  consists  of  units  in  Province  of  British  Columbia 
Pooled  Investment  Portfolio  STl.  These  units  are  carried  at  the  lower  of 
cost  of  acquisition,  adjusted  by  income  attributed  to  the  units,  and  market 
value. 

3 .  Term  debt 


Unpresented  debentures 
matured  March  31,  1986 


1992 


1991 


$604 , 600 


$648 , 100 


The  Province  of  British  Columbia  has  unconditionally  guaranteed 
payment  of  principal  and  interest  on  the  unpresented  debentures 
of  the  Authority. 

j  4.  Subsequent  event 

On  June  5,  1992,  the  Housing  and  Employment  Development  Financing  Act  was 
i  repealed  by  the  Finance  and  Corporate  Relations  Statutes  Amendment  Act, 

I  1992,  S.B.C.  1992  Chapter  7.  Upon  dissolution  of  the  Authority,  all  assets 
I  and  liabilities  will  be  transferred  to  the  government  and  all  future 
I  payments  will  be  made  by  the  government. 


C  102 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Housing  Management  Commission 

AUDITORS'  REPORT 


To  the  Chairman 

British  Columbia  Housing  Management  Commission 


We  have  audited  the  combined  balance  sheet  of  the  Province  of 
British  Columbia,  projects  and  programs  managed  by  British  Columbia 
Housing  Management  Commission  (the  Commission) ,  as  at  December  31, 

1991  and  the  combined  statements  of  revenue  and  expenditures  and 
Province's  account  and  changes  in  financial  position  for  the  year  then 
ended.  These  combined  financial  statements  are  the  responsibility  of 
the  Commission's  management.  Our  responsibility  is  to  express  an 
opinion  on  these  combined  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted 
auditing  standards.  Those  standards  require  that  we  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  our  opinion,  these  combined  financial  statements  present 
fairly,  in  all  material  respects,  the  financial  position  of  the 
projects  and  programs  managed  by  the  Commission  as  at  December  31, 

1991  and  the  results  of  operations  and  the  changes  in  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted 
accounting  principles. 


OA 


Chartered  Accountants 
New  Westminster,  Canada 


May  29,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  103 


PROVINCE  OF  BRITISH  COLUMBIA 
PROJECTS  AND  PROGRAMS 

MANAGED  BY  BRITISH  COLUMBIA  HOUSING  MANAGEMENT  COMMISSION 

COMBINED  BALANCE  SHEET 

AS  AT  DECEMBER  31 


1991 


1990 


ASSETS 

CURRENT  ASSETS 


Cash 

Accounts  receivable 

Prepaid  expenses  and  shelter  supplement 

Due  from  Canada  Mortgage  and 
Housing  Corporation 

Due  from  Province  of  British  Columbia 

LONG-TERM  RECEIVABLES 
DISASTER  LOSS  FUND  (note  2) 

EQUIPMENT  (note  3) 

LIABILITIES  AND  PROVINCE'S  ACCOUNT 

CURRENT  LIABILITIES 


$ 

$  4,744,258 

6,175,847 

3,776,077 

5,166,172 

3,974,975 

3,961,640 

465,700 

11,162,086 

_ 

26,465,745 

12, 961,010 

515,460 

940,979 

1,097,935 

1,019,799 

22,967 

83,467 

$28,102,107 

$15,005,255 

Bank  indebtedness  (note  4) 

Accounts  payable  and  accrued  liabilities 
Tenants'  prepaid  rent 

Due  to  Provincial  Rental  Housing  Corporation 
(note  5) 

Amortization  payable 

DISASTER  LOSS  RESERVE  (note  2) 

PROVINCE'S  ACCOUNT 


$12,710,149 

5,946,052 

449,245 

219,277 

115.521 

19,440,244 

1,097,935 

7,563,928 

$28,102,107 


$ 


5,128,183 

325,385 

890,322 

115,521 

6,459,411 

1,019,799 

7,526,045 

$15,005,255 


C  104 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA 
PROJECTS  AND  PROGRAMS 

MANAGED  BY  BRITISH  COLUMBIA  HOUSING  MANAGEMENT  COMMISSION 

COMBINED  STATEMENT  OF  REVENUE  AND  EXPENDITURES 
AND  PROVINCE'S  ACCOUNT 

YEARS  ENDED  DECEMBER  31 


1991 

1990 

Revenue : 

Tenant  rent 

Sundry 

$  25,369,055 
808, 537 

$  24,315,636 
492,972 

26,177,592 

24,808, 608 

Expenditures : 

Amortization 

Operating 

Shelter  supplement 

Maintenance 

Grants  in  lieu  of  taxes  (note  6) 
Administration 

Modernization  and  improvement 

Provincial  programs 

Working  capital  interest  (note  7) 

14,225,353 
15,111, 858 
54,431,846 
4,932,107 
3,783,898 
5,588,690 
7,303,769 
6,416,027 
1,043,542 

14,225,353 
13,272,710 
38, 922, 827 
4,352,212 
3,952,904 
6,162,888 
8,498,420 
4,161,499 
950,774 

112,837,090 

94,499,587 

Operating  deficit 

86,  659,498 

69,690,979 

Interest  income,  net 

1,170, 979 

1,191,718 

Excess  of  expenditures  over  revenue 

85,488,519 

68,499,261 

Less  Canada  Mortgage  and  Housing 
Corporation  subsidy  share 

50,435,733 

40,607,229 

Net  Provincial  share  of  expenditures 

35,052,786 

27,892,032 

Subsidy  receipts 

35,090,669 

30,301,089 

37,883 

2,409,057 

Province's  account,  beginning  of  year 

7,526, 045 

5,116, 988 

Province's  account,  end  of  year 

$  7,563,928 

$  7,526,045 

See  accompanying  notes. 


PUBLIC  ACCOUNTS  1991/92 


C  105 


PROVINCE  OF  BRITISH  COLUMBIA 
PROJECTS  AND  PROGRAMS 

MANAGED  BY  BRITISH  COLUMBIA  HOUSING  MANAGEMENT  COMMISSION 

COMBINED  STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 

YEARS  ENDED  DECEMBER  31 


1991 

1990 

Cash  (provided  by)  used  for: 

Operating  activities 

Excess  of  expenditures  over  revenue 

$  85,488,519 

$68,499,261 

Deduct  item  not  affecting  cash: 

Depreciation 

(60,500) 

(89,327) 

Changes  in  non-cash  operating  working 
capital : 

Accounts  receivable 

Prepaid  expenses  and  shelter  supplement 

Due  from  Province  of  British  Columbia 

Accounts  payable  and  accrued  liabilities 
Tenants'  prepaid  rent 

Due  to  Provincial  Rental  Housing  Corporation 

2,399,770 

1,191,197 

11,162,086 

(817,869) 

(123,860) 

671,045 

598,461 

1,570,745 

(940,327) 

(519,411) 

(24,402) 

(890,322) 

Cash  applied  to  operations 

99,910,388 

68,204,678 

Investing  activities 

Additions  to  equipment 

49,225 

Cash  applied  to  investing  activities 

_ 

49,225 

Financing  activities 

Subsidy  receipts: 

Province  of  British  Columbia 

Canada  Mortgage  and  Housing  Corporation 
Long-term  receivables 

35,090,669 
46, 939,793 
425,519 

30,301,089 

49,555,055 

(472,770) 

Cash  provided  by  financing  activities 

82,455,981 

79,383,374 

Increase  (decrease)  in  cash  position  during 
the  year 

(17,454,407) 

11, 129, 471 

Cash  position  (bank  indebtedness)  , 
beginning  of  year 

4,744,258 

(6,385,213) 

Cash  position  (bank  indebtedness)  , 
end  of  year 

$(12,710,149) 

$  4,744,258 

See  accompanying  notes. 


C  106 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA 
PROJECTS  AND  PROGRAMS 

MANAGED  BY  BRITISH  COLUMBIA  HOUSING  MANAGEMENT  COMMISSION 

NOTES  TO  COMBINED  FINANCIAL  STATEMENTS 

DECEMBER  31,  1991 


1.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  financial  statement  presentation 

These  statements  combine  six  separate  financial  statements  of 
projects  and  programs  operated  by  the  Province  of  British 
Coliimbia  (Ministry  of  Municipal  Affairs,  Recreation  and 
Housing)  and  each  has  its  own  subsidy  sharing  agreement  and  is 
managed  by  the  British  Columbia  Housing  Management  Commission 
(the  Commission) . 

b)  Amortization 

These  statements  do  not  include  the  capital  cost  of  the  projects, 
however,  amortization  on  capital  costs  is  in  part  payable  to  the 
Provincial  Rental  Housing  Corporation  and  in  part  credited  to  Canada 
Mortgage  and  Housing  Corporation  based  on  schedules  they  provide. 

c)  Tenant  rent  revenue 

Tenant  rent  revenue  represents  rent  charged  to  residents,  and  is 
determined  as  the  lesser  of  market  rent  and  a  percentage  of  each 
resident's  income. 

d)  Equipment 

All  purchases  are  recorded  as  program  operating  expenditures,  except 
for  major  purchases  of  computer  hardware  and  software  which  are 
recorded  at  cost  and  depreciated  on  the  straight  line  basis  over 
five  and  three  years  respectively. 

2.  DISASTER  LOSS  FUND 

This  fund,  financed  by  the  Province  of  British  Columbia  and  Canada 
Mortgage  and  Housing  Corporation,  provides  for  claims  below  the 
deductible  amounts  of  insured  properties  and  for  uninsured  losses. 


1991  1990 


Balance,  beginning  of  year 

$1,019,799 

$  910,185 

Additions 

6,565 

- 

Working  capital  interest 

115,069 

141, 713 

1,141,433 

1,051,898 

Less  claims  expense 

43,498 

32,099 

Balance,  end  of  year 

$1,097,935 

$1,019,799 

PUBLIC  ACCOUNTS  1991/92 


C  107 


NOTES  TO  COMBINED  FINANCIAL  STATEMENTS 
DECEMBER  31,  1991  (CONTD.j 


3 .  EQUIPMENT 

Cost 

Accumulated 

depreciation 

1991 

Net  book 
value 

1990 

Net  book 
value 

Computer  hardware 
Computer  software 

$ 

289,882 

249,700 

$ 

289,882 
226, 733 

$ 

22, 967 

$ 

34,253 

49,214 

Balances,  end  of  year 

$ 

539,582 

$ 

516, 615 

$ 

22,967 

$ 

83,467 

4 .  BANK  INDEBTEDNESS 

Bank  indebtedness  is  by  way  of  an  overdraft  bearing  interest  at  prime 
plus  one  percent  payable  on  demand. 

5.  DUE  TO  PROVINCIAL  RENTAL  HOUSING  CORPORATION 

The  amount  due  to  Provincial  Rental  Housing  Corporation  represents  funds 
advanced  for  the  acquisition  and  development  of  properties  under  the 
social  housing  programs. 

6.  GRANTS  IN  LIEU  OF  TAXES 

The  Commission,  on  behalf  of  the  Province  of  British  Columbia  and  Canada 
Mortgage  and  Housing  Corporation,  pays  each  municipality  a  grant 
equivalent  to  property  taxes  due  for  all  residential  properties  and 
projects  managed. 

7.  WORKING  CAPITAL  INTEREST 

The  Province  of  British  Columbia,  through  its  Wholly  Provincial  Projects 
and  Programs  account,  provides  working  capital  to  the  projects  and 
programs  managed  by  the  Commission,  at  interest  rates  agreed  to  by  the 
participants . 

8 .  LEASE  COMMITMENTS 

The  Commission  has  minimum  rental  obligations  under  operating  leases  for 
office  space  to  be  expensed  over  the  next  five  years  as  follows: 

$  567,000  in  1992,  $  547,000  in  1993,  $  479,000  in  1994,  $  310,000  in 
1995,  and  $  12,000  in  1996. 

9.  RELATED  PARTY  TRANSACTIONS 

In  the  normal  course  of  operations  the  Commission  acquired  goods  and 
services  from  the  Province  of  British  Columbia  and  certain  Crown 
corporations,  under  prevailing  trade  terms. 

10.  COMPARATIVE  INFORMATION 

Certain  1990  comparative  figures  have  been  reclassified  to  conform  with 
the  financial  statement  presentation  adopted  for  1991. 


C  108 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Hydro  and  Power  Authority 


Report  of  the  Auditors 


The  Lieutenant  Governor  in  Council,  Province  of  British  Columbia: 

We  have  audited  the  consolidated  balance  sheets  of  British  Columbia  Hydro  and  Power  Authority  as  at  March  3 1 , 
1992  and  1991  and  the  consolidated  statements  of  operations,  retained  earnings  and  changes  in  financial  position  for  the 
years  then  ended.  These  consolidated  financial  statements  are  the  responsibility  of  British  Columbia  Hydro  and  Power 
Authority’s  managemenL  Our  responsibility  is  to  express  an  opinion  on  these  consolidated  financial  statements  based 
on  our  audits. 

We  conducted  our  audits  in  accordance  with  generally  accepted  auditing  standards.  Those  standards  require  that 
we  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  our  opinion,  these  consolidated  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position 
of  British  Columbia  HydroandPower  Authority  as  at  March  31, 1992  and  1991  and  the  results  ofits  operations  and  the 
changes  in  its  financial  position  for  the  years  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


/ 


Chartered  Accountants 
Vancouver,  British  Columbia 
April  27,  1992 

(except  as  to  Note  12  which  is  as  of  June  25,  1992) 


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Management  Report 


The  financial  statements  of  B.C.  Hydro  have  been  prepared  by  management  in  accordance  with  accounting 
principles  generally  accepted  in  Canada,  consistently  applied  and  appropriate  in  the  circumstances.  Because  a  precise 
determination  of  many  assets  and  liabilities  is  dependent  upon  future  events,  the  preparation  of  periodic  financial 
statements  necessarily  involves  the  use  of  estimates  and  approximations  which  have  been  made  using  careful  judgement. 
The  financial  statements  have,  in  management’s  opinion,  been  properly  prepared  within  reasonable  limits  of  materiality 
and  within  the  framework  of  the  accounting  policies  summarized  in  the  notes  to  the  financial  statements.  The  financial 
statements  have  also  been  reviewed  by  the  Audit  Committee  and  approved  by  the  Board  of  Directors.  Financial 
information  presented  elsewhere  in  this  Annual  Report  is  consistent  with  that  in  the  financial  statements. 

Management  depends  upon  a  system  of  internal  controls  in  order  to  provide  reasonable  assurance,  on  a  cost-effective 
basis,  that  financial  information  is  reliable  and  accurate.  This  system  includes  formal  written  policies  and  procedures, 
the  careful  selection  and  training  of  qualified  personnel,  and  an  organizational  structure  that  provides  for  the  appropriate 
delegation  of  authority  and  segregation  of  responsibilities.  This  system  is  monitored  through  the  performance  of  a 
comprehensive  internal  audit  program.  Our  external  auditors  also  independently  perform  such  tests  of  the  system  of 
internal  controls  as  tliey  consider  necessary  for  tlie  purpose  of  expressing  their  opinion  on  the  financial  statements.  The 
Audit  Committee,  which  is  comprised  of  directors  who  arc  not  employees,  meets  regularly  with  representatives  of  the 
external  auditors,  the  internal  auditors  and  management  in  order  to  satisfy  themselves  that  B.C.  Hydro’s  system  of 
internal  controls  is  functioning  properly. 


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Consolidated  Balance  Sheets 

as  at  March  31 

(in  millions)  1992  1991 

ASSETS 

CAPITAL  ASSETS  (Note  7) 


Capital  assets  in  service 

$ 

11^19 

$ 

11,026 

Less  accumulated  depreciation 

3,129 

2,935 

8,190 

8,091 

Unfinished  construction 

519 

346 

8,709 

8,437 

CURRENT  ASSETS 

Temporary  investments 

131 

132 

Accounts  receivable  and  unbilled  revenues 

261 

337 

Materials  and  supplies 

67 

72 

Prepaid  expenses 

68 

58 

Property  held  for  sale 

13 

15 

540 

614 

DEFERRED  CHARGES  AND  OTHER  ASSETS 

Loans  receivable  (Note  8) 

122 

65 

Demand  Side  Management  programs 

108 

60 

Foreign  currency  translation 

71 

43 

Debt  discount  and  issue  costs 

58 

47 

Deferred  energy  costs 

— 

9 

359 

224 

$ 

9,608 

S 

9,275 

U ABILITIES  AND  EQUITY 

LONG-TCRM  DEBT  (Note  9) 

$ 

6,886 

S 

6,858 

CURRENT  LIABILITIES 

Accounts  payable 

299 

215 

Accrued  interest 

204 

262 

Distributions  payable  to  the  Province 

— 

145 

503 

622 

DEFERRED  CREDITS  AND  OTHER  LIABILITIES 

Future  removal  and  site  restoration  costs 

26 

18 

Rate  stabilization  account  (Note  2) 

181 

— 

Deferred  revenue 

80 

62 

Contributions  arising  from  the  Columbia  River  Treaty 

304 

313 

Contributions  in  aid  of  construction 

434 

405 

1,025 

798 

PREFERRED  FUNDING  (Notes  6  and  12) 

235 

235 

RETAINED  EARNINGS 

959 

762 

$ 

9,608 

s 

9,275 

Certain  1991  figures  have  been  reclassified  to  conform  with  the  presentation  used  for  1992. 


APPROVED  ON  BEHALFOF  THE  BOARD: 


J.^i^Slsen 

lirman  and  Chief  Executive  Officer 


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H  or  bans  S.  Dhaliwal 
Vice  Chairman 


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Consolidated  Statements  of  Operations 

for  the  years  ended  March  31 
(in  millions) 

1992 

1991 

Domestic 

Electricity 

Trade 

Total 

Domestic 

Electricity 

Trade 

Total 

REVENUES  (Note  2) 

Residential 

$  677 

$  — 

$  677 

$  642 

$  — 

$  642 

General 

667 

— 

667 

637 

— 

637 

Transmission 

445 

— 

445 

448 

— 

448 

Other 

113 

170 

283 

87 

95 

182 

1,902 

170 

2,072 

1,814 

95 

1,909 

Cost  of  energy  (Note  3) 

235 

82 

317 

242 

54 

296 

GROSS  MARGIN 

1,667 

88 

1,755 

1,572 

41 

1,613 

EXPENSES 

Operations,  maintenance 

and  administration 

373 

— 

373 

.  339 

— 

339 

Taxes 

108 

— 

108 

99 

— 

99 

Depreciation  and  amortization  (Note  4) 

256 

— 

256 

229 

— 

229 

737 

— 

737 

667 

— 

667 

INCOME  BEFORE  RNANCE  CHARGES 

930 

88 

1,018 

905 

41 

946 

Finance  charges  (Note  5) 

617 

— 

617 

739 

— 

739 

OPERATING  INCOME 

$  313 

$  88 

401 

$  166 

$  41 

207 

Transfers  to  rate  stabilization  account  (Note  2) 

NET  INCOME 

(181) 

$  220 

S  207 

Consolidated  Statements  of  Retained  Earnings 

for  the  years  ended  March  31 
(in  millions) 


1992  1991 


Balance  at  beginning  of  year 

$  762 

$  700 

Net  income 

220 

207 

Less:  Accrual  for  cumulative  obligation 

982 

907 

on  preferred  funds  (Notes  6  and  12) 

23 

— 

Distributions  to  the  Province  (Notes  6  and  12) 

— 

145 

23 

145 

Balance  at  end  of  year 

$  959 

$  762 

Certain  1991  figures  have  been  reclassified  to  conform  with  the  presentation  used  for  1992. 


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Consolidated  Statements  of  Changes  in  Financial  Position 

for  the  years  ended  March  31 
(in  millions) 

1992 

1991 

OPERATING  ACTIVITIES 

Operating  income 

$  401 

$  207 

Depreciation  and  amortization 

266 

238 

Other  non-cash  items 

13 

15 

680 

460 

Working  capital  changes 

(72) 

(125) 

Funds  provided  by  operating  activities 

608 

335 

INVESTING  ACTIVITIES 

Capital  asset  expenditures 

(550) 

(373) 

Contributions  in  aid  of  construction 

51 

52 

Net  proceeds  from  property  sales 

23 

18 

Loans  receivable 

(57) 

(65) 

Demand  Side  Management  programs 

(57) 

(46) 

Funds  used  for  investing  activities 

(590) 

(414) 

FINANCING  ACTIVITIES 

Bonds,  notes  and  debentures 

-  issued 

1,165 

728 

-  retired 

(773) 

(344) 

Revolving  borrowings 

(733) 

268 

Sinking  fund  changes 

93 

(254) 

Repurchased  debt 

4 

(324) 

Term  debenture  repayment 

225 

75 

Funds  (used  for)  provided  by  financing  activities 

(19) 

149 

DISTRIBUTIONS  TO  THE  PROVINCE 

— 

(145) 

DECREASE  IN  FUNDS 

(1) 

(75) 

FUNDS  AT  BEGINNING  OF  YEAR 

132 

207 

FUNDS  AT  END  OF  YEAR 

$  131 

$  132 

Funds  at  beginning  and  end  of  year  consist  of  temporary  investments. 

Certain  1991  figures  have  been  reclassified  to  corf  or m  with  the  presentation  used  for  1992. 

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Notes  to  Consolidated  Financial  Statements 

(tabular  amounts  expressed  in  millions  of  dollars  unless  otherwise  stated) 

Note  1  Significant  Accounting  Policies 

British  Columbia  Hydro  and  Power  Authority  (“B.C.  Hydro”)  is  a  Crown  corporation  of  the  Province  of  British 
Columbia  (the  “Province”).  B.C.  Hydro  is  regulated  by  the  British  Columbia  Utilities  Commission  (the  “Commission”). 
The  accounting  policies  of  B.C.  Hydro  conform  to  accounting  principles  generally  accepted  in  Canada.  A  description 
of  the  significant  accounting  policies  follows.  See  also  Note  2  regarding  Regulation. 

Consolidation 

The  consolidated  financial  statements  include  the  financial  statements  of  B.C.  Hydro  and  all  of  its  subsidiary 
eompanies.  Principal  subsidiaries  of  B.C.  Hydro,  all  of  which  are  wholly-owned,  are  Powcrtech  Labs  Inc.,  Western 
Integrated  Technologies  Inc.,  British  Columbia  Power  Exchange  Corporation,  British  Columbia  Hydro  International 
Limited,  Power  Smart  Inc.  and  Columbia  Estate  Company,  Limited.  B.C.  Hydro  also  has  a  50%  interest  in  Power  Serv 
Pacific  Inc.  which  is  accounted  for  by  the  equity  method. 

Revenues 

Domestic  revenues  represent  sales  of  energy  to  customers  within  the  Province  and  sales  of  firm  energy  to  those 
outside  the  Province  (mainly  Seattleand  PointRoberts,  Washington  and  Hyder,  Alaska)  with  whom  B.C.  Hydro  has  long¬ 
term  commitments. 

Electricity  trade  revenues  are  derived  from  energy  sales  other  than  those  classified  as  domestic. 

Customers  are  billed  on  a  cyclical  basis  for  energy  deliveries  with  unbilled  deliveries  being  accrued  and  included 
in  revenues. 

Pension  Costs 

The  current  service  cost  of  pension  benefits  for  the  year,  determined  on  an  actuarial  basis  in  accordance  with  the 
terms  of  the  pension  plan  agreement,  are  included  in  pension  expense.  Pension  expense  also  includes  amortization  of 
the  cost  of  past  service  benefits  and  plan  enhancements,  experience  gains  and  losses,  and  the  initial  net  pension  surplus 
existing  in  1987  when  the  current  accounting  policy  for  pension  costs  was  introduced.  The  amortization  is  on  a  straight- 
line  basis  over  the  expected  average  remaining  service  life  of  pension  plan  members.  Pension  fund  investments  are 
valued  at  market-related  values. 

Taxes 

Taxes  include  grants  in  lieu  of  property  taxes  and  school  taxes. 

Depreciation 

Depreciation  is  provided  on  all  depreciable  assets  in  service  as  at  the  beginning  of  each  year  based  on  the  average 
service  life  of  the  assets  and  is  generally  computed  using  the  straight-line  method. 

Capital  Assets 

Capital  assets  in  service  consist  principally  of  land,  water  rights,  storage  dams  and  plant  for  the  generation, 
transmission  and  distribution  of  electricity,  and  include  the  cost  of  plant  financed  by  contributions  in  aid  of  construction 
and  contributions  arising  from  the  Columbia  River  Treaty. 

Capital  assets  are  carried  at  cost  which  includes  materials,  direct  labor  and  appropriate  portions  of  engineering, 
administration  and  finance  charges. 

The  costs  of  any  capital  development  studies  which  are  deferred  for  more  than  one  year  are  amortized  on  a  straight- 
line  basis  at  20%  per  annum  during  the  deferral  period.  Capital  projects  which  are  deferred,  but  for  which  there  is  a 
reasonable  probability  of  proceeding,  have  a  provision  made  for  any  reduction  in  the  value  of  project  costs.  The  costs 

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of  capital  development  studies  and  capital  projects  which  are  abandoned  or  subject  to  indefinite  postponement  are  written 
off,  except  where  it  is  management’s  intention  to  recover  tlie  costs  through  future  revenues,  in  which  case  the  costs  arc 
amortized  on  a  straight-line  basis  over  the  expected  period  of  recovery. 

Finance  Charges  Capitalized 

B.C.  Hydro  capitalizes  finance  charges  at  rates  equivalent  to  the  cost  of  borrowing  those  funds  expended  on 
construction  projects  during  each  year  of  construction. 

Temporary  Investments 

Temporary  investments  arc  valued  at  the  lower  of  cost  and  market  value. 

Materials  and  Supplies 

Materials  and  supplies  are  valued  at  average  cost,  less  provisions  for  decline  in  value. 

Property  Held  For  Sale 

Property  held  for  sale  is  valued  at  the  lower  of  cost  and  estimated  net  realizable  value. 

Demand  Side  Management  Programs 

Expenditures  on  Demand  Side  Management  programs,  which  comprise  Power  Smart  programs  and  other  incentive 
programs,  include  materials,  direct  labor  and  applicable  portions  of  administration  charges,  equipment  costs,  program 
advertising  and  incentives. 

Expenditures  on  Power  Smart  programs  for  energy  conservation  are  deferred  and  amortized  on  a  straight-line  basis 
over  seven  years,  except  for  certain  initial  costs  which  are  expensed  as  incurred.  These  initial  costs  are  incurred  to 
determine  the  ultimate  feasibility  of  the  project. 

Incentives  provided  to  assist  in  the  construction  of  facilities  for  the  production  of  energy  by  third  parties  are  deferred 
and  amortized  on  a  straight-line  basis  over  the  period  that  benefits  are  received  from  the  operation  of  the  facilities. 

Foreign  Currency  Translation 

Long-term  debt,  sinking  funds,  current  assets  and  current  liabilities  which  are  denominated  in  a  foreign  currency 
and  are  not  hedged  are  translated  into  Canadian  currency  at  the  rate  of  exchange  prevailing  at  the  balance  sheet  date.  U.  S . 
currency  liabilities  which  arc  hedged  arc  converted  at  the  rate  established  by  the  terms  of  the  hedge  insu-ument. 

Unrealized  gains  and  losses  arising  from  the  translation  of  long-term  debt  and  sinking  funds  arc  deferred  and 
amortized  over  the  remaining  term  of  the  debt.  The  annual  amortization  is  determined  on  a  sum-of-the-years’-digits 
method,  except  that  for  the  last  four  years  the  unamortized  balance  is  written  off  on  a  straight-line  basis.  Foreign  exchange 
gains  and  losses  on  current  assets  and  current  liabilities  are  included  in  income. 

Debt  Discount  and  Issue  Costs 

Discount  and  issue  costs  on  bonds,  notes  and  debentures  arc  amortized  on  a  straight-line  basis  over  the  term  of 
the  respective  debt. 

Deferred  Energy  Costs 

Energy  generation  and  purchase  requirements  arc  determined  based  on  long-term  system  supply  and  demand 
projections.  In  any  year,  water  flow  conditions  and  weather  patterns  may  result  in  the  acquisition  of  energy  to  meet  energy 
requirements.  The  cost  of  purchased  energy  as  well  as  variable  water  rentals  relating  to  energy  sold  through  electricity 
trade  is  recorded  in  the  deferred  cost  of  energy  account  and  charged  to  electricity  trade  based  on  volumes  sold.  Energy 
acquired  for  the  non-integrated  system  is  charged  to  energy  costs  as  incurred. 


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II 


Future  Removal  and  Site  Restoration  Costs 

Future  removal  and  site  rcstoration  costs  are  the  costs  of  future  removal  and  site  restoration,  less  any  residual  or 
salvage  value,  arising  on  the  retirement  of  capital  assets.  Annual  provisions  for  these  costs  arc  charged  to  depreciation 
expense  on  a  straight-line  basis  over  the  remaining  service  lives  of  the  related  capital  assets.  These  costs  are  revised 
periodically  in  accordance  with  changes  in  the  assumptions  and  estimates  underlying  the  calculations,  and  with 
experience  arising  from  the  decommissioning  of  capital  assets. 

Deferred  Revenue 

Deferred  revenue  consists  principally  of  amounts  received  under  the  Skagit  River  Agreements.  These  amounts  are 
deferred  and  included  in  income  on  an  annuity  basis  over  the  energy  delivery  period  ending  in  fiscal  2066. 

Contributions 

Contributions  in  aid  of  construction  arc  amounts  received  from  certain  customers  toward  the  costs  of  the  extension 
of  services.  These  amounts  arc  amortized  over  the  estimated  service  lives  of  the  related  assets  at  an  amount  equal  to  the 
corresponding  annual  provision  for  depreciation.  Contributions  received  in  respect  of  unfinished  construction  are 
amortized  once  the  assets  arc  placed  in  service. 

Contributions  arising  from  the  Columbia  River  Treaty  arc  amortized  over  the  period  ending  in  fiscal  2025,  the 
minimum  term  of  the  Treaty,  at  an  amount  equal  to  the  corresponding  annual  provision  for  depreciation  of  the  related 
assets. 


Note  2  Regulation 

Revenues  include  approved  rate  increases  of  1.5%  effective  April  1,  1990  and  1.5%  effective  April  1,  1991.  In 
addition,  a  rate  increase  averaging  1.64%  was  implemented  effective  January  1,  1992  to  recover  an  increase  in  water 
rental  fees. 

On  April  30, 1990,  theCommission  directed  B.C.  Hydro  to  createa  rate  stabilization  account,  effective  April  1 , 1990, 
derived  from  all  net  income  in  excess  of  an  interest  coverage  ratio  of  1 .3;  1 .  The  interest  coverage  ratio  is  calculated  as 
the  sum  of  domestic  income  before  finance  charges,  net  electricity  trade  income  and  rate  stabilization  account  transfers, 
divided  by  the  sum  of  finance  charges  and  interest  during  construction. 

For  fiscal  1992,  a  transfer  of  $181  million  was  made  to  the  rate  stabilization  account  to  bring  the  ratio  to  1.3:1. 


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Note  3  Cost  of  Energy 


Water  rentals 
Other  energy  costs 
Fuel  for  generation 
Transmission  charges 


_ 1992 _ 

Electricity 

Domestic  Trade  Total 

$  211  $  —  $  211 

12  82  94 

11  —  11 

1  —  1 

$  235  $  82  $  317 


1991 


Domestic 

Electricity 

Trade 

Total 

$  199 

$  — 

$  199 

32 

42 

74 

10 

— 

10 

1 

12 

13 

$  242 

$  54 

$  296 

Water  rentals  are  amounts  levied  by  the  Province  on  the  use  of  water  in  hydroelectric  generation.  Fuel  for  generation 
represents  the  cost  of  diesel  fuel  and  other  energy  acquired  for  those  generation  plants  not  included  in  the  integrated 
system.  Other  energy  costs  include  the  operating  costs  of  the  Burrard  Thermal  generating  plant.  In  addition,  the  cost 
of  purchased  energy  and  the  variable  water  rentals  relating  to  energy  sold  through  electricity  trade,  which  have  been 
recorded  as  deferred  energy  costs,  arc  charged  to  other  energy  costs  for  electricity  trade  based  on  volumes  sold.  Any 
residual  balance  of  deferred  energy  costs  is  amortized  to  domestic  other  energy  costs  over  twelve  months.  Transmission 
charges  arc  paid  to  other  utilities  for  the  use  of  their  transmission  lines. 


Note  4  Depreciation  and  amortization 


1992 

1991 

Depreciation  of  capital  assets  in  service 

$  216 

S  199 

Amortization  of  project  costs 

18 

15 

Provision  for  future  removal  and  site  restoration  costs 

13 

13 

Amortization  of  Demand  Side  Management  programs 

9 

2 

$  256 

$  229 

Note  5  Finance  Charges 

1992 

1991 

Interest  on  bonds,  notes  and  debentures 

$  824 

S  778 

Interest  on  revolving  borrowings 

Amortization  of  deferred  charges: 

106 

185 

Foreign  exchange  gains  and  losses 

2 

— 

Debt  discount  and  issue  costs 

5 

4 

Other 

5 

13 

Less  income  from: 

942 

980 

Interest  on  sinking  funds 

146 

135 

Gains  on  sinking  fund  reinvestments 

59 

3 

Temporary  investments 

55 

57 

Gain  on  extinguishment  of  debt 

31 

4 

Term  debenture 

8 

28 

299 

227 

643 

753 

Less  finance  charges  capitalized 

26 

14 

$  617 

$  739 

The  effective  rate  for  finance  charges  capitalized  to  unfinished  construction  for  fiscal  1992  was  11.0%  (1991  - 

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Note  6  Preferred  Funding  and  Distributions  to  the  Province 


In  fiscal  1989,  the  Province  provided  $235  million  of  term  cumulative  preferred  funding  to  B.C,  Hydro.  The 
preferred  funding  will  be  redeemed  in  full  by  July  31, 1992  (see  Note  12).  The  Province  is  entitled  to  an  annual  payment 
that  approximates  market  borrowing  rates  on  the  preferred  funding.  This  payment,  which  is  cumulative,  may  be  deferred 
in  any  year  by  the  Board  of  Directors. 

Under  an  Order  in  Council  (the  “Order”)  dated  October  5,  1989,  B.C.  Hydro  is  required  to  make  an  annual  total 
distribution  to  the  Province.  This  distribution  is  to  be  confirmed,  on  or  before  June  30  following  each  fiscal  year-end, 
by  the  Board  of  Directors  of  B.C.  Hydro  and  is  to  be  determined,  for  fiscal  years  subsequent  to  the  year  ending  March 
31, 1990,  as  follows: 

(a)  The  distribution  will  be  nil  when  debt  as  a  percentage  of  debt  plus  equity  (“debt/equity  ratio”)  is  greater  than  80%; 

(b)  The  distribution  will  be  equal  to  75%  of  distributable  surplus,  as  defined  under  tlie  Order,  when  the  debt/equity 
ratio  is  between  75%  and  80%; 

(c)  The  distribution  will  be  equal  to  90%  of  distributable  surplus  when  the  debt/equity  ratio  is  less  than  75%. 


Equity  is  defined  in  the  Order  as  deferred  credits,  preferred  funding  and  retained  earnings  less  the  distributions  paid 
or  payable  to  the  Province.  Debt  is  defined  as  revolving  borrowings,  bonds,  notes  and  debentures  net  of  related  sinking 
funds,  temporary  investments,  repurchased  debt  and  a  term  debenture  receivable.  Distributable  surplus  is  defined  as 
consolidated  net  income  adjusted  for  finance  charges  capitalized. 


The  total  distribution,  as  determined  above,  is  to  be  comprised  of  a  payment  on  the  preferred  funding,  to  the  extent 
it  is  declared,  and  a  general  payment,  representing  the  balance,  out  of  distributable  surplus. 


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Note  7  Capital  Assets 


As  at  March  31, 1992  As  ai  March  31,  1991 


Total  Net  Composite  Total  Net  Composite 
Unfinished  Book  Depreciation  Book  Depreciation 
Capital  Assets  in  Service  Construction*  Value  Rate  Value  Rate 


Original  Accumulated  Net  Book 
Cost  Depreciation  Value 


Generation 

$  5,107 

$1,121 

$3,986 

$125 

$4,111 

1.55% 

$4,136 

1.56% 

Transmission 

2,383 

664 

1,719 

24 

1,743 

2.14 

1,755 

2.21 

Transformation 

1,403 

469 

934 

16 

950 

2.88 

936 

2.92 

Distribution 

1,827 

616 

1,211 

121 

1,332 

2.47 

1,217 

2.43 

Buildings,  furniture  and 
equipment 

445 

201 

244 

232 

476 

7.53 

317 

7.65 

Other  properties 

44 

10 

34 

— 

34 

1.14 

21 

2.00 

Service  vehicles 

70 

42 

28 

— 

28 

9.24 

20 

8.04 

Research  and  development 

40 

6 

34 

1 

35 

3.20 

35 

3.13 

Total 

$11,319 

$3,129 

$8,190 

$519 

$8,709 

$8,437 

*  Unfinished  construction  includes  $  44  million  (1991  -  $69  million)  of  unamortized  costs  relating  to  the  Site  C, 
Keenleyside  and  Murphy  Creek  projects. 


Note  8  Loans  Receivable 

B.C.  Hydro  has  provided  an  interest-free  loan  of  5114  million  to  a  customer  to  assist  in  the  construction  of  an 
electrical  generating  facility.  The  date  of  repaymentof  the  loan  is  contingent  upon  the  timing  of  the  advances  made  under 
the  loan  agreement  and  is  expected  to  occur  within  the  next  four  years.  The  loan  is  secured  by  a  charge  on  the  facility 
and  related  land. 

The  cost  to  B.C.  Hydro  of  providing  the  interest-free  loan  has  been  deferred  and  will  be  amortized  on  a  straight-line 
basis  over  a  25  year  period  from  the  commencement  of  the  operation  of  the  facility. 

During  fiscal  1992,  B.C.  Hydro  sold  its  subsidiary  Westcch  Information  Systems  Inc.  (Westech).  As  part  of  the  sale 
B.C.  Hydro  provided  a  loan  to  Westech  of  $8  million.  The  loan  is  secured  and  bears  interest  at  10.5%  per  annum  for  a 
term  of  10  years.  Required  payments  for  the  first  three  years  of  the  term  are  for  interest  only  and  for  the  final  seven  years 
are  for  blended  payments  of  principal  and  interest. 


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C  1 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY 


Note  9  Long-Term  Debt 

As  at  March  31, 1992  As  at  March  31.  1991 


Maturing  in; 

U.S. 

(*%) 

Cdn. 

(*%) 

Total 

U.S. 

(*%) 

Cdn. 

(*%) 

Total 

1992 

$  — 

$  — 

$  — 

$  87 

(5.8) 

S  259 

(7.4) 

$  346 

1993 

248 

(13.0) 

174 

(6.8) 

422 

245 

(13.0) 

174 

(7.2) 

419 

1994 

— 

916 

(11.0) 

916 

— 

916 

(11.0) 

916 

1995 

— 

257 

(9.0) 

257 

— 

324 

(9.0) 

324 

1996 

— 

67 

(8.8) 

67 

— 

87 

(8.4) 

87 

1997 

— 

50 

(8.5) 

50 

— 

— 

— 

1  -  5  years 

248 

(13.0) 

1,464 

(10.0) 

1,712 

332 

(11.0) 

1,760 

(9.6) 

2,092 

6-10  years 

— 

1300 

(9.6) 

1300 

— 

831 

(9.6) 

831 

11-15  years 

399 

(43) 

1365 

(10.7) 

1,964 

181 

(6.3) 

1,501 

(10.4) 

1,682 

16-20  years 

1,183 

(14.0) 

377 

(113) 

1360 

439 

(8.5) 

441 

(12.2) 

880 

21-25  years 

531 

(123) 

— 

531 

1.450 

(14.3) 

— 

1,450 

26  -  30  years 

— 

600 

(10.6) 

600 

— 

300 

(10.6) 

300 

Bonds,  notes  and 

debentures 

2361 

(11.9) 

53O6 

(103) 

7,667 

2.402 

(12.2) 

4,833 

(10.1) 

7,235 

($U.S.  1,985) 

($U.S.  2,055) 

Less: 

Sinking  funds 

413 

942 

1355 

408 

1,040 

1,448 

($U.S.347) 

(SU.S.  352) 

Term  debenture 

— 

— 

— 

— 

225 

225 

Repurchased  debt 

461 

_ 

461 

472 

_ 

472 

($U.S.  395) 

(SU.S.405) 

Net  bonds,  notes 

1,487 

4364 

5,851 

1.522 

3,568 

5,090 

and  debentures 

($U.S.  1,243) 

(SU.S.  1,298) 

Revolving  borrowings 

— 

1,035 

1,035 

— 

1,768 

1,768 

Long-term  debt 

$  1,487 

$5399 

$  6,886 

$  1.522 

$  5,336 

$  6,858 

*  Weighted  average  coupon  rate 

B.C.  Hydro’s  long-term  debt  comprises  bonds,  notes  and  debentures,  almost  all  of  which  have  annual  sinking  fund 
requirements,  and  revolving  borrowings  obtained  under  a  borrowing  agreement  with  the  Province.  Long-term  debt  is 
presented  net  of  sinking  funds,  a  term  debenture  receivable  which  was  committed  to  debt  repayments  and  debt 
repurchased  from  the  market.  Repurchased  debt  includes  related  premiums  or  discounts.  The  March  31, 1992  foreign 
exchange  rate  used  by  B.C.  Hydro  was  84.04  U.S.  cents  per  Canadian  dollar  (1991  -  86.30  U.S.  cents). 


During  the  year  ended  March  31, 1992,  B.C.  Hydro  issued  the  following  bonds  and  debentures: 


Coupon 

Rate% 

Effective 

Rate% 

Series 

Issue  Date 

Maturity  Date 

Principal 

10.60 

10.72 

HM 

September  5, 1991 

September  5, 2020 

$300 

9.85 

10.09 

HO 

May  1,  1991 

May  1, 1998 

50 

9.75 

9.94 

HP 

May  15, 1991 

May  15,2001 

300 

9.00 

9.20 

HQ 

January  9,  1992 

January  9, 2002 

250 

9.50 

9.46 

HR 

February  5, 1992 

January  9, 2012 

50 

Floating 

Floating 

HS 

March  20,  1992 

December  1 , 2006 

215  ($U.S.  180) 

51,165 

Bonds  and  debentures  in  the  principal  amount  of  Cdn.  $259  million  and  U.S.  $75  million  matured  during  fiscal  1992. 
During  fiscal  1992,  virtually  all  of  the  warrants  from  the  Series  HM  debt  issue  were  exercised.  Each  warrant  entitled 
the  holder  to  purchase  $1 ,000  of  new  HM  scries  bonds  anytime  before  September  5, 1 99 1  at  the  same  terms  as  the  original 
issue. 

VTi 

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Guarantee  by  the  Province  of  British  Columbia 

B.C.  Hydro’s  outstanding  debt  is  cither  held  or  guaranteed  as  to  principal,  interest  and  premium,  if  any,  by  the 
Province. 

Sinking  Funds  for  Bonds,  Notes  and  Debentures 

Sinking  funds  are  held  by  the  Trustee,  the  Minister  of  Finance  and  Corporate  Relations  for  the  Province.  Sinking 
fund  income  is  recorded  as  a  reduction  of  finance  charges. 


1992  1991 


Sinking  funds  at  beginning  of  year 

$  1,448 

$  1,194 

Instalments 

78 

156 

Interest  income 

146 

135 

Gain  on  reinvesunents 

59 

3 

Less: 

283 

294 

Debt  repayments 

(152) 

(32) 

Debt  extinguishment  and  cancellation 

(190) 

— 

Surpluses  recovered 

(32) 

— 

Foreign  exchange  adjustments 

(2) 

(8) 

Net  change  in  sinking  funds 

(93) 

254 

Sinking  funds  at  end  of  year 

$  1,355 

$  1,448 

Term  Debenture 

A  term  debenture,  bearing  interest  at  10.75%  per  annum  payable  semi-annually,  was  issued  to  B.C.  Hydro  by  BC 
Gas  Inc.  in  part  settlement  of  the  sale  of  the  Mainland  Gas  Service  in  fiscal  1989.  B.C.  Hydro  entered  into  a  trust 
arrangement  with  the  Province  whereby  the  interest  and  principal  payments  from  BC  Gas  Inc.  were  applied  against 
B.C.  Hydro’s  general  indebtedness  to  the  Province.  During  fiscal  1992,  the  term  debenture  was  repaid  by  BC  Gas  Inc. 

Repurchased  Debt 

Repurchased  debt  comprises  B.C.  Hydro  bonds,  notes  and  debentures  purchased  from  the  market  but  not  cancelled 
or  otherwise  extinguished. 

Revolving  Borrowings 

Funds  obtained  under  a  borrowing  agreement  with  the  Province  will  be  repaid  either  from  the  issue  of  bonds,  notes 
or  debentures  or  from  further  revolving  borrowings  which  will  be  extended  beyond  the  next  fiscal  year.  They  have, 
therefore,  been  classified  as  long-term  debt  The  borrowings  under  the  agreement  are  unsecured,  have  an  authorization 
limit  of  $2.0  billion  and  bear  interest  at  prevailing  money  market  rates.  At  March  3 1 , 1992  these  funds  had  a  weighted 
average  term  to  maturity  of  105  days  (1991  -  212  days)  at  a  weighted  average  cost  of  7.4%  (1991  -  1 1.0%). 


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BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY 


Debt  Management  Program 

During  fiscal  1992,  B.C.  Hydro  placed  sufficient  government  guaranteed  securities  into  an  irrevocable  trust  to 
satisfy  the  scheduled  interestand  bond  principal  repayment  requirements  of  Cdn,  $104  million.  In  addition,  during  1992 
B.C.  Hydro  purchased  and  cancelled  Cdn.  $70  million  of  bonds  and  a  further  Cdn.  $44  million  and  U.S.  $175  million 
were  redeemed  under  the  terms  of  early  call  provisions.  The  accounting  gain  of  $31  million  arising  from  these 
transactions  has  been  included  in  finance  charges. 

During  fiscal  199 1,  B.C.  Hydro  redeemed  U.S.  $  150  million  of  bonds  under  the  terms  of  an  early  call  provision.  The 
accounting  gain  of  $4  million  arising  from  this  transaction  was  included  in  finance  charges. 

Extinguished  Debt 

As  at  March  31, 1992,  a  total  of  Cdn.  $567  million  (1991  -  Cdn.  $486  million)  of  debt  comprising  Cdn.  $264  million 
and  U.S.  $252  million,  together  with  related  securities  used  to  extinguish  the  debt,  has  been  removed  from  B.C.  Hydro’s 
consolidated  balance  sheet  and  is  considered  extinguished  for  financial  reporting  purposes. 

Cash  Requirements 

Total  maturity  payments  and  sinking  fund  instalments  on  bonds,  notes  and  debentures  outstanding  as  at  March  31, 


1992,  by  year  of  payment,  are  disclosed  in  the  following  table.  U.S.  cash  requirements  are  shown  in  U.S.  dollars.  As 
at  March  31, 1992,  there  were  99  Canadian  dollar  (1991  -  108)  and  10  U.S.  dollar  (1991  -  12)  bond,  note  or  debenture 
issues  outstanding. 

Sinking  Funds  Net  Debt  Maturities*  Total 

U.S. 

Cdn. 

U.S.  Cdn. 

U.S. 

Cdn. 

1993 

$  15 

$  48 

$  91  $  102 

$  106 

$  150 

1994 

16 

47 

—  859 

16 

906 

1995 

15 

45 

—  202 

15 

247 

1996 

16 

44 

—  4 

16 

48 

1997 

16 

43 

—  48 

16 

91 

1993  -  1997 

78 

227 

91  1,215 

169 

1,442 

1998  -  2002 

78 

171 

—  281 

78 

452 

2003  -  2007 

74 

60 

23  — 

97 

60 

2008-2012 

62 

22 

168  86 

230 

108 

2013-2017 

9 

15 

114  — 

123 

15 

2018-2022 

— 

8 

—  211 

— 

219 

$301 

$503 

$396 

$  1,793 

$  697 

$  2,296 

*  Net  debt  maturities  are  determined  after  deducting  sinking  funds,  including  income  thereon,  estimated 
to  be  available  at  maturity.  The  estimated  sinking  fund  income  to  maturity  is  based  on  assumed  earnings 
of  9%  on  existing  and  future  Canadian  dollar  sinking  fund  investments  and  7.5%  for  U.S.  dollarsinking  fund 
investments. 

None  of  the  above  cash  requirements  are  considered  current  as  at  March  3 1 , 1992  as  management  intends  to  finance 
the  payments  from  the  issue  of  bonds,  notes  or  debentures  or  from  further  revolving  borrowings  which  will  be  extended 
beyond  the  next  fiscal  year. 


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Hedged  U.S.  Dollar  Debt 

As  at  March  31,  1992,  U.S.  $312  million  (1991  -  U.S.  $312  million)  of  debt  was  hedged  with  forward  foreign 
exchange  contracts  and  currency  swaps.  A  further  U.S.  $681  million  (1991  -  U.S.  $703  million)  of  debt  was  hedged 
by  the  holding  of  U.S.  dollar  denominated  securities  in  sinking  funds  and  repurchased  debt  As  a  result  of  these 
transactions,  as  at  March  31,  1992  B.C.  Hydro  had  a  net  foreign  currency  exposure  in  U.S.  dollar  debt  of  U.S.  $992 
million  (1991  -  U.S.  $1,040  million). 

Redemption  Provisions 

Certain  B.C.  Hydro  debt  held  by  the  Canada  Pension  Plan  Investment  Fund  and  by  the  Minister  of  Finance  and 
Corporate  Relations  for  the  Province  contains  provisions  allowing  holders  to  redeem  the  debt  prior  to  maturity,  in  whole 
or  in  part,  subject  to  certain  restrictions.  At  March  31, 1992,  this  debt  amounted  to  $529  million  (1991  -  $747  million) 
net  of  related  sinking  funds. 


Note  10  Pension  Plan 

Employees  of  B.C.  Hydro  contribute  to  a  jointly-funded  pension  plan  which  provides  a  defined  benefit  pension  based 
on  years  of  membership  service  and  highest  five-year  average  pensionable  earnings.  A  portion  of  the  required 
conuibutions  under  the  plan  is  applied  to  provide  for  annual  cost-of-living  increases  (indexing)  to  pension  recipients. 
B.C.  Hydro  contributes  amounts  as  prescribed  by  the  actuary  in  respect  of  basic  contributions  and  matches  the 
employees’  indexing  conuibutions  such  that  the  funding  matches  the  current  service  cost  of  the  pension  plan. 

Annual  actuarial  valuations  are  obtained  to  estimate  the  present  value  of  the  plan  liability  for  pension  benefits 
accrued  to  the  date  of  the  valuation.  These  actuarial  liabilities  are  compared  with  the  market-related  value  of  the  pension 
plan  assets  to  determine  whether  a  net  pension  surplus  or  deficit  exists.  Based  upon  an  extrapolation  from  actuarial 
valuation  results  as  at  December  3 1 , 1990,  the  estimated  present  value  of  accrued  pension  benefits  was  $924  million  as 
at  March  31 , 1992  and  the  pension  plan  assets  available  for  these  benefits  at  that  date  amounted  to  $956  million,  resulting 
in  a  surplus  of  $32  million. 


Note  11  Commitments 

B.C.  Hydro  has  entered  into  contracts  to  purchase  energy  from  Independent  Power  Producers  for  up  to  4  per 
cent  of  its  annual  energy  requirements.  The  approximate  minimum  obligations  to  purchase  energy  under  these  contracts 
have  a  total  net  present  value  of  $903  million  with  actual  payments  as  follows:  1993  -  $16, 1994  -  $107, 1995  -  $1 13, 
1996 -$114,  1997 -$116,  and  1998  to  2016  -  $2,300  million. 


Note  12  Subsequent  Event 

Under  an  Order  in  Council  (the  "OIC")  dated  June  25,  1992,  a  previous  Order  (referred  to  in  Note  6)  dated 
October  5, 1989  was  amended  such  that  B.C.  Hydro  was  not  required  to  make  a  payment  to  the  Province  for  the  year 
ended  March  31,  1992  in  order  to  allow  B.C.  Hydro  sufficient  Retained  Earnings  to  redeem  in  full  the  Preferred  Funding 
by  July  31, 1992.  (see  Note  6) 


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C  123 


British  Columbia  Liquor  Distribution  Branch 

BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
FINANCIAL  STATEMENTS  FOR  THE  YEAR  ENDED  MARCH  31,  1992 


MANAGEMENT’S  COMMENTS 


The  accompanying  unaudited  balance  sheet  of  the  British  Columbia 
Liquor  Distribution  Branch  as  at  March  31,  1992,  and  the  unaudited 
statements  of  income,  changes  in  Province  of  British  Columbia  advance 
and  changes  in  cash  resources  for  the  year  ended  March  31,  1992 
were  prepared  by  the  Liquor  Distribution  Branch.  These  financial 
statements  have  been  prepared  in  accordance  with  generally  accepted 
accounting  principles.  Appropriate  internal  controls  are  in  place  to 
ensure  that  transactions  are  appropriately  authorized  and  reported. 

The  British  Columbia  Liquor  Distribution  Branch  is  a  government 
enterprise  for  the  purpose  of  government  reporting  and  therefore  the 
Branch’s  financial  statements  are  included  in  the  Public  Accounts  of  the 
Province  of  British  Columbia.  The  accounts  and  records  of  the  Branch 
were  reviewed  by  the  Office  of  the  Auditor  General  of  British  Columbia 
in  conjunction  with  their  annual  audit  of  the  Province  of  British 
Columbia’s  Consolidated  Revenue  Fund  Financial  Statements. 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
BALANCE  SHEET 
MARCH  31,  1992 
(Unaudited) 

ASSETS 


1992 

in  thousands 
of  dollars 


1991 

in  thousands 
of  dollars 


CURRENT  ASSETS 


Accounts  receivable 

Inventories 

Prepaid  expenses 

$851 

44,098 

916 

$1,658 

47,488 

1,288 

45,865 

50,434 

PROVINCE  OF  BRITISH  COLUMBIA 

Advance 

2,273 

1,653 

FIXED  ASSETS,  at  cost  (note  3) 

47,018 

45,061 

Less  accumulated  depreciation 

39,793 

36,879 

7,225 

8,182 

$55,363 

$60,269 

LIABILITIES 

CURRENT  LIABILITIES 

Bank  indebtedness 

Accounts  payable  and  accrued  liabilities 

$2,173 

53,190 

$11,222 

49,047 

$55,363 

$60,269 

Commitments  and  Contingent  Items  (notes  5  &  6) 

See  accompanying  notes  to  the  financial  statements. 


Chief  Financial  Officer 


PUBLIC  ACCOUNTS  1991/92 


C  125 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
STATEMENT  OF  INCOME 
FOR  THE  YEAR  ENDED  MARCH  31,1992 
(Unaudited) 


1992 

in  Uiousands 
of  dollars 

1991 

in  tiiousands 

of  dollars 

SALES 

$1,301,574 

$1,329,411 

LESS  SALES  DISCOUNTS 

26,556 

25,620 

1,275,018 

1,303,791 

COST  OF  MERCHANDISE  SOLD 

676,321 

720,825 

GROSS  MARGIN 

598,697 

582,966 

OPERATING  EXPENSES  (Schedule) 

147,315 

142,629 

451,382 

440,337 

OTHER  INCOME 

4,165 

4,962 

NET  INCOME 

$455,547 

$445,299 

BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
STATEMENT  OF  CHANGES  IN  PROVINCE  OF  BRITISH  COLUMBIA 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 

ADVANCE 

1992 

in  Uiousands 
of  dollars 

1991 

in  thousands 
of  dollars 

Balance  at  beginning  of  year 

($1,653) 

$16,970 

Net  Income 

455,547 

445,299 

Cash  payments  to  Provincial  Treasury 

(456,167) 

(463,922) 

BALANCE  AT  END  OF  YEAR 

($2,273) 

($1,653) 

See  accompanying  notes  to  the  financial  statements. 


C  126 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
STATEMENT  OF  CHANGES  IN  CASH  RESOURCES 
FOR  THE  YEAR  ENDED  MARCH  31,1992 
(Unaudited) 


1992 

in  thousands 
of  dollars 

1991  „ 

in  thousands' 
of  dollars 

OPERATING  ACTIVITIES 

Cash  from  Operations: 

Net  Income 

Amounts  charged  against  income  not 
requiring  an  outlay  of  cash: 

Depreciation 

Gain  on  disposal  of  fixed  assets 

Decrease  In  accounts  receivable 

Decrease  in  inventory 

Decrease  (Increase)  in  prepaid  expenses 

Increase  (decrease)  in  accounts  payable 

$455,547 

2,914 

(110) 

807 

3,390 

372 

4,143 

$445,299 

2,903 

(191) 

352 

8,129 

(742) 

(6,076) 

467,063 

449,674 

FINANCING  ACTIVITIES: 

Cash  payments  to  Provincial  Treasury 

(456,167) 

(463,922) 

10,896 

(14,248) 

INVESTING  ACTIVITIES: 

Acquisition  of  fixed  assets 

Proceeds  on  disposal  of  fixed  assets 

(1,957) 

110 

(2,901) 

191 

(1,847) 

(2,710) 

INCREASE  (DECREASE)  IN  CASH 

9,049 

(16,958) 

(BANK  INDEBTEDNESS)  CASH  AT  BEGINNING  OF  YEAR 

(11,222) 

5,736 

BANK  INDEBTEDNESS  AT  END  OF  YEAR 

$2,173 

$11,222 

See  accompanying  notes  to  the  financial  statements. 


A 


PUBLIC  ACCOUNTS  1991/92 


C  127 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 
SCHEDULE  OF  OPERATING  EXPENSES 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 
(Unaudited) 


Warehouse 

,  in  thousands 

of  dollars 

Retail 

Stores 
in  thousands 
of  dollars 

Administration 
in  thousands 
of  dollars 

1992 

Total 

in  thousands 
of  dollars 

1991 

Total 

in  thousands 
of  dollars 

1  Salaries  and  Wages 

$6,616 

$59,498 

$16,554 

$82,668 

$81,037 

Superannuation 

492 

4,492 

1,235 

6,219 

5,802 

Unemployment  Insurance 

210 

1,913 

526 

2,649 

2,120 

Dental  and  Extended  Health 

119 

1,084 

298 

1,501 

1,475 

1  Canada  Pension 

121 

1,105 

304 

1,530 

1,468 

1  B,C.  Medical 

111 

1,018 

280 

1,409 

1,248 

Workers'  Compensation  Board 

97 

890 

245 

1,232 

1,231 

1  Long  Term  Disability 

49 

452 

124 

625 

601 

Group  Insurance 

26 

241 

66 

333 

317 

Staff  Benefits 

2 

65 

266 

333 

78 

Total  salaries,  wages  and  benefits 

7,843 

70,758 

19,898 

98,499 

95,377 

Rents 

305 

12,094 

5,540 

17,939 

15,729 

Data  Processing 

0 

0 

9,149 

9,149 

9,238 

I  Freight  to  Stores 

0 

3,536 

0 

3,536 

3,999 

Sundries 

376 

1,387 

1,151 

2,914 

2,627 

i  Depreciation 

112 

1,372 

1,239 

2,723 

2,903 

'Repairs  and  Maintenance 

122 

827 

1,772 

2,721 

2,793 

Light,  Water  and  Fuel 

116 

1,808 

198 

2,122 

2,261 

Telephone  and  Telegraph 

34 

714 

759 

1.507 

1,179 

Janitorial  and  scavenging 

27 

1,198 

267 

1,492 

1,359 

Printing,  Stationery  and  Postage 

2 

58 

1,189 

1,249 

1,894 

Travelling 

10 

67 

985 

1,062 

1,163 

Store  Wrapping  Supplies 

0 

845 

0 

845 

1,257 

iBank  charges 

0 

0 

808 

808 

0 

Armoured  Car  Service 

0 

0 

495 

495 

549 

'Warehouse  Equipment  Costs 

254 

0 

0 

254 

301 

$9,201 

$94,664 

$43,450 

$147,315 

$142,629 

See  accompanying  notes  to  the  financial  statements. 


C  128 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 


NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 
(Unaudited) 


1.  STATUS  OF  THE  BRANCH 

The  Liquor  Distribution  Branch  obtains  its  authority  for  operation  from  the  Liquor  Distribution  Act  which 
is  administered  by  the  Ministry  of  Attorney  General.  As  stated  in  Section  2  of  this  Act,  the  Liquor 
Distribution  Branch  has  the  exclusive  right  to  purchase  liquor  for  resale  and  reuse  in  the  Province  in 
accordance  with  the  provisions  of  the  Importation  of  Intoxicating  Liquors  Act  (Canada). 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 

As  prescribed  by  Section  18  of  the  Liquor  Distribution  Act,  the  financial  statements  of  the  Liquor 
Distribution  Branch  are  prepared  in  accordance  with  generally  accepted  accounting  principles. 

Significant  accounting  policies  are  as  follows: 

INVENTORIES  are  valued  as  follows: 

a)  For  domestic  products,  duty  paid  cost,  which  includes  suppliers'  invoiced  cost,  freight,  duties  and 
taxes 

b)  For  import  products,  in-bond  cost,  which  includes  suppliers'  invoiced  cost,  and  applicable  freight. 
Federal  duties  and  taxes  are  payable  when  goods  are  released  from  bond  — see  Note  5, 
Commitments 

c)  Any  reductions  in  market  value  below  cost  are  recovered  from  suppliers. 

FIXED  ASSETS 

Fixed  assets  are  depreciated  on  a  straight  line  basis  as  follows: 

Buildings  -  7.5%  per  annum 

Leasehold  Improvements  -  a  minimum  of  10%  per  annum  or  a  rate  sufficient  to  write  off  the  cost 

over  the  remaining  life  of  the  respective  lease. 

Furniture,  Fixtures, 

Vehicles  and  Equipment  -  25%  per  annum. 


PUBLIC  ACCOUNTS  1991/92 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 


NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 
(Unaudited) 


c 


3.  FIXED  ASSETS 


1992  ($000) 

1991  ($000) 

Accumulated 

Net  book 

Net  book 

Cost 

Depreciation 

Value 

Value 

Land 

$  1,116 

$ 

$1,116 

1,116 

Buildings 

Leasehold 

11,605 

9,989 

1,616 

2,040 

Improvements 

Furniture,  Fixtures 

4,759 

4,575 

184 

379 

Vehicles  &  Equipment 

29,538 

25,229 

4,309 

4,647 

$47,018 

$39,793 

$7,225 

$8,182 

4.  SALES 

Total  sales  as  reported  include  sales  to  retail  customers,  licensed  establishments,  licensee  retail  stores 
and  agency  stores  through  the  Liquor  Distribution  Branch's  stores.  These  figures  do  not  include 
subsequent  resale  by  licensed  establishments,  licensee  retail  stores  and  agency  stores. 


5.  COMMITMENTS 

a)  Federal  Taxes 

The  Liquor  Distribution  Branch  maintains  inventory  in  its  bonded  warehouse  for  which  federal  taxes 
have  neither  been  paid  nor  recorded  in  these  financial  statements.  As  at  March  31 ,  1992,  the  future 
liability  for  these  taxes  approximates  $3.7  million  (1 991  -  $5.9  million).  These  taxes  are  payable  when 
inventory  is  drawn  from  the  Liquor  Distribution  Branch's  bonded  warehouse. 

b)  Leased  Premises  and  Equipment 

Future  commitments  for  leased  premises  and  equipment  for  the  next  five  years  are  as  follows: 


Year  ended  March  31,  1993  $12.1  million 

1994  11.1 

1995  10.0 

1996  9.6 

1997  8.0 

Subsequent  years  19.1 


129 


TOTAL 


$69.9  million 


C  130 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 

NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 
(Unaudited) 

6.  CONTINGENT  ITEMS 

(a)  Agents'  Stocking  Program 

The  Liquor  Distribution  Branch  has  authorized  suppliers'  agents  to  import  and  warehouse  liquor  tor 
subsequent  purchase  by  the  Branch.  Under  this  program,  the  Liquor  Distribution  Branch  has  a 
contractual  obligation  to  purchase  all  inventories  held  by  the  agent  should  the  agent  opt  out  of  the 
program.  As  at  March  31,  1992,  the  value  of  agents'  inventories  totalled  approximately  $31.3  million. 
(1991  -  $35.2  million)  and  the  future  liability  for  related  federal  excise  taxes  is  $10.3  million  (1991  - 
$1 1 .5  million). 

(b)  Airline  Claims 

The  Liquor  Distribution  Branch  and  Canadian  Airlines  International  Ltd.  and  its  predecessor 
companies  are  involved  in  a  Supreme  Court  of  British  Columbia  action  for  the  return  of  all 
Provincial  mark-up  amounts  paid.  This  action  alleges  that  all  monies  paid  to  date  to  the  Liquor 
Distribution  Branch  were  "paid  under  a  unilateral  mistake  of  law".  Air  Canada  has  also 
commenced  a  similar  action  against  the  Liquor  Distribution  Branch  (see  note  8  -  Subsequent 
Events).  The  Liquor  Distribution  Branch  has  defended  these  actions  and  do  not  believe  they 
have  merit.  The  liability  of  the  Liquor  Distribution  Branch,  if  any,  under  these  two  claims  is  not 
determinable  with  any  degree  of  accuracy  at  this  time. 

7.  SUPERANNUATION  FUND 

The  Liquor  Distribution  Branch  is  an  approved  employer  under  the  Pension  (Public  Service)  Act.  Eligible 
employees  of  the  Liquor  Distribution  Branch  contribute  to  the  Public  Service  Superannuation  Fund  at  a 
rate  of  5.5%  of  pensionable  salary  up  to  the  year's  maximum  pensionable  earnings  as  defined  in  the 
Canada  Pension  Plan  and  at  a  rate  of  7%  of  pensionable  salary  in  excess  of  the  year's  maximum 
pensionable  earnings.  An  additional  1 .25%  of  pensionable  salary  is  deducted  and  used  to  finance  the 
payment  of  inflation  adjustment  supplements.  In  addition  to  matching  the  employees'  contributions,  the 
Liquor  Distribution  Branch  contributes  an  additional  2.5%  of  pensionable  salary  for  basic  pension  benefits. 

An  actuarial  valuation  of  the  assets  and  liabilities  of  the  Public  Service  Superannuation  Fund  was  made 
at  March  31 , 1 990.  Details  of  the  unfunded  liability  of  $438  million  In  respect  of  the  basic  pension  benefits 
are  described  in  the  Public  Service  Superannuation  Fund  financial  statements  included  in  the  Public 
Accounts.  While  the  portion  of  the  unfunded  liability  attributable  to  the  Liquor  Distribution  Branch  was  not 
determined  by  the  Actuary,  participation  by  employees  of  this  branch  constitutes  approximately  1 0%  of  the 
Fund.  No  provision  has  been  made  in  the  accounts  of  the  Liquor  Distribution  Branch  for  any  unfunded 
liability.  Contributions  are  considered  as  a  current  year  expense  in  the  year  incurred. 

8.  SUBSEQUENT  EVENTS 

(a)  In  May  1992,  Air  Canada  commenced  a  Supreme  Court  action  for  the  recovery  of  Provincial  mark-up 
amounts  paid.  This  action  is  similar  to  that  launched  by  Canadian  Airlines  International  Ltd  —  see 
note  6,  Contingent  Items. 

(b)  A  recent  agreement  between  Canada  and  the  United  States  to  implement  a  General  Agreement  for 
Tariffs  and  Trade  (GATT)  panel  decision  requires  the  Liquor  Distribution  Branch  to  lower  markups  on 
imported  beer  in  June  1992  and  to  allow  for  the  private  delivery  of  imported  beer  in  September  1993. 
The  financial  impact  of  these  changes  is  not  determinable  at  this  time. 


PUBLIC  ACCOUNTS  1991/92 


C  131 


BRITISH  COLUMBIA  LIQUOR  DISTRIBUTION  BRANCH 


NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 
(Unaudited) 


9.  RELATED  PARTY  TRANSACTIONS 

The  Liquor  Distribution  Branch  has  been  mandated  to  use  B.C.  Systems  Corporation  tor  its  mainframe 
data  processing  and  systems  maintenance,  and  for  most  of  it's  telephone  communications  services.  In 
1992,  B.C.  Systems  Corporation  was  paid  $9,490,512  for  these  services  (1991  -  $8,352,553) 


10.  COMPARATIVE  FIGURES 

Certain  of  the  prior  year's  figures  have  been  reclassified  to  conform  with  the  presentation  adopted  for  the 
current  year. 


C  132 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Lottery  Corporation 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


500  -  275  Lansdowne  Street 
Kamloops,  British  Columbia 
Canada  V2C  1X8 


Telephone  (604)  372-5581 
Telefax  (604)  828-2928 


AUDITORS'  REPORT 


To  the  Directors  of 

British  Columbia  Lottery  Corporation 

We  have  audited  the  consolidated  balance  sheet  of  British  Columbia  Lottery  Corporation  as  at  March 
31,  1992  and  the  consolidated  statements  of  income,  changes  in  amounts  due  to  the  Province  of 
British  Columbia,  and  changes  in  financial  position  for  the  year  then  ended.  These  financial 
statements  are  the  responsibility  of  the  Corporation’s  management.  Our  responsibility  is  to  express 
an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position 
of  the  Corporation  as  at  March  31, 1992  and  the  results  of  its  operations  and  the  changes  in  amounts 
due  to  the  Province  of  British  Columbia  and  the  changes  in  its  financial  position  for  the  year  then 
ended  In  accordance  with  generally  accepted  accounting  principles.  As  required  by  the  Company 
Act,  (British  Columbia),  we  report  that,  in  our  opinion,  these  principles  have  been  applied  on  a  basis 
consistent  with  that  of  the  preceding  year. 


Chartered  Accountants 


Kamloops,  Canada 
May  26, 1992 


■■■ 


Member  Firm  ol 

Klynveld  Peal  Marwick  Goerdeler 


PUBLIC  ACCOUNTS  1991/92 


C  133 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Consolidated  Balance  Sheet 

March  31 , 1992,  with  comparative  figures  for  1991 

(in  thousands  of  dollars) 


1992 

1991 

Assets 

Cash: 

Prize  funds 

$ 

36,857 

$ 

31,791 

Other 

10,973 

15,187 

Receivables  (note  3) 

13,731 

12,063 

Prepaid  expenses 

3,665 

2,940 

Fixed  assets  (note  4) 

8,215 

7,853 

$ 

73,441 

$ 

69,834 

Liabilities 

Prizes  payable 

$ 

36,857 

$ 

31,791 

Payable  to  Interprovincial  Lottery  Corporation 

5,004 

7,202 

Accounts  payable  and  accrued  liabilities 

5,826 

5,829 

Deferred  revenue 

- 

3,715 

Long-term  debt  (note  5) 

5,204 

5,245 

Due  to  Government  of  Canada 

- 

1,430 

Due  to  Province  of  British  Columbia 

20,550 

14,622 

Share  capital  (note  6) 

-* 

$ 

73,441 

$ 

69,834 

See  accompanying  notes  to  consolidated  financial  statements. 


Approved: 


Director 


Director 


C  134 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Consolidated  Statement  of  Income 

Year  ended  March  31 , 1992,  with  comparative  figures  for  1991 
(in  thousands  of  dollars) 


1991/92 

1990/91 

Sales  (note  7) 

$ 

676,41 1 

$ 

603,297 

Direct  expenses: 

Prizes 

Retailer  commissions 

Ticket  printing  and  bingo  paper 

Payments  to  Community  Group  Licensees  (note  8) 

337.791 

37,627 

13,883 

8,562 

293,967 

33,777 

14,988 

2,178 

397,863 

344,910 

Sales  less  direct  expenses 

278,548 

258,387 

Operating  expenses: 

Data  processing  and  network 

Depreciation 

Advertising,  draws  and  promotions 

Sales 

Administration 

Goods  and  services  tax 

Less:  Interest  and  other  income 

13,099 

4,071 

14,711 

5,207 

13,922 

8,515 

(5,820) 

1 1 ,708 
2,829 
14,851 
4,725 
12,586 
2,213 
(7,959) 

53,705 

40,953 

Net  income 

$ 

224,843 

$ 

217,434 

Allocation  of  net  Income: 

Province  of  British  Columbia  $ 

Government  of  Canada  (note  9) 

Paid  on  behalf  of  the  Province  of  British  Columbia 

219.032 

5,811 

$ 

205,308 

5,520 

6,606 

$ 

224,843 

$ 

217,434 

See  accompanying  notes  to  consolidated  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  135 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Consolidated  Statement  of  Changes  in  Amounts  Due  to  Province  of  British  Columbia 
Year  ended  March  31 , 1992,  with  comparative  figures  for  1991 
(in  thousands  of  dollars) 


1991/92 

1990/91 

Balance,  beginning  of  year 

Net  income 

$ 

14,622 

224,843 

$ 

13,988 

217,434 

239,465 

231,422 

Payments  to  Province  of  British  Columbia 

Payments  to  Government  of  Canada 

213,104 

5,811 

211,280 

5,520 

218,915 

216,800 

Due  to  Province  of  British  Columbia 

$ 

20,550 

$ 

14,622 

See  accompanying  notes  to  consolidated  financial  statements. 


C  136 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Consolidated  Statement  of  Changes  in  Financial  Position 
Year  ended  March  31 , 1992,  with  comparative  figures  for  1991 
(in  thousands  of  dollars) 


1991/92 

1990/91 

Cash  provided  by  (used  in): 

Operations: 

Net  income 

Depreciation,  which  does  not  Involve  cash 

$ 

224,843 

4,071 

$ 

217.434 

2,829 

Change  in  non-cash  operating  items: 

Receivables 

Prepaid  expenses 

Prizes  payable 

Payable  to  Interprovincial  Lottery  Corporation 
Accounts  payable  and  accrued  liabilities 

Deferred  revenue 

Due  to  Government  of  Canada 

228,914 

(1,668) 

(725) 

5,066 

(2,198) 

(3) 

(3,715) 

(1,430) 

220,263 

182 

(149) 

4,074 

946 

742 

440 

1,430 

224,241 

227,928 

Financing: 

Payments  to  Province  of  British  Columbia 

Payments  to  Government  of  Canada 

Reduction  of  long-term  debt 

(213,104) 

(5,811) 

(41) 

(211,280) 

(5,520) 

(37) 

(218,956) 

(216,837) 

Investments: 

Additions  to  fixed  assets 

(4,433) 

(2,797) 

(4.433) 

(2,797) 

Increase  in  cash 

852 

8,294 

Cash,  beginning  of  year 

46,978 

38,684 

Cash,  end  of  year 

$ 

47,830 

$ 

46,978 

See  accompanying  notes  to  consolidated  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  137 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements 
Year  ended  March  31 , 1992 


1.  Nature  of  the  Corporation: 

The  British  Columbia  Lottery  Corporation  was  incorporated  pursuant  to  the  Company  Act  of 
British  Columbia  on  October  25, 1984. 

The  Province  has  designated  the  Corporation  as  the  authority  to  conduct  and  manage  lottery 
games  within  British  Columbia  and  to  co-operate  in  the  conduct  and  marketing  of  national  and 
regional  games  with  other  Provinces  of  Canada. 

The  Daily,  Instant,  BC/49,  BC  KENO,  EXTRA,  Sports  Action  and  Breakopen  games  are 
conducted  solely  by  the  Corporation  in  the  Province  of  British  Columbia.  In  addition,  the 
Corporation  is  the  sole  distributor  of  Bingo  paper  in  the  Province  of  British  Columbia. 

The  Corporation  is  the  regional  marketing  organization  for  the  PROVINCIAL,  SPECIAL  EVENT 
GAME,  and  LOTTO  6/49  games  in  British  Columbia.  These  games  are  joint  undertakings  by  all 
provinces  acting  through  the  Interprovincial  Lottery  Corporation.  The  Interprovincial  Lottery 
Corporation  is  incorporated  under  the  Canada  Business  Corporations  Act,  and  its  shares  are  held 
by  Her  Majesty  The  Queen  in  right  of  the  respective  provinces. 

2.  Significant  accounting  poiicies: 

The  financial  statements  of  the  Corporation  have  been  prepared  in  accordance  with  generally 
accepted  accounting  principles. 

(a)  Consolidation: 

The  consolidated  financial  statements  include  B.C.  Lottotech  International  Inc.,  a  wholly 
owned  subsidiary  of  the  British  Columbia  Lottery  Corporation. 

(b)  Fixed  assets: 

The  Corporation's  policy  on  capital  purchases  is  that  any  major  purchase  which  has  a  future 
useful  life  beyond  the  current  year  and  which  will  materially  affect  income  in  the  year 
purchased,  will  be  capitalized.  These  purchases  include  the  cost  of  Kamloops  office  building, 
leasehold  improvements,  furniture  and  equipment  for  the  Corporation’s  offices  in  Kamloops, 
Richmond  and  Victoria,  major  computer  equipment  purchases,  all  on-line  gaming  terminals, 
all  components  of  the  Corporation's  sign  and  fixture  program  for  placement  at  the  on-line 
game  retailers’  locations  and  corporate  owned  kiosks. 


C  138 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements,  page  2 
Year  ended  March  31 , 1992 


2.  Significant  accounting  policies  (continued): 

(b)  Capital  purchases  (continued): 

The  Corporation's  capital  assets  are  recorded  at  their  original  cost  and  are  depreciated  on  a 
straight-line  basis  according  to  their  estimated  useful  lives,  as  follows: 


Asset 

Rate 

Kamloops  office  building 

5  years 

Leasehold  improvements 

5  years 

Furniture  and  equipment 

5  years 

Computer  equipment 

3  years 

On-line  gaming  terminals 

3  years 

Signs  and  fixtures: 

Computer 

3  years 

Non-computer 

5  years 

(c)  Free  tickets: 

Sales  are  reduced  by  the  retail  value  of  free  tickets  redeemed  by  the  retailers. 

(d)  Revenue  recognition: 

Revenue  and  expenses  relating  to  draws  held  during  the  year  ended  March  31,  1992  are 
included  in  the  statement  of  income  on  an  accrual  basis.  Receipts  from  the  sale  of  lottery 
tickets  related  to  draws  held  subsequent  to  March  31,  1992  are  included  in  the  statement  of 
income  in  the  period  the  ticket  is  sold.  The  associated  selling  costs  and  prize  expenses  are 
also  included  in  the  statement  of  income  in  the  period  the  ticket  is  sold. 

(e)  Prize  expenses: 

The  Corporation  provides  for  prize  expenses  at  approximately  50%  of  sales  for  all  British 
Columbia  games  to  fund  expected  prize  payouts. 

All  unclaimed  prizes  from  British  Columbia  lottery  games  are  retained  in  a  prize  fund  for  one 
year  from  the  announced  date  of  the  draw.  Unclaimed  prizes  remaining  after  the  one  year 
claiming  period  are  used  for  bonus  prizes  and  bonus  draw  promotions  in  subsequent  draws. 

Prize  expenses  for  Interprovincial  Lottery  Corporation  games  are  British  Columbia's 
proportionate  share  of  prizes  funded  which  is  based  on  the  number  of  tickets  sold. 

(f)  Change  in  accounting  policy: 

During  the  year,  the  Corporation  changed  its  revenue  recognition  policy  from  deferring 
revenue  and  associated  costs  for  sales  which  relate  to  draws  subsequent  to  the  year  end  to 
recording  revenue  for  the  sale  of  tickets  at  the  time  the  sale  is  made.  This  change  in 
accounting  policy  has  not  been  applied  retroactively  due  to  the  immateriality  of  the  amount  in 
question. 


PUBLIC  ACCOUNTS  1991/92 


C  139 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements,  page  3 
Year  ended  March  31 , 1992 


3.  Receivables  (in  thousands  of  dollars) : 


1992 

1991 

Retailers 

Other 

$ 

12,559 

1,172 

$ 

11,365 

698 

$ 

13,731 

$ 

12,063 

4.  Fixed  assets  (in  thousands  of  dollars): 


1992 

1991 

Accumulated 

Cost 

depreciation 

Net 

Net 

On-line  gaming  terminals 
Central  system  computer 

$ 

16,974 

$ 

15,737 

$ 

1,237 

$ 

- 

hardware 

12,619 

10,508 

2,111 

1,503 

Land 

Building  and  leasehold 

700 

— 

700 

700 

improvements 

17,500 

13,580 

3,920 

5,571 

Furniture  and  equipment 

2,946 

2,833 

113 

63 

Signs  and  fixtures 

3,039 

2,905 

134 

16 

$ 

53,778 

$ 

45,563 

$ 

8,215 

$ 

7,853 

5.  Long-term  debt  (in  thousands  of  dollars): 


1992  1991 


Crown  Life  Insurance  Company  Mortgage, 
payable  in  monthly  instalments  of  $  48,301 
including  interest  at  10.625%,  secured  by 

building,  due  April  1,  1992 $  5,204 $  5,245 


Subsequent  to  March  31,  1992  the  Corporation  refinanced  the  long-term  debt  with  the  CISC 
Mortgage  Corporation.  The  mortgage  is  secured  by  the  Kamloops  property  and  a  general 
assignment  of  rental  income.  The  mortgage  bears  interest  at  9.14%  and  is  due  June  1 , 1997. 

Principal  payments  due  within  each  of  the  next  five  years  are  approximately  as  follows; 


1993 

$  172,000 

1994 

188,000 

1995 

206,000 

1996 

225,000 

1997 

4.413.000 

C  140 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements,  page  4 
Year  ended  March  31 , 1992 


Share  capital: 

Authorized:  1 0,000  comnran  shares  without  par  value 

Issued:  1  common  share  for  $  1 .00 

Sales  (in  thousands  of  dollars): 

1991/92 

1990/91 

Nationwide  Games: 

Lotto  6/49 

$ 

286,143 

$ 

289,873 

Provincial 

12,410 

16,968 

Special  Event 

11,370 

12,625 

309,923 

319,466 

British  Columbia  Games: 

Instant 

136,363 

127,081 

Breakopen 

108,052 

75,164 

Extra 

35,799 

32,071 

Sports  Action 

23,372 

2,815 

BC  Keno 

20,613 

21 ,373 

BC/49 

18,090 

- 

Lotto  BC 

15,267 

19,525 

Daily 

4,622 

- 

Express 

247 

1,606 

362,425 

279,635 

Bingo  paper 

4,063 

4,196 

366,488 

283,831 

$ 

676,41 1 

$ 

603,297 

8.  Payments  to  Community  Group  Licensees: 

During  the  year  the  Corporation  made  payments  of  $  8,562,000  (1991  -  $  2,178,000)  to 
Community  Group  Licensees  under  the  Breakopen  Lottery  Ticket  Program. 

On  February  14,  1992  the  provincial  government  placed  a  moratorium  on  the  program,  wherein 
payments  to  Community  Group  Licensees  ceased,  and  on  March  12,  1992  announced  the 
cancellation  of  the  program. 


i 


PUBLIC  ACCOUNTS  1991/92 


C  141 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements,  page  5 
Year  ended  March  31 ,  1992 


9.  Payments  to  Government  of  Canada: 

The  Interprovincial  Lottery  Corporation  makes  inflation  adjusted  payments  to  the  Government  of 
Canada  as  a  result  of  an  agreement  between  the  provincial  governments  and  the  Government  of 
Canada  on  the  withdrawal  of  the  Government  of  Canada  from  the  lottery  field.  The  Corporation 
remits  British  Columbia's  share  of  the  above  payments  to  the  Interprovincial  Lottery  Corporation. 
Payments  under  this  agreement  are  estimated  to  be  $  6,100,000  for  the  next  fiscal  year  ending 
March  31.  1993. 

10.  Interprovincial  Lottery  Corporation  Expenses  and  Interest  Revenue: 

Interprovincial  Lottery  Corporation  prize  costs  and  ticket  printing  are  recognized  in  the  appropriate 
category  of  direct  expenses.  The  net  operating  rebate  which  includes  the  Corporation's  share  of 
the  Interprovincial  Lottery  Corporation's  interest  revenues  less  operating  expenses  is  included  in 
interest  and  other  income.  The  net  operating  rebate  from  the  Interprovincial  Lottery  Corporation 
was  $  1 82,736  for  the  year  ended  March  31 ,  1 992  (1 991  -  $  51 1 ,000). 

11.  Lease  obligations: 

Long-term  office  space  leases  will  expire  as  follows: 


Richmond  April  30,  1995 

Victoria  June  30,  1994 


Aggregate  minimum  annual  rental  payments  to  the  end  of  the  lease  terms  are  approximately  as 
follows: 


1992- 1993 

1993- 1994 

1994- 1995 

1995- 1996 


$  578,000 
578,000 
518,000 
42,000 


Future  aggregate  minimum  rental  payments  to  the  expiry  dates  amount  to  approximately 
$1,716,000(1991  -$2,335,000). 


12.  Pension  plan: 

The  market  value  of  pension  plan  assets  is  approximately  $  6,452,000  and  estimated  liabilities 
are  approximately  $  5,823,600.  The  latest  available  actuarial  valuation  of  the  pension  plan  was 
performed  as  at  March  31,1991.  The  valuation  revealed  that  the  plan  has  a  funding  excess  of 
$  628,000  as  at  March  31,  1991. 


C  142 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  LOTTERY  CORPORATION 

Notes  to  Consolidated  Financial  Statements,  page  6 
Year  ended  March  31 , 1992 


13.  Commitments: 

Purchase  of  Lottery  Terminals: 

During  the  year  the  Corporation  entered  into  an  agreement  for  the  purchase  of  2,280  lottery 
terminals  for  a  total  contract  price  of  $  14.9  million.  At  March  31, 1992,  2,233  terminals  are  still  to 
be  delivered  under  the  contract.  The  Corporation  is  committed  to  $  13.1  million  with  respect  to 
the  undelivered  terminals. 

