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I GOV 
| DOC 
CA2 
: BC 
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i P72I 
1983 sv. 

Province of British Columbia 

GOV PUB 


UNIVERSITY OF ALBERTA LIBRARY 





Ex LIBRIS 
UNI VERSITATI S 
ALBERT/ENSIS 




Province of British Columbia 


Public Accounts 
of 

British Columbia 



VOLUME III — TRUST FUNDS, CROWN CORPORATIONS 
AND AGENCIES 


HON. HUGH A. CURTIS 
Minister of Finance 


British Columbia Cataloguing in Publication Data 

British Columbia. Ministry of Finance. 

Public accounts of British Columbia. — 1977/78- 

Annual. 

Continues: British Columbia. Ministry of Finance. 

Public accounts. ISSN 0382-2001 
Report year ends March 3 1 . 

Vols. for 1978/79-1979/80 issued in 2 v.: v. 1. 

Financial statements — v. 2. Schedules of payments. 

Vols. for 1980/81 — issued in 3 v.: v. 1. Financial 
statements — v. 2. Schedule of payments — v. 3. 

Trust funds, crown corporations and agencies. 

ISSN 0382-2001 = Public Accounts of British Columbia. 

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

HJ13.B75 354.71 10072'31'05 


Available to the General Public from: 
QUEEN’S PRINTER 
506 Government Street 
Victoria, B.C. 

V8V 4R6 


PRICE 

Volume I, II, or III $11.25 each 

Complete set $28.00 


U:\tfVEftSJTY LIBRARY 
UNIVERSITY OF ALEERTA 


PUBLIC ACCOUNTS 1982/83 


ORDER OF PUBLIC ACCOUNTS 

Volume I Section 

Introduction to the Public Accounts 

Summary financial statements of the Province A 

Combined General and Special Purpose Funds (Consolidated Revenue Fund) 
financial statements B 

Consolidated financial statements of the Province C 

Trust Funds Under Administration D 

Details of expenditure by ministerial appropriations and statutory appropria- 
tions, and detailed Special Purpose Funds transactions E 

Volume II 

Detailed schedules of salaries, wages, travel expenses and other payments F 

Volume III 

Financial statements of Crown corporations and other Government agencies G 

Trust Funds Under Administration, including pension and superannuation 
funds administered by the Government H 

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


Digitized by the Internet Archive 
in 2017 with funding from 
University of Alberta Libraries 


https://archive.org/details/britishcolumbiap03brit_1 


PUBLIC ACCOUNTS 1982/83 


SECTION G 

FINANCIAL STATEMENTS OF CROWN CORPORATIONS AND 
OTHER GOVERNMENT AGENCIES 

CONTENTS 

Page 

British Columbia Assessment Authority G 2 

British Columbia Buildings Corporation G 9 

British Columbia Cellulose Company G 18 

British Columbia Development Corporation G 24 

British Columbia Educational Institutions Capital Financing Authority G 29 

British Columbia Ferry Corporation G 36 

British Columbia Harbours Board G 50 

British Columbia Health Care Research Foundation G 57 

British Columbia Heritage Trust G 61 

British Columbia Housing and Employment Development Financing Authority G 67 

British Columbia Housing Management Commission G 72 

British Columbia Hydro and Power Authority G 78 

British Columbia Institute of Technology G 92 

British Columbia Liquor Distribution Branch G 104 

British Columbia Petroleum Corporation G 1 12 

British Columbia Place Ltd G 118 

British Columbia Railway Company G 123 

British Columbia Regional Hospital Districts Financing Authority G 136 

British Columbia School Districts Capital Financing Authority G 143 

British Columbia Steamship Company (1975) Ltd G 154 

British Columbia Systems Corporation G 163 

British Columbia Transit G 1 73 

Creston Valley Wildlife Management Authority Trust Fund G 185 

Discovery Foundation G 189 

Expo ’86 Corporation G 195 

Health Facilities Association of British Columbia Not Available 

Housing Corporation of British Columbia G 203 

Insurance Corporation of British Columbia G 210 

Knowledge Network of the West Communications Authority G 218 

Legal Services Society G 225 

Medical Services Commission of British Columbia G 229 

Metro Transit Operating Company G 233 

Ocean Falls Corporation G 238 

Pacific Coach Lines Limited G 245 

Pacific Vocational Institute G 256 

Provincial Capital Commission G 267 

Provincial Rental Housing Corporation G 275 

Queen’s Printer G 285 

Science Council of British Columbia G 288 

Simon Fraser University G 294 

Surrey Farms Products Investments Ltd. G 307 

Universities Council G 313 

University of British Columbia G 317 

University of Victoria G 332 

Workers' Compensation Board of British Columbia G 345 


PROVINCE OF BRITISH COLUMBIA 


G 2 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


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

To the Minister of Finance 
Province of British Columbia: 


I have examined the balance sheet of the British Columbia 
Assessment Authority as at 31 December 1982 and the 
statement of revenue, expenditure and surplus for the year 
then ended. My examination was made in accordance with 
generally accepted auditing standards, and accordingly 
included such tests and other procedures as I considered 
necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Authority as at 31 December 1982 
and the results of its operations for the year then ended in 
accordance with generally accepted accounting principles 
applied, after giving retroactive effect to the changes in 
accounting policy to recognize accrued vacation pay and to 
depreciate fixed assets as explained in note 5 to the 
financial statements, on a basis consistent with that of the 
preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
30 March 1983 


PUBLIC ACCOUNTS 1982/83 


G 3 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
BALANCE SHEET 
AS AT DECEMBER 31, 1982 


1982 1981 

ASSETS 


Current Assets 


Cash and temporary investments 
Accounts receivable 

Prepaid expenses 

$2,320,204 

357,186 

225,032 

$2,189, 852 
338 , 991 
136,418 


2 , 902,422 

2,665,261 

Fixed Assets (Notes 3 and 5) 