14.  Comparative  figures: 

Certain  1991  comparative  figures  have  been  reclassified  to  conform  with  the  financial  statement 
presentation  adopted  in  the  current  year. 


PUBLIC  ACCOUNTS  1991/92 


C  143 


British  Columbia  Petroleum  Corporation 


m 


WOLRIGE  •  MAHON 


AUDITORS’  REPORT 


To  the  Lieutenant-Governor  in  Council 
Province  of  British  Columbia: 


We  have  audited  the  consolidated  balance  sheet  of  the  British  Columbia  Petroleum 


Corporation  as  at  March  31,  1992,  and  the  consolidated  statements  of  revenue, 
expenditure  and  surplus  and  changes  in  financial  position  for  the  year  then  ended. 
These  fmancial  statements  are  the  responsibility  of  the  Corporation’s  management. 
Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our 
audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  consolidated  financial  statements  present  fairly,  in  all  material 
respects,  the  financial  position  of  the  Corporation  as  at  March  31,  1992  and  the 
results  of  its  operations  and  the  changes  in  its  financial  position  for  the  year  then 
ended  in  accordance  with  generally  accepted  accounting  principles.  As  required  by 
the  Company  Act  of  British  Columbia,  we  report  that,  in  our  opinion,  these  principles 
have  been  applied  on  a  basis  consistent  with  that  of  the  preceding  year. 


WOLRIGE  MAHON 


Chartered  Accountants 


VANCOUVER,  B.C. 


May  12,  1992 


■I  Snmmil  Ini 


Ninth  I'lonr,  C>>mMu  ri.i'  I’l.iic,  -400  Biirnird  Slrt-cl,  V.incnuvi-r,  British  Cnlunihi;!  V6C  4B7 
Ti-k-plinnc  (60-4)  NS4-6212  F.icsimilc  (60-4)  6SK-1497 


C  144 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  PETROLEUM  CORPORATION 

CONSOLIDATED  BALANCE  SHEET 
March  31,  1992 


1992 

1991 

$ 

$ 

ASSETS 

Current 

Cash 

1,053,086 

1,423,730 

Accounts  receivable 

3,206,110 

5,746,411 

Prepaid  expenses 

1,489 

1,353 

4,260,685 

7,171,494 

Capital  assets  (Note  4) 

216,197 

160,318 

4,476,882 

7,331,812 

LIABILITIES 

Current 

Accounts  payable  and  accrued  charges 

3,440,883 

6,579,753 

Surplus 

1,035,999 

752,059 

4,476,882 

7,331,812 

Commitments  (Note  6) 
Approved  by  Directors: 


W  O  L  H  i  G  b  •  M  A  M  O  N 
C3\.irrcrcvl  Accinint.iius 


PUBLIC  ACCOUNTS  1991/92 


C  145 


BRITISH  COLUMBU  PETROLEUM  CORPORATION 

CONSOLIDATED  STATEMENT  OF  REVENUE.  EXPENDITURE  AND  SURPLUS 
For  the  year  ended  March  31,  1992 


1992 

$ 

1991 

$ 

Revenue 

Natural  gas  deliveries  (Note  3) 

B.C.  Levy  revenue  (Note  2) 

Interest  (Note  5) 

Miscellaneous  income 

Gain  on  prepaid  gas 

46;391,170 

2,635;i27 

116^68 

32,192,281 

2,559,480 

1,150,897 

10,042 

28,279 

49,142,765 

35,940,979 

Expenditure 

Natural  gas  purchases  (Note  3) 

Administrative  and  general  expenses 

46391,170 

957,655 

32,192,281 

589,434 

47348,825 

32,781,715 

Excess  revenue  over  expenditure 

1,793,940 

3,159,264 

Surplus  at  beginning  of  year 

752,059 

26,190,777 

2345,999 

29,350,041 

Deduct;  Transfers  to  Provincial  Treasury 

1310,000 

28,597,982 

Surplus  at  end  of  year 

1,035,999 

752,059 

K  1  G  E  •  M  A  H 


W  O  L 


O  N 


C  146 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  PETROLEUM  CORPORATION 

CONSOLIDATED  STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
For  the  year  ended  March  31,  1992 


1992 

$ 

1991 

$ 

Operating  activities 

Operations 

Excess  revenue  over  expenditure 

Add  (deduct)  items  not  involving  a  flow  of  cash 

-  amortization 

-  gain  on  disposal  of  capital  assets 

1,793^40 

34,951 

3,159,264 

27,895 

(2) 

Cash  from  operations 

1,828,891 

3,187,157 

Changes  in  non-cash  working  capital 

Accounts  receivable  and  prepaid  expenses 

Accounts  payable  and  accrued  charges 

Recovery  of  prepaid  gas 

Transfers  to  Provincial  Treasury 

2,540,165 

(3,138,870) 

(1,510,000) 

(5,251,311) 

6,517,738 

183,404 

(28,597,982) 

(279,814) 

(23,960,994) 

Investing  activities 

Capital  additions 

Proceeds  from  sale  of  capital  assets 

(90,830) 

(183,040) 

94,744 

(90,830) 

(88,296) 

Decrease  in  cash  position  during  the  year 

(370,644) 

(24,049,290) 

Cash  position  at  beginning  of  year 

1,423,730 

25,473,020 

Cash  position  at  end  of  year 

1,053,086 

1,423,730 

W  O  L  R  I  G  t  •  M  A  H  O  N 


CI»iirrerfd  Accintnt.ini.s 


PUBLIC  ACCOUNTS  1991/92 


C  147 


BRITISH  COLUMBIA  PETROLEUM  CORPORATION 


;;  CONSOLIDATED  NOTES 

For  the  year  ended  March  31,  1992 

1 


Note  1  Statutory  Requirements 


The  British  Columbia  Petroleum  Corporation  is  established  by  the  Petroleum  Corporation  Act, 
1973. 


Note  2  Significant  Accounting  Policies 


Consolidation 

The  British  Columbia  Petroleum  Corporation  financial  statements  include  the  accounts  of  the 
Corporation’s  subsidiary,  B.C.  Petroleum  (Kitimat)  Ltd. 

Amortization 

Furniture,  equipment  and  automobiles  are  recorded  at  cost  and  amortization  is  provided  at  rates 
considered  adequate  to  amortize  the  cost  over  the  service  lives  of  the  assets.  Amortization  is 
computed  on  a  declining  balance  basis  varying  from  10%  to  25%. 

Levy  Revenue 

Under  the  Natural  Gas  Price  Amendment  Act,  1990,  the  producers  are  required  to  pay  a  levy 
based  on  the  monthly  volume  of  marketable  natural  gas  produced.  This  levy  is  intended  to  offset 
administration  costs  incurred  in  carrying  out  the  government’s  role  in  monitoring  and  overseeing 
the  natural  gas  marketplace. 


Note  3  Natural  Gas  Contracts 


Until  October  31,  1991,  the  Corporation  purchased  gas  from  Pacific  Northern  Gas  Ltd.  under  a 
contract  dated  August  1,  1981.  The  Corporation  resold  the  gas  to  Methanex  Corporation, 
formerly  Ocelot  Chemicals  Inc.,  for  use  in  that  company’s  methanol  plant  in  Kitimat  under  a 
separate  contract  dated  August  1,  1981. 

Effective  November  1,  1991,  the  Gas  Purchase  Agreement  with  Pacific  Northern  Gas  Ltd.  and 
the  Gas  Sales  Agreement  with  Methanex  Corporation,  formerly  Ocelot  Chemicals  Inc.,  were 
converted  to  a  Firm  Service  and  an  Interruptible  Sales  Agreement. 


W  O  L  R  I  G  E  •  M  A  M  O  N 
( li.iricrcd  AcoMiiit.iiits 


C  148 


PROVINCE  OF  BRITISH  COLUMBIA 


-2- 


Note  4  Capital  Assets 


Cost 

Accumulated 

Amortization 

1992 

Net 

Carrying 

Value 

1991 

Net 

Carrying 

Value 

$ 

$ 

$ 

$ 

Furniture  and  equipment 

253,030 

48,749 

204,281 

144,982 

Automobiles 

18,149 

6,233 

11,916 

15,336 

271,179 

54,982 

216,197 

160,318 

Note  5  Interest 


1992 

1991 

Interest  income 

$ 

$ 

Province  of  British  Columbia 

88,150 

1,088,898 

Other 

28,218 

61,999 

116368 

1,150,897 

Note  6  Commitments 


The  CoqDoration  has  a  commitment  under  an  agreement  for  the  lease  of  office  premises 
extending  to  January  31,  1996.  The  minimum  lease  payments  under  this  agreement  are  as 
follows: 

$ 


Year  ended  March  31,  1993 

70,044 

March  31,  1994 

70,044 

March  31,  1995 

70,044 

March  31,  1996 

58,370 

268,502 


Note  7  Comparative  Figures 


The  1991  comparative  figures  represent  eight  months  of  operations  following  the  devolution  of 
the  Corporation’s  gas  marketing  functions  on  August  1,  1990, 


W  o  L  R  I  c;  t  •  M  A  1 1  O  N 


PUBLIC  ACCOUNTS  1991/92 


C  149 


British  Columbia  Railway  Company 


Coopers 

&Lybrand 


chartered  accountants 


a  member  firm  of 

Coopers  &  Lybrand  (international) 


AUDITORS’  REPORT 


To  the  Lieutenant  Governor  in  Council 
Province  of  British  Columbia 


We  have  audited  the  consolidated  balance  sheets  of  British  Columbia  Rail\A/ay 
Company  as  at  December  31,  1991  and  1990  and  the  consolidated  statements  of 
income  and  retained  earnings  and  cash  flow  for  the  years  then  ended.  These 
financial  statements  are  the  responsibility  of  the  company’s  management.  Our 
responsibility  is  to  express  an  opinion  on  these  consolidated  financial  statements 
based  on  our  audits. 


We  conducted  our  audits  in  accordance  with  generally  accepted  auditing 
standards.  Those  standards  require  that  we  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  our  opinion,  these  consolidated  financial  statements  present  fairly,  in  all  material 
respects,  the  financial  position  of  the  company  as  at  December  31,  1991  and  1990 
and  the  results  of  its  operations  and  the  changes  in  its  cash  position  for  the  years 
then  ended  in  accordance  with  generally  accepted  accounting  principles. 


Vancouver,  Canada 
February  7,  1  992 


C  150 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  RAILWAY  COMPANY 
CONSOLIDATED  BALANCE  SHEETS 
(Dollars  in  Thousands) 


December  31 

1991 

1990 
Restated 
(Note  10) 

ASSETS 

Current  assets 

Cash  and  short-term  investments 

Accounts  receivable 

Material  and  other  items 

$ 

14,433 

35,812 

33,234 

$ 

(1,598) 

34,834 

39,844 

83,479 

73,080 

Property  and  equipment 

Road  and  buildings 

Equipment 

1,329,304 

327,052 

1,297,195 

325,165 

Accumulated  depreciation 

1,656,356 

399,186 

1,622,360 

365,924 

1,257,170 

1,256,436 

$ 

1,340,649 

$ 

1,329,516 

LIABILITIES  AND  SHAREHOLDER’S  EQUITY 

Current  liabilities 

Accounts  payable 

Current  obligations  on  long-term  debt 

$ 

89,521 

2,413 

$ 

91,904 

29,867 

91,934 

121,771 

Long-term  debt  -  Note  2 

79,387 

81,946 

Minority  interest  -  Note  3 

186,501 

186,501 

Shareholder's  equity 

Share  capital  -  Note  4 

Contributed  surplus 

Retained  earnings  -  Note  10 

257,688 

510,716 

214,423 

257,688 

510,716 

170,894 

Commitments  -  Note  5 

Contingent  liabilities  -  Note  6 

982,827 

939,298 

$ 

1,340,649 

$ 

1,329,516 

Director  Director 


PUBLIC  ACCOUNTS  1991/92 


C  151 


BRITISH  COLUMBIA  RAILWAY  COMPANY 
CONSOLIDATED  INCOME  AND  RETAINED  EARNINGS 
(Dollars  in  Thousands) 


For  the  years  ended  December  31 

1991 

1990 
Restated 
(Note  10) 

Revenues 

Rail  operations 

$  310.882 

$  285,464 

Government  assistance  -  Note  8 

9,107 

9,589 

319,989 

295,053 

Expenses 

Operations 

70,958 

67,382 

Equipment 

61,503 

64,419 

Road 

38.154 

42.980 

Depreciation 

41,806 

39,423 

General  and  administration 

29,451 

24,585 

241,872 

238,789 

Railway  operating  income 

78,117 

56,264 

Non-operating  income  (expense) 

Interest  -  Note  9 

(9,982) 

(9,048) 

Other  income 

5,199 

4,287 

Large  Corporations  Tax 

(2,246) 

(1,950) 

Income  before  minority  interest 

71,088 

49,553 

Minority  interest 

(17.251) 

(17,271) 

Net  income 

53,837 

32,282 

Retained  earnings,  beginning  of  year 

173.123 

149,649 

Prior  period  adjustment  -  Note  10 

(2,229) 

(729) 

As  restated 

170,894 

148,920 

Dividends  paid 

(10,308) 

(10,308) 

Retained  earnings,  end  of  year 

$  214,423 

$  170,894 

C  152 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  RAILWAY  COMPANY 
CONSOLIDATED  CASH  FLOW 
(Dollars  in  Thousands) 


For  the  years  ended  December  31 

1991 

1990 
Restated 
(Note  10) 

Operating  activities 

Net  income 

$  53,837 

$  32,282 

Add  (deduct) 

Item  not  affecting  working  capital 

Depreciation 

41.806 

39,423 

Net  changes  in  non-cash  working  capital 

Accounts  receivable 

(978) 

5,169 

Material  and  other  items 

6,610 

(1,291) 

Accounts  payable 

(1,993) 

(9,410) 

Minority  interest  in  earnings 

17,251 

17,271 

Interest 

9,982 

9,048 

126,515 

92,492 

Investing  activities 

Additions  to  property  and  equipment 

(45.132) 

(106,118) 

Change  in  payables  for  equipment  purchases 

(390) 

367 

Government  assistance  for  capital  items 

2,592 

3,262 

(42,930) 

(102,489) 

Financing  activities 

Issue  of  long-term  debt 

0 

27,695 

Repayment  of  long-term  debt 

(30,013) 

(27,071) 

Interest 

(9,982) 

(9,048) 

Dividends  paid  to  minority  interest 

(17,251) 

(17,271) 

Reduction  in  minority  interest 

0 

(385) 

(57,246) 

(26,080) 

Dividends  paid 

(10,308) 

(10,308) 

Increase  (decrease)  in  cash 

16,031 

(46,385) 

Cash  and  short-term  investments,  beginning  of  year 

(1,598) 

44,787 

Cash  and  short-term  investments,  end  of  year 

$  14,433 

$  (1,598) 

PUBLIC  ACCOUNTS  1991/92 


C  153 


British  Columbia  Railway  Company 
Notes  to  Consolidated  Financial  Statements 

1.  SIGNIFICANT  ACCOUNTING  POLICIES 

The  accounting  regulations  prescribed  by  the  National  Transportation  Agency  of 
Canada  have  been  adopted  to  the  extent  that  this  is  possible  without  submitting 
specific  accounting  policies  and  depreciation  rates  to  the  Agency  for  approval. 

Basis  of  consolidation 

The  consolidated  financial  statements  include  the  accounts  of  British  Columbia  Railway 
Company  and  Its  subsidiaries,  BC  Rail  Ltd.  and  BCR  Properties  Ltd.  In  these  notes 
"company"  refers  to  British  Columbia  Railway  Company  and  its  subsidiaries.  All 
significant  inter-company  transactions  are  eliminated. 

Class  of  business 

The  company  provides  a  fully  integrated  rail  freight  service  within  British  Columbia. 
Services  other  than  hauling  freight  are  not  of  sufficient  size  to  warrant  separate 
reporting. 

Road  property 

New  construction  is  recorded  at  cost  net  of  Government  grants.  Abandoned  or 
relocated  sections  are  removed  at  average  unit  costs.  Elements  of  track  structure 
installed  during  planned  programs  are  recorded  at  cost  and  the  material  replaced  is 
removed  at  amounts  which  approximate  average  unit  costs.  Labour  costs  for 
programmed  replacements  are  expensed  as  incurred. 

Depreciation 

Depreciation  is  provided  for  major  categories  of  property  and  equipment  on  the  straight- 
line  basis  at  composite  rates  estimated  to  reduce  the  original  cost  to  estimated  salvage 
value  over  the  average  service  lives  of  the  classes.  The  group  method  is  used  for 
recording  depreciation  under  which,  on  disposal,  the  original  cost  of  assets  retired  less 
salvage  value  is  charged  against  accumulated  depreciation.  No  gain  or  loss  on 
retirements,  other  than  on  accidental  destruction  of  rolling  stock  and  on  disposal  of 
land,  is  included  in  income.  The  original  cost  of  assets  less  estimated  salvage  value  is 
depreciated  over  the  following  number  of  years: 


Number  of  Years 


Grade  and  tunnels 

100 

Rail 

35 

Ties 

20  -  50 

Ballast 

25 

Bridges 

30  -  80 

Locomotives  and  power  units 

25 

Freight  cars 

15-33 

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PROVINCE  OF  BRITISH  COLUMBIA 


Repairs 

Repairs  and  non-programmed  replacements  of  track  structure  are  charged  against 
current  operations.  Betterments  and  major  track  relocations  are  capitalized. 

Material  and  supplies 

Inventories  of  material  and  supplies  are  valued  at  the  lower  of  average  cost  and  net 
realizable  value. 

Government  assistance 

Grants  directly  related  to  the  construction  or  rehabilitation  of  road  property  have  offset 
related  road  property  capital  expenditures.  Operating  assistance  has  been  deducted 
from  the  related  expense  accounts  or  Included  in  revenue. 

income  taxes 

Income  tax  expense  is  computed  on  the  basis  of  accounting  income  recorded  by  BC 
Rail  Ltd.  The  income  of  British  Columbia  Railway  Company  and  BCR  Properties  Ltd.  is 
exempt  from  income  taxes. 

Transactions  in  foreign  currency 

Transactions  originating  in  foreign  currency  are  translated  at  the  approximate  exchange 
rates  prevailing  at  the  dates  of  the  transactions.  Assets  and  liabilities  denominated  In 
foreign  currency  at  the  balance  sheet  date  are  translated  to  equivalent  Canadian 
amounts  at  the  current  rate  of  exchange. 

Leases 

Certain  long-term  lease  transactions  relating  to  the  financing  of  equipment  are 
accounted  for  as  purchases.  The  capital  lease  obligations  reflect  the  present  value  of 
future  minimum  rental  payments  discounted  at  the  interest  rate  Implicit  in  the  leases. 
The  capitalized  values  of  depreciable  assets  are  generally  depreciated  over  the  related 
lease  terms  in  equal  annual  amounts.  Costs  of  all  other  leases  are  charged  against 
operations  as  incurred. 


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C  155 


2.  LONG-TERM  DEBT 

Long-term  debt  outstanding,  less  current  maturities,  consists  of  the  following 
(in  thousands): 


1991 

1990 

Sinking  fund  bonds  and  debentures  payable  to  the 
Province  of  British  Columbia  (the  Province) 

1 1 .00%,  due  June  1 995 

10.99%,  due  August  2005 

$  25,000 
24,490 

$  25,000 
24,490 

Less  sinking  fund 

49,490 

1,556 

49,490 

1,244 

47,934 

48,246 

Capital  lease  obligations  -  Notes  5  and  12 

Short-term  notes  payable  to  the  Province 

33,866 

0 

35,872 

27,695 

Deduct  current  portion 

81,800 

2,413 

111,813 

29,867 

$  79,387 

$  81,946 

3.  MINORITY  INTEREST 

The  minority  interest  consists  of  7,460,045  series  1-A  first  preferred  shares  with  a  par 
value  of  $25  each  issued  by  BC  Rail  Ltd.  These  shares  are  designated  as  $2.3125 
cumulative,  redeemable  and  retractable.  The  retraction  privilege  has  expired. 

BC  Rail  Ltd.  must  make  all  reasonable  efforts  in  each  quarter  to  purchase  for 
cancellation  on  the  open  market  three-quarters  of  1%  of  the  series  1-A  preferred 
shares  outstanding  at  the  beginning  of  the  quarter  at  a  price  not  to  exceed  $25  per 
share  and  all  transaction  costs.  If  it  is  unable  to  fulfill  its  obligation  in  any  calendar 
quarter  the  obligation  will  carry  over  only  to  the  successive  calendar  quarters  of  the 
same  calendar  year  and  will  thereafter  be  extinguished.  No  shares  were  purchased  in 
1991.  During  1990,  15,400  shares  were  purchased  on  the  open  market  and 
subsequently  cancelled. 

4.  SHARE  CAPITAL 
Authorized: 

10,000,000  shares  with  a  par  value  of  $100  each. 

Issued  and  outstanding: 

2,576,885  shares  held  by  the  Province. 

As  all  of  the  shares  are  held  by  the  Province,  earnings  per  share  have  not  been 
provided. 


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PROVINCE  OF  BRITISH  COLUMBIA 


5.  COMMITMENTS 

The  company  has  significant  lease  commitments  for  rolling  stock  and  additional  minor 
lease  commitments  for  equipment  and  real  estate  which  expire  at  various  dates  prior  to 
the  year  2003.  Certain  of  these  leases  transfer  substantially  all  of  the  benefits  and 
risks  of  ownership  to  the  company  and  are  accounted  for  as  capital  leases. 

The  following  is  a  schedule  of  future  minimum  rental  payments  at  December  31,  1991 
required  under  non-cancellable  leases  that  have  remaining  terms  in  excess  of  one  year 
(in  thousands): 


Capital 

Leases 

Operating 

Leases 

1992 

$  6,780 

$  13,302 

1993 

6,780 

11,225 

1994 

6,780 

8,119 

1995 

6,780 

8,1 19 

1996 

6,780 

6,261 

Later  years 

24,013 

12,047 

Total  minimum  lease  payments 

Less 

57,913 

$59,073 

Executory  costs 

4,439 

Imputed  interest 

19,608 

Present  value 

$  33,866 

Assets  under  capital  leases  recorded  in  the  property  and  equipment  accounts  as  at 
December  31,  with  effective  interest  rates  in  the  range  of  11.75%  to  12.02%,  are  as 
follows  (in  thousands): 


1991 

1990 

Equipment 

$  46,234 

$  46,283 

Accumulated  depreciation 

21,195 

19,363 

$  25,039 

$  26,920 

As  at  December  31,  1991  the  company  had  outstanding  purchase  commitments  for 
the  acquisition  of  material  and  equipment  amounting  to  $20  million. 

6.  CONTINGENT  LIABILITIES 

The  company  is  contingently  liable  with  respect  to  pending  litigation  and  claims  arising 
in  connection  with  rail  line  construction  and  in  the  normal  course  of  business.  In  the 
opinion  of  management,  any  liability  that  may  arise  will  be  capitalized  or  would  not 
have  a  material  adverse  effect  on  future  income. 

7.  INCOME  TAX 

At  December  31,  1991,  BC  Rail  Ltd.  had  approximately  $108  million  excess  income 
tax  value  over  net  book  value  of  depreciable  property  and  equipment,  which  can  be 
used  to  reduce  future  years’  earnings  for  income  tax  purposes.  Alternately,  the  Federal 
Government  has  proposed  legislation  which  would  permit  transportation  companies  to 
apply  non-capital  taxation  losses  to  rebate  fuel  taxes  paid  in  1991  and  1992.  The 


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PUBLIC  ACCOUNTS  1991/92 


C  157 


income  tax  loss  carryforward  would  be  reduced  by  $10  for  every  $1  of  fuel  tax 
rebated.  The  potential  fuel  tax  rebate  in  respect  of  1991  is  estimated  at  $1.9  million, 
which  will  be  recorded  once  the  law  is  enacted  and  which  will  reduce  the  available 
excess  income  tax  values  to  $89  million. 


8.  GOVERNMENT  ASSISTANCE 

Government  assistance  was  as  follows  (in  thousands): 


1991 

1990 

Unapplied,  beginning  of  year 

$  2.866 

$  518 

Contributions  during  the  year 

From  the  Province 

Fort  Nelson  Subdivision 

Operating 

3,750 

6,250 

Rehabilitation 

2,000 

5,575 

Passenger  operations 

2,064 

3,438 

Passenger  car  modernization 

2,058 

727 

9,872 

15,990 

From  the  Government  of  Canada 

Grain  transportation 

1,357 

1,277 

11,229 

17,267 

Total  available 

14,095 

17,785 

Applied  as  follows 

Revenue 

Fort  Nelson  Subdivision 

5,000 

5,000 

Passenger  operations 

2,750 

3,312 

Grain  transportation 

1,357 

1,277 

9,107 

9,589 

Operating  expenses 

Road 

633 

1,290 

Equipment 

398 

778 

1,031 

2,068 

Property  and  equipment 

2,593 

3,262 

Total  applied 

12,731 

14,919 

Unapplied,  December  31 

$  1,364 

$  2,866 

9.  INTEREST  EXPENSE 

Interest  expense  was  as  follows  (in  thousands): 

1991 

1990 

Interest  on  long-term  debt  and 

notes  to  the  Province 

$  6,706 

$7,786 

Interest  on  capital  lease  obligations 

4,165 

4,387 

10,871 

12,173 

Less 

Sinking  fund  earnings 

121 

119 

Interest  earned  on  temporary  investments 

768 

3,006 

889 

3,125 

Net  interest 

$  9,982 

$  9,048 

C  158 


PROVINCE  OF  BRITISH  COLUMBIA 


10.  PRIOR  PERIOD  ADJUSTMENT 

During  the  year,  the  company  repaid  $2.2  million  to  its  insurers  in  settlement  of  their 
successful  appeal  to  the  Appeal  Court  of  British  Columbia.  In  prior  years,  based  on  the 
decision  of  a  lower  court,  the  insurers  had  paid  a  claim  and  the  amounts  were  taken 
into  income.  The  comparative  figures  for  1990  have  been  restated  with  the  balance 
being  deducted  from  the  retained  earnings  at  January  1,  1990. 

11.  PENSION  PLAN  AND  POSTEMPLOYMENT  BENEFITS 

The  company  maintains  a  contributory  defined  benefit  plan  which  covers  substantially 
all  of  its  employees.  The  plan  provides  pensions  based  on  length  of  service  and 
average  earnings. 

An  actuarial  valuation  of  the  plan  as  at  December  31,  1991  indicates  that  the  accrued 
pension  obligations  and  the  net  assets  available  to  provide  for  these  obligations  are  as 
follows: 

Accrued  pension  obligations  $  238  million 

Pension  fund  assets  $  263  million 

To  reduce  the  excess  of  pension  fund  assets  over  the  accrued  pension  obligations,  a 
contribution  holiday  was  implemented  from  March  1989  to  March  1991. 

The  company  also  provides  basic  medical  insurance  coverage  for  all  retired  employees. 
The  cost  of  the  premiums  is  charged  to  Income  as  they  are  paid. 


12.  RELATED  PARTY  TRANSACTIONS 

Related  party  information  not  presented  elsewhere  in  the  notes  to  financial  statements 
is  presented  below. 

First  preferred  shares  of  BC  Rail  Ltd.  and  certain  capital  lease  obligations  are 
guaranteed  by  the  Province.  The  Ministry  of  Finance  and  Corporate  Relations  of  the 
Province  acts  as  fiscal  agent  and  the  Superannuation  Commission  of  the  Province 
administers  the  company  pension  plan.  Fees  are  charged  for  both  of  these  services. 

Except  for  income  tax  as  described  in  Note  1 ,  the  company  Is  subject  to  all  taxes  levied 
by  the  Province  except  most  property  taxes.  All  other  transactions  between  the 
company  and  the  Province  are  at  terms  no  more  or  less  favourable  than  those  with 
unrelated  parties. 


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PUBLIC  ACCOUNTS  1991/92 


C  159 


British  Columbia  Regional  Hospital  Districts  Financing  Authority 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax (604) 387-1230 


To  the  Members  of  the  British  Columbia  Regional  Hospital  Districts 
Financing  Authority,  and 

To  the  Minister  of  Finance  and  Corporate  Relations, 

Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  British  Columbia  Regional  Hospital 
Districts  Financing  Authority  as  at  March  31,  1992  and  the  statement  of  financing 
and  lending  activities  and  statement  of  changes  in  sinking  funds  for  the  year  then 
ended.  These  financial  statements  are  the  responsibility  of  the  Authority's 
management.  My  responsibility  is  to  express  an  opinion  on  these  financial 
statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Authority  as  at  March  31, 1992  and  the  results  of  its 
operations  and  changes  in  sinking  funds  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
June  23,  1992 


C  160 


PROVINCE  OF  BRITISH  COLUMBIA 


STATEMENT  OF  RESPONSIBILITY 


To  the  Members  of  the 

British  Columbia  Regional  Hospital 
Districts  Financing  Authority 

Responsibility  for  the  integrity  and  objectivity  of  the 
accompanying  financial  statements  rests  with  the  Authority. 
The  financial  statements  are  prepared  by  the  Provincial 
Treasury,  Ministry  of  Finance  and  Corporate  Relations  in 
accordance  with  generally  accepted  accounting  principles  in 
a  manner  consistent  with  the  previous  year.  Policies  and 
procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are 
safeguarded  and  financial  records  properly  maintained  to 
provide  reliable  financial  statements. 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial 
statements . 


Ar  1 

Director 

Banking/ Cash  Management 
Provincial  Treasury 

Victoria,  British  Columbia 
June  24,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  161 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 

BALANCE  SHEET 
AS  AT  MARCH  31,  1992 
ASSETS 


Loans  receivable  (note  3) 

Less:  Sinking  funds  (note  5) 


Accrued  interest  receivable 


In  Thousands 


1992 

$1,393,929 
414 . 557 

979,372 

46,548 

$1 , 025 , 920 


1991 

$1,291,604 
374 ,301 

917,303 

43,438 

$  960,741 


LIABILITIES 


Term  debt  (note  4) 

Less;  Sinking  funds  (note  5) 


Accrued  interest  payable 


$1,393,929 
414 , 557 

979,372 

46,548 

$1,025,920 


$1,291,604 
374 ,301 

917,303 

43,438 

$  960,741 


The  six  accompanying  notes  are  an 
integral  part  of  these  financial  statements. 

Approved  by  the  Authority: 


7 


Glen  Clark,  Chairman 


Michael  Costello,  Secretary 


C  162 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
STATEMENT  OF  FINANCING  AND  LENDING  ACTIVITIES 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


In  Thousands 
1992  1991 


Funds  generated  from 


Interest  on  loans  receivable 

$152,291 

$139,336 

Debentures  issued 

143 , 829 

182,540 

Assets  transferred  from 

sinking  funds  to  discharge  loans 
receivable  and  interest  obligations 
-  at  cost  (note  6) 

43,233 

12,903 

Excess  of  value  of  loans  receivable 
discharged  over  cost  of  assets 
transferred  from  sinking  funds 

1.013 

$339 . 353 

$355,792 

Funds  applied  to 

Interest  on  term  debt 

$152,291 

$139,336 

Loans  issued 

143 , 829 

182 , 540 

Extinguishment  of  term  debt  for  financial 
reporting  purposes  (note  6) 

41,504 

13,916 

Excess  of  cost  of  assets  transferred 
from  sinking  funds  over  loans 
receivable  discharged 

1 . 729 

$339 ,353 

$335,792 

PUBLIC  ACCOUNTS  1991/92 


C  163 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
STATEMENT  OF  CHANGES  IN  SINKING  FUNDS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


In 

Thousands 

1992 

1991 

Increase 

Instalments 

$ 

33 , 726 

$ 

28,861 

Investment  income 

51.923 

37 . 387 

$ 

85.649 

66 . 248 

Decrease 

Funds  management  fees  (note  5) 

178 

157 

Excess  assets  of  certified 
sinking  funds  (note  6) 

1,982 

254 

Assets  transferred  to  the 

Authority  -  at  cost  (note  6) 

43 , 233 

12,903 

Accrued  interest  on  debt 

extinguished  for  financial 
reporting  purposes 

502 

45.393 

13 . 816 

Net  increase  in  Sinking  Funds 

40,256 

52,432 

Sinking  Funds, 

Beginning  of  Year 

$374 .301 

321.869 

Sinking  Funds, 

End  of  Year 

$414 . 557 

$374 ,301 

C  164 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  Ml^CH  31,  1992 


1.  The  Authority 

The  Authority  was  established  by  the  Hospital  District  Finance  Act, 
R.S.B«C.  1979.  Chapter  179,  as  amended »  Section  2  of  the  Act  states 
that  the  purpose  of  the  Authority  is:  "to  assist  in  the  financing  of 
hospital  projects,  medical  and  health  facilities,  community  human 
resources  and  health  centres,  and  any  other  community,  regional  or 
Provincial  facilities  for  the  social  improvement,  welfare  and  benefit  of 
the  community  or  the  general  public  good,  approved  by  the  Minister  of 
Health". 

The  Authority  provides  assistance  by  making  loans  to  regional  hospital 
districts  and  the  Health  Facilities  Association.  These  loans  are 
financed  by,  and  have  interest  rates  and  maturity  dates  identical  to, 
the  borrowing  of  the  Authority  itself, 

2.  Significant  accounting  policies 

These  financial  statements  are  prepared  on  the  basis  of  generally 
accepted  accounting  principles. 

a)  Sinking  fund  investments 

i)  Units  in  Province  of  British  Columbia  Pooled  Investment 
Portfolios  are  carried  at  the  lower  of  cost,  adjusted  by  income 
attributed  to  the  units,  or  market  value. 

ii)  Long-term  investments  are  valued  at  cost  adjusted  by 
amortization  of  discounts  and  premiums  on  a  constant  yield  basis 
over  the  term  of  the  investments. 

3.  Loans  receivable 

Loans  receivable  have  early  redemption  provisions  similar  to  those  of 
the  related  debentures  issued  by  the  Authority. 


PUBLIC  ACCOUNTS  1991/92 


C  165 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Term  debt 


In  Thousands 


1992 

Held  by: 

Canada  Pension  Plan  Investment  Fund 
8.77%  to  17.51%  debentures, 

due  1996  through  2009  $  943,159 

Province  of  British  Columbia 

Boards,  Agencies  and  Commissions 
10.00%  to  10.40%  debentures, 

due  1996  and  2001  7,000 

Province  of  British  Columbia 

7.69%  to  11.33%  debentures, 

due  1993  through  2012  443,770 


1991 


$  984,663 


7 , 000 


299,941 


$1,393 ,929 


$1,291,604 


Certain  debentures  held  by  the  Canada  Pension  Plan  Investment  Fund 
$943,159,000  (1991:  $984,663,000)  and  by  the  Province  of 

British  Columbia  $285,412,300  (1991:  $208,063,300)  are  redeemable  in 

whole  or  in  part  before  maturity,  on  six  months'  notice,  at  the  option 
of  the  holders  of  the  debt,  subject  to  certain  restrictions. 

Debentures  totalling  $4,653,000  (1991:  $4,653,000)  are  redeemable  in 
whole  or  in  part  before  maturity,  on  thirty  days'  notice,  at  the  option 
of  the  Minister  of  Finance  and  Corporate  Relations  of  the  Province  of 
British  Columbia. 

Debentures  totalling  $2,000,000  (1991:  $2,000,000)  are  redeemable  in 
whole  or  in  part,  after  1994,  at  the  option  of  the  Chairman  of  the 
Authority. 

Debentures  totalling  $5,000,000  (1991:  $5,000,000)  are  redeemable  in 
whole  or  in  part  on  demand,  at  the  option  of  the  Minister  of  Finance  and 
Corporate  Relations  of  the  Province  of  British  Columbia. 


C  166 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


4.  Term  debt  (continued) 

Debentures  maturing  in  the  next  five  fiscal  years  are  as  follows-: 

In  Thousands 


1993 

$  4,653 

1994 

4,870 

1995 

5,763 

1996 

10,461 

1997 

50,296 

Repayment  of  these  debentures  will  be  fully  funded  by  sinking  fund 
assets . 

Sinking  fund  instalments  due  in  the  next  five  fiscal  years  are  as 
follows : 


In  Thousands 

1993 

$37,285 

1994 

36,492 

1995 

35,664 

1996 

34,585 

1997 

33,764 

The  Province  of  British  Columbia  has  unconditionally  guaranteed  the 


payment  of  principal  and  interest  on  $950, 
of  the  debt  of  the  Authority. 

159,000  (1991 

:  $991,663,300) 

Sinking  funds 

In 

Thousands 

1992 

1991 

Cash 

$  4 

$  214 

Accrued  interest 

Units  in  Province  of  British  Columbia 

5,006 

6,776 

Pooled  Investment  Portfolios 

61,959 

59,326 

Accounts  receivable 

Long-term  investments 

6 

97 

(market  value  $355,084,627; 

1991:  $320,200,268) 

347.635 

307.929 

414 , 610 

374.342 

Less:  Excess  assets  of  certified 

sinking  funds  payable  to 
hospital  districts 

8 

Accounts  payable 

45 

41 

53 

41 

$414 , 557 

$374 . 301 

PUBLIC  ACCOUNTS  1991/92 


C  167 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Sinking  funds  (continued) 

Sinking  fund  instalments  received  from  the  hospital  districts  in  respect 
of  the  debt  to  the  Authority,  together  with  the  investment  income  earned 
thereon,  are  placed  in  sinking  funds  maintained  by  the  trustee,  the 
Minister  of  Finance  and  Corporate  Relations.  These  funds  provide  for 
the  retirement  of  the  hospital  districts'  debt  and  in  turn,  for  the 
retirement  of  the  debt  of  the  Authority  at  maturity. 

Long-term  investments  consist  primarily  of  bonds  of  the  Government  of 
Canada,  various  provinces  and  Crown  corporations. 

Funds  management  fees  have  been  charged  to  the  sinking  funds  of  the 
Authority  by  the  Minister  of  Finance  and  Corporate  Relations  in 
accordance  with  Section  39(4)  of  the  Financial  Administration  Act. 

These  fees  are  based  on  the  market  value  of  sinking  fund  assets  and  are 
charged  on  a  quarterly  basis  during  the  year. 

Assets  transferred  from  sinking  funds 

Under  Section  8.1  of  the  Hospital  District  Finance  Act,  where  a  security 
is  held  by  the  Authority,  and  the  Minister  of  Finance  and  Corporate 
Relations  of  the  Province  of  British  Columbia  certifies  that  the  assets 
of  the  related  sinking  fund  are  sufficient  to  meet  all  obligations 
respecting  the  payment  of  principal  and  interest  under  the  security,  the 
body  who  issued  the  security  shall  transfer  the  assets  in  the  sinking 
fund  to  the  Authority. 

During  the  year  ended  March  31,  1992,  sinking  fund  assets,  with  a  cost 
of  $43,233,122  (1991:  $12,903,000)  were  transferred  to  the  Authority 

for  the  extinguishment  for  financial  reporting  purposes  of  the 
Authority's  term  debt  with  a  par  value  of  $41,504,000  (1991: 
$13,916,000).  After  the  transfer,  as  part  of  the  certification  process, 
the  Authority  placed  sufficient  government  guaranteed  securities  into  an 
irrevocable  trust  to  satisfy  the  scheduled  interest  and  principal 
payment  requirements  of  $41,504,000  (1991:  $13,916,000)  in  term  debt. 

Where  the  assets  of  the  sinking  fund  exceed  what  is  required  to  meet  the 
obligations  of  the  debt,  the  Authority  pays  the  excess  to  the  body  who 
issued  the  debt.  For  the  year  ended  March  31,  1992  excess  assets  paid 
were  $1,982,252  (1991:  $254,000). 

As  at  March  31,  1992  a  total  of  $110,570,000  (1991:  $76,994,000)  of 

outstanding  term  debt,  together  with  the  related  securities,  has  been 
removed  from  the  Authority's  balance  sheet  and  is  considered 
extinguished  for  financial  reporting  purposes. 


C  168 


PROVINCE  OF  BRITISH  COLUMBIA 


SCHEDULE  1 

BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 
SCHEDULE  OF  L02^S  RECEIVABLE 


AS  AT  MARCH  31^  1992 
(Unaudited) 


Regional 

Interest 

Dates 

Hospital 

Rates 

of 

In 

Thousands 

District 

% 

Maturity 

1992 

1991 

Alberni-Clayoquot 

9.06-11.59 

1996-2012 

$  4,205 

$  992 

Bulkley-Nechako 

11.24-13.30 

2000-2004 

1,531 

1,931 

Capital 

7.69-17.51 

1993-2012 

138,583 

138,875 

Cariboo 

9.04-12.57 

1996-2012 

22 , 341 

21,714 

Central  Coast 

8.77-14.16 

1997-2002 

1,728 

1,728 

Central  Fraser  Valley 

9.00-17.51 

1996-2012 

20,962 

13 , 599 1 

Central  Kootenay 

9.50-15.12 

2001-2012 

11,231 

9,45  J 

Central  Okanagan 

9.00-15.12 

1994-2012 

43,014 

35,70iH 

Columbia-Shuswap 

9.50-17.01 

2000-2012 

7 , 222 

4 , 8421 

Comox-Strathcona 

9.00-17.51 

1994-2011 

27,524 

26,74'| 

Cowichan  Valley 

9.25-13.05 

1993-2006 

3 ,426 

2,70*1 

Dewdney-Alouette 

7 . 69-15.69 

1993-2012 

25,694 

24,5ic|j 

East  Kootenay 

8.98-16.10 

1993-2012 

31,299 

28, 27  J| 

Fraser-Cheam 

9.03-15.38 

1997-2012 

29,285 

29, 02*1] 

Fraser-Fort  George 

9 . 00-17 . 01 

1994-2011 

29,315 

29,27|] 

Greater  Vancouver 

7.69-17.51 

1993-2012 

648,779 

61O,20lj 

Kitimat-Stikine 

8.98-11.25 

1993-2001 

9,918 

11, 2lJJ 

Kootenay  Boundary 

9.02-15.69 

1996-2012 

6,898 

5,19H 

Mount  Waddington 

9.61-17.00 

1999-2010 

6,362 

6, 36|| 

Nanaimo 

9.00-17.00 

1998-2012 

41,077 

34, 82|j 

North  Okanagan 

9.81-17.01 

1996-2011 

40,386 

40,8511 

Okanagan-Similkameen 

8.98-15.12 

1996-2012 

26,280 

19,9911 

Peace  River 

8.77-12.57 

1994-2012 

13,173 

14,44|| 

Powell  River 

9.06-13.70 

1996-2012 

14,851 

8,23|] 

Skeena-Qu . Charlotte 

9.04-10.50 

1996-2012 

1,865 

1,50|J 

Squamish-Lillooet 

9 . 06-14 . 16 

1997-2010 

13 , 486 

13,48|| 

Sunshine  Coast 

9.49-13 . 66 

1996-2009 

8,958 

8,42ll 

Thompson-Nicola 

7 . 69-17 . 01 

1993-2012 

44 ,407 

45,08|j 

Fort  Nelson-Liard 

8.77-11.25 

1996-2001 

3 ,710 

4.00ll 

1,277,510 

1, 193,2llj 

Health  Facilities 

Association 

7.69-16.10 

1993-2012 

116 .419 

98 . 3911 

PUBLIC  ACCOUNTS  1991/92 


C  169 


BRITISH  COLUMBIA  REGIONAL  HOSPITAL  DISTRICTS  FINANCING  AUTHORITY 


The  British  Columbia  Regional  Hospital  Districts  Financing  Authority 
was  established  on  March  23,  1967  by  the  British  Columbia  Regional 
Hospital  Districts  Financing  Authority  Act,  S.B.C.  1967,  Chapter  5, 
subsequently  revised  as  the  Hospital  District  Finance  Act.,  R. S.B.C. 
1979,  C.  179  and  amended  in  1986. 

The  Authority's  objective  is  to  borrow  funds  at  competitive  market 
interest  rates  and  to  lend  these  funds  to  Regional  Hospital  Districts 
and  Health  Facilities  Association,  thus  providing  access  to  capital 
;  markets  not  ordinarily  available  to  the  individual  participants.  Funds 
;  borrowed  by  the  Authority  are  loaned  to  the  hospital  districts  to 
I  finance  their  capital  expenditures.  The  loans  made  by  the  Authority  to 
I  the  Regional  Hospital  Districts  are  financed  by,  and  have  interest 
f  rates  and  maturity  dates  identical  to,  the  borrowing  of  the  Authority 
itself . 

During  the  year  ended  March  31,  1992,  $143.8  million  was  borrowed  for 
an  average  term  of  15  years  at  an  average  interest  rate  of  9.76%  from 
the  Province  of  British  Columbia. 

The  proceeds  of  these  debt  issues  were  loaned  as  follows; 


Regional  Hospital  Districts 
Health  Facilities  Association 


$119.3  million 
24.5  million 


i]  Total  borrowings  by  the  Authority  as  at  March  31,  1992  were 
i  $1,393.9  million  and  the  amount  outstanding  net  of  sinking  funds  was 
I  $979.4  million.  The  Province  of  British  Columbia  has  unconditionally 
guaranteed  the  payment  of  principal  and  interest  on  $950.2  million  of 
the  debt  of  the  Authority. 


C  170 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  School  Districts  Capital  Financing  Authority 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)  387-6803 
Fax  (604)  387-1230 


To  the  Members  of  the  British  Columbia  School  Districts 
Capital  Financing  Authority,  and 

To  the  Minister  of  Finance  and  Corporate  Relations, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  British  Columbia  School  Districts  Capital 
Financing  Authority  as  at  March  31,  1992  and  the  statement  of  financing  and 
lending  activities  and  statement  of  changes  in  sinking  funds  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the  Authority's  management. 
My  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Authority  as  at  March  31,  1992  and  the  results  of  its 
operations  and  changes  in  sinking  funds  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


Auditor  General 


Victoria,  British  Columbia 
June  23,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  171 


STATEMENT  OF  RESPONSIBILITY 


To  the  Members  of  the 

British  Columbia  School  Districts 
Capital  Financing  Authority 

Responsibility  for  the  integrity  and  objectivity  of  the 
accompanying  financial  statements  rests  with  the  Authority. 
The  financial  statements  are  prepared  by  the  Provincial 
Treasury,  Ministry  of  Finance  and  Corporate  Relations  in 
accordance  with  generally  accepted  accounting  principles  in 
a  manner  consistent  with  the  previous  year.  Policies  and 
procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are 
safeguarded  and  financial  records  properly  maintained  to 
provide  reliable  financial  statements. 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial 
statements. 


Director 

Banking/Cash  Management 
Provincial  Treasury 


Victoria,  British  Columbia 
June  24,  1992 


C  172 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 

BALANCE  SHEET 
AS  AT  MARCH  31,  1992 
ASSETS 


In  Thousands 


Loans  receivable  (note  3) 

Less:  Sinking  funds  (note  5) 


Accrued  interest  receivable 


1992 

$1,722,688 

578,741 

1,143, 947 
57 , 687 

$1,201,634 


LIABILITIES 


1991 

$1,518,544 
564 , 835 

953,709 

50,808 

$1,004 , 517 


Term  debt  (note  4)  $1,722,688 

Less;  Sinking  funds  (note  5)  578,741 

1,143, 947 

Accrued  interest  payable  57 , 687 

$1,201,634 


$1,518,544 

564,835 

953,709 

50,808 

$1 , 004 , 517 


The  six  accompanying  notes  are  an  integral  part 
of  these  financial  statements. 

Approved  by  the  Authority: 


Michael  Costello,  Secretary 


PUBLIC  ACCOUNTS  1991/92 


C 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
STATEMENT  OF  FINANCING  AND  LENDING  ACTIVITIES 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


In  Thousands 


1992 


Funds  generated  from 

Interest  on  loans  receivable 
Debentures  issued 


$179,699 
292 , 226 


Assets  transferred  from 

sinking  funds  to  discharge  loans 
receivable  and  interest  obligations 
-  at  cost  (note  6)  91,170 

Excess  of  value  of  loans  receivable 
discharged  over  cost  of  assets 
transferred  from  sinking  funds  _ - 

$563,095 

iFunds  applied  to 

Interest  on  term  debt  $179,699 


Loans  issued 

Repayment  of  term  debt  (note  6) 

Extinguishment  of  term  debt 
for  financial  reporting 
purposes  (note  6) 

Excess  cost  of  assets  transferred 
from  sinking  funds  over  loans 
receivable  discharged 


292 , 226 
11,103 


77,074 


2,993 

$563 , 095 


1991 


$159,910 

223,462 


104,172 


9 , 883 

$497 , 427 


$159,910 

223,462 

16,200 

97,855 


$497,427 


C  174 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
STATEMENT  OF  CHANGES  IN  SINKING  FUNDS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Increase 

Instalments 
Investment  income 


Decrease 

Funds  management  fees  (note  5) 

Excess  assets  of  certified 
sinking  funds  (note  6) 

Assets  transferred  to  the 

Authority  -  at  cost  (note  6) 

Accrued  interest  on  debt 

extinguished  for  financial 
reporting  purposes 


In  Thousands 
1992  1991 


$  36,881 
78 . 191 

115 . 072 

233 

9,763 

91,170 


101.166 

13,906 
564 . 835 

$578 .741 


$  35,328 
62 .305 

97 . 633 

231 

12,837 

104,172 

4 . 065 

121.305 

(23,672) 
588 . 507 

$564 .835 


Net  increase  (decrease)  in  Sinking  Funds 
Sinking  Funds,  Beginning  of  Year 
Sinking  Funds,  End  of  Year 


PUBLIC  ACCOUNTS  1991/92 


C  175 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  The  Authority 

The  Authority  was  established  by  the  School  District  Capital  Finance 
Act.  R.S.B.C.  1979.  Chapter  376.  as  amended.  Section  2  of  the  Act 
states  that  "the  purpose  of  the  Authority  is  to  lend  money  to  boards 
of  school  trustees  of  the  school  districts  created  under  the  School 
Act  to  finance  their  capital  expenditures". 

The  loans  made  by  the  Authority  to  school  districts  are  financed  by, 
and  have  interest  rates  and  maturity  dates  identical  to,  the 
borrowing  of  the  Authority  itself. 

2.  Significant  accounting  policies 

These  financial  statements  are  prepared  on  the  basis  of  generally 
accepted  accounting  principles. 

a)  Sinking  fund  investments 

i)  Units  in  Province  of  British  Columbia  Pooled  Investment 
Portfolios  are  carried  at  the  lower  of  cost,  adjusted  by 
income  attributed  to  the  units,  or  market  value. 

ii)  Long-term  investments  are  valued  at  cost  adjusted  by 
amortization  of  discounts  and  premiums  on  a  constant  yield 
basis  over  the  remaining  terms  of  the  investments. 

3.  Loans  receivable 

Loans  receivable  have  early  redemption  provisions  similar  to  those  of 
the  related  debentures  issued  by  the  Authority. 


C  176 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


4 .  Term  debt 


In  Thousands 


1992 

Held  by: 

General  Public 

16.875%  debenture,  due  1991  $ 

Canada  Pension  Plan  Investment  Fund 
8.83%  to  17.51%  debentures, 

due  1996  through  2009  1,084,588 

Province  of  British  Columbia 
Pension  Funds 

12.75%  debenture,  due  1992  25,000 

Province  of  British  Columbia 

Boards,  Agencies  and  Commissions 

10.00%  debenture,  due  1996  4,700 

Province  of  British  Columbia 
9.26%  to  11.33%  debentures, 

due  1998  through  2012  '  603,100 

British  Columbia  School  Districts  Capital 
Financing  Authority  Sinking  Fund 

10.00%  debenture,  due  1996  5,300 


1991 


$  11,008 


1,161,662 


25,000 


4,700 


310,874 


5,300 


$1,722 , 688 


$1,518,544 


Certain  debentures  held  by  the  Canada  Pension  Plan  Investment  Fund 
$1,084,588,000  (1991:  $1,161,662,000)  and  by  the  Province  of  British 

Columbia  $364,361,000  (1991:  $224,174,000)  are  redeemable  in  whole  or 

in  part  before  maturity,  on  six  months*  notice,  at  the  option  of  the 
holders  of  the  debt,  subject  to  certain  restrictions. 

Debentures  maturing  in  the  next  five  fiscal  years  are  as  follows: 

In  Thousands 


1993 

$  25,000 

1994 

- 

1995 

- 

1996 

26,129 

1997 

138,642 

PUBLIC  ACCOUNTS  1991/92 


C  177 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
I  NOTES  TO  FINANCIAL  STATEMENTS 

I 

I 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


I  4.  Term  debt  (continued) 

I  Repayment  of  these  debentures  will  be  fully  funded  by  sinking  fund 

assets. 

!  Sinking  fund  instalments  due  in  the  next  five  fiscal  years  are  as 

!  follows: 

In  Thousands 


1993 

$42,004 

1994 

40,278 

1995 

40,278 

1996 

40,278 

1997 

39,231 

The  Province  of  British  Columbia  has  unconditionally  guaranteed  the 
payment  of  principal  and  interest  on  $1,119,588,000 
;  (1991:  $1,207,669,650)  of  the  debt  of  the  Authority. 

!  .  . 

5.  Sinking  funds  In  Thousands 


1992 

1991 

Cash 

$  350 

$  233 

Accrued  interest 

9,871 

13 , 070 

Units  in  Province  of  British  Columbia 

Pooled  Investment  Portfolios 

46,967 

115,752 

Accounts  receivable 

30 

26 

Long-term  investments 

(market  value  $529,821,225; 

1991:  $463,838,716) 

527.070 

447 .350 

584 . 288 

576,431 

Less:  Excess  assets  of  certified  sinking 

funds  payable  to  school  districts 

- 

11,539 

Accounts  payable  for  investments 

purchased 

5,492 

Accounts  payable 

55 

57 

5 . 547 

11,596 

$578,741 

$564 .835 

Long-term  investments  include  $5,300,000  (1991:  $5,300,000)  par 

value  of  the  debenture  issued  by  the  Authority. 


C  178 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


5.  Sinking  funds  (continued) 

Sinking  fund  instalments  received  from  the  school  districts  in  respect 
of  the  debt  to  the  Authority,  together  with  the  investment  income 
earned  thereon,  are  placed  in  sinking  funds  maintained  by  the  trustee, 
the  Minister  of  Finance  and  Corporate  Relations.  These  funds  provide 
for  the  retirement  of  school  districts'  debt  and,  in  turn,  for  the 
retirement  of  the  debt  of  the  Authority  at  maturity. 

Long-term  investments  consist  primarily  of  bonds  of  the  Government  of 
Canada,  various  provinces  and  Crown  corporations. 

Funds  management  fees  have  been  charged  to  the  sinking  funds  of  the 
Authority  by  the  Minister  of  Finance  and  Corporate  Relations  in 
accordance  with  Section  39(4)  of  the  Financial  Administration  Act. 
These  fees  are  based  on  the  market  value  of  sinking  fund  assets  and 
are  charged  on  a  quarterly  basis  during  the  year. 

6.  Assets  transferred  from  sinking  funds 

Under  Section  8.1  of  the  School  District  Capital  Finance  Act,  where  a 
security  of  a  school  board  is  held  by  the  Authority,  and  the  Minister 
of  Finance  and  Corporate  Relations  of  the  Province  of  British  Columbia 
certifies  that  the  assets  of  the  related  sinking  fund  are  sufficient 
to  meet  all  obligations  respecting  the  payment  of  principal  and 
interest  under  the  security,  the  board  who  issued  the  security  shall 
transfer  the  assets  in  the  sinking  fund  to  the  Authority. 

During  the  year  ended  March  31,  1992,  sinking  fund  assets,  with  a  cost 
of  $91,169,759  (1991:  $104,172,000)  were  transferred  to  the  Authority 

for  the  repayment  of  the  Authority's  term  debt  with  a  par  value  of 
$11,102,760  (1991:  $16,200,000)  and  the  extinguishment  for  financial 

reporting  purposes  of  the  Authority's  term  debt  with  a  par  value  of 
$77,074,000  (1991:  $97,855,000).  After  the  transfer,  as  part  of  the 

certification  process,  the  Authority  placed  sufficient  government 
guaranteed  securities  into  an  irrevocable  trust  to  satisfy  the 
scheduled  interest  and  principal  payment,  requirements  of  $77,074,000 
(1991:  $97,855,000)  in  term  debt. 

Where  the  assets  of  the  sinking  fund  exceed  what  is  required  to  meet 
the  obligations  of  the  debt,  the  Authority  pays  the  excess  to  the  body 
who  issued  the  debt.  For  the  year  ended  March  31,  1992  excess  assets 
paid  were  $9,763,000  (1991:  $12,837,000). 

As  at  March  31,  1992  a  total  of  $254,662,000  (1991:  $196,689,000)  of 

outstanding  term  debt,  together  with  the  related  securities,  has  been 
removed  from  the  Authority's  balance  sheet  and  is  considered 
extinguished  for  financial  reporting  purposes. 


PUBLIC  ACCOUNTS  1991/92 


C  179 


SCHEDULE  1 

BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
SCHEDULE  OF  LOANS  RECEIVABLE 
AS  AT  MARCH  31,  1992 
(Unaudited) 


School 

Interest 

Dates  of 

In 

Thousands 

[No. 

District 

Rates  % 

Maturity 

1992 

1991 

::  1 

Fernie 

8.73-17.51 

1992-2012 

$  24,441 

$  25,570 

2 

Cranbrook 

8.77-16.53 

1992-2012 

11,043 

10,873 

i  3 

Kimberley 

8.73-15.93 

1992-2012 

6,991 

6,851 

i  4 

Windermere 

8.88-16.10 

1992-2011 

5,929 

6,009 

7 

Nelson 

8.73-17.01 

1992-2012 

16,605 

15,702 

9 

Castlegar 

8.73-17.01 

1992-2012 

12,910 

11,598 

10 

Arrow  Lakes 

9.00-13.80 

1992-2011 

9,124 

9,224 

11 

Trail 

8.88-15.54 

1992-2012 

9,865 

8,079 

12 

Grand  Forks 

8.83-14 . 16 

1992-2012 

10,154 

9,762 

13 

Kettle  Valley 

8.73-14.51 

1992-2011 

4,249 

4 , 172 

14 

South  Okanagan 

8.88-15.38 

1992-2011 

9,961 

9,680 

fl5 

Penticton 

8.83-17.51 

1992-2012 

14,530 

12,160 

Keremeos 

8.88-15.12 

1992-2012 

4 , 859 

4 ,736 

Il7 

Princeton 

8.88-17.51 

1992-2011 

5,432 

5,657 

|18 

Golden 

8.88-15.69 

1992-2012 

12,923 

8,106 

19 

Revelstoke 

8.88-16.10 

1992-2011 

10,107 

10,576 

21 

Armstrong- 

Spallumcheen 

8.73-17.51 

1992-2012 

6,533 

6,733 

22 

Vernon 

8.73-17.51 

1992-2012 

21,693 

19,962 

|23 

Central  Okanagan 

8.77-16.53 

1992-2012 

51,402 

50,818 

|24 

Kamloops 

8.73-17.51 

1992-2012 

39 , 194 

39,805 

26 

North  Thompson 

8.93-13.09 

1992-2011 

3 , 054 

4,604 

27 

Cariboo-Chi Icot in 

8.77-17.51 

1992-2012 

25,845 

25,905 

128 

Quesnel 

8.83-16.10 

1996-2012 

16,526 

17,835 

29 

Lillooet 

9.00-13.69 

1992-2011 

9,238 

9,156 

30 

South  Cariboo 

8.88-13 .20 

1992-2012 

3,030 

3 , 023 

31 

Merritt 

9.04-15.25 

1992-2012 

4 , 548 

4,880 

i32 

Hope 

9.04-13.43 

1996-2012 

6,124 

5,706 

33 

Chilliwack 

8.83-17.01 

1992-2012 

20,471 

12,784 

34 

Abbotsford 

8.77-17.51 

1992-2012 

72,029 

65,741 

35 

Langley 

8.73-17.51 

1992-2012 

94,219 

70,401 

36 

Surrey 

8.73-17.51 

1992-2012 

192,224 

152,540 

37 

Delta 

8.83-17.51 

1992-2012 

26,172 

27,846 

38 

Richmond 

8.73-17.51 

1992-2012 

58,446 

42,917 

39 

Vancouver 

8.77-17.51 

1992-2012 

50,910 

48,950 

j40 

New  Westminster 

8.83-16.53 

1992-2012 

13 , 236 

12,998 

41 

Burnaby 

8.73-17.51 

1992-2012 

26,457 

17,347 

42 

Maple  Ridge 

8.83-17.01 

1992-2012 

73 , 889 

55,747 

143 

Coquitlam 

8.73-17.51 

1992-2012 

61,352 

48,199 

;44 

North  Vancouver 

8.73-13.80 

1996-2012 

32,750 

34,770 

West  Vancouver 

8.73-17.51 

1992-2011 

7 , 090 

6,963 

46 

Sunshine  Coast 

8.73-17.01 

1992-2012 

17,462 

17,487 

;47 

Powell  River 

8.83-14.81 

1992-2012 

7,774 

6,946 

i48 

Howe  Sound 

8.77-17.00 

1992-2012 

14 , 910 

12,767 

,49 

> 

II 

Central  Coast 

8 . 99-15.50 

1992-2010 

2,704 

2,760 

it 


C  180 


PROVINCE  OF  BRITISH  COLUMBIA 


SCHEDULE  1 
(Continued) 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 
SCHEDULE  OF  LOANS  RECEIVABLE 


AS  AT  MARCH  31,  1992 
(Unaudited) 


School 

Interest 

Dates  of 

In 

Thousands 

No. 

District 

Rates  % 

Maturity 

’  1992 

1991 

50 

Queen  Charlotte 

8.77-13.30 

1992-2010 

$ 

2,793 

$  3,09: 

52 

Prince  Rupert 

8.99-17.01 

1992-2012 

26,112 

20, 51£ 

54 

Buckley  Sound 

8.83-16.53 

1992-2012 

14,662 

14 , 14S 

55 

Burns  Lake 

8.73-17.51 

1992-2012 

10,786 

10,92: 

56 

Nechako 

8.77-17.51 

1992-2011 

13 , 573 

14, 60S 

57 

Prince  George 

8.83-17.51 

1992-2012 

62,758 

66,04] 

59 

Peace  River  South 

8.73-17.51 

1992-2011 

24 , 593 

24,552 

60 

Peace  River  North 

8.73-15.54 

1992-2012 

29 ,307 

30, 37( 

61 

Greater  Victoria 

8.93-17.51 

1992-2012 

41,937 

35,95] 

62 

Sooke 

8.73-15.54 

1992-2012 

24,219 

20,25: 

63 

Saanich 

8.73-15.54 

1992-2012 

17,892 

13,492 

64 

Gulf  Islands 

8.73-15.38 

1992-2012 

9,656 

8,832 

65 

Cowichan 

8.83-17.51 

1992-2012 

14,904 

15,31^ 

66 

Lake  Cowichan 

8.83-13.30 

1992-2012 

7,830 

5, 55( 

68 

Nanaimo 

8.73-15.54 

1992-2012 

52 , 571 

37, 30( 

69 

Qualicum 

8.83-17.51 

1992-2012 

24,243 

23,22: 

70 

Alberni 

8.73-16.10 

1992-2012 

5,910 

6, 2o: 

71 

Courtenay 

9.04-17.01 

1992-2012 

24,314 

21, 8i: 

72 

Campbell  River 

8.88-16.10 

1992-2012 

24 , 104 

23 , 63- 

75 

Mission 

8.73-17.51 

1992-2012 

39,871 

34,37: 

76 

Agassiz-Harrison 

8.83-16.10 

1992-2009 

1,799 

1,79: 

77 

Summer land 

8.83-13.43 

1992-2012 

5,094 

4,781 

80 

Kitimat 

8.73-15.38 

1992-2012 

6,304 

5,69' 

81 

Fort  Nelson 

8.83-17.51 

1992-2012 

5,849 

5,701 

84 

Vancouver  Island 

West 

8.83-17.01 

1992-2012 

3,190 

3,04( 

85 

Vancouver  Island 

North 

8.73-15.54 

1992-2012 

17,469 

16,771 

86 

Creston-Kaslo 

8.88-17.00 

1992-2012 

14 , 022 

13,94 

87 

Stikene 

9.00-17.00 

1992-2012 

15,634 

10,25: 

88 

Terrace 

8.83-15.93 

1992-2012 

26,251 

17,18 

89 

Shuswap 

8.83-15.69 

1992-2012 

24 , 381 

23,34 

92 

Nisga '  a 

9.41-13.20 

1999-2012 

2,255 

1.55 

1,722,688  1,518,63 


_ ^  _ (9_ 

$1,722 , 688  $1,518,54 


Provision  for  refund  of  exchange  gain  (note  7) 


PUBLIC  ACCOUNTS  1991/92 


C  181 


BRITISH  COLUMBIA  SCHOOL  DISTRICTS  CAPITAL  FINANCING  AUTHORITY 


The  British  Columbia  School  Districts  Capital  Financing  Authority  was 
I  established  on  March  21,  1963  by  the  British  Columbia  School  Districts  Capital 
Financing  Authority  Act,  1963  Chapter  6,  subsequently  revised  as  the  School 
(District  Capital  Finance  Act  R.S.B.C.  1979,  C.376  and  amended  in  1986. 

The  Authority's  objective  is  to  borrow  funds  at  competitive  market  interest 
rates  and  to  lend  these  funds  to  school  districts,  thus  providing  access  to 
capital  markets  not  ordinarily  available  to  the  individual  districts.  Funds 
borrowed  by  the  Authority  are  loaned  to  the  school  districts  to  finance  their 
;  capital  expenditures.  The  loans  made  by  the  Authority  to  the  School  Districts 
i:  are  financed  by,  and  have  interest  rates  and  maturity  dates  identical  to,  the 
(borrowing  of  the  Authority  itself. 

■I 

jburing  the  year  ended  March  31,  1992,  $292.2  million  was  borrowed  for  an 
!  average  term  of  18  years  at  an  average  interest  rate  of  9.82%  from  the  Province 
bf  British  Columbia  Fiscal  Agency  Loan  Program. 

ji'otal  borrowings  by  the  Authority  at  March  31,  1992  were  $1,722.7  million 
[and  the  amount  outstanding  net  of  sinking  funds  was  $1,143.9  million.  The 
(i  Province  of  British  Columbia  has  unconditionally  guaranteed  the  payment  of 
^principal  and  interest  on  $1,119.6  million  of  the  debt  of  the  Authority. 


C  182 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Steamship  Company  (1 975)  Ltd. 


ill  Ernst  &Younc 


AUDITORS’  REPORT 


To  the  Shareholder  of 

British  Columbia  Steamship  Company  (1975)  Ltd. 

We  have  audited  the  balance  sheet  of  British  Columbia  Steamship  Company 
(1975)  Ltd.  as  at  December  31,  1991  and  the  statements  of  loss  and  surplus,  and 
cash  flows  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  company’s  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  company  as  at  December  31,  1991  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Victoria,  Canada, 
May  28,  1992. 


Chartered  Accountants 


PUBLIC  ACCOUNTS  1991/92 


British  Columbia  Steamship  Company  (1975)  Ltd. 


BALANCE  SHEET 


As  at  December  31 


1991  1990 

$ $ 


ASSETS 

Current 

Cash  and  investment  deposits 

Accounts  receivable 

Prepaid  leases 

2,536,562 

8,422 

28,500 

4,704.696 

26,645 

Total  current  assets 

2,573,484 

4,731,341 

Equipment  under  capital  lease 

_ 

548.237 

Accumulated  depreciation 

— 

319,256 

— 

228,981 

2,573,484 

4,960,322 

LIABILITIES,  CAPITAL  STOCK  AND  SURPLUS 
Current  liabilities 

Accounts  payable  and  accrued  liabilities 

114,738 

112,988 

Severance  and  termination  pay  accrual 

— 

1,800,000 

Current  ix>rtion  of  obligation  under  capital  lease 

— 

247,982 

Total  current  liabilities 

114,738 

2,160,970 

Capital  stock  and  surplus 

Capital  stock 

5  common  shares  [note  1] 

5 

5 

Surplus 

2,458,741 

2.799347 

Total  capital  stock  and  surplus 

2,458,746 

2,799352 

2,573,484 

4,960,322 

See  accompanying  notes 
Approved  by  the  Directors: 


C  183 


Director 


C  184 


PROVINCE  OF  BRITISH  COLUMBIA 

British  Columbia  Steamship  Company  (1975)  Ltd. 


STATEMENT  OF  LOSS  AND  SURPLUS 


Year  ended  December  31 


1991 

1990 

$ 

$ 

REVENUE 

Casino 

— 

275,160 

Equipment  leases  [note  2] 

62,582 

333,088 

Interest 

277,001 

335,198 

Miscellaneous  revenue 

3,781 

5,288 

Gain  on  disposal  of  equipment  under  capital  lease 

19,385 

103,332 

362,749 

1,052,066 

EXPENSES 

Severance  and  termination  pay 

— 

1,800,000 

Disposition  costs 

3864)24 

— 

Administration  costs 

75,264 

168,793 

Property  taxes  [note  3J 

123,982 

— 

Property  leases  [note  3] 

52,818 

— 

Interest 

9,888 

55,152 

Depreciation 

54,479 

271,185 

703,355 

2,295,130 

Net  loss  for  the  year 

(340,606) 

(1,243,064) 

Surplus,  beginning  of  year 

2,799,347 

4,042,411 

Surplus,  end  of  year 

2,458,741 

2,799,347 

See  accompanying  notes 


PUBLIC  ACCOUNTS  1991/92 


C  185 


British  Columbia  Steamship  Company  (1975)  Ltd. 

STATEMENT  OF  CASH  FLOWS 


Year  axled  December  31 


1991 

$ 

1990 

$ 

OPERATING  ACTIVITIES 

Net  loss  for  the  year 

(340,606) 

(1,243,064) 

Add  (deduct)  charges  not  requiring  a  current  cash  payment 
Dqjieciation 

54,479 

271,185 

Gain  on  disposal  of  equipment  under  capital  lease 

(19,385) 

(103332) 

Net  change  in  non-cash  working  Ccq)ital  balances 
related  to  operations 

Prepaid  leases 

(28,500) 

Accounts  receivable 

18,223 

(26,645) 

Accounts  payable  and  accrued  liabilities 

1,750 

(279,162) 

Severance  and  termination  pay 

(1,800,000) 

1,800,000 

Investment  in  British  Columbia  Stena  Line  Ltd. 

— ■ 

10 

Cash  provided  by  (used  in)  operating  activities 

(2,114,039) 

418,992 

INVESTING  ACTIVITIES 

Decrease  in  mortgage  receivable 

— 

2,000,000 

Purchase  of  prc^)erty,  plant  and  equipment 

— 

(514378) 

Proceeds  firom  disposal  of  property  under  capital  lease 

193,887 

619,144 

Cash  provided  by  investing  activities 

193,887 

2,104.866 

FINANCING  ACTIVITIES 

Capital  lease  obligation 

(247,982) 

(374,974) 

Cash  used  in  financing  activities 

(247,982) 

(374,974) 

Net  increase  (decrease)  in  cash  during  the  year 

(2,168,134) 

2,148,884 

Cash,  beginning  of  year 

4,704,696 

2,555,812 

Cash,  end  of  year 

2,536,562 

4,704,696 

See  accompanying  notes 


C  186 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Steamship  Company  (1975)  Ltd. 

NOTES  TO  FINANCIAL  STATEMENTS 


December  31, 1991 


GENERAL 

The  company  is  incorporated  under  the  Canada  Business  Corporation  Act  and  is  a  Crown 
Corporation  of  the  Province  of  British  Columbia. 

SIGNIFICANT  ACCOUNTING  POLICIES 
Translation  of  Foreign  Currency 

Monetary  assets  and  liabilities  are  translated  into  Canadian  dollars  at  rates  of  exchange  in  effect  at 
the  year  end. 

Revenues  and  expenses  are  translated  into  Canadian  dollars  at  the  average  rate  of  exchanges  for  the 
year,  with  the  exception  of  depreciation,  which  reflects  historic  rates  used  for  the  related  assets. 

Equipment  under  capital  lease 

Equipment  under  capital  lease  is  stated  at  the  present  value  of  the  minimum  lease  payments.  This 
present  value  less  estimated  salvage  value  is  being  depreciated  on  a  straight-line  basis  over  the 
estimated  life  of  the  leased  assets. 

1.  CAPITAL  STOCK 

The  company  is  limited  by  its  articles  to  issuing  a  maximum  of  55,000  common  shares. 

2.  CASINO  EQUIPMENT  LEASE  PAYMENTS 

British  Columbia  Stena  Line  Ltd.,  agreed  to  make  lease  payments  on  behalf  of  the  company.  In 
1991  these  lease  payments  totalled  $62,582  [1990  -  $333,088]. 

3.  PROPERTY  LEASE  PAYMENTS 

Effective  July  1,  1991,  the  company  has  re-assumed  direct  responsibility  for  payment  of  lease 
costs  for  its  leases  of  the  Ogden  Point  and  Belleville  Street  properties.  The  expected  minimum 
lease  payments  are  as  follows: 


PUBLIC  ACCOUNTS  1991/92 


C  187 


British  Columbia  Steamship  Company  (1975)  Ltd. 

NOTES  TO  FINANCIAL  STATEMENTS 


December  31, 1991 


3.  PROPERTY  LEASE  PAYMENTS  (continued) 


$ 


1992 

88,687 

1993 

88,687 

1994 

80,087 

1995 

80,087 

1996 

80,087 

The  lease  agreements  also  require  the  company  to  pay  property  taxes  on  the  leased  properties. 


C  188 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Systems  Corporation 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


Third  Floor,  Royal  Bank  Building 
707  Fort  Street 

Victoria,  British  Columbia,  Canada 
V8W  3G3 


Telephone  (604)  382-8251 
Telefax  (604)  382-0622 


AUDITORS*  REPORT 


The  Honourable  Lois  Boone 
Minister  of  Government  Services 
Province  of  British  Columbia 

We  have  audited  the  balance  sheet  of  British  Columbia  Systems  Corporation  as  at  March  31,  1992 
and  the  statements  of  income  and  retained  earnings  and  changes  in  financial  position  for  the  year 
then  ended.  These  financial  statements  are  the  responsibility  of  the  Corporation's  management.  Our 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of 
the  Corporation  as  at  March  31,  1992  and  the  results  of  its  operations  and  the  changes  in  its  financial 
position  for  the  year  then  ended  In  accordance  with  generally  accepted  accounting  principles. 


Chartered  Accountants 


Victoria,  Canada 
May  28,  1992 


Member  Firm  of 

Klynveld  Peat  Marwick  Goerdeler 


PUBLIC  ACCOUNTS  1991/92 


C  189 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Balance  Sheet 
(expressed  in  thousands) 


March  31 


Assets 

1992 

-.1991 

Current  assets 

Cash  and  short-term  investments 

$  16,291 

$ 

3,557 

Accounts  receivable 

11,237 

8,537 

Prepaid  expenses 

ZA12. 

1.3Q3 

a9..g41 

.  ,.13.397 

Fixed  assets  (note  2) 

Land 

4,600 

4,600 

Building 

30,188 

29,072 

Computer,  telecommunications  and  ancillary  equipment 

113,732 

98,445 

Furniture  and  fixtures 

2,997 

2,289 

Leasehold  improvements 

ZI2 

212 

151,789 

134,678 

Accumulated  amortization 

63.034 

71.677 

8.8. 755 

63.001 

Other  assets 

Deferred  bond  discount  and  issue  costs 

5Z 

17 

$  118,453 

$ 

76,415 

Liabilities  and  Retained  Earnings 

Current  liabilities 

Note  payable,  Province  of  British  Columbia 

$ 

$ 

1,500 

Accounts  payable  and  accrued  liabilities 

22,408 

16,981 

Deferred  revenue 

6,868 

3,046 

Dividends  payable 

5,000 

- 

Current  portion  of  long-term  debt  (note  4) 

Lease  capitalization 

6,812 

- 

Other 

885 

929 

Contractual  liability  for  computer  equipment 

- 

3.366 

ILm 

25.822 

Long-term  debt  (note  4) 

Lease  capitalization 

15,014 

- 

Other 

29.J58 

31.280 

4,4.667 

31.28Q 

Retained  earnings  (note  6) 

81.813 

19.313 

$  118,453 

$ 

76,415 

Commitments  (note  5) 
Contingency  (note  8) 


See  accompanying  notes  to  financial  statements. 


C  190 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Statement  of  Income  and  Retained  Earnings 
(expressed  in  thousands) 

Year  ended  March  31 
1^  1991 


Revenue  (note  9) 


Telecommunications 

$  74,617 

$ 

67,653 

Processing 

57,375 

52,076 

Labour 

34,085 

30,066 

Interest  and  other 

1.983 

msjm 

1.303 

-151. 098 

Expenses 

Employee 

53,414 

43,723 

Facilities  management  fees 

4,964 

4,128 

Administrative  and  general 

9,390 

7,090 

Equipment  rental  and  maintenance 

56,163 

58,729 

Amortization 

24,987 

25,423 

Loss  on  disposal  of  fixed  assets 

224 

1,419 

Interest  (note  4) 

918 

150.060 

_ 

141.479 

Income  before  net  building  operating  costs  and 

contribution  from  the  Province  of  British  Columbia 

18,000 

9,619 

Net  building  operating  costs 

(4,300) 

(3,694) 

Contribution  from  the  Province  of  British  Columbia 

3.8QQ 

3.8QQ 

Net  income  (note  6) 

17,500 

9,725 

Retained  earnings,  beginning  of  year 

19,313 

15,381 

Dividends 

(5.000) 

.  i^jm 

Retained  earnings,  end  of  year 

$  31,813 

$ 

19,313 

Research  equipment  donation  (note  10) 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Statement  of  Changes  in  Financial  Position 
(expressed  in  thousands) 


Year  ended  March  31 
1992_ 1991 


Cash  provided  by  (used  for): 


Operations 


Net  income 

$  17,500 

$  9,725 

Items  not  involving  cash 

Amortization 

25.764 

26,170 

Deferred  bond  discount  and  issue  costs 

(40) 

44 

Loss  on  disposal  of  fixed  assets 

674 

1,419 

Change  in  non-cash  operating  working  capital 

1XLZ37 

2.8.59. 

51.635 

40.217 

Financing 

Additions  to  long-term  debt 

39,416 

— 

Long-term  debt  reductions 

(19,262) 

(2,054) 

Short-term  borrowings,  net  of  repayments 

(1,500) 

(489) 

Change  in  contractual  liability  for  computer  equipment 

f3.366) 

2.186 

15.238 

(3521 

Investments 

Additions  to  fixed  assets 

(66,673) 

(42,679) 

Proceeds  from  disposal  of  fixed  assets 

14.484 

11.438 

(52.1891 

(31.241) 

Dividends 

(5.0001 

f5.7931 

Increase  in  cash 

12,734 

2,826 

Cash  and  short-term  investments,  beginning  of  year 

3  557 

731 

Cash  and  short-term  investments,  end  of  year 

$  16,291 

$  3,557 

See  accompanying  notes  to  financial  statements. 


C  192 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Notes  to  Financial  Statements 
Year  ended  March  31,  1992 

General 

British  Columbia  Systems  Corporation,  established  in  1977  as  a  Crown  Corporation  of  the  Province  of 
British  Columbia  by  the  enactment  of  the  System  Act,  has  a  mandate  to  advance  the  effective  and 
efficient  use  of  information  systems  in  the  British  Columbia  public  sector.  As  a  service  organization 
within  government,  British  Columbia  Systems  Corporation  provides  shared  computer  processing, 
data  and  voice  communication,  information  access  and  selected  professional  services  on  a 
competitive  basis,  In  1991/92,  the  Corporation  received  94%  of  its  revenues  from  Provincial 
Government  Ministries,  with  the  balance  from  other  government  entities. 

1  .  Significant  accounting  policies 

(a)  Statement  presentation 

As  prescribed  by  Section  9(6)  of  the  System  Act,  the  financial  statements  of  the  Corporation 
are  prepared  in  accordance  with  generally  accepted  accounting  principles. 

(b)  Accrual  accounting 

The  accrual  method  of  accounting  is  used  in  the  preparation  of  these  financial  statements. 
Accordingly,  revenues  are  recorded  in  the  period  they  are  earned  and  expenses  are 
recorded  in  the  period  they  are  incurred. 

(c)  Fixed  assets 

The  Corporation  leases  some  of  its  computer  equipment.  Certain  of  these  leases,  however, 
transfer  the  benefits  and  risks  incident  to  ownership  to  the  Corporation.  In  such  cases,  as 
more  fully  described  in  notes  2  and  4,  the  leases  have  been  capitalized. 

Fixed  assets  are  recorded  at  cost  with  the  exception  of  the  land,  building  and  building 
equipment,  which  are  recorded  at  appraised  value  plus  subsequent  additions  at  cost.  The 
appraisal  was  prepared  on  January  18,  1989  and  was  based  on  a  combination  of  the  income 
capitalization  and  the  cost  summation  methods.  The  appraisal  resulted  in  a  reduction  in  the 
carrying  value  of  the  related  assets  and  in  net  income  for  that  year. 

Fixed  assets  are  amortized  over  their  estimated  useful  lives  as  follows: 

Building  Over  thirty  years  on  a  straight-line  basis 

Building  equipment  Over  ten  years  on  a  straight-line  basis 

Computer  processors  Over  terms  up  to  four  years  on  a  straight-line  basis 

Other  computer,  telecommunications 

and  ancillary  equipment  Over  terms  up  to  five  years  on  a  straight-line  basis 

Furniture  and  fixtures  Over  ten  years  on  a  straight-line  basis 

Leasehold  improvements  Over  terms  of  leases  on  a  straight-line  basis 

In  1991/92,  the  estimated  useful  life  of  certain  telecommunication  devices,  such  as 
telephone  sets  and  modems  with  a  value  of  less  than  $2,000  per  unit,  was  reviewed  and 
based  on  this  review,  the  estimated  useful  life  was  changed  from  one  to  three  years. 


PUBLIC  ACCOUNTS  1991/92 


C  193 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Notes  to  Financial  Statements,  page  2 
Year  ended  March  31,  1992 

1  .  Significant  accounting  policies  (continued) 

(d)  Revenue  recognition 

Revenue  from  client  use  of  corporate  resources  is  recognized  as  the  services  are  performed. 
Revenue  from  fixed  price  contracts  is  recognized  over  the  terms  of  the  respective  contracts. 

(e)  Federal  and  provincial  taxes 

The  Corporation  is  exempt  from  Corporate  Income  Taxes  and  Is  not  subject  to  the  Goods  and 
Services  Tax  that  came  into  effect  January  1 ,  1991 . 

(f)  Sinking  funds 

Payments  made  to  sinking  funds  with  respect  to  retirement  provisions  of  the  sinking  fund 
bonds  and  debentures  are  netted  against  related  debt  until  such  time  as  the  bonds  or 
debentures  are  redeemed  and  cancelled.  Interest  earned  on  the  sinking  funds  is  treated  as 
interest  income  with  a  corresponding  increase  in  the  sinking  funds. 

(g)  Amortization  of  other  assets 

Discount  and  issue  costs  relating  to  the  Province  of  British  Columbia  bond  Series  BCSC-EC-9 
are  deferred  and  amortized  on  a  straight-line  basis  over  the  term  of  the  bond. 

2 .  Fixed  assets 

(a)  During  the  year,  the  Corporation  acquired  fixed  assets  totalling  $66,673,000  (computer, 
telecommunications  and  ancillary  equipment  -  $63,484,000).  The  Corporation  also  disposed 
of  fixed  assets  with  a  net  book  value  of  $15,158,000  (computer,  telecommunications  and 
ancillary  equipment  -  $14,383,000)  for  proceeds  of  $14,484,000. 

(b)  Included  in  fixed  assets  Is  computer  equipment  arising  from  the  capitalization  of  certain  leases 
in  1991/92  at  a  cost  of  $33,976,000.  The  related  accumulated  amortization  amounts  to 
$2,856,000. 

3.  Borrowing  authority 

Pursuant  to  Section  8(6)  of  the  System  Act,  the  aggregate  amount  that  may  be  advanced  to,  or 
borrowed  by,  the  Corporation  shall  not  exceed  $65,000,000. 


C  194 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Notes  to  Financial  Statements,  page  3 
Year  ended  March  31, 1992 

4.  Long-term  debt 
(a)  Lease  capitalization 

The  minimum  annual  contractual  obligations  with  respect  to  capitalized  leases  are  as  follows: 


1992/93 

$  8,077,000 

1993/94 

8,077,000 

1994/95 

7.935.000 

24,089,000 

Less  imputed  interest  at  an  average 

annual  rate  of  6.75% 

2.263.0QQ 

Capitalized  lease  obligations 

21,826,000 

Less  current  portion 

6.812.QQQ 

Long-term  portion 

$  15,014,000 

(b)  Other 

Interest 

Maturity 

rate 

date 

Amount 

Canada  Pension  Plan  debentures 

Series  1 

15.69% 

June  2001 

$14,007,000 

Series  2 

16.10% 

March  2002 

12,500,000 

Province  of  British  Columbia  bond 

Series  BCSC-EC-9 

10.00% 

June  1996 

■  .14.Q.QC)...Q.Q0 

40,507,000 

Less  sinking  funds  on  deposit  with 

the  Minister  of  Finance  for  the 

Province  of  British  Columbia 
(1990/91  -  $10,298,000) 

9.969.000 

Total  debt 

30,538,000 

Less  current  portion 

_ 

Long-term  portion 

$29,653,000 

Mandatory  sinking  fund  requirements  in  respect  of  the  above  debt  for  each  of  the  next  five 
years  and  thereafter  are  as  follows: 


CPP  S-1  &  2 

Bond  BCSC-EC-9 

Total 

1992/93 

$  579,000 

$  306,000 

$  885,000 

1993/94 

579,000 

306,000 

885,000 

1994/95 

579,000 

306,000 

885,000 

1995/96 

579,000 

306,000 

885,000 

1996/97 

579,000 

12,776,000 

13,355,000 

Thereafter 

13.643.000 

_ 

13.643.000 

$  16,538,000 

$14,000,000 

$30,538,000 

PUBLIC  ACCOUNTS  1991/92 


C  195 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Notes  to  Financial  Statements,  page  4 
Year  ended  March  31,  1992 


4.  Long-term  debt  (continued) 

The  Province  of  British  Columbia  has  guaranteed  the  payment  of  principal  and  interest  on  all 
long-term  debt,  with  the  exception  of  capitalized  leases  as  in  (a)  above,  issued  by  the 
Corporation. 