Land, building, equipment & vehicles 
Less accumulated depreciation 

2,971,319 

2,080,208 

2,925,288 

2,023,051 


891,111 

902 ,237 


$3,793, 533 

$3,567,498 

LIABILITIES AND SURPLUS 



Current Liabilities 

Accounts payable and accrued 

$2 , 036,895 

$1 ,431 ,489 

liabilities (Note 5a) 



Surplus 

Appropriated 



Employees' past benefits (Note A) 
Property and equipment 

848,954 
891 ,111 

290,367 
902 ,237 

Unappropriated 

1,740,065 

16,573 

1,192, 604 
943 ,405 


1 , 756,638 

2 ,136,009 

Commitments (Note 9) 

$3,793,533 

$3,567,498 


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


Approved on behalf of the Authority 

/ 


A . 0 . Hood - Chairman of the Board 




PROVINCE OF BRITISH COLUMBIA 


G 4 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
STATEMENT OF REVENUE, EXPENDITURE AND SURPLUS 
FOR THE YEAR ENDED DECEMBER 31, 1982 

1982 1981 

REVENUE 


Province of British Columbia grant 


(Note 6 ) 

$ 9,328,836 

$ 8,378,883 

Tax levies (Note 7) 

23,596,810 

19,996,477 

Interest earned 

772 , 421 

735,479 

Other 

689,365 

773,450 


34,387,432 

29,884,289 

EXPENDITURE 



Salaries and fringe benefits (Note 5a) 

25 , 808 , 104 

22 , 079,878 

Directors' fees and expenses 

55,700 

67,993 

Accommodation expense 

1,915,906 

1 ,858,698 

Travel 

1 ,330,788 

1,285,831 

Office (Note 5b) 

2,125,823 

1 , 580 ,159 

Interest expense (Note 8) 

548,275 

505,280 

Professional and special services 

2,722,306 

2,290,719 

Depreciation (Note 5b) 

259,901 

241 ,501 


34,766, 803 

29,910,059 

EXCESS OF EXPENDITURE OVER REVENUE 

(379,371) 

(25,770) 


SURPLUS - BEGINNING OF YEAR 

As previously reported 

4 , 686 , 529 

4,622,996 

Prior period adjustments (Note 5) 

(2,550,520) 

(2,461 ,217) 

As restated 

2,136, 009 

2,161 ,779 

SURPLUS - END OF YEAR 

$1,756,638 

$ 2,136,009 


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


PUBLIC ACCOUNTS 1982/83 


G 5 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1. THE AUTHORITY 

In 1974 an all party committee of the Legislature completed 
a comprehensive review of assessments in British Columbia 
and concluded: 

"...that legislation be introduced at the 
current session to create a pr o v inc e -wi d e 
Assessment Authority. This Authority must be 
independent of taxing function (either municipal 
or provincial) and its control must be such as 
will result unmistakably in complete 
independence . " 

This recommendation was acted upon expeditiously and 
the Assessment Authority of British Columbia Act, which 
established the British Columbia Assessment Authority, 
was proclaimed on July 2, 1974. 

Section 8 of the Assessment Authority (R.S.B.C. 1979, 

chap. 22) Act describes the purpose of the Authority 
very succinctly as follows: 

"The purpose of the authority 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 . 

Fixed assets are stated at cost. Depreciation is 
provided on the straight line basis using the following 
annual rates: 


Building 

5% 

Furniture and equipment 

20% 

Mo tor vehicles 

20% 


PROVINCE OF BRITISH COLUMBIA 


G 6 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 


FOR THE 

3. FIXED ASSETS 

YEAR ENDED DECEMBER 31, 1982 

1982 

1981 



Acc umul a ted 




Cost 

depreciation 

Net 

Net 

Land 

$178,000 

_ 

$178 , 000 

$178,000 

Bui Id ing 

223 , 249 

$ 80,542 

142 , 707 

153,869 

Furniture and equipment 

1,830,494 

1 , 509,264 

321,230 

250, 103 

Motor vehicles 

739,576 

490,402 

249,174 

320,265 


$2,971,319 

$2,080,208 

$891,111 

$902,237 


4. EMPLOYEES' PAST BENEFITS 


Relevant to the formation of the British Columbia Assessment Authority, 
the Authority has negotiated an agreement with those designated 
employees whose previous working agreements contained clauses which 
called for payout of certain benefits upon the death, retirement 
or termination of the employee. Based on current salary rates, the 
employees' past benefit entitlements are estimated to be $848,954 at 
December 31, 1982 (1981: $704,567 of which only $290,367 appropriated 

from Surplus). Past benefit entitlements are charged as expenditures 
in the year they are paid. 

5. CHANGES IN ACCOUNTING POLICIES AND PRIOR PERIOD ADJUSTMENTS 


a) Accrued Vacation: 

Accrued vacation pay for employees, formerly not recognized until paid, 
is now recognized as a liability bn the date when it is earned. 

Accrued vacation pay amounted to $776,667 (1981: $527,469) and is 

included under "Accounts payable and accrued liabilities" on the 
Balance Sheet. This results in a decrease of "Surplus" on the Balance 
Sheet of $249,198 (1981: $21,896) and an equivalent increase on the 

"Excess of Expenditure over Revenue" on the Statement of Revenue, 
Expenditure and Surplus. The 1981 comparative figures have been 
restated to conform with the statement presentation adopted for the 
year ended December 31, 1982. 


PUBLIC ACCOUNTS 1982/83 


G 7 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


5. CHANGES IN ACCOUNTING POLICIES AND PRIOR PERIOD ADJUSTMENTS 
b) Fixed Assets: 

Fixed assets, previously charged to operations at the time 
of acquisition and concurrently recorded as assets with a 
corresponding credit to surplus, are now capitalized under 
"Fixed Assets" on the Balance Sheet. The valuation of 

"Fixed Assets" on the Balance Sheet is reduced by the 
amount of the accumulated depreciation, $2,080,208 (1981: 

$2,023,051), with "Surplus" reduced by an equivalent 
amount . 