(c)  Interest  expense 

In  1991/92  the  Corporation  incurred  interest  expense  totalling  $6,419,000  (1990/91  - 
$6,248,000).  Of  these  amounts,  $5,501,000  (1990/91  -  $5,281,000)  was  allocated  to 
building  costs  and  $918,000  (1990/91  -  $967,000)  to  the  financing  of  the  current  operations. 


5.  Commitments 

The  Corporation  has  entered  into  service  contracts  and  facilities  leases  expiring  on  various  dates 
to  2001.  Future  minimum  payments  under  these  contracts  and  leases  for  each  of  the  next  five 
years  and  thereafter  are  as  follows: 

1992/93 
1993/94 
1994/95 
1995/96 
1996/97 
Thereafter 

$  17,809,000 


$  3,393,000 
2,840,000 
2,861,000 
1,862,000 
1,419,000 
5.434.000 


6.  Net  Income 

Pursuant  to  Section  8(5)  of  the  System  Act,  the  Lieutenant-Governor  in  Council  may,  each  fiscal 
year,  on  the  recommendation  of  the  Minister  of  Finance,  direct  the  transfer  to  the  Provincial 
Government  of  all  or  part  of  the  net  income  for  the  current  year  or  for  previous  years  to  the  extent 
not  previously  so  transferred. 

7.  Employee  benefit  plans 
(a)  Pension  plan 

The  Pension  (Public  Service)  Act  applies  to  the  Corporation  and  its  officers  and  employees. 
Accordingly,  the  Corporation  is  required  to  pay  into  the  Public  Service  Superannuation  Fund 
amounts  prescribed  from  time  to  time  by  Regulation. 


196 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  SYSTEMS  CORPORATION 

Notes  to  Financial  Statements,  page  5 

Year  ended  March  3 1 , 1 992 

7.  Employee  benefit  plans  (continued) 

(b)  Long  term  disability  plan 

The  Corporation  contributes  to  a  multi-employer  Long  Term  Disability  Plan  established  under 
the  Public  Service  Benefit  Plan  Act.  An  actuarial  valuation  of  the  Plan  as  at  March  31,  1990 
indicates  that  the  Plan  had  a  funding  deficiency.  However,  the  Corporation’s  share  of  the 
Plan’s  actuarial  assets  ($1,900,000)  and  actuarial  liabilities  ($100,000)  reflects  a  funding 
surplus  at  March  31,  1990.  Accordingly,  the  Corporation  will  not  be  required  to  make 
contributions  to  the  Plan  until  the  next  actuarial  valuation  which  will  be  performed  at 
March  31,  1993. 

8.  Contingency 

In  1989/90,  the  Corporation  entered  into  a  facilities  management  contract  with  a  private  sector 
company  for  three  years.  Under  the  terms  of  the  contract,  the  Corporation  is  obligated  to  cover 
certain  employee  termination  costs  should  the  contract  not  be  renewed.  The  Corporation  is 
unable  to  determine  the  extent  of  the  liability,  if  any,  which  may  result  from  this  obligation.  Should 
a  liability  arise  in  the  future,  the  expense  will  be  charged  to  income  in  the  period  in  which  the 
settlement  occurs. 

9 .  BC  Online  Service 

In  1991/92,  the  Corporation  commenced  operation  of  the  BC  Online  Service  which  provides 
public  access  to  a  number  of  databases  owned  by  the  Provincial  Government.  In  the  course  of 
providing  this  service  the  Corporation  collected  fees  totalling  $22.3  million.  Of  this  amount,  $19.3 
million  was  remitted  back  to  the  Provincial  Government  with  the  balance  of  $3.0  million  retained  by 
the  Corporation  for  its  services.  The  Corporation  reports  only  $3.0  million  as  revenue  in  the 
financial  statements. 

10.  Research  equipment  donation 

During  the  year,  Digital  Equipment  of  Canada  Limited  donated  computing  hardware  and  software 
with  an  estimated  fair  market  value  of  $5.7  million  to  the  Corporation  for  operation  as  a  public 
research  facility.  Under  the  terms  of  the  contract  for  the  donated  equipment,  the  Corporation 
must  make  the  equipment  available  to  researchers  at  a  cost  that  cannot  provide  for  any  recovery  of 
the  fair  market  value  of  the  equipment.  Accordingly,  after  recognizing  the  donation  of  $5.7 
million,  the  Corporation  wrote  down  the  carrying  value  of  the  equipment  to  $1  and  recorded  a  loss 
on  valuation  of  $5.7  million.  The  donation  and  write-down  of  the  equipment  have  been  netted  for 
financial  statement  purposes. 


PUBLIC  ACCOUNTS  1991/92 


C  197 


British  Columbia  Trade  Development  Corporation 


Deloitte& 

Touche 


Suite  2000  Telephone:  (604)  669-4466 

1055  Dunsmuir  Street  Telecopier;  (604)  685-0395 

P.O.  Box  49279 

Four  Bentall  Centre 

Vancouver,  British  Columbia 

V7X  1 P4 


AUDITORS'  REPORT 


To  the  Lieutenant  Governor  in  Council, 
Province  of  British  Columbia 


I  We  have  audited  the  balance  sheet  of  the  British  Columbia  Trade  Development  Corporation  as  at  March  31 , 

I  1992  and  the  statements  of  revenues,  expenditures  and  unappropriated  equity  and  changes  in  financial 
f  position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Corporation's 
management.  Our  responsibility  Is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards  require 
that  we  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 
I  and  disclosures  in  the  financial  statements.  An  audit  also  includes  assessing  the  accounting  principles  used 
I  and  significant  estimates  made  by  management,  as  well  as  evaluating  the  overall  financial  statement 
presentation. 


In  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of  the 
Corporation  as  at  March  31,  1992  and  the  results  of  Its  operations  and  the  changes  in  its  financial  position 
for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


Chartered  Accountants 


Vancouver,  British  Columbia 
■  June  1,  1992 


C  198 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
BALANCE  SHEET 
as  at  March  31,1 992 


ASSETS 


1992 


1991 


(Restated  - 
Note  2) 

CURRENT  ASSETS 


Cash  and  short-term  investments 

Accounts  receivable 

Prepaid  expenses 

$2,725,200 

446,200 

86.900 

$3,082,600 

354,000 

3.700 

3,258,300 

3,440,300 

LOAN  GUARANTEE  RESERVE  FUND  (Note  4) 

Cash  and  short-term  investments 

2,927,300 

2,279,900 

FIXED  ASSETS  (Note  5) 

806.700 

843^0Q 

$6.992.300 

$6.563.400 

LIABILITIES  AND  EQUITY 

CURRENT  LIABILITIES 

Accounts  payable  and  accrued  liabilities 

Unexpended  program  contributions  (Note  7) 

Deferred  revenue 

$1,234,600 

861,200 

317.500 

$1,931,600 
286,200 
241 .200 

2,413,300 

2,459,000 

LOAN  GUARANTEE  RESERVE  FUND  (Note  4) 

2.927.300 

2.279.900 

EQUITY 

Market  Development  Loan  Fund  (Note  8) 

Special  Programs  (Note  8) 

Equity  in  fixed  assets 

Deficit 

5.340.600 

500,000 

400,000 

806,700 

(55.000) 

4,738,9.00 

500,000 

400,000 

843,200 

81.300 

1.651.700 

1.824.500 

$6.992.300 

$6,563,400 

COMMITMENTS  (Note  9) 


APPROVED  BY  THE  BOARD: 


Director 

Director 


Deloittei 


PUBLIC  ACCOUNTS  1991/92 


C  199 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
STATEMENT  OF  REVENUES,  EXPENDITURES 
AND  UNAPPROPRIATED  EQUITY 
year  ended  March  31,  1992 


REVENUES 

Provincial  contributions 

Operating  revenue,  net  of  costs  of  $211,300  (1991  -  $148,800) 
Interest 


EXPENDITURES 
Salary  and  benefits 
Programs 

Professional  services 

Office 

Rent 

Data  processing 

Promotion 

Travel 

Depreciation 

Provision  for  loss  on  investment  and  advances  (Note  6) 
Other 


EXCESS  OF  (EXPENDITURES  OVER  REVENUES) 
REVENUES  OVER  EXPENDITURES 

UNAPPROPRIATED  EQUITY,  BEGINNING  OF  YEAR 
As  previously  reported 
Change  in  accounting  policies  (Note  2) 

As  restated 

APPROPRIATIONS 

Market  Development  Loan  Fund  (Note  8) 

Special  Programs  (Note  8) 


UNAPPROPRIATED  EQUITY,  END  OF  YEAR 

Unappropriated  Equity  consists  of: 

Equity  In  fixed  assets 
Deficit 


1992 

1991 

(Restated  - 

Note  2) 

$10,428,700 

$  9,939,500 

976,400 

289,800 

336.300 

399.700 

11.741.400 

10.629.000 

5,095,900 

4,150,900 

2,396,900 

2,092,300 

1,054,500 

753,600 

1,018,000 

837,900 

983,500 

787,800 

364,600 

285,800 

345,500 

416,900 

340,300 

415,100 

1 88,300 

111,900 

66,400 

- 

60.30Q 

54.900 

11.914.200 

9.907.100 

(172.800) 

721.900 

305,500 

250,700 

-moQQ 

566.900 

924.500 

817.600 

. 

500,000 

- 

115.000 

615.000 

$ 

751.700 

$_ 

924.500 

$ 

806,700 

$ 

843,200 

(55.000) 

81.300 

$ 

751.700 

$_ 

924.500 

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PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
year  ended  March  31,  1992 

1992  1991 


(Restated  - 
Note  2) 

NET  INFLOW  (OUTFLOW)  OF  CASH  RELATED  TO  THE 
FOLLOWING  ACTIVITIES: 

OPERATING 


Excess  of  (expenditures  over  revenues)  revenues  over  expenditures 
Add  items  not  affecting  cash 

$  (172,800) 

$  721,900 

Depreciation 

188,300 

111,900 

Provision  for  loss  on  investment  and  advances 

66.400 

- 

81,900 

833,800 

Changes  in  non-cash  operating  working  capital  items 

Accounts  receivable 

(92,200) 

18,100 

Prepaid  expenses 

(83,200) 

135,200 

Accounts  payable  and  accrued  liabilities 

(697,000) 

(252,800) 

Unexpended  program  contributions 

575,000 

286,200 

Deferred  revenue 

76.300 

241 .200 

(139.200) 

1.261.700 

INVESTING 

Fixed  assets 

(151,800) 

(388,200) 

investment  and  advances 

(66.400) 

- 

(218,200) 

.■(388,2QQ) 

NET  CASH  (OUTFLOW)  INFLOW 

(357,400) 

873,500 

CASH  POSITION,  BEGINNING  OF  YEAR 

3.082.600 

2.209.100 

CASH  POSITION,  END  OF  YEAR 

$2,725,200 

$3,082,600 

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PUBLIC  ACCOUNTS  1991/92 


C  201 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


NATURE  OF  BUSINESS 


British  Columbia  Trade  Development  Corporation  (the  "Corporation")  is  established  under  the  Trade 
Development  Act.  The  principle  role  of  the  Corporation  is  to  promote  the  sale  of  British  Columbia  goods 
and  services  to  markets  outside  British  Columbia  by  providing  advice  and  assistance  to  export 
enterprises  on  terms  and  conditions  the  Corporation  considers  advisable. 

CHANGE  IN  ACCOUNTING  POLICIES 

Effective  April  1,  1991,  the  Corporation  has  made  changes  to  its  methods  of  accounting  for 
expenditures  made  on  fixed  assets  and  fees  associated  with  its  loan  guarantees.  These  changes  have 
been  applied  retroactively  as  follows: 

a)  Expenditures  on  fixed  assets  have  been  recorded  at  cost  and  depreciated  on  a  straight-line  basis  over 
the  estimated  useful  life  of  the  assets  as  described  in  Note  3(b).  Such  expenditures  were  previously 
expensed  In  the  year  Incurred.  The  effect  of  this  change  has  been  to  increase  unappropriated  equity 
at  the  beginning  of  the  1992  fiscal  year  by  $843,200  (1991  -  $566,900),  to  Increase  fixed  assets 
at  March  31,1 992  by  $806,700  (1991  -  $843,200)  and  to  Increase  the  excess  of  expenditures  over 
revenues  for  the  year  ended  March  31,  1992  by  $36,500  (1991  decrease  -  $276,300). 

b)  Loan  guarantee  fees,  previously  recorded  as  revenue  at  the  Inception  of  the  loan,  are  now  deferred 
and  recognized  as  revenue  over  the  term  of  the  loan  as  described  in  Note  3(d).  The  effect  of  this 
change  has  been  to  decrease  unappropriated  equity  at  the  beginning  of  the  1992  fiscal  year  by 
$224,200,  to  increase  deferred  revenue  at  March  31,  1992  by  $263,100  (1991  -  $224,200)  and 
to  increase  the  excess  of  expenditures  over  revenues  for  the  year  ended  March  31,  1992  by 
$38,900  (1991  -  $224,200). 


SIGNIFICANT  ACCOUNTING  POLICIES 


As  prescribed  by  Section  9(6)  of  the  Trade  Development  Corporation  Act,  the  financial  statements  of 
the  Corporation  are  prepared  according  to  generally  accepted  accounting  principles  and  include  the 
following  significant  accounting  policies: 


a)  Provincial  contributions 


The  Corporation's  principle  source  of  revenue  Is  provincial  contributions  from  the  Province  of  British 
Columbia  to  fund  its  operating  and  capital  requirements.  Provincial  contributions  are  recorded  as 
revenue  in  the  period  in  which  they  are  received. 


b)  Fixed  assets 


Fixed  assets  are  recorded  at  cost  and  depreciated  on  a  straight-line  basis  over  the  estimated  useful 
life  of  the  assets,  at  the  following  annual  rates: 


Furniture  and  equipment 
Computer  software 
Automobiles 
Leasehold  improvements 


20% 

33% 

33% 

Over  lease  term 


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PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 

3.  SIGNIFICANT  ACCOUNTING  POLICIES  (Continued) 

c)  investment 

The  investment  in  a  subsidiary  company  is  accounted  for  using  the  equity  method. 

d)  Loan  guarantee  fees 

Loan  guarantee  fees  are  deferred  and  amortized  over  the  term  of  the  loan. 

4.  LOAN  GUARANTEE  RESERVE  FUND 

The  Trade  Development  Corporation  Act  authorizes  the  Corporation  to  administer  the  Province  of  British 
Columbia  Export  Loan  Guarantee  Program.  Funding  is  provided  by  grants  from  the  Province  of  British 
Columbia.  Transactions  during  the  year  were  as  follows: 


1992 

1991 

Balance  beginning  of  year 

$2,279,900 

$1,038,100 

Add: 

Provincial  Grant 

750,000 

1,000,000 

Interest 

192,200 

241,800 

Deduct: 

Guarantee  called 

(294.800) 

- 

Balance  end  of  year 

$2,927,300 

$2.279.900 

The  Corporation  has  outstanding  guarantees  as  at  March  31,  1992  amounting  to  approximately 
$18,600,000  (1991  -  $10,900,000)  with  respect  to  the  Export  Loan  Guarantee  Program.  Default 
of  any  guarantees  are  funded  by  the  Loan  Guarantee  Reserve  Fund  with  any  additional  deficiency 
underwritten  by  the  Province  of  British  Columbia. 

To  March  31,  1992,  losses  of  $294,800  were  incurred  on  guarantees  that  expired  during  the  year. 
With  the  exception  of  two  guarantees  totalling  $638,850,  the  outstanding  guarantees  are  in  good 
standing. 

5.  FIXED  ASSETS 


Cost 


Accumulated  Net  Book  Value 

Depreciation  1  9  9  2  1  9  9  1 


Furniture  and  equipment 
Computer  software 
Automobiles 
Leasehold  Improvements 


$  779,800 

19.800 

27.800 
328.600 


$  243,700 

6,400 
21,700 
77.500 


$  536,100 

13,400 
6,100 
251.100 


$  541,100 

13,400 
19,900 

268.800 


$1.156.000 


$  349.300 


$  806.700 


$  843.200 


Deloitte 

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PUBLIC  ACCOUNTS  1991/92 


C  203 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


INVESTMENT  AND  ADVANCES 


During  the  year,  the  Corporation  acquired  50%  of  the  issued  and  outstanding  shares  of  Hong  Kong  Gift 
Services  Ltd.  for  $34,000  and  advanced  a  total  of  $32,400  under  a  non-revolving  line  of  credit.  The 
advances  are  unsecured,  bear  interest  at  the  Canadian  Imperial  Bank  of  Commerce  prime  rate  and  are 
repayable  one  year  from  the  date  of  the  advance.  The  Corporation  has  provided  a  provision  for  loss  on 
investment  and  advances  of  $66,400  at  March  31,  1992. 

UNEXPENDED  PROGRAM  CONTRIBUTIONS 


Included  in  programs  expenditures  are  $861,200  (1991  -  $286,200)  related  to  provincial  contributions 
applicable  to  projects  In  progress  at  March  31,  1992.  These  projects,  which  were  included  in  the 
1 991/92  Business  Plan,  commenced  during  the  year,  but  were  not  completed  prior  to  March  31,1 992. 
The  $861,200  is  the  estimated  cost  to  complete  these  projects. 

APPROPRIATIONS 

a)  Market  Development  Loan  Fund 

In  1991,  the  Corporation  established  a  Market  Development  Loan  Fund  to  assist  British  Columbia 
companies  who  are  engaged  in  developing  projects  for  export  markets.  No  loans  were  issued 
during  fiscal  1 992. 

b)  Special  Programs 

In  1991,  the  $285,000  appropriated  In  1990  for  export  assistance  programs  was  utilized.  The 
Corporation  also  appropriated  $400,000  to  establish  a  program  to  market  the  services  and 
expertise  of  Crown  Corporations  and  Provincial  Ministries.  Although  no  funds  have  been 
expended,  the  Corporation  intends  to  carry  through  with  this  program  in  1993. 


1992  1991 

Balance  beginning  of  year  $400,000  $285.000 

Appropriated  from  unappropriated  equity  -  400,000 

Appropriations  utilized  during  the  year  -  (285,000) 

115.000 

Balance  end  of  year  $400,000  $400,000 


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C  204 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRADE  DEVELOPMENT  CORPORATION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
year  ended  March  31,  1992 


9.  COMMITMENTS 

The  Corporation  occupies  premises  under  occupancy  agreements  with  the  British  Columbia  Buildings 
Corporation,  which  expire  in  1 996  and  1 999.  Minimum  annual  payments  under  these  agreements  over 
the  next  five  years  are  as  follows: 


1993 

$1,144,000 

1994 

$1,105,000 

1995 

$1,126,000 

1996 

$1,185,000 

1997 

$1,015,000 

10.  COMPARATIVE  FIGURES 

Certain  of  the  prior  year's  figures  have  been  reclassified  to  conform  with  the  financial  statement 
presentation  used  in  the  current  year. 


I 


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PUBLIC  ACCOUNTS  1991/92 


C  205 


f 


British  Columbia  Transit 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 

777  Dunsmuir  Street 
P.O.  Box  10426 
Vancouver.  B.C..  Canada 
V7Y  1K3 


Telephone:  (604)  691-3000 
Direct  Dial:  (604) 

Fax:  (604)  691-3031 
File  Re(. 


I  AUDITORS'  REPORT  TO  THE  MEMBERS  OF  THE  BOARD  OF  DIRECTORS 
i  OF  BRITISH  COLUMBIA  TRANSIT 


We  have  audited  the  consolidated  balance  sheet  of  British  Columbia  Transit  as  at  March  31, 
1992  and  the  consolidated  statements  of  revenue  and  expenditures  and  accumulated  net 
revenue,  contributed  surplus  and  changes  in  financial  position,  and  the  statement  of  changes 
in  regional  transit  funds  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Corporation's  management.  Our  responsibility  is  to  express  an  opinion  on 
these  financial  statements  based  on  our  audit. 


We  conducted  our  audit  In  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  plan  and  perform  an  audit  to  obtain  reasonable  assurance  whether 
j  the  financial  statements  are  free  of  material  misstatement.  An  audit  includes  examining,  on 
j  a  test  basis,  evidence  supporting  the  amounts  and  disclosures  in  the  financial  statements.  An 
I  audit  also  includes  assessing  the  accounting  principles  used  and  significant  estimates  made  by 
I  management,  as  well  as  evaluating  the  overall  financial  statement  presentation. 


I  In  our  opinion,  these  consolidated  financial  statements  fairly  present,  in  all  material  respects, 
the  financial  position  of  British  Columbia  Transit  as  at  March  31,  1992  and  the  results  of  its 
I  operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


Vancouver,  Canada 
May  13,  1992 


Member  Firm  o( 

Klynveld  Peal  Marwick  Goerdeler 


206 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 
CONSOLIDATED  BALANCE  SHEET 

March  31 

1992  1991 

($000)  ($000) 


ASSETS 

CURRENT  ASSETS 
Short-term  investments 
Accounts  receivable 
Province  of  British  Columbia 
Municipalities 
Sundry 

Parts  inventory 
Prepaid  expenditures 

MORTGAGE  RECEIVABLE 
DEBT  SINKING  FUND 
FIXED  ASSETS 
SkyTrain  (note  3) 

Land,  buildings  and  equipment  (note  4) 

REGIONAL  TRANSIT  FUNDS 
Cash  and  term  deposits 
Accounts  receivable  and  accrued  Interest 


$  7,047 

4,660 

14,087 

22,082 

32,989 

26,488 

2,508 

2,527 

13,023 

11,273 

5,433 

4,047 

75,087 

71,077 

640 

460 

143,365 

106,740 

1,198,914 

1,157,935 

348,105 

293,931 

1,547,019 

1,451,866 

$  1,766,111 

1,630,143 

$  28,621 

40,748 

5,626 

5,660 

$  34,247 

46,408 

APPROVED  BY  THE  BOARD: 


Director 


Director 


PUBLIC  ACCOUNTS  1991/92 


C  207 


March  31 


1992 

1991 

($000) 

($000) 

LIABILITIES,  EQUITY  AND  FUND  BALANCES 

CURRENT  LIABILITIES 

Cheques  issued  in  excess  of  funds 
on  deposit 

$ 

1,846 

$ 

6,238 

Accounts  payable  and  accrued  liabilities 

97,716 

94,513 

Payable  to  contractors 

778 

1,734 

Notes  payable  (note  5) 

234,816 

189,324 

Current  portion  of  long-term  debt 

4,254 

20,477 

Current  obligations  under  capital  leases 

8,179 

6,329 

347,589 

318,615 

LONG-TERM  DEBT  (note  6) 

1,017,012 

902,208 

OBLIGATIONS  UNDER  CAPITAL  LEASES  (note  7) 

195,076 

203,610 

EQUITY 

Contributed  surplus 

194,909 

198,224 

Accumulated  net  revenue 

11,525 

7,486 

206,434 

205,710 

$ 

1,766,111 

$ 

1,630,143 

Payable  to  BC  Transit 

$ 

29,476 

$ 

23,540 

Fund  Balances 

4,771 

22,868 

$ 

34,247 

$ 

46,408 

C  208 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 

CONSOLIDATED  STATEMENT  OF  REVENUE  AND  EXPENDITURES 
AND  ACCUMULATED  NET  REVENUE 


Year  ended  March  31 
1992  1991 

($000)  ($000) 

Revenue 


Operations 

$  144,028 

$  138,773 

Interest 

12,806 

9,600 

156,834 

148,373 

Expenditures 

Operations  and  maintenance 

258,039 

231,203 

Administration 

48,794 

42,680 

Interest  on  long-term  debt 

110,369 

96,832 

Interest  on  obligations  under  capital  leases 

20,919 

23,618 

Other  interest 

11,783 

21,141 

Depreciation  and  amortization 

46,449 

42,174 

Property  leases  and  taxes 

7,107 

6,606 

503,460 

464,254 

(346,626) 

(315,881) 

Recoveries 

Contributions  from  the  Province  of  British  Columbia 

188,423 

173,061 

Contributions  from  municipalities 

115,858 

99,503 

Provincial  grant  -  debt  servicing  assistance 

Amortization  of  contributed  surplus  to  offset 

39,024 

40,327 

depreciation  charged  on  contributed  assets 

3,321 

2,990 

346,626 

315,881 

NET  REVENUE  FROM  TRANSIT  OPERATIONS 

Other 

Realization  of  contributed  surplus  on  disposition 

” 

" 

of  contributed  assets 

(6) 

191 

Gain  (loss)  on  disposal  of  fixed  assets 

2,981 

(229) 

Loss  on  disposal  of  inventory 

- 

(8) 

Net  income  from  insurance  operations 

1,064 

2,129 

4,039  2,083 


4,039  2,083 

7,486  5,403 

$  7,486 


NET  REVENUE 

Accumulated  net  revenue  at  beginning  of  year 
ACCUMULATED  NET  REVENUE  AT  END  OF  YEAR 


$ 


11,525 


PUBLIC  ACCOUNTS  1991/92 


C  209 


BRITISH  COLUMBIA  TRANSIT 


CONSOLIDATED  STATEMENT  OF  CONTRIBUTED  SURPLUS 


APPRAISAL  INCREASE  CREDITS 

Balance  at  beginning  of  year 

Amount  transferred  to  statement  of  revenue 
and  expenditures  and  accumulated  net 
revenue  to  offset  depreciation  charged 
on  contributed  assets 

Reduction  on  disposition  of  contributed  assets 


OTHER  CONTRIBUTED  SURPLUS 
Balance  at  beginning  of  year 
Increase  on  disposition  of  contributed  assets 


Year  Ended 

1992 

($000) 

$  179,131 


(3,321) 

(25) 

175,785 

19,093 

31 

19,124 
$  194,909 


March  31 

1991 

($000) 

$  182,312 


(2,990) 

(191) 

179,131 

19,093 


19,093 
$  198,224 


BALANCE  AT  END  OF  YEAR 


C  210 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 

CONSOLIDATED  STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 


CASH  PROVIDED  BY  (USED  FOR): 

OPERATIONS 
Net  revenue 

Items  not  involving  cash 
Depreciation  and  amortization 
Amortization  of  bond  discount 
Amortization  of  contributed  surplus  to  offset 
depreciation  charged  on  contributed  assets 
Realization  of  contributed  surplus  on  disposition 
of  contributed  assets 
Loss  (gain)  on  disposal  of  fixed  assets 

Changes  in  non-cash  operating  working  capital 
Accounts  receivable 
Parts  Inventory 
Prepaid  expenditures 
Accounts  payable  and  accrued  liabilities 


FINANCING 

Principal  repayments  on  capital  leases 
Increase  (decrease)  in 
Notes  payable 
Long-term  debt 
Debt  sinking  fund 
Decrease  in  mortgage  receivable 


INVESTMENTS 

Short-term  investments 
Proceeds  from  sale  of  fixed  assets 
Additions  to 
SkyTraIn 

Land,  buildings  and  equipment 


Year  ended  March  31 
1992  1991 

($000)  ($000) 


$ 

4,039 

$ 

2,083 

46,449 

42,174 

(19) 

(208) 

(3,321) 

(2,990) 

6 

(191) 

(2,981) 

229 

44,173 

41,097 

1,513 

(6,773) 

(1,750) 

(1,373) 

(1,386) 

(1,155) 

2,247 

11,983 

44,797 

43,779 

(6,684) 

(6,063) 

45,492 

(21,317) 

98,600 

98,600 

(36,625) 

(29,680) 

(180) 

42 

100,603 

41,582 

(2,387) 

(2,318) 

4,059 

(13) 

(74,006) 

(47,449) 

(68,674) 

(41,272) 

(141,008) 

(91,052) 

(4,392) 

5,691 

6,238 

547 

$ 

1,846 

$ 

6,238 

INCREASE  (DECREASE)  IN  CASH  DEFICIENCY 
Cash  deficiency  at  beginning  of  year 
CASH  DEFICIENCY  AT  END  OF  YEAR 


PUBLIC  ACCOUNTS  1991/92 


C  211 


I  BRITISH  COLUMBIA  TRANSIT 

STATEMENT  OF  CHANGES  IN  REGIONAL  TRANSIT  FUNDS 


Year  ended  March  31 

1992 

1991 

Vancouver 

Victoria 

Total 

Total 

1 

($000) 

($000) 

($000) 

($000) 

FUND  BALANCE 

AT  BEGINNING  OF  YEAR 

$  18,379 

$  4,489 

$  22,868 

$  28,534 

Revenue 

Gas  tax 

47,442 

-- 

47,442 

45,197 

1 !  Non-residential  property  tax 

24,049 

-- 

24,049 

22,623 

f  Power  levy 

12,582 

4,325 

16,907 

14,706 

ii 

r,  Interest  earned 

2,521 

411 

2,932 

5,591 

!| 

86,594 

4,736 

91,330 

88,117 

104,973 

9,225 

114,198 

116,651 

1  Contribution  to 
j  1  shareable  deficit 

(103,654) 

(5,773) 

(109,427) 

(93,783) 

FUND  BALANCE 
i  AT  END  OF  YEAR 

$  1,319 

$  3,452 

$  4,771 

$  22,868 

C  212 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS 
YEAR  ENDED  MARCH  31,  1992 


1 .  AUTHORITY 

British  Columbia  Transit  ("BC  Transit")  is  established  under  the  British  Columbia  Transit 
Act,  as  amended,  to  operate  the  urban  transit  systems  in  the  Province  of  British 
Columbia. 

In  accordance  with  the  Vancouver  and  Victoria  Regional  Transit  Commission  regulations, 
BC  Transit  is  responsible  for  the  administration  of  all  funds  raised  by  certain  tax  levies. 
The  financial  position  and  changes  during  the  year  in  these  funds  are  set  out  in  the 
Consolidated  Balance  Sheet  and  In  the  Statement  of  Changes  in  Regional  Transit  Funds. 


2.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES 

The  accompanying  financial  statements  are  prepared  in  accordance  with  generally 
accepted  accounting  principles  appropriate  for  BC  Transit.  The  significant  accounting 
policies  are  set  out  hereunder: 

(a)  Basis  of  presentation 

These  consolidated  financial  statements  include  the  accounts  of  BC  Transit  and 

its  wholly  owned  subsidiary,  BC  Transit  Captive  Insurance  Company  Inc.,  which 

was  formed  to  provide  certain  types  of  insurance  coverage  solely  to  BC  Transit. 

(b)  Parts  inventory 

Parts  inventory  Is  valued  at  the  lower  of  average  cost  and  replacement  value. 

(c)  Fixed  assets 

Fixed  assets  have  been  recorded  as  follows: 

(i)  Fixed  assets  transferred  from  the  Province  of  British  Columbia  in  fiscal  year 
1980,  at  their  appraised  value  at  June  30,  1979. 

(ii)  Revenue  vehicles  acquired  from  BC  Hydro,  at  their  appraised  value  at 
March  1,  1980. 

(iii)  SeaBuses,  the  South  Shore  and  North  Shore  SeaBus  Terminals,  acquired 
from  the  Province  of  British  Columbia,  at  appraised  values.  At  August  1 8, 
1987,  the  SeaBuses  were  reappraised  by  Robert  Allan  Ltd.,  as  a  result  of 
which,  fixed  assets  and  contributed  surplus  were  both  increased  by 
$1,950,000.  The  other  appraisals  were  carried  out  at  various  dates 
between  July  15,  1980  and  June  30,  1981. 


PUBLIC  ACCOUNTS  1991/92 


C  213 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (Continued) 


2.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (Continued) 


(c)  Fixed  assets  (Continued) 

(iv)  The  trolley  overhead  system  acquired  from  BC  Hydro  on  January  1 ,  1 984, 
at  its  nominal  value  of  $1. 

(v)  Land,  land  improvements,  buildings  and  equipment  acquired  from 
BC  Hydro  at  appraised  value.  These  appraisals  were  carried  out  at  various 
dates  between  April  1,  1980  and  April  1,  1982. 

All  appraisals  are  fair  market  value  appraisals  with  the  exception  of  the  appraisal 
of  buildings  and  land  improvements,  which  are  appraised  at  depreciated 
replacement  cost. 

(vi)  All  other  fixed  assets,  at  cost,  including  capitalized  interest  as  indicated  in 
note  2(d). 

(vli)  Depreciation  and  amortization  are  provided  on  the  basis  that  results  in  a 
matching  of  these  charges  with  BC  Transit's  statutory  power  to  recover 
the  cost  of  the  related  assets.  Contributed  assets  are  not  subject  to 
recovery  and  are  depreciated  over  their  estimated  useful  lives  by  the 
sinking  fund  method.  All  assets  are  depreciated  over  a  period  not 
exceeding  their  estimated  remaining  useful  lives. 

(d)  Capitalization  of  interest 

Interest,  incurred  in  connection  with  capital  acquisitions  from  the  date  of  advance 
of  funds  until  the  assets  are  placed  in  service  for  transit  purposes,  is  capitalized. 
Interest  of  $6,269,000  (1991,  $4,457,000)  was  capitalized  during  the  year 
ended  March  31,  1992. 

(e)  Amortization  of  bond  discounts 

Bond  discounts  are  amortized  on  a  straight-line  basis  over  the  term  of  the  debt. 

(f)  Amortization  of  contributed  surplus 

Contributed  surplus  (appraisal  increase  credits)  is  being  amortized  and  reflected 
In  net  revenue  at  an  amount  equal  to  the  depreciation  charged  on  those  assets 
for  which  BC  Transit  does  not  have  statutory  power  to  obtain  full  recovery  from 
operations. 


C  214 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (Continued) 


3.  SKYTRAIN 


1992 

1991 

Carrying 

value 

Accumulated 

depreciation 

and 

amortization 

Net 

Net 

($000) 

($000) 

($000) 

($000) 

Vancouver  - 

New  Westminster  Phase 

Property  and  rights-of-way 

$  37,779 

$ 

$  37,779 

$  37,779 

Vehicles  and  equipment 
under  capital  lease 

159,502 

16,261 

143,241 

146,294 

Construction,  engineering 
and  administration 

814,061 

125,196 

688,865 

714,163 

1,011,342 

141,457 

869,885 

898,236 

New  Westminster  - 
Scott  Road  Phase 

Property  and  rights-of-way 

8,084 

- 

8,084 

8,741 

Construction,  engineering 
and  administration 

194,613 

8,457 

186,156 

184,757 

Vehicles 

40,871 

637 

40,234 

31,910 

243,568 

9,094 

234,474 

225,408 

Capital  projects  in  progress 

Scott  Road-Whalley  Phase 

93,594 

- 

93,594 

33,713 

Coquitlam  Phase 

961 

- 

961 

578 

94,555 

- 

94,555 

34,291 

$1,349,465 

$  150,551 

$1,198,914 

$1,157,935 

BC  Transit  has  approved  funding  for  the  Scott  Road  -  Whalley  Phase  of  $160,000,000 
(including  interest).  At  March  31,  1992,  $93,594,000  has  been  expended  and  an 
additional  $17,039,000  has  been  committed. 


PUBLIC  ACCOUNTS  1991/92 


C  215 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (Continued) 

4.  LAND,  BUILDINGS  AND  EQUIPMENT 


1992 

1991 

Carrying 

value 

Accumulated 

depreciation 

and 

amortization 

Net 

Net 

($000) 

($000) 

($000) 

($000) 

! 


Land 

$  54,797 

$ 

$  54,797 

$  48,794 

Land  improvements 

13,087 

2,166 

10,921 

10,866 

Buildings 

66,743 

7,111 

59,632 

59,385 

Revenue  vehicles 

126,938 

27,552 

99,386 

60,901 

Revenue  vehicles 
under  capital  leases 

91,652 

25,444 

66,208 

70,643 

Equipment 

30,313 

4,921 

25,392 

21,264 

Capital  projects  in 
progress 

31,769 

31,769 

22,078 

$  415,299 

$  67,194 

$  348,105 

$  293,931 

At  March  31,  1992  BC  Transit  has  unutilized  approved  funding  for  the  purchase  of 
revenue  vehicles  of  $28,897,000,  of  which  $13,309,000  has  been  committed. 

i 

! 

1 5.  NOTES  PAYABLE 

1992  1991 

1  ($000)  ($000) 


f  Commercial  paper  with  the  Province  of  British  Columbia, 
7.78%  weighted  average  interest  rate 


$234,816 


$189,324 


C  216 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (Continued) 

6.  LONG-TERM  DEBT 


1992 


1991 


Debentures,  10.91%  weighted-average  interest 
rate,  due  November  25,  1997  to  July  10,  2009 

11.125%  Bond  payable,  due  December  1,  1998 

8.75%  Bond  payable,  due  January  15,  2009 

Less  unamortized  bond  discount 


12.25%  Serial  debenture,  principal  of 
$1,400,000  plus  interest  payable  annually, 
due  January  31,1 996 


Less  current  portion 


($000) 

$  945,046 

50,000 
25,000 
1,020,046 
9,980 


1,010,066 


11,200 
1,021,266 
4,254 
$  1,017,012 


($000) 

$  845,046 

50,000 
25,000 
920,046 
9,961 


910,085 


12,600 


922,685 

20,477 


902,208 


Long-term  debt  is  guaranteed  by  the  Province  of  British  Columbia. 

Effective  April  1,  1986,  BC  Transit  entered  into  an  agreement  whereby  the  Province  of 
British  Columbia  makes  grants  of  principal  and  interest  payments  on  $275,000,000  of 
the  long-term  debt,  representing  approximately  50%  of  the  SkyTrain  guideway  and 
station  construction  costs  for  the  Vancouver-New  Westminster  phase.  In  1992  these 
payments  aggregated  $39,024,000  (1991,  $40,327,000). 

Sinking  fund  and  serial  debenture  payments  due  in  each  of  the  next  five  years  are 
approximately  as  follows  ($000): 


1993 

$4,254 

1994 

$4,254 

1995 

$4,254 

1996 

$9,854 

1997 

$2,854 

PUBLIC  ACCOUNTS  1991/92 


C  217 


BRITISH  COLUMBIA  TRANSIT 

NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS  (Continued) 


7.  OBLIGATIONS  UNDER  CAPITAL  LEASES 

The  obligations  under  capital  leases,  which  mature  at  various  dates  from  1 394  to  2007, 
represent  the  total  present  value  of  future  minimum  lease  payments  discounted  at  the 
interest  rates  implicit  in  the  leases  at  the  commencement  of  the  lease  term.  These  rates 
vary  with  prime  and  during  the  year  ranged  from  6.37%  to  12.22%. 

Obligations  under  capital  leases  totalling  approximately  $199,1 17,000  are  guaranteed 
by  the  Province  of  British  Columbia. 

Future  minimum  lease  payments  together  with  the  balance  of  the  obligations  under 
capital  leases  as  of  March  31,  1992  are  approximately  as  follows  ($000): 


1993 

$  27,902 

1994 

28,948 

1995 

27,741 

1996 

28,036 

1997 

27,626 

1998  -  2007 

238.966 

379,219 

Less  interest  amount 

175.964 

203,255 

Less  current  portion 

8.179 

$  195.076 

k 


218 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Year  of  Music  Society 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


777  Dunsmuir  Street 
P.O.  Box  10426 
Vancouver.  B.C..  Canada 
V7Y1K3 


Telephone;  (604)  691-3000 
Direct  Dial;  (604) 

Fax;  (604)  691-3031 
File  Ref, 


AUDITORS’  REPORT  TO  THE  DIRECTORS 


We  have  audited  the  balance  sheet  of  the  British  Columbia  Year  of  Music  Society  as  at  March  31 , 1992 
and  the  statement  of  deferred  revenues  and  expenditures  for  the  year  then  ended.  These  financial 
statements  are  the  responsibility  of  the  Society’s  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  ail  material  respects,  the  financial  position  of 
the  Society  as  at  March  31,  1992  and  the  results  of  its  operations  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles.  As  required  by  the  Society  Act  (British 
Columbia),  we  report  that,  in  our  opinion,  these  principles  have  been  applied  on  a  basis  consistent 
with  that  of  the  preceding  period. 


Chartered  Accountants 


Vancouver,  Canada 
April  20,  1992 


■III 


Member  Firm  of 

Klynveld  Peat  Marv»ick  Goerdeler 


PUBLIC  ACCOUNTS  1991/92 


C  219 


BRITISH  COLUMBIA  YEAR  OF  MUSIC  SOCIETY 

Balance  Sheet 

March  31,  1992,  with  comparative  figures  for  1991 


1992 

1991 

Assets  and  Deferred  Expenditures 

Current  assets: 

Cash  arxJ  terni  deposits 

Accounts  receivable 

Prepaid  expenses 

$ 

72,179 

4,104 

591 

$ 

1,404,052 

150,412 

126,860 

76,874 

1,681,324 

Deferred  experxjitures 

— 

10,294,990 

$ 

76,874 

$ 

11,976,314 

Liabilities,  Deferred  Revenues  and  Net  Assets 

Current  tiabinties: 

Accounts  payable  and  accrued  liabilities 

$ 

10,891 

$ 

1,290,149 

Deferred  revenues 

10,686,165 

Net  assets: 

Deferred  revenues  realized 

Deferred  experxjitures  reafized 

25,853,632 

25,787,649 

- 

65,983 

- 

Subsequent  event  (note  5) 

$ 

76,874 

$ 

11,976,314 

1  i  See  accompanying  notes  to  financiai  statements. 


•irector 


C  220 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  YEAR  OF  MUSIC  SOCIETY 

Statement  of  Deferred  Revenues  and  Expenditures 

Year  ended  March  31,  1992,  with  comparative  figures  for  1991  and  1990 


From 


From 


inception 

Year 

Year 

inception 

to 

ended 

ended 

to 

March  31, 

March  31, 

March  31, 

March  31, 

1992 

1992 

1991 

1990 

Revenues: 

Government  grants  (note  2) 

$  19,100,000 

$  9,600,000 

$  8,000,000 

$  1,500,000 

Corporate  sponsorships  (note  3) 

2,668,275 

2,022,956 

630,039 

15,280 

Gate  receipts 

3,242,717 

2,944.187 

298,530 

- 

Other  (note  4) 

842,640 

600,324 

222,846 

19,470 

25,853.632 

15,167,467 

9,151,415 

1,534,750 

Deferred  revenues,  beginning  of  period 

10,686,165 

1,534,750 

— 

25,853,632 

25,853,632 

10,686,165 

1,534,750 

Revenues  realized 

25,853,632 

25,853,632 

— 

— 

Deferred  revenues,  end  of  period 

$ 

$ 

$  10,686,165 

$ 

1,534,750 

Deferred  expenditures: 

Operating: 

Compensation 

$  4,237,848 

$  1,887,581 

$  2,030,611 

$ 

319,656 

Benefits 

729,662 

336,318 

358,792 

34,552 

Travel  and  business 

919,836 

621.773 

249,156 

48,907 

Vehicle 

1,005,989 

898,453 

92,050 

15,486 

Consultants  and  professional 

services 

1,734,652 

426,991 

858,740 

448,921 

Insurance 

196,538 

113,847 

80,543 

2,148 

Office 

867,054 

273,300 

472,024 

121,730 

Utilities 

182,311 

119,438 

48,849 

14,024 

Promotion 

2,059,609 

493,646 

1,247.490 

318.473 

Advertising 

2,640,664 

1,884,060 

753,273 

3,331 

Contracted  services 

2,625,253 

1,389,760 

996,978 

238,515 

Supplies  -  events 

259.737 

200,928 

56,790 

2,019 

Rentals  -  events 

1,957,958 

1,796,215 

115,828 

45,915 

Talent 

5,224,785 

4,377,529 

760,913 

86,343 

Volunteer 

14,442 

14,442 

- 

- 

24,656,338 

14,834,281 

8,122,037 

1,700,020 

Furniture,  fixtures  and  equipment 

1,131,311 

658,3787 

359,149 

113,784 

25,787,649 

15,492,659 

8,481,186 

1,813,804 

Deferred  expenditures,  beginning 

of  period 

- 

10,294,990 

1,813,804 

- 

25.787,649 

25,787,649 

10,294,990 

1,813,804 

Expenditures  realized 

25,787,649 

25,787,649 

— 

- 

Deferred  expenditures,  end 

of  period 

$ 

$ 

$  10,294,990 

$ 

1,813,804 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  221 


BRITISH  COLUMBIA  YEAR  OF  MUSIC  SOCIETY 

Notes  to  Financial  Statements 
Year  ended  March  31 , 1992 


1  .  Significant  accounting  policies: 

(a)  General: 

The  British  Columbia  Year  of  Music  Society  (the  "Society")  was  incorporated  under  the 
Society  Act  of  British  Columbia  on  March  6,  1989.  Activities  commenced  on  April  3,  1989. 
The  purpose  of  the  Society  was  to  promote  tourism  in  the  Province  of  British  Columbia  by 
developing,  managing,  operating  and  prorTX)ting  a  musical  extravaganza  in  1991. 

Upon  the  winding-up  or  dissolution  of  the  Society,  the  remaining  property  of  the  Society  is  to 
be  distributed  or  disposed  of  within  one  year  to  the  Government  of  British  Columbia. 

(b)  Deferral  of  revenues  and  expenditures: 

The  British  Columbia  Year  of  Music  Society  was  incorporated  to  manage  events  scheduled  in 
1991.  Accordingly,  all  revenues  and  operating  and  capital  expenditures  were  deferred  until 
the  current  operating  period.  All  deferred  revenues  and  expenditures  have  been  realized  In 
the  current  operating  period. 

(c)  Deferred  revenue  recognition: 

Government  grants  are  recorded  in  the  period  in  which  the  furxJs  are  received.  Corporate 
sponsorship  funds  are  recorded  on  an  accrual  basis  according  to  the  terms  of  executed 
sponsorship  contracts.  Goods  and  services  received  as  part  of  the  corporate  sponsorship 
program  are  recorded  In  the  period  in  which  the  goods  are  received  or  thie  services  are 
rendered. 

(d)  Acquisition  of  goods  and  services: 

Goods  and  services  received  as  part  of  the  corporate  sponsorship  program  are  recorded  at  fair 
market  value. 

Not  recognized  in  these  financial  statements,  due  to  the  difficulty  of  determining  fair  market 
value,  are: 

-  volunteer  services  contributed  by  community  groups  and  individuals 

-  goods  and  services  contributed  by  other  government  agencies,  by  way  of  cost  sharing  or 
other  arrangements. 

2.  Related  party  transactions: 

The  Government  of  British  Columbia,  through  its  Lottery  Fund  program  arxl  the  Contingencies 
(All  Ministries)  and  New  Programs  Vote,  has  provided  funding  to  the  Society  totalling  $19.1 
million. 

In  the  normal  course  of  operations,  the  Society  has  acquired  goods  and  services  from  various 
government  agencies. 


222 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  YEAR  OF  MUSIC  SOCIETY 

Notes  to  Financial  Statements,  page  2 
Year  ended  March  31 , 1992 


2.  Related  party  transactions  (continued): 

Remuneration  paid  during  the  year  by  the  Society  to  its  directors,  in  their  capacity  as  directors, 
amounted  to  $10,150  (1991  -$14,995;  1990  -  $15,400).  Remuneration  paid  to  a  director.  In 
his  capacity  as  an  officer,  amounted  to  $48,001  (1991  -  $75,150;  1990  -  Nil). 

3.  Corporate  sponsorships: 

Included  in  corporate  sponsorships  revenue  Is  $737,238  (1991  -  $447,538;  1990  -  $5,280)  of 
advertising,  travel,  vehicle  rental  and  lodging  services  received  from  corporate  sponsors. 

4 .  Other  revenues: 


From  inception 
to  March  31 , 
1992 

Year  ended 
March  31. 
1992 

Year  ended 
March  31 , 
1991 

From  Inception 
to  March  31 , 
1990 

Sale  of  assets 

$  232,794 

$  232,794 

$ 

Merchandise  sales 

194,512 

179,314 

15,198 

- 

Interest 

223,084 

122,295 

81,319 

19,470 

Advertising 

90,730 

3,593 

87,137 

- 

Concession 

32,711 

32,711 

- 

- 

Other 

68,809 

29,617 

39,192 

- 

$  842,640 

$  600,324 

$  222,846 

$  19,470 

5.  Subsequent  event: 

The  Society  Is  currently  in  the  process  of  being  wound-up  and  the  remaining  net  assets  will  be 
distributed  to  the  Government  of  British  Columbia. 


PUBLIC  ACCOUNTS  1991/92 


C  223 


Cloverdale  Historic  Transportation  Society  of  B.C. 


charter 

Coopers 

&Lybrand 

AUDITORS’  REPORT 


Chartered  accountants 


a  member  firm  of 

Coopers  &  Lybrand  (international) 


To  the  Members  of  Cloverdale  Historic  Transportation  Society  of  B.C. 

We  have  audited  the  balance  sheet  of  Cloverdale  Historic  Transportation  Society  of 
B.C.  as  at  March  31,  1992  and  the  statements  of  revenue  and  expenses  and 
accumulated  surplus  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  society’s  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit. 

Except  as  explained  In  the  following  paragraph,  we  conducted  our  audit  in 
accordance  with  generally  accepted  auditing  standards.  Those  standards  require 
that  we  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  common  with  many  non-profit  organizations,  the  society  derives  revenue  from 
donations,  the  completeness  of  which  is  not  susceptible  to  satisfactory  audit 
verification.  Accordingly,  our  verification  of  these  revenues  was  limited  to  the 
amounts  recorded  in  the  records  of  the  society  and  we  were  not  able  to  determine 
whether  any  adjustments  might  be  necessary  to  donation  revenue,  excess  of  revenue 
over  expenses,  assets  and  surplus. 

In  our  opinion,  except  for  the  effect  of  adjustments,  if  any,  which  we  might  have 
determined  to  be  necessary  had  we  been  able  to  satisfy  ourselves  concerning  the 
completeness  of  the  donation  revenue  referred  to  in  the  preceding  paragraph,  these 
financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of  the 
society  as  at  March  31,  1992  and  the  results  of  its  operations  for  the  year  then 
ended,  In  accordance  with  generally  accepted  accounting  principles.  As  required  by 
the  British  Columbia  Society  Act,  we  report  that  in  our  opinion,  these  principles  have 
been  applied  on  a  basis  consistent  with  that  of  the  preceding  year. 


Langley,  B.C. 

May  12,  1992,  except  as  to  note  1  which 


is  as  of  August  15,  1992 


224 


PROVINCE  OF  BRITISH  COLUMBIA 


Cloverdale  Historic  Transportation  Society  of  B.C. 

Balance  Sheet 
As  at  March  31,  1992 


1992  1991 


ASSETS 


Current  Assets 


Cash 

$ 

18,755 

$ 

1,491 

Accounts  receivable 

51,694 

3,201 

Inventories 

2,477 

8,930 

Prepaid  expenses 

15,059 

14,833 

87,985 

28,455 

Fixed  Assets 

277,556 

$ 

87,985 

$ 

306,011 

LIABILITIES 

Current  Liabilities 

Accounts  payable  and  accrued  liabilities 

$ 

71,141 

$ 

249,854 

Deferred  revenue 

2,860 

3,035 

74,001 

252,889 

ACCUMULATED  SURPLUS 

13,984 

53,122 

$ 

87,985 

$ 

306,011 

Director 


PUBLIC  ACCOUNTS  1991/92  C  225 

Cloverdale  Historic  Transportation  Society  of  B.C. 

Statement  of  Accumulated  Surplus 
For  the  Year  Ended  March  31,  1992 

1992  1991 

Balance  -  Beginning  of  Year  $  53,122  $  233,992 

Excess  (deficiency)  of  revenue  over  expenses  _ (39,138) _ (180,870) 

Balance  -  End  of  Year  $  13,984 _ $  53,122 


I  Coopers 
I  &Lybrand 


226 


PROVINCE  OF  BRITISH  COLUMBIA 


Cloverdale  Historic  Transportation  Society  of  B.C. 


Statement  of  Revenue  and  Expenses 
For  the  Year  Ended  March  31,  1992 


1992 

1991 

General  Revenue  -  Schedule  1 

$  141,177 

$  184,085 

Direct  Expenses 

(12,060) 

(41,546) 

129,117 

142,539 

Revenue  from  Provincial  Government 

B.C.  Pavilion  grant 

756,887 

1,263,181 

Total  Revenue 

886,004 

1,405,720 

Expenses  -  Schedule  2 

Salaries,  wages  and  benefits 

182,658 

352,087 

Facilities 

323,412 

431,680 

Operating 

133,086 

292,583 

Marketing  and  promotion 

72,367 

463,030 

Railway  spur  line 

(28,500) 

Restoration 

13,859 

47,210 

Total  Expenses 

696,882 

1 ,586,590 

189,122 

(180,870) 

Write-off  of  Fixed  Assets  (note  1) 

228,260 

Excess  (Deficiency)  of  Revenue 
over  Expenses 

$  (39,138) 

$  (180,870) 

I  Coopers 
I  &Lybrand 


PUBLIC  ACCOUNTS  1991/92  C 

Schedule  1 

Cloverdale  Historic  Transportation  Society  of  B.C. 

Schedule  of  General  Revenue 
For  the  Year  Ended  March  31,  1992 

1992  1991 

Gift  shop  sales  $  1 8,569  $  35,975 

Less:  Cost  of  sales  (12,583) _ (27,106) 

5,986  8,869 

Admissions  57,272  73,844 

Rentals  49,667  66,492 

Donations  and  sundries  3,533  33,234 

Corporate  sponsorships  24,583  1,500 

Investment  Income  136 _ 146 

$  141,177  $  184,085 


Total  General  Revenue 


C  228 


PROVINCE  OF  BRITISH  COLUMBIA 


Schedule  2 


Cloverdale  Historic  Transportation  Society  of  B,C. 

Schedule  of  Expenses 

For  the  Year  Ended  March  31,  1992 


1992 

1991 

Salaries,  Wages  and  Benefits 

Salaries  and  wages 

Administration  and  other 

$  139,683 

$  260,087 

Gift  shop 

16,796 

17,727 

Employee  benefits 

26,179 

28,327 

Severance 

23,686 

Employment  program  wages  and  benefits 

22,260 

182,658 

352,087 

Facilities 

Rent 

267,017 

299,040 

Maintenance  and  security 

9,594 

80,265 

Utilities 

46,801 

52,375 

323,412 

431,680 

Operating 

Depreciation 

49,296 

99,378 

Materials,  supplies  and  other 

41,235 

50,932 

Professional  fees 

42,578 

Vehicle  gas,  repairs  and  insurance 

2,321 

20,233 

Accounting  and  legal 

10,439 

17,546 

Telephone 

8,235 

11,696 

Dues,  fees,  licences  and  subscriptions 

2,623 

11,663 

Exhibits 

4,176 

10,874 

Office  supplies  and  postage 

7,110 

10,087 

Mileage  and  travel 

2,045 

9,811 

Insurance 

4,413 

5,666 

Bank  charges 

1,193 

2,119 

133,086 

292,583 

Marketing  and  Promotion 

Public  program  and  special  events 

22,441 

298,133 

Advertising 

49,926 

164,897 

72,367 

463,030 

Restoration 

13,859 

47,210 

Railway  Spur  Line 

(28,500) 

Total  Expenses 

$  696.882 

$  1,586.590 

I  Coopers 
I  &Lybrand 


PUBLIC  ACCOUNTS  1991/92 


C  229 


Cloverdale  Historic  Transportation  Society  of  B.C, 

Notes  to  Financial  Statements 
For  the  Year  Ended  March  31,  1992 


1.  Cessation  of  Operations 

The  Provincial  Government  announced  in  the  March  1 992  budget  that  funding  would  no  longer 
be  available  to  operate  the  Transportation  Museum.  As  a  result,  the  museum  closed  on  June  30, 
1 992.  Termination  of  the  premises  lease  was  negotiated  effective  June  30, 1 992  and  on  that  date 
the  society’s  leasehold  Improvements  and  other  fixed  assets  were  relinquished  to  the  landlord  and 
to  the  British  Columbia  Ministry  of  Tourism.  The  net  book  value  of  the  society’s  fixed  assets  has 
been  written  off  in  the  year.  Revenues  and  expenses  relating  to  the  operation  of  the  museum  for 
the  three  months  ending  June  30,  1992  will  be  reflected  in  the  society’s  financial  statements  for 
the  year  ending  March  31,  1993. 


2.  Significant  Accounting  Policies 

Inventories 

Inventories  are  recorded  at  the  lower  of  cost  and  net  realizable  value. 
Donations 

Donations  are  recorded  when  received  by  the  society. 


3.  Commitments 

The  society  is  committed  to  aggregate  payments  of  $54,153  under  operating  leases  expiring  on 
June  30,  1992. 


C  230 


PROVINCE  OF  BRITISH  COLUMBIA 


Creston  Valley  Wildlife  Management  Authority  Trust  Fund 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 

(604) 387-6803 
Fax  (604)387-1230 


To  the  Members  of  the 

Creston  Valley  Wildlife  Management  Authority,  and 


To  the  Minister  of  Environment,  Lands  and  Parks, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  Creston  Valley  Wildlife  Management 
Authority  Trust  Fund  as  at  March  31,  1992  and  the  statements  of  fund  balance  and 
revenue  and  expenditure  for  the  year  then  ended.  These  financial  statements  are 
the  responsibility  of  the  Trust  Fund's  management.  My  responsibility  is  to  express 
an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Trust  Fund  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Auditor  General 


Victoria,  British  Columbia 
May  29,  1992 


PUBLIC  ACCOUNTS  1991/92 


CRESTON  VALLEY  WILDLIFE  MANAGEMENT  AUTHORITY  TRUST  FUND 

BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


1992 

1991 

ASSETS 

Cash 

$  11,361 

$  63,504 

Short-term  investments  -  at  market  value 

80,835 

11,969 

Accounts  receivable 

2,213 

3,099 

Grants  receivable  -  GO  BC  (Note  3) 

24,031 

11,888 

-  Shell  Environmental  Fund 

2,489 

- 

Accrued  interest  receivable 

1,458 

4,952 

Inventory  (Note  4) 

21,622 

25,611 

Prepaid  expenses 

5.378 

5.510 

149,387 

126,533 

Long-term  investments 

(market  value  -  $51,982;  1991  -  $177,069) 

51,184 

175,468 

Fixed  assets 

1 

1 

$200,572 

$302,002 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

$  49,571 

$  41,033 

Note  payable  (Note  2) 

24,622 

50,000 

Deferred  revenue 

- 

2,489 

Refundable  security  deposits 

6.597 

5.806 

80,790 

99,328 

FUND  BALANCE 

119.782 

202.674 

$200,572 

$302,002 

The  accompanying  notes  are  an  integral  part 
of  these  financial  statements. 


rove^by  the  Management  Authority: 


D.  KfeDonald  -  Chairman 


C  231 


G.  Townsend  -  Member 


C  232 


PROVINCE  OF  BRITISH  COLUMBIA 


CRESTON  VALLEY  WILDLIFE  MANAGEMENT  AUTHORITY  TRUST  FUND 
STATEMENT  OF  FUND  BALANCE 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Operating 

Fund 

Reserve 
for  Facilities, 
Equipment  and 
Major  Works 

Fund 
Balance 
March  31.  1992 

Fund 
Balance 
March  31.  1< 

Balance  at  beginning  of  year 

$  78,546 

(Note  5) 

$124,128 

$202,674 

$278,419 

Excess  (deficiency)  of 
revenue  over  expenditure 

(82,892) 

(82,892) 

(75,745) 

(4,346) 

124,128 

119,782 

202,674 

Transfers  from  reserves 

124.128 

024.1281 

. 

. 

Balance  at  the  end  of 
the  year 

$119,782 

$  - 

$119,782 

$202,674 

PUBLIC  ACCOUNTS  1991/92 


C  233 


CRESTON  VALLEY  WILDLIFE  MANAGEMENT  AUTHORITY  TRUST  FUND 
STATEMENT  OF  REVENUE  AND  EXPENDITURE 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

REVENUE 

Grants 

Province  of  British  Columbia 

$100,000 

$100,000 

Government  of  Canada 

100,000 

100,000 

GO  BC  (Note  3) 

12,143 

88,644 

Other 

14.469 

3.830 

226.612 

292.474 

Interest 

13.784 

28.134 

Operations 

Wildlife  Centre 

12,063 

11,293 

Donations 

8,718 

4,946 

Food  services 

412 

- 

Campground 

2,001 

2,000 

Permits  and  sundry 

15,138 

16,766 

Publications  and  other  sales 

14,034 

19,591 

West  Meadows 

16,345 

15,313 

Gain  (loss)  on  sale  of  securities 

1.872 

(3.403) 

70.583 

66.506 

310.979 

.387.114 

EXPENDITURE 

Wildlife  Centre 

74,154 

63,118 

General  public  services 

9,903 

15,668 

Special  projects  -  GO  BC  (Note  3) 

8,533  ' 

91,056 

Special  projects  -  Trust  Fund  (Note  3) 

16,811 

23,257 

Food  services  and  Campground 

1,450 

908 

Support  services 

149,881 

130,938 

Wildlife  and  habitat  management 

95,358 

94,451 

Sales  expense 

22,838 

14,993 

West  Meadows 

963 

1,370 

Equipment,  machinery,  and  furniture 

5,267 

8,173 

Sick  leave  -  deceased  employee 

- 

6,673 

Severance 

10,325 

- 

Vacation,  other  earned  leave 

(1,612) 

12.254 

393.871 

462.859 

EXCESS  OF  EXPENDITURE 

OVER  REVENUE  FOR  THE  YEAR 

$(82,892) 

$(75,745) 

C  234 


PROVINCE  OF  BRITISH  COLUMBIA 


CRESTON  VALLEY  WILDLIFE  MANAGEMENT  AUTHORITY  TRUST  FUND 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  SIGNIFICANT  ACCOUNTING  POLICIES 
Trust  Fund 

The  Creston  Valley  Wildlife  Management  Authority  was  established  by  the  Creston 
Valley  Wildlife  Act.  The  Trust  Fund  is  established  by  Section  20  of  the  Act  and  includes 
all  funds  of  the  Management  Authority,  except  money  appropriated  by  a  legislature 
otherwise  than  by  way  of  grants  to  the  Trust  Fund.  All  money  of  the  Trust  Fund  is  to  be 
applied  for  wildlife  conservation,  management,  and  development  in  the  Creston  Valley 
Wildlife  Management  Area.  Continued  operation  of  the  Management  Authority  is 
dependent  on  federal  and  provincial  grants. 

Basis  of  Accounting 

These  financial  statements  have  been  prepared  in  accordance  with  generally  accepted 
accounting  principles  for  non-profit  organizations.  A  Statement  of  Changes  in  Financial 
Position  has  not  been  included  as  it  would  not  provide  additional  useful  information. 


Specific  Accounting  Policies 

Inventory  is  valued  at  the  lower  of  cost  and  net  realizable  value. 

Long-term  investments  are  recorded  at  cost  of  acquisition  adjusted  by  amortization  of 
discounts  on  a  straight-line  basis  over  the  remaining  terms  of  the  investments. 

Fixed  assets  are  expensed  in  the  year  of  acquisition. 

Donations  are  recorded  on  a  cash  basis. 

The  Authority  receives  certain  donated  materials  and  services,  such  as  biological 
advice,  support  services,  audit  fees  and  volunteer  time  in  and  around  the  wildlife 
management  area.  These  donated  materials  and  services  are  not  recorded  in  the  financial 
statements. 

2.  NOTE  PAYABLE 

The  note  payable  represents  a  revolving  demand  loan  with  the  Royal  Bank  of  Canada  | 
bearing  interest  at  the  Royal  Bank  Prime  Rate  +  lh%  per  annum. 


PUBLIC  ACCOUNTS  1991/92 


C  235 


CRESTON  VALLEY  WILDLIFE  MANAGEMENT  AUTHORITY  TRUST  FUND 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


3.  GO  BC  PROJECT  -  UPGRADE  TO  WILDLIFE  CENTRE 

During  the  fiscal  year  ended  March  31,  1992,  the  Authority  completed  upgrading  of  the 
Wildlife  Centre  building.  One  third  of  the  total  was  funded  by  the  Ministry  of  Government 
Services  through  the  Growth  and  Opportunities  BC  program  (GO  BC).  The  balance  of 
funding  was  provided  through  donated  materials  and  services  and  from  operating  funds  of 
the  Trust  Fund. 

4.  SUBSEQUENT  EVENT 

In  1992  the  gift  shop  inventory  was  sold  to  the  Friends  of  the  Creston  Valley  Wildlife 
Centre  Society,  a  non-profit  organization  which  promotes  the  interest  of  the  Creston  Valley 
Wildlife  Centre.  The  Society  opened  the  gift  shop  for  business  on  May  13,  1992. 

The  purchase  price  reflected  80%  of  book  value  of  the  inventory.  Accordingly,  a  loss 
on  the  sale  of  inventory  of  $5,405  has  been  reported  as  a  component  of  retail  sales  expense 
in  the  current  year. 

5.  WIND-UP  OF  RESERVE  FUND 

The  Reserve  Fund  was  eliminated  and  combined  with  the  operating  fund  on  April  1, 
1991. 

6.  COMPARATIVE  FIGURES 

Certain  of  the  comparative  figures  have  been  reclassified  to  conform  with  the  current 
year's  presentation. 


C  236 


PROVINCE  OF  BRITISH  COLUMBIA 


Downtown  Revitalization  Program  Society  of  British  Columbia 


KPMG  Peat  Marwick  Thorne 


Chartered  Accountants 


Third  Floor,  Royal  Bank  Building 
707  Fort  Street 

Victoria,  British  Columbia,  Canada 
V8W  3G3 


Telephone  (604)  382-8251 
Telefax  (604)  382-0622 


AUDITORS’  REPORT  TO  THE  DIRECTORS 


We  have  audited  the  balance  sheet  of  the  Downtown  Revitalization  Program  Society  of  British 
Columbia  as  at  March  31, 1992  and  the  statement  of  operations  and  surplus  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the  Society's  management.  Our  responsibility  is  to 
express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  In  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of 
the  Society  as  at  March  31,  1992  and  the  results  of  its  operations  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles.  As  required  by  the  British  Columbia 
Society  Act,  we  report  that,  in  our  opinion,  these  principles  have  been  applied  on  a  basis  consistent 
with  that  of  the  preceding  year. 


Chartered  Accountants 


Victoria,  Canada 
June  12,  1992 


iim 


Member  Firm  of 

Klynveld  Peat  Marwick  Goerdeler 


PUBLIC  ACCOUNTS  1991/92 


C  237 


I 


DOWNTOWN  REVITALIZATION  PROGRAM 
SOCIETY  OF  BRITISH  COLUMBIA 

i  Balance  Sheet 

:  March  31,  1992,  with  comparative  figures  for  1991 


1992 

1991 

Assets 

Current  assets: 

Cash 

Interest  receivable 

Investments  (note  2) 

Loans  receivable  (note  3) 

$ 

353,919 

7.740,675 

485,535 

$  7,507 

297,323 
8,805,559 
410,962 

8,580,129 

9,521,351 

Other  assets: 

Loans  receivable  (note  3) 

10,054,159 

7,614,837 

$  18,634,288 

$  17,136,188 

Liabilities  and  Capital 

Current  liabilities: 

Cheques  issued  In  excess  of  funds 
on  deposit  (note  4) 

Grants  payable 

Investment  management  fees  payable 

$  1,176,591 
269,682 
2,659 

$  — 
61,395 
2,982 

1,448,932 

64,377 

Capital: 

Contributed  capital  (note  5) 

Surplus 

15,000,000 

2,185,356 

15,000,000 

2,071,811 

Commitments  (note  7) 

17,185,356 

17,071,811 

$  18,634,288 

$  17,136,188 

See  accompanying  notes  to  financial  statements. 


!l 


C  238 


PROVINCE  OF  BRITISH  COLUMBIA 


DOWNTOWN  REVITALIZATION  PROGRAM 
SOCIETY  OF  BRITISH  COLUMBIA 

Statement  of  Operations  and  Surplus 

Year  ended  March  31,  1992,  with  comparative  figures  for  1991 


1992 

1991 

Revenue: 

Investment  interest 

$  657,014 

$1,250,505 

Loan  interest 

778,917 

473,045 

1,435,931 

1,723.550 

Grants  and  contributions: 

Facade  treatment 

593,173 

216,977 

Facade  design 

34.140 

20,000 

Concept  planning 

44,485 

39,900 

Strategy  planning 

70,012 

54,974 

Business  improvement  area 

61,128 

94,686 

Signs  and  bronze  plaques 

1,017 

5,814 

Special  projects 

7,652 

25,000 

Greenways/waterfront  study 

10,000 

- 

B.I.A.  study 

54,950 

- 

Village  square  start-up  grants 

108,802 

50,000 

Village  square  capital  works  grants 

212,937 

- 

Village  square  entrance  signs 

6,325 

- 

Village  square  facade  design 

30,000 

- 

Village  square  gold  country  grants 

14,000 

- 

1,248,621 

507,351 

187,310 

1,216,199 

Other  expenses: 

B.  C.  signage  program 

48,210 

- 

B.LA.  Video 

- 

22,386 

Investment  management  fees 

10,681 

12,969 

Professional  services 

14,874 

2,163 

73,765 

37,518 

Excess  of  revenue  over  expenses 

113,545 

1,178,681 

Surplus,  beginning  of  year 

2,071,811 

893,130 

Surplus,  end  of  year 

$2,185,356 

$2,071,811 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  239 


DOWNTOWN  REVITALIZATION  PROGRAM 
SOCIETY  OF  BRITISH  COLUMBIA 

Notes  to  Financial  Statements 
Year  ended  March  31,1 992 


The  Society  is  incorporated  under  the  British  Columbia  Society  Act  and  became  operational 
April  1,  1988.  The  goal  of  the  Society  is  to  stimulate  the  physical  and  economic  revitalization  of 
the  downtown  areas  In  British  Columbia  municipalities  by  providing  financial  and  advisory  services. 
The  Society  is  administered  by  and  reportable  to  the  Ministry  of  Municipal  Affairs,  Recreation  and 
Housing. 

1  .  Significant  accounting  policies: 

Basis  of  accounting: 

In  accordance  with  generally  accepted  accounting  principles,  the  Society  follows  the  accrual  basis 
of  accounting. 

2.  Investments: 

The  Society  has  funds  invested  in  the  Provincial  Treasury's  Pooled  Investment  Portfolio  Fund. 
Although  the  Treasury  has  the  funds  invested  In  short-term  Investments,  it  is  the  intention  of  the 
Society  to  draw  on  these  funds  over  the  long  term  as  and  when  required. 

3.  Loans  receivable: 


1992 

1991 

Loans  receivable,  beginning  of  year 

$  8,025,799 

$  3,672,985 

New  loans  issued 

Loan  repayments 

2,885,932 

(372,037) 

4,543,000 

(190,186) 

Loans  receivable,  end  of  year 

Less  current  portion  included  in  current  assets 

10,539,694 

(485,535) 

8,025,799 

(410,962) 

Loans  receivable,  end  of  year,  long-term  portion 

$  10,054,159 

$  7,614,837 

The  loans  are  repayable  to  the  Society  over  terms  up  to  15  years  with  blended  annual  payments 
of  principal  and  interest.  Interest  Is  calculated  at  9%  per  annum  on  loans  issued  in  prior  years  and 
6%  per  annum  on  loans  issued  in  the  current  fiscal  year. 

The  principal  portion  of  the  loans  due  within  one  year  have  been  classified  as  current,  the 
remaining  balances  as  non-current. 

4.  Cheques  issued  In  excess  of  funds  on  deposit: 

A  transfer  of  $1,250,000  was  made  from  the  investments  to  the  operating  bank  account  in  April 
1992  to  cover  cheques  issued  before  year  end. 


C  240 


PROVINCE  OF  BRITISH  COLUMBIA 


DOWNTOWN  REVITALIZATION  PROGRAM 
SOCIETY  OF  BRITISH  COLUMBIA 

Notes  to  Financial  Statements,  page  2 
Year  ended  March  31,  1992 


5.  Contributed  capital: 

The  contributed  capital  was  provided  by  the  British  Columbia  Lottery  Fund.  The  Society  did  not 
receive  a  contribution  from  the  Lottery  Fund  in  the  current  year  but  received  a  $5,000,000 
contribution  in  the  prior  year. 

6 .  Statement  of  changes  In  financial  position: 

A  statement  of  changes  in  financial  position  has  not  been  prepared  as  it  would  not  provide  any 
additional  information. 

7.  Commitments: 

At  year  end  the  Society  is  conditionally  committed  to  provide  future  loans  totalling  approximately 
$5,000,000. 


PUBLIC  ACCOUNTS  1991/92 


C 


Duke  Point  Development  Limited 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax  (604)387-1230 


To  the  Shareholder  of  Duke  Point  Development  Limited: 


I  have  audited  the  balance  sheet  of  Duke  Point  Development  Limited  as  at 
March  31,  1992  and  the  statement  of  operations  and  deficit  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the  Company's  management. 
My  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Company  as  at  March  31,  1992  and  the  results  of  its 
operations  for  the  year  then  ended  in  accordance  with  generally  accepted 
accounting  principles.  As  required  by  the  Company  Act  of  British  Columbia,  I 
report  that,  in  my  opinion,  these  principles  have  been  applied  on  a  basis  consistent 
with  that  of  the  preceding  year. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
Mays,  1992 


C  242 


PROVINCE  OF  BRITISH  COLUMBIA 


Duke  Point  Development  Limited 

Incorporated  under  the  laws  of  British  Columbia 

BALANCE  SHEET 


As  at  March  31 


1992  1991 

$ $ 


ASSETS 

Cash 

1,147,369 

742,760 

Accounts  receivable 

12,299 

25,524 

Net  investment  in  direct  financing  leases 

3,947,400 

3,947,400 

Property  held  for  sale  [note  2] 

7,959,000 

8,820,000 

Computer  equipment 

9,154 

— 

13,075,222 

13,535,684 

LIABILITIES 

Accounts  payable  and  refundable  deposits 

21,969 

56,859 

Unearned  revenue 

— 

45,500 

Grants  payable  in  lieu  of  property  taxes 

56,470 

46,334 

Accrued  interest  payable  [note  3] 

5,102,500 

5,102,500 

Due  to  Province  of  British  Columbia  [note  4] 

3,665,471 

3,665,471 

Industrial  Development  Subsidiary  Agreement  Loan  [note  3] 

13,000,000 

13,000,000 

Total  liabilities 

21,846,410 

21,916,664 

SHAREHOLDER’S  DEFICIT 

Deficit 

(33,201,002) 

(32,810,794) 

Contributed  surplus  [note  5J 

24,429,812 

24,429,812 

Share  capital 

Authorized 

5,000,000  common  shares,  with  no  par  value 

Issued 

2  common  shares 

2 

2 

Total  shareholder’s  deficit 

(8,771,188) 

(8,380,980) 

13,075,222 

13,535,684 

Contingencies  [note  6] 

See  accompanying  notes 

Approved  by  the  Board:  June  25,  1992 


Director 


Director 


PUBLIC  ACCOUNTS  1991/92 


C  243 


Duke  Point  Development  Limited 

STATEMENT  OF  OPERATIONS  AND  DEFICIT 


Year  ended  March  31 


1992  1991 

$  $ 


REVENUES 

Lease  financing 

450,950 

614,931 

Sale  of  property 

233,556 

11,200 

Rental 

90,442 

92,500 

IntCTest 

77,453 

67,674 

Other  income 

20,000 

— 

872,401 

786,305 

EXPENSES 

Water  and  other  utilities 

84,747 

84,747 

Professional  and  other  services 

58,561 

72.882 

Grants  in  lieu  of  property  taxes 

211,200 

213,015 

Writedown  of  property  held  for  sale 

607,000 

— 

Cost  of  property  sold 

254,000 

21,000 

Bad  debts 

47,101 

— 

1,262,609 

391,644 

Net  (loss)  income  for  the  year 

(390,208) 

394,661 

Deficit,  beginning  of  year 

(32,810,794) 

(33,205,455) 

Deficit,  end  of  year 

(33,201,002) 

(32,810,794) 

See  accompanying  notes 


C  244 


PROVINCE  OF  BRITISH  COLUMBIA 


Duke  Point  Development  Limited 

NOTES  TO  FINANCIAL  STATEMENTS 


Year  Ended  March  3 1 , 1992 


1.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES 
Reporting  entity 

Duke  Point  Development  Limited  [the  Company]  is  wholly-owned  by  the  Province  of  British  Columbia 
[the  Province].  The  Company  was  incorporated  under  the  Company  Act  of  the  Province  of  British 
Columbia  on  October  26, 1977.  As  a  government  corporation,  the  Company  is  not  subject  to  pay  federal 
or  provincial  income  taxes. 

The  shares  of  the  Company  were  transferred  as  at  August  31,  1989  from  British  Columbia  Enterprise 
Corporation  [BCEC],  a  Crown  corporation  of  the  Province,  to  the  Minister  of  Finance  and  Corporate 
Relations. 

Basis  of  presentation 

These  financial  statements  have  been  prepared  on  a  going  concern  basis.  The  Company  is  economically 
dependent  upon  the  Province.  The  Province  provides  certain  administrative  services  to  the  Company 
without  charge.  The  cost  of  providing  these  services  is  determined  to  be  not  significant. 

Net  investment  in  direct  financing  leases 

The  Company  leases  real  property  to  third  parlies  under  long-term  lease  arrangements  which  transfer 
substantially  all  the  risks  and  benefits  of  ownership  of  the  properly  to  the  lessees.  These  leases  are 
accounted  for  as  sales-type  leases  in  the  initial  lease  periods  and  as  direct  financing  leases  in  the  renewal 
periods. 

The  leases  are  carried  on  the  balance  sheet  at  the  option  prices  at  which  the  lessee  may  acquire  the 
properties. 

Finance  income  related  to  these  leases  is  recognized  as  it  is  earned. 

Property  held  for  sale 

Property  held  for  sale  is  recorded  at  the  lower  of  cost  and  net  realizable  value. 

Cost  includes  all  direct  acquisition,  construction  and  development  costs,  but  not  administrative  overheads, 
financing  charges  and  certain  other  carrying  costs. 


PUBLIC  ACCOUNTS  1991/92 


C  245 


Duke  Point  Development  Limited 

NOTES  TO  FINANCIAL  STATEMENTS 


Year  Ended  March  31, 1992 


1.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (continued) 
Computer  equipment 

Depreciation  of  computer  equipment  is  determined  at  a  rate  which  will  reduce  the  original  cost  to  estimated 
residual  value  over  the  estimate  useful  life  of  the  equipment. 

The  annual  rate  used  to  compute  depreciation  of  computer  equipment  is  20%  calculated  on  a  straight-line 
basis. 

Statement  of  changes  in  financial  position 

A  statement  of  changes  in  financial  position  has  not  been  included  with  these  financial  statements  because 
it  does  not  provide  additional  useful  information. 

2.  PROPERTY  HELD  FOR  SALE 

The  net  realizable  value  of  property  held  for  sale  as  at  March  31,  1992  was  determined  on  the  basis  of 
independent  property  appraises  dated  March  16, 1992. 

3.  INDUSTRIAL  DEVELOPMENT  SUBSIDIARY  AGREEMENT  LOAN 

The  Industrial  Development  Subsidiary  Agreement  loan  is  repayable  to  the  Province  and  bears  interest  at 
one-half  of  bank  prime  rate. 

The  scheduled  principal  repayments  are  as  follows: 

•  $6,500,000  and  related  accrued  interest  due  March  1, 1989; 

•  balance  outstanding  and  related  accrued  interest  as  the  Company  sells  or  leases  its  property. 

The  Company  did  not  make  the  payments  due  on  March  1, 1989  and  a  tentative  agreement  was  reached  with 
the  Province  whereby  the  Company  would  not  be  required  to  pay  the  $6,500,000  principal  amount  plus 
accrued  interest  of  $5,102,500  due  on  that  date.  The  Province  has  not  charged  interest  on  the  outstanding 
balance  of  the  IDS  A  loan  since  that  date. 


C  246 


PROVINCE  OF  BRITISH  COLUMBIA 


Duke  Point  Development  Limited 

NOTES  TO  FINANCIAL  STATEMENTS 


Year  Ended  March  3 1,1992 


4.  DUE  TO  PROVINCE  OF  BRITISH  COLUMBIA 


The  following  amounts  were  due  to  the  Province  of  British  Columbia  as  at  March  31: 


1992 

1991 

$ 

$ 

Opening  balance 

3,665,471 

3,680,576 

Debt  assigned  by  BCEC  to  the  Province  -  other 

— 

(15,105) 

3,665,471 

3,665,471 

No  interest  is  charged  on  amounts  due  to  the  Province. 

5.  CONTRIBUTED  SURPLUS 

Contributed  surplus  represents  indebtedness  forgiven  by  BCEC. 

6.  CONTINGENCIES 
Gain 

The  Province  has  provided  for  uncollectibility  of  the  Company’s  Industrial  Development  Subsidiary 
Agreement  loan  and  the  accrued  interest  thereon  as  at  March  31, 1989,  under  the  authority  of  Section  14  of 
the  Financial  Administration  AcL 

The  Company  may  be  able  to  record  the  forgiveness  of  this  indebtedness  at  some  future  date  if  the  Province 
undertakes  formal  debt  forgiveness  procedures  in  compliance  with  the  Financial  Administration  Act  Any 
eventual  extinguishment  of  the  debt  is  expected  to  be  recorded  as  a  credit  to  contributed  surplus  by  the 
Company. 


PUBLIC  ACCOUNTS  1991/92 


C  247 


Duke  Point  Development  Limited 

NOTES  TO  FINANCIAL  STATEMENTS 


Year  Ended  March  31, 1992 


6.  CONTINGENCIES  (continued) 

Liability 

A  contingent  loss  in  the  amount  of  $75,666  exists  in  respect  of  unpaid  municipal  taxes  of  a  lessee  of  one 
of  the  Company’s  properties.  Legal  action  was  threatened  to  recover  the  taxes  from  the  Company  after  the 
lessee  failed  to  pay  and  the  lease  agreement  was  cancelled. 

As  an  agent  of  the  Crown,  Duke  Point  Development  Limited  is  not  subject  to  taxation  under  the  Municipal 
Act  However,  management  has  agreed  to  pay  a  grant  in  lieu  of  municipal  taxes  in  the  amount  of  $10,136 
in  respect  of  the  period  immediately  following  the  cancellation  of  the  lease  agreement  This  amount  is 
recorded  as  an  account  payable. 

In  the  opinion  of  management,  the  existence  of  a  liability  for  the  remaining  $65,530  is  not  reasonably 
determinable. 

7.  SUBSEQUENT  EVENTS 

Subsequent  to  the  year  end,  the  Directors  of  the  Company  agreed  to  pay  amounts  owed  to  the  Province,  as 
follows: 


$ 


Grant  payable  in  lieu  of  1989  school  tax 
Due  to  the  Province 

750,000 


46,334 

703,666 


C  248 


PROVINCE  OF  BRITISH  COLUMBIA 


First  Peoples'  Heritage,  Language  and  Culture  Council 


Charlereci  Accountants  Suite  620  (604)3834191 

880  Douglas  Street  Fax  (604)  381  4623 

Victoria,  B.C,  V8W2B7 


Price  Uiiterhouse 


June  12,  1992 


Auditors’  Report 


To  the  Lieutenant  Governor  in  Council,  Province  of  British  Columbia 

To  the  Minister  of  Aboriginal  Affairs,  Province  of  British  Columbia 

To  the  Members  of  the  Board  of  First  Peoples’  Heritage,  Language  and  Culture  Council 


We  have  audited  the  balance  sheet  of  First  Peoples’  Heritage,  Language  and  Culture  Council  as 
at  March  31 ,  1 992  and  the  statements  of  revenue  and  expenditures  and  surplus  and  changes  in 
financial  position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the 
council’s  management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements 
based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position 
of  the  council  as  at  March  31 ,  1992  and  the  results  of  its  operations  and  the  changes  in  its  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


Chartered  Accountants 


PUBLIC  ACCOUNTS  1991/92 


C 


First  Peoples’  Heritage,  Language  and  Culture  Council 
Balance  Sheet 
March  31, 1992 


Assets 


Current  assets 

Cash  $  31.241 

Accounts  receivable  222 

Prepaid  expenses  1 , 1 93 


32,656 

Fixed  assets,  at  nominal  value  (Note  3)  2 


$  32,658 


Liabilities 
Current  liabilities 

Accounts  payable  and  accrued  liabilities  $  7,228 

Grants  payable  15,000 

22,228 


Equity 

Share  capital  (Note  5) 

100 

Surplus 

2,749 

Reserve  (Note  7) 

7,581 

10,430 

$  32,658 

Commitments  (Note  8) 


Approved  by  the  Board  /^^^g^irpersorT"'^'^^ 


250 


PROVINCE  OF  BRITISH  COLUMBIA 


First  Peoples’  Heritage,  Language  and  Culture  Council 

statement  of  Revenue  and  Expenditures  and  Surplus 

Year  ended  March  31, 1992 

Revenue 

Grants,  Ministry  of  Aboriginal  Affairs 

$  973,142 

Interest 

12,067 

985,209 

Expenditures 

Grants 

Operating 

449,493 

Feasibility  studies 

298,850 

Other 

25,000 

Wages  and  benefits 

63,687 

Furniture  and  equipment  purchases 

44,507 

Travel 

32,029 

Fund  raising 

17,419 

Rent 

9,650 

Telephone 

8,578 

Office 

7,771 

Professional  fees 

6,290 

Printed  material 

3,465 

Staff  development 

1,864 

Equipment  rental 

1,839 

Postage  and  courier 

1,148 

Utilities 

1,075 

Security 

740 

Bank  charges 

561 

Miscellaneous 

415 

Insurance 

398 

Moving 

100 

974,879 

Excess  of  revenue  over  expenditures 

10,330 

Reserve  (Note  7) 

(7,581) 

Surplus,  end  of  year 

$  2,749 

PUBLIC  ACCOUNTS  1991/92 


C  251 


First  Peoples’  Heritage,  Language  and  Culture  Council 
statement  of  Changes  in  Financial  Position 
Year  ended  March  31, 1992 


Cash  provided  by  (used  in)  operating  activities 
Earnings 


Excess  of  revenue  over  expenditures 

$  10,330 

Non-cash  operating  items 

Accounts  receivable 

(222) 

Prepaid  expenses 

(1,193) 

Accounts  payable  and  accrued  liabilities 

7,228 

Grants  payable 

15,000 

31,143 

Cash  provided  by  (used  in)  financing  activities 
Issuance  of  share  capital 


100 


Cash  provided  by  (used  in)  investing  activities 
Acquisition  of  fixed  assets 


(2) 


Increase  in  cash,  end  of  year 


$  31,241 


252 


PROVINCE  OF  BRITISH  COLUMBIA 


First  Peoples’  Heritage,  Language  and  Culture  Council 
Notes  to  Financial  Statements 
March  31, 1992 


1.  First  Peoples’  Heritage,  Language  and  Culture  Council  ('the  Council") 

The  Council  is  a  Crown  Corporation  incorporated  under  the  First  Peoples’  Heritage,  Language  and  Culture 
Act  and  is  an  agent  of  the  Crown.  The  Council  commenced  operations  April  1,  1991. 

Mission 

The  mission  of  the  Council  is  as  follows: 

•  To  preserve  and  enhance  Native  heritage,  language  and  culture. 

•  To  increase  understanding  and  knowledge  sharing,  within  both  Native  and  non-native  communities 

of  the  Province. 

•  To  heighten  appreciation  and  acceptance  of  the  wealth  of  cultural  diversity  among  all  British 
Columbians. 

2.  Significant  accounting  policies 

The  Council’s  financial  statements  are  prepared  in  accordance  with  generally  accepted  accounting 
principles  for  non-profit  organizations. 

3.  Fixed  assets 

It  is  the  policy  of  the  Council  to  expense  fixed  assets  in  the  year  of  acquisition.  The  fixed  assets  include 

furniture  and  equipment  and  are  recorded  on  the  balance  sheet  at  a  nominal  value. 

4.  Grants 
Revenue 

Contributions  from  the  Ministry  of  Aboriginal  Affairs  are  recognized  after  the  applications  from  Tribal 
Councils  have  been  approved  and  requests  for  funding  have  been  approved  by  the  Ministry. 

Expenditures 

Grants  are  recorded  as  an  expenditure  in  the  year  the  Council  has  given  its  approval  to  the  applications 
from  Tribal  Councils  and  the  Ministry  of  Aboriginal  Affairs  has  approved  the  related  funding. 

5.  Share  capital 


The  capital  of  the  Council  is  one  share  with  a  par  value  of  $1 00.  The  share  is  issued  to  and  held  by  Her 
Majesty,  the  Queen  in  right  of  the  Province  of  British  Columbia. 

6.  Related  party  transactions 

During  the  year,  feasibility  study  and  operating  grants  totalling  $240,000  were  made  to  Tribal  Councils 
having  representatives,  who  are  appointed  by  the  Lieutenant  Governor  in  Council  from  the  Advisory 
Committee,  on  the  Board  of  the  Council. 


PUBLIC  ACCOUNTS  1991/92 


C  253 


First  Peoples’  Heritage,  Language  and  Culture  Council 

Notes  to  Financial  Statements 

March  31, 1992  Page  2 


7.  Reserve 

The  Council  has  appropriated  $7,581  remaining  from  the  1991/92  fund  raising  budget  to  the  1992/93  fiscal 
year. 


8.  Commitments 

The  Council  has  entered  into  a  lease  agreement  for  office  space.  Future  minimum  payments  under  the 
lease  agreement  are  as  follows: 

1993 

1994 

$  18,900 


$  14,100 

4,800 


9.  Corporate  income  taxes 


The  Council  is  exempt  from  Federal  and  Provincial  corporate  income  taxes. 


C  254 


PROVINCE  OF  BRITISH  COLUMBIA 


Health  Facilities  Association  of  British  Columbia 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)387-6803 
Fax  (604)387-1230 


To  the  Members  of  the 

Health  Facilities  Association  of  British  Columbia,  and 

To  the  Minister  of  Health  and  Minister  Responsible  for  Seniors, 

Province  of  British  Columbia: 

I  have  audited  the  balance  sheet  of  the  Health  Facilities  Association  of  British 
Columbia  as  at  March  31,  1992  and  the  statements  of  revenue  and  expenditure  and 
changes  in  financial  position  for  the  year  then  ended.  These  financial  statements 
are  the  responsibility  of  the  Association's  management.  My  responsibility  is  to 
express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Association  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  the  accounting  principles  described  in  note  2  to  the  financial 
statements.  As  required  by  the  Society  Act  of  British  Columbia,  I  report  that,  in  my 
opinion,  these  principles  have  been  applied  on  a  basis  consistent  with  that  of  the 
preceding  year. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
June  5,  1992 


PUBLIC  ACCOUNTS  1991/92 


C  255 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
BALANCE  SHEET 
AS  AT  MARCH  31 .  1992 
ASSETS 


CURRENT  ASSETS 

1992 

1991 

Cash 

Grants  receivable  from  Province  of 
British  Columbia 

Accrued  interest  receivable 

$  479 

4,732,583 

135.528 

$  499 

2,097,693 

133.800 

4,868,590 

2,231 ,992 

MORTGAGES  RECEIVABLE  (note  3) 

2,422,368 

2,910,733 

DEFERRED  EXPENDITURES 

Grants  to  health  facilities, 
net  of  amortization 

87.631.643 

70.655.026 

$94,922,601 

$75,797,751 

LIABILITIES 

CURRENT  LIABILITIES 

Short-term  borrowings  (note  4) 

Grants  payable  to  health 
faci 1 i ties 

Accrued  interest  payable 

Current  obligations  on  debentures 

$  6,435,409 

3,501 ,280 
2,959,998 
4.243.002 

$  6,397,699 

2,248,858 
2,231 ,494 
3.301 .023 

17.139.689 

14.179.074 

LONG-TERM  DEBT 

Debentures  payable  (note  5) 

Less  sinking  funds  (note  6) 

112,176,360 

34.393.448 

95,088,627 

33.469.950 

77.782.912 

61 .618.677 

$94,922,601 

$75,797,751 

See  accompanying  notes 


C  256 


PROVINCE  OF  BRITISH  COLUMBIA 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
STATEMENT  OF  REVENUE  AND  EXPENDITURE 
FOR  THE  YEAR  ENDED  MARCH  31.  1992 


1992 

1991 

REVENUE 

Grants  from  the  Province  of 

British  Columbia 

Interest  on  mortgages  receivable 
Interest  on  sinking  fund  investments 

$18,497,852 
632,067 
3.771 .357 

$13,672,695 

630,340 

2.913.132 

22.901 .276 

17.216.167 

EXPENDITURE 

Interest  on  short-term  borrowings 
Interest  on  debentures 

Amortization  of  grants  to 
health  facilities 

462,276 

13,074,101 

9.364.899 

652,668 

11,233,064 

5.330.435 

22.901 .276 

17.216.167 

NET  RESULT  FOR  THE  YEAR 

$  Nil 

I  Nil 

See  accompanying  notes 


PUBLIC  ACCOUNTS  1991/92 


C  257 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

CASH  PROVIDED  BY: 


OPERATING  ACTIVITIES 


Net  result  for  the  year  $  Nil 

Add  items  not  involving  cash  - 
Amortization  of  grants 

to  health  facilities  9,364,899 


9,364,899 

Net  (increase)  decrease  in  non-cash 
operating  working  capital  (617,982) 

8,746,917 


FINANCING  ACTIVITIES 


Debentures  issued 

Debentures  certified  and  retired 

Increase  in  sinking  funds 

-  contributions 

-  interest  earned 

-  realization  of  sinking  funds 

to  redeem  debt 


INVESTING  ACTIVITIES 

Grants  to  health  facilities 
Reduction  in  mortgages  receivable 


(DECREASE)  IN  CASH 
DURING  THE  YEAR 


24,529,713 

(6,500,000) 

(3,301 ,024) 
(4,569,102) 

6,946,627 

17,106,214 


(26,341,516) 

488,365 


(25,853,151) 


(20) 


CASH,  BEGINNING  OF  YEAR 


499 


1991 


$  Nil 

5,330,435 

5,330,435 

3,705,844 

9,036.279 

13,294,625 

(2,685,151) 

(3,184,785) 


7,424,689 


(16,869,887) 

408,900 

(16.460,987) 

(19) 

^ 


CASH,  END  OF  YEAR 


S  479  $  499 


See  accompanying  notes 


C  258 


PROVINCE  OF  BRITISH  COLUMBIA 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31.  1992 


1 .  Nature  of  the  Association 


Health  Facilities  Association  of  British  Columbia  was  incorporated 
under  the  Society  Act  on  October  15,  1975.  The  Association  raises 
capital  through  the  issuance  of  debentures  to  the  British  Columbia 
Regional  Hospital  Districts  Financing  Authority  or  by  short-term 
borrowings  under  the  Province  of  British  Columbia's  Certificate  of 
Approval  Program  to  assist  in  financing  the  capital  costs  of 
hospital  projects,  medical  and  health  facilities,  and  community 
human  resources  and  health  centres  in  the  Province  of 
British  Columbia.  Costs  of  servicing  the  debentures  and  short-term 
borrowings  are  paid  through  grants  received  from  the  Province  of 
British  Columbia.  The  Association  is  economically  dependent  on  this 
funding  for  its  continued  operations. 


2.  Significant  Accounting  Policies 

a)  Grants  to  health  facilities  are  recognized  as  deferred 
expenditures  of  the  Association  when  the  goods  or  services  are 
acquired  by  the  facilities.  These  assets  are  amortized  by  an 
annual  charge  to  expenditures  equivalent  to  contributions  to  the 
sinking  funds,  interest  earned  on  sinking  fund  investments, 
other  reductions  of  debenture  principal  and  pay  down  of 
short-term  borrowings. 

b)  Grants  from  the  Province  of  British  Columbia  for  the  retirement 
of  the  principal  of  debentures  issued  are  recorded  when  paid  by 
the  Province.  Grants  for  the  payment  of  interest  on  the 
debentures  are  recognized  as  the  interest  accrues. 

c)  Sinking  funds  established  for  repayment  of  debentures  may 
accumulate  earnings  at  higher  rates  than  originally  forecast. 
When  the  Minister  of  Finance  and  Corporate  Relations  certifies 
that  the  assets  in  a  particular  sinking  fund  are  sufficient  to 
meet  all  obligations  respecting  the  payment  of  principal  and 
interest  under  the  debenture,  the  Association  shall  transfer  the 
assets  in  the  sinking  fund  to  the  British  Columbia  Regional 
Hospital  Districts  Financing  Authority.  Upon  transfer  of  the 
assets,  the  Association  is  discharged  from  all  obligations  under 
the  debenture.  Any  excess  assets  remaining  in  the  sinking  fund 
accrue  to  the  Province  of  British  Columbia. 

d)  The  Province  of  British  Columbia  absorbs  the  cost  of  certain 
administrative,  accomodation  and  audit  services  associated  with 
the  operation  of  the  Association.  The  cost  of  providing  these 
services  is  determined  not  to  be  significant,  and  therefore,  is 
not  recorded  in  these  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  259 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31.  1992 


3.  Mortgages  Receivable 


1992  1991 


Oak  Bay  Lodge  Society: 

10.49  percent  sinking  fund 
mortgage  secured  by  real 
estate,  due  October  10,  1999 

$5,000,000 

$5,000,000 

15.12  percent  sinking  fund 
mortgage  secured  by  real 
estate,  due  April  8,  2002 

700.000 

700.000 

5,700,000 

5,700,000 

Less:  Sinking  fund 

3.277.632 

2.789.267 

$2,422,368 

$2,910,733 

4.  Short-Term  Borrowings 

Short-term  borrowings  represent  cash  advances  received  from 
the  Canadian  Imperial  Bank  of  Commerce  under  the  Province  of 
British  Columbia's  Certificate  of  Approval  Program.  Repayment  of 
these  advances  is  guaranteed  by  the  Province  of  British  Columbia. 


C  260 


PROVINCE  OF  BRITISH  COLUMBIA 


HEALTH  FACILITIES  ASSOCIATION  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31.  1992 


5.  Debentures  Payable 

1992  1991 


Year  of  Maturity 

Canadian 

Dollar 

Debt 

Weighted 

Average 

Interest 

Rate 

Canadian 

Dollar 

Debt 

Weighted 

Average 

Interest 

Rate 

1992-1993 

$  2,061,000 

9.25% 

$  2,061,000 

9.25% 

1993-1994 

1,076,714 

7.69% 

1 ,076,714 

7.69% 

1994-1995 

125,363 

9.75% 

125,363 

9.75% 

1995-1996 

- 

- 

1 ,500,000 

8.95% 

1996-1997 

6,462,162 

9.55% 

10,000,000 

9.23% 

1997-2002 

57,124,685 

12.46% 

49,379,227 

12.90% 

2002-2007 

27,443,000 

12.26% 

27,443,000 

12.26% 

2007-2012 

22.126.438 

10.06% 

6.804.346 

10.94% 

116,419,362 

11.69% 

98,389,650 

12.02% 

Less  current 

obligations  on 

debentures 

4.243.002 

3.301.023 

$112,176,360 

$95,088,627 

All  debentures  are  of  the  sinking  fund  variety  and  are  issued  to  the 
British  Columbia  Regional  Hospital  Districts  Financing  Authority 


(BCRHDFA).  Most  of  the  debentures  are  redeemable 
at  the  option  of  the  Chairman  of  the  BCRHDFA. 

in  whole  or  in  part 

Contributions  to  debenture 
five  years  are  as  follows: 

sinking  funds  required 

in  each  of  the  next 

1993 

$4,243,002 

1994 

$3,891 ,692 

1995 

$3,708,651 

1996 

$3,680,830 

1997 

$3,295,466 

PUBLIC  ACCOUNTS  1991/92 


C  261 


HEALTH  FACILITIES  ASSXIATION  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31.  1992 


6.  Sinking  Funds 


Investments 
Accrued  interest 


1992 


1991 


$33,960,474  $32,914,065 

432.974  555.885 

$34.393.448  $33.469.950 


Debenture  sinking  funds  are  managed  by  the  Ministry  of  Finance  and 
Corporate  Relations.  The  funds  are  invested  in  units  of  the 
Province  of  British  Columbia  Pooled  Investment  Portfolios  ST1  and 
ST2,  which  are  valued  at  the  lower  of  cost  adjusted  for  attributed 
income  and  market,  and  in  long-term  Canadian  and  Provincial 
Government  bonds,  which  are  valued  at  amortized  cost. 


7.  Commi tments 


As  at  March  31,  1992,  the  Association  has  made  commitments  to 
health  care  facilities  for  approved  projects  totalling  $58.9  million 
(1991  -  $31 .4  million). 


C  262 


PROVINCE  OF  BRITISH  COLUMBIA 


Insurance  Corporation  of  British  Columbia 


AUDITORS’  REPORT 


The  Honourable  Moe  Sihota 

Minister  of  Labour,  Consumer  Services  and  Constitutional  Affairs 
Province  of  British  Columbia 


We  have  audited  the  balance  sheets  of  the  Insurance  Corporation  of  British  Columbia  as  at 
December  31,  1991  and  1990  and  the  statements  of  operations  of  the  Insurance  (Motor  Vehicle) 
Act  Fund  and  changes  in  financial  position  for  the  years  then  ended.  These  financial  statements  are 
the  responsibility  of  the  Corporation’s  management.  Our  responsibility  is  to  express  an  opinion  on 
these  financial  statements  based  on  our  audits. 

We  conducted  our  audits  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial 
position  ol  the  Corporation  as  at  December  31,  1991  and  1990  and  the  results  of  its  operation  of 
the  Insurance  (Motor  Vehicle)  Act  Fund  and  the  changes  in  its  financial  position  for  the  years  then 
ended  in  accordance  with  generally  accepted  accounting  principles. 


Chartered  Accountants 
Vancouver.  British  Columbia 
February  6.  1 992 


PUBLIC  ACCOUNTS  1991/92 


C  263 


I  1  CPC  I 

BALANCE  SHEETS 

Aj  at  Daanhcr  31.  1991  and  1990 


($  Thousands) 

1991 

1990 

Assets 

Cash  in  hands  of  agents 

$  13,730 

$  11,951 

Investments  (Note  3) 

2,748,957 

2,573,456 

Accrued  interest  receivable 

55,948 

103,895 

Accounts  receivable 

20,397 

11,886 

Deferred  premium  acquisition  expenses 

69,375 

60,520 

Property  and  equipment  (Note 4) 

124,153 

1  3,032,560 

124,943 
$  2,886,651 

Liabilities 

Cheques  outstanding 

$  16,990 

$  16,749 

Accounts  payable  and  accrued  charges 

73,225 

53,936 

Premiums  and  fees  in  advance 

48,414 

46,287 

Deferred  investment  gains  and  losses  (Note  3) 

10,926 

36,075 

Unearned  premiums 

596,186 

529,050 

Unpaid  claims 

2,217,562 

2,963,303 

2,036,899 

2,718,996 

Insurance  (Motor  Vehicle)  Act  Fund  Surplus 

Catastrophe  Reserve  (Note  6) 

30,000 

30,000 

Rate  Stabilization  Reserve  (No/e  6) 

39,000 

82,000 

Unappropriated  Surplus 

257 

55,655 

69,257 

167,655 

$  3,032,560 

$  2,886,651 

Director 


C  264 


PROVINCE  OF  BRITISH  COLUMBIA 


I  ICBC  I 

INSURANCE  (MOTOR  VEHICLE)  ACT  FUND 
STATEMENT  OF  OPERATIONS 
For  the  years  ended  December  31.  1991  and  1 990 


($  Thousands) 

1991 

1990 

Revenue 

Vehicle  premiums  written 

$  1,582,019 

$  1,444,897 

Driver  premiums  written 

19,876 

15,189 

$  1,601,895 

$  1,460,086 

Vehicle  premiums  earned 

$  1,517,911 

$  1,393,779 

Driver  premiums  earned 

16,848 

19,316 

1,534,759 

1,413,095 

Claims  costs 

Claims  incurred 

1,535,483 

1,362,791 

Claims  operation  expenses 

149,874 

127,710 

1,685,357 

1,490,501 

Expenses 

Administrative 

90,492 

81,623 

Commissions 

111,617 

99,065 

Premium  tax 

61,515 

56,653 

263,624 

237,341 

Total  claims  and  expenses 

1,948,981 

\  ,121  M2 

Underwriting  loss 

(414,222) 

(314,747) 

Investment  income 

315,824 

331,937 

Income  (loss)  for  the  year 

(98,398) 

17,190 

Unappropriated  surplus  -  beginning  of  year 

55,655 

55,465 

Appropriation  from  (to)  Rate  stabilization  reserve 

43,000 

(17,000) 

Unappropriated  surplus  -  end  of  year 

$  257 

%  55,655 

PUBLIC  ACCOUNTS  1991/92 


C  265 


I  ICBC  I 

STATEMENTS  OF  CHANGES 
IN  FINANCIAL  POSITION 

For  the  years  enckJ  Dcca/iher  3 1 ,  1991  and  1990 


(i  Thousands)  1991  1990 


Operating  Activities 

Cash  received  from: 


Agents  for  vehicle  premiums,  licence  fees  and  social  service  taxes 

$  1,889,328 

$  1,732,483 

Interest  and  net  gains  on  investments 

Collections  for  driver  point  penalty  premiums,  subrogation 

338,593 

269,374 

and  other  receivables 

53,990 

47,975 

Salvage  sales 

26,558 

22,342 

All  others 

30 

(16) 

2,308,499 

2,072,158 

Cash  paid  to: 

Claimants  or  third  parties  on  behalf  of  claimants 

Province  of  British  Columbia  for  licence  fees 

1,407,476 

1,122,979 

and  social  service  taxes  collected 

227,744 

208,046 

Province  of  British  Columbia  for  premium  taxes 

62,126 

57,240 

Suppliers  of  goods  and  services 

67,992 

61,656 

Suppliers  of  plates  and  decals  on  behalf  of  Motor  Vehicle  Branch 

2,239 

— 

Vendors  of  land,  buildings  and  equipment 

19,809 

32,438 

Employees  for  salaries  and  benefits 

157,892 

136,095 

Agents  for  commissions 

114,209 

102,144 

Policyholders  for  premium  refunds 

71,973 

70,321 

2,131,460 

1,790,919 

Increase  in  cash  and  investments  during  the  year  ( Note  7 ) 

177,039 

281,239 

Cash  and  investments  -  beginning  of  year 

2,568,658 

2,287,419 

Cash  and  investments  -  end  of  year 

$  2,745,697 

$  2,568,658 

Represented  by: 

Cash  in  hands  of  agents 

$  13,730 

$  11,951 

Investments 

2,748,957 

2,573,456 

Cheques  outstanding 

(16,990) 

(16,749) 

$  2,745,697  $  2,568,658 


C  266 


PROVINCE  OF  BRITISH  COLUMBIA 


I  ICBC  I 

NOTES  TO  FINANCIAL  STATEMENTS 
For  the  years  ended  Decetnher  31-  1991  and  1 990 


1.  Status  of  the  Corporation 

The  Insurance  Corporation  of  British  Columbia  (the  Corporation)  is  a  Crown  corporation 
incorporated  under  the  Insurance  Corporation  Act,  R.S.B.C.  Chapter  20 1.  The  Corporation 
operates  and  administers  the  Insurance  (Motor  Vehicle)  Act  Fund  and,  as  required  by  legislation, 
reports  the  revenues  and  expenses  attributable  to  the  operation  of  the  Insurance  (Motor  Vehicle) 
Act  Fund  separately  from  other  operations  of  the  Corporation,  if  any.  The  Corporation  also  has 
the  power  and  capacity  to  act  as  an  insurer  and  reinsurer  in  all  classes  of  insurance,  but  is  not 
presently  engaged  in  any  such  activities. 


2.  Summary  of  Significant  Accounting  Policies 

Basis  of  Reporting 

The  financial  statements  of  the  Corporation,  as  required  by  the  Insurance  Corporation  Act,  are 
prepared  in  accordance  with  generally  accepted  accounting  principles.  The  more  significant 
accounting  policies  adopted  are  noted  below. 

Investments  and  Investment  Income 

Bonds  are  valued  at  amortized  cost  with  any  premium  or  discount  on  purchase  being  deferred  and 
amortized  over  the  term  to  maturity  of  each  bond.  Money  market  securities  and  equities  are 
valued  at  cost.  Income  on  interest  bearing  securities  is  accrued  daily.  Dividends  on  equity 
investments  are  recognized  as  income  on  their  payment  dates. 

Capital  gains  and  losses  realized  on  bond  sales  are  deferred  and  amortized  over  the  term  to 
maturity  of  the  bond  or  60  months,  whichever  is  less.  Capital  gains  and  losses  on  money  market 
securities  and  equity  investments  are  included  in  income  in  the  period  realized. 

Deferred  Premium  Acquisition  Expenses 

Commissions  and  premium  taxes  are  expensed  over  the  terms  of  the  insurance  policies  to  which 
they  relate. 

Depreciation  and  Amortizatton 

Depreciation  is  provided  on  a  straight-line  basis  at  rates  which  will  amortize  the  original  cost 
over  the  useful  life  of  each  asset.  Leasehold  improvements  are  amortized  over  the  term  of  each  lease. 

Unearned  Premiums 

Unearned  premiums  is  that  portion  of  premiums  that  relates  to  the  unexpired  term  of  each 
vehicle  policy  or  driver’s  point  penalty  premium. 

Unpaid  Claims 

The  provision  for  unpaid  claims  includes  an  estimate  for  reported  and  unpaid  claims  and 
expenses,  based  on  the  claim  settlement  experience  of  the  Corporation,  current  trends  and  a 
detailed  review  of  claim  files.  Also  included  are  estimates  for  unreported  claims  and  for 
protection  against  uncertainty  related  to  settling  currently  outstanding  claims  in  future  periods. 

3.  Investments 


799/  /990 


(t  Than  sands) 

Cost 

Market 

Cost 

Market 

Money  market  securities 

Bonds 

Equities 

$  1, 196,95 1  , 
1,548,688 
3,318 

%  1,196,951 
1,580,786 
3,551 

$  1,934,063 
636,282 
3,111 

$  1,934,063 
634,783 
2,976 

$2,748,957 

$2,781,288 

$  2,573,456 

$  2,571,822 

PUBLIC  ACCOUNTS  1991/92 


C  267 


4.  Property  and  Equipment 


/99/  I  WO 


(S  ThnufaiiJ.i) 

Cost 

Nd  Hook 
Viilite 

Cost 

Nd  Hook 
Value 

Land 

$ 

22,li}> 

$ 

22.733 

$ 

22,733 

$ 

22,733 

Buildings 

1  12,042 

65,985 

108,068 

67.499 

Furniture  and  equipment 

95,130 

.34,456 

81,560 

33,822 

Leasehold  improvements 

2,053 

979 

1,558 

889 

$ 

231.958 

$ 

124.153 

$ 

213,919 

$ 

124.943 

Depreciation  has  been  char|;ed  at  the  following  rates:  buildings  5  -  10%,  furniture  and 
equipment  10  -  33.3%.  Depreciation  expense  for  the  year  ended  December  31,  1991  amounted 
to  $20,216,000  (1990  -  $17,456,000). 


5.  Deferred  Investment  Gains  and  Losses 


($  Thousands) 

1991 

1990 

Balance  deferred  -  beginning  of  year 

Net  realized  gains  (losses)  during  year 

Amount  included  in  investment  income 

$ 

36.075 

3,212 

(28..361  ) 

$  67,882 

(54) 

(31,753) 

Balance  deferred  -  end  ol  year 

$ 

1 0.926 

S  36.075 

6.  Insurance  (Motor  Vehicle)  Act  Fund  Surplus 

A  catastrophe  reserve  has  been  established  in  accordance  with  industry  practice  to  provide 
financial  and  reinsurance  stability.  A  rate  stabilization  reserve  has  been  established  to  lessen  the 
impact  on  premiums  of  significant  variations  in  claims  loss  experience.  The  Board  of  Directors 
approved  the  transfer  of  $43,000,000  from  the  rate  stabilization  reserve  in  1991.  During  1990  an 
amount  of  $17,000,000  was  appropriated  to  the  rate  stabilization  reserve. 

7.  Statement  of  Changes  in  Financial  Position 

The  statement  has  been  prepared  using  the  “direct  method"  in  accordance  with  the  accounting 
guideline  of  the  Canadian  Institute  of  Chartered  Accountants  on  Statements  of  Changes  in 
Financial  Position  for  Financial  Institutions  dated  June  1991.  This  method  of  presentation 
discloses  the  net  cash  flow  generated  from  operations  by  showing  the  components  of  cash  from 
operations.  Also  in  accordance  with  the  guideline,  a  reconciliation  between  income  (loss)  and 
increase  in  cash  and  investments  is  shown  below. 


(S  Thousands) 

1991 

1990 

Income  (Loss)  for  the  year 

$  (98,398) 

$  17,190 

Add:  Increase  in  unpaid  claims 

180,663 

287,470 

Increase  in  unearned  premiums 

67,136 

46,991 

Increase  in  premiums  &  fees  in  advance 

2,127 

3,714 

Increase  in  accounts  payable  and  accrued  charges 

19,512 

10,221 

Decrease  (increase)  in  accrued  interest  receivable 

Al,9Al 

(30,545) 

Depreciation 

20,216 

17,456 

Realized  gain  on  investments 

3,212 

— 

Other 

154 

(863 ) 

340,967 

3.34,444 

Less:  Amortization  of  deferred  investment  gains  &  losses 

28,361 

31,753 

Increase  (decrease)  in  accounts  receivable 

8,505 

(423) 

Increase  in  deferred  premium  acquisition  expenses 

8,855 

6,627 

Expenditures  on  land,  building  and  equipment 

19,809 

32,438 

65,530 

70.395 

Increase  in  cash  &  investments  during  the  year 

$  177.039 

$  281,239 

C  268 


PROVINCE  OF  BRITISH  COLUMBIA 


8.  Reinsurance 

The  Corporation  underwrites  policies  of  insurance  and  has  obtained  reinsurance  on  those  policies 
that  protects  the  Corporation  against  losses  of  up  to  $  1 00, (){)(),()()()  and  limits  the  Corporation’s 
liability  to  $10,000,000,  in  the  event  of  one  or  more  claims  arising  out  of  a  single  occurrence.  In 
addition,  where  in  any  one  occurrence,  the  total  of  all  claims  exceeds  $10,000,000,  the 
Corporation  would  be  liable  for  its  portion  of  a  single  bodily  injury  claim  that  exceeds 
$5,000,000.  These  reinsurance  arrangements  do  not  discharge  the  Corporation's  obligation  as 
primary  insurer. 

9.  Related  Party  Transactions 

The  Corporation  is  the  sole  provider  of  compulsory  automobile  insurance  in  British  Columbia 
and,  therefore,  insures  vehicles  owned  or  leased  by  the  government  of  the  province  and  its 
controlled  entities.  The  Corporation  also  acts  as  agent  for  the  Motor  Vehicle  Branch  regarding 
the  collection  of  motor  vehicle  licence  fees  and  for  the  Ministry  of  Finance  and  Corporate 
Relations  regarding  the  collection  of  social  service  taxes  on  privately  sold  used  vehicles. 

During  the  year,  the  Corporation  took  over  certain  functions  that  were  previously  performed 
by  the  Vehicle  Services  Division  of  the  Motor  Vehicle  Branch.  The  Corporation  is  now 
responsible  for  collecting  all  vehicle  related  revenue  for  the  Motor  Vehicle  Branch  and  acquiring 
and  distributing  licence  plates  and  decals.  The  Corporation  has  therefore  entered  into  an 
agreement  with  the  Motor  Vehicle  Branch  whereby  the  Corporation  will  receive  a  percentage  of 
the  revenue  collected  to  recover  the  cost  of  licence  plates,  decals  and  additional  operating 
expenses  relating  to  these  functions.  A  recovery  of  $3,268,000  has  been  credited  to  the 
administrative  expense  for  the  year. 

10.  Pension  Plans 

The  Corporation  maintains  two  contributory  defined  benefit  pension  plans  that  provide 
retirement  benefits  for  substantially  all  regular  employees,  based  on  their  length  of  service  and 
best  years’  average  earnings.  The  plans  are,  to  all  intents  and  purposes,  identical  and  are  funded 
through  a  single  fund  -  ICBC  Employees’  Retirement  Trust  Fund. 

The  present  value  of  the  accrued  pension  benefits  and  the  net  assets  at  market  value  available 
to  provide  these  benefits  are  as  follows: 

(S  Thousands) _ _ 1990 

Accrued  pension  benefits  $  110,380  $  89,394 

Retirement  Fund  assets  at  market  value  $  129,358  $  102,240 

The  values  of  the  accrued  pension  benefits  as  at  December  31,  1991  and  1990  are  based  on 
actuarial  valuations  that  take  into  account  projected  employee  compensation  levels  at  the  time  of 
retirement,  the  rate  of  inflation  and  the  rate  of  return  on  the  Fund’s  assets. 

The  Corporation’s  pension  contribution  of  $5,554,000  (1990  -  $4,465,000)  matches  the 
employees’  contribution.  These  have  both  been  established  taking  into  account  the  amortization 
of  experience  and  investment  gains  and  losses  over  the  expected  average  remaining  service  life  of 
the  employees  in  the  plans. 


PUBLIC  ACCOUNTS  1991/92 


C  269 


Medical  Services  Commission  of  British  Columbia 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax  (604)  387-1230 


To  the  Chairman  of  the 

Medical  Services  Commission  of  British  Columbia,  and 

To  the  Minister  of  Health, 

Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  Medical  Services  Commission  of  British 
Columbia  as  at  March  31,  1992  and  the  statement  of  operations  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the  Commission's  management.  My 
1  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  generally  accepted  auditing  standards.  Those 
!  standards  require  that  I  plan  and  perform  an  audit  to  obtain  reasonable  assurance  whether 
I  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. 
1  An  audit  also  includes  assessing  the  accounting  principles  used  and  significant  estimates 
[  made  by  management,  as  well  as  evaluating  the  overall  financial  statement  presentation. 

I  In  my  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the 
'  financial  position  of  the  Commission  as  at  March  31,  1992  and  the  results  of  its  operations 
for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
July  24,  1992 


270 


PROVINCE  OF  BRITISH  COLUMBIA 


MEDICAL  SERVICES  COMMISSION  OF  BRITISH  COLUMBIA 


BALANCE  SHEET 
AS  AT  MARCH  31,  1992 
(diousaiids  oF  dollars) 


1992  1991 

$  $ 


ASSETS 


Cash . 

.  13,615 

33,818 

Accounts  Receivable  (Note  6)  . 

.  7,031 

28,113 

Due  from  the  Province  of 

British  Columbia . 

.  119.284 

176.645 

139.930 

238.576 

LIABILITIES 


Accounts  Payable  (Note  6)  .  9,058  5,998 

Unpaid  Claims  (Note  3) .  130.872  232.578 

139.930  238.576 


The  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


C.  B.  Henderson,  M.D.,  Chairman 


PUBLIC  ACCOUNTS  1991/92 


C  271 


MEDICAL  SERVICES  COMMISSION  OF  BRITISH  COLUMBIA 

STATEMENT  OF  OPERATIONS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 
(thousands  of  dollars) 


1992 

$ 


1991 

$ 


EXPENDITURE 


Service  Costs 

Medical  Care  (Note  5)  .  1 ,352,784 

Supplementary  Care . 94.523 

1.447.307 

Administration 

Data  Processing .  1 1 ,048 

General  Office  .  6,940 

Salaries .  16.229 

34.217 


1.481.524 


1,243,201 

77.139 

1.320.340 


9,937 

5,773 

14.974 

30.684 

1.351.024 


CONTRIBUTIONS 


Province  of  British  Columbia  (Note  4) 


1.481.524 


1.351.024 


The  accompanying  notes  are  an  integral  part  of  these  financial  statements 


C  272 


PROVINCE  OF  BRITISH  COLUMBIA 


MEDICAL  SERVICES  COMMISSION  OF  BRITISH  COLUMBIA 

NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  THE  COMMISSION 

The  Medical  Services  Commission  was  established,  effective  July  1,  1968,  by  the  Government  of  the 
Province  of  British  Columbia  under  the  Medical  Service  Act  and  Regulations,  to  administer  and  operate 
the  Medical  Services  Plan. 

The  Medical  and  Health  Care  Services  Act,  came  into  effect  July  24,  1992,  and  replaced  the  Medical 
Service  Act  as  the  legal  authority  for  the  Medical  Services  Commission  to  administer  and  operate  the 
Medical  Services  Plan. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

The  financial  statements  have  been  prepared  in  accordance  with  generally  accepted  accounting  principles 
for  non-profit  organizations.  A  statement  of  changes  in  financial  position  has  not  been  included  as  it 
would  not  provide  additional  useful  information. 

The  cost  of  furniture  and  equipment  is  charged  to  administration  expense  in  the  year  of  acquisition. 

The  Commission  contributes  prescribed  amounts  to  the  Public  Service  Superannuation  Fund  on  behalf  of 
its  employees. 

The  Province  of  British  Columbia  pays  certain  administration  and  accommodation  costs  associated  with 
the  operation  of  the  Commission. 


3.  UNPAID  CLAIMS 

The  unpaid  claims  liability  represents  an  estimate  of  claims  for  services  performed  in  the  year  that  were 
unpresented  or  unprocessed  at  year  end. 

4.  CONTRIBUTIONS  FROM  THE  PROVINCE  OF  BRITISH  COLUMBIA 

1992  1991 

$  $ 

(thousands  of  dollars) 

1,274,677  1,167,971 

206.847  183.053 

1.481.524  1.351.024 


General  Contributions 
Premium  Assistance  . 


PUBLIC  ACCOUNTS  1991/92 


C  273 


MEDICAL  SERVICES  COMMISSION  OF  BRITISH  COLUMBIA 

NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


5.  RETROACTIVE  PAYMENTS  INCLUDED  IN  1991  FIGURES 

Medical  care  expenditures  for  the  1991  fiscal  year  include  $42,443  million  for  retroactive  payments  to 
physicians  for  services  performed  during  the  1990  fiscal  year. 


6.  SUBSEQUENT  EVENTS 

Medical  Care  Service  Utilimtion 

Under  the  terms  of  a  memorandum  of  agreement,  a  portion  of  utiliziition  funding  for  the  period  April  1, 
1989  to  March  31,  1992,  was  to  be  shared  by  the  Commission  and  the  British  Columbia  Medical 
Association. 

This  memorandum  described  utilization  as  the  change  in  service  costs  attributable  to  increased  usage,  but 
not  including  increased  costs  arising  from  population  or  fee  increases. 

The  Commission  estimated  the  1992  fiscal  year  utilization  receivable  from  the  British  Columbia  Medical 
Association  to  be  $22,901  million  at  March  31,  1992. 

Subsequent  to  March  31,  1992,  this  receivable  was  forgiven,  pursuant  to  the  Financial  Administration  Act, 
and  as  a  result  is  not  included  in  these  financial  statements. 

Professional  Retirement  Savings  Plan 

Under  the  terms  of  a  memorandum  of  agreement,  the  Medical  Seiwices  Commission  was  to  contribute 
$25  million  annually,  commencing  in  the  1992  fiscal  year,  to  the  retirement  savings  plan  for  eligible 
physicians. 

Subsequent  to  March  31,  1992,  the  Professional  Retirement  Savings  Plan  AL^reement  Extinguishment  Act 
eliminated  any  obligation  of  the  Commission  to  pay  $25  million  on  March  31,  1992,  or  to  make 
subsequent  annual  payments  of  $25  million.  As  a  result,  no  amount  is  included  in  these  financial  statements 
related  to  the  retirement  savings  plan. 


C  274 


PROVINCE  OF  BRITISH  COLUMBIA 


Okanagan  Valley  Tree  Fruit  Authority 


Certified  General  Accountants 


Penticton  Kelowna  North  Vancouver  Princeton  Grand  Forks 


STRENGTH  IN  NUMBERS 


Tom  Kemp,  f.c.g.a. 
Bob  Harvey,  B.Sc.,  c.g.a. 


AUDITORS’  REPORT 


To  the  Directors  of  the  Okanagan  Valley  Tree  Fruit  Authority: 

We  have  audited  the  balance  sheet  of  the  Okanagan  Valley  Tree  Fruit  Authority  as  at  March  31, 
1992,  and  the  statements  of  revenue  and  expenditure  and  changes  in  financial  position  for  the  year 
then  ended.  These  financial  statements  are  the  responsibility  of  the  Authority’s  management.  Our 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  plan  and  perform  the  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position 
of  the  Authority  as  at  March  31,  1992  and  the  results  of  its  operations  and  changes  in  its  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles. 

We  express  no  opinion  on  the  unaudited  comparative  figures  for  the  eight-month  period  ended 
March  31.  1991. 


Penticton,  B.C. 
June  6,  1992 


CERTIFIED  GENERAL  ACCOUNTANTS 


44  5  Ellis  Street.  Penticton,  B.C.  V2A  4M1  Fax  (604  )492-6921  Phone  (604)  492-8800 


PUBLIC  ACCOUNTS  1991/92 


C  275 


STATEMENT  A 


OKANAGAN  VALLEY  TREE  FRUIT  AUTHORITY 
BALANCE  SHEET 
MARCH  31,  1992 


ASSETS 


CURRENT  ASSETS 

1992 

1991 
Note  (5) 

Cash  and  investments 

$  1,316,162 

$  703,442 

Contributions  receivable 

12,265,000 

- 

Miscellaneous  accounts  receivable 

8,237 

6,335 

Prepaid  expenses 

8,986 

12,115 

TOTAL  ASSETS 

$13,598,385 

$  721,892 

LIABILITIES 


CURRENT  LIABILITIES 

Accounts  payable  and  accruals  $  276,736 

Current  portion  of  long-term  debt  1,975 


278.71 1 

LONG-TERM  DEBT 

Conditional  sales  contract  payable  4,178 


282,889 


EQUITY 

RETAINED  EARNINGS  -  Statement  B 
Appropriated  -  Note  (3) 

Unappropriated 


13,315,496 


12,265,000 

1,050,496 


TOTAL  LIABILITIES  AND  EQUITY 


$13,598,385 


$  207,594 


207,594 


207.594 


514,298 


514,298 


$  721,892 


See  accompanying  notes  to  financial  statements. 


C  276 


PROVINCE  OF  BRITISH  COLUMBIA 


STATEMENT  B 


OKANAGAN  VALLEY  TREE  FRUIT  AUTHORITY 
STATEMENT  OF  REVENUE  AND  EXPENDITURE 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 
(12  Months) 


1991 
(8  Months) 
Note  (5) 


REVENUE  -  Note  (4) 

$  3.672.033 

$  1.690.799 

EXPENDITURE 

Orchard  renovation 

1.179.284 

17.735 

Management  services  and  administration 

1.043.490 

441.703 

Stakeholder  enhancement 

278.502 

58,645 

Land  use 

244.502 

147.083 

Market  opportunities 

171.362 

96.380 

Communications 

85.700 

97,446 

Information  systems 

82.742 

317,509 

Financial  security 

50.253 

- 

3.135.835 

1,176,501 

EXCESS  OF  REVENUE  OVER  EXPENDITURE 

BEFORE  OTHER  INCOME 

536.198 

514,298 

OTHER  INCOME  -  Note  (3) 

12.265.000 

- 

EXCESS  OF  REVENUE  OVER  EXPENDITURE 

12.801.198 

514,298 

RETAINED  EARNINGS,  beginning  of  year 

514.298 

- 

RETAINED  EARNINGS,  end  of  year 

$13,315,496 

$  514,298 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


C  111 


STATEMENT  C 


OKANAGAN  VALLEY  TREE  FRUIT  AUTHORITY 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

(12  Months) 

(8  Months) 
Note  (5) 

OPERATIONS 

Excess  of  revenue  over  expenditure 

-  Statement  B 

$  12.801,198 

$  514,298 

Working  capital  items 

Accounts  and  contributions  receivable 

(12,266,902) 

(6,335) 

Prepaid  expenses 

3,129 

(12,115) 

Accounts  payable  and  accruals 

69,142 

207,594 

CASH  PROVIDED  (USED) 

606,567 

703,442 

FINANCING 

Proceeds  from  conditional  sales  contract 

6,758 

- 

Repayments  of  conditional  sales  contract 

(605) 

- 

CASH  PROVIDED  (USED) 

6,153 

- 

INCREASE  IN  CASH  FUNDS 

612,720 

703,442 

CASH  FUNDS,  beginning  of  year 

703.442 

- 

CASH  FUNDS,  end  of  year 

$  1,316,162 

$  703,442 

See  accompanying  notes  to  financial  statements. 


C  278 


PROVINCE  OF  BRITISH  COLUMBIA 


Note  (1) 


Note  (2) 


Note  (3) 


OKANAGAN  VALLEY  TREE  FRUIT  AUTHORITY 
NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


Authority  and  Related  Parties 

The  Okanagan  Valley  Tree  Fruit  Authority  Act  came  into  force  on  August  10,  1990.  The 
mandate  of  the  Authority  is  to  ensure  an  efficient  and  co-ordinated  approach  to  the 
revitalization  of  the  tree  fruit  industry  of  the  Interior  of  British  Columbia.  Unless  extended 
by  regulation  of  the  Lieutenant  Governor  in  Council,  this  Act  will  be  repealed  on  December 
31,  2000.  A  Memorandum  of  Understanding  between  the  Authority  and  the  Ministry  of 
Agriculture,  Fisheries  and  Food  defines  the  roles  and  responsibilities  of  each  organization. 

The  Authority  receives  the  majority  of  its  revenue  from  the  Ministry,  on  which  it  is  dependent 
for  the  continuance  of  its  operations. 


Significant  Accounting  Policy 
Capital  Expenditure 

Capital  assets  are  recorded  as  expenditures  in  the  period  of  acquisition. 

Capital  assets  purchased  and  expensed  during  the  year  amounted  to  $76,792  ($366,392 
during  the  eight  months  ended  March  31,  1991). 


Retained  Earnings  and  Other  Income 

The  Ministry  of  Agriculture,  Fisheries  and  Food  of  the  Province  of  British  Columbia  advanced 
the  sum  of  $12,265,000  to  the  Okanagan  Valley  Tree  Fruit  Authority  at  the  end  of  the 
Authority’s  fiscal  year.  These  funds  are  to  be  used  for  the  Sterile  Insect  Release  program, 
for  revitalization  of  the  tree  fruit  Industry  and  for  special  assistance  to  fruit  growers.  Since 
none  of  these  expenditures  was  made  prior  to  the  end  of  the  fiscal  year,  the  full  amount  of 
the  special  funding  has  been  appropriated  from  retained  earnings. 


...continued... 


PUBLIC  ACCOUNTS  1991/92 


C  279 


Okanagan  Valley  Tree  Fruit  Authority 
March  31,  1992 

Page  2  Notes  continued 

Note  (4)  Revenue 

Revenue  includes  the  following: 


1992 

1991 

(12  Months) 

(8  Months) 

Note  (5) 

$3,587,000 

$1,679,534  Contributions  -  British  Columbia  Ministry  of 

Agriculture.  Fisheries  and  Food 

‘  80,283 

11,265  Investment  income 

4,750 

Miscellaneous  income 

$3,672,033 

$1,690,799 

Note  (5)  The  comparative  figures,  which  have  not  been  audited,  are  for  the  eight-month  period  ended 

March  31,  1991. 


C  280 


PROVINCE  OF  BRITISH  COLUMBIA 


Pacific  National  Exhibition 


Arthur  Andersen  8c  Co. 

Chartered  Accountants 


2300  Guinness  Tower 
1055  West  Hastings  Street 
Vancouver, Canada 

V6E  2J2 


AUDrrORS’  REPORT 


To  the  Directors  of 

Pacific  National  Exhibition: 

We  have  audited  the  balance  sheet  of  the  Pacific  National  Exhibition  (incorporated  under  the  Pacific 
National  Exhibition  Incorporation  Act  of  British  Columbia)  as  at  March  31,  1992  and  the  related  statements 
of  revenue  and  expenditure,  equity,  appropriation  for  fixed  asset  acquisitions,  renewals  and  replacements 
and  changes  in  financial  position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility 
of  the  Exhibition’s  management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements 
based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards 
require  that  we  plan  and  perform  an  audit  to  obtain  reasonable  assurance  whether  the  financial  statements 
are  free  of  material  misstatement.  An  audit  inciudes  examining,  on  a  test  basis,  evidence  supporting  the 
amounts  and  disclosures  in  the  financial  statements.  An  audit  also  inciudes  assessing  the  accounting 
principles  used  and  significant  estimates  made  by  management,  as  well  as  evaluating  the  overall  financial 
statement  presentation. 

In  our  opinion,  these  financial  statements  present  fairly,  in  ail  material  respects,  the  financial  position  of  the 
Exhibition  as  at  March  31, 1992  and  the  results  of  Its  operations  and  the  changes  in  Its  financial  position  for 
the  year  then  ended  In  accordance  with  generally  accepted  accounting  principles.  As  required  by  the 
Pacific  National  Exhibition  Incorporation  Act,  we  report  that,  in  our  opinion,  these  principles  have  been 
applied  on  a  consistent  basis. 


May  15,  1992. 


PUBLIC  ACCOUNTS  1991/92 


C  281 


PACIFIC  NATIONAL  EXHIBITION 

BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


ASSETS 

1992 

1991 

Current 

Cash  and  interest  bearing  deposits 

Accounts  receivable 

Inventories 

Prepaid  expenses 

Current  portion  of  loan  receivable 

$  3,209,559 
1,066,976 
375,727 
293,409 
298.221 

$1,807,726 

1,298,077 

446,499 

327,961 

268.668 

5.243.892 

4.148.931 

Loan  receivable  (Note  3) 

331.539 

629.760 

Fixed  {Note  1) 

Buildings  and  fixtures  on  leased  land 

Machinery,  furniture  and  equipment  (Note  4) 

22,036,791 

7.237.947 

21,949,285 

6.916.259 

29.274.738 

28.865.544 

$34,850,169 

$33,644,235 

LIABILITIES 

Current 

Accounts  payable  and  accrued  liabilities 

Current  portion  of  deferred  revenue 

$  2,227,270 
359.914 

$  2,346,035 
419.056 

Obligation  under  capital  lease  (Note  4) 

Deferred  revenue  (Note  5) 

2,587,184 

81,960 

187.500 

2,765,091 

107,035 

262,500 

Commitments  and  contingencies  (Note  6) 

2.856.644 

3.134.626 

EQUITY  IN  ASSETS 

Equity  (Note  1 ) 

31,041,225 

29,654,809 

Appropriation  for  fixed  asset  acquisitions, 
renewals  and  replacements 

952.300 

854,800 

31,993,525 

30.509,609 

$34,850,169 

$33,644,235 

Approved  by  the  Directors 


Director 

Director 


See  accompanying  notes  to  financial  statements 


C  282 


PROVINCE  OF  BRITISH  COLUMBIA 


PACIFIC  NATIONAL  EXHIBITION 

STATEMENT  OF  REVENUE  AND  EXPENDITURE 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

Revenue 

Operating 

Government  grants 

$25,841,780 

97.013 

$27,152,793 

97.047 

25,938,793 

27,249,840 

Expenditure 

Operations  and  administration 

24.637.556 

26.608.589 

1,301,237 

641,251 

Interest  income 

258.785 

267.005 

Excess  of  revenue  over  expenditure 

$  1.560.022 

$  908.256 

See  accompanying  notes  to  financial  statements 


PUBLIC  ACCOUNTS  1991/92 


C  28.5 


PACIFIC  NATIONAL  EXHIBITION 

STATEMENT  OF  EQUITY 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

Balance  at  beginning  of  year 

$29,654,809 

$27,401,942 

Excess  of  revenue  over  expenditure 

1.560.022 

908.256 

31,214,831 

28,310,198 

Appropriation  for  fixed  asset  acquisitions, 
renewals  and  replacements 

(585,963) 

(198,797) 

Acquisition  of  fixed  assets 

488,463 

1,550,858 

Loss  on  disposal  of  fixed  assets 

(76.106) 

(7.450) 

Balance  at  end  of  year 

$31,041,225 

$29,654,809 

See  accompanying  notes  to  financial  statements 


C  284 


PROVINCE  OF  BRITISH  COLUMBIA 


PACIFIC  NATIONAL  EXHIBITION 

STATEMENT  OF  APPROPRIATION  FOR  FIXED  ASSET  ACQUISITIONS, 
RENEWALS  AND  REPLACEMENTS 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Balance  at  beginning  of  year 
Add 

Contribution  from  equity 


Less 

Fixed  asset  acquisitions,  renewals  and 
replacements 

Balance  at  end  of  year 


1992 

$  854,800 

585.963 

1,440,763 

488.463 

$  952.300 


1991 

$2,206,861 

198.797 

2,405,658 

1.550.858 

$  854,800 


See  accompanying  notes  to  financial  statements 


PUBLIC  ACCOUNTS  1991/92 


C  285 


PACIFIC  NATIONAL  EXHIBITION 


STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

Operating  activities 

Cash  from  operations 

Excess  of  revenue  over  expenditure 

Non-cash  credits  to  operations 

Deferred  revenue,  long-term 
advertising  contracts 

$  1,560,022 

(75.000) 

$  908,256 

(75.000) 

Change  in  non-cash  operating  working  capital 

1,485,022 

158.521 

833,256 

(90.047) 

1.643.543 

743.209 

Financing  activity 

Obligation  under  capital  lease 

(25.075) 

107.035 

Investing  activities 

Purchase  of  fixed  assets 

Loan  receipts 

Proceeds  from  disposals  of  fixed  assets 

(488,463) 

268,668 

3.160 

(1,550,858) 

242,043 

(216.635) 

(1.308.815) 

Increase  (decrease)  in  cash  during  the  year 

1,401,833 

(458,571) 

Cash  and  interest-bearing  deposits,  beginning  of  year 

1.807.726 

2.266.297 

Cash  and  interest-bearing  deposits,  at  the  end  of  year 

$  3.209.559 

$  1.807.726 

See  accompanying  notes  to  financial  statements 


286 


PROVINCE  OF  BRITISH  COLUMBIA 


PACIFIC  NATIONAL  EXHIBITION 

NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


1 .  Future  operations 

These  financial  statements  have  been  prepared  assuming  the  Pacific  National  Exhibition  will  continue  as 
a  going  concern.  As  discussed  in  note  6,  the  current  lease  with  the  City  of  Vancouver  expires  May  1 9, 
1 994.  It  is  uncertain  whether  the  Exhibition  will  be  able  to  continue  operations  at  its  present  or  alternate 
location  after  the  expiration  of  the  lease.  To  the  extent  that  the  cost  of  fixed  assets  cannot  be  recovered 
by  sale  or  in  future  operations,  their  carrying  value  will  be  written  off  against  equity. 

These  financial  statements  do  not  include  any  adjustments  that  might  result  from  the  outcome  of  this 
uncertainty. 

2.  Nature  of  operations  and  summary  of  significant  accounting  policies 

a.  The  Pacific  National  Exhibition  was  incorporated  by  statute  of  the  Province  of  British  Columbia  for 
the  purpose  of  furthering  agricultural  and  other  industries,  and  promoting  community  development. 
The  Exhibition  is  a  not  for  profit  entity,  and  accordingly  no  income  tax  provision  or  related  accounts 
are  presented  in  these  financial  statements. 

The  incorporation  legislation  provides  that  upon  dissolution  or  winding  up  of  the  Exhibition,  any 
excess  or  surplus  after  paying  all  debts  and  obligations  of  the  Exhibition  shall  be  paid  to  the  City  of 
Vancouver. 

b.  Fixed  assets 

Fixed  assets  are  recorded  at  cost  less  grants  provided  by  federal,  provincial  and  municipal 
governments  and  other  contributions.  Depreciation  and  amortization  of  fixed  assets  are  not  provided 
in  the  accounts. 

On  disposal  of  fixed  assets,  the  cost  is  removed  from  the  accounts  and  charged  (net  of  proceeds 
realized)  to  equity. 

c.  Appropriation  for  fixed  asset  acquisitions,  renewals  and  replacements 

The  Exhibition  appropriates  from  equity,  amounts  estimated  to  be  required  to  provide  for  the  future 
acquisition,  renewal  and  replacement  of  fixed  assets,  based  on  the  most  recent  projection  of 
intended  expenditures. 

d.  Inventories 

Inventories  are  valued  at  the  lower  of  cost  and  net  realizable  value. 

e.  Deferred  revenue 

Advertising  revenue  from  long-term  contracts  is  recognized  on  a  straight-line  basis  over  the  term  of 
the  contract. 


PUBLIC  ACCOUNTS  1991/92 


C  287 


PACIFIC  NATIONAL  EXHIBITION 


NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


page  2 


f.  Prize  home  lots 

Prize  home  lots  held  from  time  to  time  are  registered  in  the  name  of  Tyroe  Estates  Ltd.,  a  bare 
corporate  trustee,  which  holds  the  properties  in  trust  for  the  Pacific  National  Exhibition. 

3.  Loan  receivable 


Loan  to  the  British  Columbia  Jockey  Club 
bearing  interest  at  1 1  %  per  annum  and 
repayable  in  equal  annual  instalments 
of  $367,494,  including  interest 

Less:  current  portion 


4.  Obligation  under  capital  lease 


1992 

$  629,760 

298.221 

$  331.539 


1991 

$  898,428 

268.668 

$  629.760 


Included  in  machinery,  furniture  and  equipment  is  $  147,357  for  computer  equipment  under  capital  lease. 
The  payments  under  this  obligation  are  summarized  as  follows: 


Year  ending  March  31,  1993  $  39,576 

1994  39,576 

1995  39,576 

1996  19,548 


Less:  amount  representing  interest 
Less:  current  portion 

5.  Deferred  revenue 

Deferred  revenue  is  comprised  of: 


138,276 

31.241 


107,035 

25.075 

$  81.960 


1992  1991 

Prepaid  facilities  rental  and  short-term 

advertising  contracts  $  284,914  $  344,056 

Long-term  advertising  contracts  262,500  337.500 

547,414  681,556 

359.914  419.056 

$  187.500  $  262,500 


Less:  current  portion 


288 


PROVINCE  OF  BRITISH  COLUMBIA 


PACIFIC  NATIONAL  EXHIBITION 

NOTES  TO  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


page  3 


6.  Commitments  and  contingencies 

a.  The  Pacific  National  Exhibition  has  an  agreement  with  the  City  of  Vancouver,  for  a  term  expiring  May 
19,1 994,  to  lease  the  lands  and  premises  known  as  Exhibition  Park.  The  lease  requires  rent,  among 
other  items,  to  be  re-negotiated  every  five  years. 

The  City  and  the  Pacific  National  Exhibition  have  not  come  to  formal  agreement  on  the  rent  or  other 
items  proposed  as  lease  amendments  applicable  to  the  years  May  19,  1985  to  May  18,  1990. 
During  this  period,  the  Pacific  National  Exhibition  paid  rent  of  $300,000  per  year  plus  additional  rent 
of  $223,000. 

The  parties  have  not  concluded  negotiations  for  the  above  mentioned  period  or  for  the  period  from 
May  19,  1990  to  May  18,  1994.  Accordingly,  the  Pacific  National  Exhibition  continues  to  pay  rent 
of  $300,000  per  year. 

The  amount  of  adjustments,  if  any,  for  claims  by  either  party  resulting  from  further  negotiations  is 
not  determinable  and  will  be  accounted  for  as  a  credit  or  charge  to  the  period  when  agreement  is 
reached. 

b.  The  Exhibition  has  leased  a  portion  of  Exhibition  Park  to  "Playland"  Amusement  Park  Ltd.  for  a  term 
expiring  March  31,  1996.  However,  if  the  lease  referred  to  in  paragraph  a.  above  is  not  extended 
past  May  19,  1994,  the  "Playland"  Amusement  Park  Ltd.  lease  will  terminate  on  that  date. 

Upon  any  termination  of  this  lease,  the  Exhibition  has  agreed  to  purchase  from  the  lessee  all  the 
lessee's  fixed  assets  which  are  related  to  the  Playland  business.  At  March  31,  1992,  had  the 
Exhibition  been  required  to  purchase  these  assets,  the  cost  to  the  Exhibition,  as  defined  in  this 
contract,  would  have  been  approximately  $5,600,000. 

7.  Superannuation  Fund 

The  Pacific  National  Exhibition  contributes  to  the  British  Columbia  Municipal  Superannuation  Fund  for 
eligible  employees. 


PUBLIC  ACCOUNTS  1991/92 


C  289 


Plain  Language  Institute  of  British  Columbia  Society 
HI  Ernst &YOUNC 


AUDITORS'  REPORT 


To  the  Members  of 

Plain  Language  Institute  of  British  Columbia  Society 

We  have  audited  the  balance  sheet  of  Plain  Language  Institute  of  British 
Columbia  Society  as  at  March  31,  1992  and  the  statement  of  income  and 
members'  ^uity  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Society's  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  society  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Vancouver,  Canada, 


June  15,  1^2. 


Chartered  Accountants 


C  290 


PROVINCE  OE  BRITISH  COLUMBIA 


Plain  Language  Institute  of  British  Columbia  Society 
Incorporated  under  the  Society  Act  of  British  Columbia 

BALANCE  SHEET 

As  at  March  31 

1992 

$ 

1991 

$ 

ASSETS 

Current 

Cash 

195,513 

241,967 

GST  recoverable 

4,812 

1,494 

Accrued  interest  receivable 

975 

1,982 

Deferred  conference  costs 

11,265 

— 

Prepaid  expenses 

2,808 

2.808 

Total  current  assets 

215,373 

248,251 

LIABILITIES  AND  MEMBERS’  EQUITY 

Current 

Accounts  payable 

20,354 

9.305 

Total  current  liabilities 

20,354 

9305 

Members'  equity 

195,019 

238.946 

215,373 

248,251 

Commitments  [note  3J 
See  accompanying  notes 


PUBLIC  ACCOUNTS  1991/92 


C  291 


Plain  Language  Institute  of  British  Columbia  Society 

STATEMENT  OF  INCOME  AND  MEMBERS' 

EQUITY 

Period  ended  March  31 

1992 

1991 

(1  year) 

(8  months) 

$ 

S 

REVENUE 
Grant  revenue 


Law  Foundation  of  B.C. 

262,500 

187,500 

Ministry  of  Attomey  General.  Province  of  B.C. 

150,000 

250.083 

412,500 

437,583 

Interest  and  other  income 

14,169 

13.949 

Total  revenue 

426,669 

451.532 

EXPENDITURE 

OtTicc  [schedule  IJ 

68,284 

39,091 

Administration  [schedule  1] 

66,593 

21,854 

Salaries  and  benefits 

185,214 

60,767 

Programs: 

Assessing  needs 

46,333 

— 

Defining  plain  language 

21,893 

— 

Implementing  plain  language 

23,821 

— 

Raising  consumer  awareness 

17,795 

— 

Raising  writer  awareness 

26,210 

— 

456,143 

121.712 

Non-recurring  charges 

Equipment  and  furnishings  [note  4] 

14,453 

52,379 

Executive  recruitment  fees 

— 

27,294 

Relocation  costs  -  executive  director 

— 

11.201 

14,453 

90.874 

Total  expenditure 

470,596 

212.586 

Excess  (denciency)  of  revenue  for  the  period 

(43,927) 

238,946 

Members’  equity,  beginning  of  period 

238,946 

— 

Members'  equity,  end  of  period 

195,019 

238,946 

See  accompanying  notes 


=U 


C  292 


PROVINCE  OF  BRITISH  COLUMBIA 


Plain  Language  Institute  of  British  Columbia  Society 

NOTES  TO  FINANCIAL  STATEMENTS 


March  31. 1992 


1.  ORGANIZATION  AND  NATURE  OF  OPERATIONS 

In  1990,  the  Ministry  of  the  Attorney  General  of  British  Columbia,  together  with  the  Law 
Foundation  of  B.C.,  established  the  Plain  Language  Institute  of  British  Columbia  Society,  which 
commenced  operations  August  2, 1990.  Its  mandate  is  to  promote  plain  language  in  government, 
business  and  the  legal  community  so  that  people  can  easily  understand  the  communications, 
documents  and  processes  that  are  important  to  them. 

The  Society  is  administered  by  a  Board  of  Directors  approved  by  the  Attorney  General  of  the 
Province  of  British  Columbia. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 
Furniture,  fixtures  and  equipment 

All  furniture,  fixtures  and  equipment  are  charged  to  operations  when  purchased. 

Deferred  conference  costs 

Costs  relating  to  the  "Just  Language"  conference,  which  is  to  take  place  in  October,  1992,  are 
being  deferred  until  the  date  of  the  event 

Grants 

Grants  ate  recorded  and  recognized  as  revenue  when  received. 

Accrual  basis  of  accounting 

The  Society  records  operating  expenditures  as  they  become  payable,  and  interest  revenue  is  recorded 
as  earned. 


PUBLIC  ACCOUNTS  1991/92 


C  293 


Plain  Language  Institute  of  British  Columbia  Society 

NOTES  TO  FINANCIAL  STATEMENTS 


March  31. 1992 


3.  COMMITMENTS 
Premises 

The  Society  is  committed  to  pay  aggregate  future  lease  payments  of  $45,866  under  operating 
leases  for  office  equipment  and  office  premises. 

The  Society's  basic  lease  payments  in  each  of  the  next  5  fiscal  years  are: 

$ 


1993  31,670 

1994  14,196 

1995  — 

1996  — 

1997  _ ;:3 

45,866 

The  Society  is  also  required  to  pay  its  share  of  building  occupancy  costs  until  its  premises  lease 
expires  in  August  1993.  These  costs  approximate  $1,400  per  month. 

The  Society  is  committed  under  the  terms  of  a  contract  relating  to  the  October  1992  "Just 
Language"  conference  to  pay  approximately  $9,200  for  administrative  services. 


4.  EQUIPMENT  AND  FURNISHINGS 

Equipment  and  furnishings  include  expenditures  for  the  following: 

1992  1991 

(1  year)  (8  months) 


$  $ 


Desks,  chairs  and  bookcases 

5,903 

15,746 

Refrigerator,  microwave 

— 

663 

Shelving,  cabinets 

3,413 

3,284 

Computer  equipment 

3,607 

31,793 

Service  and  maintenance  contracts 

1,530 

893 

14,453 

52,379 

C  294 


PROVINCE  OF  BRITISH  COLUMBIA 


Plain  Language  Institute  of  British  Columbia  Society  Schedule  1 

SCHEDULE  OF  OFFICE  AND 
ADMINISTRATION  EXPENSES 

Period  ended  March  31 

Office 

1 

1992 
(1  year) 

$ 

1991 

(8  months) 
$ 

Telephone 

10,231 

8,910 

Rent  and  parking 

38,824 

17,347 

Insurance 

300 

300 

Office 

6,924 

6,907 

Equipment  lease 

12,005 

5.627 

68,284 

39,091 

Administration 

1992 
(1  year) 

$ 

1991 

(8  months) 

S 

Professional 

8,268 

3,288 

Travel 

7,126 

8,651 

Bank  charge,  copying,  fees 

4,593 

4,113 

Postage  and  courier 

6,366 

1,375 

Board  meetings 

4,225 

3,877 

Staff  development 

8,555 

550 

Promotion 

27,430 

— 

66,593 

21,854 

See  accompanying  notes 


PUBLIC  ACCOUNTS  1991/92 


C  295 


Provincial  Capital  Commission 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


AUDITOR’S  REPORT 


(604) 387-6803 
Fax  (604)387-1230 


To  the  Members  of  the 
Provincial  Capital  Commission^  and 

To  the  Minister  of  Aboriginal  Affairs, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  Provincial  Capital  Commission  as  at 
March  31,  1992  and  the  statement  of  revenue,  expenditure  and  surplus  for  the  year 
then  ended.  These  financial  statements  are  the  responsibility  of  the  Commission's 
management.  My  responsibility  is  to  express  an  opinion  on  these  financial 
statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Commission  as  at  March  31, 1992  and  the  results  of  its 
operations  for  the  year  then  ended  in  accordance  with  generally  accepted 
accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
June  2,  1992 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  CAPITAL  COMMISSION 
BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


ASSETS 

1992 

1991 

Cash 

$  92,468 

$  149,457 

Short-term  investments  (note  3) 

4,118,732 

3,839,654 

Accounts  receivable 

56,435 

62,792 

Inventory 

8,000 

11,104 

Prepaid  expenses 

4,305 

3,231 

Property 

1 

1 

$4,279,941 

S4.066.239 

LIABILITIES 

Due  to  the  Province  of  British  Columbia 

70,876 

95,552 

Accounts  payable  and  accrued  liabilities 

376,690 

100,893 

Deferred  revenue  (note  7) 

19.193 

45.195 

466.759 

241.640 

SURPLUS 


Appropriated  (schedule  1) 

602,000 

942,145 

Unappropriated 

3,211,181 

2,882,453 

Contributed 

1 

1 

3.813.182 

3.824.599 

$4,279,941 

$4,066,239 

The  accompanying  notes  are  an  integral 
part  of  these  financial  statements. 


Approved  byjhe  Commission: 


R.  Milne  -  Chairperson 


PUBLIC  ACCOUNTS  1991/92 


C  297 


PROVINCIAL  CAPITAL  COMMISSION 
STATEMENT  OF  REVENUE,  EXPENDITURE  AND  SURPLUS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


REVENUE 


General  Operations  (schedule  2) 
Crystal  Garden  (schedule  2) 


1992 


1991 


$1,971,899 

L0Q2.Q85 

2.973.984 


$2,124,677 

1.QQ5.427 

MmiQ4 


EXPENDITURE 

General  Operations  (schedule  2) 

Crystal  Garden  (schedule  2) 

Capital  projects  (schedule  1) 


809,959 

1,011,246 

1.164.196 

2.985.401 


759,591 

1,071,669 

316.586 

2.147.846 


EXCESS  (DEFICIENCY)  OF  REVENUE 

OVER  EXPENDITURE  ( 1 1,4 17) 

SURPLUS  -  BEGINNING  OF  YEAR  3.824.599 

SURPLUS  -  END  OF  YEAR  $3.813.182 


982,258 

2.842.341 

$3.824.599 


C  298 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  CAPITAL  COMMISSION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  THE  COMMISSION 

The  Provincial  Capital  Commission  operates  under  authority  of  the  Capital 

Commission  Act. 

The  Commission  is  responsible  for  the  following: 

.  advising  on  the  planning  and  funding  of  improvement  and  beautification 
projects  in  the  Capital  Improvement  District; 

.  controlling  and  managing  specific  approved  projects  not  under  the  direct 
control  of  member  municipalities; 

.  coordinating  construction  and  development  work  of  all  construction 
proposals  on  land  controlled  or  owned  by  the  Province  in  the  Capital 
Improvement  District; 

.  serving  Greater  Victoria  through  co-operation  with  local  municipalities 
and  by  assistance  funding  to  approved  improvement  and  beautification 
projects;  and 

.  operating  the  Crystal  Garden. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

(a)  Basis  of  Accounting 

These  financial  statements  have  been  prepared  in  accordance  with 
generally  accepted  accounting  principles  for  non-profit  organizations.  A 
statement  of  changes  in  financial  position  has  not  been  included  as  it  would 
not  provide  any  further  meaningful  information. 

(b)  Specific  Accounting  Policies 

Short-term  investments  consist  of  units  in  Province  of  British  Columbia 
Pooled  Investment  Portfolios.  Units  are  carried  at  the  lower  of  cost  adjusted 
by  income  attributed  to  the  units,  or  market  value.  Income  attributed  to  the 
units  represents  the  unitholder's  share  of  interest  earned  by  the  Portfolio  and 
may  be  realized  upon  sale  of  units. 


PUBLIC  ACCOUNTS  1991/92 


C  299 


PROVINCIAL  CAPITAL  COMMISSION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Inventory  is  valued  at  the  lower  of  cost  and  net  realizable  value. 

Property  is  comprised  of  land  and  buildings  owned  by  the  Commission 
and  is  recorded  at  a  nominal  value  of  one  dollar.  The  costs  of  purchasing 
such  assets  and  making  capital  improvements  to  them  are  written  off  when 
incurred.  The  assessed  value  of  these  properties  is  approximately  $43.7 
million. 

Furniture  and  equipment  are  recorded  as  general  operating  expenditures 
at  the  time  of  acquisition. 

Appropriated  surplus  is  comprised  of  unexpended  balances  of  amounts 
approved  by  Orders  in  Council  for  capital  projects  which  are  not  yet 
completed.  Such  projects  are  undertaken  in  cooperation  with  Capital 
Improvement  District  municipalities. 

3.  SHORT-TERM  INVESTMENTS 


Short-term  investments  as  at  March  31  are  comprised  of: 


1992 

1991 

Cost 

$4,118,732 

$3,839,654 

Unrealized  gain  (loss) 

9.324 

25.922 

Market  value 

$4,128,056 

$3,865,576 

FIXED  ASSETS 

Furniture  and  equipment  purchased  and  expensed  during  the  year 

amounted 

to  $16,357  (1991  -  $16,735). 

5.  RELATED  PARTY  TRANSACTIONS 

The  Ministry  of  Finance  and  Corporate  Relations  acts  as  fiscal  agent  for  the 
Commission. 

The  Ministry  of  Finance  and  Corporate  Relations  made  the  following 
payment  to  the  Commission  during  the  1992  fiscal  year  (responsibility  for  the 
Commission  was  subsequently  transferred  to  the  Ministry  of  Aboriginal  Affairs): 

.  $324,500  appropriated  to  the  Beautification  Fund  (1991  -  $376,100);  and 

.  no  grant  was  received  to  cover  operating  expenses  (1991  -  $333,900). 


C  300 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  CAPITAL  COMMISSION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


6.  FORFEITED  DEPOSIT 

Under  the  terms  of  the  agreement  to  lease  St.  Ann's  Academy,  Academy 
Garden  Corporation  placed  $250,000  in  trust.  This  amount  plus  $2,050  in  interest 
was  released  to  the  Commission  when  the  corporation  could  not  meet  its 
obligations  under  the  lease. 

7.  DEFERRED  REVENUE 


Deferred  revenue  as  at  March  31  consists  of: 


1992 

1991 

Prepaid  rent 

$  - 

$20,508 

Crystal  Garden  ballroom  rental  deposits 

14,177 

19,622 

Crystal  Garden  season  passes 

1,867 

1,715 

Other 

3.149 

3.350 

$19.193 

$45,195 

8.  PENSION  PLAN 

The  Commission  and  its  employees  contribute  to  the  Public  Service 
Superannuation  Plan  administered  by  the  Superannuation  Commission  of  the 
Provincial  Government. 

The  plan  is  a  defined  benefit  pension  plan.  The  detail  of  the  unfunded 
liability  of  the  plan  is  described  in  the  financial  statements  of  the  Public  Service 
Superannuation  Fund.  The  Province  of  British  Columbia  has  statutory 
responsibility  for  the  unfunded  liability  of  the  Plan. 

9.  CONTINGENT  LIABILITY 

After  serving  a  notice  of  default  on  April  10,  1991,  the  Commission 
terminated  its  agreement  with  the  Academy  Gardens  Corporation  to  lease  the  St. 
Ann's  Academy  property.  As  a  result,  there  are  currently  liens  outstanding  on  the 
property  totalling  $881,510  for  which  the  Commission,  as  owner,  could  be  found 
liable. 

It  is  uncertain  whether  the  claimants  plan  to  pursue  their  claims,  therefore  no 
estimate  of  liability  has  been  reported  in  the  Commission's  financial  statements. 

Any  future  significant  settlement  will  be  reported  as  a  prior  period 
adjustment. 


PUBLIC  ACCOUNTS  1991/92 


C  301 


PROVINCIAL  CAPITAL  COMMISSION 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


10.  COMPARATIVES 

Certain  of  the  comparative  figures  have  been  reclassified  to  conform  with  the 
current  year's  presentation.  These  reclassifications  have  had  no  effect  on  the  net 
operating  results  and  surplus  as  previously  reported. 


C  302 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  CAPITAL  COMMISSION 
SCHEDULE  OF  APPROPRIATED  SURPLUS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


Schedule  1 


General 

468/470  Belleville 
Street 

Conservatory  Annex 


Beautification 

Sponsoring 

Agenev 

Fund  Balance  at 
Beginning 
of  Year 

Capital 
Appropriated 
During  the 
Year 

Expenditures 
During  the 
Year 

Balance 
at  End 
of  Year 

View  Royal  Park 

Capital  Regional 
District/Town 
of  View  Royal 

$  26,414 

$  - 

$  26,414 

$  - 

Cuthbert  Holmes  Park 
Phase  2B  and  3 

District 
of  Saanich 

75,000 

. 

75,000 

Lochsidc  Drive 

Phase  I 

Town  of  Sidney 

60,000 

- 

49,000 

11,000 

View  Royal  Park 

Phase  II 

Capital  Regional 
District/Town 
of  View  Royal 

5,000 

5,000 

Belleville  St. 

Phase  II 

City  of  Victoria 

100,000 

- 

- 

100,000 

Coldstream  Ave. 

Phase  II 

Capital  Regional 

District 

65,000 

. 

. 

65,000 

West  Bay  Promenade 

Township  of  Esquimalt 

20,000 

- 

- 

20,000 

Trafalgar  Park  Viewpoint 

District  of  Oak  Bay 

54,500 

- 

54,500 

Gorge  Park 

Township  of  Esquimalt 

10,000 

- 

10,000 

- 

View  Royal  Park  Phase  III 

Town  of  View  Royal 

- 

50,000 

- 

50,000 

Lochside  Drive  Phase  III 

Town  of  Sidney 

- 

70,000 

- 

70,000 

Bowker  Creek  Phase  III 

District  of  Oak  Bay 

- 

93,000 

- 

93M 

Mount  Tolmie 

District  of  Saanich 

- 

18,000 

- 

18,00(| 

McNaughton  St. 

Access  to  Gorge 

Township  of 

Esquimalt 

. 

10,000 

- 

10,00(1 

Forshaw  Road 

Access  to  Gorge 

Township  of 

Esquimalt 

- 

10,000 

- 

io,ooJ 

Bastion  Square 
Revitalization 

City  of  Victoria 

. 

155,000 

_ 

155,00j 

P.C.C. 

P.CC 


526,231 


402,372 

15.679 


928,603 

15.679 


$1.164.196 


$602.1 


$942,145 


$824.051 


PUBLIC  ACCOUNTS  1991/92 


C  303 


PROVINCIAL  CAPITAL  COMMISSION  Schedule  2 

SCHEDULE  OF  OPERATING  REVENUES  AND  EXPENDITURES 

FOR  THE  YEAR  ENDED  MARCH  31,  1992 


General  Operations  Crystal  Garden  Total 


1992 

1991 

1992 

1991 

1992 

1991 

REVENUE 

Admissions 

$ 

$ 

$  571,281 

$  539,333 

$  571,281 

$  539,333 

Ballroom/Bar 

- 

- 

148,218 

184,082 

148,218 

184,082 

Forfeited  Deposit  (Note  6) 

252,050 

- 

- 

- 

252,050 

- 

Grant 

324,500 

710,000 

- 

- 

324,500 

710,000 

Investment  Income 

416,625 

434,556 

167 

325 

416,792 

434,881 

Miscellaneous 

3,331 

18,331 

3,799 

1,463 

7,130 

19,794 

Parking  Lx)ts 

316,829 

327,120 

- 

- 

316,829 

327,120 

Tenant 

658.564 

634.670 

278.620 

280.224 

937.184 

914.894 

TOTAL  REVENUE 

1.971.899 

2.124.677 

1.002.085 

1.005.427 

2.973.984 

3.130.104 

EXPENDITURE 

Advertising  &  Promotion 

2,651 

11,310 

94,813 

84,398 

97,464 

95,708 

Aviary 

- 

- 

44,219 

37,604 

44,219 

37,604 

Bad  Debts 

- 

- 

- 

801 

- 

801 

Ballroom  and  Bar 

- 

- 

42,798 

54,292 

42,798 

54,292 

Commission 

70,073 

71,710 

- 

- 

70,073 

71,710 

Freight 

- 

- 

2,707 

1,109 

2,707 

1,109 

Horticultural 

- 

- 

41,373 

39,208 

41,373 

39,208 

Insurance 

33,658 

15,330 

14,596 

14,793 

48,254 

30,123 

Janitorial 

13,311 

12,886 

61,959 

57,607 

75,270 

70,493 

Landscaping 

22,088 

25,551 

- 

- 

22,088 

25,551 

Miscellaneous 

5,285 

7,177 

19,434 

81,552 

24,719 

88,729 

Office 

47,604 

37,251 

2,572 

4,176 

50,176 

41,427 

Professional  Services 

24,616 

41,494 

- 

- 

24,616 

41,494 

Property  Tax 

43,425 

38,009 

52,559 

46,182 

95,984 

84,191 

Rent 

3,146 

3,146 

- 

- 

3,146 

3,146 

Repair  &  Maintenance 

34,612 

68,647 

93,468 

94,805 

128,080 

163,452 

Salaries  &  Benefits 

427,598 

376,600 

401,364 

405,234 

828,962 

781,834 

Security 

49,598 

11,990 

37,593 

37,800 

87,191 

49,790 

Telephone 

5,240 

4,592 

5,779 

4,630 

11,019 

9,222 

Tours 

- 

- 

4,849 

9,532 

4,849 

9,532 

Travel 

1,668 

450 

3,036 

3,214 

4,704 

3,664 

Utilities 

25.386 

33.448 

88.127 

94.732 

113.513 

128.180 

TOTAL  EXPENDITURES 

809.959 

759.591 

1.011.246 

1.071.669 

1.821.205 

1.831.260 

NET  OPERATING  REVENUE 
(EXPENDITURE) 

$1,161,940 

$1,365,086 

($9,161) 

($66,242) 

$1.1.52.779 

$1,298,844 

304 


PROVINCE  OF  BRITISH  COLUMBIA 


Provincial  Rental  Housing  Corporation 


KPMG  Peat  Marwick  Thorne 

Chartered  Accountants 

400  -  625  Agnes  Street  Telephone  (604)  526-241 1 

Queen's  Court  Telefax  (604)  520-6285 

New  Westminster,  B.C. 

Canada  V3M  5Y4 


AUDITORS'  REPORT 


To  the  Shareholder  of  the 
Provincial  Rental  Housing  Corporation 


We  have  audited  the  balance  sheet  of  the  Provincial 
Rental  Housing  Corporation  (the  Corporation)  as  at  December  31, 

1991  and  the  statements  of  revenue  and  expenditure  and  retained 
earnings  and  changes  in  financial  position  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the 
Corporation's  management.  Our  responsibility  is  to  express  an 
opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally 
accepted  auditing  standards.  Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present 
fairly,  in  all  material  respects,  the  financial  position  of  the 
Corporation  as  at  December  31,  1991  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year 
then  ended  in  accordance  with  the  accounting  policies  described  in 
note  1  to  the  financial  statements.  As  required  by  the  British 
Columbia  Company  Act,  we  report  that,  in  our  opinion,  the 
principles  have  been  applied  on  a  basis  consistent  with  that  of  the 
preceding  year. 


Chartered  Accountants 
New  Westminster,  Canada 

May  29,  1992 


Member  Firm  of 

Klynveld  Peal  Marwick  GoercJeleWfer 


PUBLIC  ACCOUNTS  1991/92 


C  305 


PROVINCIAL  RENTAL  HOUSING  CORPORATION 

BALANCE  SHEET 

AS  AT  DECEMBER  31 


1991  1990 

ASSETS 

CURRENT  ASSETS 


Cash 

Funds  held  in  trust 

Amortization  receivable 

Due  from  British  Columbia  Housing 
Management  Commission  (note  2) 


INVESTMENT  IN  PROPERTIES  (note  3) 


$  8,514,217 

115,521 

219,277 

8,849,015 

219,440,820 

$228,289,835 


LIABILITIES  AND  SHAREHOLDER'S  EQUITY 


CURRENT  LIABILITIES 


Due  to  Province  of  British  Columbia  (note  4) 
Interest  payable 

Current  portion  of  long-term  debt 


LONG-TERM  DEBT  (note  5) 


$  3,196,595 

6,613,803 
199,986 

10,010,384 

70,837,121 

80,847,505 


$  8,737,261 

2,892,356 
115,521 

890,323 

12,635,461 

187,673, 537 

$200,308,998 


$  3,778,956 

6,775,207 
180,000 

10,734,163 

69,804,837 

80,539,000 


SHAREHOLDER'S  EQUITY 


!  Share  capital 
|1  Authorized: 

ij  10,000  common  shares,  no  par  value 
Issued: 

3  common  shares  3  3 


Contributed  surplus  (note  6) 

Property  acquisition  contribution  (note  7) 
Retained  earnings 


83,449,357 

39,237,851 

24,755,119 

147,442,330 

$228,289,835 


83,172,016 

13,816,200 

22,781,779 

119,769,998 

$200,308,998 


See  accompanying  notes. 


C  306 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  RENTAL  HOUSING  CORPORATION 


STATEMENT  OF  REVENUE  AND  EXPENDITURE 
AND  RETAINED  EARNINGS 

YEARS  ENDED  DECEMBER  31 


1991 

1990 

Ravenu« : 

Amortization 

Interest  income 

$  8,568,361 

$  8,568,361 
62,101 

8,568,361 

8,630,462 

Exp«nditur« : 

Interest  on  long-term  debt 

7,205,539 

6,872,417 

7,205,539 

6,872,417 

Excess  of  revenue  over  expenditure 

1,362,822 

1,758,045 

Subsidies  received  from  British  Columbia 
Housing  Management  Commission 

610,518 

101,758 

1,973,340 

1,859,803 

Retained  earnings: 

Balance,  beginning  of  year 

22,781,779 

20,921, 976 

Retained  earnings,  end  of  year 

$24,755,119 

$22,781,779 

See  accompanying  notes. 


PUBLIC  ACCOUNTS  1991/92 


C  307 


PROVINCIAL  RENTAL  HOUSING  CORPORATION 

STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 

YEARS  ENDED  DECEMBER  31 


Cash  provided  by  (used  for) : 

Operating  activities 

Excess  of  revenue  over  expenditure 

Changes  in  non-cash  operating  working 
capital : 

Funds  held  in  trust 
Due  from  British  Columbia  Housing 
Management  Commission 
Due  to  Province  of  British  Columbia 
Interest  payable 

Cash  provided  by  operations 

Investing  activities 

Property  acquisition 
Less  transfer  to  Contributed  surplus 

Cash  applied  to  investing  activities 

Financing  Activities 

Long-term  debt 
Subsidy  receipts 

Property  acquisition  contribution 
Cash  provided  by  financing  activities 
Increase  (decrease)  in  cash  position 

Cash  position,  beginning  of  year 
Cash  position,  end  of  year 


1991  1990 


$  1,362,822 


2,892,356 

671,046 

(582,361) 

(161^404) 

4,182,459 

(31,767,283) 

277,341 

(31,489,942) 

1,052,270 

610,518 

25,421,651 

27,084,439 

(223,044) 

8,737,261 

$  8,514,217 


$  1,758,045 

(2,892,356) 

(890,323) 

3,778,956 

2,085,248 

3,839,570 

(98,246,957) 

82,502,940 

(15,744,017) 

6,723,750 

101,758 

13,816,200 

20,641,708 

8,737,261 


$  8,737,261 


See  accompanying  notes. 