Depreciation, previously not recorded, is now being 
recognized as an expenditure on the Statement of Revenue 
Expenditure and Surplus. This change results in a net increase 
of "Excess of Expenditure over Revenue" in the statement by 
$11,128 (1981: $146,201 net decrease), compared with the previous 

basis of recording fixed asset costs. The 1981 comparative 
figures have been restated to conform with the statement 
presentation adopted for the year ended December 31, 1982 

Fixed assets amounting to $202,742 (1981: $174,100) were 
disposed of during the year. The cost of these assets 
and the related accumulated depreciation have been 
removed from the accounts and the resulting gain on 
disposal included in income. 

6. PROVINCE OF BRITISH COLUMBIA GRANT 

The Authority, under Section 15 of the Assessment 
Authority Act, is entitled to receive from the Province 
of British Columbia an operating grant determined by 
multiplying the Authority's operating costs less surplus 
carried forward for its immediately preceding fiscal 
year, by a percentage fixed by order of the Lieutenant- 
Governor in Council. 


PROVINCE OF BRITISH COLUMBIA 


G 8 


BRITISH COLUMBIA ASSESSMENT AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


7. TAX LEVIES 

The Authority 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. 
A copy of this by-law is forwarded to the Tax Collector of 
every municipality in the Province and to the Surveyor of 
Taxes so 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 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 a rate 
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 above formula, the mill rates levied on 
taxable properties in the Province of British Columbia were 
1.199 for 1982 and 1.295 for 1981. 

8. 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 total borrowings by the British Columbia Assessment 
Authority were $18,874,000 in 1982 and $14,854,000 in 1981 

9. COMMITMENTS 

The Authority is committed to make the following rental 
payments on buildings, equipment and motor vehicles leased 
for periods of more than one year: 


1983 

1984 

1985 

1986 

1987 

1988 


1990 240,909 

$4,085,511 


$1,366,719 
1 ,205 , 848 


721,590 

330,839 

219,606 


PUBLIC ACCOUNTS 1982/83 


G 9 


BRITISH COLUMBIA BUILDINGS CORPORATSON 


BRITISH COLUMBIA BUILDINGS CORPORA I ION 
BALANCE SHEET 



March 

1983 

31 

1982 

ASSE1S 

$000 *s 

Real estate Investments 

Income-producing properties (Note 2) 
Income-producing properties under construction 
(Note 3) 

Land held for and under development (Note 4) 

455,342 

56,801 

15,472 

411,063 

37,602 

14,103 


527,615 

462,768 

Investment In British Columbia Place Ltd. (Note 5) 

205,000 

- 

Properties held for disposition (Note 6) 

2,297 

36,102 

Corporate properties and equipment (Note 7) 

10,227 

7,577 

Unamortized debt discount and Issue expenses 

43,767 

17,478 

Other assets (Note 8) 

23,304 

14,169 


812,210 

538,094 

LIABILITIES AND EQUITY 



Long-term debt (Note 9) 

476,794 

222,410 

Notes payable to the Province of British Columbia 
(Note 10) 

166,788 

179,639 

Other liabilities (Note 11) 

71,273 

42,902 

Contributions by the Province of British Columbia 
(Note 12) 

63,100 

75,467 

Retained earnings 

34,255 

17,676 

Commitments (Note 13) 

812,210 

538,094 

On Behalf of the Board: 

Robert E. Parkinson, Director 

HSennls FL/mres, 

01 rector 


The accompanying notes are an Integral part of these statements. 


AUDITORS* REPORT 

To the Lieutenant Governor-In-Counci 1 
Province of British Columbia 

Me have examined the balance sheet of British Columbia Buildings Corporation 
as at March 31, 1983 and the statements of income, retained earnings and 
changes In financial position for the year then ended. Our examination was 
made In accordance with generally accepted auditing standards, and 
accordingly Included such tests and other procedures as we considered 
necessary In the circumstances. 

In our opinion, these financial statements present fairly the financial 
position of British Columbia Buildings Corporation as at March 31, 1983 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 applied on a basis consistent with that of the preceding year. 

Vancouver, British Columbia, Canada CHARTERED ACCOUNTANTS 

May 13. 1983 


G 10 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA BUILDINGS CORPORATION 
STATEMENT OF INCOME 



Year ended March 31 


1983 

1982 


$000' 

s 

REVENUE 

Rentals 

194,908 

163,925 

Other Income 

11,800 

15,189 


206,708 

179,114 

EXPENSES 

Property management 

54,161 

53,078 

Leases 

41,398 

34,215 

Depreciation and amortization 

22,497 

20,246 

Utilities 

16,651 

17,270 

Property taxes and grants 

8,430 

7,938 

General and administrative 

9,335 

9,106 


152,472 

141,853 

Net Income before Interest 

54,236 

37,261 

Interest (Note 14) 

37,657 

20,540 

NET INCOME 

16,579 

16,721 


STATEMENT OF RETAINED EARNINGS 


Year ended March 31 


1983 1982 

$000 's 

Balance, beginning of year 17,676 8,960 

Net Income 16,579 16,721 

34,255 25,681 

Less dividend - 8,005 

Balance, end of year 34,255 17,676 


The accompanying notes are an Integral part of these statements. 


PUBLIC ACCOUNTS 1982/83 


BRITISH COLUMBIA BUILDINGS CORPORATION 
STATEMENT OF CHANGES IN FINANCIAL POSITION 


Year ended March 31 
1983 1982 

$000' s 

FINANCIAL RESOURCES PROVIDED BY: 


Operations 

Net Income 

16,579 

16,721 

Charges not requiring current cash outlay 
Depreciation and amortization 

26,769 

20,337 

Cash flow from operations 

43,348 

37,058 

Long-term debt 

229,062 

59,631 

Properties returned to the Province 

33,805 

6,038 

Notes payable to the Province 

13,000 

50,000 

Increase (decrease) In other liabilities 

28,371 

(4,727) 


347,586 

148,000 

FINANCIAL RESOURCES USED FOR: 

Investment In British Columbia Place Ltd. 