C  308 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCIAL  RENTAL  HOUSING  CORPORATION 

NOTES  TO  THE  FINANCIAL  STATEMENTS 

DECEMBER  31,  1991 


GENERAL 

The  Provincial  Rental  Housing  Corporation  (the  Corporation) ,  is  incorporated 
under  the  Company  Act  of  the  Province  of  British  Columbia.  The  Corporation 
is  wholly  owned  by  the  Province  of  British  Columbia,  and  is  an  agent  of  the 
Crown . 


The  Corporation  acquires  and  holds  property  for  social  housing  and  other  low 
cost  housing  for  the  Province.  The  subsidized  rental  housing  units  of  the 
Corporation  are  managed  and  operated  by  the  British  Columbia  Housing 
Management  Commission  (the  Commission) ,  which  records  the  related  rental 
revenue  and  is  responsible  for  all  of  the  operating  and  administrative  costs. 


1. 


SIGNIFICANT  ACCOUNTING  POLICIES: 

a)  Investment  in  properties 

The  Corporation  has  invested  in  the  following  social  housing  and 
other  properties; 

i)  Provincial  interest  properties 

Provincial  interest  properties  are  recorded  at  25%  of  their 
original  cost.  These  properties  are  jointly  owned  by  the 
Province  of  British  Columbia  (25%)  and  the  Canada  Mortgage  and 
Housing  Corporation  (75%) . 

ii)  Wholly  owned  properties 

Properties  are  recorded  at  historical  cost. 

iii)  Group  homes  and  social  housing  land 

Properties  are  recorded  at  cost,  except  where  title  to  Crown 
owned  properties  has  been  transferred  to  the  Corporation. 

These  properties  are  recorded  by  the  Corporation  at  fair  mar)cet 
value.  Fair  market  value  is  defined  as  the  British  Columbia 
property  tax  assessment  value  or  appraised  value,  as  determined 
by  a  cpialified  appraiser,  if  assessment  values  are  not 
avail^le  at  the  time  the  property  is  transferred. 

The  Corporation's  policy  is  not  to  depreciate  the  buildings  held  in 
Investment  in  properties. 

b)  Amortization  revenue 

Amortization  revenue  represents  amounts  charged  to  the  Commission  on 
Provincial  interest  and  Wholly  owned  properties  based  on  the  capital 
and  interest  costs  of  the  housing  units  amortized,  generally  up  to 
50  years. 

c)  Administration  and  financing 

The  Commission  acts  as  agent  in  administering  and  financing  the 
operations  and  capital  projects  of  the  Corporation.  No 
administration  costs  are  charged  to  the  Corporation  for  such 
services  performed,  and  accordingly  any  interest  earned  by  the 
Corporation  is  recorded  by  the  Commission. 


PUBLIC  ACCOUNTS  1991/92 


C 


if 

ji  NOTES  TO  PROVINCIAL  RENTAL  HOUSING  CORPORATION  FINANCIAL  STATEMENTS 
I  DECEMBER  31,  1991  (CONTINUED) 

d)  Property  leases 

The  Corporation  leases  certain  properties  to  non-profit  societies. 
:  Under  the  financial  arrangements  all  lease  payments  are  made 

I  directly  to  the  Province  of  British  Columbia. 

e)  Insurance 

j  The  Corporation  does  not  insure  its  rental  housing  properties, 

I  instead  property  losses  are  compensated  for  by  the  Province  of 

!  British  Columbia  via  the  Commission  and,  for  certain  properties, 

I  the  Canada  Mortgage  and  Housing  Corporation. 

2.  DUB  FROM  BRITISH  COLUMBIA  HOUSING  MANAGEMENT  CONMISSIOH 

j  This  balance  represents  cumulative  land  acquisition,  development  and 

financing  transactions  where  the  Commission  acted  as  agent  for  the 
Corporation.  This  amount  is  unsecured,  bears  no  interest,  and  is 
I  settled  annually. 

I  3.  INVESTMENT  IN  PROPERTIES 


1991  1990 

Subsidized  rental  housing,  at  cost 

i)  Provincial  interest 

These  are  properties  held  under 
Section  79  of  the  National  Housing 

Act  (NHA)  $  24,916,155  $  24,916,155 


ii)  Wholly  owned  properties 

These  are  properties  held  under 

Section  82  of  the  NHA  64,273,380  64,273,380 

Group  homes 

These  are  properties  acquired  directly 
by  the  Corporation  or  transferred  at 

fair  market  value  as  per  note  1(a)  (iii)  19,  931,474  6,477,491 

Social  housing  land 


These  are  properties  held  under  Section  95 
of  the  NHA.  They  are  recorded  at  fair 

market  value  as  per  note  1(a) (iii)  110> 319, 811 

$219,440,820 

3SS^SSSSB=SS=3 


92.006,511 

$187,673,537 


4.  DUB  TO  PROVINCB  OF  BRITISH  COLUMBIA 


This  amount  represents  $1,781,906  (1990  $1,751,470)  of  principal 
repayable  on  demand  from  the  9.75%  debenture,  as  disclosed  in  note  5, 
and  funds  repayable  from  land  acquisition  for  group  homes  of  $1,414,689 
(1990  $2,027,  486)  . 


C  310 


PROVINCE  OF  BRITISH  COLUMBIA 


notes  to  provincial  rental  housing  corporation  financial  statements 

DECEMBER  31,  1991  (CONTINUED) 

5.  LONG-TERM  DEBT 

1991  1990 

Province  of  British  Columbia 
9.75%  debenture  repayable  on  demand 


and  secured  by  a  floating  charge  on 
all  property,  and  other  assets  and 
undertakings  of  the  Corporation 

$19,898,997 

$21,534,946 

11.25%  mortgage  repayable  at  the 
end  of  each  year,  over  35  years 
maturing  in  year  2019  and  secured 
by  a  registered  mortgage  against  the 

Winfield  Senior  Citizens  property 

1,021,551 

1.022.087 

20,920,548 

22,557,033 

Canada  Mortgage  and  Housing  Corporation 

Debenture  mortgages  repayable  at  the  end 
of  each  year,  over  terms  of  up  to  50  years 
maturing  between  the  years  2027  and  2038, 
bearing  interest  at  rates  from  8%  to  10.75% 
and  secured  by  unregistered  first  mortgages 
on  certain  properties  of  the  Corporation 
with  a  cost  of  $56,004,563 

44,891,396 

45,048,065 

Chartered  Banks 

Mortgages  repayable  from  March  1,  1995  to 
October  1,  1996  bearing  interest  at 
rates  from  10%  to  13.75%  and  secured  by 
registered  first  mortgages  on  various 
properties  of  the  Corporation 

7.007.069 

4.131.209 

72,819,013 

71,736,307 

Less;  Current  portion  due  to  Province 
of  British  Columbia  (note  4) 

1,781,906 

1,751,470 

Current  portion,  other 

199.986 

180.000 

$70,837,121 

$69,804,837 

The  aggregate  repayment  of  principal  required  to  meet  total  debt 
obligations  in  each  of  the  next  five  years  is  estimated  to  be  as 
follows : 


1992 

$ 

199,986 

1993 

$ 

225,000 

1994 

$ 

248,000 

1995 

$ 

274,000 

1996 

$ 

302,000 

PUBLIC  ACCOUNTS  1991/92 


C  311 


NOTES  TO  PROVINCIAL  RENTAL  HOUSING  CORPORATION  FINANCIAL  STATEMENTS 
DECEMBER  31,  1991  (CONTINUED) 


6.  CONTRIBUTSD  SURPLUS 

During  1990,  approximately  200  properties  were  transferred  to  the 
Corporation  from  the  Ministry  of  Crown  Lands  pursuant  to  the  Land  Act 
and  the  Ministry  of  Lands,  Parks  and  Housing  Act,  via  crown  grant. 

These  properties  have  been  recorded  at  fair  market  value,  with  the  off¬ 
setting  credit  of  $82,502,940  being  recorded  as  Contributed  surplus. 

7.  PROPERTY  ACQUISITION  CONTRIBUTION 

j  Property  acquisition  contribution  represents  funds  provided  by  the 

Province  of  British  Columbia  for  Investment  in  properties. 

’  8.  INVESTOR  IMMIGRANT  FUND 

During  the  year,  the  Corporation  entered  into  an  agreement  to  manage  an 
investor  immigrant  fund  for  the  purpose  of  constructing  affordable 
rental  housing  in  the  Province  of  British  Columbia.  The  fund  provides 
I  for  a  $35,000,000  maximum  offering  in  $250,000  increments.  The  Royal 

Bank  of  Canada  Trust  Company  (Asia)  Ltd.  will  act  as  principal  marketing 
agent,  and  the  Montreal  Trust  will  act  as  custodian.  The  offering  will 
expire  on  December  31,  1992. 

9.  COMPARATIVE  INFORMATION 

Certain  1990  comparative  figures  have  been  reclassified  to  conform  with 
I  the  financial  statement  presentation  adopted  for  1991. 

10.  SUBSEQUENT  EVENT 

I;  Subsequent  to  year  end  the  11.25%  mortgage  payable  to  the  Province  of 

British  Columbia  was  refinanced  with  a  chartered  bank  repayable  over  25 
I  years  bearing  interest  at  10.097%  and  secured  by  a  registered  first 

'  mortgage  against  the  Winfield  Senior  Citizens  property. 


C  312 


PROVINCE  OF  BRITISH  COLUMBIA 


Science  Council  of  British  Columbia 


Dyke(^ 

Howard 

CHARTERED  ACCOUNTANTS 


L. R.  Bisaro  Ltd.  D.W.  Louie  Ltd. 

TC.  Hamar  Ltd.  M.O.  Nakanishi  Ltd. 

M. E.  Louie  Ltd.  R.B.  Macfarlane  Ltd. 


Associates 


R.  E.  Foret,  C.A.  R.S.  Ferguson.  C.A. 


AUDITOR’S  REPORT 


To  the  Minister  of  Advanced  Education,  Training  and  Technology 


We  have  audited  the  balance  sheet  of  the  Science  Council  of  British  Columbia  as 
at  March  31,  1992  and  the  statements  of  Program  receipts,  expenditures  and 
appropriations;  SPARK  receipts,  expenditures  and  appropriations;  Operations 
receipts,  expenditures  and  appropriations;  and  changes  in  financial  position  for 
the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the 
Council’s  management.  Our  responsibility  is  to  express  an  opinion  on  these 
financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards. 
Those  standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material 
respects,  the  financial  position  of  the  Council  as  at  March  31,  1992  and  the 
results  of  its  operations  and  the  changes  in  its  financial  position  for  the  year 
then  ended  in  accordance  with  generally  accepted  accounting  principles,  as 
modified  by  Note  2  to  the  financial  statements. 


Vancouver,  B.C. 
May  28,  1992 


CHARTERED  ACCOUNTANTS 


500-1441  Creekside  Drive.  Vancouver.  B.C.  V6J  4S7  /  Fax;  (604)  731-9923  /  Telephone:  (604)  731-5881 


PUBLIC  ACCOUNTS  1991/92 


C  313 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
BALANCE  SHEET 
MARCH  31,  1992 


ASSETS 


1992  1991 


CASH 

$ 

6,776,692 

$ 

1,768,712 

SHORT-TERM  INVESTMENTS 

14,670,253 

18,553,714 

ACCOUNTS  RECEIVABLE 

164,759 

170,200 

GRANTS  RECEIVABLE 

1,340,000 

1,813,344 

(interest  receivable 

124.803 

229,800 

j 

$ 

23,076,507 

$ 

22,535,770 

liabilities 

'ACCOUNTS  PAYABLE  AND  ACCRUED  LIABILITIES 

$ 

413,779 

$ 

370,560 

appropriations 

PROGRAMS  (Note  3) 

22,110,023 

21,986,669 

STRATEGIC  PLANNING  FOR  APPLIED  RESEARCH  AND 
;  KNOWLEDGE  (SPARK)  (Note  5) 

187,068 

41,657 

PPERATIONS 

365,637 

136.884 

1 

$ 

23,076,507 

$ 

22.535.770 

Dyke  (Sc 
Howard 

CHARTERED  ACCOUNTANTS 


C  314 


PROVINCE  OF  BRITISH  COLUMBIA 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
STATEMENT  OF  PROGRAM  RECEIPTS,  EXPENDITURES  AND  APPROPRIATIONS 
YEAR  ENDED  MARCH  31,  1992 


1992 

PROGRAM  RECEIPTS 

Grants  from  the  Province  of  British  Columbia 
(Schedule  1) 

Contribution  from  the  British  Columbia  Health 
Research  Foundation 

Interest 

Refunds  of  prior  years*  program  expenditures 

Other 

$  16,920,684 

404,678 

1,578,057 

189,446 

37,223 

19,130,088 

PROGRAM  EXPENDITURES  (Schedule  2) 

17,856,434 

TRANSFER  TO  OPERATIONS 

850,300 

TRANSFER  TO  SPARK 

300,000 

19,006,734 

EXCESS  OF  RECEIPTS  OVER  EXPENDITURES 

123,354 

PROGRAM  APPROPRIATIONS,  beginning  of  year 

21,986,669 

PROGRAM  APPROPRIATIONS,  end  of  year 

i  22,110,023 

1991 


$  15,555,408 

133,622 

2,056,649 

153,164 

1K600 

17,910,443j 

14,750,163 

331,000 

500,000 

15,581, 163| 

2,329,28( 

19.657,38< 

$  21,986,66! 


Dyke  (Sr 
Howard 

CHARTERED  accountant;! 


PUBLIC  ACCOUNTS  1991/92 


C  315 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
STATEMENT  OF  SPARK  RECEIPTS,  EXPENDITURES  AND  APPROPRIATIONS 
YEAR  ENDED  MARCH  31,  1992 


1992  1991 


SPARK  RECEIPTS 


Grants  from  the  Province  of  British  Columbia 

$ 

500,000 

$ 

30,000 

Grants  from  the  Government  of  Canada 

200,000 

212,173 

Transfer  from  Program 

300,000 

500,000 

Program  grant  -  Special  Initiatives  Fund 

- 

300,000 

Other  receipts 

171,889 

183,740 

1,171,889 

1,225,913 

SPARK  EXPENDITURES 

Operations 

Communications  and  travel 

72,762 

86,374 

Co-ordinator  fees 

- 

49,000 

Furniture  and  equipment 

17,264 

12,595 

Office 

33,959 

44,367 

Professional  fees 

91,169 

- 

Rent  and  leasehold  improvements 

30,000 

18,047 

Salaries  and  benefits 

101,548 

78,674 

Workshops  and  forums 

57,267 

121.507 

403,969 

410.564 

Sectors 

Advanced  materials 

8,343 

- 

Agriculture 

4,500 

Aquatic  resources 

35,114 

45,000 

Biotechnology 

162 

89,078 

Construction 

13,923 

48,761 

Energy 

73,660 

10,004 

Environment 

53,836 

117,545 

Fiscal 

2,043 

38,673 

Forestry 

- 

499 

Health 

180,186 

68,124 

Human  resources 

8,078 

- 

Information  technology 

109,494 

172,311 

Manufacturing 

72,207 

114,757 

Mining 

55,588 

68,999 

Oceans 

3,413 

- 

Transportation 

6.462 

43.926 

622.509 

822,177 

TOTAL  EXPENDITURES 

1.026,478 

1,232,741 

EXCESS  (DEFICIENCY)  OF  RECEIPTS  OVER  EXPENDITURES 

145,411 

(6,828) 

SPARK  APPROPRIATIONS,  beginning  of  year 

41,657 

48.485 

SPARK  APPROPRIATIONS,  end  of  year 

$ 

187,068 

$ 

41,657 

Dyke(5^ 

Howard 

CHARTERED  ACCOUNTANTS 


C  316 


PROVINCE  OF  BRITISH  COLUMBIA 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
STATEMENT  OF  OPERATIONS  RECEIPTS,  EXPENDITURES  AND  APPROPRIATIONS 


YEAR  ENDED  MARCH 

31,  1992 

1992 

1991 

OPERATIONS  RECEIPTS 

Grant  from  the  Province  of  British  Columbia 

$ 

900,000 

$  900, OOJ 

Interest 

43,376 

15,53| 

Transfer  from  Program 

850,300 

331, OOl 

Recoveries 

British  Columbia  Health  Research  Foundation 

(Note  6) 

- 

392,031 

Other 

64.773 

38.28| 

1.858.449 

1.676.851 

EXPENDITURES 

Computer  services 

7,711 

9,: 

291 

Consulting  and  temporary  staff 

55,741 

59,621 

Dues  and  memberships 

3,658 

3,! 

93 

Furniture  and  equipment 

62,072 

149,; 

29 

Leasehold  improvements 

4,632 

5,: 

3| 

Meetings 

21,060 

30,81 

Moving  expenses 

- 

23,1 

9| 

Personnel  -  recruitment 

2,660 

5,: 

31 

Photocopying  and  printing 

53,956 

43,1 

9| 

Postage  and  courier 

36,719 

61,' 

Professional  development 

8,887 

8,8| 

Professional  fees 

21,616 

21.! 

Publ ications 

4,795 

3,91 

Publ ic  relations 

- 

14,91 

Rent 

280,102 

68,; 

Salaries  and  employee  benefits 

953,072 

981,: 

J 

Stationery  and  supplies 

19,465 

32,! 

Telephone 

18,064 

29,! 

Travel 

75.486 

_ 

Ir 

1.629.696 

1.625,: 

EXCESS  OF  RECEIPTS  OVER  EXPENDITURES 

228,753 

51,1 

OPERATIONS  APPROPRIATIONS,  beginning  of  year 

136.884 

85.: 

Is 

OPERATIONS  APPROPRIATIONS,  end  of  year 

$ 

365.637 

S  136, 

h 

DykE(^  I 

Howard! 

CHARTERED  ACCOUNlI 

rs 

PUBLIC  ACCOUNTS  1991/92 


C  317 


f 

I  SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 

STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
YEAR  ENDED  MARCH  31,  1992 


1992  1991 


:ash  provided  for  (used  by)  operating  activities 

j  Excess  (deficiency)  of  receipts  over  disbursements 
Program 
SPARK 

'  Operations 

I  Net  change  in  non-cash  working  capital  accounts 

|ncrease  in  cash  during  the  year 

SiIaSH  and  SHORT-TERM  INVESTMENTS,  beginning  of  year 


$  123,354 

145,411 
228,753 
627,001 

1,124,519 

20,322,426 


2,329,280 

(6,828) 

51,551 

9,117,243 

11,491,246 

8,831,180 


'.ASH  AND  SHORT-TERM  INVESTMENTS,  end  of  year  $  21,446,945  $  20,322,426 


DykE(S? 

Howard 

CHARTERED  ACCOUNTANTS 


C  318 


PROVINCE  OF  BRITISH  COLUMBIA 


Schedule  1 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
SCHEDULE  OF  PROGRAM  GRANTS  FROM  THE  PROVINCE  OF  BRITISH  COLUMBIA 
YEAR  ENDED  MARCH  31,  1992 


1992 

1991 

GRANTS  FROM  THE  PROVINCE  OF  BRITISH  COLUMBIA 

Ministry  of  Advanced  Education,  Training 

and  Technology 

-  HDF 

- 

1,472,54 

-  Hydrogen  Alliance 

492,000 

-  1 

-  Program  Base 

3,500,000 

4,000,00l 

-  Regional  S  &  T  Councils 

340,000 

-  1 

-  Science  &  Technology  Fund  Event 

20,000 

-  1 

-  Science  Fair  Winners 

57,684 

-  1 

-  Technology  B.C./STDF 

10,000,000 

8,155,33 

-  TEST 

500,000 

-  1 

-  Wastewater  Technology 

IKOOO 

-  1 

14.920.684 

13.627.9(1 

Ministry  of  Environment 

-  R2D2 

1,000,000 

- 1 

“  Sustainable  Development  Fund 

1,000,000 

- 1 

-  University  Centres  of  Excellence 

- 

1.927.5 

2.000.000 

1.927.5 

S  16.920.684 

S  15.555.4 

DYKE(5i_ 

Howard 


PUBLIC  ACCOUNTS  1991/92 


C  319 


Schedule  2 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
SCHEDULE  OF  COMMITMENTS  AND  DISBURSEMENTS  OF 
SCIENCE  COUNCIL  PROGRAM  GRANTS 
YEAR  ENDED  MARCH  31,  1992 


Known 


Outstanding 
Conmi  tments 
Beginning 

Additional 
Conmi  tments 

Conmi  tment 
Reductions 

Disbursed 

Known 

Outstanding 
Conmi tments 

Of  Year 

Durinq  Year 

Durinq  Year 

Durinq  Year 

End  of  Year 

AGAR 

Research  Competition  #  13 

$  32,622 

i 

$ 

2,140 

$  30,482 

$ 

Research  Competition  #16 

8,199 

- 

- 

8,199 

- 

Research  Competition  #  17 

24,070 

- 

12,224 

11,846 

- 

Research  Competition  #  18 

4,500 

- 

- 

4,500 

- 

Research  Competition  #  19 

134,640 

- 

17,770 

105,020 

11,850 

Research  Competition  #  20 

317.034 

- 

49.944 

231.302 

35.788 

521.065 

82.078 

391.349 

47.638 

HEALTH  DEVELOPMENT  PROGRAMS 

.  HOF  1988/89  -  SCBC 

91,764 

- 

20,986 

70,778 

- 

HDF  1989/90  -  SCBC 

769,255 

- 

151,014 

331,232 

287,009 

IIDF  1990/91  -  SCBC 

- 

770,615 

- 

239,713 

530,902 

HDF  1988/89  -  JOINT 

282,070 

- 

20,738 

258,723 

2,609 

HDF  1989/90  -  JOINT 

704,611 

- 

- 

543,696 

160,915 

HDF  1990/91  -  JOINT 

- 

556.013 

60.804 

25.625 

469.584 

1.847.700 

1.326.628 

253.542 

1.469.767 

1.451.019 

HUMAN  RESOURCE  PROGRAMS 

Wm  Armstrong  Award  91/92 

- 

2,000 

- 

2,000 

- 

GREAT  (GC  11) 

- 

1,439,024 

97,334 

1,168,548 

173,142 

I  PDF 

156,250 

400,000 

50,000 

331,250 

175,000 

MART  1988/89 

15,825 

- 

5,392 

10,433 

- 

MART  1989/90 

76,650 

- 

9,835 

66,815 

- 

HART  1990/91 

347,840 

- 

29,123 

253,679 

65,038 

HART  1991/92 

- 

760,773 

11,458 

368,834 

380,481 

STARS  -  SC  4 

- 

100,000 

- 

100,000 

- 

TEST  1989/90 

414,645 

- 

82,489 

292,748 

39,408 

TEST  1991/92 

- 

212.356 

32.760 

39.112 

140.484 

1.011.210 

2.914.153 

318.391 

2.633.419 

973.553 

SCIENCE  &  TECHNOLOGY  PROGRAMS 

MOE  Sustainable  Development 

- 

1,000,000 

- 

- 

1,000,000 

MOE  Centres  of  Excellence 

- 

1,900,000 

- 

936,674 

963,326 

R2D2  1991/92 

740,000 

- 

103,000 

637,000 

STDF  1988/89 

3,540 

100 

- 

3,640 

- 

SA-1 

3,068,556 

1,000 

624,387 

2,445,169 

- 

V  SA-2 

2,207,842 

- 

162,541 

1,595,357 

449,943 

^  SA-3 

6,513,781 

23,800 

654,907 

3,704,040 

2,178,634 

'Tech  B.C.  1 

- 

5,830,958 

27,037 

2,279,786 

3,524,135 

Tech  B.C.  2 

- 

5.781.803 

200.056 

381.240 

5.200.507 

11.793.719 

15.277.661 

1 

.668.928 

11.448.907 

13.953.546 

total  -  PAGE  1 

15.173.694 

19.518.442 

2 

.322,939 

15.943.441 

16.425.756 

Dyke& 

Howard 

CHARTERED  ACCOUNTANTS 


C  320 


PROVINCE  OF  BRITISH  COLUMBIA 


Schedule  2 


SCIENCE 

COUNCIL  OF  BRITISH  COLUMBIA 

continued 

SCHEDULE  OF  COMHITMEKTS  AND  DISBURSEMENTS  OF 
SCIENCE  COUNCIL  PROGRAM  GRANTS 

YEAR  ENDED  MARCH  31,  1992 

Known  . 

Outstanding 

Comni tments  Additional  Ccmni tment 

Beginning  Comni tments  Reductions 

Disbursed 

Known 

Outstanding 
Comni tments 

Of  Year 

During  Year 

During  Year 

During  Year 

End  of  Year 

CARRIED  FORWARD 

$15. 173.694 

$19,518,442 

$  2.322.939 

$15,943,441 

$16,425,756 

SPECIAL  PROJECTS/SPECIAL  REQUESTS 

Client  Needs  Survey  -  Incremental 

- 

5,000 

- 

1,011 

3,989 

Council  Liability  -  Opinion 

- 

1,235 

- 

1,235 

- 

Intellectual  Property  Seminar 

6,416 

- 

6,416 

- 

- 

Marketing  &  Management  Skills  Workshop 

3,108 

- 

- 

- 

3,108 

Marketing  Study 

16,878 

- 

- 

13,616 

3,262 

National  Forum  -  PACST 

- 

2,223 

- 

2,223 

- 

Regions  -  Kamloops 

- 

10,000 

- 

9,000 

1,000 

Regions  -  Kelowna 

- 

10,000 

- 

9,000 

1,000 

Peace  Region  Enterprise  Development  Centre 

1,000 

- 

- 

- 

1,000 

Quality  Assurance 

14,000 

- 

10,000 

4,000 

- 

S  &  T  Fund  Event 

- 

20,000 

- 

19.270 

730 

Seattle  Visit 

- 

14,617 

- 

14,617 

- 

Small  Initiatives  Fund 

- 

19.550 

- 

19,550 

- 

Technology  Map  of  B.C. 

- 

5,000 

- 

3,000 

2,000 

UBC  Electric  Car 

- 

10,000 

- 

9,000 

1,000 

University  Construction  Chair 

5,000 

253 

- 

5,253 

- 

Vancouver  Island  Technology  Centre 

27,000 

45,000 

- 

36,000 

36,000 

VITRA 

1,500 

- 

1,500 

- 

- 

Women  in  Science 

2.113 

5.000 

- 

5.000 

2.113 

77.015 

147.878 

17.916 

151.775 

55.202 

SPECIAL  INITIATIVES  FUND 

1.229.372 

212.250 

_ 

633.776 

807.8461 

SCIENCE  AWARENESS  PROGRAMS 

Arts,  Science  &  Technology  Centre  1 

-  Regional  Science  Fairs  1990 

500 

- 

500 

- 

-  1 

BCSTA/FISA  Book  Prize  1991 

10,000 

2,500 

2,865 

9,635 

-  1 

BCSTA/FISA  Book  Prize  1992 

- 

12,865 

- 

8,972 

3,893l 

Comnunication  &  Education 

- 

153,925 

- 

153,925 

-  1 

Public  Awareness  Fund 

84,412 

15,750 

- 

56,674 

43,4881 

Science  &  Engineering  Awards 

- 

54,941 

- 

54,941 

-  1 

Science  Education  Initiatives 

20,000 

- 

- 

20,000 

-  1 

Science  Students  -  Recognition 

- 

54,984 

- 

36,375 

18. 6091 

Science  School  Fairs 

4.000 

25.000 

- 

4.000 

25.00Cl 

118.912 

319.965 

3,365 

344.522 

9O.99J 

OTHER  EXPENDITURES  I 

Hydrogen  A1 1 i ance 

- 

492,000 

- 

462,261 

29,731 

Regional  S  &  T  Councils 

- 

340,000 

- 

- 

340, oof 

Wastewater  Management 

- 

46,000 

- 

46,000 

-  1 

University  Industry  Chairs 

- 

500,000 

- 

- 

500, Ool 

Honoraria  &  Evaluation  Expenses 

- 

103,127 

- 

103,127 

-  1 

Program  Audits 

- 

35,495 

- 

5,495 

30,00l 

Program  Development 

- 

31,000 

- 

10,509 

20.49| 

Program  Evaluations 

- 

54,504 

- 

54,504 

-  1 

Program  Promotions 

- 

101.025 

- 

101.025 

-  1 

- 

1.703.151 

- 

782.921 

920. 23I 

S16.598.993  S21.901.686  S  2.344.220  $17.856.435  $18.300.0: 


Dyke<^ 

Howard 

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PUBLIC  ACCOUNTS  1991/92 


C  321 


r 

i  ■ 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


li  ORGANIZATION 

The  Science  Council  of  British  Columbia  was  established  in  June  1978  under  the 
'  Science  Council  of  British  Columbia  Act.  In  1989,  the  Science  Council  of  British 
!  Columbia  and  the  Secretariat  on  Science,  Research  and  Development  were  amalgamated 
pursuant  to  the  Science  Council  Act,  Chapter  77,  and  continued  as  the  Science  Council 
!|  of  British  Columbia  ("Science  Council"). 

I  The  primary  objective  of  Science  Council  is  to  encourage  the  development  and 
I  application  of  advanced  technology  to  support  economic  development  in  the  Province 
I  including  the  implementation,  administration  and  funding  of  programs  and  the 
I  organization  and  management  of  projects  and  initiatives. 

ACCOUNTING  POLICIES 

Basis  of  Accounting  for  Receipts,  Expenditures  and  Appropriations 
Grant  receipts  are  accounted  for  in  the  year  the  respective  grant  agreement  becomes 
effective. 

Full  provision  is  made  for  all  accrued  liabilities  except  that  outstanding  Program 
commitments,  which  are  conditional  on  receipt  of  satisfactory  progress  reports,  are 
not  recorded  until  disbursed. 

I  Appropriations  are  comprised  of  grant  receipts  (net  of  transfers  and 
disbursements),  and  any  interest  earned  thereon,  that  are  designated  for 

I  expenditure  under  the  programs  specified  in  the  grant  agreement. 

I  Short-Term  Investments 

i  Short-term  investments  are  recorded  at  the  lower  of  cost  and  market  value. 

Capital  Assets 

Capital  assets  are  not  capitalized  and  depreciated,  but  are  recorded  as 
expenditures  in  the  period  they  are  purchased. 

I I  PROGRAM  APPROPRIATIONS 

As  at  March  31,  1992  Program  appropriations  amounted  to  $  22,110,023  (1991  - 
!  $  21,986,669),  of  which  $  18,300,024  (1991  -  $  16,598,993)  has  been  committed  for 

I  expenditure  for  specifically  identifiable  projects  and  awards.  The  remaining  balance 
I  of  the  Program  appropriations  amount  is  to  be  committed  for  expenditure  throughout 
||  the  remaining  terms  of  the  programs  as  per  the  funding  contracts  with  the  Province 
I  of  British  Columbia, 


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SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


4.  PROGRAM  COMMITMENTS 


During  the  year,  the  Science  Council  approved  and  committed  to  fund  programs  (j 
outlined  in  Schedule  2),  totalling  $  21,901,686  (1991  -  $  15,662,099).  At  March  3j 
1992,  known  outstanding  commitments  totalled  $  18,300,024  (1991  -  $  16,598,993). 


Health  Development  Fund  (HDF) 

Since  1988  the  HDF  program  has  provided  funding  for  projects  in  the  followii 
areas: 


a)  health  technology  development  for  commercial  products. 
SCBC)  is  administered  solely  by  Science  Council. 


This  program  (HDF 


b)  health  technology  assessment.  This  program  (HDF  -  Joint)  is  administer] 
jointly  by  the  Science  Council  and  the  British  Columbia  Health  Researl 
Foundation. 


HDF  funding  from  the  Province  of  British  Columbia  was  discontinued  after  March  3 
1991.  The  Science  Council  and  the  British  Columbia  Health  Research  Foundation  a| 
seeking  approval  to  use  the  remaining  balance  of  HDF  uncommitted  funds  to  contin| 
the  program  during  the  ensuing  year. 


Market  Assessment  of  Research  and  Technology  (MART) 

The  MART  program  is  designed  to  encourage  the  analysis  of  market  needs  in 
development  of  new  science  and  technology  based  products. 


During  the  year  funding  for  the  MART  program  was  supplemented  by  $  250,000  frli 


prior  years’  program  funds  that  were  uncommitted  as  at  March  31,  1991. 


Environmental  Research 


a)  Recycling  Research,  Development  and  Demonstration  (R2D2) 


The  Science  Council  has  been  contracted  by  the  Ministry  of  Environment 
administer  the  R2D2  program.  R2D2  is  a  sub-component  of  the  Provinct 
Financial  Incentives  for  the  Reuse  of  Scrap  Tires  (FIRST)  Program  and 
designed  to  fund  projects  aimed  at  developing  commercial  uses  for  scrap  tir( 
During  the  year  Science  Council  received  $  1,000,000  to  support  this  program 
approved  and  committed  to  fund  projects  totalling  $  740,000.’  The  remain] 
funds  will  be  carried  forward  to  support  new  projects  during  the  ensuing  ye 


Dyke(S(^ 

Howard 

CHARTERED  ACCOUNTAL 


PUBLIC  ACCOUNTS  1991/92 


C  323 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
MARCH  31,  1992 


PROGRAM  COMMITMENTS  -  continued 

b)  MOE  Centres  of  Excellence 

The  Science  Council  has  been  contracted  by  the  Ministry  of  Environment  to 
administer  the  University  Centres  of  Excellence  awards.  This  program  is 
designed  to  support  environmental  research  projects,  including  waste  management 
and  aquatic  resource  research  projects  at  Simon  Fraser  University,  the 
University  of  British  Columbia  and  the  University  of  Victoria. 

c)  Sustainable  Development  Funds 

The  Science  Council  has  been  contracted  by  the  Ministry  of  Advanced  Education, 
Training  and  Technology  and  the  Ministry  of  Environment  to  administer  funds  to 
support  projects  in  the  field  of  sustainable  development.  During  the  year 
$  1,000,000  was  received  and  appropriated  by  Science  Council  towards  funding 
research  projects  under  the  program. 

Special  Initiatives  Fund 

The  Special  Initiatives  Fund  was  created  during  the  year  ended  March  31,  1990  as 
a  one-time  only  program  designed  to  support  science  and  technology  related  projects 
which  do  not  qualify  for  funding  under  other  existing  programs  administered  by 
Science  Council . 

Hydrogen  Alliance 

The  Science  Council  has  been  contracted  by  the  Ministry  of  Advanced  Education, 
Training  and  Technology  to  administer  the  funding  for  the  initial  start-up  of  the 
Agency  for  Hydrogen  Systems.  The  agency  is  to  manage  current  and  future  hydrogen 
projects  on  behalf  of  the  Province  of  British  Columbia  and  is  independent  of  the 
Science  Counci  1 . 

During  the  year  the  Science  Council  received  and  committed  for  expenditure 
$  492,000  in  respect  of  the  Hydrogen  Alliance  program. 

Regional  S  &  T  Councils 

The  Science  Council  has  been  contracted  by  the  Ministry  of  Advanced  Education, 
Training  and  Technology  to  administer  funding  to  support  the  operation  of  the 
Regional  Science,  Technology  and  Innovation  Councils  during  the  year  ending 
March  31,  1993.  The  mission  of  the  Regional  Councils  is  to  foster,  in  all  areas 
of  British  Columbia,  a  culture  which  values  science,  technology,  innovation  and 
entrepreneurship  in  order  to  maintain  industry  competitiveness  and  a  high  standard 
of  living. 

During  the  year  the  Science  Council  received  and  committed  for  expenditure 
$  340,000  in  respect  of  the  Regional  S  &  T  Councils  program. 


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CHARTERED  ACCOUNTANTS 


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PROVINCE  OF  BRITISH  COLUMBIA 


SCIENCE  COUNCIL  OF  BRITISH  COLUMBIA 
NOTES  TO  THE  FINANCIAL  STATEMEFfTS 
YEAR  ENDED  MARCH  31,  1992 


5.  STRATEGIC  PLANNING  FOR  APPLIED  RESEARCH  AND  KNOWLEDGE  (SPARK) 

The  objective  of  SPARK  is  to  develop  networks  to  identify  opportunities  for  t|- 
application  of  research  and  development  in  various  industries  throughout  the  Provinc 
of  British  Columbia.  SPARK  is  funded  by  grants  from  the  Province  of  Britis 
Columbia,  the  Government  of  Canada  and  fees  derived  from  workshops  and  forums 
During  the  year  the  Province  of  British  Columbia  provided  SPARK  funding  in  the  amour 
of  $  500,000  and  the  Science  Council  transferred  $  300,000  (1991  -  $  500,000)  1 
SPARK  from  the  Program  Base  budget.  ' 

6.  RECOVERIES  FROM  BRITISH  COLUMBIA  HEALTH  RESEARCH  FOUNDATION  (BCHRF) 

Effective  April  1,  1992  the  BCHRF  operations  expenditures  are  no  longer  include 
the  operating  accounts  of  the  Science  Council.  BCHRF  operation  expenditures  pai 
the  Science  Council  are  netted  directly  against  the  related  recoveries  from  BCl 

7.  LEASE  COMMITMENTS 

The  Science  Council  is  committed  to  lease  office  premises  until  March  31,  1998 
base  monthly  rental  of  approximately  $  17,400.  During  the  year  ended  March  31, 
the  Science  Council  entered  into  an  agreement  to  sublease  office  space  ui 
March  31,  1998  at  a  base  monthly  rental  of  approximately  $  5,600. 


CHARTERED  ACCOUNTA 


Dyke(^ 

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PUBLIC  ACCOUNTS  1991/92 


C  325 


The  Education  Technology  Centre  of  British  Columbia 

i;ii,iilL'i(;{J  Ai.i.iiiiiiLifils  Siiili:b2()  (604)3834191 

880  DoiifjLis  Strnni  Fax  (604)  381  4623 

Victoiia.LTC.  V8W2B7 


lYicc  I \(ilerh(nise 


May  7,  1992 


Auditor’s  Report 


To  the  Members  of 

The  Education  Technology  Centre  of  British  Columbia 


We  have  audited  the  balance  sheet  of  The  Education  Technology  Centre  of  British  Columbia  as  at 
March  31,  1992  and  the  statements  of  revenue  and  expenditures  and  surplus  and  changes  in 
financial  position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the 
society’s  management.  Our  responsibility  is  to  express  an  opinion  on  these  financial  statements 
based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those 
standards  require  that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position 
of  the  society  as  at  March  31 , 1 992  and  the  results  of  its  operations  and  the  changes  in  its  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles 
described  in  Note  3  to  the  financial  statements.  As  required  by  the  Society  Act  of  the  Province  of 
British  Columbia,  we  report  that,  in  our  opinion,  these  principles  have  been  applied  on  a  basis 
consistent  with  that  of  the  preceding  period. 


Chartered  Accountants 


C  326 


PROVINCE  OF  BRITISH  COLUMBIA 


The  Education  Technology  Centre  of  British  Columbia 

Balance  Sheet 


March  31 

1992  1991 

Assets 


Current  assets 


Petty  cash 

Due  from  University  of  Victoria  (Note  4) 

Grants  and  accounts  receivable 

Prepaid  expenses 

$ 

500 

1 .645,696 
6,881 
96,099 

$ 

500 

1.709,868 

64,399 

109,982 

1,749,176 

1 .884,749 

Prepaid  rent  (Note  5) 

641,239 

686,573 

Fixed  assets,  at  nominal  value  (Note  6) 

1 

1 

$ 

2,390,416 

$ 

2.571.323 

Liabilities 

Current  liabilities 

Accounts  payable  and  accrued  liabilities 

Vacation  payable 

GST  payable 

Wages  payable 

Unearned  revenue  (Note  7) 

$ 

449,832 

9,539 

1,058 

2,603 

484 

$ 

218,356 

11,063 

784 

4,800 

463,516 

235,003 

Deferred  revenue  (Note  5) 

641,239 

686,573 

Members’  Equity 

Surplus 

Contingency  reserve  (Note  1 0) 

985.661 

300,000 

1 .649,747 

$ 

2,390,416 

$ 

2,571,323 

Approved  by  the  Board 


Director 


PUBLIC  ACCOUNTS  1991/92 


C  327 


The  Education  Technology  Centre  of  British  Columbia 

statement  of  Revenue  and  Expenditures  and  Surplus 


Year  Ended  March  31 
1992  1991 

(Note  11) 


Revenue 
Grant  revenue 


Ministry  of  Education  (Note  8) 

$  2,245,335 

$  2,285,236 

Ministry  of  Education,  Native  Education 

35,000 

142,000 

Resources  Branch 

55,000 

2,000 

School  District  Grant 

- 

134,329 

Ministry  of  Education  -  STAR  grant 

190,000 

- 

Total  grant  revenue 

2,525,335 

2,563,565 

Other  revenue 

Information  services 

133,676 

6,400 

Registration  fees 

2,290 

5,240 

Investment  -  interest 

126,763 

285,692 

Donations  (Note  6) 

250,977 

195,707 

Miscellaneous  revenues 

10,446 

7 

Total  other  revenue 

524,152 

493,046 

Total  revenue 

3,049,487 

3,056,61 1 

Expenses 

Staff  salaries  and  benefits 

500,973 

375,258 

Seconded  and  contract  salaries 

and  benefits 

612,013 

476,464 

Travel 

334,468 

333,634 

Professional  services 

880,946 

496,935 

Operating  expenses 

Data  and  word  processing 

production  $ 

227,809 

$ 

93,266 

Office 

64,252 

78,422 

Bad  debts 

- 

100 

Advertising 

2,177 

5,826 

Printing 

31,162 

30,588 

Subscription  and  publication 

acquisition 

6,744 

8,250 

Equipment  lease/maintenance 

30,052 

- 

362,196 

216,452 

Asset  acquisitions 

249,865 

511,364 

Building  occupancy 

Office  lease 

97,048 

60,207 

Leasehold  improvements 

10,905 

630 

107,953 

60,837 

Balance,  carried  forward 

$  3,048,414 

$  2,470,944 

C  328 


PROVINCE  OF  BRITISH  COLUMBIA 


The  Education  Technology  Centre  of  British  Columbia 

Statement  of  Revenue  and  Expenditures  and  Surplus  Page  2 

Year  ended  March  31 


1992 

1991 

Balance,  brought  forward 

$  3,048,414 

$  2,470,944 

Grants  (Note  9) 

365,159 

837,904 

Total  expense 

3,413,573 

3,308,848 

Excess  (deficiency)  of  revenue 

over  expenses 

(364,086) 

(252,237) 

Surplus,  beginning  of  year 

1,649,747 

1 ,901 .984 

1,285,661 

1 ,649,747 

Contingency  reserve  (Note  1 0) 

300,000 

- 

Surplus,  end  of  year 

$  985,661 

$  1,649,747 

PUBLIC  ACCOUNTS  1991/92 


C  529 


The  Education  Technology  Centre  of  British  Columbia 

statement  of  Changes  in  Financial  Position 


Year  ended  March  31 
1992  1991 


Funds  provided  by  (used  in)  operating  activities 


Deficiency  of  revenue  over  expenses 

$ 

(364,086) 

$ 

(252,237) 

Non-cash  operating  items 

Grants  receivable 

Prepaid  expenses 

Accounts  payable  and  accrued  liabilities 

Vacation  payable 

GST  payable 

Unearned  revenue 

Wages  payable 

57,518 

13,883 

231.476 

(1,524) 

274 

(4.316) 

2,603 

47,420 

(103,982) 

121,427 

1 1 ,063 
784 
4,800 

(64.172) 

(170,725) 

Funds  provided  by  (used  in)  investing  activities 

Prepaid  rent 

Deferred  revenue 

45,334 

(45,334) 

(514,764) 

514,764 

- 

- 

Decrease  in  funds 

(64,172) 

(170,725) 

Funds,  beginning  of  year 

1,710,368 

1,881,093 

Funds,  end  of  year 

$ 

1,646,196 

$ 

1,710,368 

Funds  represented  by 

Petty  cash 

Due  from  University  of  Victoria 

$ 

500 

1,645,696 

$ 

500 

1,709,868 

$ 

1,646,196 

$ 

1,710,368 

C  330 


PROVINCE  OF  BRITISH  COLUMBIA 


The  Education  Technology  Centre  of  British  Columbia 
Notes  to  the  Financial  Statements 
March  31, 1992 


1.  Education  Technology  Centre  of  British  Columbia  ("ETC”) 

Purpose 

ETC  is  a  research  and  training  centre  whose  purpose  is  to  promote  effective  use  of  computer  technology 
in  British  Columbia  schools  (K-12).  ETC  provides  leadership  in  the  following  areas: 

-  Inservice  programs 

-  Research  and  development 

-  Telecommunications 

Mission 

ETC's  mission  is  to  explore  the  uses  of  technology  that  will  help  personalize  learning  and  that  will  assist 
learners  to  achieve  their  potential. 


2.  Incorporation 

ETC  was  incorporated  October  24,  1989  under  the  Society  Act.  Province  of  British  Columbia. 

3.  Significant  accounting  policies 

ETC’s  financial  statements  are  prepared  in  accordance  with  generally  accepted  accounting  principles  for 
non-profit  organizations  (Section  4230). 

4.  Due  from  University  of  Victoria 

The  University  of  Victoria  holds  grants  and  other  funds  on  behalf  of  ETC  on  an  interest  bearing  basis. 

5.  Prepaid  office  lease  and  deferred  revenue 

Pursuant  to  an  agreement  with  the  University  of  Victoria  and  Dunsmuir  Lodge,  ETC  has  advanced 
$713,020  to  complete  the  construction  and  renovation  of  premises  owned  by  the  University  of  Victoria  in 
return  for  a  1 6  year  prepaid  triple  net  lease  of  the  premises.  The  total  cost  of  construction  has  been 
deferred  as  prepaid  rent.  The  related  funding  of  $713,020  received  from  the  Ministry  of  Education  has 
been  reported  as  deferred  revenue.  The  prepaid  rent  and  deferred  revenue  are  amortized  on  a  straight- 
line  basis  over  1 6  years  from  completion  of  construction.  Construction  was  considered  to  be  substantially 
completed  in  August,  1 990. 

6.  Fixed  assets  (Schedule  1) 

It  Is  the  policy  of  ETC  to  expense  fixed  assets  and  capital  leases  in  the  year  of  acquisition  or  donation. 

Donated  equipment  and  services  (Schedule  1) 

It  is  the  policy  of  ETC  to  record  donated  equipment  and  services.at  estimated  fair  market  value. 


PUBLIC  ACCOUNTS  IP‘)l/92 


C  TLI 


The  Education  Technology  Centre  of  British  Columbia 

Notes  to  the  Financial  Statements 

March  31, 1992  Page  2 

7.  Unearned  revenues 

It  is  the  policy  of  ETC  to  realize  revenue  when  earned  regardless  of  when  payment  for  services  is  received. 
Revenue  of  $484  for  services  to  be  delivered  after  March  31,  1992  has  been  deferred  as  unearned 
revenue. 


8.  Ministry  of  Education  Grant  Revenue 

The  Ministry  of  Education  grant  revenue  includes  $2,200,000  provided  as  an  operating  grant  together  with 
the  amortization  of  deferred  revenue  in  the  amount  of  $45,335. 


9.  Grants 

Research  grants 

It  is  the  policy  of  ETC  to  expense  research  grants  as  they  are  paid  out  due  to  the  nature  of  the 
administration  of  granted  funds. 

Fellowship  grants 

It  is  the  policy  of  ETC  to  amortize  grants  for  ETC  fellowships  over  the  length  of  the  fellowship  period. 

Equipment  grants 

It  is  the  policy  of  ETC  to  expense  granted  equipment  and  furniture  F.O.B.  ETC. 

Development  grants 

It  is  the  policy  of  ETC  to  expense  grants  for  development  as  they  are  paid  out. 


10.  Contingency  reserve 

During  the  year,  $300,000  was  appropriated  from  surplus  to  provide  a  reserve  for  genera!  contingencies. 


11.  Comparative  figures 


Certain  1991  figures  have  been  reclassified  to  conform  with  the  1992  presentation. 


C  332 


PROVINCE  OF  BRITISH  COLUMBIA 


The  Education  Technology  Centre  of  British  Columbia 

Schedule  of  Purchased  and  Donated  Fixed  Assets 

March  31,  1992  Schedule  1 


Fixed  assets 

During  the  year,  The  Education  Technology  Centre  of  British  Columbia  acquired  and  expensed  fixed  assets  as 
follows: 

Purchased 

Data  and  word  processing  hardware  and  software 
Office  furniture  and  equipment 


207,099 


$  178,380 

28,719 


Donated 

Digital  equipment 

Computer  equipment  42,766 


$  249,865 


Donations  other  than  fixed  assets 

B.C.  Telephone  Company  through  its  subsidiary,  MPR  Teltech,  donated  programming  and  software 
development  services  estimated  by  management  to  have  a  fair  market  value  of  $90,000. 

British  Columbia  Systems  Corporation  donated  telecommunications,  systems  development  and  network  design 
services  with  a  fair  market  value  of  $1 1 8,21 1 . 


PUBLIC  ACCOUNTS  1991/92 


C  215 


W.L.C.  Developments  Ltd. 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax  (604)387-1230 


To  the  Shareholder  of  W.L.C.  Developments  Ltd.: 


I  have  audited  the  balance  sheet  of  W.L.C.  Developments  Ltd.  as  at  March  31,  1992 
and  the  statements  of  earnings  and  deficit  and  changes  in  financial  position  for  the  year 
then  ended.  These  financial  statements  are  the  responsibility  of  the  Company's 
management.  My  responsibility  is  to  express  an  opinion  on  these  financial  statements 
based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  Company  as  at  March  31,  1992  and  the  results  of  its  operations 
and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles.  As  required  by  the  Company  Act  of  British 
Columbia,  I  report  that,  in  my  opinion,  these  principles  have  been  applied  on  a  basis 
consistent  with  that  of  the  preceding  year. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria^  British  Columbia 
May  27,  1992 


C  334 


PROVINCE  OF  BRITISH  COLUMBIA 


W.L.C.  DEVELOPMENTS  LTD. 
BALANCE  SHEET 
AS  AT  MARCH  31,  1992 


ASSETS 

1992 

1991 

Cash 

Short-term  deposits 

Accounts  receivable 

Property  held  for  sale  (Note  3) 

Furniture  and  equipment 

Deferred  marketing  costs 

$  67,520 

2,120,725 
49,675 
22,654,062 

725 

211.291 

$  94,922 

2,773,512 
44,740 
18,023,317 
1,685 

$25,103,998 

$20,938,176 

LIABILITIES 

Accounts  payable  and  accrued  liabilities 
Term  loans  (Note  4) 

$  694,016 

6.188.181 

$  3,995,361 

6.882.197 

3.995.361 

SHAREHOLDER'S  EQUITY 


Share  capital 
Authorized  - 

10,000  common  shares  without  par  value 

Issued  -  1  common  share  1  1 

Contributed  surplus  24,685,385  24,685,385 

Deficit  f6.463.585)  (^7.742.5711 

18.221.801  16.942.815 

$25.103.998  $20.938.176 


COMMITMENTS  (Note  5) 


APPROVED  BY  THE  BOARD: 


PUBLIC  ACCOUNTS  1991/92 


C  335 


W.L.C.  DEVELOPMENTS  LTD. 
STATEMENT  OF  EARNINGS  AND  DEFICIT 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992  1991 

REVENUES 


Land  and  project  sales 

$  3,774,819 

$  74,691 

Interest 

63,314 

591,408 

Other 

10 

- 

3.838.143 

666.099 

EXPENSES 

Cost  of  land  sales 

1,613,594 

51,618 

Professional  services 

71,753 

66,906 

Marketing 

71,570 

4,789 

Administration 

51,128 

60,404 

Taxes  and  licences 

750,000 

200,050 

Bad  debts 

152 

- 

Depreciation 

960 

960 

2.559.157 

384.727 

EARNINGS  FOR  THE  YEAR 

1,278,986 

281,372 

DEFICIT  -  BEGINNING  OF  YEAR 

r7.742.57D 

r8.023.943i 

DEFICIT  -  END  OF  YEAR 

$  r6.463.5851 

$  r7.742.57n 

C  336 


PROVINCE  OF  BRITISH  COLUMBIA 


W.L.C.  DEVELOPMENTS  LTD. 
STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1992  1991 


CASH  PROVIDED  FROM  (USED  FOR) 
OPERATING  ACTIVITIES 


Earnings  for  the  year 

$  1,278,986 

$  281,372 

Non-cash  items: 

Depreciation 

960 

960 

Amortization  of  deferred 

marketing  costs 

70.430 

- 

1,350,376 

282,332 

Property  held  for  sale 

(4,630,745) 

(1,792,166) 

Accounts  receivable 

(4,935) 

(17,808) 

Furniture  and  equipment 

- 

22 

Deferred  marketing  costs 

(281,721) 

- 

Accounts  payable  and  accrued  liabilities 

r3.30L3451 

G.  186.0231 

r6.868.3701 

r2.713.6431 

FINANCING  ACTIVITIES 

Term  loans 

6.188.181 

- 

(DECREASE)  IN  CASH 

AND  SHORT-TERM  DEPOSITS 

(680,189) 

(2,713,643) 

CASH  AND  SHORT-TERM  DEPOSITS  - 

BEGINNING  OF  YEAR 

2.868.434 

5.582.077 

CASH  AND  SHORT-TERM  DEPOSITS  - 

END  OF  YEAR 

$  2.188.245 

$  2.868.434 

PUBI.IC  ACCOUNTS  1991/92 


C  337 


W.L.C.  DEVELOPMENTS  LTD. 

NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 

1.  THE  COMPANY 

W.L.C.  Developments  Ltd.  (the  "Company")  was  incorporated  under  the 

Company  Act  of  British  Columbia  on  January  5,  1983,  and  is  wholly-owned  by 

the  Province  of  British  Columbia. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

(a)  Property  Held  for  Sale 

Land  and  improvements  are  recorded  at  the  lower  of  cost  and 
estimated  net  realizable  value.  The  Company  capitalizes  all  direct 
acquisition,  construction,  and  development  costs  relating  to  land  and 
improvements,  and  the  applicable  portion  of  general  and  administrative 
expenses  and  financing  costs. 

(b)  Accounting  for  Land  Sales 

Revenue  from  land  sales  is  recognized  when  all  material  requirements 
related  to  the  transaction  have  been  met  and  cash  or  appropriate  security 
equal  to  at  least  10%  of  the  total  proceeds  has  been  received.  The  cost  of 
land  sold  is  determined  on  an  estimated  revenue  basis  for  developed  land, 
and  on  an  acreage  basis  for  undeveloped  land. 

(c)  Deferred  Marketing  Costs 

The  initial  marketing  costs  for  the  Village  North  project  have  been 
deferred  and  are  being  amortized  on  a  straight-line  basis  over  four  years. 

(d)  Depreciation 

Depreciation  of  furniture  and  equipment  is  provided  on  a  straight-line 
basis  over  three  years. 

3.  PROPERTY  HELD  FOR  SALE 

(a)  Under  the  School  Relocation  Agreement,  entered  into  in  November 
1989,  between  the  Company,  British  Columbia  Enterprise  Corporation, 
the  Ministry  of  Environment,  Lands  and  Parks  (at  that  time  known  as  the 
Ministry  of  Crown  Lands)  and  the  Ministry  of  Education,  the  Company  has 
committed  to  fund  the  cost  to  relocate  a  school  facility  in  return  for  certain 
land  and  amendments  to  the  Village  Expansion  Official  Community  Plan 
and  the  zoning  bylaws. 


C  338 


PROVINCE  OF  BRITISH  COLUMBIA 


W.L.C  DEVELOPMENTS  LTD. 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


To  March  31,  1992  relocation  costs  of  $5.6  million  (March  31,  1991  - 
$5.3  million)  have  been  recorded  in  the  accounts  as  land  and 
improvements.  The  unexpended  portion  of  the  relocation  costs  is  included 
in  accounts  payable  and  accrued  liabilities. 

(b)  Financing  and  general  and  administrative  costs  capitalized  during  the 
year  were  $199,970  (1991  -  $nil)  and  $142,488  (1991  -  $144,523) 
respectively. 

4.  TERM  LOANS 

As  at  March  31,  1992,  the  following  short-term  loans  were  due  to  the 
Province: 

Due  April  21,  1992,  bearing  interest  at  7.2% 

Due  May  1,  1992,  bearing  interest  at  8.781% 

Due  May  1,  1992,  bearing  interest  at  7.850% 

Accrued  interest 


5.  COMMITMENTS 

(a)  Blackcomb  Skiing  Enterprises  Ltd.  (Blackcomb)  has  options  to 
purchase  certain  properties  held  for  sale.  The  options  expire  in  February 
2014,  but  under  certain  conditions  may  expire  in  2004,  in  which  event 
Blackcomb  has  a  right  of  first  refusal  to  2014. 

(b)  Prior  to  March  31,  1992,  the  Company  entered  into  a  number  of 
contracts  and  commitments  relating  to  the  development  and  servicing  of 
its  lands  over  the  next  three  years.  The  outstanding  contracts  and 
commitments  at  March  31,  1992  totalled  approximately  $4  million. 

6.  RELATED  PARTY  TRANSACTIONS 

The  Company  uses  office  accommodation  provided  to  it  by  the  Province  of 
British  Columbia  at  no  charge.  The  estimated  value  of  benefit  received  in 
respect  of  office  accommodation  for  the  year  was  $15,000. 

7.  TAXES 

As  the  Company  is  owned  by  the  Province  of  British  Columbia,  it  is  not 
subject  to  federal  or  provincial  income  taxes.  The  Company  is  not  exempted 
from  Goods  and  Services  Tax. 


2,000,134 

2,000,000 

2.000.000 

6,000,134 

188.047 

6.188.181 


PUBLIC  ACCOUNTS  1991/92 


C  339 


178561  B.  C.  Ltd. 

(Formerly  Pacific  Coach  Lines  Limited) 


178561  B.  C.  LTD. 

(formerly  Pacific  Coach  Lines  Limited) 

1991/92  FINANCIAL  STATEMENTS 


C  340 


PROVINCE  OF  BRITISH  COLUMBIA 


178561  B.C.  LTD. 
BALANCE  SHEET 
(PREPARED  WITHOUT  AUDIT) 


MARCH  31 


ASSETS: 

CURRENT  ASSETS: 

Cash 

Accounts  Receivable 

Pension  Overpayment  Recoverable 


LIABILITIES: 

CURRENT  LIABILITIES: 

Accounts  Payable  and  Accrued 
Liabil ities 


SHAREHOLDER'S  EQUITY 

SHARE  CAPITAL: 

AUTHORIZED  - 

10,000  common  shares 
of  $  par  value 

ISSUED  - 

2  common  shares 
CONTRIBUTED  SURPLUS 
CONTRIBUTION  TO  THE  PROVINCE 
OF  BRITISH  COLUMBIA 
DEFICIT 


1992  1991 


$ 

9,085 

$ 

9,085 

0 

0 

33,376 

$ 

33,376 

L 

42,461 

42,461 

$ 

$ 

- 

- 

$  2 

$  2 

2,491,366 

2,491,366 

(1,225,000)  ■ 

(1,225,000) 

(1,223,907) 

(1,223,907) 

$  42,461 

$  42,461 

$  42,461 

$  42,461 

President 


PUBLIC  ACCOUNTS  1991/92 


C  341 


178561  B.C.  LTD. 

STATEMENT  OF  OPERATIONS  AND  DEFICIT 
(PREPARED  WITHOUT  AUDIT) 


YEAR 

ENDED  MARCH 

31 

1992 

1991 

REVENUE: 

Rental  and  Sundry  Revenue 

$ 

- 

$ 

- 

Interest  on  Short  Term  Deposits 

- 

- 

$ 

- 

$ 

- 

EXPENSES: 

Professional  Fees 

$ 

- 

$ 

185 

Other  Operating  Expenses 
Depreciation 

- 

- 

i 

- 

i 

185 

INCOME  (LOSS)  BEFORE  EXTRAORDINARY  ITEMS 

$ 

- 

$ 

(185) 

CORRECTION  OF  PRIOR  YEAR'S  INCOME 

- 

- 

EXTRAORDINARY  INCOME  (EXPENSE)  RELATING 

TO  PRIVATIZATION: 

* 

* 

INCOME  (LOSS)  FOR  YEAR 

$ 

- 

$ 

(185) 

DEFICIT,  BEGINNING  OF  YEAR 

fl 

,223,9071 

(1,223,7221 

DEFICIT,  END  OF  YEAR 

Hi 

,223,9071 

LJ 

1,223,9071 

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Trust  Funds  Financial  Statements 


Contents 

Page 

Summary  of  Trust  funds,  including  pension  and  superannuation  funds  administered  by  the  Government .  3 

Financial  Statements 
Pension  Superannuation  Funds 

British  Columbia  Hydro  and  Power  Authority  Pension  Fund .  5 

BC  Rail  Ltd.  Pension  Fund .  16 

College  Pension  Fund .  31 

Members  of  the  Legislative  Assembly  Superannuation  Account .  40 

Municipal  Superannuation  Fund . 48 

Public  Service  Superannuation  Fund .  57 

Teachers' Pensions  Fund .  68 

OtherTrust  Funds 

British  Columbia  Public  Service  Long  Term  Disability  Fund .  78 

Credit  Union  Deposit  Insurance  Corporation  of  British  Columbia .  84 

Workers'  Compensation  Board .  95 

Investment  Funds 

Province  of  British  Columbia  Pooled  Investment  Portfolios .  1 07 


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m 


PUBLIC  ACCOUNTS  1991/92 


D3 


Summary  of  the  Financial  Position  of  Trust  Funds 
Field  and  Administered 

(Unaudited) 


Superannuation,  Pension  and  Long-Term  Disability  Funds 

Public  Service  Superannuation  Fund^ . 

Members  of  the  Legislative  Assembly  Superannuation  Account^ . 

Municipal  Superannuation  Fund^ . 

Teachers'  Pension  Fund^ . 

College  Pension  Fund^ . 

B.C  Rail  Ltd.  Pension  Fund^ . 

British  Columbia  Hydro  and  Power  Authority  Pension  Fund^ . 

LongTerm  Disability  Fund . 

Subtotals . 


Sinking  Funds^ 

British  Columbia  Building  Corporation . 

British  Columbia  Educational  Institutions  Capital  Financing  Authority 

British  Columbia  Hydro  and  Power  Authority . 

British  Columbia  Railway  Company . 

British  Columbia  Regional  Hospital  Districts  Financing  Authority . 

British  Columbfa  School  Districts  Capital  Financing  Authority . 

Greater  Vancouver  Sewage  and  Drainage  District . 

Province  of  British  Columbia . 

Province  of  British  Columbia-Fiscal  Agency  borrowings . 

Other . 

Subtotals . 


Investment  Funds  of  Crown  Corporations  and  Agencies^ 

British  Columbia  Enterprise  Corporation  Trust . 

British  Columbia  Trade  Development . 

British  Columbia  Ferry  Corporation  Trust . 

British  Columbia  Health  Care  Research  foundation . 

British  Columbia  Mental  Health . 

British  Columbia  Heritage  Trust . 

British  Columbia  Housing  and  Employment  Development  Financing  Authority 

Trust . 

British  Columbia  Hydro  and  Power  Authority  Trust . 

British  Columbia  Lottery  Corporation  Trust . 

B.C.  Steamship  Trust . 

British  Columbia  Railway  Company  Trust . 

British  Columbia  Transit  Trust . 

Crown  Counsel  Trust . . 

Hospital  Certified  Interest . 

Provincial  Capital  Commission . 

Commonwealth  Games  Society . 

Downtown  Revitalization . 

Credit  Union  Deposit  Insurance  Corporation  of  British  Columbia^ . 

British  Columbia  Systems  Corporation  Trust . 

Other . 

Subtotals . 

Workers'  Compensation  Board  of  British  Columbia^ . 


(In  Thousands) 


Assets 

-Balance Sheet  - 

Liabilities 

Fund 

Balances 

Previous 
Year  Fund 
Balances 

$ 

$ 

$ 

$ 

4,604,690 

3,564 

4,601,126 

4,063,904 

10,198 

9,225 

973 

3,068 

5,194,312 

30,636 

5,163,676 

4,225,086 

3,798,927 

6,005 

3,792,922 

3,182,907 

341,410 

166 

341,244 

282,71 1 

270,506 

145 

270,361 

233,559 

955,728 

1,362 

954,366 

883,133 

89,663 

3,106 

86,557 

78,084 

15,265,434 

54,209 

15,211,225 

12,952,452 

109,803 

109,803 

92,632 

168,296 

38 

168,258 

139,022 

2,327,943 

79 

2,327,864 

2,336,603 

583,1  15 

850 

582,265 

618,455 

482,928 

150 

482,778 

430,757 

786,382 

445 

785,937 

726,844 

8,589 

2 

8,587 

15,550 

544,176 

3,098 

541,078 

888,335 

235,514 

3,438 

232,076 

176,313 

38,853 

29 

38,824 

43,597 

5,285,599 

8,129 

5,277,470 

5,468,108 

98 

98 

853 

5,783 

2 

5,781 

5,715 

19,210 

19,210 

45,287 

17,040 

5 

17,035 

12,380 

2,164 

2,164 

4,852 

3,230 

2 

3,228 

3,702 

1,738 

1,738 

1,659 

204,889 

4,065 

200,824 

192,655 

47,642 

47,642 

44,977 

2,493 

2,493 

2,796 

30,695 

30,695 

2,129 

44,928 

44,928 

47,949 

2,800 

2 

2,798 

1,621 

18,004 

18,004 

6,119 

4,119 

4,119 

3,840 

16,191 

4 

16,187 

2,102 

7,741 

3 

7,738 

8,803 

108,242 

4,230 

104,012 

1 12,902 

9,078 

9,078 

3,239 

128,241 

19 

128,222 

41,302 

674,326 

8,332 

665,994 

544,882 

3,992,944 

40,962 

3,951,982 

3,641,756 

D4 


PROVINCE  OF  BRITISH  COLUMBIA 


Summary  of  the  Financial  Position  of  Trust  Funds 
Held  and  Administered — Continued 
(Unaudited) 


In  Thousands 


Assets 

Balance  Sheet  — 

Liabilities 

Fund  Bal¬ 
ances 

Previous 
Year  Fund 
Balances 

Other  Trust  Funds^ 

$ 

$ 

$ 

$ 

Public  Trustee  and  Official  Administrators . 

.  392,212 

4,787 

387,425 

353,997 

Crop  Insurance  Fund . 

.  9,336 

14,990 

(5,654) 

(10,596) 

Land  Registry  Assurance  Fund . 

.  989 

989 

914 

Supreme  and  County  Court  Rules . 

.  106,204 

10,810 

95,394 

91,548 

Other  Trust  Deposits . 

.  65,601 

65,601 

62,471 

Subtotals . 

.  574,342 

30,587 

543,755 

498,334 

Grand  Totals . 

.  25,792,645 

142,219 

25,605,426 

23,105,532 

’Totals  are  shown  only  to  give  the  reader  an  idea  of  the  size  and  scope  of  the  trust  funds  held  and  administered  by  the  province  on  a  collective  basis. 

^The  figures  for  tbe  superannuation  and  pension  funds  are  taken  from  the  latest  audited  financial  statements  included  in  this  section,  which  do  not  all  have 
the  same  fiscal  year  end. 

^The  figures  for  these  funds  are  mainly  taken  from  the  records  of  the  province  as  at  March  31,1 992,  and  therefore  may  differ  from  the  figures  in  the  financial 
statements  of  the  applicable  Crown  Corporations  and  Agencies  contained  in  Section  C. 

"'The  fiscal  year  of  this  fund  has  changed,  and  the  comparative  amount  for  1990/1 991  has  been  restated. 


PUBLIC  ACCOUNTS  1991/92 


British  Columbia  Hydro  and  Power  Authority  Pension  Plan 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax (604) 387-1230 


To  the  Superannuation  Commissioner,  Trustee: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  British 
Columbia  Hydro  and  Power  Authority  Pension  Plan  as  at  December  31,  1991  and 
the  statement  of  changes  in  net  assets  available  for  benefits  for  the  year  then  ended. 
These  financial  statements  are  the  responsibility  of  the  Superannuation 
Commission's  management.  My  responsibility  is  to  express  an  opinion  on  these 
financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Plan  as  at  December  31,  1991  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


/  George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
April  15,  1992 


PROVINCE  OF  BRITISH  COLUMBIA 


D  6 


Province  of 
British  Columbia 


OFFICE  OF  THE 
COMMISSIONER 


Superannuation 

Commission 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone;  (604)  387-1002 
Facsimile;  (604)  387-4199 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 

MANAGEMENT’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Commission  are  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  British  Columbia  Hydro  and  Power  Authority  Pension  Plan's 
financial  statements  and  for  the  financial  information  included  in  the  Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  British  Columbia  Hydro  and  Power  Authority  Pension  Plan's  financial  statements  have 
been  examined  by  the  Office  of  the  Auditor  General  of  British  Columbia.  Their  examination 
was  made  in  accordance  with  generally  accepted  auditing  standards  which  included  a  review 
of  the  Superannuation  Commission's  internal  controls  to  establish  a  basis  for  determining  the 
nature,  timing,  and  extent  of  audit  tests  to  be  applied.  Their  report  outlines  the  nature  of  their 
examination  and  their  opinion  on  the  financial  statements  of  the  British  Columbia  Hydro  and 
Power  Authority  Pension  Plan. 


JOHN  W.  COOK,  F.C.I. A., 
Superannuation  Commissioner,  Trustee 


LA^Y  JA^^^C.M.A. 

Axting  Din^pt<5r,  Finance, 
Superannuation  Commission 


I’UBLIC  ACCCXJNTS  1991/92 


D  7 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 


December  3 1 

1991 

1990 

($  Thousands) 

ASSETS 

Investments  (Note  4) 

Money  market  instruments 

$335,566 

$279,140 

Bonds 

291,763 

508,603 

Equities 

319,308 

48,497 

Mortgages 

8 

78 

946,645 

836,318 

Receivables 

Members'  contributions 

492 

1,182 

Employers'  contributions 

539 

1,914 

Employer,  Indexing  Adjustment 

- 

1,530 

Employer,  Privatization  Refimds 

- 

12,528 

Other 

107 

109 

Accrued  interest  and  dividends 

7,578 

13,059 

8,716 

30,322 

Cash 

367 

310 

Total  Assets 

955,728 

866,950 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

1,362 

1,324 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

$954,366 

$865,626 

The  eleven  accompanying  notes  are  an  integral  part  of  these  financial  statements. 
APPROVED  BY: 


tv 


Cr^/L 


JgJlN  W.  COOK,  F.C.I.A. 
Superannuation  Commissioner 


Trustee 


PROVINCE  OF  BRITISH  COLUMBIA 


D  8 


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PUBLIC  ACCOUNTS  1991/92 


D  9 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 

1.  DESCRIPTION  OF  THE  BRITISH  COLUMBIA  HYDRO  AND 
POWER  AUTHORITY  PENSION  PLAN 

The  following  description  of  the  British  Columbia  Hydro  and  Power  Authority  Pension 
Plan  (the  Plan)  is  provided  for  general  information  only.  For  more  complete 
information,  reference  should  be  made  to  the  Plan. 

a)  General 

The  Plan  is  a  contributory  defined  benefit  pension  plan  open  to  all  regular  employees  of 
the  British  Columbia  Hydro  and  Power  Authority  (B.C.  Hydro). 

b)  Contributions 

Effective  October  1,  1990  B.C.  Hydro  increased  its  contributions  to  7.05%  from  5.15% 
of  the  members'  plan  earnings.  Members  contribute  at  5.15%  of  the  members'  plan 
earnings.  Each  also  contributes  1 . 1 0%  of  members'  plan  earnings  to  the  Index  Reserve 
Account  to  provide  for  index  pension  payments. 

c)  Retirement  Benefits 

Members  who  are  at  least  age  50,  have  at  least  10  years  of  service  and  the  sum  of  their 
age  and  service  is  at  least  65,  may  elect  to  receive  an  immediate  pension,  or  to  delay 
receiving  a  pension.  Delayed  pensions  may  start  any  time  after  age  55,  subject  to 
reductions  of  5%  per  year  for  service  and  age  shortfalls.  Members  who  are  age  60,  or 
55  with  a  minimum  of  35  years  of  service,  are  eligible  for  an  immediate,  unreduced 
pension. 

The  Plan  provides  a  pension  of  2%  of  the  best  five  year  average  Plan  earnings  of  a 
member  for  each  year  of  contributory  service  up  to  a  maximum  of  35  years. 

Increases  in  the  index  pension  payments  are  provided  each  January  1st  and  are  related  to 
the  annual  increase  in  the  Consumer  Price  Index  (CPI)  as  at  the  previous  September 
30th.  These  increases  will  be  limited  to  a  lesser  amount  if  the  funds  in  the  Index 
Reserve  Account  are  insufficient  to  provide  the  full  amount  of  the  increase  in  the  CPI. 
As  there  were  sufficient  funds  available  at  January  1,  1991,  a  full  CPI  increase  of 
4.250%  (1990  -  5.241%)  to  the  basic  lifetime  portion  of  the  pension  payments  in  force 
was  provided.  Sufficient  funds  are  also  available  to  provide  a  full  CPI  increase  of 
5.408%  effective  January  1,  1992. 

d)  Termination  Benefits 

Benefits  from  the  Plan  will  depend  on  the  members'  age  and  service. 

i)  Terminating  members  with  at  least  5  years  service  may  elect  to:  1)  receive  a 
refund  of  personal  contributions  with  interest;  or,  2)  transfer  1.5  times  their 
personal  contributions  with  interest  or  the  value  of  the  pension,  whichever  is 
greater,  to  a  Locked-in  Registered  Retirement  Savings  Plan  or  another 
employer's  pension  plan;  or,  3)  leave  their  contributions  with  interest  in  the 
Plan  and  receive  a  deferred  pension  beginning  at  any  time  after  age  55. 


D  10 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991  


1.  DESCRIPTION  OF  THE  BRITISH  COLUMBIA  HYDRO  AND 
POWER  AUTHORITY  PENSION  PLAN  (continued) 

Delayed  or  deferred  pensions  will  be  increased  by  any  cost  of  living 
adjustments  that  were  applied  from  the  year  of  termination. 

ii)  Terminating  members  with  less  than  5  years  of  service,  and  under  age  60,  will 
receive  a  refund  of  personal  contributions  with  interest  with  the  following 
options;  1)  receive  the  refund  in  cash;  or,  2)  transfer  the  refund  to  a  personal 
RRSP;  or,  3)  leave  the  contributions  in  the  Plan  for  a  maximum  of  3  years. 


e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  Plan. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting. 

b)  Investments 

Investments  are  carried  at  their  quoted  market  value. 

c)  Recognition  of  Investment  Transactions 

ii)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over  the  terms 
of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are  recognized 
in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of  acquisition 
adjusted  by  the  amortization  of  discounts  and  premiums  for  long-term  bonds 
and  by  income  attributed  for  units. 

iv)  Unrealized  appreciation  or  depreciation  is  the  change  during  the  year  between 
the  adjusted  cost  and  market  value  of  the  investments  and  last  year's  difference. 


3.  CHANGES  IN  ACCOUNTING  POLICIES 

Effective  this  fiscal  year,  investments  are  carried  at  their  quoted  market  value.  In 
previous  years,  units  in  the  money  market  instruments  were  recorded  at  cost  adjusted  by 
income  attributed  to  the  units. 


PUBLIC  ACCOUNTS  1991/92 


D  n 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


3.  CHANGES  IN  ACCOUNTING  POLICIES  (continued) 

Bonds  were  recorded  at  cost  adjusted  by  the  amortization  of  discounts  and  premiums  on 
!  a  constant  yield  basis  over  the  remaining  terms  of  the  investments.  Realized  gains  and 

losses  on  disposal  of  bonds  were  deferred  and  amortized  on  a  straight  line  basis  over  the 
lesser  of  the  remaining  terms  of  the  investments  or  twenty  years  and  are  now 
recognized  in  the  year  of  disposal. 

These  new  accounting  policies  have  been  applied  retroactively  in  these  financial 
statements  and  the  prior  years'  results  have  been  restated.  The  effect  of  these  changes 
j  has  been  as  follows: 

(a)  Income  from  Investments: 

I  $  Thousands 

\  Increase/(Decrease) 


1989  and  prior  years 

$  14,766 

1990 

(17,675) 

1991 

40,442 

(b)  Net  Assets  at  beginning  of  the  year: 

1991 

1990 

($  Thousands) 

Net  Assets  at  beginning  of  year 

as  previously  reported 

$883,133 

$828,011 

Adjustments  for  the  effect  of  the  changes 

in  accounting  policies: 

change  to  market  valuation  of  investments 

(13,962  ) 

18 

change  in  timing  of  recognition  of  realized 

gains  and  losses 

(3,545  ) 

150 

Net  Assets  at  beginning  of  year 

as  restated 

$865,626 

$828,179 

INVESTMENTS 

1991 

1990 

Market  Adjusted 

Market 

Adjusted 

Value 

Cost 

Value 

Cost 

($  Thousands) 

Money  market  instruments  $335,566 

$334,207 

$279,140 

$278,829 

Bonds  291,763 

271,090 

508,603 

518,387 

Equities  319,308 

314,867 

48,497 

52,986 

Morteaees  8 

2 

78 

78 

$946,645 

$920,166 

$836,318 

$850,280 

D  12 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


4.  INVESTMENTS  (continued) 

a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British 
Columbia  Pooled  Investment  Portfolios.  The  funds  are  invested  mainly  in 
Canadian  money  market  securities  with  terms  less  than  one  year. 

b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or 
municipal  governments  with  initial  terms  in  excess  of  one  year. 

c)  Equities 

Equities  consist  of  units  held  in  the  Province  of  British  Columbia  Pooled  Indexed, 
Actively  Managed,  Managed  International  and  Passive  International  Investment 
Portfolios. 

d)  Mortgages 

Mortgages  consist  of  units  of  the  Montreal  Trust  Pooled  Mortgages  Fund. 

5.  INCOME  FROM  INVESTMENTS 

1991  1990 

($  Thousands) 


Bonds  and  Mortgages 

$  37,197 

$  56,070 

Equities 

8,785 

1,742 

Money  market  instruments 

Net  realized  gains  (losses) 

29,847 

30,057 

during  the  year 

7,771 

(6,648  ) 

Unrealized  appreciation  (depreciation) 

83,600 

81,221 

during  the  year 

40,442 

(13,981  ) 

$124,042 

$  67,240 

6.  BRITISH  COLUMBIA  TRANSIT  INDEXING  RECEIPTS 

Urban  passenger  transportation  services  were  transferred  from  B.C.  Hydro  to  British 
Columbia  Transit  (formerly  Metro  Transit  Operating  Company)  as  of  April  1,  1980.  As 
part  of  the  settlement,  British  Columbia  Transit  reimburses  the  Plan  for  the  cost  of  index 
pension  payments  made  to  former  urban  passenger  transportation  services  contributors 
granted  pensions  after  separation  and  paid  by  the  Plan. 


PUBI.IC  ACCOUNTS  1991/92 


D 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 

7.  PRIVATIZATIONS 

As  a  result  of  the  sale  of  the  gas  and  rail  businesses  of  B.C.  Hydro  in  1988,  and  Westech 
Information  Systems  in  September  1991,  certain  pension  options  were  made  available  to 
employees  who  were  transferred  from  B.C.  Hydro. 

During  the  year,  payments  relating  to  these  options  amounted  to  $6,397,155  (1990  - 
$12,756,683).  In  addition  to  these  pension  options,  the  privatized  employees  were 
allowed  to  continue  contributing  to  the  Plan  for  a  period  of  approximately  one  year 
subsequent  to  the  effective  dates  of  transfer. 


8.  ACCOUNT  TRANSFERS 

a)  Capitalized  Value  of  New  Pensions 

When  a  member  begins  receiving  pension  payments,  the  member's  and  B.C.  Hydro's 
contributions  plus  interest  are  transferred  from  the  Employee/Compulsory  Contributions 
Account  and  the  Balance  of  Fund  Account  to  the  Pension  Account.  The  capitalized 
value  of  new  pensions  granted  during  the  year  was  $1 1,883,274  (1990  -$7,372,918). 

b)  Excess  Interest 

Excess  interest  is  the  income  earned  on  investments  held  in  the  Plan  for  the  payment  of 
basic  and  index  pensions  and  which  is  in  excess  of  the  income  calculated  using  the 
investment  returns  assumed  by  the  Actuary.  The  excess  interest  transferred  from  the 
Balance  of  Fund  Account  to  the  Index  Reserve  Account  during  the  year  was 
$11,1 70,203  ( 1 990  -  $  1 1 , 1 43,452). 

c)  Capitalized  Value  of  Index  Increases 

At  the  beginning  of  the  year,  $16,878,386  (1990  -  $18,778,651),  being  the  capitalized 
value  of  the  1991  index  increases,  was  transferred  from  the  Balance  of  Fund  Account  to 
the  Index  Pension  Account.  At  the  end  of  the  year,  $22,343,552  (1990  -  $16,878,386), 
being  the  capitalized  value  of  the  1992  index  increases,  was  transferred  from  the  Index 
Reserve  Account  to  the  Balance  of  Fund  Account. 


9.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  present  value  of  accrued  pension  benefits  was  determined  using  the  projected 
benefit  method  pro  rated  on  service.  An  actuarial  valuation  was  made  as  of  December 
31,  1991  by  William  M.  Mercer  Limited,  a  firm  of  consulting  actuaries.  The  prior  year's 
figures  are  based  on  an  actuarial  valuation  made  as  of  December  31,  1990. 


D  14 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


9.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 

The  actuarial  present  value  of  benefits  and  the  principal  components  of  changes  in  the 
actuarial  present  value  during  the  year,  were  as  follows: 


December  3 1 

December  3 1 

1991 

1990 

Actuarial  present  value  of  accrued 
pension  benefits  at  beginning  of  year 

($  Thousands) 

$861,200 

$797,300 

Changes  in  actuarial  assumptions 

- 

100 

Experience  gains  and  losses 

4,600 

8,700 

Interest  accrued  on  benefits 

62,500 

57,100 

Benefits  accrued 

37,600 

43,700 

Benefits  paid 

(56,800  ) 

(73,000  ) 

Benefit  improvements 

- 

27,300 

Actuarial  present  value  of  accrued 
pension  benefits  at  end  of  year 

$909,100 

$861,200 

The  assumptions  used  in  determining  the  actuarial  value  of  accrued  pension  benefits 
were  developed  by  reference  to  expected  long-term  market  conditions.  Significant  long¬ 
term  actuarial  assumptions  used  in  the  valuation  were: 


1991 

1990 

Asset  rate  of  return 

7.5% 

7.5% 

Salary  escalation  rate 

5.5% 

5.5% 

The  actuarial  value  of  net  assets  available  for  benefits  is  based  on  a  five  year  averaging 
method  (consistent  with  assumptions  underlying  the  valuation  of  the  accrued  pension 
benefits).  Under  this  method  the  value  used  in  the  valuation  of  Canadian  and  foreign 
equities  is  equal  to  the  market  value,  adjusted  according  to  the  relative  position  of  the 
asset  class  index  value  at  the  valuation  date  compared  to  its  5-year  trend. 

The  value  for  the  bonds  is  equal  to  its  market  value,  adjusted  according  to  the  relative 
position  of  the  Scotia  McLeod  Universe  bond  index's  value  at  the  valuation  date 
compared  to  its  5-year  average  value.  In  the  previous  valuation,  an  unadjusted  market 
value  method  was  used. 


PUBLIC  ACCOUNTS  1991/92 


D  15 


BRITISH  COLUMBIA  HYDRO  AND  POWER  AUTHORITY  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


9.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 
The  actuarial  value  of  net  assets  used  in  the  valuation  were: 


December  3 1  December  3 1 

1991  1990 


Market  value  of  net  assets 
available  for  benefits 

($  'Fhousands) 

$954,366 

$865,626 

Market  value  changes  not  reflected 
in  actuarial  value  of  net  assets 

(21,766  ) 

8,474 

Actuarial  value  of  net  assets 
available  for  benefits 

932,600 

874,100 

Present  value  of  fliture  indexing 
recoverable  from  B.C.  Transit 

4,800 

4,600 

Total  Assets 

$937,400 

$878,700 

10.  FUNDING  POLICY 

An  actuarial  valuation  is  undertaken  to  determine  the  plan  sponsors  and  contributor 
contribution  rates.  These  contribution  rates  calculated  by  the  Actuary  were  determined 
under  an"accrued  benefit"  funding  method. 

The  most  recent  actuarial  valuation  for  funding  purposes  prepared  by  William  M. 
Mercer  Limited  as  of  December  31,  1991  disclosed  a  funding  excess  of  $28,300,000 
compared  to  $17,500,000  as  at  December  31,  1990,  the  date  of  the  previous  valuation. 

11.  COMPARATIVE  FIGURES 

Certain  1990  figures  have  been  reclassified  in  order  to  conform  with  the  financial 
statement  presentation  adopted  in  1991. 


D  16 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  Rail  Ltd.  Pension  Plan 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax (604) 387-1230 


To  the  Directors,  BC  Rail  Ltd.,  and 

To  the  Superannuation  Commissioner,  Trustee: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  BC  Rail  Ltd. 
Pension  Plan  as  at  December  31,  1991  and  the  statement  of  changes  in  net  assets 
available  for  benefits  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Superannuation  Commission's  management.  My  responsibility  is  to 
express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  Plan  as  at  December  31,  1991  and  the  results  of  its  operations 
and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
March  27, 1992 


PUBLIC  ACCOUNTS  1991/92 


D  17 


BC  RAIL  LTD.  PENSION  PLAN 
SPONSOR’S  REPORT 


I  am  pleased  to  add  my  comments  to  this  fifty-first  annual  report  of  the  BC  Rail  Ltd. 
Pension  Plan. 

As  pension  entitlement  forms  an  important  part  of  every  employee's  compensation 
package,  investment  and  administration  of  the  funds  supporting  that  entitlement  should  be 
of  interest  to  both  plan  members  and  pensioners.  The  attached  financial  statements, 
reports  and  supporting  schedules  provide  a  great  deal  of  information.  I  believe  the 
material  will  be  of  interest  and  encourage  you,  if  you  have  any  questions,  to  contact  your 
Pension  Committee  representatives. 

BC  Rail's  Board  of  Directors,  on  the  advice  of  management,  initiated  a  number  of 
improvements  during  1991; 

-  to  allow  terminating  members  the  additional  option  of  transferring  150%  of 
their  required  contributions  with  interest  (or  the  commuted  value  of  their 
pension  benefit,  if  greater)  to  a  locked-in  Registered  Retirement  Savings 
Plan  which  must  be  used  at  retirement  to  purchase  retirement  income; 

-  to  allow  reduced  early  retirement  at  age  55  with  five  years  of  pensionable  service; 

-  to  permit  widowed  spouses  of  members  who  are  of  pensionable  age  but 
who  die  before  retirement  to  elect  to  receive  a  60%  spousal  pension; 

-  to  negotiate  reciprocal  pension  agreements  with  the  other  British  Columbia 
public  sector  pension  plans; 

-  to  provide  the  same  conditions  for  purchasing  pensionable  service  to 
employees  who  are  absent  because  of  work-related  injuries  as  are  available 
to  employees  who  are  absent  because  of  non-occupational  injury  or  illness; 
and 

-  to  provide  an  on-going  enrolment  opportunity  to  employees  who  are  not 
members  of  the  Pension  Plan  because  they  were  hired  when  the  Plan  was 
not  compulsoiy  (i.e.,  before  1972)  or  because  they  withdrew  from  the  Plan 
in  1966. 

In  January  1991,  BC  Rail  introduced  an  Extended  Health  Care  Plan  for  retirees.  This  was 
the  result  of  both  a  pension  committee  recommendation  and  activity  at  collective 
bargaining  in  1990. 


D  18 


PROVINCE  OF  BRITISH  COLUMBIA 


The  pension  contribution  holiday  ended  in  June  1991.  Because  of  the  surplus  in  the  fund, 
both  employee  contributions  and  the  matching  employer  contributions  were  suspended  in 
January  1989.  Contributions  were  reinstated  at  half  the  normal  level  from  April  1,  1991, 
with  a  return  to  full  contribution  levels  as  of  July  1,  1991. 

As  of  January  1,  1991,  pensioners  received  a  4.2%  increase  (1992  -  5.4%)  -  equivalent  to 
the  rate  of  increase  in  the  Consumer  Price  Index.  At  the  beginning  of  1992,  the  reserve 
established  to  "top  up"  the  amount  available  for  indexing  in  years  when  excess  returns  do 
not  provide  full  inflation  adjustments  increased  to  10.2%. 

Notwithstanding  the  increased  benefits  and  the  pension  contribution  holiday,  the  excess  of 
assets  over  liabilities  at  year-end  remained  at  $24.5  million,  unchanged  from  July  3 1,  1990, 
the  date  of  the  previous  actuarial  valuation.  The  fund  continues  to  grow  in  1992,  although 
at  a  slower  pace  as  investment  yields  have  decreased. 

The  established  investment  policies  and  practices  have  ensured  and  will  continue  to  ensure 
that  the  fund  is  well  positioned  for  the  future. 

I  would  like  to  take  this  opportunity  to  thank  the  Pension  Committee  for  their  activities 
this  year,  and  to  commend  them  for  their  good  judgment  and  impartiality.  The  Committee 
members  are  John  Cook  (Superannuation  Commissioner  and  Pension  Committee 
Chairman);  Bill  Ferguson  and  Stan  Grott  (employee  representatives);  and  Leigh 
Sheardown  and  Leon  Beaulieu  (employer  representatives).  Leon,  a  company-appointed 
representative  on  the  Pension  Committee  for  many  years,  retired  from  the  service  of  BC 
Rail  at  the  end  of  1991  and  was  replaced  on  the  Committee  by  Peter  Rebagliati. 


President  and  Chief  Executive  Officer 
BC  Rail  Ltd. 


PUBLIC  ACCOUNTS  1991/92 


D  19 


BC  RAIL  LTD.  PENSION  PLAN 
PENSION  COMMITTEE’S  REPORT 


During  1991,  the  Pension  Committee  met  three  times.  Although  there  were  major  pension 
plan  improvements  implemented  in  April  of  1991,  the  Committee  had  done  the  majority  of  the 
preparatory  work  for  these  improvements  during  1990,  and  reported  this  activity  in  the  1990 
Annual  Report. 

The  Pension  Committee,  together  with  the  BC  Rail  Executive  Committee,  made  a 
recommendation  to  the  Board  of  Directors  in  1991  that  there  be  an  ad  hoc  increase  to  the 
pensions  of  retirees,  beneficiaries  of  deceased  retirees,  and  widows,  if  their  pensions  were 
granted  before  1982.  This  followed  a  study  of  loss  of  purchasing  power  for  those  pensioners 
who  retired  before  the  introduction  of  the  annual  excess-interest  indexing  provisions  of  the 
Plan  in  1982.  The  recommendation  was  approved  effective  January  1,  1992,  and  at  that  date 
122  pensioners  and  beneficiaries  received  an  increase  to  their  pensions.  The  amounts  of  the 
increases  varied  fi'om  3%  to  15%,  with  a  minimum  increase  of  $100  per  month  for  retirees  (or 
their  beneficiaries)  who  had  completed  10  or  more  years  of  service  before  retirement. 

Also  during  the  year.  Pension  Committee  reviewed  draft  legislation  pertaining  to  a  Pension 
Benefits  Standards  Act  for  British  Columbia.  The  Act  will  be  effective  on  January  1,  1993. 
There  will  be  fijrther  Committee  activity  in  1992  with  respect  to  the  amendments  which  may 
be  required  to  the  Pension  Plan  to  comply  with  this  legislation. 

Leon  Beaulieu,  a  company-appointed  representative  on  the  Pension  Committee  for  many 
years,  retired  from  the  service  of  BC  Rail  at  the  end  of  1991.  The  Committee  wishes  to  thank 
Mr.  Beaulieu  for  his  significant  contribution  to  Committee  activities  during  his  tenure.  In 
1992,  Peter  Rebagliati  will  replace  Mr.  Beaulieu  on  the  Committee. 


John  W.  Cook,  F.C.I.A. 
Chairman 


D  20 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD  PENSION  PLAN 
TRUSTEE’S  REPORT 


As  sponsor  of  the  Pension  Plan,  BC  Rail  is  responsible  for  determining  the  eligible  asset 
classes  and  the  mix  of  asset  classes  for  investment  purposes. 

In  late  1989,  BC  Rail  requested  that  the  Trustee  of  the  BC  Rail  Ltd.  Pension  Fund  and  the 
Minister  of  Finance  and  Corporate  Relations  as  agent  for  the  Trustee  recommend  to  the 
Lieutenant  Governor  in  Council  that  a  regulation  be  enacted  pursuant  to  Section  36(6)  of  the 
Financial  Administration  Act  to  permit  investment  diversification  of  the  Fund.  Such  an  Order 
in  Council  was  enacted  on  December  29,  1989. 

On  BC  Rail's  instructions,  a  memorandum  was  signed  between  the  Trustee  and  the  Minister 
which  specified  that  the  investment  of  the  Fund  should  be  as  follows: 

Money  market  securities 
a  minimum  of  15%  of  the  book  value  of  the  Fund 
Government  and  Canadian  corporate  bonds  and  debentures 
a  minimum  of  25%  of  the  book  value  of  the  Fund 
Canadian  Equities 

a  maximum  of  40%  of  the  book  value  of  the  Fund 
Canadian  income-producing  real  estate  and  mortgages 
a  maximum  of  10%  of  the  book  value  of  the  Fund 
Non-Canadian  investments 
a  maximum  of  10%  of  the  book  value  of  the  Fund. 

The  decision  on  asset  mix  was  based  on  the  results  of  an  independent  study  and  chosen  to 
increase  the  benefits  of  investment  diversification.  Periodic  reviews  will  be  undertaken  and,  as 
a  result,  the  percentages  of  investments  held  in  each  class  may  vary  in  the  future. 

As  at  December  31,  1991,  the  Fund  was  invested  in  accordance  with  regulations. 


h 

Trustee 


PUBLIC  ACCOUNTS  1991/92 


D  21 


WILLIAM  M. 

MERCER 

iiMirio 


5  May  1992 


B.C.  Rail  Ltd. 


i|  We  have  conducted  an  actuarial  valuation  of  the  BC  Rail  Ltd.  Pension  Plan  as  of 

j  31  December  1991. 

I  As  of  31  December  1991,  the  valuation  revealed  an  actuarial  liability  of  $238.4  million 

and  a  funding  excess  of  $24.5  million.  The  annual  cost  of  benefits  was  estimated  to  be  $12.7 
S  million.  The  next  actuarial  valuation  should  be  conducted  no  later  than  31  December  1994. 

I  In  our  opinion: 

(a)  the  data  on  which  the  valuation  was  based  were  sufficient  and  reliable  for  the 
purposes  of  the  valuation; 


(b)  the  assumptions  used  were  adequate  and  appropriate  for  the  purposes  of  the 
valuation;  and 


^  (c)  the  methods  employed  in  the  valuation  were  consistent  with  sound  actuarial 

principles. 

The  valuation  was  prepared  in  accordance  with  the  Recommendations  adopted  by 
j  the  Canadian  Institute  of  Actuaries  for  the  Valuation  of  Pension  Plans. 


!  HARRY  M.  SATANOVE 

FeUow  of  the  Canadian 
Institute  of  Actuaries 
I  Fellow  of  the  Society 
of  Actuaries 

ii. 


Institute  of  Actuaries 
Fellow  of  the  Society 
of  Actuaries 


D  22 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD.  PENSION  PLAN 

ADMINISTRATOR’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Commission  is  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  BC  Rail  Ltd.  Pension  Plan's  financial  statements  in 
accordance  with  generally  accepted  accounting  principles,  and  for  the  financial  information 
included  in  the  Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  BC  Rail  Ltd.  Pension  Plan's  financial  statements  have  been  examined  by  the  OfiBce  of 
the  Auditor  General  of  British  Columbia.  Their  examination  was  made  in  accordance  with 
generally  accepted  auditing  standards  which  included  a  review  of  the  Superannuation 
Commission's  internal  controls  to  establish  a  basis  for  determining  the  nature,  timing,  and 
extent  of  audit  tests  to  be  applied.  Their  report  outlines  the  nature  of  their  examination 
and  their  opinion  on  the  financial  statements  of  the  BC  Rail  Ltd.  Pension  Plan. 


JOffiSl  W.  COOK,  F.C.I.A. 
Superannuation  Commissioner,  Trustee 


JAmSI,  C.M.A. 
Xctine  Directc 


cting  Di^ctor,  Finance,  Superannuation  Commission 


PUBLIC  ACCOUNTS  1991/92 


D  23 


BC  RAIL  LTD.  PENSION  PLAN 

STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 


December  3 1 

1991 

1990 

($  Thousands) 

ASSETS 

Investments  (Note  3) 

Money  market  instruments 

$  38,441 

$  62,383 

Bonds 

99,447 

122,148 

Equities 

119,634 

48,261 

Real  Estate 

9,491 

- 

267,013 

232,792 

Receivables 

Members'  contributions 

499 

7 

Employer's  contributions 

543 

39 

Accrued  interest  and  dividends 

2,369 

2,845 

3,411 

2,891 

Cash 

82 

79 

Total  Assets 

270,506 

235,762 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

101 

214 

Due  to  brokers 

44 

1,989 

Total  Liabilities 

145 

2,203 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

$270,361 

$233,559 

The  five  accompanying  notes  are  an  integral  part  of  the  financial  statements. 


W 


W.  COOK,  F.C.I.A. 


Superannuation  Commissioner 
Trustee 


[,  C.M.A. 

ng  Dipe^r,  Finance 
ration  Commission 


D  24 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD.  PENSION  PLAN 

STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVAILABLE  FOR  BENEFITS 


For  the  years  ended  December  3 1 

1991 

1990 

($  Thousands) 

INCREASE  IN  ASSETS 

Investment  income 

Interest 

$  15,813 

$  22,817 

Dividends 

3,526 

1,065 

Real  Estate 

248 

- 

Gains  (losses)  on  sale  of  investments 

3,019 

(1,992) 

22,606 

21,890 

Unrealized  appreciation/ (depreciation) 
during  the  year 

14,311 

(1,544) 

36,917 

20,346 

Contributions 

Members' 

Current 

3,427 

63 

Arrears  and  purchase  of  service 

16 

11 

Voluntary 

28 

37 

3,471 

111 

Employer's 

Current 

3,427 

63 

Arrears  and  purchase  of  service 

11 

9 

3,438 

72 

TOTAL  INCREASE  IN  ASSETS 

43,826 

20,529 

DECREASE  IN  ASSETS 

Pension  benefits  paid 

5,683 

4,928 

Refund  of  contributions 

1,222 

2,108 

Investment  management  fees 

119 

111 

TOTAL  DECREASE  IN  ASSETS 

7,024 

7,147 

INCREASE  IN  NET  ASSETS 

36,802 

13,382 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

AT  BEGINNING  OF  YEAR 

233,559 

220,177 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

AT  END  OF  YEAR 

$270,361 

$233,559 

PUBLIC  ACCOUNTS  1991/92 


D  25 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  BC  RAIL  LTD.  PENSION  PLAN 

The  following  brief  description  of  the  Plan  is  provided  for  general  information  only.  For 
more  complete  information,  reference  should  be  made  to  the  Plan  document. 

a)  General 

The  Plan  is  a  contributory  defined  benefit  pension  plan.  All  eligible  employees  are 
required  to  enroll. 

b)  Contributions 

Members  contribute  to  the  Plan  4.5%  of  salary  up  to  the  Canada  Pension  Plan  earnings 
ceiling  and  6%  of  salary  above  that  ceiling.  No  contributions  are  required  after 
completion  of  35  years  of  pensionable  service,  or  while  the  member  is  on  an  approved 
long  term  disability  absence.  The  employer  makes  contributions  on  the  recommendation 
of  an  independent  Actuary;  however,  the  employer  contribution  each  month  cannot  be 
less  than  the  member's  required  contributions. 

A  contribution  holiday  was  initially  instituted  for  the  period  January  1,  1989  through 
March  31,  1990  and  was  subsequently  extended  to  June  30,  1991.  Members  and  the 
employer  each  contributed  $1  per  pay  period  to  the  Plan  up  to  March  31,  1991  and  one- 
half  contributions  from  April  1,  1991  to  June  30,  1991.  As  of  July  1,  1991 
contributions  resumed  in  full. 

c)  Retirement  Benefits 

Members  who  have  either  reached  age  65,  or  reached  age  60  with  at  least  25  years  of 
pensionable  service,  or  reached  age  55  with  at  least  30  years  of  pensionable  service,  are 
eligible  for  unreduced  pension  benefits.  All  other  retiring  members  have  a  reduction 
formula  applied  to  their  pensions. 

A  member  retiring  on  an  unreduced  pension  receives  an  annual  lifetime  pension  of  2% 
of  the  member's  best  5-year  average  earnings  multiplied  by  years  of  pensionable  service 
up  to  a  maximum  of  35  years  or  70%  of  the  member's  best  5-year  average  earnings.  At 
age  65,  or  date  of  death,  if  earlier,  there  is  a  reduction  in  the  formula  as  a  result  of 
integration  with  the  Canada  Pension  Plan. 

Increases  to  pension  payments  are  provided  each  January  1st  in  accordance  with  the 
excess  interest  indexing  provisions  of  the  Plan.  These  increases  relate  to  the  rates  of 
return  of  the  Plan  and  the  annual  increase  in  the  Consumer  Price  Index  (CPI)  as  at  the 
previous  September  30th. 


D  26 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  BC  RAIL  LTD.  PENSION  PLAN  (Continued) 

At  January  1,  1991,  pensioners  received  a  full  CPI  increase  of  4.2%  (1990  -  5.2%).  A 
full  CPI  increase  of  5.4%  will  be  provided  at  January  1,  1992.  In  addition,  at  January  1, 
1992,  there  will  be  an  ad-hoc  increase  to  the  pensions  of  retirees,  beneficiaries  of 
deceased  retirees,  and  widows,  if  their  pensions  were  granted  before  1982.  This 
increase  will  vary  from  3%  to  15%,  depending  on  the  year  in  which  the  pension  was  first 
granted,  and  will  be  related  to  increases  in  the  CPI  before  the  introduction  of  excess- 
interest  indexing  in  1982.  The  minimum  increase  for  those  retirees  who  had  completed 
ten  or  more  years  of  pensionable  service  before  retirement,  or  for  their  beneficiaries  or 
widows,  will  be  $  1 00  per  month. 

An  "indexing  reserve"  was  established  effective  January  1,  1990.  This  reserve  is 
increased  in  years  when  the  Plan's  excess  returns  are  more  than  that  required  to  provide 
full  inflation  adjustments  or  decreased  to  "top  up"  the  amount  available  for  indexing  in 
years  when  the  excess  returns  do  not  provide  full  inflation  adjustments.  After  the 
application  of  the  5.4%  indexing  adjustment,  the  reserve  at  January  1,  1992  will  be 
sufficient  to  pay  fiiture  indexing  adjustments  of  10.2%  (1991  -  9.6%).  The  actuarial 
valuation  of  this  reserve  as  of  January  1,  1992  is  $7,600,000  (July  31,  1990  - 
$5,200,000)  and  is  included  as  an  obligation  for  pension  benefits  as  set  out  in  note  4. 

d)  Termination  Benefits 

Terminating  members  who  have  completed  five  or  more  years  of  pensionable  service 
may  choose  to  leave  their  contributions  on  deposit  and  receive  a  deferred  pension,  to 
obtain  a  refund  of  their  personal  contributions  with  interest,  or  to  transfer  to  a  locked-in 
RRSP  an  amount  equal  to  the  greater  of  the  commuted  value  of  their  pension  and  150% 
of  their  personal  contributions  with  interest. 

e)  Pre-Retirement  Death  Benefits 

The  beneficiary  of  a  member  .who  dies  before  retirement  receives  a  lump-sum  refiind 
equal  to  two  times  the  deceased  member's  contributions  with  interest.  If  the  deceased 
member  was  eligible  to  retire  immediately  before  his  or  her  death,  a  beneficiaiy  who  is 
the  widowed  spouse  of  the  deceased  member  may  elect  instead  to  receive  a  pension 
calculated  as  if  the  member  had  retired  and  elected  a  60%  joint  and  last  survivor 
pension. 

f)  Post-Retirement  Death  Benefits 

There  are  no  post-retirement  death  benefits  available  under  the  Plan  unless  a  member 
elects  at  retirement  to  receive  an  optional  form  of  pension.  The  options  available  are  a 
pension  guaranteed  for  five,  ten,  or  fifteen  years,  or  a  pension  which  continues  in  full  or 
in  one-half  the  full  amount  to  the  pensioner's  beneficiary  in  the  event  of  the  pensioner's 
death.  The  amount  of  the  initial  optional  pension  is  an  actuarial  equivalent  of  the 
normal  form  of  pension  described  in  (c)  above. 


PUBLIC  ACCOUNTS  1991/92 


D  27 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  BC  RAIL  LTD.  PENSION  PLAN  (Continued) 
g)  Administrative,  Actuarial  and  Medical  Plan  Expenses 

Administrative  and  actuarial  expenses  of  the  Plan  are  paid  by  the  employer.  For  the  year 
ended  December  31,  1991  this  amounted  to  $249,165  (1990  -  $260,689).  For  ease  in 
administration,  the  medical  premiums  for  pensioners  are  paid  from  the  Plan.  BC  Rail 
Ltd.  then  reimburses  the  amount  of  the  premium  to  the  Plan.  For  the  year  ended 
December  31,  1991  this  amounted  to  $224,774  (1990  -  $183,842). 

(h)  Income  Taxes 

The  Plan  is  a  Registered  Pension  Plan  as  defined  in  the  Income  Tax  Act  (Canada)  and  is 
not  subject  to  income  taxes. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting. 

b)  Investments 

Investments  are  shown  at  their  market  value. 

c)  Recognition  of  Investment  Transactions 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over  the 
terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are 
recognized  in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of 
acquisition  adjusted  by  the  amortization  of  discounts  and  premiums  for  bonds 
and  by  income  attributed  for  units. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between  the 
current  year's  difference  between  the  adjusted  cost  and  market  value  of 
investment  and  last  year's  difference. 


D  28 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


3.  INVESTMENTS 


1991  1990 


Market 

Value 

Adjusted  Market 

Cost  Value 

Adjusted 

Cost 

($  Thousands) 

Money  market  instruments 

$38,441 

$38,312 

$62,383 

$62,253 

Bonds 

99,447 

92,130 

122,148 

123,654 

Equities 

119,634 

114,951 

48,261 

49,065 

Real  Estate 

9,491 

9,488 

- 

- 

$267,013 

$254,881 

$232,792 

$234,972 

a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British  Columbia 
Pooled  Investment  Portfolios.  There  are  two  funds  which  invest  mainly  in  Canadian 
money  market  securities  and  have  terms  less  than  one  year. 

b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or  municipal 
governments  with  initial  terms  in  excess  of  one  year. 

c)  Equities 

Equities  consist  of  units  held  in  the  Province  of  British  Columbia  Pooled  Indexed, 
Actively  Managed,  Managed  International  and  Passive  International  Investment 
Portfolios. 

d)  Real  Estate 

Real  Estate  consists  of  units  held  in  the  Province  of  British  Columbia  Real  Estate 
Portfolio  Pool.  This  fund  has  invested  primarily  in  Western  Canadian  properties.  Real 
Estate  is  recorded  at  appraised  values. 


4.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  actuarial  present  value  of  accrued  pension  benefits  and  the  principal  components  of 
changes  in  the  actuarial  present  values  during  the  period  were  determined  using  the 
projected  benefit  method.  Actuarial  valuations  were  made  as  of  January  1,  1990  by  The 
Alexander  Consulting  Group,  consulting  actuaries,  and  as  of  July  31,  1990  and 
December  31,  1991  by  William  M.  Mercer  Ltd.,  consulting  actuaries. 


PUBLIC  ACCOUNTS  1991/92 


D  29 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


4.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 

The  actuarial  present  value  of  accrued  pension  benefits  as  at  December  31,  1990,  and 
the  changes  in  that  year,  were  extrapolated  from  these  three  valuations  for  comparative 
purposes  by  William  M.  Mercer  Ltd. 


December  3 1  December  3 1 

1991 

1990 

($  Thousands) 

Actuarial  present  value  of  accrued 

pension  benefits  at  beginning  of  the  year 

$205,400 

$181,800 

Changes  in  actuarial  assumptions 

_ 

2,300 

Experience  gains  and  losses 

5,900 

(1,200  ) 

Interest  accrued  on  benefits 

16,400 

16,700 

Benefits  accrued 

12,400 

12,800 

Benefits  paid 

(7,000  ) 

(7,000  ) 

Benefit  improvements 

5,300 

- 

Actuarial  present  value  of  accrued 

pension  benefits  at  end  of  year 

$238,400 

$205,400 

Significant  long-term  actuarial  assumptions  used  in  the  valuation  were: 

1991 

1990 

Asset  rate  of  return  8.0% 

8.0% 

Salary  escalation  rate  6.0% 

6.0% 

In  addition  there  is  a  merit  and  promotion  scale  which  varies  by  age,  starting  at  3.3% 
and  declining  to  minus  0.7%. 

The  actuarial  value  of  net  assets  available  for  benefits  is  based  on  a  five  year  averaging 
method  (consistent  with  assumptions  underlying  the  valuation  of  the  accrued  pension 
benefits).  Under  this  method  the  value  used  in  the  valuation  of  Canadian  and  foreign 
equities  is  equal  to  the  market  value,  adjusted  according  to  the  relative  position  of  the 
asset  class  index  value  at  the  valuation  date  compared  to  its  5 -year  trend. 

The  value  for  the  bonds  is  equal  to  its  market  value,  adjusted  according  to  the  relative 
position  of  the  Scotia  McLeod  Universe  bond  index's  value  at  the  valuation  date 
compared  to  its  5-year  average  value.  In  the  previous  valuation,  an  unadjusted  market 
value  method  was  used. 


D  30 


PROVINCE  OF  BRITISH  COLUMBIA 


BC  RAIL  LTD.  PENSION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


4.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 


The  actuarial  values  of  net  assets  used  in  the  valuation  were: 


December  3 1  December  3 1 

1991 

1990 

Market  value  of  net  assets 

($  Thousands) 

available  for  benefits 

$270,361 

$233,559 

Market  value  changes  not  reflected 

in  actuarial  value  of  net  assets 

(7,461  ) 

- 

Actuarial  value  of  net  assets 

available  for  benefits 

$262,900 

$233,559 

5.  FUNDING  POLICY 

An  actuarial  valuation  is  undertaken  to  determine  the  plan  sponsors  and  contributor 
contribution  rates.  These  contribution  rates  calculated  by  the  Actuary  were  determined 
under  a  "accrued  benefit"  funding  method. 

The  most  recent  actuarial  valuation  for  funding  purposes  prepared  by  William  M. 
Mercer  Limited  as  of  December  31,  1991  disclosed  a  funding  excess  of  $24,500,000, 
compared  to  $24,500,000  as  at  July  31,  1990  the  date  of  the  previous  valuation. 


PUBLIC  ACCOUNTS  1991/92 


D  31 


College  Pension  Plan 


III 


Legislative  Assembly 
Province  of  British  Columbia 


AUDITOR  GENERAL 


8  Bastion  Square 
Victoria 

British  Columbia 
V8V  1X4 

Telephone:  (604)  387-6803 
Fax:  (604)  387-1230 


AUDITOR'S  REPORT 


To  the  Superannuation  Commissioner,  and 

To  the  Minister  of  Government  Services, 
Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  College 
Pension  Plan  as  at  August  31,  1991  and  the  statement  of  changes  in  net  assets 
available  for  benefits  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Superannuation  Commission's  management-  My  responsibility 
is  to  express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  weU 
as  evaluating  the  overall  financial  statement  presentation. 

In  my  opinion,  these  financial  statements  present  fairly,  in  aU  material  respects, 
the  financial  position  of  the  Plan  as  at  August  31,  1991  and  the  results  of  its 
operations'  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  F.C.A. 
Auditor  General 


Victoria,  British  Columbia 
January  17,  1992 


D  32 


PROVINCE  OF  BRITISH  COLUMBIA 


Province  of 
British  Columbia 


Superannuation 

Commission 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone:  (604)  387-1002 
Facsimile:  (604)  387-4199 


OFFICE  OF  THE 
COMMISSIONER 


IN  REPLY  REFER  TO 


COLLEGE  PENSION  PLAN 


MANAGEMENT'S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Coninission  is  responsible  for  the 
preparation,  integrity  and  objectivity  of  the  College  Pension  Plan's  financial 
statements  in  accordance  with  the  generally  accepted  accounting  principles  and 
for  the  financial  information  included  in  the  Annual  Report. 

The  Superannuation  Corrmission  maintains  the  necessary  systems  of  internal 
control  to  provide  assurance  that  transactions  are  authorized,  assets  are 
safeguarded  and  that  proper  corporate  and  plan  member  records  are  maintained. 

The  College  Pension  Plan's  financial  statements  have  been  examined  by  the 
Office  of  the  Auditor  General  of  British  Columbia.  Their  examination  was  made 
in  accordance  with  generally  accepted  auditing  standards  which  included  a  review 
of  the  Superannuation  Conmission's  internal  controls  to  establish  a  basis  for 
determining  the  nature,  timing,  and  extent  of  audit  tests  to  be  applied.  Their 
report  outlines  the  nature  of  their  examination  and  their  opinion  on  the 
financial  statements  of  the  College  Pension  Plan. 


JOHN  W.  COOK,  F.C.I.A., 
Superannuation  Commissioner,  Trustee 


VICrdR-BAR5?IN,  C.A., 

Director,  Finance,  Superannuation  Commission 


January  17,  1992 


PUBLIC  ACCOUNTS  1991/92 


D  33 


COLLEGE  PENSION  PLAN 

STATEMENT  OF  NET  ASSETS  AVAIIABLE  FOR  BENEFITS 
(Dollars  in  Thousands) 


August  31  1991  1990 


ASSETS 

Investments  (Note  3) 

Money  market  instruments 

Bonds 

Equities 

$  94,957 

164,008 
76,340 

$  101,526 

155,616 
19,188 

335,305 

276,330 

Receivables 

Members'  contributions 

1,044 

924 

Errployers'  contributions 

1,043 

924 

Accrued  interest  and  dividends 

3,908 

4,595 

5,995 

6,443 

Cash 

110 

70 

Total  Assets 

341,410 

282,843 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

166 

132 

NET  ASSETS  AVAIIABLE  FOR  BENEFITS 

$  341,244 

$  282,711 

The  seven  acconpanying  notes  are  an 

integral  part  of 

these  financial 

statements . 


l/\/ 


JofW  W.  Cook,  F.C.I.A., 
Superannuation  Conmissioner 


Trustee 


Director,  Finance, 
Superannuation  Commission 


D  34 


PROVINCE  OF  BRITISH  COLUMBIA 


CX}LLEGE  PENSION  PLAN 

STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVMLABLE  FOR  BENEFITS 
(Dollars  in  Ihousands) 


Inflation 

Basic  Adjustment  _ TOTALS _ 

For  the  years  ended  August  31  Account  Account  1991  1990 


INCREASE  IN  ASSETS 

Investment  income  (Note  4) 

Income 

Unrealized  appreciation 
(depreciation)  during  the  year 

$  25,539 

12,902 

$  3,335 

390 

$  28,874 

13,292 

$  26,495 

(5,214) 

38,441 

3,725 

42,166 

21,281 

Contributions 

Meanbers' 

Current 

10,246 

931 

11,177 

9,589 

Arrears,  leaves  of  absence 

and  purchase  of  service 

120 

8 

128 

97 

10,366 

939 

11,305 

9,686 

Enployers ' 

Current 

10,247 

931 

11,178 

9,589 

Arrears,  leaves  of  absence 

and  purchase  of  service 

107 

8 

115 

114 

10,354 

939 

11,293 

9,703 

Transfers  from  other  funds 

986 

280 

1,266 

47 

Total  increase  in  assets 

60,147 

5,883 

66,030 

40,717 

DECREASE  IN  ASSETS 

Superannuation  allowance  payments 

Contributory 

4,726 

4,726 

4,151 

Inflation  adjustment  supplements 

973 

973 

804 

5,699 

- 

5,699 

4,955 

Refunds 

761 

103 

864 

626 

Transfer  to  other  funds 

399 

28 

427 

267 

Medical  Plan  premiums 

66 

- 

66 

61 

Administration  and  actuarial  fees 

284 

- 

284 

136 

Investment  management  fees 

140 

17 

157 

114 

Total  decrease  in  assets 

7,349 

148 

7,497 

6,159 

INCREASE  IN  NET  ASSETS 

BEFORE  TRANSFERS 

52,798 

5,735 

58,533 

34,558 

Account  transfers  (Note  5) 

357 

(357) 

INCREASE  IN  NET  ASSETS 

53,155 

5,378 

58,533 

34,558 

NET  ASSETS  AVMIABLE  FOR  BENEFITS 

AT  BEGINNING  OF  YEAR 

253,256 

29,455 

282,711 

248,153 

NET  ASSETS  AVZVIIABLE  FOR 

AT  END  OF  YEAR 

$306,411 

$  34,833 

$341,244 

$282,711 

PUBLIC  ACCOUNTS  1991/92 


COLLEGE  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  AUGUST  31,  1991 


D  3 


1.  DESCRIPTION  OF  THE  COLLEGE  PENSION  PIAN 

The  following  brief  description  of  the  Plan  is  provided  for  general 
information  only.  For  more  complete  information  about  the  Plan,  reference 
should  be  made  to  the  Pension  (College)  Act. 

a)  General 

The  Plan  is  a  defined  benefit  pension  plan  open  to  full-time  faculty  members 
and  senior  administrative  employees  of  a  British  Columbia  college  or  college 
council  and  to  other  college  faculty  members  in  British  Columbia  whose 
application  has  been  approved  by  the  employer. 

b)  Contributions 

Members  and  employers  each  contribute  to  the  Basic  Account  5%  of  pensionable 
salary  up  to  the  Canada  Pension  Plan's  Year's  Maximum  Pensionable  Earnings 
and  6  1/2%  on  pensionable  salary  above  that  amount.  They  also  each 
contribute  1/2%  of  pensionable  salary  to  the  Inflation  Adjustment  Account  to 
provide  for  the  payment  of  inflation  adjustment  supplements. 

c)  Retirement  Benefits 

Members  are  eligible  for  an  unreduced  pension  benefit  if  they  retire  at  age 
55  with  a  minimum  of  35  years  contributory  service,  at  age  60  with  a  minimum 
of  10  years  contributory  service  or  at  age  65.  A  reduced  pension  is 
available  at  age  55  with  a  minimum  of  10  years  contributory  service  and  at 
age  60  with  less  than  10  years  contributory  service. 

The  Plan  provides  for  a  pension  of  2%  of  the  highest  5-year  average  annual 
salary  for  each  year  of  pensionable  service,  to  a  maximum  of  35  years.  At 
age  65,  or  date  of  death  or  disability,  if  earlier,  there  is  a  reduction  in 
the  formula  as  a  result  of  integration  with  the  Canada  Pension  Plan. 

Increases  in  the  inflation  adjustment  supplements  are  provided  each  January 
1st  and  are  related  to  the  annual  increase  in  the  Consumer  Price  Index  (CPI) 
as  at  the  previous  September  30th.  The  increase  is  pro-rated  if  the 
capitalized  value  of  the  increase  exceeds  the  funds  available  in  the 
Inflation  Adjustment  Account.  As  there  were  sufficient  funds  available  at 
January  1,  1991,  a  full  CPI  increase  of  4.2%  (1990  -  5.2%)  to  the  basic 
lifetime  portion  of  the  contributory  superannuation  allowances  in  force  was 
provided.  Sufficient  funds  were  also  available  to  provide  a  full  CPI 
increase  of  5.4%  effective  January  1,  1992. 

d)  Termination  and  Portability  Benefits 

A  terminating  member  may  choose  between  leaving  accumulated  contributions  on 
deposit  or  obtaining  a  refund.  The  refund  includes  interest  credited. 
Members  who  leave  contributions  in  the  Fund  are  entitled  to  deferred  pension 
benefits.  Those  members  not  withdrawing  contributions  may  carry  certain 
pension  rights  to  other  pension  plans  that  have  portability  arrangements  with 
the  College  Pension  Plan.  New  members  may  also,  under  portability 
arrangements,  transfer  contributions  and  service  frcm  other  plans  to  increase 
pension  benefits  under  the  College  Pension  Plan. 


D  36 


PROVINCE  OF  BRITISH  COLUMBIA 


COLLEGE  PENSION  PLAN 

NOTTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  AUGUST  31,  1991 

1.  DESCRIPTION  OF  IHE  COLLEGE  PENSION  PLAN  (Continued) 

e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  Plan. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of 

accounting. 

b)  Investments 

Investments  are  shown  at  their  quoted  market  value. 

c)  Recognition  of  investment  transactions 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade- 
date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over 
the  terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and 
are  recognized  in  the  year  of  disposal.  Adjusted  cost  is  the 
average  cost  of  acquisition  adjusted  by  the  amortization  of 
discounts  and  premiums  for  long-term  investments  and  by  income 
attributed  for  units. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between 
the  current  year's  difference  between  the  adjusted  cost  and  market 
value  of  investments  and  last  year's  difference. 


3.  INVESIMENTS 


1991 

Market  Adjusted 

Value  Cost 


1990 

Market  Adjusted 

Value  Cost 


($  Thousands) 


Money  market  instruments 

Bonds 

Equities 


$  94,957 

164,008 
76.340 

$  335.305 


$  94,669 

161,880 
72.677 

$  329.226 


$  101,526 
155,616 
19.188 

$  276,330 


$  101,430 
161,975 
20.138 

$  283.543 


PUBLIC  ACCOUNTS  1991/92 


D  37 


COLLEGE  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  IHE  YEAR  ENDED  AUGUST  31,  1991 


3.  INVESTMENTS  (continued) 


(a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of 
British  Columbia  Pooled  Investment  Portfolios.  There  are  two  funds 
which  invest  mainly  in  Canadian  money  market  securities  and  have  terms 
less  than  one  year. 


(b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial 
or  municipal  governments  with  initial  terms  in  excess  of  one  year. 


(c)  Equities 

Equities  consist  of  units  held  in  the  Province  of  British  Columbia 
Pooled  Indexed  and  Actively  Managed  Investment  Portfolios .  These  funds 
invest  primarily  in  Canadian  equities  listed  on  the  Toronto  Stock 
Exchange . 


4.  INVESTMENT  INCOME 


1991 _  1990 

Inflation 


Basic 

Account 

Adjustment 

Account 

Total 

Total 

Money  market  instruments 

$  9,554 

($  Thousands) 

$  1,064  $  10,618 

$  10,512 

Bonds 

14,399 

2,124 

16,523 

16,991 

Equities 

2,040 

- 

2,040 

138 

Net  realized  (losses)  gains 
during  the  year 

f454) 

147 

(307) 

fl,146) 

$  25,539 

$  3,335  $ 

28,874 

$  26,495 

D  38 


PROVINCE  OF  BRITISH  COLUMBIA 


COLLEGE  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  TOE  YEAR  ENDED  AUGUST  31,  1991 


ACCCXJNT  TRANSFERS 

1991 

1990 

Basic 

Account 

Inflation 

Adjustment 

Account 

Basic 

Account 

Inflation 

Adjustment 

Account 

Clapitalized  value  of 

Inflation  adjustment 
supplements  granted 

$  1,920 

$  (1,920) 

$  1,879 

$  (1,879) 

Indexing  of  highest 
average  salary  for 
deferred  pensions 
granted 

60 

(60) 

81 

(81) 

Excess  interest 

(1,617) 

1,617 

(1,951) 

1,951 

Other 

(6) 

6 

(4) 

4 

$  357 

$  f357) 

$  5 

$  (5) 

The  excess  interest  is  the  income  that  is  earned  on  assets  held  in  the  Basic 
Account  in  respect  of  pensions  being  paid,  and  that  is  in  excess  of  incone 
calculated  using  the  interest  rate  assumed  by  the  Actuary. 


6.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  Canadian  Institute  of  Cliartered  Accountants  requires  under  Section  4100 
that  the  obligations  for  pension  benefits  be  disclosed  using  the  projected 
benefit  method,  which  is  the  actuarial  present  value  of  benefits  based  upon 
projected  final  average  earnings,  expected  to  be  paid  in  respect  of  service 
before  the  valuation  date.  Using  the  actuarial  valuation  made  as  of  August 
31,  1988  by  Eckler  Partners  Ltd.,  the  present  value  of  accumulated  benefits 
in  the  Basic  Account  was  $187,254,000  corrpared  to  $150,420,000  as  at  August 
31,  1985.  Assets  valued  at  market  totalled  $189,667,000  as  at  August  31, 
1988,  conpared  to  $117,304,000  as  at  August  31,  1985. 

A  conplete  description  of  the  principal  coiponents  of  the  change  in  the 
actuarial  present  value  for  accrued  benefits  between  August  31,  1985  and 
August  31,  1988  was  not  contained  in  the  1988  report  and  therefore  is  not 
presented  in  these  statements.  Further,  a  valuation  as  at  August  31,  1991 
is  currently  being  performed  but  has  not  been  cotpleted  in  time  for  these 
statements . 

The  assumptions  used  in  determining  the  actuarial  value  of  accrued  pension 
benefits  were  developed  by  reference  to  expected  long-term  market  trends. 
Significant  long-term  actuarial  assumptions  used  in  the  valuation  were: 


1988 

1985 

Asset  rate  of  return 

6.5% 

6.5% 

Salary  escalation  rate 

5.5% 

5.5% 

PUBLIC  ACCOUNTS  1991/92 


CQLLEX3E  PENSION  PIAN 

NOTTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  AUGUST  31,  1991 


D  B9 


7.  FUNDING  POLICY 

An  actuarial  valuation  is  undertaken  to  determine  the  plan  sponsors  and 
contributor  contribution  rates.  These  contribution  rates  calculated  by  the 
Actuary  were  determined  under  a  "level  contribution"  funding  ittsthod.  This 
method  expresses  employer  contributions  as  a  constant  percentage  of  future 
payrolls  that,  together  with  future  member  contributions  and  investment 
earnings,  will  finance  the  benefits  for  a  typical  new  entrant  to  the  plan 
and,  in  addition,  will  maintain  the  unfunded  liability  as  a  constant 
percentage  of  future  payrolls. 

The  most  recent  actuarial  valuation  for  funding  purposes  was  prepared  by 
Eckler  Partners  Ltd.  Actuaries  and  Consultants  as  of  August  31,  1988.  This 
valuation  disclosed  an  unfunded  liability  in  respect  of  basic  pension 
benefits  of  $29,814,000  as  at  August  31,  1988,  compared  to  $60,891,000  as  at 
August  31,  1985,  the  date  of  the  previous  valuation.  The  Actuary  recotimended 
that  the  statutory  Basic  Account  contribution  rates  be  increased  from  their 
current  combined  maximum  rate  of  13%  of  total  salaries  (see  note  lb)  to  a 
combined  maximum  rate  of  at  least  15.14%  of  total  salaries. 


D  40 


PROVINCE  OF  BRITISH  COLUMBIA 


Members  of  the  Legislative  Assembly  Superannuation  Account 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


AUDITOR'S  REPORT 


(604) 387-6803 
Fax  (604)  387-1230 


To  the  Superannuation  Commissioner,  Trustee, 

To  the  Minister  of  Government  Services,  Province  of  British  Columbia,  and 
To  the  Minister  of  Finance  and  Corporate  Relations,  Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  Members 
of  the  Legislative  Assembly  Superannuation  Account,  an  account  in  the  Ministry  of 
Finance  and  Corporate  Relations,  as  at  March  31,  1992  and  the  statement  of 
changes  in  net  assets  available  for  benefits  for  the  year  then  ended.  These  financial 
statements  are  the  responsibility  of  the  Superannuation  Commission's  management. 
My  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Account  as  at  March  31,  1992  and  the  changes  in  the 
account  balance  for  the  year  then  ended  in  accordance  with  the  accounting 
principles  described  in  note  3  to  the  financial  statements. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
August  21, 1992 


PUBLIC  ACCOUNTS  1991/92 


D  41 


OFFICE  OF  THE 
COMMISSIONER 


Province  of 
British  Columbia 


Superannuation 

Commission 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone:  (604)  387-1002 
Facsimile;  (604)  387-4199 


IN  REPLY  REFER  TO 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 

MANAGEMENT’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Commission  is  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  Members  of  the  Legislative  Assembly  Superannuation 
Account's  financial  statements  in  accordance  with  the  accounting  principles  described  in  note 
3  to  the  financial  statements  applied  on  a  basis  consistent  with  prior  years,  and  for  the  financial 
information  included  in  the  Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  Members  of  the  Legislative  Assembly  Superannuation  Account's  financial  statements  have 
been  examined  by  the  Office  of  the  Auditor  General  of  British  Columbia.  Their  report 
outlines  the  nature  of  their  examination  and  their  opinion  on  the  financial  statements  of  the 
Members  of  the  Legislative  Assembly  Superannuation  Account. 


Superannuation  Commissioner 


42 


PROVINCE  OF  BRITISH  COLUMBIA 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 
STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 
($  Thousands) 


March  31  1992  1991 


ASSETS 

Investments  (Note  4) 

Money  market  instruments 

Bonds 

$  2,656 

819 

$  2,294 
848 

3,475 

3,142 

Receivables 

Members'  contributions 

1 

7 

Employer's  contributions 

155 

130 

Due  fi’om  the  Province  of 

British  Columbia  (Note  6) 

6,417 

- 

Accrued  interest 

17 

18 

6,590 

155 

Cash 

133 

114 

Total  Assets 

10,198 

3,411 

LIABILITIES 

Due  to  Pubhc  Service  Superannuation 

Plan  (Note  6) 

9,225 

343 

9,225 

343 

NET  ASSETS  AVAILABLE  FOR  BENERTS 

$  973 

$  3,068 

The  seven  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


Superannuation  Commissioner 
Trustee 


Earry  .M.  A. 

'^Acting^^i^ctor,  Finance 
Superamiuation  Commission 


PUBLIC  ACCOUNTS  1991/92 


D  43 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 
STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

($  Thousands) 


For  the  years  ended  March  3 1_ 1992  1991 


INCREASE  IN  ASSETS 

Investment  Income 

Income  (Note  5) 

Unrealized  appreciation 
during  the  year  (Note  3) 

$  320 

23 

$  312 

119 

343 

431 

Contributions 

Members  of  the  Legislative  Assembly 

Current 

138 

166 

Past  service  (Note  2) 

98 

157 

236 

323 

Province  of  British  Columbia 

Current 

138 

166 

Past  service  (Note  2) 

98 

157 

Terminal  funding  on  allowances 

granted  (Note  6) 

6,417 

- 

6,653 

323 

TOTAL  INCREASE  IN  ASSETS 

7,232 

1,077 

DECREASE  IN  ASSETS 

Transfer  to  Public  Service 

Superannuation  Plan  (Note  6) 

9,247 

397 

Refunds 

80 

- 

TOTAL  DECREASE  IN  ASSETS 

9,327 

397 

INCREASE  IN  NET  ASSETS 

(2,095  ) 

680 

NET  ASSETS  AVAILABLE  FOR  BENEHTS 

AT  BEGINNING  OF  YEAR 

3,068 

2,388 

NET  ASSETS  AVAILABLE  FOR  BENEHTS 

AT  END  OF  YEAR 

$  973 

$3,068 

D  44 


PROVINCE  OF  BRITISH  COLUMBIA 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  THE  MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION 
ACCOUNT 

Under  Part  2  of  the  Legislative  Assembly  Allowances  and  Pension  Act,  the  Members  of 
the  Legislative  Assembly  Superannuation  Account  is  an  account  in  the  Ministry  of 
Finance  and  Corporate  Relations  of  the  Province  of  British  Columbia. 

The  Account  receives  contributions  from  the  Province  as  the  employer  and  from 
participating  members  who  are  elected  Members  of  the  Legislative  Assembly. 

When  a  member  is  granted  a  superannuation  allowance,  the  amount  required  to  provide 
his  or  her  future  pension  benefits  is  transferred  to  the  Public  Service  Superannuation 
Plan  and  monthly  contributory  allowances  are  paid  from  that  Plan.  The  Province 
provides  terminal  funding  if  the  amounts  available  in  the  Account  are  less  than  the 
capitalized  value  of  allowances  granted. 

Former  Members  receiving  an  allowance  who  are  re-elected  to  the  Legislature  cease  to 
receive  an  allowance  and  resume  contributing  to  the  Account.  In  addition,  an  amount 
equal  to  the  capitalized  value  of  their  superannuation  allowance  is  transferred  from  the 
Public  Service  Superannuation  Plan  to  the  Account. 


2.  DESCRIPTION  OF  THE  MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY 
PENSION  PLAN 

The  following  brief  description  of  the  plan  is  provided  for  general  information  only.  For 
more  complete  information,  reference  should  be  made  to  the  Legislative  Assembly 
Allowances  and  Pension  Act. 

a)  General 

The  Plan  is  a  defined  benefit  pension  plan  open  to  all  Members  of  the  Legislative 
Assembly. 

b)  Contributions 

Members  and  the  Province  each  contribute  to  the  Account  9%  of  salary  and  indemnities 
up  to  the  contribution  limit  provided  for  in  section  8(6)  of  the  Income  Tax  Act  (Canada) 
as  amended.  Members  may  contribute  to  the  Account  for  past  service  during  which  he 
was  a  Member  and  has  not  already  contributed. 

c)  Retirement  Benefits 

A  member  of  the  Plan  is  entitled  to  a  superannuation  allowance  upon  ceasing  to  be  a 
Member  after  having  served  seven  years  or  for  more  than  two  parliaments,  and  having 
attained  the  age  of  55  years  or  having  attained  an  age  plus  years  of  service  as  a  Member 
totalling  60  or  more  years. 


PUBLIC  ACCOUNTS  1991/92 


D  45 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  MARCH  31,  1992  


2.  DESCRIPTION  OF  THE  MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY 
PENSION  PLAN  (continued) 

c)  Retirement  Benefits  (continued) 

The  plan  provides  a  superannuation  allowance  of  5%  per  year  of  service,  up  to  a 
maximum  of  80%,  of  the  average  legislative  allowance,  special  allowance  and  ministerial 
salary  earned  in  the  highest  four  years  of  service  as  a  Member  and  as  a  Minister  or 
specified  office  holder. 

d)  Termination  Benefits 

A  member  of  the  plan  who  ceases  to  be  a  Member  may  choose  between  leaving 
accumulated  contributions  on  deposit  or  obtaining  a  refund.  The  refund  includes 
interest  credited.  Former  members  leaving  contributions  on  deposit  are  entitled,  if 
otherwise  eligible,  to  a  deferred  pension  benefit. 

e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  plan. 


3.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting.  They 
show  only  the  financial  position  of  the  Account  as  at  March  31,  1992  and  the  changes  in 
Account  balance  for  the  year  then  ended,  and  do  not  purport  to  show  the  adequacy  of 
the  Account  to  meet  the  obligations  of  the  Legislative  Assembly  Allowances  and 
Pension  Act. 

b)  Investments 

Investments  are  shown  at  their  quoted  market  value. 

c)  Recognition  of  investment  transactions 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over  the 
terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are 
recognized  in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of 
acquisition  adjusted  by  the  amortization  of  discounts  and  premiums. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between  the 
current  year's  difference  between  the  adjusted  cost  and  market  value  of 
investments  and  last  year's  difference. 


D  46 


PROVINCE  OF  BRITISH  COLUMBIA 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


4. 


INVESTMENTS 


Money  market  instruments 
Bonds 


1992  1991 


Market 

Value 

Adjusted 

Cost 

Market 

Value 

Adjusted 

Cost 

($  Thousands) 

$2,656 

$2,646 

$2,294 

$2,276 

819 

821 

848 

881 

$3,475 

$3,467 

$3,142 

$3,157 

a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British 
Columbia  Pooled  Investment  Portfolios.  There  are  two  funds  which  invest 
mainly  in  Canadian  money  market  securities  and  have  terms  less  than  one  year. 

b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or 
municipal  governments  with  initial  terms  in  excess  of  one  year. 


5.  INVESTMENT  INCOME 


1992  1991 


Money  market  instruments 

Bonds 

Net  realized  gains  (losses)  during  the  year 

($  Thousands) 
$233 

87 

$245 

91 

(24) 

$320 

$312 

TRANSFERS  TO  THE  PUBLIC  SERVICE  SUPERANNUATION  PLAN 

1992 

1991 

Unencumbered  amount  available 
for  allowances  granted 

Terminal  funding  on  allowances  granted 
(Due  from  Province  of  British  Columbia) 

($  Thousands) 

$2,765 

6,417 

$  307 

Total  capitalized  value  of 
allowances  granted 

9,182 

307 

Transfer  in  respect  of  Inflation 

Adjustment  contributions 

65 

90 

Total  Transfer 


$9,247 


$  397 


PUBLIC  ACCOUNTS  1991/92 


D  47 


MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY  SUPERANNUATION  ACCOUNT 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


6.  TRANSFERS  TO  THE  PUBLIC  SERVICE  SUPERANNUATION  PLAN 
(continued) 

As  at  the  year  end,  only  $22,589  (1991  -  $53,267)  had  been  transferred  to  the  Public 
Service  Superannuation  Plan,  leaving  a  balance  of  $9,224,535  (1991  -  $343,500)  still  to 
be  transferred. 

During  the  year  ended  March  31,  1992,  20  members  (1991-1)  were  granted  a 
superannuation  allowance. 

Under  the  Legislative  Assembly  Allowances  and  Pension  Act,  amounts  deducted  from 
members'  eligible  salaries  and  indemnities  to  secure  inflation  adjustment  supplements 
and  the  matching  payments  made  by  the  Province  are  transferable  once  a  year  from  the 
Account  to  the  Inflation  Adjustment  Account  maintained  in  the  Public  Service 
Superannuation  Plan,  from  which  the  supplementary  allowances  are  paid.  Any 
contributions  received  but  not  yet  transferred  is  included  in  the  amount  Due  to  Public 
Service  Superannuation  Plan. 


7.  ACTUARIAL  VALUATION 

An  actuarial  valuation  of  the  Account  is  not  required  by  the  Legislative  Assembly 
Allowances  and  Pension  Act  and  no  such  valuation  has  been  performed  to  date. 


D  48 


PROVINCE  OF  BRITISH  COLUMBIA 


Municipal  Superannuation  Plan 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax  (604)  387-1230 


To  the  Superannuation  Commissioner,  and 

To  the  Minister  of  Government  Services, 
Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  Municipal 
Superannuation  Plan  as  at  December  31,  1991  and  the  statement  of  changes  in  net 
assets  available  for  benefits  for  the  year  then  ended.  These  financial  statements  are 
the  responsibility  of  the  Superannuation  Commission's  management.  My 
responsibility  is  to  express  an  opinion  on  these  financial  statements  bcised  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Plan  as  at  December  31,  1991  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


Auditor  General 


Victoria,  British  Columbia 
June  24, 1992 


OFFICE  OF  THE 
COMMISSIONER 


Province  of 
British  Columbia 


PUBLIC  ACCOUNTS  1991/92 


Superannuation 

Commission 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone;  (604)  387-1002 
Facsimile;  (604)  387-4199 


D  49 


IN  REPLY  REFER  TO 


MUNICIPAL  SUPERANNUATION  PLAN 


MANAGEMENT’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 


The  management  of  the  Superannuation  Commission  is  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  Municipal  Superannuation  Plan's  financial  statements  in 
accordance  with  the  generally  accepted  accounting  principles  and  for  the  financial  information 
included  in  the  Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  Municipal  Superannuation  Plan's  financial  statements  have  been  examined  by  the  Office  of 
the  Auditor  General  of  British  Columbia.  Their  examination  was  made  in  accordance  with 
generally  accepted  auditing  standards  which  included  a  review  of  the  Superannuation 
Commission's  internal  controls  to  establish  a  basis  for  determining  the  nature,  timing,  and 
extent  of  audit  tests  to  be  applied.  Their  report  outlines  the  nature  of  their  examination  and 
their  opinion  on  the  financial  statements  of  the  Municipal  Superannuation  Plan. 


JbfmW.  Cook,  F.C.I.A. 
Superannuation  Commissioner 


L 


D  50 


PROVINCE  OF  BRITISH  COLUMBIA 


MUNICIPAL  SUPERANNUATION  PLAN 
STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 
($  Thousands) 


DECEMBERS! 

1991 

1990 

ASSETS 

Investments  (Note  3) 

Money  market  instruments 

$1,486,538 

$1,321,372 

Bonds 

3,593,500 

2,811,417 

5,080,038 

4,132,789 

Receivables 

Members'  contributions 

15,001 

14,206 

Enployers'  contributions 

13,388 

12,680 

Accrued  interest  and  dividends 

84,842 

68,450 

113,231 

95,336 

Cash 

1,043 

2,054 

Total  Assets 

5,194,312 

4,230,179 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

Due  to  brokers 

6,026 

24,610 

5,093 

Total  Liabilities 

30,636 

5,093 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

$5,163,676 

$4,225,086 

The  eight  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


w 


cl 


JolfefW.  Cook,  F.C.I.A., 
Superannuation  Commissioner 
Trustee 


.any  J^acp^C.M.A., 
Acting^6irector,  Finance 
Supecafmuation  Commission 


PUBLIC  ACCOUNTS  1991/92 


D  51 


MUNICIPAL  SUPERANNUATION  PLAN 
STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

(  S  Thousands) 

Retirement  Inflation 


For  the  years  ended  December  3 1 

Basic 

Account 

Annuity 

Account 

Adjustment 

Account 

TOTALS 

1991  1990 

INCREASE  IN  ASSETS 

Investment  Income 

Income  (Note  4) 

$426,172 

$12,896 

$50,398 

$489,466 

$408,099 

Unrealized  appreciation  (depreciation) 
during  the  year 

301,279 

17,758 

319,037 

(4,237 

727,451 

12,896 

68,156 

808,503 

403,862 

Contributions  (Note  5) 

Members' 

146,502 

4,515 

27,597 

178,614 

160,735 

Employers' 

140,995 

5,224 

27,717 

173,936 

155,293 

287,497 

9,739 

55,314 

352,550 

316,028 

Transfers  from  other  funds 

1,731 

_ 

499 

2,230 

1,172 

TOTAL  INCREASE  IN  ASSETS 

1,016,679 

22,635 

123,969 

1,163,283 

721,062 

DECREASE  IN  ASSETS 

Superannuation  allowance  payments 
Contributory 

145,864 

145,864 

135,193 

Inflation  adjustment  supplements 

43,008 

- 

- 

43,008 

37,824 

Special  agreement  supplements 

81 

- 

- 

81 

96 

Reimbursement  from  former 
employers 

(30) 

(30) 

(44 

188,923 

- 

- 

188,923 

173,069 

1  Refunds 

19,859 

486 

3,556 

23,901 

26,884 

i  Transfer  to  other  funds 

1,454 

- 

127 

1,581 

573 

Medical  Plan  premiums 

3,636 

- 

- 

3,636 

3,228 

1  Administration  and  actuarial  fees 

5,703 

- 

- 

5,703 

3,718 

'  Investment  management  fees 

849 

- 

100 

949 

828 

;  TOTAL  DECREASE  IN  ASSETS 

220,424 

486 

3,783 

224,693 

208,300 

,  INCREASE  IN  NET  ASSETS  BEFORE 
TRANSFERS 

796,255 

22,149 

120,186 

938,590 

512,762 

Account  transfers  (Note  6) 

(9,430  ) 

(6,054  ) 

15,484 

- 

- 

i  INCREASE  IN  NET  ASSETS 

786,825 

16,095 

135,670 

938,590 

512,762 

•  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

AT  BEGINNING  OF  YEAR  3,584,398 

129,654 

511,034 

4,225,086 

3,712,324 

NET  ASSETS  AVAILABLE  FOR 
BENEFITS  AT  END  OF  YEAR 

$4,371,223 

$145,749 

$646,704 

$5,163,676 

$4,225,086 

D  52 


PROVINCE  OF  BRITISH  COLUMBIA 


MUNICIPAL  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  MUNICIPAL  SUPERANNUATION  PLAN 

The  following  brief  description  of  the  Plan  is  provided  for  general  information  only.  For 
more  complete  information  about  the  Plan,  reference  should  be  made  to  the  Pension 
(Municipal)  Act. 

a)  General 

The  Plan  is  a  defined  benefit  pension  Plan  open  to  eligible  employees  of  a  municipality, 
hospital,  school  district,  regional  college  or  other  employer  to  which  the  Pension 
(Municipal)  Act  applies. 

b)  Contributions 

Members  contribute  to  the  Basic  Account  5%  of  pensionable  salary  up  to  the  Canada 
Pension  Plan's  Year's  Maximum  Pensionable  Earnings  and  6-1/2%  on  pensionable  salary 
above  that.  Employers  contribute  to  the  Basic  Account  at  varying  rates  depending  upon 
the  mix  of  employees  in  the  group  classifications  specified  by  the  plan.  Members  and 
employers  also  each  contribute  1%  of  pensionable  salary  to  the  Inflation  Adjustment 
Account  which  was  created  in  1 980  to  provide  for  the  payment  of  inflation  adjustment 
supplements.  Some  employers  have  special  agreements  with  their  employees  by  which 
both  make  extra  contributions  to  increase  the  employees'  pensions.  These  contributions 
plus  members'  voluntary  contributions  are  credited  to  the  Retirement  Annuity  Account. 

c)  Retirement  Benefits 

Members  are  eligible  for  unreduced  pensions  if  retirement  is  at  normal  retirement  age  as 
defined  in  the  Plan,  or  at  an  age  within  5  years  of  normal  retirement  age  with  at  least  10 
years  contributory  service.  Unreduced  pensions  are  also  available  to  members  whose 
normal  retirement  age  is  65,  at  age  55  with  at  least  35  years  contributory  service,  or  if 
the  normal  retirement  age  is  60,  at  age  50  with  30  years  contributory  service.  Members 
who  do  not  meet  the  above  criteria  are  eligible  for  reduced  pensions  at  an  age  10  years 
under  the  normal  retirement  age  with  at  least  10  years  contributory  service,  or  if  retiring 
within  5  years  under  the  normal  retirement  age  with  less  than  10  years  contributory 
service. 

The  Plan  provides  a  pension  of  1-3/4%  of  the  highest  5-year  average  salary  for  each  year 
of  pensionable  service  credited  prior  to  the  date  the  employer  enrolled  in  the  Plan,  plus 
2%  of  the  highest  5-year  average  salary  for  each  year  after  the  date  the  employer 
enrolled.  The  maximum  pensionable  service  allowable  under  the  plan  is  35  years.  At 
age  65,  or  date  of  death  or  disability,  if  earlier,  there  is  a  reduction  in  the  formula  as  a 
result  of  integration  with  the  Canada  Pension  Plan. 

The  inflation  adjustment  supplements  are  provided  each  January  1st  and  are  related  to 
the  annual  increase  in  the  Consumer  Price  Index  (CPI)  as  at  the  previous  September 
30th.  The  increase  is  pro-rated  if  the  capitalized  value  of  the  increases  exceeds  the 
funds  available  in  the  Inflation  Adjustment  Account. 


PUBLIC  ACCOUNTS  1991/92 


D  53 


MUNICIPAL  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  MUNICIPAL  SUPERANNUATION  PLAN  (continued) 

As  there  were  sufficient  funds  available  at  January  1,  1991,  a  full  CPI  increase  of  4.2% 
(1990  -  5.2%)  was  provided  to  the  basic  lifetime  portion  of  the  contributory 
superannuation  allowances  in  force.  Sufficient  funds  were  also  available  to  provide  a 
full  CPI  increase  of  5.4%  effective  January  1,  1992. 

d)  Termination  and  Portability  Benefits 

A  terminating  member  may  choose  between  leaving  accumulated  contributions  on 
deposit  or  obtaining  a  refund.  The  refund  includes  interest  credited.  Members  with  at 
least  10  years  of  contributory  service  who  leave  contributions  in  the  Plan  are  entitled  to 
deferred  pension  benefits.  Those  members  not  withdrawing  contributions  may  carry 
certain  pension  rights  to  other  pension  plans  that  have  portability  arrangements  with  the 
Municipal  Superannuation  Plan.  New  members  may  also,  under  portability 
arrangements,  transfer  contributions  and  service  from  other  plans  to  provide  increased 
pension  benefits  under  the  Municipal  Superannuation  Plan. 

e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  Plan. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting. 

b)  Investments 

Investments  are  shown  at  their  market  value. 

c)  Recognition  of  investment  transactions 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over  the 
terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are 
recognized  in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of 
acquisition  adjusted  by  the  amortization  of  discounts  and  premiums  for 
bonds  and  by  income  attributed  for  units. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between  the 
current  year's  difference  between  the  adjusted  cost  and  market  value  of 
investments  and  last  year's  difference. 


D  54 


PROVINCE  OF  BRITISH  COLUMBIA 


MUNICIPAL  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


3.  INVESTMENTS 


Money  market  instruments 
Bonds 


1991  1990 


Market 

Value 

Adjusted 

Cost 

Market 

Value 

Adjusted 

Cost 

($  Thousands) 

$1,486,538 

3,593,500 

$1,476,715 

3,319,780 

$1,321,372 

2,811,417 

$1,317,815 

2,850,467 

$5,080,038 

$4,796,495 

$4,132,789 

$4,168,282 

(a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British 
Columbia  Pooled  Investment  Portfolios.  There  are  two  funds  which  invest 
mainly  in  Canadian  money  market  securities  and  have  terms  less  than  one  year. 

(b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or 
municipal  governments  with  initial  terms  in  excess  of  one  year. 


4.  INCOME  FROM  INVESTMENTS 


1991  1990 


Retirement  Inflation 

Basic 

Annuity  Adjustment 

Account 

Account  Account  Total 

Total 

($  Thousands) 

Money  market 

instruments 

$128,477  $  - 

$  16,421 

$144,898 

$152,645 

Bonds 

266,030  12,896 

31,408 

310,334 

269,271 

Net  realized  gains  (losses) 

during  year 

31,665 

2,569 

34,234 

(13,817 

$426,172  $  12,896  $  50.398  $489,466  $408,099 


PUBLIC  ACCOUNTS  1991/92 


D  55 


MUNICIPAL  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 

5.  CONTRIBUTIONS 


1991 

1990 

Retirement 

Inflation 

Basic 

Annuity 

Adjustment 

Account 

Account 

Account  Total 

Total 

Members'  contributions 

Current  $145,162 

Special  agreement 

Arrears  221 

Purchase  of  service  488 

Leave  of  absence  3 1 

Reinstatement  600 

$  - 
4,235 
182 
79 
3 

16 

($  Thousands) 

$  27,534 

22 

34 

6 

1 

$172,696 

4,235 

425 

601 

40 

617 

$155,531 

3,963 

227 

502 

40 

472 

146,502 

4,515 

27,597 

178,614 

160,735 

Employers'  contributions 
Current 

139,189 

27,535 

166,724 

149,729 

Special  agreement 

5,117 

- 

5,117 

4,592 

Arrears 

676 

1 

95 

772 

441 

Purchase  of  service 

1,097 

103 

80 

1,280 

492 

Leave  of  absence 

33 

3 

7 

43 

39 

140,995 

5,224 

27,717 

173,936 

155,293 

$287,497 

$  9,739 

$55,314 

$352,550 

$316,028 

6.  ACCOUNT  TRANSFERS 


1991  1990 


Retirement 

Inflation 

Retirement 

Inflation 

Basic 

Annuity 

Adjustment 

Basic 

Annuity 

Adjustment 

Account 

Account 

Account 

Account 

Account 

Account 

($  Thousands) 

Capitalized  value  of 
inflation  adjustment 
supplements  granted 

$62,165 

$ 

$(  62,165  ) 

$66,526 

$ 

$(66,526  ) 

Capitalized  value  of 
indexing  of  highest 
average  salary  on 
deferred  pensions 

920 

(920  ) 

972 

(972  ) 

Excess  interest 

(78,552  ) 

- 

78,552 

(58,611  ) 

- 

58,611 

Pensions  purchased 
from  Retirement 
Aiuuiity  Account 

6,129 

(6,129  ) 

4,536 

(4,536  ) 

Other 

(92) 

75 

17 

159 

(185  ) 

26 

$(  9,430  ) 

$(6,054  ) 

$  15,484 

$13,582 

$(4,721  ) 

$(8,861  ) 

The  excess  interest  is  the  income  that  is  earned  on  assets  held  in  the  Basic  Account  in  respect 
of  pensions  being  paid,  and  which  is  in  excess  of  income  calculated  using  the  interest  rate 
assumed  by  the  Actuary. 


D  56 


PROVINCE  OF  BRITISH  COLUMBIA 


MUNICIPAL  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


7.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  present  value  of  accrued  pension  benefits  was  determined  using  the  projected 
benefit  method  pro  rated  on  service.  Using  the  actuarial  valuation  made  as  of  December 
31,  1988  by  Eckler  Partners  Ltd.,  the  present  value  of  accumulated  benefits  in  the  Basic 
Account  was  $3,753,010,000  compared  to  $2,802,846,000  as  at  December  31,  1985. 
Assets  at  market  totalled  $2,779,036,000  as  at  December  31,  1988,  compared  to 
$1,991,073,000  as  at  December  31,  1985. 

A  complete  description  of  the  principal  components  of  the  change  in  the  actuarial 
present  value  for  accrued  benefits  between  December  31,  1985  and  December  31,  1988 
was  not  contained  in  the  1988  report  and  therefore  is  not  presented  in  these  statements. 
Further,  a  valuation  as  at  December  31,  1991  is  currently  being  performed  but  has  not 
been  completed  in  time  for  these  statements. 

The  assumptions  used  in  determining  the  actuarial  value  of  accrued  pension  benefits 
were  developed  by  reference  to  expected  long-term  market  trends.  Significant  long¬ 
term  actuarial  assumptions  used  in  the  valuation  were; 


1988 

1985 

Asset  rate  of  return 

6.5% 

6.5% 

Salary  escalation  rate 

5.5% 

5.5% 

8.  FUNDING  POLICY 

An  actuarial  valuation  is  undertaken  to  determine  the  Plan  sponsors  and  contributor 
contribution  rates.  These  contribution  rates  calculated  by  the  Actuary  were  determined 
under  a  "level  contribution"  funding  method.  This  method  expresses  employer 
contributions  as  a  constant  percentage  of  future  payrolls  that,  together  with  future 
member  contributions  and  investment  earnings,  will  finance  the  benefits  for  a  typical 
new  entrant  to  the  plan  and,  in  addition,  will  maintain  the  unfunded  liability  as  a  constant 
percentage  of  future  payrolls. 

The  most  recent  actuarial  valuation  for  funding  purposes  was  prepared  by  Eckler 
Partners  Ltd.  Actuaries  and  Consultants  as  at  December  31,  1988.  This  valuation 
disclosed  an  unfunded  liability  in  respect  of  basic  pension  benefits  of  $1,082,186,000  at 
December  31,  1988,  compared  to  $855,352,000  as  at  December  31,  1985,  the  date  of 
the  previous  valuation.  The  increase  arose  mainly  from  interest  charges  on  unfunded 
liabilities. 

The  Actuary  stated  that  he  did  not  see  the  unfimded  liability  as  a  threat  to  the  continued 
payment  of  pensions  to  current  and  prospective  pensioners,  or  to  the  financial  health  of 
the  pension  plan.  He  did,  however,  recommend  that  the  statutory  contribution  rates  be 
increased  to  at  least  those  required  under  the  level  contribution  funding  method.  To 
date  the  contribution  rates  have  not  been  changed. 


PUBLIC  ACCOUNTS  1991/92 


D  57 


Public  Service  Superannuation  Plan 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604) 387-6803 
Fax  (604)  387-1230 


To  the  Superannuation  Commissioner,  Trustee, 

To  the  Minister  of  Government  Services,  Province  of  British  Columbia,  and 

To  the  Minister  of  Finance  and  Corporate  Relations, 

Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  Public 
Service  Superannuation  Plan  as  at  March  31,  1992  and  the  statement  of  changes  in 
net  cissets  available  for  benefits  for  the  year  then  ended.  These  financial  statements 
are  the  responsibility  of  the  Superannuation  Commission's  management.  My 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Plan  as  at  March  31,  1992  and  the  results  of  its 
operations  and  the  changes  in  its  financial  position  for  the  year  then  ended  in 
accordance  with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
September  14, 1992 


D  58 


PROVINCE  OF  BRITISH  COLUMBIA 


OFFICE  OF  THE 
COMMISSIONER 


Province  of 
British  Columbia 


Superannuation 

Commission 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone:  (604)  387-1002 
Facsimile:  (604)  387-4199 


IN  REPLY  REFER  TO 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 


MANAGEMENT’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Commission  is  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  Public  Service  Superannuation  Plan's  financial  statements  and 
for  the  financial  information  included  in  the  Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  Public  Service  Superannuation  Plan's  financial  statements  have  been  examined  by  the 


Office  of  the  Auditor  General  of  British  Columbia.  Their  attached  report  outlines  the  nature 
of  their  examination  and  their  opinion  on  the  financial  statements. 


kShn  w.  cook,  f.c.i.a. 

Superannuation  Commmissioner 


(Shn  w.  cook, 


PUBLIC  ACCOUNTS  1991/92 


D  59 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

($  Thousands) 


March  3 1 

1992 

1991 

ASSETS 

Investments  (Note  3) 

Money  market  instruments 

$1,235,835 

$1,193,366 

Bonds 

3,207,396 

2,741,698 

Equities 

52,028 

48,686 

Total  Investments 

4,495,259 

3,983,750 

Receivables 

Members'  contributions 

2,694 

5,298 

Employer's  contributions 

6,313 

8,152 

Due  fi’om  Members  of  the  Legislative 

Assembly  Superannuation  Account  (Note  8  ) 

9,225 

343 

Due  from  brokers 

19,736 

8,563 

Other 

32 

197 

Accrued  interest  and  dividends 

70,163 

58,311 

Total  Receivables 

108,163 

80,864 

Cash 

1,268 

2,574 

Total  Assets 

4,604,690 

4,067,188 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

3,564 

3,284 

Total  Liabilities 

3,564 

3,284 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

$4,601,126 

$4,063,904 

The  ten  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


Jotti  W.  Cook,  F.C.LA., 
Superannuation  Commissioner 
Trustee 


.any  J^pr,  C.M.A. 
Actin^T>irector,  Finance 
Superaimuation  Commission 


D  60 


PROVINCE  OF  BRITISH  COLUMBIA 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVAILABLE  FOR  BENEFITS 


For  the  years  ended  March  3 1 

(  $  Thousands) 

Basic 

Account 

Inflation 

Adjustment 

Account 

TOTALS 

1992  1991 

INCREASE  IN  ASSETS 

Investment  Income 

Income  (Note  4) 

$426,456 

$63,171 

$489,627 

$426,397 

Unrealized  appreciation  (depreciation) 
during  the  year 

11,472 

(5,293  ) 

6,179 

170,069 

437,928 

57,878 

495,806 

596,466 

Contributions  (Note  5) 

Members' 

73,747 

20,027 

93,774 

85,626 

Enployers' 

Province  of  British  Columbia 

74,208 

13,083 

87,291 

78,696 

Other  Employers 

40,404 

6,460 

46,864 

44,289 

188,359 

39,570 

227,929 

208,61 1 

Transfers  from  other  funds 

1,687 

343 

2,030 

3,990 

Transfers  from  Members  of  the  Legislative 
Assembly  Superannuation  Account  (Note  8) 
Capitalized  value  of  contributory  allowances 

9,182 

9,182 

307 

Inflation  adjustment  contributions 

- 

65 

65 

90 

10,869 

408 

11,277 

4,387 

Total  increase  in  assets 

637,156 

97,856 

735,012 

809,464 

DECREASE  IN  ASSETS 

Superannuation  allowance  payments 

Contributory 

139,425 

139,425 

137,214 

Inflation  adjustment  supplements 

41,983 

- 

41,983 

36,592 

181,408 

- 

181,408 

173,806 

Refunds 

9,217 

2,191 

11,408 

15,649 

Transfer  options  for  privatized 
employees  (Note  6) 

26 

13 

39 

954 

Transfer  to  other  funds 

661 

135 

796 

1,064 

Administration  and  actuarial  fees 

3,240 

- 

3,240 

3,019 

Investment  management  fees 

781 

118 

899 

804 

Total  decrease  in  assets 

195,333 

2,457 

197,790 

195,296 

INCREASE  IN  NET  ASSETS  BEFORE 
TRANSFERS 

441,823 

95,399 

537,222 

614,168 

Account  transfers  (Note  7) 

(17,690  ) 

17,690 

- 

- 

INCREASE  IN  NET  ASSETS 

424,133 

113,089 

537,222 

614,168 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 
AT  BEGINNING  OF  YEAR 

3,528,171 

535,733 

4,063,904 

3,449,736 

NET  ASSETS  AVAILABLE  FOR  BENEHTS 
AT  END  OF  YEAR 

$3,952,304 

$648,822 

$4,601,126 

$4,063,904 

PUBLIC  ACCOUNTS  1991/92 


D  61 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  DESCRIPTION  OF  THE  PUBLIC  SERVICE  SUPERANNUATION  PLAN 

The  following  brief  description  of  the  Plan  is  provided  for  general  information  only. 
For  more  complete  information  about  the  Plan,  reference  should  be  made  to  the 
Pension  (Public  Service)  Act. 

a)  General 

The  Plan  is  a  defined  benefit  pension  plan  open  to  eligible  employees  of  the  public 
service  and  certain  Crown  corporations,  agencies,  institutions  and  other  employers 
to  which  the  Pension  (Public  Service)  Act  applies. 

b)  Contributions 

Members  contribute  to  the  Basic  Account  4-1/4%  of  salary  up  to  the  Canada 
Pension  Plan's  Year's  Maximum  Pensionable  Earnings  and  5-3/4%  on  earnings 
above  that.  Employers  contribute  to  the  Basic  Account  6-3/4%  of  salary  up  to  the 
Year's  Maximum  Pensionable  Earnings  and  8-1/4%  on  earnings  above  that. 
Members  and  employers  also  each  contribute  1-1/4%  of  salary  to  the  Inflation 
Adjustment  Account  which  was  created  in  1980  to  provide  for  the  payment  of 
inflation  adjustment  supplements. 

c)  Retirement  Benefits 

Members  are  eligible  for  an  unreduced  pension  at  an  age  within  5  years  of  normal 
retirement  age  with  at  least  10  years  contributory  service,  or  at  age  55  with  35  years 
contributory  service.  A  reduced  pension  is  payable  at  an  age  10  years  under  normal 
retirement  age  with  at  least  10  years  contributory  service. 

The  Plan  provides  for  a  pension  of  2%  of  the  highest  5 -year  average  salary  for  each 
year  of  pensionable  service  (to  a  maximum  of  35  years).  At  age  65,  or  date  of  death 
or  disability,  if  earlier,  there  is  a  reduction  in  the  formula  as  a  result  of  integration 
with  the  Canada  Pension  Plan. 

The  inflation  adjustment  supplements  are  provided  each  January  1st  and  are  related 
to  the  annual  increase  in  the  Consumer  Price  Index  (CPI)  as  at  the  previous 
September  30th.  The  increase  is  pro-rated  if  the  capitalized  value  of  the  increases 
exceeds  the  funds  available  in  the  Inflation  Adjustment  Account.  As  there  were 
sufficient  funds  available  at  January  1,  1991,  a  full  CPI  increase  of  4.2%  (1990  - 
5.2%)  was  provided  to  the  basic  lifetime  portion  of  the  contributory  superannuation 
allowances  in  force.  Sufficient  funds  were  also  available  to  provide  a  full  CPI 
increase  of  5.4%  effective  January  1,  1992. 


D  62 


PROVINCE  OF  BRITISH  COLUMBIA 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  DESCRIPTION  OF  THE  PUBLIC  SERVICE  SUPERANNUATION  PLAN 
(Continued) 

d)  Termination  and  Portability  Benefits 

A  terminating  member  may  choose  between  leaving  accumulated  contributions  on 
deposit  or  obtaining  a  refund.  The  refund  includes  interest  credited.  Members  with 
at  least  10  years  of  contributory  service  who  leave  contributions  in  the  fund  are 
entitled  to  deferred  pension  benefits.  Those  members  not  withdrawing  contributions 
may  carry  certain  pension  rights  to  other  pension  plans  that  have  portability 
arrangements  with  the  Public  Service  Superannuation  Plan.  New  members  may 
also,  under  portability  arrangements,  transfer  contributions  and  service  from  other 
plans  to  provide  for,  or  to  increase,  pension  benefits  under  the  Public  Service 
Superannuation  Plan. 

e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  Plan. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting. 

b)  Investments 

Investments  are  shown  at  their  quoted  market  value. 

c)  Recognition  of  investment  transaction 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date 
basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over 
the  terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are 
recognized  in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of 
acquisition  adjusted  by  the  amortization  of  discounts  and  premiums  for 
long-term  investments  and  by  income  attributed  for  units. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between  the 
current  year's  difference  between  the  adjusted  cost  and  market  value  of 
investments  and  last  year's  difference. 


PUBLIC  ACCOUNTS  1991/92 


D  63 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


3.  INVESTMENTS 


1992  1991 


Market 

Value 

Adjusted  Market 

Cost  Value 

Adjusted 

Cost 

($  Thousands) 

Money  market  instruments 

$1,235,835 

$1,234,146 

$1,193,366 

$1,186,833 

Bonds 

3,207,396 

3,157,598 

2,741,698 

2,699,580 

Equities 

52,028 

24,611 

48,686 

24,611 

$4,495,259 

$4,416,355 

$3,983,750 

$3,911,024 

(a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British  Columbia 
Pooled  Investment  Portfolios.  There  are  two  funds  which  invest  mainly  in  Canadian 
money  market  securities  and  have  terms  less  than  one  year. 

(b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or  municipal 
governments  with  initial  terms  in  excess  of  one  year. 

(c)  Equities 

Equities  consist  of  shares  purchased  in  the  early  1970's.  These  Canadian  equities  are 
listed  on  the  Toronto  Stock  Exchange. 


4.  INVESTMENT  INCOME 


1992 

1991 

Inflation 

Basic 

Adjustment 

Account 

Account 

Total 

Total 

($  Thousands) 

Money  market  instruments 

$103,638 

$  15,788 

$119,426 

$140,173 

Bonds 

251,265 

37,529 

288,794 

261,465 

Equities 

2,726 

- 

2,726 

2,533 

Net  realized  gains 
(losses)  during  year 

68,827 

9,854 

78,681 

22,226 

$426,456 

$63,171 

$489,627 

$426,397 

D  64 


PROVINCE  OF  BRITISH  COLUMBIA 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


5. 


CONTRIBUTIONS 


Inflation 


Basic 

Account 

Adjustment 

Account 

TOTALS 

1992  1991 

Contributions 

Members' 

Current 

Purchase  of  service 
Reinstatement 

$  73,005 
326 

416 

($  Thousands) 

$  20,002  $  93,007 

25  351 

416 

$  84,846 
354 

426 

73,747 

20,027 

93,774 

85,626 

Employers' 

Province  of  British  Columbia 

Current 

73,436 

13,055 

86,491 

77,855 

Purchase  of  service 

'  340 

27 

367 

381 

Reinstatement 

432 

1 

433 

460 

74,208 

13,083 

87,291 

78,696 

Other  employers 

Current 

40,311 

6,459 

46,770 

42,164 

Purchase  of  service 

93 

1 

94 

134 

Early  retirement 

incentive  program 

- 

- 

- 

1,991 

40,404 

6,460 

46,864 

44,289 

Total  Employers 

114,612 

19,543 

134,155 

122,985 

$188,359 

$  39,570 

$227,929 

$208,611 

6.  PENSION  OPTIONS  FOR  PRIVATIZED  EMPLOYEES 

Special  pension  options  were  available  to  members  who  ceased  to  be  employed  by  the 
Province  of  British  Columbia  because  their  employment  was  transferred  out  of  the 
public  service  as  a  result  of  privatization.  Those  members  were  able  to  receive  a  refund 
of  their  contributions  (refund  option),  leave  their  contributions  in  the  pension  plan  and 
then  be  eligible  for  a  deferred  pension  (deposit  option),  or  transfer  the  value  of  their 
pension  to  a  personal  registered  retirement  savings  plan  or  other  pension  plan  (transfer 
option).  The  value  of  the  transfer  options  granted  was  $  39,351(1991  -$  953,723). 


PUBLIC  ACCOUNTS  1991/92 


D  65 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


7. 


TRANSFERS 


1992  1991 


Inflation 

Inflation 

Basic 

Adjustment 

Basic 

Adjustment 

Account 

Account 

Account 

Account 

($  Thousands) 

Capitalized  value  of 
inflation  adjustment 
supplements  granted 

$  80,097 

$(80,097  ) 

$  59,163 

$(59,163  ) 

Capitalized  value  of  indexing 
of  highest  average  salary 
on  deferred  pensions 

1,078 

(1,078  ) 

842 

(842  ) 

Excess  interest 

(98,808  ) 

98,808 

(56,575  ) 

56,575 

Other 

(57) 

57 

(125) 

125 

$(17,690  ) 

$  17,690 

$3,305 

$(3,305  ) 

The  excess  interest  is  the  income  that  is  earned  on  assets  held  in  the  Basic  Account  in 
respect  of  pensions  being  paid,  and  which  is  in  excess  of  income  calculated  using  the 
interest  rate  assumed  by  the  Actuary. 


8.  TRANSFERS  FROM  MEMBERS  OF  THE  LEGISLATIVE  ASSEMBLY 
SUPERANNUATION  ACCOUNT 

Former  Members  of  the  Legislative  Assembly  who  have  been  granted  superannuation 
allowances  are  paid  contributory  allowances  and  inflation  adjustment  supplements  from 
the  Public  Service  Superannuation  Plan  (the  Plan). 

A  contributory  allowance  is  financed  at  the  time  the  allowance  is  first  granted  by  the 
transfer  to  the  Plan  from  the  Members  of  the  Legislative  Assembly  Superannuation 
Account  (the  Account)  of  the  capitalized  value  of  the  contributory  allowance. 

Former  Members  receiving  an  allowance  who  are  re-elected  to  the  Legislature  cease  to 
receive  an  allowance  and  resume  contributing  to  the  Account.  In  addition,  an  amount 
equal  to  the  capitalized  value  of  their  superannuation  allowance  is  transferred  from  the 
Public  Service  Superannuation  Plan  to  the  Account. 

During  the  year  ended  March  31,  1992,  20  members  (1991-1)  were  granted 
superannuation  allowances.  The  capitalized  value  of  these  allowances  were  $9, 181,692 
(1991  -  $306,767)  which,  along  with  the  balance  of  current  year  inflation  adjustment 
contributions  of  $42,843  (1991  -  $36,734),  is  due  from  the  Account. 