205,000 

- 

Real estate Investments 

86,209 

94,445 

Reduction of notes payable to the Province 

25,851 

36,708 

Reduction of Contributions by the Province 

12,367 

2,254 

Sinking funds 

5,239 

4,419 

Corporate properties and equipment, net 

3,785 

3,637 

Increase (decrease) In other assets, net 

9,135 

(1,468) 

Dividend 

- 

8,005 


347,586 

148,000 


The accompanying notes are an Integral part of these statements 


G 12 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


1. Accounting Policies 

(a) Capitalization of Costs 

Real estate Investments and corporate properties and equipment are 
recorded at cost less accumulated depreciation or amortization. In addition to 
land and direct development and construction costs, amounts capitalized as real 
estate Investments Include Interest, property taxes, carrying and other related 
costs and the applicable portion of general and administrative expenses. 

(b) Recognition of Revenue 

The Corporation recognizes property income on a project basis at the 
earlier of 701 of occupancy or substantial completion. Prior to this 
date, any revenue earned on a property Is deducted from the cost of 
construction. 

(c) General Borrowings and Related Interest Charges 

The Interest on general borrowings attributable to Income-producing 
properties under construction and lend held for and under development 
Is added to the cost of these assets, and the Interest on general 
borrowings attributable to all other assets Is expensed In the period to 
which It relates. 

( d ) Depreciation and Amortization 

Real estate Investments and corporate properties and equipment are 
depreciated or amortized on an Individual basis by the straight-line method over 
their estimated useful lives or lease terms. The Corporation does not anticipate 
any salvage or residual values In setting Its depreciation rates. Depreciation 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 ire between three and ten years. 

(e) Income Taxes 

The Corporation Is exempt from Federal and Provincial Income taxes. 

(f) Sinking Funds 

Payments made to sinking funds with respect to retirement provisions of 
sinking fund bonds and debentures are netted against long-term 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 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 notes. 

(h) Foreign Exchange 

The liability for long-term debt payable In United States currency Is 
translated to Canadian currency at the rates of exchange prevailing at 
the date the debt was Incurred. 


Income-Producing Properties 

1983 

1982 


J000‘s 

Net book value: 



Cost 

545,329 

481,605 

Accumulated depreciation 

(89,987) 

(70,542) 


455,342 

411,063 

Activity: 



Net book value, beginning of year 

Cost of properties acquired, net 

411,063 

350,070 

23,543 

37,000 

Cost of properties transferred from Income- 



producing properties under construction 

42,098 

43,427 

Depreciation expense 

(21,362) 

(19,434) 

Net book value, end of year 

455,342 

411,063 


PUBLIC ACCOUNTS 1982/83 


G 13 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


3. Income-Producing Properties Under Construction 


1983 1982 

$000' S 


Balance, beginning of year 
Direct development and construction costs 
Capitalization of Interest 

Capitalization of general and acini nl strati ve expenses 
Cost of properties completed and transferred to 
Income-producing properties 


37,602 27,536 
54,048 49,040 
3,111 1,672 
4,138 2,781 

( 42,098 ) ( 43,427 ) 


Balance, end of year 


56,801 37,602 


4. Land Held For and Under Development 


Balance, beginning of year 
Capitalization of Interest and property tax 
Acquisitions (disposals), net 


14,103 10,570 

1,551 1,406 

(182) 2,127 


Balance, end of year 


15,472 14,103 


5. Investment In British Columbia Place Ltd. 

During the year ended March 31, 1983, the Corporation acquired the only outstanding 
share of British Columbia Place Ltd. (B.C. Place) and made an equity Investment of 
$205 million In that company. B.C. Place Is a British Columbia Crown Corporation 
redeveloping a major site bordering on False Creek In Vancouver, and as It Is In the 
development phase, all costs net of incidental revenues have been capitalized or 
deferred. Its summary financial position Is as follows: 

British Columbia Place Ltd. 

Balance Sheet 
March 31, 1983 


Assets $000 ‘s 


Land and development costs 109,635 
Stadium construction 110,574 
Other assets 7,714 


227,923 


Liabilities and Equity 

Accounts payable and accrued liabilities 22,923 

Equity Investment by shareholder, 

British Columbia Buildings Corporation 205,000 

227,923 


Under the British Columbia Place Act the rights of the shareholder of B.C. Place are 
exercisable by the Minister of Finance for the Province and, accordingly, the 
Investment Is accounted for in the Corporation's accounts at cost. Any future 
dividends declared by B.C. Place will accrue to the Corporation and will be Included 
In Income. 


G 14 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


6. Properties Held for Disposition 

During the year certain properties with a net book value of $33,805,000, which 
were Included In the original transfer of properties from the Province to the 
Corporation, were returned to the Province pursuant to the terms and 
conditions of the Colleges and Provincial Institutes Act. 

When the remaining properties are returned, Notes Payable to the Province will 
be reduced by $2,114,000 and Contributions by the Province will be reduced by 
$183,000. 

The Corporation has not recorded depreciation, nor has It charged rents in 
connection with any of these properties since March 31, 1979. 


7. Corporate Properties and Equipment 1983 1982 

$000' s 


Corporate properties and leasehold Improvements 

4,843 

4,804 

Office and data processing equipment 

6,355 

3,241 

Maintenance equipment 

1,897 

1,673 

Vehicles 

1,607 

1,269 


14,702 

10,987 

Accumulated depreciation and amortization 

(4,475) 

(3,410) 


10,227 

7,577 


Other Assets 



Cash 

3,196 

_ 

Temporary Investments 

8,000 

- 

Accounts receivable - Province of British Columbia 

8,782 

8,361 

- Other 

2,764 

4,480 

Prepaid supplies and expenses 

562 

1,328 


23,304 

14,169 


PUBLIC ACCOUNTS 1982/83 


G 15 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


9. Long-Term Debt 


Total outstanding: 


1983 



1982 



Number 

Average 

Effective 


Number 

Average 

Effective 



of 

Interest 

Principal 

of 

Interest 

Principal 


Series 

Rate 

$000 ‘s 

Series 

Rate 

$000 ‘s 

Payable In Canadian currency 
Payable In United States 

25 

13.541 

452,657 

16 

11.981 

232,586 

currency (US $32,000,000) 

2 

13.031 

39,552 

492,209 


* 

232,586 


Sinking funds on deposit with the Minister 
of Finance, Province of British Columbia, 
relating to long-term debt of $224,957,000 

(1982 - $175,386,000) ( 15,415 ) ( 10,176 ) 

476,794 222,410 


Coupon rates on the long-term debt range from 3.251 to 15.691. 