D  66 


PROVINCE  OF  BRITISH  COLUMBIA 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31, 1992 


9.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  present  value  of  accrued  basic  pension  benefits  was  determined  using  the  projected 
benefit  method  prorated  on  service.  An  actuarial  valuation  was  made  as  of  March  31, 
1990  by  Eckler  Partners,  a  firm  of  consulting  actuaries,  and  was  then  extrapolated  using 
the  administrator's  best  estimate  assumptions  to  March  31,  1991  and  March  31,  1992. 

The  extrapolated  actuarial  present  value  of  basic  pension  benefits  as  at  March  3 1  and  the 
principal  components  of  expected  changes  in  actuarial  present  values  during  the  year. 


were  as  follows: 

_ 1992  _ 1991 

($  Thousands) 

Actuarial  present  value  of  accrued 

pension  benefits  at  beginning  of  year  $3,721,380  $3,453,999 

Capitalized  value  transfers  from 

inflation  adjustment  account  8 1 , 1 75  60,005 

Benefits  accrued  185,475  169,777 

Benefits  paid  (190,651  )  (187,316  ) 

Interest  accrued  on  benefits  243,041  224,915 

Expected  present  value  of  accrued 

pension  benefits  at  end  of  year  $4,040,420  $3,721,380 


The  assumptions  used  in  determining  the  actuarial  value  of  accrued  pension  benefits 
were  developed  by  reference  to  expected  long-term  market  conditions.  The  significant 
long-term  actuarial  assumptions  used  in  the  valuation  were  also  used  in  the  above 
extrapolation: 


1992 

1991 

Asset  rate  of  return 

6.5% 

6.5% 

Salary  escalation  rate 

5.0% 

5.0% 

The  actuarial  value  of  net  assets  available  for  benefits  has  been  determined  at  amounts 
that  reflect  long-term  market  trends  (consistent  with  assumptions  underlying  the 
valuation  of  the  accrued  pension  benefits).  The  actuarial  asset  value  used  in  the 
valuation  was  extrapolated  using  the  administrator's  best  estimate  assumptions  to  March 
31,  1991  and  March  31,  1992  from  the  actuarial  value  of  $3,013,401,000. 

($  Thousands) 


Market  value  of  assets  as  of  March  31,  1990  $3,01 1,202 

Market  value  changes  not  reflected  in 

actuarial  value  of  net  assets  _ 2,199 

Actuarial  value  of  assets  available 

for  benefits  as  of  March  31,1 990  $3,013,401 


PUBLIC  ACCOUNTS  1991/92 


D  67 


PUBLIC  SERVICE  SUPERANNUATION  PLAN 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  3L  1992 

9.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 


The  extrapolated  asset  values  were: 


Actuarial  value  of  net  assets 
at  beginning  of  year 
Capitalized  value  transfers  from 
inflation  adjustment  account 
Employee,  Government  and  other 
employer  contributions 
Benefit  payments 
Expected  earnings 
Expected  value  of  net  assets 
at  end  of  year 


1992  1991 

($  Thousands) 


$3,254,846 

81,175 

188,359 
(190,651  ) 
212,810 


$3,013,401 

60,005 

172,395 
(187,316  ) 
196,361 


$3,546,539  $3,254,846 


Based  on  the  administrator's  extrapolation  to  calculate  expected  accrued  pension 
benefits  and  value  of  net  assets,  the  unfunded  liability  in  respect  of  basic  accrued 
benefits  of  $440,598,000  as  of  March  31,  1990  is  expected  to  increase  to  $466,534,000 
as  at  March  31,  1991  and  $493,881,000  as  at  March  31,  1992. 


10.  FUNDING  POLICY 

Actuarial  valuations  are  undertaken  every  three  years  to  determine  the  Plan  sponsor  and 
contributor  contribution  rates.  The  Actuary  has  indicated  that  the  level  contribution 
funding  actuarial  cost  method  is  an  appropriate  financing  method  for  the  Plan.  This 
method  expresses  employer  contributions  as  a  constant  percentage  of  future  payrolls 
that,  together  with  future  member  contributions  and  investment  earnings,  will  finance 
the  benefits  for  a  typical  new  entrant  to  the  Plan  and,  in  addition,  will  maintain  the 
unfunded  liability  as  a  constant  percentage  of  future  payrolls. 

The  Actuary  indicated  in  the  valuation  for  funding  purposes  as  at  March  31,  1990  that 
the  Plan  had  an  unfunded  actuarial  liability  of  $437,875,000  in  respect  of  basic  pension 
benefits,  assuming  future  contributions  continue  at  current  statutory  rates.  This 
unfunded  liability  decreased  by  $18,187,000  from  the  unfunded  actuarial  liability  in  the 
previous  valuation  as  at  March  31,  1987.  The  contribution  requirements  indicated  by 
the  valuation  were  at  a  maximum  combined  rate  of  14.25%  of  salaries  which  is  slightly 
in  excess  of  the  current  statutory  rate  of  14.0%  of  salaries,  in  respect  of  basic  pension 
benefits. 


D  68 


PROVINCE  OF  BRITISH  COLUMBIA 


Teachers'  Pensions  Plan 


Auditor  General  of  British  Columbia 


AUDITORS  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)387-6803 
Fax  (604)  387-1230 


To  the  Superannuation  Commissioner,  Trustee,  and 

To  the  Minister  of  Government  Services, 

Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  available  for  benefits  of  the  Teachers' 
Pensions  Plan  as  at  December  31,  1991  and  the  statement  of  changes  in  net  assets 
available  for  benefits  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Superannuation  Commission's  management.  My  responsibility  is  to 
express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  Plan  as  at  December  31,  1991  and  the  results  of  its  operations 
and  the  changes  in  its  financial  position  for  the  year  then  ended  in  accordance  with 
generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
July  6, 1992 


PUBLIC  ACCOUNTS  1991/92 


D  ()9 


Province  of  Superannuation 

British  Columbia  Commission 


OFFICE  OF  THE 
COMMISSIONER 


548  Michigan  Street 
Victoria 

British  Columbia 
V8V  4R5 

Telephone;  (604)  387-1002 
Facsimile:  (604)  387-4199 


IN  REPLY  REFER  TO 


TEACHERS’  PENSION  PLAN 

MANAGEMENT’S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  the  Superannuation  Commission  is  responsible  for  the  preparation, 
integrity  and  objectivity  of  the  Teachers'  Pension  Plan's  financial  statements  in  accordance  with 
the  generally  accepted  accounting  principles  and  for  the  financial  information  included  in  the 
Annual  Report. 

The  Superannuation  Commission  maintains  the  necessary  systems  of  internal  control  to 
provide  assurance  that  transactions  are  authorized,  assets  are  safeguarded  and  that  proper 
corporate  and  plan  member  records  are  maintained. 

The  Teachers'  Pension  Plan's  financial  statements  have  been  examined  by  the  Office  of  the 
Auditor  General  of  British  Columbia.  Their  examination  was  made  in  accordance  with 
generally  accepted  auditing  standards  which  included  a  review  of  the  Superannuation 
Commission's  internal  controls  to  establish  a  basis  for  determining  the  nature,  timing,  and 
extent  of  audit  tests  to  be  applied.  Their  report  outlines  the  nature  of  their  examination  and 
their  opinion  on  the  financial  statements  of  the  Teachers'  Pension  Plan. 


Superannuation  Commissioner,  Trustee 


y^YIAb^I,  C.M.A. 

Acting  Dif^efor,  Finance, 
Superaimuation  Commission 


D  70 


PROVINCE  OF  BRITISH  COLUMBIA 


TEACHERS*  PENSION  PLAN 

STATEMENT  OF  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

($  Thousands) 


December  3 1 

1991 

1990 

ASSETS 

Investments  (Note  3) 

Money  market  instruments 

$  423,528 

$  995,165 

Bonds 

1,686,545 

1,679,300 

Equities 

1,499,911 

477,663 

Real  Estate 

114,739 

2,150 

3,724,723 

3,154,278 

Receivables 

Members'  contributions 

14,721 

12,306 

Employer's  contributions 

20,472 

17,088 

Other 

20 

255 

Accrued  interest  and  dividends 

38,596 

39,066 

73,809 

68,715 

Cash 

395 

577 

Total  Assets 

3,798,927 

3,223,570 

LIABILITIES 

Accounts  payable  and  accrued  expenses 

4,132 

3,946 

Due  to  brokers 

1,873 

36,717 

Total  Liabilities 

6,005 

40,663 

NET  ASSETS  AVAILABLE  FOR  BENEFITS 

$3,792,922 

$3,182,907 

The  eight  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


John  W.  Cook,  F.C.I.A.,  Ja^^.M.A., 

Superannuation  Commissioner  / Actinaj5jr^tor,  Finance 

Trustee  Superalmuation  Commission 


PUBLIC  ACCOUNTS  1991/92 


D  71 


TEACHERS’  PENSION  PLAN 

STATEMENT  OF  CHANGES  IN  NET  ASSETS  AVAILABLE  FOR  BENEFITS 

($  Thousands) 

Inflation 


For  the  years  ended  December  3 1 

Basic 

Account 

Adjustment 

Account 

Totals 

1991  1990 

INCREASE  IN  ASSETS 

Investment  Income  (Note  4) 

Income 

Unrealized  appreciation  (depreciation) 
during  the  year 

$  301,927 

173,418 

$  33,292 

11,309 

$  335,219 

184,727 

$  299,086 

(14,403  ) 

475,345 

44,601 

519,946 

284,683 

Contributions 

Members' 

Current 

90,896 

16,517 

107,413 

93,009 

Reinstatement 

879 

- 

879 

859 

Leave  of  absence 

374 

52 

426 

347 

92,149 

16,569 

108,718 

94,215 

Employers' 

Province  of  British  Columbia 
on  behalf  of  school  districts 

Current 

69 

7 

76 

73,261 

Early  Retirement  Plan  (Note  5) 

4,705 

1,104 

5,809 

9,137 

School  Districts 

Current 

135,762 

16,564 

152,326 

59,181 

140,536 

17,675 

158,211 

141,579 

Transfers  from  other  funds 

2,098 

254 

2,352 

2,193 

TOTAL  INCREASE  IN  ASSETS 

710,128 

79,099 

789,227 

522,670 

DECREASE  IN  ASSETS 

Superannuation  allowance  payments 
Contributory 

127,125 

127,125 

122,481 

Inflation  adjustment  supplements 

42,739 

- 

42,739 

37,851 

169,864 

- 

169,864 

160,332 

Refunds 

4,233 

576 

4,809 

5,046 

Transfer  to  other  fimds 

1,097 

83 

1,180 

460 

Administration  and  actuarial  fees 

2,719 

- 

2,719 

1,741 

Investment  management  fees 

569 

71 

640 

682 

TOTAL  DECREASE  IN  ASSETS 

178,482 

730 

179,212 

168,261 

INCREASE  IN  NET  ASSETS  BEFORE 
TRANSFERS 

531,646 

78,369 

610,015 

354,409 

Account  transfers  (Note  6) 

10,982 

(10,982  ) 

- 

- 

INCREASE  IN  NET  ASSETS 

542,628 

67,387 

610,015 

354,409 

NET  ASSETS  AVAILABLE  FOR 
BENEFITS  AT  BEGINNING  OF  YEAR 

2,827,971 

354,936 

3,182,907 

2,828,498 

NET  ASSETS  AVAILABLE  FOR 
BENEFITS  AT  END  OF  YEAR 

$3,370,599  $ 

422,323 

$3,792,922 

$3,182,907 

D  72 


PROVINCE  OF  BRITISH  COLUMBIA 


TEACHERS’  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  TEACHERS'  PENSION  PLAN 

The  following  brief  description  of  the  Plan  is  provided  for  general  information  only.  For 
more  complete  information  about  the  Plan,  reference  should  be  made  to  the  Pension 
(Teachers)  Act. 

a)  General 

The  Plan  is  a  defined  benefit  pension  plan  open  to  all  certified  teachers  and  to 
superintendents  or  assistant  superintendents  appointed  by  a  board  of  school  trustees  in 
the  British  Columbia  public  school  system. 

b)  Contributions 

Members  contribute  to  the  Basic  Account  5.0%  of  pensionable  salary  up  to  the  Canada 
Pension  Plan's  Year's  Maximum  Pensionable  Earnings  and  6.5%  pensionable  salary 
above  that.  The  employers'  contributory  rates  are  7.7%  and  9.2%  respectively. 
Members  and  employers  also  each  contribute  1%  of  pensionable  salary  to  the  Inflation 
Adjustment  Account  which  was  created  in  1980  to  provide  for  the  payment  of  inflation 
adjustment  supplements.  Prior  to  July  1,  1990,  the  Province  of  British  Columbia 
through  the  Ministry  of  Education  was  billed  for  the  employers'  contributions  in  respect 
of  members  employed  by  School  Districts.  Effective  July  1 ,  1 990,  school  districts  paid 
the  employer  contributions  directly  to  the  Teachers'  Pensions  Fund. 

c)  Retirement  Benefits 

Members  are  eligible  for  an  unreduced  pension  benefit  if  retirement  is  at  age  65,  at  age 
55  with  a  minimum  of  35  years  contributory  service,  or  at  age  60  with  a  minimum  of  10 
years  contributory  service.  Reduced  pensions  are  available  at  age  55  with  a  minimum  of 
10  years  contributory  service  or  if  retiring  at  age  60  with  less  than  10  years  contributory 
service. 

The  Plan  provides  a  pension  of  2%  of  the  highest  5 -year  average  annual  salary  of  a 
member  for  each  year  of  pensionable  service  to  a  maximum  of  35  years.  At  age  65,  or 
date  of  death  or  disability,  if  earlier,  there  is  a  reduction  in  the  formula  as  a  result  of 
integration  with  the  Canada  Pension  Plan. 

The  inflation  adjustment  supplements  are  provided  each  January  1st  and  are  related  to 
the  annual  increase  in  the  Consumer  Price  Index  (CPI)  as  at  the  previous  September 
30th.  The  increase  is  pro-rated  if  the  capitalized  value  of  the  increases  exceeds  the 
funds  available  in  the  Inflation  Adjustment  Account.  As  there  were  sufficient  funds 
available  at  January  1,  1991,  a  full  CPI  increase  of  4.2%  (1990-5.2%)  was  provided  to 
the  basic  lifetime  portion  of  the  contributory  superannuation  allowances  in  force. 
Sufficient  funds  were  also  available  to  provide  a  full  CPI  increase  of  5.4%  effective 
January  1,  1992. 


PUBLIC  ACCOUNTS  1991/92 


D  73 


TEACHERS’  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


1.  DESCRIPTION  OF  THE  TEACHERS'  PENSION  PLAN  (continued) 

d)  Termination  and  Portability  Benefits 

A  terminating  member  may  choose  between  leaving  accumulated  contributions  on 
deposit  or  obtaining  a  refund.  The  refund  includes  interest  credited.  Members  with  at 
least  10  years  of  contributory  service  who  leave  contributions  in  the  plan  are  entitled  to 
deferred  pension  benefits.  Those  members  not  withdrawing  contributions  may  carry 
certain  pension  rights  to  other  pension  plans  that  have  portability  arrangements  with  the 
Teachers'  Pension  Plan.  New  members  may  also,  under  portability  arrangements, 
transfer  contributions  and  service  from  other  plans  to  provide  increased  pension  benefits 
under  the  Teachers'  Pension  Plan. 

e)  Other  Benefits 

Disability  and  survivor  benefits  are  available  under  the  Plan. 

2.  SIGNIFICANT  ACCOUNTING  POLICIES 

a)  Basis  of  Presentation 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of  accounting. 

b)  Investments 

Investments  except  real  estate  are  shown  at  their  quoted  market  value.  Real  estate  is 
recorded  at  appraised  values. 

c)  Recognition  of  Investment  Transactions 

i)  Investment  purchases  and  sales  are  accounted  for  on  the  trade-date  basis. 

ii)  Discounts  and  premiums  are  amortized  on  a  constant  yield  basis  over  the 
terms  of  the  investments. 

iii)  Realized  gains  and  losses  are  calculated  using  adjusted  cost  and  are 
recognized  in  the  year  of  disposal.  Adjusted  cost  is  the  average  cost  of 
acquisition  adjusted  by  the  amortization  of  discounts  and  premiums  for  long¬ 
term  investments  and  by  income  attributed  for  units. 

iv)  The  unrealized  appreciation  or  depreciation  is  the  change  between  the 
current  year's  difference  between  the  adjusted  cost  and  market  value  of 
investments  and  last  year's  difference. 


D  74 


PROVINCE  OF  BRITISH  COLUMBIA 


TEACHERS’  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


3.  INVESTMENTS 


Money  market  instruments 

Bonds 

Equities 

Real  Estate 


1991  1990 


Market 

Value 

Adjusted 

Cost 

Market 

Value 

Adjusted 

Cost 

($  Thousands) 

$423,528 

$421,890 

$995,165 

$992,285 

1,686,545 

1,584,904 

1,679,300 

1,705,681 

1,499,911 

1,449,580 

477,663 

485,114 

114,739 

114,574 

2,150 

2,150 

$3,724,723 

$3,570,948 

$3,154,278  $3,185,230 

a)  Money  market  instruments 

Money  market  instruments  consist  of  units  held  in  the  Province  of  British  Columbia 
Pooled  Investment  Portfolios.  There  are  two  funds  which  invest  mainly  in  Canadian 
money  market  securities  and  have  terms  less  than  one  year. 

b)  Bonds 

Bond  investments  have  been  issued  or  guaranteed  by  federal,  provincial  or 
municipal  governments  with  initial  terms  in  excess  of  one  year. 

c)  Equities 

Equities  consist  of  units  held  in  the  Province  of  British  Columbia  Pooled  Indexed, 
Actively  Managed,  Managed  International  and  Passive  International  Investment 
Portfolios. 

d)  Real  Estate  ^ 

Real  Estate  consists  of  units  held  in  the  Province  of  British  Columbia  Real  Estate 
Portfolio  Pool.  This  fund  has  invested  primarily  in  Western  Canadian  properties. 


4. 


INVESTMENT  INCOME 


1991 

1990 

Basic 

Account 

Inflation 

Adjustment 

Account  Total 

Total 

Money  market  instruments 

$  53,615 

($  Thousands) 

$  10,608  $  64,223 

$123,686 

Bonds 

152,588 

20,603 

173,191 

179,939 

Equities 

40,338 

- 

40,338 

11,364 

Real  Estate 

2,902 

- 

2,902 

- 

Net  realized  gains  (losses) 
during  the  year 

52,484 

2,081 

54,565 

(15,903 

$301,927  $  33,292  $335,219  $299,086 


PUBLIC  ACCOUNTS  1991/92 


TEACHERS’  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


D  75 


5.  EARLY  RETIREMENT  PLAN 

An  amendment  to  the  Pension  (Teachers)  Act  in  1988  provided  a  "55  and  Out"  Early 
Retirement  Plan  for  eligible  teachers  who  retired  during  the  period  from  April  1,  1987, 
to  June  30,  1989. 

The  "55  and  Out"  Early  Retirement  Plan  provided  an  incentive  for  teachers  between  the 
ages  of  55  and  60  to  retire  early  by  removing  the  pension  reduction  of  5%  for  each  year 
of  early  retirement  under  age  60.  The  Province,  on  behalf  of  school  districts,  and  the 
British  Columbia  Teachers  Federation  have  agreed  to  pay  amounts  to  the  fund  to  offset 
the  cost  of  this  plan  provision.  The  amounts  paid  each  year  will  be  the  greater  of  the 
salary  savings  resulting  from  replacing  the  retiring  teacher  with  a  teacher  paid  at  a  lower 
salary  or  a  fixed  schedule  of  actuarially  determined  payments  until  such  time  as  the  full 
amount  has  been  paid.  For  the  year  ended  December  31,  1991,  $5,808,506  (1990  - 
$9,137,000)  was  due  and  received  from  the  Province.  No  monies  were  due  for  either 
the  year  ended  December  31,  1991,  or  December  31,  1990  from  the  Federation.  An 
additional  $3,126,870  (1990  -$8,240,834)  will  be  paid  by  the  Province  in  respect  of 
teachers  who  have  elected  to  participate  in  the  Plan. 

6.  ACCOUNT  TRANSFERS 


1991  1990 


Inflation 

Inflation 

Basic 

Adjustment 

Basic 

Adjustment 

Account 

Account 

Account 

Account 

($  Thousands) 

Capitalized  value  of  inflation 

adjustment  supplements  granted 

$59,236 

$(59,236  ) 

$65,772 

$(65,772  ) 

Capitalized  value  of  indexing  of 
highest  average  salary  on 

deferred  pensions 

1,460 

(1,460  ) 

792 

(792  ) 

Excess  interest 

(49,703  ) 

49,703 

(53,048  ) 

53,048 

Other 

(11  ) 

11 

(5) 

5 

$10,982 

$(10,982  ) 

$13,511 

$(13,511  ) 

The  excess  interest  is  the  income  that  is  earned  on  assets  held  in  the  Basic  Account  in 
respect  of  pensions  being  paid,  and  that  is  in  excess  of  income  calculated  using  the 
interest  rate  assumed  by  the  Actuary. 

7.  OBLIGATIONS  FOR  PENSION  BENEFITS 

The  present  value  of  accrued  basic  pension  benefits  was  determined  using  the  projected 
benefit  method  prorated  on  service.  An  actuarial  valuation  was  made  as  of  December 
31,  1990  by  Eckler  Partners,  a  firm  of  consulting  actuaries,  and  was  then  extrapolated 
using  the  administrator's  best  estimate  assumptions  to  December  31,  1991. 


D  76 


PROVINCE  OF  BRITISH  COLUMBIA 


TEACHERS'  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


7.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 

The  extrapolated  actuarial  present  value  of  basic  pension  benefits  as  at  December  31, 
1991  and  the  principal  components  of  expected  changes  in  actuarial  present  values 
during  the  year,  were  as  follows; 


1991 

($  Thousands) 


Actuarial  present  value  of  accrued  pension 

benefits  at  beginning  of  year  $4,666,592 

Capitalized  value  transfers  from  inflation  adjustment  account  60,696 

Benefits  accrued  2 1 6, 1 68 

Benefits  paid  (174,097  ) 

Interest  accrued  on  benefits  308,641 

Expected  present  value  of  accrued  pension 

benefits  at  end  of  year  $5,078,000 


The  assumptions  used  in  determining  the  actuarial  value  of  accrued  pension  benefits 
were  developed  by  reference  to  expected  long-term  market  conditions.  The  significant 
long-term  actuarial  assumptions  used  in  the  valuation  were  also  used  in  the  above 
extrapolation: 


1991  1990 

Asset  rate  of  return  7.0%*  7.0%* 

Salary  escalation  rate  5.0%  5.0% 

*  Returns  in  excess  of  6.5%  during  the  post-retirement  period  are  credited  to  the 
inflation  adjustment  account 

The  actuarial  value  of  net  assets  available  for  benefits  has  been  determined  at  amounts 
that  reflect  long-term  market  trends  (consistent  with  assumptions  underlying  the 
valuation  of  the  accrued  pension  benefits).  The  actuarial  asset  value  used  in  the  latest 
valuation  was  extrapolated  using  the  administrator's  best  estimate  assumptions  to 
December  31,  1991. 


($  Thousands) 

Market  value  of  assets  as  of  December  31,  1990  $2,827,971 

Market  value  changes  not  reflected  in 

actuarial  value  of  net  assets  _ (98,010  ) 

Actuarial  value  of  assets  available  for 
benefits  as  of  December  31,  1990 


$2,729,961 


PUBLIC  ACCOUNTS  1991/92 


TEACHERS’  PENSION  PLAN 

NOTES  TO  FINANCIAL  STATEMENTS 

FOR  THE  YEAR  ENDED  DECEMBER  31,  1991 


D  77 


7.  OBLIGATIONS  FOR  PENSION  BENEFITS  (continued) 
The  extrapolated  asset  values  were: 


1991 

($  Thousands) 


Actuarial  value  of  net  assets  at  beginning  of  year  $2,729,961 

Capitalized  value  transfers  from  inflation  adjustment  account  60,696 

Employee  and  Employer  contributions  232,685 

Benefit  payments  (174,097  ) 

Expected  earnings  183,297 

Expected  value  of  net  assets  at  end  of  year  $3,032,542 


Based  on  the  administrator's  extrapolation  to  calculate  expected  accrued  pension 
benefits  and  value  of  net  assets,  the  unfunded  liability  in  respect  of  accrued  basic 
benefits  is  expected  to  increase  to  $2,045,458,000  as  at  December  31,  1991  from 
$1,936,631,000  as  at  December  31,  1990. 


8.  FUNDING  POLICY 

An  actuarial  valuation  is  undertaken  to  determine  the  plan  sponsors  and  contributor 
contribution  rates.  These  contribution  rates  calculated  by  the  Actuary  were  determined 
under  a  "level  contribution"  fiinding  method.  This  method  expresses  employer 
contributions  as  a  constant  percentage  of  future  payrolls  that,  together  with  future 
member  contributions  and  investment  earnings,  will  finance  the  benefits  for  a  typical 
new  entrant  to  the  Plan  and,  in  addition,  will  maintain  the  unfunded  liability  as  a 
constant  percentage  of  future  payrolls. 

The  Actuary  indicated  in  the  valuation  for  funding  purposes  as  at  December  31,  1990, 
that  the  Plan  had  an  unfunded  actuarial  liability  of  $1,879,067,000  in  respect  of  basic 
pension  benefits,  assuming  future  contributions  continue  at  current  statutory  rates.  The 
Actuary  stated  that  he  did  not  see  the  increase  of  $274,022,000  in  the  unfunded  liability 
from  the  previous  valuation  completed  as  at  December  31,  1987,  as  a  threat  to  the 
continued  payment  of  pensions  to  current  and  prospective  pensioners.  He  does, 
however,  recommend  that  the  statutory  contribution  rates  be  increased  from  their 
current  maximum  combined  rate  of  15.70%  of  total  salaries  to  a  maximum  combined 
rate  of  17.23%  of  total  salaries,  in  respect  of  basic  pension  benefits.  To  date  the 
contribution  rates  have  not  been  changed. 


D  78 


PROVINCE  OF  BRITISH  COLUMBIA 


British  Columbia  Public  Service  Long  Term  Disability  Fund 


Auditor  General  of  British  Columbia 


8  Bastion  Square 
Victoria,  British  Columbia 

AUDITOR'S  REPORT  vsv  ix4 

(604) 387-6803 
Fax  (604)  387-1230 


To  the  Assistant  Deputy  Minister, 

Government  Personnel  Services  Division, 

Ministry  of  Finance  and  Corporate  Relations,  and 


To  the  Minister  of  Government  Services, 
Province  of  British  Columbia: 


I  have  audited  the  statement  of  financial  position  of  the  Province  of  British 
Columbia  Long  Term  Disability  Fund  as  at  March  31,  1992  and  the  statement  of 
changes  in  fund  balance  for  the  year  then  ended.  These  financial  statements  are  the 
responsibility  of  the  Government  Personnel  Services  Division's  management.  My 
responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audit. 

I  conducted  my  audit  in  accordance  with  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  financiEil  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Fund  as  at  March  31,  1992  and  the  changes  in  the  fund 
balance  for  the  year  then  ended  in  accordance  with  the  accounting  principles 
described  in  note  2  to  the  financial  statements. 


Auditor  General 


Victoria,  British  Columbia 
September  15, 1992 


PUBLIC  ACCOUNTS  1991/92 


D  79 


MANAGEMENT'S  RESPONSIBILITY  FOR  FINANCIAL  REPORTING 

The  management  of  Government  Personnel  Services  Division  is  responsible 
for  the  preparation,  integrity  and  objectivity  of  the  British  Columbia 
Public  Service  Long  Term  Disability  Fund's  financial  statements  in 
accordance  with  the  accounting  principles  described  in  note  2  to  the 
financial  statements,  and  for  the  financial  information  included  in  the 
Annual  Report. 

Government  Personnel  Services  Division  maintains  the  necessary  systems 
of  internal  control  to  provide  assurance  that  transactions  are  authorized, 
assets  are  safegaurded  and  that  proper  corporate  and  plan  member  records 
are  maintained. 

The  British  Columbia  Public  Service  Long  Term  Disability  Fund's 
financial  statements  have  been  examined  by  the  Office  of  the  Auditor 
General  of  British  Columbia.  Their  examination  was  made  in  accordance  with 
generally  accepted  auditing  standards  which  included  a  review  of  Government 
Personnel  Services  Division's  internal  controls  to  establish  a  basis  for 
determining  the  nature,  timing,  and  extent  of  audit  tests  to  be  applied. 
Their  report  outlines  the  nature  of  their  examination  and  their  opinion  on 
the  financial  statements  of  the  British  Columbia  Public  Service  Long  Term 
Disability  Fund. 


Manager,  Finance  and  Administration 


D  80 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  PUBLIC  SERVICE 
LONG  TERM  DISABILITY  FUND 
STATEMENT  OF  FINANCIAL  POSITION 
AS  AT  MARCH  31,  1992 


1992  1991 


($ 

Thousands ) 

ASSETS 

Cash 

$  168 

$  98 

Accounts  receivable 

1,660 

1,347 

Accrued  interest 

2,596 

2,875 

Investments  (Note  3) 

85,239 

76,350 

£  89.663 

$  80.670 

LIABILITIES 

Accounts  payable  and 
accrued  liabilities 

$  3,106 

$  2,586 

FUND  BALANCE 

86.557 

78.084 

$  89,663 

$80,670 

The  five  accompanying  notes  are  an  integral  part  of  these  financial 
statements . 


APPROVED  BY; 


Manager,  Finance  and  Administration 


PUBLIC  ACCOUNTS  1991/92 


D  81 


BRITISH  COLUMBIA  PUBLIC  SERVICE 
LONG  TERM  DISABILITY  FUND 
STATEMENT  OF  CHANGES  IN  FUND  BALANCE 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


FUND  BALANCE  INCREASED  BY 

Employers'  contributions 
Income  from  investments 


Total  Increase 


FUND  BALANCE  DECREASED  BY 

Claims  payments 
Contributions  to  other 
employee  benefit  plans 
Claims  administration 
Claims  Review  Committee 
Rehabilitation  programs 


Total  Decrease 


NET  INCREASE  IN 
FUND  BALANCE 

FUND  BALANCE 
AT  BEGINNING  OF  YEAR 

FUND  BALANCE 
AT  END  OF  YEAR 


Crown  Province  Totals 


Corns . 

of  B.C. 

1992 

1991 

$1,958 

$15,175 

$17,133 

$15,151 

1.096 

7.510 

8.606 

8.486 

3^ 0  5  4 

22.685 

25.739 

23.637 

1,854 

12,889 

14,743 

13,152 

201 

1,403 

1,604 

1,335 

34 

279 

313 

335 

3 

92 

95 

92 

511 

511 

258 

2.092  . 

15.174 

17.266 

15.172 

962 

7,511 

8,473 

8,465 

9.945 

68.139 

78.084 

69.619 

;10.907 

S75. 650 

S86.557 

S78.084 

82 


PROVINCE  OF  BRITISH  COLUMBIA 


BRITISH  COLUMBIA  PUBLIC  SERVICE 
LONG  TERM  DISABILITY  FUND 
NOTES  TO  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  DESCRIPTION  OF  THE  LONG  TERM  DISABILITY  PLAN 

The  following  description  of  the  Long  Term  Disability  Plan  is  provided  for 
general  information  only.  However,  for  more  complete  information,  reference 
should  be  made  to  the  Public  Service  Benefit  Plan  Act. 

a)  General 

The  Plan  is  paid  for  by  the  participating  employers  and  provides  for  the 
continuation  of  income  in  the  event  that  an  eligible  employee  of  the  Province 
of  British  Columbia  or  sponsoring  organization  becomes  totally  disabled  due  to 
illness  or  injury. 

b)  Contributions 

The  Province  of  British  Columbia’s  contributions  match  its  share  of  the 
expenditures  from  the  Fund.  Sponsoring  organizations  contribute  a  percentage 
(.25%  -  1.50%)  of  their  employees'  salaries  to  the  Fund,  as  determined  by  the 
Superannuation  Commissioner,  or  subsequent  to  August  31,  1991,  the  Government 
Personnel  Services  Division. 

c)  Disability  Benefits 

Benefits  are  payable  to  a  disabled  employee  after  the  employee  has  been 
totally  disabled  for  at  least  seven  months.  Upon  application  and  approval  by 
the  Plan  claims  administrator.  Great  West  Life  Assurance  Company,  a  monthly 
benefit  of  68.3%  on  the  first  $2,200  of  monthly  earnings  and  50%  of  monthly 
earnings  above  that  amount  is  paid.  Benefits  are  paid  as  long  as  the  employee 
remains  totally  disabled  and  cease  on  the  date  the  employee  recovers,  or  at 
the  end  of  the  month  in  which  the  employee  reaches  normal  retirement  age, 
resigns  or  dies,  whichever  event  occurs  first. 

Employees  on  long  term  disability  continue  to  be  covered  by  the  Group  Life 
Insurance  Plan,  Dental  Plan,  Extended  Health  Care  Plan  and  Medical  Services 
Plan.  Any  required  employee  contributions  to  these  plans  are  paid  by  the  Long 
Term  Disability  Plan  on  behalf  of  the  employee. 


2.  SIGNIFICANT  ACCOUNTING  POLICIES 
a)  Basis  of  Accounting 

These  financial  statements  have  been  prepared  on  the  accrual  basis  of 
accounting.  They  show  only  the  financial  position  of  the  Fund  as  at  March  31, 
1992  and  the  changes  in  financial  position  of  the  Fund  balance  for  the  year 
ended,  and  do  not  purport  to  show  the  adequacy  of  the  Fund  to  meet  the 
obligations  of  the  Long  Term  Disability  Plan. 


PUBLIC  ACCOUNTS  1991/92 


D  83 


BRITISH  COLUMBIA  PUBLIC  SERVICE 
LONG  TERM  DISABILITY  FUND 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


b)  Investments 

(i)  Units  in  Pooled  Investment  Portfolios  are  carried  at  the  cost  of 
acquisition  adjusted  by  income  attributed  to  the  units.  Income  attributed  to 
the  units  represents  the  Fund's  share  of  investment  income  earned  by  the 
Portfolios  and  is  realizable  by  the  Fund  upon  the  sale  of  the  units. 

(ii)  Long-term  bonds  and  notes  are  those  purchased  with  a  term  in 
excess  of  one  year.  They  are  carried  at  cost  of  acquisition  adjusted  by  the 
amortization  of  discounts  and  premiums  on  a  constant  yield  basis  over  the 
remaining  terms  of  the  bonds  and  notes. 


3 .  INVESTMENTS 

The  value  of  investments  held  at  the  end  of  the  year  was  as  follows: 


Adjusted  Cost 


Market  Value 


1992  1991  1992 

($  Thousands) 

Units  in  Province  of 
British  Columbia  Pooled 

Investment  Short-term  Funds  $30,174  $  9,291  $30,164 


Long-term  bonds  and  notes  55,065 _ 67 ,059  58,045 

$85.239  $  76,350  $88,209 


1991 


$  9,340 
68.846 

$78.186 


4.  WITHDRAWAL  OF  THE  B.C.  HAZARDOUS  WASTE  CORPORATION 

The  B.C.  Hazardous  Waste  Corporation  was  dissolved  in  June  of  1992. 
Therefore  no  payments  on  existing  or  future  claims  from  the  Corporation  will 
be  charged  against  the  Fund. 


5 .  ACTUARIAL  VALUATION 

An  actuarial  valuation  of  the  adequacy  of  the  Fund  to  meet  the  obligations 
of  the  Long  Term  Disability  Plan  was  carried  out  as  at  March  31,  1990  by 
William  M.  Mercer  Limited,  a  firm  of  consulting  actuaries.  This  most  recent 
valuation  based  on  a  number  of  assumptions,  disclosed  an  unfunded  liability  of 
$34,128,000  as  at  March  31,  1990,  compared  to  $22,166,000  as  at  March  31, 

1987,  the  date  of  the  previous  valuation. 


D  84 


PROVINCE  OF  BRITISH  COLUMBIA 


Credit  Union  Deposit  Insurance  Corporation  of  British  Columbia 

Deloitte  & 

Touche  

Telephone:  (604)  669-4466 
Telecopier:  (604)  685-0395 


o 


Suite  2000 

1055  Dunsmuir  Street 
P.O.  Box  49279 
Four  Bentall  Centre 
Vancouver,  British  Columbia 
V7X  1 P4 


AUDITORS'  REPORT 


To  the  Board  of  Directors 

Credit  Union  Deposit  Insurance  Corporation  of  British  Columbia 


We  have  audited  the  balance  sheet  of  Credit  Union  Deposit  Insurance  Corporation  of  British  Columbia  as  at 
March  31,  1992  and  the  statements  of  earnings  and  accumulated  earnings  and  changes  in  cash  resources 
for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Corporation's  management. 
Our  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  our  audit. 

We  conducted  our  audit  in  accordance  with  generally  accepted  auditing  standards.  Those  standards  require 
that  we  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  our  opinion,  these  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of  the 
Corporation  as  at  March  31,  1992  and  the  results  of  its  operations  and  the  changes  in  its  financial  position 
for  the  year  then  ended  In  accordance  with  generally  accepted  accounting  principles.  As  required  by  the 
Financial  Institutions  Act  of  British  Columbia,  we  report  that,  in  our  opinion,  these  principles  have  been 
applied  on  a  basis  consistent  with  that  of  the  preceding  year. 


Chartered  Accountants 


Vancouver,  British  Columbia 
May  15,  1992 


k 


PUBLIC  ACCOUNTS  1991/92 


D  85 


Sec  accompanying  notes  to  financial  statements. 


D  86 


PROVINCE  OF  BRITISH  COLUMBIA 


CREDIT  UNION  DEPOSIT  INSURANCE  CORPORATION  OF  BRITISH  COLUMBIA 
STATEMENT  OF  EARNINGS  AND  ACCUMULATED  EARNINGS 


Revenue 

Investments 

Assessments 

Interest  on  assigned  loans 
Recoveries  of  financial  assistance 
Other 


Expenditures 
Debenture  interest 
Financial  assistance  (note  2) 
Administration  (schedule) 

Lease  commitment 

Investment  managers’  fees  (note  7) 

Past  service  pension  contribution  (note  8) 


NET  EARNINGS  (note  4) 

Accumulated  earnings  at  beginning  of  period 
ACCUMULATED  EARNINGS  AT  END  OF  PERIOD 


Year  Ended  Year  Ended 

March  31,  1992  March  31,  1991 


(note  7) 


$ 

11,219,275 

$ 

9,994,518 

0 

5,795,040 

27,545 

47,862 

3,507,125 

1,216,518 

277,795 

61,334 

$ 

15,031,740 

$ 

17,115,272 

5,324,653 

4,626,941 

(3,836,890) 

(196,073) 

2,697,923 

2,728,537 

40,898 

171,393 

124,185 

0 

128,422 

0 

$ 

4,479,191 

$ 

7,330,798 

10,552,549 

9,784,474 

27,223,796 

17,439,322 

$ 

37,776,345 

$ 

27,223,796 

See  accompanying  notes  to  financial  statements. 


PUBLIC  ACCOUNTS  1991/92 


D  87 


t  CREDIT  UNION  DEPOSIT  INSURANCE  CORPORATION  OF  BRITISH  COLUMBIA 
I  STATEMENT  OF  CHANGES  IN  CASH  RESOURCES 

i 

i, 


Year  Ended  Year  Ended 

CASH  PROVIDED  BY  (USED  FOR):  March  31,  1992  March  31,  1991 

(note  7) 


'  OPERATIONS 

Net  earnings 

Items  not  involving  cash 

$ 

10,552,549 

$ 

9,784,474 

Decrease  in  provision  for  financial  assistance, 
charged  to  earnings 

(3,840,140) 

(248,022) 

Changes  in  non-cash  balances  relating  to  operations 

i  Accounts  receivable  and  accounts  payable 

j  Equity  shares  and  subordinated  loans 

3,674,997 

4,439,404 

and  debentures  to  credit  unions 

484,184 

1,560,537 

Mortgage  loans  and  real  estate  held  for  disposal 
Provision  for  financial  assistance,  payments  to 

61,162 

180,895 

credit  unions 

(343,259) 

(34,979) 

$ 

10,589,493 

$ 

15,682,309 

FINANCING  ACTIVITIES 

Issuance  of  debentures 

64,359 

11,430,194 

Redemption  of  debentures 

(19,506,572) 

(37,554) 

$ 

(19,442,213) 

$ 

11,392,640 

Increase  (decrease)  in  cash  resources 

(8,852,720) 

27,074,949 

1  Cash  resources  at  beginning  of  period 

105,266,275 

78,191,326 

CASH  RESOURCES  AT  END  OF  PERIOD 

$ 

96,413,555 

$ 

105,266,275 

(Cash  resources  is  defined  as  cash  and  investments 
including  accrued  interest). 

I i  See  accompanying  notes  to  financial  statements. 


D  88 


PROVINCE  OF  BRITISH  COLUMBIA 


CREDIT  UNION  DEPOSIT  INSURANCE  CORPORATION  OF  BRITISH  COLUMBIA 
SCHEDULE  OF  ADMINISTRATION  EXPENSES 


Year  Ended 

Year  Ended 

March  31,  1992 

March  31,  1991 
(note  7) 

Audit 

B.C.  Central  Credit  Union 

$  9,000 

$  12,000 

Line  of  Credit,  Standby  Charge 

0 

31,250 

Directors’  fees 

4,205 

10,713 

Insurance 

767 

(547) 

Legal 

774 

4,389 

Office  operations 

408,670 

222,621 

Office  rent 

312,031 

229,309 

Professional  services,  other 

174,378 

246,069 

Publications  and  communications 

1,584 

3,906 

Salaries  and  employee  benefits 

1,706,389 

1,875,462 

Travel  costs 

80,125 

93,365 

$  2,697,923 

$  2,728,537 

PUBLIC  ACCOUNTS  1991/92 


D 


CREDIT  UNION  DEPOSIT  INSURANCE  CORPORATION  OF  BRITISH  COLUMBIA 
NOTES  TO  FINANCIAL  STATEMENTS 
YEAR  ENDED  MARCH  31,  1992 

OPERATIONS 

Credit  Union  Deposit  Insurance  Corporation  (CUDIC)  operates  as  an  independent 
entity  from  within  the  Financial  Institutions  Commission  (FICOM)  under  the 
provisions  of  Financial  Institutions  Act  (FLA).  The  mandate  of  CUDIC  is  to  guarantee 
deposits  and  non-equity  shares  of  members  of  British  Columbia  credit  unions  up  to  the 
limits  prescribed  by  FLA.  To  meet  this  objective,  CUDIC  provides  financial  assistance 
to  credit  unions  which  have  come  under  its  supervision.  CUDIC  also  undertakes 
administrative  and  regulatory  functions  as  set  out  in  the  Act. 

The  amount,  timing  and  form  of  assistance  which  may  be  required  for  credit  unions 
under  supervision  is  dependent  on  future  events  and  outcomes.  Three  outcomes 
requiring  assistance  are  rehabilitation,  merger  or  liquidation  of  credit  unions.  In  the 
event  of  a  liquidation,  CUDIC’s  liability  to  depositors  is  limited  to  the  prescribed 
limits  of  the  Act.  CUDIC  is  empowered  to  assess  credit  unions  and  to  issue 
debentures  to  them  to  raise  additional  funds  if  such  funds  are  required  for  assistance. 
Provision  for  financial  assistance  in  amounts  determined  to  be  likely  as  well  as  a 
general  provision  are  provided  in  these  financial  statements. 

CUDIC  has  planned  not  to  assess  credit  unions  in  1992  as  the  required  level  of 
Deposit  Insurance  Fund  was  attained  in  1991/92  fiscal  year.  Stabilization  Central 
Credit  Union  (SCCU)  will  assess  credit  unions  to  build  up  its  portion  of  the  Deposit 
Insurance  Fund  with  an  agreement  in  place  between  CUDIC  and  SCCU  stipulating 
that  future  financial  assistance  payments  will  be  initially  made  from  the  SCCU  Fund. 


D  90 


PROVINCE  OF  BRITISH  COLUMBIA 


1.  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES 

(a)  Investments 

All  CUBIC  investments  are  made  through  investment  managers  according  to 
a  specific  policy  approved  by  the  Board  of  Directors.  Premiums  and  discounts 
arising  at  the  time  of  purchase  of  marketable  securities  are  amortized  over  the 
period  to  maturity. 

(b)  Financial  Assistance  to  Credit  Union 

CUDIC’s  policy  for  providing  for  losses  on  purchases  of  equity  shares  of  credit 
unions  and  on  conditional  loans,  subordinated  loans  and  subordinated 
debentures  to  credit  unions  is  based  on  CUDIC’s  estimate  of  the  probability  of 
recovery  of  such  investments  and  loans.  Where  deemed  prudent,  a  general 
provision  may  also  be  provided. 

All  other  financial  assistance  is  recognized  as  an  expense  in  the  financial 
statements  upon  the  earlier  of  disbursement  of  assistance  or  when  such 
assistance  has  been  determined  to  be  likely  and  the  amount  can  be  reasonably 
estimated. 

Mortgage  loans  and  real  estate  held  for  disposal  are  carried  at  net  realizable 
value.  Value  is  attributed  to  third  party  loans  received  as  a  consequence  of 
assistance  given  only  where  such  loans  are  fully  secured  by  a  mortgage  on  real 
property.  No  value  is  attributed  to  unsecured  loans  or  loans  secured  by  other 
than  real  property.  At  March  31,  1992,  the  outstanding  amount  of  loans  which 
have  no  carrying  value  but  on  which  payments  are  being  received  is  $32,818 
(March  31,  1991,  $39,245).* 


PUBLIC  ACCOUNTS  1991/92 


D  91 


(c)  Related  Party  Transactions 

Almost  all  administrative  expenses  of  CUDIC,  including  employees’  salaries 
and  benefits,  are  paid  through  the  B.C.  government.  The  allocation  of  direct 
salaries  to  CUDIC  is  estimated  based  on  the  activities  performed  by  FICOM 
staff  on  tasks  pertinent  to  the  mandate  of  CUDIC.  Other  expenses  including 
overhead  are  allocated  to  CUDIC  according  to  departmental  averages  and 
CUDIC’s  estimated  share  of  activities  in  the  department  and/or  organizational 
function. 

FINANCIAL  ASSISTANCE 


(a)  Assistance  to  Credit  Unions 


Details  of  assistance  to  credit  unions  are  as  follows: 


March  31, 
1992 

Subordinated  debentures  $  657,487 

Subordinated  loans  150,000 

Equity  shares  10,000,000 

$10,807,487 

Less: 

Loan  reserves  200,000 

$  10,607,487 


March  31, 
1991  (note  7) 

$  1,201,671 

150,000 

10,000,000 

$11,351,671 

260,000 
$  11,091,671 


None  of  the  above  assets  are  currently  interest  bearing  and  are  not  scheduled 
for  repayment  within  the  next  fiscal  year. 


D  92 


PROVINCE  OF  BRITISH  COLUMBIA 


At  March  31,  1992,  3  credit  unions  (March  31,  1991,  8)  were  under  supervision 
by  CUDIC  and  responsibility  for  supervising  another  3  credit  unions  (March  31, 
1991,  5)  was  delegated  by  CUDIC  to  Stabilization  Central. 


(b)  Provision  for  Financial  Assistance 


Provision  for  financial  assistance, 
beginning  of  period 

Less  payments  to  credit  unions 

Decrease  in  provision 
charged  to  earnings 

Provision  for  financial  assistance, 
end  of  period 


Year  Ended 
March  31,  1992 


$  6,465,399 
(343,259) 

r3.840.14Ql 

$  2.282.000 


Year  Ended 
March  31,  1991 
(note  71 

$  6,748,400 
(34,979) 

(248.0221 


(C) 


Financial  Assistance  Charged  to  Earnings 


Year  Ended 
March  31,  1992 


Year  Ended 
March  31,  1991 
(note  71 


Decrease  in  provision  for  financial 
assistance,  charged  to  earnings 

Other  assistance 

Net  financial  assistance  charged 
(recovered)  to  earnings 


(3,840,140) 
$  3.250 

$  (3.836.8901 


(248,022) 
$ _ 5Lm_ 

$  (196.0731 


3.  DEBENTURES  ISSUED  TO  CREDIT  UNIONS 


Debentures  are  issued  to  credit  unions  in  accordance  with  provisions  of  FLA  The 
debentures  are  issued  for  a  term  of  25  years,  are  subject  to  earlier  redemption,  and 
may  be  re-issued  before  or  at  maturity  at  the  option  of  CUDIC. 

CUDIC  may  fix  interest  on  the  debentures  from  time  to  time  not  exceeding  18%  per 
annum.  Interest  is  accrued  and  paid  based  on  rates  set  on  August  1  of  each  year. 


PUBLIC  ACCOUNTS  1991/92 


D  93 


Interest  rates  applicable  to  the  years  ended  July  31,  1991  and  1990,  and  April  30,  1989 
have  been  5  1/2%.  Interest  rate  for  the  year  ending  July  31,  1992  has  been  set  at  8 
1/2%. 

On  July  31,  1991  $19,506,572  of  outstanding  debentures  were  redeemed  while  $64,359 
new  debentures  were  issued  to  some  credit  unions  in  order  to  maintain  their  asset 
size/debenture  ratio  requiring  adjustment  due  to  substantial  asset  growth  in  these 
credit  unions. 

4.  INCOME  TAXES 

CUBIC  is  taxed  as  a  deposit  insurance  corporation  and  is  subject  to  income  tax  on  its 
income  for  tax  purposes,  which  is  defined  generally  to  exclude  assessments  from  and 
financial  assistance  (or  recovery  thereof)  to  credit  unions. 

Non-capital  tax  losses  as  at  March  31,  1992  are  approximately  $663,000  which  will 
expire  in  1996. 

5.  LEASE  COMMITMENT 

Commencing  November  1,  1983,  CUBIC  entered  into  a  ten  year  lease  of  office 
premises,  with  a  five  year  renewal  option.  Minimum  lease  payments  for  the  initial  ten 
year  period  are  $250,416  per  annum.  In  addition,  CUBIC  is  liable  to  pay  property 
taxes  and  operating  costs.  Minimum  lease  payments  for  the  five  year  renewal  period, 
should  the  option  be  exercised,  will  be  based  on  fair  market  rental  as  of  November  1, 
1992  but  in  any  case  will  not  be  less  than  the  rent  payable  during  the  initial  ten  year 
term. 

Effective  January  1,  1990,  CUBIC’s  lease  was  assigned  by  way  of  a  lease  assignment 
contract.  CUBIC  remains  on  the  covenant  for  the  remainder  of  the  lease  term  which 


D  94 


PROVINCE  OF  BRITISH  COLUMBIA 


may  extend  to  November  1,  1998.  CUDIC’s  covenant  is  indemnified  by  the  parent  of 
the  assignee. 

6.  LIQUIDITY 

CUDIC  maintains  a  line  of  credit  in  the  amount  of  $50,000,000  to  meet  short-term 
deposit  insurance  requirements.  Any  drawings  against  this  line  of  credit  would  be 
secured  by  CUDICs  investments. 

7.  COMPARATIVE  FIGURES 

CUDIC  changed  its  year  end  to  March  31,  commencing  in  1991.  The  March  31,  1991 
numbers  are  unaudited,  but  were  subjected  to  a  review  engagement  by  CUDIC’s 
auditors. 

Investment  managers’  fees  were  netted  against  investment  income  in  previous  years. 

8.  PAST  SERVICE  CONTRIBUTION 

A  one  time  payment  was  approved  by  CUDIC’s  Board  of  Directors  for  transfer  of  ex- 
CUDIC  employees’  pension  plan  to  Superannuation  Pension  Plan  so  that  these 
employees  would  qualify  for  equivalent  service  years. 


PUBLIC  ACCOUNTS  1991/92 


D  95 


Workers'  Compensation  Board 


Auditor  General  of  British  Columbia 


AUDITOR’S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)  387-6803 
Fax  (604)  387-1230 


To  the  Chairman 

and  Governors  of  the  Workers’  Compensation  Board,  and 

To  theMinister  of  Labour  and  Consumer  Services 

and  Minister  Responsible  for  Constitutional  Affairs, 
Province  of  British  Columbia: 


I  have  audited  the  balance  sheet  of  the  Workers’  Compensation  Board  as  at  December  31,  1991  and  the 
statements  of  income  and  expense  and  unappropriated  balance,  changes  in  fund  liabilities  and  changes  in 
financial  position  for  the  year  then  ended.  These  financial  statements  are  the  responsibility  of  the  Board’s 
management.  My  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my  audit. 

I  conducted  my  audit  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the  financial  position  of  the 
Board  as  at  December  3 1 , 1 99 1  and  the  results  of  its  operations  and  the  changes  in  its  fund  liabilities  and  financial 
position  for  the  year  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  F.C.A. 
Auditor  General 


Victoria,  British  Columbia 
March  6,  1992 


96 


PROVINCE  OF  BRITISH  COLUMBIA 


RESPONSIBILITY  FOR  FINANCIAL  REPORTING 


Management  of  the  Workers’  Compensation  Board  is  responsi¬ 
ble  for  the  preparation  of  the  accompanying  financial  statements  in 
accordance  with  generally  accepted  accounting  principles.  These 
financial  statements  include  some  amounts  based  upon  manage¬ 
ment’s  best  estimates  and  judgments.  Any  financial  information 
contained  elsewhere  in  the  Annual  Report  conforms  to  these  finan¬ 
cial  statements. 

Management  is  responsible  for  the  integrity  of  the  financial 
statements  and  has  established  systems  of  internal  control  to  provide 
reasonable  assurance  that  assets  are  properly  accounted  for  and 
safeguarded  from  loss. 

The  Internal  Audit  and  Evaluation  Department  performs  audits 
designed  to  test  the  adequacy  and  consistency  of  the  Board’s  internal 
controls,  practices  and  procedures. 

The  Auditor  General  of  British  Columbia,  the  external  auditor  of 
the  Workers’  Compensation  Board,  has  performed  an  independent 
audit  of  the  financial  statements  of  the  Board  in  accordance  with 
generally  accepted  auditing  standards.  The  Auditor’s  Report  outlines 
the  scope  of  this  independent  audit  and  his  opinion  on  the  financial 
statements  of  the  Board. 

The  firm  of  Eckler  Partners  Ltd.  has  been  appointed  as  the 
independent  consulting  actuaries  to  the  Board.  Their  opinion  on  the 
adequacy  and  appropriateness  of  the  valuation  of  the  Board’s  actu¬ 
arial  liabilities  is  presented  as  a  part  of  these  financial  statements. 


James  E.  Dorsey 

Chairman 

Board  of  Governors 


Kenneth  M.  Dye,  F.C.A.  W.F.R.  Evans,  C.A. 
President  and  Chief  Vice-President 
Executive  Officer  Financial  Services 


March  11,  1992 


PUBLIC  ACCOUNTS  1991/92 


D  97 


BALANCE  SHEET 

EXHIBIT  1 

AS  AT  31  DECEMBER  1991  (in  $,000’s) 

1991 

1990 

ASSETS 

Assessments  and  accrued  interest  receivable 

239,469 

220,806 

Deposit  account  unfinalled  claims  receivable 

92,274 

84,291 

Portfolio  investments  (Note  4) 

3,579,230 

3,303,451 

Capital  assets  (Note  6) 

81,971 

61,182 

3,992,944 

3,669,730 

LIABILITIES,  RESERVES  AND  UNAPPROPRIATED  BALANCE 

Accounts  payable  and  accrued  liabilities 

40,962 

20,874 

Deferred  portfolio  investment  gains  (losses)  (Note  5) 

20,447 

(31,729) 

Accident  fund: 

Liabilities  (Exhibit  3) 

3,824,952 

3,509,109 

Special  reserves  (Note  8) 

40,000 

40,000 

Unappropriated  balance  (Exhibit  2) 

66,583 

131,476 

3,992,944 

3,669,730 

The  accompanying  thirteen  notes  are  an  integral  part  of  these  financial  statements. 


Approved  by: 

James  E.  Dorsey 

Chairman 

Board  of  Governors 


Kenneth  M.  Dye,  F.C.A. 
President  and  Chief 
Executive  Officer 


^ 

W.F.R.  Evans,  C.A. 
Vice-President 
Financial  Services 


D  98 


PROVINCE  OF  BRITISH  COLUMBIA 


STATEMENT  OF  INCOME  AND  EXPENSE  AND  UNAPPROPRIATED  BALANCE 
FOR  THE  YEAR  ENDED  31  DECEMBER  1991  (in  $,000’s) 


1991  1990 

INCOME 


Assessments 


Classes 

531,495 

514,660 

Deposit  accounts 

37,647 

28,953 

Penalties 

4,281 

3,718 

573,423 

547,331 

Occupational  Health  &  Safety  penalties 

2,149 

3,697 

575,572 

551,028 

Investment  income 

Earned  for  the  year 

327,437 

333,578 

Amortization  of  portfolio  investment  gains  (losses)  (Note  5) 

2,180 

(8,719) 

329,617 

324,859 

905,189 

875,887 

EXPENSE 

Compensation  costs 

Current  year  claims 

Wage  loss  compensation 

146,803 

137,624 

Medical  aid  payments 

49,412 

47,081 

Pension  awards,  capitalized  values 

15,038 

20,269 

Provision  for  unfinalled  claims 

346,379 

329,695 

557,632 

534,669 

Prior  years’  claims 

Adjustment  to  fund  liabilities  (Note  7) 

225,614 

298,390 

Special  reserves  costs  (Note  8) 

35,697 

24,997 

818,943 

858,056 

Administration  and  other  expenses 

Administration 

141,625 

119,104 

Review  Board  and  Advisers 

8,853 

6,756 

Research  grants  and  awards 

661 

3,681 

151,139 

129,541 

970,082 

987,597 

NET  LOSS 

(64,893) 

(111,710) 

UNAPPROPRIATED  BALANCE  -  1  January 

131,476 

243,186 

UNAPPROPRIATED  BALANCE  -  31  December  (Exhibit  1) 

66,583 

131,476 

PUBLIC  ACCOUNTS  1991/92 


D  99 


STATEMENT  OF  CHANGES  IN  FUND  LIABILITIES 
FOR  THE  YEAR  ENDED  31  DECEMBER  1991  (in  $,000’s) 

'  '  EXHIBIT  3 


Accident 

Silicosis 

Total 

1991 

1990 

ADDITIONS  TO  THE  FUND  LIABILITIES 
Current  year  claims 

Provision  for  unfinalled  claims 

345,443 

936 

346,379 

329,695 

Pension  awards,  capitalized  values  (Note  9)  32, 149 

73 

32,222 

33,966 

Prior  years’  claims 

Adjustment  to  fund  liabilities  (Note  7) 

224,110 

1,504 

225,614 

298,390 

601,702 

2,513 

604,215 

662,051 

DEDUCTIONS  FROM  THE  FUND  LIABILITIES 

Pensions  paid 

174,130 

2,526 

176,656 

164,946 

Wage  loss  compensation 

65,988 

(7) 

65,981 

57,899 

Medical  aid  payments 

45,543 

192 

45,735 

41,785 

285,661 

2,711 

288,372 

264,630 

CURRENT  YEAR  INCREASE  (DECREASE) 

316,041 

(198) 

315,843 

397,421 

BALANCE  - 1  January 

3,478,908 

30,201 

3,509,109 

3,111,688 

BALANCE  -  31  December  (Exhibit  1) 

3,794,949 

30,003 

3,824,952 

3,509,109 

Represented  by: 

Provision  for  unfinalled  claims 

1,839,069 

8,796 

1,847,865 

1,652,604 

Pension  awards,  capitalized  values 

1,955,880 

21,207 

1,977,087 

1,856,505 

3,794,949 

30,003 

3,824,952 

3,509,109 

D  100 


PROVINCE  OF  BRITISH  COLUMBIA 


STATEMENT  OF  CHANGES  IN  FINANCIAL  POSITION 

EXHIBIT 

FOR  THE  YEAR  ENDED  31  DECEMBER  1991  (in  $,000’s) 

1991 

1990 

OPERATING  ACTIVITIES 

Net  loss 

(64,893) 

(111,710) 

Add  (deduct)  items  not  requiring  cash: 

Provision  for  unfinalled  claims 

346,379 

329,695 

Adjustment  to  fund  liabilities  (  Note  7  ) 

225,614 

298,390 

Increase  (decrease)  in  special  reserves 

- 

(183) 

Pension  awards,  capitalized  values  (Note  9) 

31,650 

33,307 

Depreciation 

10,102 

10,459 

Loss  (gain)  on  disposal  of  capital  assets 

33 

(104) 

Pension  payments  recovered  from  third  parties  (Note  9) 

572 

659 

Deduct  cash  applied  in  settlement  of  fund  liabilities: 

Pensions  paid 

(176,656) 

(164,946) 

Wage  loss  compensation 

(65,981) 

(57,899) 

Medical  aid  payments 

(45,735) 

(41,785) 

Funds  provided  by  operating  activities 

261,085 

295,883 

OTHER  ACTIVITIES 

Purchase  of  capital  assets 

(31,056) 

(11,361) 

Proceeds  from  the  disposal  of  capital  assets 

132 

543 

Increase  (decrease)  in  deferred  portfolio  investment  gains 

52,176 

(30,479) 

Increase  in  assessments  and  accrued  interest  receivable 

(18,663) 

(22,776) 

Increase  in  accounts  payable  and  accrued  liabilities 

20,088 

4,484 

Increase  in  deposit  account  unfinalled  claims  receivable 

(7,983) 

(4,362) 

Funds  provided  by  (applied  to)  other  activities 

14,694 

(63,951) 

INCREASE  IN  PORTFOLIO  INVESTMENTS 

275,779 

231,932 

PORTFOLIO  INVESTMENTS  - 1  January 

3,303,451 

3,071,519 

PORTFOUO  INVESTMENTS  -  31  December 

3,579,230 

3,303,451 

PUBLIC  ACCOUNTS  1991/92 


U  101 


NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  31  DECEMBER  1991 


Note  1  -  Nature  of  Operations 

The  Workers’  Compensation  Board,  enacted  by  the  British  Columbia  Legislature  in  1917,  administers  the  Workers 
Competisation  Act. 

Tlic  primary  functions  of  the  Board  under  the  Act  are  promotion  of  occupational  health  and  safety;  compensation  for 
industrial  injury,  death  or  disease;  rehabilitation  of  injured  workers;  and  collection  of  the  funds  necessary  for  its  operations 
from  employers  covered  under  the  Act. 

Assessment  rates  are  established  at  a  level  to  recover  current  operating  costs,  and  current  and  future  compensation  costs 
arising  from  current  claims,  from  current  employers. 

The  Board  does  not  receive  government  funding  or  other  assistance. 

Note  2  -  Significant  Accounting  Policies 

(a)  Fund  Accounting 

Although  the  liabilities  and  reserves  of  the  Board  arc  allocated  to  the  Accident  and  Silicosis  Funds  and  various  sub¬ 
divisions  thereof,  the  assets  are  recorded  on  a  pooled  basis  with  no  allocation  of  individual  assets  to  specific  funds. 

(b)  Portfolio  Investments 

Fixed-term  investments,  having  terms  greater  than  one  year,  consisting  primarily  of  bonds  of  the  Government  of 
Canada,  various  Provinces  and  Crown  corporations,  arc  stated  at  amortized  cost.  Gains  and  losses  realized  on  disposal 
of  fixed-term  investments  during  the  year  are  deferred  and  amortized  on  a  straight-line  basis  over  a  five  year  period. 

Equity  investments,  consistingofCanadian  equities  only,  arestated  at  market  value.  The  amount  by  which  market  value 
differs  from  cost  represents  an  unrealized  gain  or  loss.  Unrealized  gains  and  losses  occurring  during  the  year,  together 
with  gains  and  losses  realized  on  disposal  of  equities  during  the  year,  are  deferred  and  amortized  on  a  straight-line  basis 
over  a  five  year  period. 

Fixed-term  investments,  having  terms  less  than  or  equal  to  one  year,  consisting  primarily  of  treasury  bills  and  dis¬ 
counted  bank  notes,  are  stated  at  amortized  cost. 

(c)  Capital  Assets 

Capital  assets  are  reported  at  cost  and  are  depreciated  on  a  straight-line  basis  over  their  estimated  useful  lives.  The  rates 
used  are  as  follows: 

Buildings . 20  to  40  years 

Equipment . 3  to  10  years 

Furniture . 10  years 

Vehicles . 5  years 

(d)  Accident  and  Silicosis  Fund  Liabilities 

The  Board  appoints  a  consulting  actuary  who  examines  the  Fund  liabilities  and  the  underlying  assumptions  and 
methods.  The  report  of  the  consulting  actuary  is  appended  to  these  financial  statements. 

(i)  Unfinalled  Claims 

Provisions  for  future  claims  costs  relating  to  injuries  occurring  prior  to  31  December  1991,  for  which  the  final 
settlement  has  not  been  determined,  represent  the  unfinalled  claims  liabilities  which  are  part  of  the  Accident  and 
SUicosis  Funds  established  under  Sections  39(l)(c)  and  4l(2)(b)  of  the  Workers  Compensation  Act.  Wage  loss 
compensation  and  medical  aid  payments  made,  and  the  capitalized  value  of  pension  awards  granted,  after  the  year 
of  injury  (or  after  the  year  in  which  the  claim  is  allowed,  in  the  case  of  Silicosis),  are  charged  to  the  respective 
unfinalled  claims  liabilities. 

Estimates  for  finalled  and  unfinalled  claims  which  occurred  on  or  before  December  3 1  are  based  upon  past 
experience,  modified  for  current  trends.  While  significant  judgmental  factors  arc  included  in  the  determination, 
management  believes  that  the  amounts  provided  for  are  adequate. 

(ii)  Pensions 

Capitalized  values  of  pension  awards  are  credited  to  the  pension  liability  provisions,  which  are  then  charged  with 
pensions  paid.  When  a  pension  is  awarded  for  an  injury  which  occurred  in  the  current  year,  its  capitalized  value  is 


D  102 


PROVINCE  OF  BRITISH  COLUMBIA 


treated  as  a  current  period  expense.  In  the  case  of  a  pension  awarded  after  the  year  of  the  injury  (or  after  the  year  in 
which  the  claim  is  allowed,  in  the  case  of  Silicosis),  the  capitalized  value  of  the  pension  is  charged  to  the  appropriate 
unfinalled  claims  liability. 

(e)  Reserves 

Accident  Fund  special  reserves  established  pursuant  to  Section  39  of  the  Workers  Compensation  Act  are: 

-  Contingent  Reserve  [Section  39(1  )(!:>)]  which  provides  a  reserve  in  aid  of  industries  or  classes  which  may  become 
depleted  or  extinguished. 

-  Disaster  Reserve  [Section  39(1  )(d)]  which  provides  a  reserve  to  be  used  to  meet  the  loss  arising  from  a  disaster  or 
other  circumstances  which  the  Board  considers  would  unfairly  burden  the  employers  in  a  particular  class. 

-  Enhancement  Reserve  [Section  39(1  )(e)]  which  provides  a  reserve  for  payment  of  that  portion  of  a  disability 
enhanced  by  reason  of  a  pre-existing  disease,  condition  or  disability. 

Claims  deemed  by  the  Board  to  be  covered  by  these  reserves  are  charged  to  current  operations. 

The  Board  determines  the  amounts  required  to  maintain  these  reserves  at  an  adequate  level  and  resulting  appropria¬ 
tions  are  prorated  to  the  various  employer  classes. 

(0  Current  Year  Claims 

Wage  loss  compensation  and  medical  aid  payments  represent  expenditures  resulting  from  injuries  which  occurred 
during  the  current  year.  Amounts  recorded  as  “Pension  awards,  capitalized  values”  and  as  “Provision  for  unfinalled 
claims”  are  the  actuarial  estimates  of  the  present  values  of  future  payments  resulting  from  injuries  which  occurred  during 
the  current  year.  The  calculation  of  the  present  value  provides  for  the  future  indexation  of  pensions  by  assuming  that  the 
annual  rate  of  return  on  the  Board’s  investments  will  exceed  the  annual  increase  in  the  Consumer  Price  Index  (CPI)  by 
2-3/8%. 

(g)  Prior  Years’ Claims 

The  Board  determines  its  liabilities  at  the  end  of  each  year  for  all  injuries  that  have  taken  place  to  that  time.  During  the 
following  year,  it  makes  benefit  payments  and  sets  new  awards  on  those  prior  injuries;  benefits  are  also  increased  in  line 
with  increases  in  the  CPI.  Investment  income  is  also  earned  on  the  assets  available  to  finance  those  liabilities.  At  the  end 
of  the  following  year,  the  Board  redetermines  its  actuarial  requirements  for  those  prior  injuries,  taking  into  account  the 
actual  investment  income,  benefit  increases,  claims  payments  and  pension  awards  made  during  the  year.  The  actuarial 
assumptions  used  in  those  calculations  may  also  be  modified  to  include  the  more  recent  experience  of  such  factors  as 
mortality,  claims  levels  and  claims  costs.  This  process  results  in  an  adjustment  to  the  fund  liabilities  and  reserves. 

(h)  Assessment  Income  and  Assessments  Receivable 

As  a  significant  portion  of  assessment  income  for  the  year  is  not  received  until  after  the  year-end,  the  amount  shown  is 
an  estimate  based  on  statistical  data.  The  difference  between  the  estimate  and  the  actual  income  received  is  credited  or 
charged  to  income  in  the  following  year. 

(i)  Deposit  Account  Unfinalled  Claims  Receivable 

Certain  employers  have  been  placed  in  deposit  classes.  These  employers  are  billed  on  a  monthly  basis  for  wage  loss 
compensation,  medical  aid  payments  and  the  capitalized  value  of  pension  awards  made  on  their  behalf,  together  with 
their  proportionate  share  of  administrative  costs. 

The  receivable  represents  the  present  value  of  the  estimated  future  payments  for  the  unfinalled  claims  of  deposit 
classes,  less  deposits  required  to  be  placed  on  account  with  the  Board.The  Board  also  acts  as  the  agent  of  the  Government 
of  Canada  for  the  payment  of  compensation  to  federal  employees  in  British  Columbia.  Amounts  paid  are  recovered  from 
the  Government  of  Canada  on  a  monthly  basis. 


Note  3  -  Changes  in  Accounting  Policies 
(a)  Portfolio  Investments 

During  1991,  the  Board  adopted  a  policy  whereby  fixed-term  investments,  over  one  year,  are  valued  at  amortized  cost 
withafive-year  deferral  and  amortization  of  realized  gains  or  losses.  Generally  accepted  accounting  principles  require  the 
valuation  of  fixed-term  investments,  over  one  year,  to  be  based  on  amortized  cost.  In  1990,  these  investments  were 


PUBLIC  ACCOUNTS  1991/92 


D  103 


valued  at  market  with  a  five-year  deferral  and  amortization  of  both  realized  and  unrealized  gains  or  losses  which  resulted 
in  investment  income  reflecting  current  yiclds.This  new  accounting  policy  has  been  applied  retroactively  and  the  prior 
year  results  have  been  restated. 

(b)  Superannuation  Plan  Expenses 

During  1991,  the  Board  changed  the  method  of  accounting  for  pension  costs  and  obligations  to  conform  to  the 
recommendations  of  the  Canadian  Institute  of  Chartered  Accountants  (CICA).  The  new  policy  records  the  pension 
expense  for  the  year.  In  1990,  the  Board  recorded  the  actual  pension  contributions  to  the  Plan  for  the  year. 

This  new  accounting  policy  has  been  applied  retroactively  and  the  prior  year  results  have  been  restated. 

(c)  Restated  Balances 

The  above  noted  changes  require  that  assessment  income,  deposit  accounts,  be  restated. 

The  effects  of  the  above  noted  changes  in  1 990  are: 


Increase  in  Unappropriated  balance  -  1  januar)' 

$  17,637,000 

Increase  in  Investment  income 

21,007,000 

Decrease  in  Assessment  income 

(2,172,000) 

Decrease  in  Administration  and  other  expenses 

2,357,000 

Increase  in  Unappropriated  balance  -  3 1  December 

$  38;829,000 

Note  4  -  Portfolio  Investments  ($,000’s) 

1991 

1990 

Fixed-term  investments,  over  one  year,  amortized  cost 

(market  value:  1991-2,937,194;  1990-2,467,257) 

2,739,041 

2,551,371 

Equities,  market  value 

644,535 

387,720 

Fixed-tenn  investments,  under  one  year,  amortized  cost 

21 1,604 

377,455 

Bank  indebtedness 

(15,950) 

(13,095) 

3,579^230 

3,303,451' 

Note  5  -  Deferred  Portfolio  Investment  Gains  (Losses)  ($,000’s) 

1991 

1990 

Balance  - 1  January 

(31,729) 

(1,250) 

Realized  net  gains  (losses)  for  the  year 

21,171 

(17,923) 

Unrealized  net  gains  (losses)  for  the  year 

_ ^33J85 

(21,275) 

22,627 

(40,448) 

Amortization  credited  (charged)  to  investment  income 

2,180 

(8,719) 

Balance -31  December 

20,447 

(31,729) 

Note  6  -  Capital  Assets  ($,000’s) 

1991 

1990 

Net 

Net 

Accumulated 

Book 

Book 

Cost 

Depreciation 

Depreciation 

Value 

Value 

Land 

5,950 

- 

- 

5,950 

“2T00' 

1  Buildings 

Furniture, 

65,810 

1,347 

15,128 

50,682 

37,038 

1  Equipment 

1  &  Vehicles 

63,957 

8,755 

38,618 

25,339 

22,044 

i  Totals 

135,717 

10,102 

53,746 

81,971 

61,182 

D  104 


PROVINCE  OF  BRITISH  COLUMBIA 


Note  7  -  Adjustment  to  Fund  Liabilities  ($,000’s) 

1991 

1990 

Accident 

Fund 

Silicosis 

Fund 

Total 

Total 

Investment  income  allocation 

Adjustment  to  prior  years’  actuarial  estimates 

326,639 

(102,529) 

2,978 

(1,474) 

329,617 

(104,003) 

324,859 
(  26,469) 

Totals 

224,110 

1,504 

225,614 

298,390 

Note  8  -  Special  Reserves  ($,000’s) 

1991 

19^0 

Contingent 

Disaster 

Enhancement 

Total 

Total 

Special  Reserves  Costs 

Pension  awards,  capitalized  values 

Wage  loss  compensation 

Medical  aid  payments 

1,930 

650 

190 

14,682 

14,840 

3,405 

16,612 

15,490 

3,595 

13,038 

9,557 

2,585 

- 

2,770 

32,927 

35,697 

25,180 

Decrease  in  special  reserves 

183 

Totals 

2,770 

32,927 

35,697 

24,997 

The  Special  reserves  balance  at  31  December  is  represented  by: 
Contingent 

Disaster 

Enhancement 

2,500 

16,500 

21,000 

2,500 

16,500 

21,000 

Balance  -  3 1  December 

40,000 

40,000 

Note  9  -  Pension  Awards,  Capitalized  Values  ($,000’s) 

1991 

_ 1990 

Pension  awards,  capitalized  values: 

Total 

Charged  to  provision  for  unfinalled  claims 

Current  year  claims 

183,805 

151,583 

32,222 

188,885 

154,919 

33,966 

Charged  to: 

Current  year  claims  (Exhibit  2) 

Special  reserves  (Note  8) 

15,038 

16,612 

20,269 

13,038 

Pension  payments  recovered  from  third  parties  (Exhibit  4) 

31,650 

572 

33,307 

659 

32,222 

33,966 

Note  10  -  Superannuation  Plan 

The  Board  and  its  employees  contribute  to  the  Workers’  Compensation  Board  Superannuation  Plan,  a  defined  benefit 
plan.  The  plan  provides  pensions  based  on  length  of  service  and  best  five  years  average  earnings.  For  funding  purposes  and 
to  determine  the  contribution  rate,  the  Plan  requires  an  actuarial  valuation  of  the  Plan’s  liabilities  at  intervals  of  not  more  than 
three  years.  The  last  valuation  was  carried  out  as  at  March  31 ,  1991. 

The  Board’s  1991  superannuation  pension  expense,  calculated  on  the  accrued  benefit  (ie.  CICA)  method,  on  the  basis  of 
the  March  31, 1991  valuation  results,  amounted  to  $5,093,000(1990-  $4,398,000).  This  amount  includes  the  amortization 
of  experience  gains  and  losses  which  are  being  amortized  on  a  straight-line  basis  over  a  period  of  twelve  years.  The  Board’s 
1991  contributions  to  the  Plan  amounted  to  $8,068,000  (1990  -  $6,755,000).  This  difference  between  the  pension  expense 
and  pension  contributions  is  included  in  assessments  and  accrued  interest  receivable  on  the  balance  sheet.  For  the  year  ended 
December31, 1991  the  accumulated  difference  amounted  to  $7,405,000  (December  31,  1990- $4,429,000). 


PUBLIC  ACCOUNTS  1991/92 


D  105 


Tlie  pension  plan  long-term  compensation  levels  were  assumed  to  increase  by  5.0%  ( 1 990  -  5.5%).  Pension  plan  assets  are 
stated  at  market-related  values.  Themarket-relatedapproach  recognizes  investment  income,  includingrcalizedandunrcalizcd 
market  gains  or  losses,  over  a  five-year  period.  The  assumed  long-term  rate  of  return  on  pension  plan  assets  was  6.5% 
(1990-6.5%). 

The  resulting  values  of  pension  assets  and  liabilities  as  at  December  31,1 99 1  are  as  follows: 


1991  _ 1990 


$175,652,000  $157,653,000 

$168,777,000  $144,583,000 


Assets 
Liabilities 
Net  Surplus 


$6,875,000  $  13,070,000 


The  net  surplus  is  not  included  in  the  Board’s  financial  statements. 


Note  11  -  Related  Party  Transactions 

The  Board  is  required  to  reimburse  the  Government  of  British  Columbia  for  the  operating  costs  of  the  Workers’ 
Compensation  Review  Board,  the  Workers’  Advisers  and  the  Lmployers’  Advisers. 

The  Board  is  also  responsible  for  the  administration  of  the  Workplace  Act  and  the  Criminal  Injury’  Compensation  Act. 
Under  the  Workplace  Act,  the  Board  assumed  the  jurisdiction  of  the  former  Occupational  Environment  Branch  under  the 
Factory’ Act  to  inspect  and  regulate  health,  safety  and  comfort  conditions  in  factories,  offices  and  shops.  The  Criminal Injuty 
Compensation  /I  compensates  people  who  are  victims  of  any  of  the  crimes  listed  in  the  statute.  The  Government  of  British 
Columbia  reimburses  the  Board  for  all  operating  costs  incurred  in  the  administration  of  this  Act. 

In  addition  to  the  legislated  obligations  referred  to  above,  included  in  these  financial  statements  are  amounts  resulting 
from  routine  operating  transactions  conducted  at  prevailing  market  prices  with  various  British  Columbia  Government 
controlled  ministries,  agencies,  and  Crown  corporations  with  which  the  Board  may  be  considered  related.  Account  balances 
resulting  from  these  transactions  are  included  in  the  financial  statements  and  arc  settled  on  normal  trade  terms. 


Note  12  -  Contingency 

The  Workers’  Compensation  Board  is  a  “third  party”  in  asbestos  property  damage  litigation,  usually  brought  by  owners 
against  contractors  and  asbestos  suppliers,  for  the  Board’s  alleged  failure  to  properly  regulate  the  use  of  asbestos  in  British 
Columbia  during  previous  years. 

The  Board  estimates  that  the  potential  contingent  cost  could  be  approximately  $  100  million.  As  it  is  unlikely  that  the 
“third  party”  litigation  against  the  Board  will  be  successful,  in  the  opinion  of  the  Board’s  legal  adviser,  no  provision  has  been 
made  in  the  accounts  as  at  31  December  1991  for  this  potential  cost. 


Note  13  -  Comparative  Figures 

Certain  1990  comparative  figures  have  been  reclassified  to  conform  with  the  financial  statement  presentation 
adopted  for  1991. 


D  106 


PROVINCE  OF  BRITISH  COLUMBIA 


ACTUARY’S  REPORT 
ECKLER  PARTNERS  LTD. 


The  Pension  Liabilities  for  the  Accident  and  Silicosis  Funds  are  for  pensions  in  effect  as  at  1  January  1 992, 
but  excluding  pensions  arising  from  injuries  to  Federal  Government  workers  (Class  19).  The  present  value 
of  increases  in  pensions  effective  1  January  1 992  has  been  included  in  the  Liabilities.  The  Pension  Liabilities 
have  been  computed  using  the  same  mortality,  net  interest  rate  and  other  assumptions  used  for  the  valuation 
as  at  3 1  December  1 990.  The  net  interest  rate  of  2-3/8%  makes  implicit  provision  for  the  future  indexing  of 
pensions  on  the  assumption  that  interest  earnings  on  Board  assets  in  excess  of  2-3/8%  will  correspond  to 
future  increases  in  the  Consumer  Price  Index. 

The  Unfinalled  Claims  Liabilities  for  the  Accident  and  Silicosis  Funds  are  shown  separately  for  Rateable 
Classes  and  for  Deposit  Classes  (excluding  Class  1 9),  and  are  based  on  projections  of  future  claims  payments 
and  awards  using  ratios  developed  from  the  Board’s  claims  experience,  average  benefit  rates,  the  net  interest 
rate  assumption  of  2-3/8%  and,  where  applicable,  mortality,  remarriage  and  other  assumptions  used  for 
computing  Pension  Liabilities.  The  methods  used  in  calculating  these  liabilities  were  substantially  the  same 
as  those  employed  in  the  previous  valuation  as  at  31  December  1990. 

The  liabilities  included  in  this  report  have  been  computed  by  the  Board  in  accordance  with  methods 
and  assumptions  approved  by  us.  We  have  made  such  tests  of  the  calculations  as  were  deemed  necessary.  We 
have  also  examined  the  data  upon  which  the  calculations  were  based  and  found  it  to  be  sufficient  for  our 
purposes  and  consistent  with  the  Board’s  financial  statements. 

In  our  opinion,  the  amounts  set  out  below,  which  have  been  determined  by  the  methods  and  assump¬ 
tions  described  above,  make  reasonable  provision  for  the  future  liabilities  of  the  Board  as  at  31  December 
1 99 1  in  respect  of  injuries  to  3 1  December  1991. 


Accident  Fund 

Pension  Liabilities 
Unfinalled  Claims  Liabilities 

-  Rateable  Classes 

-  Deposit  Classes 


Silicosis  Fund 

Pension  Liabilities 
Unfinalled  Claims  Liabilities 


Jacob  Levi,  F.S.A.,  F.C.I.A. 
Eckler  Partners  Ltd. 
Consulting  Actuaries 


($,000’s) 

$1,955,880 

1,741,004 

98,065 

$3,794,949 

$21,207 

8,796 

$30,003 


5  March  1992 


PUBLIC  ACCOUNTS  1991/92 


D  107 


Province  of  British  Columbia  Pooled  Investment  Portfolios 


Province  of  British  Columbia 
Pooled  Investment  Portfolios 


Group  of  Funds 


Canadian  Corporate  Bond  Fund 
Real  Return  Bond  Fund 
Realpool  Investment  Fund 
Managed  International  Equity  Fund 
Passive  International  Equity  Fund 

Canadian  Money  Market  Fund  STl 
Canadian  Money  Market  Fund  ST2 
U.S.  Dollar  Money  Market  Fund  ST3 
Indexed  Canadian  Equity  Fund 
Active  Canadian  Equity  Fund 


Financial  Statements 
1991/1992 


Province  of  British  Columbia 

Ministry  of  Finance  and  Corporate  Relations 

Provincial  Treasury 


/ 


PUBLIC  ACCOUNTS  1991/92 


D  109 


Province  of  British  Columbia 
Pooled  Investment  Portfolios 


Group  of  Funds 


Canadian  Corporate  Bond  Fund 
Real  Return  Bond  Fund 
Realpool  Investment  Fund 
Managed  International  Equity  Fund 
Passive  International  Equity  Fund 


Financial  Statements 

For  the  period  ended  December  31,  1991 


Province  of  British  Columbia 

Ministry  of  Finance  and  Corporate  Relations 

Provincial  Treasury 


D  no 


PROVINCE  OF  BRITISH  COLUMBIA 


Province  of  British  Columbia  Pooled  Investment  Portfolios 


STATEMENT  OF  RESPONSIBILITY 


To  the  Minister  of  Finance  and  Corporate  Relations: 


Responsibility  for  the  integrity,  objectivity  and  the 
preparation  of  the  accompanying  financial  statements  rests 
with  the  management  of  the  Provincial  Treasury.  The 
financial  statements  are  prepared  in  accordance  with 
generally  accepted  accounting  principles  consistently 
applied.  Policies  and  procedures  are  designed  to  give 
reasonable  assurance  that  transactions  are  appropriately 
authorized,  assets  are  safeguarded  and  financial  records 
properly  maintained  to  provide  reliable  financial 
statements . 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial 
statements . 


Director 

Banking/Cash  Management 
Provincial  Treasury 


Victoria,  British  Columbia 
March  31,  1992 


PUBLIC  ACCOUNTS  1991/92 


DIM 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)  387-6803 
Fax  (604)  387-1230 


To  the  Minister  of  Finance  and  Corporate  Relations, 
Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  of  the  Province  of  British  Columbia  Pooled 
Investment  Portfolios,  being  the  Canadian  Corporate  Bond  Fund,  Real  Return  Bond 
Fund,  Realpool  Investment  Fund,  Managed  International  Equity  Fund,  and  Passive 
International  Equity  Fund,  as  at  December  31,  1991,  the  statement  of  changes  in  net 
assets  for  the  period  then  ended,  and  the  statement  of  investments  as  at  December  31, 
1991.  These  financial  statements  are  the  responsibility  of  the  Portfolios'  management. 
My  responsibility  is  to  express  an  opinion  on  these  financial  statements  based  on  my 
audits. 

I  conducted  my  audits  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects,  the 
financial  position  of  the  Canadian  Corporate  Bond  Fund,  Real  Return  Bond  Fund, 
Realpool  Investment  Fund,  Managed  International  Equity  Fund,  and  Passive 
International  Equity  Fund  as  at  December  31,  1991,  and  the  changes  in  fund  net  assets 
for  the  period  then  ended  in  accordance  with  generally  accepted  accounting  principles. 


George  L.  Morfitt,  FCA 
Auditor  General 


Victoria,  British  Columbia 
March  31,  1992 


1 1 


D  112 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  NET  ASSETS 
AS  AT  DECEMBER  31,  1991 


CANADIAN  CORPORATE 

REAL  RETURN 

BOND  FUND 

BOND  FUND 

1991 

1991 

(In  thousands) 

(In  thousands) 

Investments  at  market  value 

$147,011 

$  96,983 

Cash 

- 

- 

Receivable  from  sale  of  investments 

- 

- 

Accrued  investment  income 

2,542 

256 

Foreign  withholding  tax  receivable 

- 

- 

Other  assets 

-- 

- 

Total  assets 

149.553 

97.239 

Payable  for  investments  purchased  (note  4) 

-- 

- 

External  management  fees  payable 

-- 

- 

External  custodial  fees  payable 

- 

- 

Total  liabilities 

-- 

- 

Net  assets  representing  unitholders’  equity 

$149,553 

$  97.239 

Number  of  units  outstanding  (note  5) 

132.316 

100.000 

Net  asset  value  per  unit 

$  1.130 

$  972 

The  nine  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


Approved  on  behalf  of  the  Minister  of  Finance  and  Corporate  Relations: 


4iaj{hd 

Michael  Costello 
Deputy  Minister 
Ministry  of  Finance  and 
Corporate  Relations 


Brendji^Eaton 
Assisf^rit  Deputy  Minister 
Provincial  Treasury 
Ministry  of  Finance  and 
Corporate  Relations 


PUBLIC  ACCOUNTS  1991/92 


□  113 


REALPOOL 
INVESTMENT  FUND 

MANAGED  INTERNATIONAL 
EQUITY  FUND 

PASSIVE  INTERNATIONAL 
EQUITY  FUND 

1991 

1991 

1991 

(In  thousands) 

(In  thousands) 

(In  thousands) 

$108,722 

$208,393 

$157,478 

9,393 

3,736 

606 

- 

313 

- 

253 

229 

95 

- 

90 

46 

151 

- 

- 

118.519 

212.761 

158.225 

- 

1,934 

- 

- 

261 

29 

- 

116 

37 

- 

2.311 

66 

$118.519 

$210.450 

$158.159 

114.794 

200.109 

150.070 

D  114 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 

STATEMENTS  OF  CHANGES  IN  NET  ASSETS 

FOR  THE  PERIODS  ENDED  DECEMBER  31,  1991  (SEE  NOTE  1) 

CANADIAN  CORPORATE 

BOND  FUND 

REAL  RETURN 

BOND  FUND 

1991 

1991 

(In  thousands) 

(In  thousands) 

Net  assets,  beginning  of  period 

S _ ::: 

1 _ :: 

Changes  during  the  period: 

Investment  activities: 

Investment  income 

4,745 

340 

Net  realized  gain  (loss) 
on  sale  of  investments 

2,418 

3 

Unrealized  appreciation  (depreciation) 
of  investments 

6.328 

13.491 

(3.1041' 

(2.761) 

Capital  transactions; 

Proceeds  from  units  issued 

45,000 

100,000 

Value  of  securities  received 
in  exchange  for  units 

91,062 

- 

Amounts  paid  for  units  redeemed 

„ 

_ 

136.062 

100.000 

Expenses: 

External  management  fees  (note  6) 

-- 

- 

External  custodial  fees 

- 

- 

Other 

_ 

_ 

Net  increase  during  the  period 

149.553 

97.239 

Net  assets,  end  of  period 

$149,553 

$  97.239 

'Includes  $107,000  unrealized  consumer  price  index  adjustment  loss. 


PUBLIC  ACCOUNTS  1991/92 


D  115 


REALPOOL  MANAGED  INTERNATIONAL  PASSIVE  INTERNATIONAL 

INVESTMENT  FUND  EQUITY  FUND  EQUITY  FUND 

1991  _ 1991 _  1991 

(In  thousands)  (In  thousands)  (In  thousands) 


i 


3,397  5,818^  5,931^ 

(1,991)  61 

362  7.310  2.271 

3.759  11.137  8.263 

115,500  200,109  150,072 


115.500  200.109  150.072 


603  572  67 

224  109 

_ 137  _ 11  _ :z 

740  796  176 

118.519  210.450  158.159 

$1 18.519  S  210.450  $158,159 


^Net  of  foreign  withholding  taxes  expense. 


D  116 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  INVESTMENTS 
AS  AT  DECEMBER  31,  1991 


CANADIAN  CORPORATE  REAL  RETURN  REALPOOL 

BOND  FUND _  BOND  FUND  INVESTMENT  FUND 

Cost  and 

Amortized  Market  Amortized  Market  Amortized  Market 

Cost  Value  Cost  Value  Cost  Value 


(In  thousands) 


(In  thousands)  (In  thousands) 


Long  Term  Bonds 

Obligations  of,  or  guaranteed 
by,  Canada 

Debentures  issued  by  corporations 
incorporated  under  the  laws  of 
Canada  or  a  province 

Real  Estate  Investments 

Industrial 

Retail 

Short  Term  Investments 

Units  in  Province  of  British  Columbia 
Pooled  Investment  Portfolio: 

Fund  STl 

Fund  ST2 

Short  term  notes 


$  -  $  -  $99,893 

138.248  144.576  _ 

138.248  144.576  99.893 


2,435  2,435  87 


2.435  2.435  _ ^ 

$140.683  $147.011  $99.980 


$96,896  $  -  $ 


96.896 


10,158  10,275 

3.548  3.742 

13.706  14.017 


87 

2,041 

2,041 

- 

23,513 

23,556 

69.100 

69.108 

87 

94.654 

94.705 

$96.983 

$108:360 

$108.722 

Total  Investments 


PUBLIC  ACCOUNTS  1991/92 


D  117 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  INVESTMENTS 
AS  AT  DECEMBER  31,  1991 


Equity  Investments 

Australia 

Austria 

Belgium 

Denmark 

Franee 

Germany 

Hong  Kong 

Italy 

Japan 

Malaysia 

Netherlands 

Norway 

Singapore 

Spain 

Sweden 

Switzerland 

Thailand 

United  Kingdom 

USA 

Short  Term  Investments 

Units  in  Provinee  of  British 
Columbia  Pooled 
Investment  Portfolio 
Fund  STl 


MANAGED  INTERNATIONAL  PASSIVE  INTERNATIONAL 


EQUITY  FUND 

EQUITY  FUND 

Average 

Market 

%  of 

Average 

Market 

%  of 

Cost 

Value 

Total 

Cost 

Value 

Total 

(In  thousands) 

(In  thousands) 

$  9,168 

S  9,981 

4.79% 

$  1,915 

$  2,160 

1.37% 

876 

928 

0.44% 

356 

304 

0.19% 

1,178 

1,267 

0.61% 

854 

923 

0.59% 

623 

580 

0.28% 

583 

637 

0.40% 

11,653 

14,085 

6.76% 

4,143 

4,531 

2.88% 

17,002 

17,786 

8.53% 

4,969 

5,128 

3.26% 

11,627 

12,197 

5.85% 

1,231 

1,448 

0.92% 

3,241 

3,317 

1.59% 

1,830 

1,675 

1.06% 

53,379 

51,964 

24.94% 

38,509 

38,721 

24.59% 

893 

804 

0.39% 

21 

24 

0.02% 

6,292 

7,145 

3.43% 

2,093 

2,294 

1.46% 

1,649 

1,716 

0.82% 

268 

229 

0.14% 

5,523 

6,028 

2.89% 

908 

918 

0.58% 

4,585 

4,296 

2.06% 

1,509 

1,469 

0.93% 

2,042 

2,497 

1.20% 

550 

492 

0.31% 

6,548 

6,833 

3.28% 

2,256 

2,317 

1.47% 

2,347 

2,369 

1.14% 

- 

- 

- 

26,622 

29,829 

14.31% 

13,395 

14,324 

9.10% 

6.937 

6.624 

3.18% 

— 

_ 

- 

172,185 

180,246 

86.49% 

75,390 

77,594 

49.27% 

28.152 

28.147 

13.51% 

79.899 

79.884 

50.73% 

S200.337 

S208.393 

100.00% 

$155.289 

$157,478 

100.00% 

Total  Investments 


D  118 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA 
POOLED  INVESTMENT  PORTFOLIOS 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  PERIODS  ENDING  DECEMBER  31,  1991  (SEE  NOTE  1) 


1.  The  Portfolios 

The  Financial  Administration  Act.  Section  36.1,  subsection  1,  authorizes  the  Minister  of  Finance  and  Corporate  Relations  to  establish 
and  operate  p>ooled  investment  portfolios  "...  in  which  the  money  from  trust  funds,  special  funds  or  other  funds,  other  public  money  and 
the  money  of  government  bodies  may  be  combined  in  common  for  the  purpose  of  investment  by  means  of  investment  units  of 
participation  in  a  pooled  investment  portfolio." 

The  Portfolios  consist  of  investments,  authorized  by  Section  36,  subsection  1  and  4,  and  Section  36.1,  subsection  7,  of  the  Financial 
Administration  Act. 

The  Canadian  Corporate  Bond  Fund  was  established  by  the  Minister  on  July  25,  1991,  and  invests  primarily  in  Canadian  corporate 
debentures. 

The  Real  Return  Bond  Fund  was  established  by  the  Minister  on  December  6,  1991,  and  invests  primarily  in  Government  of  Canada 
bonds  with  a  rate  of  return  linked  to  the  Consumer  Price  Index  for  Canada. 

The  Realpool  Investment  Fund  was  established  by  the  Minister  on  July  3,  1991,  and  invests  primarily  in  diversified  income-producing 
properties  through  four  wholly-owned  subsidiary  corporations. 

The  Managed  International  Equity  Fund  was  established  by  the  Minister  on  May  1,  1991,  and  invests  primarily  in  common  shares  of 
companies  in  principal  market  regions  in  Europe,  Australia,  and  the  Far  East  (EAFE),  with  diversified  investments  extending  beyond  the 
companies  that  comprise  the  Morgan  Stanley  EAFE  Index. 

The  Passive  International  Equity  Fund  was  established  by  the  Minister  on  May  1,  1991,  and  invests  primarily  in  the  common  shares  of 
companies  that  comprise  the  Morgan  Stanley  EAFE  Index. 

Participation  in  each  Portfolio  is  expressed  in  units,  each  unit  giving  its  holder  a  proportionate  share  in  the  net  equity.  Unitholders  may 
only  acquire  and  redeem  units  on  respective  valuation  dates.  The  value  of  a  unit  is  $1  million  on  establishment,  and  on  subsequent 
valuation  dates  is  determined  by  dividing  the  market  value  of  the  net  assets  of  the  Portfolio  by  the  total  number  of  units  outstanding. 


2.  Principle  of  Consolidation 

Wholly-owned  subsidiary  corporations  of  the  Realpool  Investment  Fund  are  consolidated  with  the  parent  accounts  after  adjusting  them  to 
a  basis  consistent  with  the  accounting  policies  described  below.  Inter-organization  accounts  and  transactions  are  eliminated  up>on 
consolidation. 

3.  Significant  Accounting  Policies 
a)  Valuation  of  Investments 

Securities  listed  on  a  recognized  public  stock  exchange  are  valued  at  their  closing  sale  price.  Securities  not  traded  on  that  date  are 
valued  at  the  mean  price  between  the  latest  bid  and  asked  price.  Securities  not  listed  on  any  recognized  public  stock  exchange,  or 
which  are  traded  over-the-counter,  are  valued  in  the  same  manner  based  on  available  public  quotations  from  recognized  dealers  in 
such  securities  or  at  the  price  estimated  by  the  fund  manager  to  be  the  fair  value. 

Short  term  investments  are  valued  at  market  derived  from  external  quotations. 

Real  estate  properties  are  carried  at  appraised  values  and  are  required  to  be  valued  annually  by  professionally  qualified  independent 
appraisers.  All  properties  are  valued  at  the  end  of  each  quarter  by  the  investment  analysis  staff  of  the  respective  subsidiary 
corporations.  Depreciation  is  not  recorded  on  properties. 

Leasing  costs  and  all  direct  costs  relating  to  the  acquisition  of  real  properties  are  capitalized.  For  development  properties  only, 
operating  costs,  certain  indirect  costs  and  property  taxes  are  also  capitalized. 


Investments  in  real  estate  co-ownership  are  accounted  for  by  the  proportionate  consolidation  method. 


PUBLIC  ACCOUNTS  1991/92 


D  1  19 


PROVINCE  OF  IIRITISII  COLUMBIA 
POOLED  INVESTMENT  PORTFOLIOS 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  PERIODS  ENDING  DECEMBER  31,  1991  (SEE  NOTE  1) 


b)  Inveslmcnt  Transactions  and  Income 

Investment  transactions  arc  accounted  for  on  the  trade  date  basis.  Dividend  income  is  recognized  on  the  ex-dividend  date,  and 
interest  income  on  the  accrual  basis.  Realized  gains  and  losses  and  unrealized  appreciation  or  depreciation  of  investments  arc 
calculated  based  on  cost  for  real  estate  investments,  average  cost  for  equity  investments,  and  amortized  cost  for  short  term 
investments  and  long  term  bonds.  The  amortized  cost  is  the  cost  of  acquisition  adjusted  by  amortization  of  discounts  and  premiums 
on  a  true  constant  yield  basis  over  the  terms  of  the  investments. 

c)  Foreign  Currency  Translation 

Assets  and  liabilities  in  foreign  currencies  are  translated  into  Canadian  dollars  at  fiscal  year-end  exchange  rate.  Purchases  and  sales 
of  investments  are  translated  at  the  rate  prevailing  on  the  respective  dates  of  such  transactions.  Income  is  translated  at  the  month- 
end  rate. 


4.  Disclosure  of  Financial  Instruments 

For  the  Managed  International  Equity  Fund,  the  amount  payable  for  investments  purchased  includes  an  accrued  liability  of  $824,658 
based  on  foreign  exchange  rates  as  at  December  31,  1991,  for  four  forward  currency  contracts.  These  were  closed  out  in  subsequent 
months  with  offsetting  forward  currency  contracts  settling  on  December  31,  1992.  Based  on  foreign  exehange  rates  as  at  March  31, 
1992,  however,  the  four  contracts  have  an  accrued  liability  of  $20,685. 


5.  Unitholders’  Equity 

There  is  no  limitation  on  the  number  of  Portfolio  units  available  for  issue.  The  following  is  a  summary  of  the  changes 
in  units  outstanding  during  the  respective  periods  ending  December  31,  1991. 


CANADIAN  CORPORATE 
BOND  FUND 

REAL  RETURN 
BOND  FUND 

REALPOOL 
INVESTMENT  FUND 

1991 

1991 

1991 

Outstanding,  beginning  of  period 

-- 

-- 

- 

Issued 

132.316 

100.000 

114.794 

Redeemed 

-- 

- 

-- 

Outstanding,  end  of  period 

132.316 

100.000 

114.794 

MANAGED  INTERNATIONAL 
EQUITY  FUND 

1991 

Outstanding,  beginning  of  period 

Issued  200.109 

Redeemed  _ _ 

Outstanding,  end  of  period  -00109 


PASSIVE  INTERNATIONAL 
EQUITY  FUND 


1991 


150.070 


150.070 


D  120 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA 
POOLED  INVESTMENT  PORTFOLIOS 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  PERIODS  ENDING  DECEMBER  31,  1991  (SEE  NOTE  1) 


6.  External  Management  Fees 

Management  fees  are  paid  by  the  Realpool  Investment  Fund  and  the  International  Equity  Funds  to  external  managers  for  providing 
investment  management  and  advisory  services. 

7.  Related  Party  Transactions 

AH  inter-portfolio  transactions  are  conducted  at  market  value. 

Administration  costs  are  borne  by  the  Minister  of  Finance  and  Corporate  Relations.  The  Minister  recovers  these  costs  by  charging  the 
unitholders  a  management  fee.  This  fee  is  calculated  based  on  the  market  value  of  the  unitholders’  investment  holdings  administered  by 
the  Provincial  Treasury. 

8.  Commitments 

The  Realpool  Investment  Fund  has  entered  into  investment  agreements  dated  July  3,  4,  5,  and  September  27,  1991,  respectively  with  its 
four  wholly-owned  subsidiary  corporations.  Subject  to  a  termination  clause  in  each  of  these  agreements,  the  Fund  has  outstanding 
commitments  as  at  December  31,  1991  to  invest  an  additional  $196.3  million  in  the  shares  of  these  corporations.  The  commitments  will 
be  funded  through  the  future  purchase  of  units  by  unitholders. 

9.  Subsequent  Event 

The  Canadian  Corporate  Bond  Fund’s  investments  include  bonds  totalling  $1,000,000  par  value  of  the  Olympia  and  York  First  Canadian 
Place  Limited  Bonds,  Series  1,  10.75  per  cent,  maturity  date  November  4,  1993.  (Total  bonds  issued  and  outstanding  is  $475,000,000.) 
In  April,  1992,  Olympia  and  York  Development  Limited’s  cash  flow  problems  were  publicized.  The  company  subsequently  defaulted  on 
the  May  4,  1992  bond  interest  payment.  Currently  the  court  has  frozen  Olympia  and  York’s  assets  until  October,  1992  pending 
financial  restructuring.  The  bonds  were  valued  at  $1,028,750  and  $600,000  as  at  December  31,  1991  and  May  31,  1992  respectively. 


PUBLIC  ACCOUNTS  1991/92 


D  121 


Province  of  British  Columbia 
Pooled  Investment  Portfolios 


Group  of  Funds 


Canadian  Money  Market  Fund  STl 
Canadian  Money  Market  Fund  ST2 
U.S.  Dollar  Money  Market  Fund  ST3 
Indexed  Canadian  Equity  Fund 
Active  Canadian  Equity  Fund 


Financial  Statements 
For  the  year  ended  March  31,  1992 


Province  of  British  Columbia 

Ministry  of  Finance  and  Corporate  Relations 

Provincial  Treasury 


r 


D  122 


PROVINCE  OF  BRITISH  COLUMBIA 


Province  of  British  Columbia  Pooled  Investment  Portfolios 


STATEMENT  OF  RESPONSIBILITY 


To  the  Minister  of  Finance  and  Corporate  Relations : 


Responsibility  for  the  integrity,  objectivity  and  the 
preparation  of  the  accompanying  financial  statements  rests 
with  the  management  of  the  Provincial  Treasury.  The  financial 
statements  are  prepared  in  accordance  with  generally  accepted 
accounting  principles  consistently  applied.  Policies  and 
procedures  are  designed  to  give  reasonable  assurance  that 
transactions  are  appropriately  authorized,  assets  are 
safeguarded  and  financial  records  properly  maintained  to 
provide  reliable  financial  statements. 

The  Auditor  General  of  the  Province  of  British  Columbia 
conducts  an  independent  examination,  in  accordance  with 
generally  accepted  auditing  standards,  and  provides  an 
independent  professional  opinion  on  the  financial  statements. 


Director 

Banking/Cash  Management 
Provincial  Treasury 


Victoria,  British  Columbia 
June  24,  1992 


PUBLIC  ACCOUNTS  1991/92 


D  123 


Auditor  General  of  British  Columbia 


AUDITOR'S  REPORT 


8  Bastion  Square 
Victoria,  British  Columbia 
V8V  1X4 


(604)  387-6803 
Fax  (604)  387-1230 


To  the  Minister  of  Finance  and  Corporate  Relations, 
Province  of  British  Columbia: 


I  have  audited  the  statement  of  net  assets  of  the  Province  of  British  Columbia 
Pooled  Investment  Portfolios,  being  the  Fund  STl,  Fund  ST2,  Fund  ST3,  Indexed 
Canadian  Equity  Fund  and  Active  Canadian  Equity  Fund,  as  at  March  31,  1992,  the 
statement  of  changes  in  net  assets  for  the  year  then  ended,  and  the  statement  of 
investments  as  at  March  31,  1992.  These  financial  statements  are  the  responsibility 
of  the  Portfolios'  management.  My  responsibility  is  to  express  an  opinion  on  these 
financial  statements  based  on  my  audits. 

I  conducted  my  audits  in  accordance  with  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  financial  statements  present  fairly,  in  all  material  respects, 
the  financial  position  of  the  Fund  STl,  Fund  ST2,  Fund  ST3,  Indexed  Canadian 
Equity  Fund  and  Active  Canadian  Equity  Fund  as  at  March  31,  1992  and  the 
changes  in  fund  net  assets  for  the  year  then  ended  in  accordance  with  generally 
accepted  accounting  principles. 


George  L.  Morfitt,  FCA 


Auditor  General 


Victoria,  British  Columbia 
June  24,  1992 


D  124 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  NET  ASSETS 

AS  AT  MARCH  31,  1992 

Canadian  Money  Market 

FUND  STl 

FUND 

ST2 

1992 

1991 

1992 

1991 

(In  thousands) 

(In  thousands) 

Investments  at  market  value 

S  782.126 

$  835,180 

$4,263,794 

$4,938,965 

Cash 

- 

- 

- 

- 

Accrued  investment  income 

- 

15 

- 

- 

Total  assets 

782.126 

835.195 

4.263.794 

4.938.965 

Payable  for  investments  purchased 

- 

- 

- 

- 

External  management  fees  payable 

_ 

Total  liabilities 

Net  assets  representing 
unitholders’  equity 

$  782.126 

$  835.195 

$  4.263.794 

$4,938,965 

Number  of  units  outstanding  (note  3) 

445.387 

517.190 

2.447.002 

3.099.411 

Net  asset  value  per  unit 

$  1 .756 

L_L615 

1 _ UM 

The  five  accompanying  notes  are  an  integral  part  of  these  financial  statements. 


Approved  on  behalf  of  the  Minister  of  Finance  and  Corpioratc  Relations: 


■jku&tA- 

Michael  Costello 
Deputy  Minister 
Ministry  of  Finance  and 
Corporate  Relations 


Coiporate  Relations 


PUBLIC  ACCOUNTS  1991/92 


U.S.  Money  Market 

FUND  ST3 

1992_ 1991 

(In  thousands) 

$139,410  $74,247 


139.410  74.247 


$139.410 

125.708 


£74.247 

70.582 

1  L052 


INDEXED  CANADIAN 

EQUITY  FUND 

ACTIVE  CANADIAN 
EQUITY  FUND 

1992 

1991 

1992 

1991 

(In  thousands) 

(In  thousands) 

$1,493,609 

$870,471 

$585,220 

$310,724 

138 

9 

1,933 

2,128 

6,566 

3,765 

2,035 

938 

1.500.313 

874.245 

589.188 

313.790 

5,034 

12,567 

5,455 

21,295 

_ 

303 

136 

5.034 

12.567 

5.758 

21.431 

$1,495,279 

$861 .678 

$583.430 

$292,359 

1.606 

928.665 

511.130 

261.765 

J _ 931 

$  1.141 

$  1.117 

D  125 


D  126 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  CHANGES  IN  NET  ASSETS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 
(Comparative  1991  figures  are  for  varying  periods  -  see  note  1) 


Canadian  Money  Market 


FUND  STl 


FUND  ST2 


1992 


1991 


Net  assets,  beginning  of  year 

Changes  during  the  year: 
Investment  activities: 


On  thousands) 

$  835,195  $  729,109 


Expenses: 

External  management  fees 
(note  4) 


1992 


1991 


On  thousands) 
$4,938,965  $5,013,359 


Investment  income 

88,252 

106,325 

429,457 

598,285 

Net  realized  gain  (loss)  on  sale  of 
investments 

3 

- 

14,598 

(769) 

Change  in  unrealized 
appreciation  (depreciation)  of 
investments 

(321 

49 

(27.5221 

52.665 

88.223 

106.374 

416.533 

650.181 

Capital  transactions: 

Proceeds  from  units  issued 

17,860,748 

14,733,654 

1,760,229 

2,736,467 

Amounts  paid  for  units  redeemed 

(18.002.0401 

(14.733.9421 

(2.851.9331 

(3.461.0421 

(141.2921 

(2881 

(1.091.7041 

(724.5751 

Net  increase  (decrease)  during 
the  year 


(53.0691 


106.086 


£_835^ 


(675.1711 

$4.263.794 


(74,3941 


Net  assets,  end  of  year 


PUBLIC  ACCOUNTS  1991/92 


D  127 


U.S.  Money  Market 


FUND  ST3 

INDEXED  CANADIAN 
EQUITY  FUND 

ACTIVE  CANADIAN 
EQUITY  FUND 

1992  1991 

1992 

1991 

1992 

1991 

(In  thousands  US  $) 

Go  thousands) 

(In  thousands) 

$  74,247  $ 

$  861,678 

$144,277 

$  292,359 

S 

4,681 

4,334 

44,250 

21,276 

19,933 

10,505 

- 

- 

(14) 

(2) 

899 

(1,552) 

_ 0) 

4 

f50.3951 

25.882 

(12.8051 

15.705 

4.678 

4.338 

(6.159) 

47.156 

8.027 

24.658 

139,759 

228,960 

639,760 

670,245 

284,041 

268,000 

L79.2741 

ri59.05n 

_ 

60.485 

69.909 

639.760 

670.245 

284.041 

268.000 

997 

299 

65.163 

74.247 

633.601 

717.401 

291.071 

292.359 

$139.410 

$  74.247 

$1,495,279 

$861,678 

$583,430 

$292.359 

D  128 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  INVESTMENTS 
AS  AT  MARCH  31,  1992 


Canadian  Money  Market 


U.S.  Money  Market 


FUND  STl  FUND  ST2  FUND  ST3 


Amortized 

Cost 

Market 

Value 

Amortized 

Cost 

Market 

Value 

Amortized 

Cost 

Market 

Value 

(In  thousands) 

(In  thousands) 

(In  thousands  US  $) 

Obligations  of,  or  guaranteed 
by,  Canada 

$  76,717 

$  76,717 

$3,936,245 

$3,940,137 

$ 

$ 

Obligations  of  the  Province  of 
British  Columbia 

.. 

_ 

57,286 

57,283 

_ 

_ 

Obligations  of,  or  guaranteed  by, 
savings  institutions 

536,556 

536,590 

266,202 

266,374 

139,409 

139,410 

Commercial  paper  issued  by 
corporations  incorporated 
under  the  laws  of  Canada 
or  a  province 

168.812 

168.819 

Total  Investments 

$782,085 

$782,126 

$4,259,733 

$4,263,794 

$139,409 

$139.410 

PUBLIC  ACCOUNTS  1991/92 


D  129 


PROVINCE  OF  BRITISH  COLUMBIA  POOLED  INVESTMENT  PORTFOLIOS 
STATEMENTS  OF  INVESTMENTS 
AS  AT  MARCH  31,  1992 


INDEXED  CANADIAN  ACTIVE  CANADIAN 

EQUITY  FUND  EQUITY  FUND 


Average  Market  %  of  Average  Market  %  of 

Cost  Value  Total  Cost  Value  Total 


(In  thousands)  (In  thousands) 


Equity  Investments 
Metals  and  Minerals 
Golds 

Oil  and  Gas 

Paper  and  Forest  Products 

Consumer  Products 

Industrial  Products 

Real  Estate  and  Construction 

Transportation  and  Environmental 

Pipelines 

Utilities 

Communication  and  Media 
Merchandising 
Financial  Services 
Management  Companies 

Investment  Funds 
Convertible  Debentures 

Short  Term  Investments 


$  118,253 

$  111,990 

7.50 

133,062 

106,791 

7.15 

120,021 

96,386 

6.45 

32,445 

28,285 

1.89 

126,288 

153,319 

10.27 

175,695 

189,193 

12.67 

17,389 

11,565 

0.77 

56,445 

38,783 

2.60 

35,030 

32,877 

2.20 

178,503 

191,861 

12.85 

63,432 

69,903 

4.68 

78,946 

73,075 

4.89 

296,760 

308,192 

20.63 

88.970 

77.545 

5.19 

1.521.239 

1.489.765 

99.74 

$  42,596 

$  41,392 

7.07 

27,697 

24,275 

4.15 

46,893 

39,016 

6.67 

17,330 

17,256 

2.95 

44,954 

53,973 

9.22 

59,260 

67,646 

11.56 

5,866 

4,979 

0.85 

17,407 

15,172 

2.59 

13,230 

12,688 

2.17 

46,336 

49,725 

8.50 

20,961 

23,159 

3.96 

31,705 

27,207 

4.65 

137,591 

140,306 

23.97 

35.951 

32.771 

5.60 

547.777 

549.565 

93.91 

8,734 

9,674 

1.65 

3.741 

3.913 

0.67 

12.475 

13.587 

2.32 

Units  in  Province  of  British  Columbia 
Pooled  Investment  Portfolio  Fund  STl 

Short  term  notes 


3,844 

3,844 

0.26 

636 

636 

0.11 

_ 

_ 

_ 

21.432 

21.432 

3.66 

3.844 

3.844 

0.26 

22.068 

22.068 

3.77 

$1.525.083 

$1.493.609 

100.00 

$582,320 

$585.220 

100.00 

Total  Investments 


D  130 


PROVINCE  OF  BRITISH  COLUMBIA 


PROVINCE  OF  BRITISH  COLUMBIA 
POOLED  INVESTMENT  PORTFOLIOS 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


1.  The  Portfolios 

The  Financial  Administration  Act.  Section  36.1,  subsection  1,  authorizes  the  Minister  of  Finance  and  Corporate  Relations  to  establish 
and  operate  pooled  investment  portfolios  "...  in  which  the  money  from  trust  funds,  special  funds  or  other  funds,  other  public  money  and 
the  money  of  government  bodies  may  be  combined  in  common  for  the  purpose  of  investment  by  means  of  investment  units  of 
participation  in  a  pooled  investment  portfolio." 

The  Portfolios  consist  of  investments,  authorized  by  Section  36,  subsection  1  and  4,  and  Section  36.1,  subsection  7,  of  the  Financial 
Administration  Act. 

Fund  STl  was  established  by  the  Minister  on  April  21,  1986,  and  invests  in  Canadian  money  market  investments  maturing  within  one 
month. 

Fund  ST2  was  established  by  the  Minister  on  September  19,  1986,  and  invests  in  Canadian  money  market  investments  maturing  within 
one  year. 

Fund  ST3  was  established  by  the  Minister  on  August  1,  1990,  and  invests  in  U.S.  money  market  investments  maturing  within  one  year. 

The  Indexed  Canadian  Equity  Fund  was  established  by  the  Minister  on  December  12,  1989,  and  invests  primarily  in  common  stock  of 
the  Canadian  companies  that  comprise  the  Toronto  Stock  Exchange  300  Comp>osite  Index. 

The  Active  Canadian  Equity  Fund  was  established  by  the  Minister  on  July  26,  1990,  and  invests  primarily  in  diversified  portfolios  of 
common  shares  of  Canadian  companies. 

Participation  in  each  Portfolio  is  expressed  in  units,  each  unit  giving  its  holder  a  proportionate  share  in  the  net  equity.  Unitholders  may 
only  acquire  and  redeem  units  on  respective  valuation  dates.  The  value  of  a  unit  is  $1  million  on  establishment,  and  on  subsequent 
valuation  dates  is  determined  by  dividing  the  market  value  of  the  net  assets  of  the  Portfolio  by  the  total  number  of  units  outstanding. 

2.  Significant  Accounting  Policies 

a)  Valuation  of  Investments 

Securities  listed  on  a  recognized  public  stock  exchange  are  valued  at  their  closing  sale  price.  Securities  not  traded  on  that  date  are 
valued  at  the  mean  price  between  the  latest  bid  and  asked  price.  Securities  not  listed  on  any  recognized  public  stock  exchange,  or 
which  are  traded  over-the-counter,  are  valued  in  the  same  manner  based  on  available  public  quotations  from  recognized  dealers  in 
such  securities  or  at  the  price  estimated  by  the  fund  manager  to  be  the  fair  value. 

Short  term  investments  are  valued  at  market  derived  from  external  quotations. 

b)  Investment  Transactions  and  Income 

Investment  transactions  are  accounted  for  on  the  trade  date  basis.  Dividend  income  is  recognized  on  the  ex-dividend  date,  and 
interest  income  on  the  accrual  basis.  Realized  gains  and  losses  and  unrealized  appreciation  or  depreciation  of  investments  are 
calculated  based  on  the  average  cost  for  equity  investments  and  amortized  cost  for  short  term  investments.  The  amortized  cost  is  the 
cost  of  acquisition  adjusted  by  amortization  of  discounts  and  premiums  on  a  true  constant  yield  basis  over  the  terms  of  the 
investments. 


PUBLIC  ACCOUNTS  1991/92 


D  131 


PROVINCE  OF  BRITISH  COLUMBIA 
POOLED  INVESTMENT  PORTFOLIOS 
NOTES  TO  THE  FINANCIAL  STATEMENTS 
FOR  THE  YEAR  ENDED  MARCH  31,  1992 


3.  Unitholders’  Equity 

There  is  no  limitation  on  the  number  of  Portfolio  units  available  for  issue.  The  following  is  a  summary  of  the  changes  in  units 
outstanding  during  the  year  (comparative  1991  figures  are  for  varying  periods  -  sec  note  1). 


FUND  STl 

FUND  ST2 

1992  1991 

1992  1991 

Outstanding,  beginning  of  year 

517.190 

512.177 

3,099.411 

3,583.521 

Issued 

10,601.889 

9,658.792 

1,059.617 

1,842.551 

Redeemed 

nO.673.6921 

(9.653.7791 

(1.712.0261 

(2.326.6611 

Outstanding,  end  of  year 

445.387 

517.190 

2.447.002 

3.099.411 

FUND  ST3 

INDEXED  CANADIAN 
EQUITY  FUND 

ACTIVE  CANADIAN 
EQUITY  FUND 

1992  1991 

1992  1991 

1992  1991 

Outstanding,  beginning  of  year 

70.582 

- 

928.665 

156.847 

261.765 

- 

Issued 

127.719 

224.763 

677.416 

771.818 

249.365 

261.765 

Redeemed 

(72.5931 

(154.1811 

_ 

__ 

_ 

Outstanding,  end  of  year 

125.708 

70.582 

1.606.081 

928.665 

511.130 

261.765 

4.  External  Management  Fees 

Management  fees  are  paid  by  the  Active  Canadian  Equity  Fund  to  external  fund  managers  for  providing  investment  management  and 
advisory  services. 

5.  Related  Party  Transactions 

All  inter-portfolio  transactions  are  conducted  at  market  value. 

Administration  costs  are  borne  by  the  Minister  of  Finance  and  Corporate  Relations.  The  Minister  recovers  these  costs  by  charging  the 
unitholders  a  management  fee.  This  fee  is  calculated  based  on  the  market  value  of  the  unitholders’  investment  holdings  administered  by 
the  Provincial  Treasury. 


Summary  of  Financial  Statements 
of  Corporations  and  Agencies  to  which 
the  Financial  Information  Act  Applies 


Contents 


Page 

Introduction . 3 

Summary  of  Colleges,  Universities  and  Institutes .  5 

Summary  of  School  Districts .  6 

Summary  of  Hospital  Societies .  8 

Summary  of  Municipalities  and  Regional  Districts .  1 1 

Summary  of  Other  Public  Bodies .  15 


PUBLIC  ACCOUNTS  1991/92 


E3 


Introduction  to  Summaries  of  Financial  Statements 
of  Corporations  and  Agencies  to  which 
the  Financial  Information  Act  Applies 


This  section  of  the  Public  Accounts  contains  summaries  of  the  financial  statements  of  corporations  required  to  report  under  the  Financial 
Information  Act,  (S.B.C.  1 985,  chapter  8,  sec.  2). 

Corporation  means  corporation,  association,  board,  commission,  society  or  public  body  as  defined  in  this  Act. 

Information  required  to  be  prepared  under  the  Financial  Information  Act  for  each  fiscal  year  shall  include: 

•  a  statement  of  assets  and  liabilities; 

•  an  operational  statement; 

•  a  schedule  of  the  amount  of  debts; 

•  a  schedule  of  guarantees  and  indemnity  agreements; 

•  a  schedule  showing  in  respect  of  each  employee  earning  more  than  a  prescribed  amount,  the  total  remuneration  paid  to  the 
employee  and  total  amount  paid  for  his  expenses,  and  a  consolidated  total  of  all  remuneration  paid  to  all  other  employees; 
and 

•  a  schedule  showing  the  total  amount  paid  to  each  supplier  of  goods  or  services  during  the  fiscal  year  that  exceeds  a  prescribed 
amount,  and  a  consolidated  total  of  all  other  payments  made  to  suppliers  of  goods  or  services  during  that  fiscal  year. 

These  summary  statements  do  not  contain  the  detailed  financial  information  listed  above  for  each  entity.  They  are  only  intended  to  give 
the  reader  an  overview  of  the  size  and  scope  of  the  entities  to  which  the  Financial  Information  Act  applies.  Reporting  entities,  included  in  the 
summary  statements  of  section  B,  are  not  included  in  section  E. 

Complete  financial  statements  may  be  obtained  from  the  corporation  on  payment  of  a  prescribed  fee. 


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PUBLIC  ACCOUNTS  1991/92 


E  5 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  under  the  Financial  Information  Act 
for  the  Year  Ended  March  31,  1991 

(Unaudited) 


(In  Thousands) 


Balance  Sheet 


Operating  Statement 


Assets 


Liabilities 


Equity 


Revenue 


Expenditure 


Surplus 


Colleges,  Universities  and  Institutes 

British  Columbia  Institute  of  Technology . 

Camosun  College . 

Capilano  College . 

Cariboo  College . 

College  of  New  Caledonia . 

Douglas  College . 

East  Kootenay  Community  College . 

Emily  Carr  College  of  Art  and  Design . 

Eraser  Valley  College . 

Justice  Institute . 

KwantJen  College . 

Malaspina  College . 

North  Island  College . 

Northern  Lights  College . 

Northwest  Community  College . 

Okanagan  College . 

Open  Learning  Agency . 

Pacific  Marine  Training  Institute . 

Selkirk  College . 

Simon  Eraser  University . 

University  of  British  Columbia . 

University  of  Northern  British  Columbia . . 

University  of  Victoria . 

Vancouver  Community  College . 


145,763 

40,249 

105,514 

61,791 

31,162 

30,629 

55,099 

24,703 

30,396 

52,277 

28,606 

23,671 

34,611 

11,883 

22,728 

68,188 

42,826 

25,362 

23,005 

13,190 

9,815 

12,719 

4,870 

7,849 

32,860 

17,231 

15,629 

6,860 

1,023 

5,837 

56,660 

36,206 

20,454 

42,667 

12,725 

29,942 

16,670 

6,532 

10,138 

28,975 

1  7,600 

1 1,375 

24,578 

1,867 

22,711 

63,497 

32,683 

30,814 

21,590 

12,601 

8,989 

12,349 

5,960 

6,389 

24,974 

6,870 

18,104 

329,231 

118,526 

210,705 

932,572 

267,693 

664,879 

1,506 

348 

1,158 

277,849 

56,922 

220,927 

142,452 

77,905 

64,547 

2,468,743  870,181  1,598,562 


109,183 

1 1 1,274 

(2,091) 

46,442 

46,159 

283 

39,618 

39,666 

(48) 

43,928 

43,431 

497 

25,869 

26,259 

(390) 

50,352 

49,245 

1,107 

13,391 

11,666 

1,725 

10,325 

10,889 

(564) 

22,435 

22,685 

(250) 

11,083 

10,650 

433 

34,655 

35,1 13 

(458) 

45,382 

44,813 

569 

17,633 

17,558 

75 

15,575 

15,093 

482 

12,379 

12,410 

(31) 

50,414 

48,792 

1,622 

32,586 

33,641 

(1,055) 

5,471 

5,533 

(62) 

21,966 

21,805 

161 

207,767 

208,515 

(748) 

601,583 

579,685 

21,898 

2,446 

1,510 

936 

166,417 

160,763 

5,654 

97,438 

97,046 

392 

,684,338 

1,654,201 

30,137 

The  figures  on  this  schedule  are  a  summation  of  the  most  recent  audited  financial  statements  available  for  individual  Universities,  Colleges  and  Institutes.  Totals  are 
shown  only  to  give  the  reader  an  idea  of  the  scope  ofthe  organizations  on  a  collective  basis.  Financial  statements  of  individual  entities  may  be  requested.  (See  introduction). 


E6 


PROVINCE  OF  BRITISH  COLUMBIA 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  June  30, 1991 

(Unaudited) 


(In  Thousands) 

Balance  Sheet  Operating  Statement 


Assets 

Liabilities 

Equity 

Income 

Expenditure 

Surplus 

School  Districts 

$ 

$ 

$ 

$ 

$ 

$ 

01 

Fernie . 

52,833 

27,549 

25,284 

22,322 

21,764 

558 

02 

Cranbrook . 

32,399 

13,457 

18,942 

24,313 

23,725 

588 

03 

Kimberley . 

17,670 

7,377 

10,293 

1 1,990 

11,920 

70 

04 

Windermere . 

14,997 

7,317 

7,680 

8,872 

8,342 

530 

07 

Nelson . 

38,759 

18,568 

20,191 

23,689 

23,988 

(299) 

09 

Castlegar . 

27,668 

12,991 

14,677 

13,920 

13,800 

120 

10 

Arrow  Lakes . 

14,293 

9,502 

4,791 

7,041 

6,785 

256 

1 1 

Trail . 

41,082 

12,295 

28,787 

22,263 

21,221 

1,042 

12 

Grand  Forks . 

16,901 

10,678 

6,223 

9,050 

9,125 

(75) 

13 

Kettle  Valley . 

8,852 

4,717 

4,135 

4,883 

4,918 

(35) 

14 

South  Okanagan . 

23,212 

1 1,627 

11,585 

13,295 

12,563 

732 

15 

Penticton . 

31,925 

14,888 

17,037 

26,820 

26,946 

(126) 

16 

Keremeos . 

9,715 

5,594 

4,121 

5,166 

4,540 

626 

17 

Princeton . 

12,369 

6,451 

5,918 

6,001 

5,762 

239 

18 

Golden . 

18,562 

12,130 

6,432 

8,702 

8,506 

196 

19 

Revelstoke . 

22,125 

11,284 

10,841 

11,389 

10,756 

633 

21 

Armstrong-Spallumcheen . 

13,362 

7,415 

5,947 

9,169 

9,026 

143 

22 

Vernon . 

56,911 

24,385 

32,526 

46,994 

45,648 

1,346 

23 

Central  Okanagan . 

133,491 

65,020 

68,471 

86,158 

82,908 

3,250 

24 

Kamloops . 

123,071 

53,793 

69,278 

83,233 

81,347 

1,886 

26 

North  Thompson . 

15,821 

5,502 

10,319 

7,959 

7,589 

370 

27 

Cariboo-Chilcotin . 

69,003 

30,178 

38,825 

52,263 

50,738 

1,525 

28 

Quesnel . 

47,161 

21,038 

26,123 

32,909 

31,909 

1,000 

29 

Lillooet . 

16,222 

9,820 

6,402 

8,779 

8,133 

646 

30 

South  Cariboo . 

14,006 

3,841 

10,165 

10,559 

10,531 

28 

31 

Merritt . 

14,989 

6,179 

8,810 

11,985 

11,360 

625 

32 

Hope . 

15,585 

7,098 

8,487 

10,963 

10,767 

196 

33 

Chilliwack . 

47,596 

21,156 

26,440 

46,235 

45,480 

755 

34 

Abbotsford . 

127,259 

78,722 

48,537 

75,738 

73,314 

2,424 

35 

Langley . 

158,359 

98,950 

59,409 

94,236 

93,842 

394 

36 

Surrey . 

318,747 

215,232 

103,515 

212,166 

216,529 

(4,363) 

37 

Delta . 

109,034 

35,462 

73,572 

89,514 

87,068 

2,446 

38 

Richmond . 

139,259 

76,544 

62,715 

102,243 

102,572 

(329) 

39 

Vancouver . 

306,129 

91,985 

214,144 

307,512 

298,013 

9,499 

40 

New  Westminster . 

.  31,591 

15,775 

15,816 

26,025 

24,994 

1,031 

41 

Burnaby . 

96,123 

31,140 

64,983 

98,981 

96,776 

2,205 

42 

Maple  Ridge-Pitt  Meadows . 

103,352 

69,143 

34,209 

64,664 

63,890 

774 

43 

Coquitlam . 

153,314 

63,078 

90,236 

118,419 

118,886 

(467) 

44 

North  Vancouver . 

98,103 

31,431 

66,672 

86,552 

85,278 

1,274 

45 

West  Vancouver . 

37,051 

10,657 

26,394 

29,857 

29,860 

(3) 

46 

SunshineCoast . 

37,784 

21,074 

16,710 

21,505 

21,259 

246 

47 

Powell  River . 

26,426 

10,490 

15,936 

20,005 

19,809 

196 

48 

Howe  Sound . 

42,419 

18,685 

23,734 

22,494 

22,122 

372 

49 

Central  Coast . 

8,665 

3,256 

5,409 

4,048 

3,659 

389 

50 

Queen  Charlotte . 

10,853 

3,543 

7,310 

8,718 

8,376 

342 

52 

Prince  Rupert . 

47,137 

29,291 

17,846 

23,560 

23,086 

474 

54 

Bulkley  Valley . 

30,917 

1  7,045 

13,872 

18,006 

17,343 

663 

55 

Burns  Lake . 

23,312 

12,179 

11,133 

12,680 

12,236 

444 

56 

Nechako . 

37,082 

16,632 

20,450 

22,664 

21,708 

956 

57 

Prince  George . 

155,344 

63,332 

92,012 

110,720 

108,055 

2,665 

59 

Peace  River  South . 

59,096 

30,860 

28,236 

37,881 

35,167 

2,714 

60 

Peace  River  North . 

63,939 

37,805 

26,134 

34,225 

34,115 

no 

61 

Greater  Victoria . 

150,148 

54,200 

95,948 

119,848 

117,206 

2,642 

62 

Sooke . 

56,374 

29,127 

27,247 

42,856 

42,598 

258 

PUBLIC  ACCOUNTS  1991/92 


E7 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  June  30,  1991 — Continued 
(Unaudited) 


(In  Thousands) 

Balance  Sheet  Operating  Statement 


Assets 

Liabilities 

Equity 

Income 

Expenditure 

Surplus 

School  Districts 

$ 

$ 

$ 

$ 

$ 

$ 

63 

Saanich . 

.  46,352 

18,355 

27,997 

40,21 1 

37,535 

2,676 

64 

Gulf  Islands . 

.  18,576 

10,022 

8,554 

12,049 

1 1,944 

105 

65 

Cowichan . 

.  47,802 

18,263 

29,539 

41,144 

41,234 

(90) 

66 

LakeCowichan . 

.  12,556 

6,369 

6,187 

7,148 

7,204 

(56) 

68 

Nanaimo . 

.  120,961 

58,190 

62,771 

72,101 

71,675 

426 

69 

Qualicum . 

.  41,818 

25,250 

16,568 

26,153 

25,847 

306 

70 

Alberni . 

.  36,569 

8,721 

27,848 

35,107 

34,757 

350 

71 

Courtenay . 

.  51,301 

26,039 

25,262 

42,667 

41,867 

800 

72 

Campbell  River . 

.  59,280 

26,882 

32,398 

38,926 

38,092 

834 

75 

Mission . 

.  55,829 

39,716 

16,1 13 

35,431 

35,007 

424 

76 

Agassiz-Harrison . 

.  6,306 

2,404 

3,902 

5,482 

5,083 

399 

77 

Summerland . 

.  12,325 

6,052 

6,273 

8,557 

8,333 

224 

80 

Kitimat . 

.  23,973 

7,952 

16,021 

13,902 

13,390 

512 

81 

Fort  Nelson . 

.  14,249 

6,324 

7,925 

7,591 

7,212 

379 

84 

Vancouver  Island  West . 

.  12,154 

4,038 

8,1 16 

6,992 

6,753 

239 

85 

Vancouver  Island  North . 

.  43,297 

21,457 

21,840 

20,291 

20,229 

62 

86 

Creston-Kaslo . 

.  26,283 

15,147 

1 1,136 

15,879 

15,841 

38 

87 

Stikine . 

.  21,562 

14,028 

7,534 

7,471 

7,133 

338 

88 

Terrace . 

.  60,352 

27,869 

32,483 

33,953 

32,135 

1,818 

89 

Shuswap  . 

.  59,280 

26,942 

32,338 

32,725 

32,872 

(147) 

92 

Nisga'a . 

.  10,927 

2,155 

8,772 

5,046 

5,136 

(90) 

4,160,149 

1,979,663 

2,180,486 

2,940,865 

2,887,137 

53,728 

The  figures  on  this  schedule  are  a  summation  taken  from  the  audited  financial  statements  of  individual  School  Districts.  Totals  are  shown  only  to  give  the  reader  an 
idea  of  the  scope  of  the  organization  on  a  collective  basis.  The  financial  statements  of  individual  School  Districts  may  be  requested.  (See  introduction). 


E8 


PROVINCE  OF  BRITISH  COLUMBIA 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  under  the  Financial  Information  Act 
for  the  Year  Ended  March  31, 1991 

(Unaudited) 


Hospital  Societies 

1 00  Mile  District  Hospital  Society . 

Arbutus  Society  for  Children . 

Armstrong  &  Spallumcheen  Health  Care  Society 

Arrow  Lakes  Hospital  Society . 

Arthritis  Society,  The . 

Ashcroft  and  District  General  Hospital . 

Barriere  &  District  Health  Society . 

Bella  Coola  General  Hospital . 

Boundary  Hospital  Society . 

British  Columbia  Cancer  Agency . 

British  Columbia  Children's  Hospital . 

British  Columbia  Rehabilitation  Society 

(G.F.  Strong) . 

Bulkley  Valley  District  Hospital  Society . 

Burnaby  Hospital  Society . 

Burns  Lake  &  District  Hospital  Society . 

Campbell  River  &  District  General  Hospital 

Society . 

Cariboo  Memorial  Hospital  Society . 

Cassiar  Hospital  Society,  The . 

Castlegar  &  District  Hospital  Society . 

Chase  &  District  Health  Society . 

Chemainus  General  Hospital . 

Chetwynd  &  District  Hospital  Society . 

Chilliwack  General  Hospital  Society . 

Cowichan  District  Hospital  Association,  The... 

Cranbrook  Regional  Hospital  Society . 

Creston  Valley  Hospital  Association . 

Cumberland  Health  Care  Society . 

Dawson  Creek  &  District  Hospital  Society . 

Delta  Centennial  Hospital  Society . 

Dr.  Helmcken  Memorial  Hospital  Society . 

Elkford  &  District  D  &  T  Centre  Society . 

Fernie  District  Hospital  Society . 

Fort  Nelson  Hospital  Society . 

Fort  St.  John  &  District  Hospital  Society . 

Fraser  Canyon  Hospital  Association . 

Fraser  Lake  &  District  Health  Society . 

Fraser-Burrard  Hospital  Society,  The . 

Gold  River  Health  Clinic  Society . 

Golden  &  District  General  Hospital  Society  .... 

Greater  Victoria  Hospital  Society,  The . 

G.R.  Baker  Memorial  Hospital  Society . 

Holy  Family  Hospital . 

Houston  Health  Care  Services  Society . 

Hudson's  Hope  Health  Care  Society . 

Juan  de  Fuca  Hospital  Society . 

Kelowna  &  District  Hospital  Society . 

Keremeos  Diagnostic  &  Treatment  Centre . 

Kimberley  &  District  Hospital  Society . 

Kitimat  General  Hospital  Society . 

Kootenay  Lake  District  Hospital . 

Lady  Minto  Gulf  Islands  Hospital,  The . 

Ladysmith  &  District  Hospital  Association . 


(In  Thousands) 


Balance  Sheet 

Assets 

Liabilities 

Equity 

$ 

$ 

$ 

4,201 

638 

3,564 

11,196 

2,328 

8,867 

6,663 

613 

6,050 

1,812 

385 

1,428 

3,732 

1,086 

2,646 

2,338 

367 

1,971 

662 

29 

633 

1 ,660 

223 

1,437 

4,541 

1,228 

3,313 

68,454 

17,207 

51,247 

31,426 

17,429 

13,997 

14,154 

5,933 

8,221 

4,721 

979 

3,743 

41,402 

10,178 

31,224 

1,436 

671 

764 

18,833 

2,776 

16,057 

11,014 

1,700 

9,314 

436 

96 

340 

10,773 

1,723 

9,051 

944 

54 

890 

1,549 

310 

1,239 

1,865 

196 

1,669 

38,391 

4,442 

33,949 

12,140 

3,453 

8,687 

24,191 

2,528 

21,662 

3,619 

653 

2,966 

2,107 

457 

1,650 

7,306 

1,252 

6,054 

7,559 

2,060 

5,499 

921 

164 

757 

1,048 

40 

1,008 

2,540 

403 

2,137 

3,715 

499 

3,217 

7,959 

1,430 

6,528 

6,608 

662 

5,946 

1,680 

43 

1,637 

145,967 

26,082 

119,885 

939 

84 

856 

2,503 

836 

1,667 

113,267 

37,534 

75,733 

18,537 

1,727 

16,809 

6,592 

1,833 

4,759 

1,790 

149 

1,641 

613 

23 

590 

20,434 

3,346 

17,088 

71,659 

16,227 

55,431 

559 

120 

439 

3,494 

996 

2,498 

5,762 

1,309 

4,453 

8,124 

2,326 

5,798 

4,270 

481 

3,789 

2,129 

703 

1,427 

Operating  Statement 


Revenue 

Expenditure 

Surplus 

$ 

$ 

$ 

4,330 

4,288 

42 

13,839 

14,266 

(428) 

1,692 

1,770 

(77) 

2,347 

2,334 

13 

6,476 

6,106 

369 

2,596 

2,534 

61 

353 

347 

7 

1,303 

1,356 

(53) 

5,074 

5,555 

(481) 

72,943 

73,765 

(823) 

94,278 

94,162 

116 

37,633 

36,382 

1,251 

6,579 

6,409 

170 

61,334 

63,493 

(2,159) 

3,173 

3,268 

(94) 

16,700 

16,675 

26 

11,475 

11,393 

82 

842 

821 

21 

5,298 

5,326 

(28) 

455 

431 

24 

2,242 

2,282 

(40) 

2,127 

2,090 

37 

27,902 

28,294 

(392) 

21,821 

21,883 

(62) 

16,155 

16,636 

(481) 

4,902 

4,879 

23 

1,843 

1,815 

28 

10,619 

10,724 

(105) 

13,615 

14,544 

(929) 

1,338 

1,332 

6 

540 

529 

10 

4,224 

4,261 

(37) 

2,852 

2,793 

60 

9,736 

9,706 

29 

3,661 

3,645 

16 

563 

531 

32 

126,190 

125,605 

585 

399 

426 

(26) 

3,252 

3,200 

52 

233,993 

234,035 

(42) 

10,833 

10,851 

(18) 

13,029 

13,129 

(100) 

724 

728 

(3) 

375 

353 

22 

24,346 

24,530 

(184) 

73,660 

73,408 

252 

345 

348 

(2) 

4,419 

4,630 

(211) 

7,858 

7,898 

(40) 

11,896 

11,714 

182 

3,621 

3,568 

53 

3,656 

3,959 

(304) 

PUBLIC  ACCOUNTS  1991/92 


E9 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  March  31, 1991 — Continued 
(Unaudited) 


(In  Thousands) 


Hospital  Societies 

Langley  Memorial  Hospital . 

Lillooet  District  Hospital  Society . 

Logan  Lake  Health  Care  Society . 

Louis  Brier  Hospital . 

Mackenzie  Hospital  Society . 

Maple  Ridge  Hospital  Association . 

Matsqui-Sumas-Abbotsford  General  Hospital 

Society . 

McBride  &  District  Hospital  Society . 

Mennonite  Benevolent  Society . 

Mission  Memorial  Hospital  Society . 

Mount  Saint  Joseph  Hospital  Society . 

Mount  St.  Francis  Hospital . 

Mount  St.  Mary  Hospital . 

Nanaimo  Regional  General  Hospital  Society... 

Nicola  Valley  Health  Care  Society . 

Nisgaa  Valley  Health  Board . 

North  and  West  Vancouver  Hospital  Society, 

The . 

Omineca  Hospital  Society  (Stuart  Lake  Hospital) 
Omineca  Hospital  Society  (St.  John  Hospital) .. 

Overlander  Hospital  Society . 

Pacific  Health  Care  Society . 

Peace  Arch  District  Hospital  Society . 

Pemberton  &  District  Hospital  Society . 

Penticton  Hospital  Society . 

Port  Alice  Hospital  Society . 

Port  Hardy  Hospital  Society . 

Port  McNeil  &  District  Hospital  Society . 

Pouce  Coupe  Community  Hospital  Society . 

Powell  River  Hospital  Society . 

Prince  George  and  District  Hospital  Society .... 
Prince  Rupert  Regional  Hospital  Association ... 

Princeton  Hospital  Society . 

Queen  Charlotte  Islands  Hospital  Society . 

Revelstoke  District  Health  Society . 

Richmond  Hospital  Society . 

Rossland  Hospital  Society,  The . 

Royal  Inland  Hospital . 

R.W.  Large  Memorial  Hospital  of  the  United 

Church  of  Canada . 

Saanich  Peninsula  Hospital  Society . 

Salvation  Army  Grace  Hospital,  The . 

Slocan  Community  Hospital  &  Health  Care 

Society . 

Society  of  Enderby  and  District  Memorial 

Hospital . 

Society  of  The  Shuswap  Lake  General  Hospital, 

The . 

South  Okanagan  Hospital  Society . 

Sparwood  General  Hospital  Society . 

Squamish  Health  Care  Society . 

Stewart  General  Hospital  Association . 


Balance  Sheet 

Assets 

Liabilities 

Equity 

$ 

$ 

$ 

28,855 

6,657 

22,198 

4,488 

391 

4,097 

658 

52 

606 

5,260 

2,870 

2,390 

920 

564 

356 

23,711 

4,794 

18,917 

22,163 

5,609 

16,554 

1,180 

339 

841 

1,234 

316 

919 

7,939 

3,056 

4,883 

15,316 

6,019 

9,297 

2,093 

491 

1,603 

2,572 

915 

1,657 

54,940 

12,125 

42,816 

5,262 

748 

4,513 

2,861 

202 

2,659 

60,066 

14,820 

45,246 

1,681 

252 

1,429 

2,373 

779 

1,594 

8,385 

1,383 

7,002 

15,296 

3,127 

12,170 

27,046 

6,343 

20,703 

702 

70 

632 

27,470 

5,681 

21,788 

435 

189 

245 

4,501 

558 

3,943 

1,891 

1,013 

878 

2,934 

338 

2,596 

12,750 

2,495 

10,255 

41,759 

8,938 

32,821 

7,353 

1,932 

5,421 

1,964 

343 

1,621 

1,994 

230 

1,764 

5,187 

1,344 

3,843 

24,441 

7,286 

17,156 

1,596 

316 

1,279 

47,143 

15,098 

32,045 

1,279 

302 

978 

8,300 

2,346 

5,954 

9,284 

5,792 

3,492 

3,168 

300 

2,869 

1,851 

621 

1,230 

10,897 

2,659 

8,238 

3,898 

1,286 

2,611 

3,973 

576 

3,397 

11,910 

2,415 

9,495 

659 

268 

391 

Operating  Statement 


Revenue 

Expenditure 

Surplus 

$ 

$ 

$ 

32,758 

33,350 

(592) 

2,476 

2,526 

(50) 

355 

336 

19 

4,825 

4,862 

(37) 

1,681 

2,041 

(360) 

25,135 

25,879 

(743) 

37,692 

38,331 

(639) 

1,661 

1,623 

37 

3,047 

3,018 

29 

15,119 

15,872 

(753) 

25,215 

25,524 

(309) 

3,789 

3,740 

49 

5,483 

5,518 

(35) 

49,464 

49,787 

(322) 

3,934 

3,935 

(1) 

510 

458 

51 

0 

0 

0 

1,901 

1,872 

29 

3,136 

3,287 

(151) 

9,361 

9,578 

(216) 

16,782 

16,410 

372 

33,471 

33,428 

43 

423 

417 

6 

35,227 

35,172 

56 

734 

727 

7 

2,305 

2,489 

(184) 

1,457 

1,549 

(92) 

2,600 

2,544 

56 

11,823 

11,945 

(122) 

52,291 

53,261 

(969) 

12,071 

12,181 

(111) 

2,643 

2,661 

(17) 

2,065 

2,078 

(13) 

3,902 

3,966 

(64) 

35,913 

36,559 

(646) 

2,234 

2,244 

(10) 

63,021 

63,282 

(262) 

1,265 

1,244 

21 

17,213 

17,303 

(90) 

36,814 

36,678 

137 

1,897 

1,956 

(60) 

3,133 

3,044 

89 

9,942 

9,945 

(3) 

6,731 

6,843 

(112) 

2,801 

2,778 

23 

920 

859 

60 

587 

609 

(22) 

PROVINCE  OF  BRITISH  COLUMBIA 


E  10 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  March  31, 1991 — Continued 
(Unaudited) 


(In  Thousands) 

Balance  Sheet  Operating  Statement 


Assets 

Liabilities 

Equity 

Revenue 

Expenditure 

Surplus 

Hospital  Societies 

$ 

$ 

$ 

$ 

$ 

$ 

St.  Bartholomew's  Hospital  Society,  The . 

661 

195 

466 

1,304 

1,289 

15 

St.  George's  Hospital  Society . 

1,376 

282 

1,095 

2,063 

1,950 

113 

St.  Joseph's  General  Hospital . 

12,882 

3,701 

9,181 

21,934 

22,076 

(143) 

St.  Mary's  Hospital  Society . 

11,505 

1,833 

9,672 

8,918 

9,049 

(131) 

St.  Mary's  Hospital  (New  Westminster) . 

7,595 

3,993 

3,602 

21,482 

23,143 

(1,661) 

St.  Michael's  Centre  Hospital  Society . 

6,852 

1,562 

5,290 

1,939 

1,866 

73 

St.  Paul's  Hospital . 

65,817 

20,535 

45,282 

125,483 

126,841 

(1,358) 

St.  Vincent's  Arbutus  Hospital  Society . 

1,335 

548 

786 

3,337 

3,250 

87 

St.  Vincent's  Hospital . 

10,697 

4,231 

6,466 

20,974 

21,269 

(296) 

Summerland  Hospital  Society,  The . 

4,074 

695 

3,379 

4,753 

4,791 

(38) 

Sunny  Hill  Hospital  for  Children . 

6,260 

1,328 

4,931 

7,998 

7,952 

46 

Surrey  Memorial  Hospital  Society . 

46,818 

12,960 

33,858 

69,636 

69,415 

222 

Tahsis  Hospital  Society . 

888 

94 

794 

703 

697 

6 

Terrace  Regional  Health  Care  Society . 

8,865 

1,858 

7,008 

10,774 

10,919 

(145) 

Tofino  Hospital  Society . 

788 

259 

529 

1,603 

1,623 

(20) 

Trail  Regional  Hospital  Society . 

10,052 

4,095 

5,958 

23,165 

22,801 

364 

Trillium  Health  Care  Society . 

3,195 

241 

2,954 

2,449 

2,440 

9 

Tumbler  Ridge  Health  Care  Services  Society  ... 

2,260 

141 

2,119 

909 

929 

(19) 

University  Hospital  Society . 

42,414 

29,520 

12,895 

170,543 

170,345 

197 

Valemount  Health  Planning  Society . 

776 

113 

663 

340 

336 

4 

Vancouver  General  Hospital . 

132,636 

143,968 

(1  1,332) 

260,538 

263,076 

(2,538) 

Vernon  jubilee  Hospital  Society . 

40,082 

5,968 

34,114 

37,065 

37,409 

(345) 

Victorian  Hospital  &  Health  Service  Society  of 
Kaslo . 

652 

121 

531 

775 

818 

(43) 

West  Coast  General  Hospital  Society,  The . 

7,881 

2,777 

5,105 

13,737 

13,916 

(179) 

Whistler  Health  Care  Society . 

806 

166 

640 

985 

992 

(8) 

Winderemere  District  Hospital  Association, 
The . 

8,035 

1,623 

6,412 

2,877 

2,903 

(26) 

Wrinch  Memorial  Hospital . 

2,539 

597 

1,942 

3,178 

3,123 

55 

1,739,615 

555,660 

1,183,955 

2,411,287 

2,428,025 

(16,738) 

Almost  all  long-term  debt  associated  with  constuction  projects  is  the  responsibility  of  the  hospital  districts.  As  a  as  a  result,  these  hospital  societies'  financial  statements 
do  not  reflect  this  long  term  debt  and  the  associated  interest  expenses. 

Net  earnings  (losses)  are  for  the  operating  funds  only  and  do  not  include  other  funds. 

For  consistency,  deferred  capital  income  reported  in  the  balance  sheet  of  some  hospitals  was  classified  as  equity. 

The  figures  on  this  schedule  are  a  summation  of  the  audited  financial  statements  of  British  Columbia  Hospital  Societies.  Totals  shown  are  only  to  give  the  reader  an 
idea  of  the  scope  of  the  organizations  on  a  collective  basis.  Financial  statements  of  individual  hospital  societies  may  be  requested.  (See  introduction). 


PUBLIC  ACCOUNTS  1 991/92 


Ell 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  December  31,  1990 

(Unaudited) 


(In  Thousands) 


Balance  Sheet 


Operating  Statement 


Assets 

Liabilities 

Equity 

Revenue 

Expenditure 

Surplus 

Municipalities 

$ 

$ 

$ 

$ 

$ 

$ 

Cities: 

Armstrong . 

.  11,972 

2,974 

8,998 

2,873 

2,755 

118 

Castlegar . 

.  29,866 

8,509 

21,357 

7,427 

7,395 

32 

Colwood . 

.  10,090 

926 

9,164 

4,569 

4,296 

273 

Courtenay . 

.  21,996 

3,950 

18,046 

11,154 

11,044 

110 

Cranbrook . 

.  80,874 

28,194 

52,680 

18,561 

17,664 

897 

Dawson  Creek . 

.  72,657 

26,345 

46,312 

15,578 

15,230 

348 

Duncan . 

.  19,765 

3,305 

16,460 

4,605 

4,551 

54 

Enderby . 

.  6,549 

2,148 

4,401 

1,455 

1,435 

20 

Fernie . 

.  33,480 

12,344 

21,136 

7,440 

7,353 

87 

Fort  St.  John . 

.  56,518 

20,822 

35,696 

16,038 

15,876 

162 

Grand  Forks . 

.  21,046 

3,471 

17,575 

4,817 

4,638 

179 

Greenwood . ! . 

.  3,573 

1,215 

2,358 

693 

669 

24 

Kamloops . 

.  306,234 

108,066 

198,168 

58,090 

59,781 

(1,691) 

Kelowna . 

.  253,371 

68,959 

184,412 

75,242 

74,032 

1,210 

Kimberley . 

.  39,266 

10,130 

29,136 

8,560 

8,504 

56 

Langley . 

.  53,126 

6,661 

46,465 

12,231 

12,283 

(52) 

Merritt . 

.  18,977 

3,305 

15,672 

4,488 

4,232 

256 

Nanaimo . 

.  189,041 

47,877 

141,164 

64,982 

62,126 

2,856 

Nelson . 

.  48,354 

6,279 

42,075 

17,190 

17,129 

61 

New  Westminster . 

.  125,703 

24,461 

101,242 

59,555 

58,736 

819 

North  Vancouver . 

.  160,577 

24,135 

136,442 

34,986 

34,303 

683 

Parksville . 

.  24,224 

7,586 

16,638 

7,705 

7,597 

108 

Penticton . 

.  135,447 

27,082 

108,365 

35,282 

34,857 

425 

Port  Alberni . 

.  66,514 

9,428 

57,086 

20,977 

20,275 

702 

Port  Coquitlam . 

.  79,900 

7,184 

72,716 

25,811 

25,779 

32 

Port  Moody . 

.  61,179 

6,923 

54,256 

16,566 

15,843 

723 

Prince  George . 

.  315,891 

68,125 

247,766 

59,727 

58,659 

1,068 

Prince  Rupert . 

.  127,436 

29,873 

97,563 

37,182 

36,374 

808 

Quesnel . 

.  31,547 

7,717 

23,830 

11,284 

11,260 

24 

Revel  stoke . 

.  36,605 

4,669 

31,936 

7,813 

7,583 

230 

Richmond . 

.  557,090 

82,629 

474,461 

102,243 

98,663 

3,580 

Rossland . 

.  7,116 

2,404 

4,712 

3,707 

3,741 

(34) 

Terrace . 

.  35,270 

10,258 

25,012 

11,959 

11,284 

675 

Trail . 

.  41,218 

11,845 

29,373 

16,350 

16,295 

55 

Vancouver . 

.  3,392,488 

618,345 

2,774,143 

601,967 

588,145 

13,822 

Vernon . 

.  93,747 

29,525 

64,222 

20,049 

19,890 

159 

Victoria . 

.  223,671 

30,785 

192,886 

85,381 

83,676 

1,705 

White  Rock . 

.  30,635 

4,905 

25,730 

11,378 

11,300 

78 

Williams  Lake . 

.  35,853 

9,976 

25,877 

9,711 

9,349 

362 

6,858,866 

1,383,335 

5,475,531 

1,515,626 

1,484,602 

31,024 

PROVINCE  OF  BRITISH  COLUMBIA 


E  12 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  December  31, 1990 — Continued 
(Unaudited) 


In  Thousands) 


Balance  Sheet 


Operati  ng  Statement 


Assets 

Liabilities 

Equity 

Revenue 

Expenditure 

Surplus 

Municipalities 

$ 

$ 

$ 

$ 

$ 

$ 

Districts: 

Abbotsford . 

.  71,248 

26,134 

45,114 

15,958 

14,693 

1,265 

Burnaby  . 

.  1,316,843 

70,729 

1,246,114 

149,327 

144,605 

4,722 

Campbell  River . 

.  94,983 

29,161 

65,822 

21,039 

21,000 

39 

Central  Saanich . 

.  30,840 

3,728 

27,112 

9,767 

9,320 

447 

Chetwynd . 

.  19,925 

4,760 

15,165 

3,258 

3,251 

7 

Chilliwack . 

.  158,152 

30,148 

128,004 

38,810 

38,722 

88 

Coldstream . 

.  14,021 

4,694 

9,327 

4,037 

3,902 

135 

Coquitlam . 

.  228,831 

48,967 

179,864 

54,081 

52,755 

1,326 

Delta . 

.  297,891 

86,613 

211,278 

71,107 

68,656 

2,451 

Elkford . 

.  41,891 

14,385 

27,506 

7,988 

7,720 

268 

Esquimalt . 

.  30,209 

7,102 

23,107 

12,710 

12,412 

298 

Houston . 

.  13,560 

2,679 

10,881 

3,248 

3,037 

211 

Hudson's  Hope . . . 

.  6,918 

1,310 

5,608 

1,956 

1,933 

23 

Invermere . 

.  14,690 

8,048 

6,642 

2,806 

2,767 

39 

Kent . 

.  10,987 

1,753 

9,234 

3,308 

3,259 

49 

Kitimat . 

.  52,196 

10,362 

41,834 

15,323 

14,591 

732 

Langley . 

.  218,229 

38,130 

1 80,099 

40,382 

39,589 

793 

Logan  Lake . 

.  8,244 

3,122 

5,122 

2,264 

2,103 

161 

Mackenzie . 

.  30,800 

6,519 

24,281 

7,071 

6,937 

134 

Maple  Ridge . 

.  201,942 

51,596 

150,346 

32,808 

32,186 

622 

Matsqui . 

.  140,042 

37,349 

102,693 

41,842 

40,763 

1,079 

Metchosin . 

.  5,007 

337 

4,670 

1,411 

1,288 

123 

Mission . 

.  79,744 

25,178 

54,566 

22,150 

21,475 

675 

New  Hazelton . 

.  5,009 

704 

4,305 

890 

855 

35 

North  Cowichan . 

.  71,116 

9,304 

61,812 

14,701 

14,197 

504 

North  Saanich . 

.  19,220 

1,975 

17,245 

5,632 

5,623 

9 

North  Vancouver . 

.  266,879 

24,892 

241,987 

51,667 

50,409 

1,258 

Oak  Bay . 

.  53,225 

6,943 

46,282 

19,342 

19,316 

26 

Peachland . 

.  10,210 

2,183 

8,027 

2,525 

2,376 

149 

Pitt  Meadows . 

.  34,097 

4,182 

29,915 

5,699 

5,187 

512 

Port  Hardy . 

.  31,190 

5,091 

26,099 

5,489 

5,380 

109 

Powell  River . 

.  56,072 

14,309 

41,763 

16,689 

16,581 

108 

Saanich . 

.  184,430 

40,519 

143,911 

61,038 

59,834 

1,204 

Salmon  Arm . 

.  65,466 

11,970 

53,496 

9,842 

9,854 

(12) 

Sechelt . 

.  9,106 

2,577 

6,529 

2,733 

2,736 

(3) 

Sechelt  Indian . 

.  121 

67 

54 

325 

327 

(2) 

Sicamous . 

.  3,994 

1,086 

2,908 

2,536 

2,240 

296 

Spallumcheen . 

.  6,808 

179 

6,629 

2,102 

2,083 

19 

Sparwood . 

.  50,265 

7,487 

42,778 

7,598 

7,233 

365 

Squamish . 

.  42,297 

12,741 

29,556 

10,448 

10,121 

327 

Stewart . 

.  7,619 

1,492 

6,127 

1,965 

1,982 

(17) 

Summerland . 

. ;  34,962 

7,615 

27,347 

8,898 

8,694 

204 

Surrey . 

.  776,654 

173,308 

603,346 

185,661 

183,588 

2,073 

Taylor . 

.  8,780 

1,554 

7,226 

2,521 

2,446 

75 

Tofino . 

.  11,041 

256 

10,785 

1,221 

1,220 

1 

Tumbler  Ridge . 

.  60,107 

35,116 

24,991 

11,461 

10,769 

692 

Vanderhoof . 

.  10,924 

2,271 

8,653 

2,955 

2,935 

20 

West  Vancouver . 

.  141,005 

48,545 

92,460 

56,388 

56,169 

219 

Whistler . 

.  81,097 

37,778 

43,319 

14,330 

13,612 

718 

5,128,887 

966,948 

4,161,939 

1,067,307 

1,042,731 

24,576 

PUBLIC  ACCOUNTS  1 991/92 


E13 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  December  31, 1990 — Continued 
(Unaudited) 


Municipalities 

Towns: 

Comox . 

Creston . 

Fort  Nelson . 

Gibsons . 

Golden . 

Hope . 

Ladysmith . 

Osoyoos . 

Port  McNeill . 

Princeton . 

Qualicum  Beach  .. 

Sidney . 

Smithers . 

View  Royal . 


Villages: 

1 00  Mile  House . 

Alert  Bay . 

Anmore . 

Ashcroft . 

Belcarra . 

Burns  Lake . 

Cache  Creek . 

Chase . 

Clinton . 

Cumberland . 

Fort  St.  James . 

Fraser  Lake . 

Fruitvale . 

Gold  River . 

Granisle . 

Harrison  Hot  Springs 

Hazelton . 

Kaslo . 

Keremeos . 

Lake  Cowichan . 

Lillooet . 

Lions  Bay . 

Lumby . 

Lytton . 

Masset . 

McBride . 

Midway . 

Montrose . 

Nakusp . 

New  Denver . 

Oliver . 

Pemberton . 

Port  Alice . 

Port  Clements . 


(In  Thousands) 


Balance  Sheet 


Assets 

Liabilities 

Equity 

$ 

$ 

$ 

13,238 

1,328 

1 1,910 

19,032 

5,660 

13,372 

21,870 

6,747 

15,123 

11,880 

2,357 

9,523 

13,867 

4,283 

9,584 

9,122 

723 

8,399 

20,170 

6,905 

13,265 

16,138 

5,557 

10,581 

8,661 

1,142 

7,519 

8,962 

1,603 

7,359 

20,168 

4,643 

15,525 

29,498 

6,957 

22,541 

31,120 

8,380 

22,740 

11,593 

4,832 

6,761 

235,319 

61,117 

174,202 

8,964 

3,065 

5,899 

3,858 

238 

3,620 

953 

95 

858 

9,783 

2,740 

7,043 

993 

74 

919 

10,594 

2,177 

8,417 

4,866 

2,005 

2,861 

8,950 

3,509 

5,441 

2,330 

352 

1,978 

5,140 

502 

4,638 

9,808 

3,255 

6,553 

5,252 

1,512 

3,740 

4,001 

977 

3,024 

13,813 

2,595 

11,218 

2,929 

397 

2,532 

5,123 

1,146 

3,977 

3,432 

831 

2,601 

3,395 

1,241 

2,154 

4,322 

1,771 

2,551 

8,803 

3,444 

5,359 

-7,257 

2,095 

5,162 

2,661 

215 

2,446 

3,982 

690 

3,292 

1,775 

354 

1,421 

6,263 

1,103 

5,160 

2,458 

501 

1,957 

2,534 

145 

2,389 

3,339 

834 

2,505 

7,124 

625 

6,499 

2,119 

454 

1,665 

15,034 

5,078 

9,956 

7,909 

1,044 

6,865 

2,838 

533 

2,305 

3,232 

1,520 

1,712 

Operating  Statement 


Revenue 

Expenditure 

Surplus 

$ 

$ 

$ 

6,790 

6,458 

332 

3,583 

3,440 

143 

4,546 

4,505 

41 

3,028 

2,969 

59 

3,445 

3,262 

183 

2,927 

2,765 

162 

4,555 

4,187 

368 

3,450 

3,226 

224 

1,477 

1,503 

(26) 

1,964 

1,962 

2 

4,854 

4,716 

138 

7,939 

7,867 

72 

4,756 

4,524 

232 

4,196 

4,169 

27 

57,510 

55,553 

1,957 

2,245 

2,102 

143 

740 

682 

58 

388 

308 

80 

2,263 

2,010 

253 

318 

314 

4 

1,828 

1,785 

43 

1,536 

1,372 

164 

1,867 

1,874 

(7) 

713 

667 

46 

1,433 

,1,338 

95 

2,048 

1,930 

118 

1,239 

1,237 

2 

1,357 

1,345 

12 

4,108 

3,926 

182 

1,115 

1,000 

115 

1,209 

1,089 

120 

763 

727 

36 

855 

839 

16 

1,019 

994 

25 

2,164 

2,036 

128 

1,169 

1,144 

25 

722 

651 

71 

881 

00 

100 

397 

349 

48 

1,110 

925 

185 

839 

775 

64 

465 

389 

76 

651 

649 

2 

1,466 

1,257 

209 

451 

447 

4 

3,383 

3,225 

158 

741 

708 

33 

1,352 

1,308 

44 

679 

658 

21 

E  14 


PROVINCE  OF  BRITISH  COLUMBIA 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 
for  the  Year  Ended  December  31, 1990 — Continued 
(Unaudited) 


(In  Thousands) 

Balance  Sheet  Operating  Statement 


Assets 

Liabilities 

Equity 

Revenue 

Expenditure 

Surplus 

Municipalities 

$ 

$ 

$ 

$ 

$ 

$ 

Port  Edward . 

.  9,972 

1,040 

8,932 

2,184 

2,148 

36 

Pouce  Coupe . 

.  4,864 

2,086 

2,778 

981 

887 

94 

Salmo . 

.  3,607 

726 

2,881 

809 

762 

47 

Say  ward . 

.  2,851 

731 

2,120 

521 

440 

81 

Silverton . 

1,292 

240 

1,052 

303 

265 

38 

Slocan . 

.  2,256 

743 

1,513 

519 

492 

27 

Tahsis . 

.  8,654 

1,547 

7,107 

2,296 

1,687 

609 

Telkwa . 

.  2,380 

681 

1,699 

659 

569 

90 

Ucluelet . 

.  6,468 

616 

5,852 

1,056 

1,033 

23 

Valemount . 

.  6,163 

1,550 

4,613 

1,475 

1,333 

142 

Warfield . 

.  4,272 

296 

3,976 

1,389 

1,276 

113 

Zeballos . 

.  1,472 

169 

1,303 

639 

611 

28 

240,085 

57,542 

182,543 

56,345 

52,344 

4,003 

Total  Municipalities . 

.  12,463,157 

2,468,942 

9,994,215 

2,696,788 

2,635,230 

61,558 

Regional  Districts 

Alberni-Clayoquot . 

.  11,538 

8,409 

3,129 

4,758 

4,770 

(12) 

Bulkley-Nechako . 

.  17,539 

14,714 

2,825 

4,516 

4,246 

270 

Capital . 

.  223,457 

141,052 

82,405 

64,925 

61,586 

3,339 

Cariboo . 

.  61,488 

42,117 

19,371 

14,457 

14,533 

(76) 

Central  Coast . 

.  2,047 

148 

1,899 

257 

257 

0 

Central  Fraser . 

.  94,943 

75,837 

19,106 

13,595 

13,453 

142 

Central  Kootenay . 

.  36,273 

20,725 

15,548 

12,537 

10,841 

1,696 

Central  Okanagan . 

.  63,338 

49,640 

13,698 

15,482 

15,114 

368 

Columbia  Shuswap . 

.  28,542 

20,256 

8,286 

8,783 

8,033 

750 

Comox-Strathcona . 

.  80,567 

56,252 

24,315 

17,610 

16,598 

1,012 

Cowichan  Valley . . . 

.  44,516 

23,864 

20,652 

14,317 

13,001 

1,316 

Dewdney-Alouette . 

.  61,020 

52,064 

8,956 

9,978 

9,877 

101 

East  Kootenay . 

.  73,091 

64,251 

8,840 

15,101 

14,290 

811 

Fort  Nelson-Liard . 

.  9,599 

6,579 

3,020 

4,306 

4,066 

240 

Fraser-Cheam . 

.  27,362 

20,000 

7,362 

6,885 

6,547 

338 

Fraser-Fort  George . 

.  67,209 

60,880 

6,329 

15,193 

14,512 

681 

Greater  Vancouver . 

.  300,223 

248,738 

51,485 

65,537 

64,586 

951 

Kitimat-Stikine . 

.  22,433 

17,117 

5,316 

5,060 

5,104 

(44) 

Kootenay-Boundary . 

.  30,265 

16,119 

14,146 

13,479 

12,646 

833 

Mount  Waddington . 

.  8,552 

5,348 

3,204 

2,129 

2,148 

(19) 

Nanaimo . 

.  112,870 

79,019 

33,851 

27,476 

25,630 

1,846 

North  Okanagan . 

.  42,565 

30,848 

11,717 

12,552 

12,204 

348 

Okanagan-Similkameen . 

.  34,723 

28,276 

6,447 

9,824 

9,316 

508 

Peace  River . 

.  85,572 

75,928 

9,644 

20,343 

19,435 

908 

Powell  River . 

.  11,375 

9,208 

2,167 

2,824 

2,436 

388 

Skeena-Queen  Charlotte . 

.  27,717 

26,337 

1,380 

6,092 

5,855 

237 

Squamish-Lillooet . 

.  20,180 

18,779 

1,401 

4,119 

4,103 

16 

Sunshine  Coast . 

.  24,988 

10,293 

14,695 

8,112 

7,900 

212 

Thompson-Nicola . 

.  79,063 

73,791 

5,272 

21,425 

20,389 

1,036 

Total  Regional  District . 

.  1,703,055 

1,296,589 

406,466 

421,672 

403,476 

18,196 

The  figures  on  this  schedule  are  a  summation  of  the  various  local  government  funds.  No  eliminations  have  been  made  for  inter-fund  transfers.  The  operating  statements 
for  municipalities  do  not  include  taxation  collected  for  other  goverments  (eg.  school,  hospital,  British  Columbia  Assessment  Authority,  Municipal  Finance  Authority  and 
other)  but  do  not  include  taxation  for  regional  district  purposes.  The  financial  statements  of  individual  municipalities  and  regional  districts  may  be  requested.  (See 
introduction). 


PUBLIC  ACCOUNTS  1991/92 


E15 


Summary  of  Audited  Financial  Statements  of  Public  Bodies 
Reporting  Under  the  Financial  Information  Act 

(Unaudited) 


Other  Public  Bodies 

Discovery  Foundation . 

Insurance  Council  of  British  Columbia 
Legal  Services  Society . 


(In  Thousands) 


Balance  Sheet 

Assets 

Liabilities 

Equity 

$ 

$ 

$ 

34,601 

27,902 

6,699 

731 

200 

531 

5,877 

10,213 

(4,336) 

41,209 

38,315 

2,894 

Operating  Statement 


Revenue 

Expenditure 

Surplus 

$ 

$ 

$ 

5,544 

4,612 

932 

802 

858 

(56) 

62,639 

65,522 

(2,883) 

68,985 

70,992 

(2,007) 

The  financial  information  presented  is  at  the  following  dates:  Discovery  Foundation — March  31,  1991,  Insurance  Council  of  British  Columbia — May  31 ,  1991 ,  Legal 
Services  Society — March  31, 1992. 

Included  in  this  summary  are  only  those  reporting  entities  that  are  not  reported  in  the  Summary  Financial  Statements  in  section  B.  Totals  are  shown  only  to  give  the 
reader  an  idea  of  scope  of  other  public  bodies  reporting  under  the  Financial  Information  Act.  The  financial  statements  of  these  entities  maybe  requested.  (Seeintroduction). 


Ministry  of  Finance  and  Corporate  Relations,  Office  of  the  Comptroller  General 


Queen's  Printer  for  British  Columbia® 
Victoria,  1992