If the United States currency debt had been translated to Canadian currency at the 
exchange rate prevailing at March 31, 1983, the liability would not change 
significantly. 


At the option of the Minister of Finance for Canada, Sinking Fund Debentures with an 
aggregate principal of $146,957,000 maturing between 1997 and 2002 may be called prior 
to maturity under certain conditions on six months written notice. 

The Province of British Columbia has unconditionally guaranteed the principal and 
Interest on all long-term debt Issued by the Corporation. 

Issues during year ended March 31, 1983: 


Series 

Coupon Rate 

Maturity Date 

Principal 

$000' s 

E-l 

15.251 

May 10, 2002 

Cdn 

19,276 

E-2 

14.961 

June 10, 2002 

Cdn 

13,692 

E-3 

15.381 

July 9, 2002 

Cdn 

16,603 

BCD 

15.501 

Sep. 8, 1987 

Cdn 

100,000 

BCE 

3.251 

Oct. 15, 1984 

Cdn 

4,500 

BCF 

6.251 

Nov. 1, 1986 

Cdn 

20,000 

BCG 

6.751 

Nov. 15, 1987 

Cdn 

1,000 

BCH 

4.751 

Dec. 15, 1987 

Cdn 

30,000 

BCI 

6.881 

Dec. 15, 1987 

Cdn 

15,000 

BCJ 

5.001 

Feb. 15, 1986 

US 

12,000 

BCK 

5.501 

May 9, 1986 

US 

20,000 


Series BCE through BCK Inclusive with an aggregate principal of Cdn $110,052,000 were 
Issued at a significant discount to yield $80,736,000 In net proceeds at an average 
effective Interest rate of 14.001 

Aggregate sinking fund and principal payments on all outstanding Issues for each of the 
next five years: 



$000‘ s 

1983/84 

4,463 

1984/85 

8,963 

1985/86 

19,295 

1986/87 

49,183 

1987/88 

161,903 


G 16 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


10. Notes Payable to the Province of British Columbia 1983 1982 

$000‘s 

Promissory note, due August 22, 1983, bearing Interest at 9.601 25,000 12,000 

Interest free promissory notes due March 31, 1992, 
callable on 30 days notice 91,788 117,639 

Interest bearing promissory notes due June 30, 1984, 
redeemable or callable on 30 days notice 50,000 50,000 

166,788 179,639 


The Interest free promissory notes are payable semi-annually In varying amounts 
over their terms. 

The notes due June 30, 1984 bear Interest rates which fluctuate monthly according 
to the Bankers' Acceptance rate. 

Payments on the promissory notes, excluding the 9.601 note, over the next five years: 

$000 ‘s 

1983/84 11,024 

1984/85 61,024 

1985/86 11,024 

1986/87 12,024 

1987/88 11,024 


Other Liabilities 

1983 

1982 


$000 's 


Bankers' acceptances 

26,818 

_ 

Due to bank, unsecured 

- 

1,559 

Accounts payable and accrued liabilities 

27,386 

23,352 

Retentions on contracts 

5,270 

3,982 

Accrued Interest payable - Province of British Columbia 

3,574 

1,350 

- Other 

8,225 

4,654 

Dividend payable 

- 

8,005 


71,273 42,902 


12. Contributions by the Province of British Columbia 

Balance, beginning of year 75,467 77,721 

Properties returned to the Province, net ( 12,367 ) (2,254 ) 

63,100 75,467 


Balance, end of year 


PUBLIC ACCOUNTS 1982/83 


G 17 


BRITISH COLUMBIA BUILDINGS CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 
March 31, 1983 


13. Commitments 


The Corporation estimates that the cost to complete projects under construction 
will be $94,000,000 of which $58,000,000 has been committed. 

The Corporation has entered Into leases with third parties to provide space for 
Its client ministries and Its head office for varying periods up to the year 1998, 
at a total aggregate net rental of approximately $151,000,000. Most leases are 
for between five and ten years and Include renewal options. 

Minimum annual lease payments which will be charged to operations In subsequent 
years, for leases In effect at March 31, 1983: 



$000's 

1983/84 

34,000 

1984/85 

27,000 

1985/86 

20,000 

1986/87 

15,000 

1987/88 

11,000 

Post 1987/88 

44,000 


151,000 


Interest 

1983 

1982 


$000' s 

Interest expense 

52,095 

26,894 

Amortization of debt discount and Issue expenses 

4,272 

91 


56,367 

26,985 

Deduct: 



Interest assistance 

10,000 

- 

Interest capitalized 

4,401 

3,293 

Interest earned 

4,309 

3,152 


18,710 

6,445 

37,657 

20,540 


The Province of British Columbia has agreed to provide assistance of up to $10 million 
per annum towards the Interest expense Incurred by the Corporation In connection with 
Its Investment In B.C. Place, until the earlier of 1992 or such time as the cash flow 
to the Corporation from Its Investment exceeds the related Interest expense. 


15. Related Party Transactions 


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. 

The Corporation received 96% 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 based on the amortization of the capital costs. 

During the year ended March 31, 1983, the Corporation acquired additional properties 
from the Province and Its agents. These properties had an aggregate value of 
$21,173,000 which was determined by reference to market values. 


G 18 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA CELLULOSE COMPANY 



chartered accountants 


a member firm of 

Coopers & Lybrand (international) 


AUDITORS ' REPORT 


The Lieutenant-Governor in Council 
Province of British Columbia 


We have examined the balance sheet of British Columbia Cellulose Company as 
at December 31, 1982 and the statements of earnings and retained earnings and 
changes in financial position for the year then ended. Our examination was 
made in accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as we considered 
necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial 
position of the company as at December 31, 1982 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 applied on a 
basis consistent with that of the preceding year. 



Vancouver, B.C. 
February 24, 1983 


PUBLIC ACCOUNTS 1982/83 


G 19 


BRITISH COLUMBIA CELLULOSE COMPANY 
BALANCE SHEET AS AT DECEMBER 31, 1982 


ASSETS 


1982 

$ 

CURRENT ASSETS 


Cash 99,870 

Short-term deposits 1,774,961 

Accrued interest and accounts receivable 26,361 

Prepaid rentals and timber sale deposits 50 ,970 

1 ,952,162 

LOANS TO OCEAN FALLS CORPORATION (note 2) Nil 

EQUIPMENT (note 3) 1,955,657 

OFFICE EQUIPMENT - at cost less accumulated 

depreciation of $8,114 (1981 - $7,588) 2 ,108 


3,909,927 


LIABILITIES 


CURRENT LIABILITIES 

Accounts payable and accrued liabilities 30,852 

SHAREHOLDER'S EQUITY 
CAPITAL STOCK (note 4) 2 

RETAINED EARNINGS 3,879,073 

3,879,075 

3,909,927 



1981 

$ 


107,754 

6,832,060 

94,928 

50,970 

7,085,712 

Nil 

2,001 ,455 

2,635 

9,089,802 


18, 175 

2 

9,071 ,625 
9,071 ,627 
9,089,802 


I Coopers 
I &Lybrand 


G 20 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA CELLULOSE COMPANY 
STATEMENT OF EARNINGS AND RETAINED EARNINGS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


INCOME 

Interest income 
Standby fees 

Gain on sale of equipment (note 3) 


EXPENSE 

Administrative 

Research and development (note 1) 
Miscellaneous 


EARNINGS BEFORE EXTRAORDINARY ITEM 

Provision for loss on Ocean Falls 
Corporation loan (note 2) 

NET EARNINGS (LOSS) FOR THE YEAR (note 4) 

RETAINED EARNINGS - BEGINNING OF YEAR 


DIVIDENDS PAID 

RETAINED EARNINGS - END OF YEAR 


1982 1981 

$ $ 


955,110 
37,684 
2 ,273 

995 ,067 

119,876 

363,927 

53,816 

537 ,619 

457,448 

650,000 
(192,552) 
9,071 ,625 

8.879.073 
5,000,000 

3.879.073 


1,391, 

,732 

47, 

,127 

1 ,438 , 

,859 

111 

,489 

829, 

,102 

34 

,674 

975 

,265 

463, 

,594 

500, 

,000 

(36, 

,406 

9,108, 

,031 

9,071, 

,625 


9,071,625 


Coopers 

&Lybrand 


PUBLIC ACCOUNTS 1982/83 


G 21 


BRITISH COLUMBIA CELLULOSE COMPANY 
STATEMENT OF CHANGES IN FINANCIAL POSITION 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1982 1981 

$ $ 

SOURCE OF WORKING CAPITAL 


Earnings before extraordinary item 

Add (deduct): Depreciation 

Gain on sale of equipment 


457,448 

527 

(2,273) 

463,594 

658 

From current operations 


455,702 

464,252 

Proceeds on sale of equipment (note 3) 


48,071 




503,773 

464,252 

USE OF WORKING CAPITAL 




Dividends 

Loan to Ocean Falls Corporation 

Purchase of equipment 

5 

,000,000 

650,000 

500,000 
141 ,820 


5 

,650 ,000 

641 ,820 

DECREASE IN WORKING CAPITAL 

5 

, 146,227 

177,568 

WORKING CAPITAL - BEGINNING OF YEAR 

7 

,067 ,537 

7,245 ,105 

WORKING CAPITAL - END OF YEAR 

i 

,921 ,310 

7,067,537 

REPRESENTED BY: 




Current assets 

Current liabilities 

1 , 

952, 162 
30,852 

7,085,712 
18, 175 

WORKING CAPITAL - END OF YEAR 

V 

921,310 

7,067,537 


Coopers 

&LyDrand 


G 22 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA CELLULOSE COMPANY 
NOTES TO FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1 . OPERATIONS 

The company is investigating the feasibility of a composition wood board 
operation, using poorer quality timber and residual waste from cedar 
manufacturing. During 1982, professional fees involving development work 
on, oriented strand board amounted to; $363,927. Included were minor 
expenditures on the experimental timber sale which will supply the 
required back-up wood position for the proposed manufacturing plant. 

It is the company's intention to establish the feasibility of this new 
wood product so as to encourage private enterprise to develop a 
productive plant based on a researched market for poor quality cedar 
timber on the B.C. Coast. 


2. LOANS TO OCEAN FALLS CORPORATION 


1982 1981 

$ $ 

Amounts loaned 3,150,000 2,500,000 

Less: Provision for doubtful collection ( 3,150,000 ) ( 2,500,000 ) 

Nil Nil 


The loans to Ocean Falls Corporation are with interest at prime bank 
lending rate plus 1/2%. Interest has been paid to December 31, 1979. 
Security is by way of fixed and floating charges on specified properties 
subject only to a prior debenture to the Province of British Columbia. 

In view of the closure of their newsprint operation, the ability of 
Ocean Falls Corporation to repay this loan is considered doubtful. 
Accordingly, full provision has been made for the potential loss and no 
interest has been accrued since January 1, 1980. 

3. EQUIPMENT 

The company purchased certain manufacturing equipment in anticipation of 
establishing an experimental logging operation with log sorting for 
market plus certain manufacturing at Ocean Falls, B.C. This project had 
to be placed in abeyance in 1981, and the equipment is currently being 
stored. Duping the year, the company sold approximately $48,000 of the 
equipment. 


Coopers 

&LyDrand 


PUBLIC ACCOUNTS 1982/83 


G 23 


BRITISH COLUMBIA CELLULOSE COMPANY 

NOTES TO FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


CAPITAL STOCK 

1982 1981 

$ $ 

Authorized - 

1,000,000 common shares of no par value 

Issued and fully paid 
2 shares 



These shares are wholly owned by the Province of British Columbia. 


INCOME TAXES 

As a Provincial Crown Corporation, the company is exempt from federal 
and provincial income taxes. 

RELATED PARTY TRANSACTIONS 

Reference should be made to notes 2 and 4 for related party 
transactions. Management of the company's short-term deposits is handled 
by the Ministry of Finance. 


Coopers 

&Lybrand 


G 24 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA DEVELOPMENT CORPORATION 


CONSOLIDATED BALANCE SHEET as at March 31, 1983 


Assets 

Industrial development programs 

Land and development projects 
Loans to industrial enterprises 
Property leases receivable 
Rental properties 

Cash in banks 
Accounts receivable 
Other assets 

Small business development fund 
Trust assets 


Liabilities 

Accounts payable and accrued liabilities 
Term debt 

Small business development fund 
Trust liabilities 


Shareholder’s equity 

Share capital 
Contributed surplus 
Retained earnings 


Contingent liabilities 


Notes 

1983 

1982 

1 

$108,296,972 

$ 94,063,338 


78,526,573 

65,458,663 


6,079,031 

5,549,218 

2 

7,169,722 

6,758,949 


200,072,298 

171,830,168 


719,305 

3,591,872 


4,863,714 

2,413,547 

3 

1,718.281 

2,147,513 

4 

8,202,676 

- 

5 

32,282,685 

30,391,624 


$247,858,959 

$210,374,724 



$ 9,337,904 

$ 10,422,889 

6 

143,404,080 

110,804,004 


8,202,676 

- 


32,282,685 

30,391,624 


193,227,345 

151,618,517 


7 

42,500,000 

42,500,000 


11,778,315 

9,241,052 


353,299 

7,015,155 


54,631,614 

58,756,207 


$247,858,959 

$210,374,724 


8 


Approved by the Directors 

Director 

Director /rf. 


8 


PUBLIC ACCOUNTS 1982/83 


G 25 


CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS 
for the year ended March 31, 1983 


Revenue 

Industrial development programs 
Land and development project sales 
Loans and guarantees, interest and fees 
Lease financing 
Property rentals 
Management fees 
Interest on cash deposits 
Other 

Expense 

Cost of sales, land and development projects 

Interest on term debt 

Property taxes 

Salaries and benefits 

Advertising and business development 

General administration 

Professional services 

Depreciation and amortization 

Directors’ fees and expenses 

less: expenses applied to land and development projects 


1983 


$ 3,809,568 

12,456,073 
1,015,707 
171,755 
1,683,922 
605,822 
115,715 
19,858,562 

2,316,726 

17,432,416 

2,416,100 

2,475,735 

1,010,277 

1,008,271 

510,281 

448,662 

91,813 

27,710,281 

9,143307 

18,566,774 


Earnings before the following 


1,2 91,788 


Development project costs written off 5,818,005 

Provision for losses on loans and guarantees 2,135,6 39 

7,95 3,64 4 

Net earnings (loss) for the year (6,661,856) 

Retained earnings, beginning of year 7,01 5,155 

Retained earnings, end of year $ 353, 29 9 


1982 


$ 18,157,568 
13,931,744 
1,455,589 
334,753 
497,940 
853,200 
67,952 
35,298,746 

14,980,352 
13,119,917 
513,079 
2,143,618 
1 ,255.908 
890,744 
321,127 
410,890 

82 ,183 

33,717,818 

6,124,222 

27,593,596 

7 ,705,150 

1,919,583 

3,810,763 

5,730,346 

1,974,804 

5, 040,351 

$ 7,015,155 


9 


G 26 


PROVINCE OF BRITISH COLUMBIA 


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS March 31, 1983 


1. Land and development projects 


Land held for future development 
Land and projects under development 
Developed land held for sale 


Cost of 
Acquisition 
$12,236,808 
17,186,493 
23.563,496 
$52,986,797 


1983 
Cost of 
Development 
$ 9,930,808 
20,393,314 
24,986.053 
$55,310,175 


Total 

$ 22.167.616 
37,579,807 
48,549,549 
$108.296,972 


1982 


Total 

$22,002,213 

38,843,631 

33,217,494 

$94,063,338 


A total of $4,615,936 of interest and property taxes related to certain land development projects was expensed 
during the year rather than capitalized because the carrying value of those projects otherwise would have exceeded 
their estimated net realizable value. This amount is in addition to development project costs of $5,818,005 written 
off during the year, most of which arose from the diminution in land values. 


2. Rental properties 

Land and buildings and other property which are rented to industrial enterprises are carried at cost less accumu- 
lated depreciation of $597,742 (1982— S318.712). 



1983 

1982 

Land and buildings 

$ 6,429,097 

$ 6,758,949 

Other property 

740,625 

- 


$ 7,169,722 

$ 6,758,949 

3. Other assets 

1983 

1982 

Premises and equipment, at cost 

$ 1.254280 

$ 1,181,373 

less: accumulated depreciation and amortization 

498,611 

357,558 


755,669 

823,815 

Deferred charges 

962,612 

1,323,698 


$ 1.718,281 

$ 2,147,513 


4. Small business development fund 

Under an agreement with the Province of British Columbia, the Corporation has created the Small Business Devel- 
opment Fund to provide term loans to industrial enterprises. The fund consists of: 


Assets 

Cash and bank term deposits $ 41 1,033 

Loans outstanding 7,791.643 

Total assets $ 8,202,676 

Liabilities 

Accrued interest payable $ 202.676 

Notes guaranteed by the Province of British Columbia 8.000,000 

Total liabilities $ 8,202,676 


During April. 1983 the Corporation received and deposited to the fund a further $163,420,711. 


10 


PUBLIC ACCOUNTS 1982/83 


G 27 


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS March 31, 1983, continued 


5. Trust assets 

Under an agreement with the Province of British Columbia, the Corporation acts as agent and administrator of 
the Low Interest Loan Assistance Program (LILA). Assets administered under this program consist of: 


Cash and bank term deposits 
Loans outstanding 
Total trust assets 

Financing of the fund is provided by the Province of British Columbia. 


1983 

$ 3.630,713 
28,651,972 
$32,282,685 


1982 

$ 2.699,684 
27,691,940 
$50.59 1,62 4 


6. Term debt 

Notes guaranteed by the Province of British Columbia: 

Repayable in five equal annual instalments commencing March 5, 1988, 

with interest at 8.95% payable semi-annually 

less: unamortized discount based on effective interest rate of 15.75% 

Repayable December 1, 1986, with interest at 16 7 /s% payable 
semi-annually (U.S. $12,400,000) 

Repayable in 1983 with interest at 11% to 14% 

Notes payable to the Province of British Columbia, with interest currently 
at 9.7%, adjusted and payable semi-annually 

Loans payable to the Province of British Columbia, pursuant to the 
Subsidiary Agreement on Industrial Development: 

Repayable progressively as the Corporation sells or leases its Duke Point 
properties, with interest at 7 V 2% 

Repayable October 16, 1990, with interest at 6Vs%, adjusted annually 

Mortgages, secured by certain lands and buildings, due August 31, 1984, 
repayable progressively prior to maturity as the Corporation sells the 
mortgaged property', with interest at 12% and 14% payable quarterly 

Other 


7. Share capital 

Authorized 

$200,000,000 divided into 2,000,000 shares with a par value of $100 each 
Issued 

425,000 shares 


1983 


$ 64,300,000 

1 7,81 9,538 

46,480,462 

15/204,880 

17.000. 000 

44.000. 000 


13,000,000 

2,481,000 


4,300,000 

937,758 

$143,404,080 


1982 


$ 64,300.000 
19210,7 34 
45,089,266 

15221,000 


30,000,000 


13,000,000 

2,481,000 


4,300,000 

712,738 

$110,804,004 


$42,500,000 


8. Contingent liabilities 

As part of its industrial development program, the Corporation has guaranteed indebtedness and performance of 
certain industrial enterprises amounting to $6,834,237 (1982-$5,077,C90). 


9. Commitments 

Under an agreement with Canadian Pacific Air Lines. Limited the Corporation is committed to spend up to 
$45,000,000 for the construction of a rental property to be completed by September 1, 1986. 


10. Related party transactions 

In the ordinary course of business, the Corporation enters into transactions with related parties including the 
Province of British Columbia, its agencies and other Crown corporations. 


11 


G 28 


PROVINCE OF BRITISH COLUMBIA 


CONSOLIDATED STATEMENT OF CHANGES 

IN INDUSTRIAL DEVELOPMENT PROGRAMS for the year ended March 31, 1983 


Changes in industrial development programs 

1983 

1982 

Additions to land and development projects 

$29,417,271 

$47,028,902 

less: cost recoveries and projects written off 

15,183,637 

16.683,175 

transfers to rental properties 

- 

2,041,100 

Net increase 

14,233,634 

28,304,627 

Loan disbursements and accrued interest 

33,504,701 

20.982,067 

less: loan repayments and provision for losses 

20,436,791 

19,575,008 

Net increase 

13,067,910 

1,407,059 

Additions to property leases receivable 

733,200 

- 

less: lease payments 

203,387 

1,127,877 

Net increase (decrease) 

529,813 

(1.127.877) 

Additions to rental properties, net of depreciation 

410,773 

1,722,388 

Net additions to programs 

$28,242,130 

$30,306,197 

Financed by 

Increase in term debt 

$32,600,076 

$31,200,866 

Decrease in cash 

2,872,567 

1,665,224 

Net change in other assets and liabilities 

(3,105,920) 

(7,117,869) 

Contributed surplus 

2,537,263 

2.583,172 

Net earnings (loss) for the year 

(6,661,856) 

$28,242330 

1.974,804 

$30306,197 


Auditors’ Report 

To the Honourable Donald M. Phillips, 

Minister of Industry and Small Business Development, 

Province of British Columbia. 

We have examined the consolidated balance sheet of British Columbia Development Corporation as at March 31, 
1983 and the consolidated statements of earnings and retained earnings and changes in industrial development 
programs for the year then ended. Our examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures as we considered necessary in the circumstances. 
In our opinion, these consolidated financial statements present fairly the financial position of the Corporation as at 
March 31, 1983 and the results of its operations and the changes in its industrial development programs for the year 
then ended in accordance with generally accepted accounting principles applied on a basis consistent with that of 
the preceding year. 


Vancouver. Canada. 

May 26, 1983. Chartered Accountants 



12 


PUBLIC ACCOUNTS 1982/83 


G 29 


BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING 

AUTHORITY 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 

British Columbia Educational Institutions Capital Financing 
Authority, and 

To the Minister of Finance 
Province of British Columbia: 


I have examined the statement of assets and liabilities of 
the British Columbia Educational Institutions Capital 
Financing Authority as at 31 March 1983 and the statement of 
sources and uses of funds for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and 
other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Authority as at 31 March 1983 and 
the results of its operations for the year then ended in 
accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding 
year . 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
14 June 1983 


2 



G 30 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 
STATEMENT OF ASSETS AND LIABILITIES 
AS AT 31 MARCH 1983 


ASSETS 



1983 

1982 

Current : 

Cash and short-term investments 
Accrued interest receivable 
Instalments to sinking funds 
receivable within one year 

$ 

12,593,009 

7,397,371 

$ 1,110,067 

9,506,448 

5,517,857 


19,990,380 

16,134,372 

Long-term loans receivable 
(note 1 and schedule 1) 

Less accumulated sinking fund 
instalments and investment income 

303,750,129 

13,313,981 

222,958,643 

6,368,770 


290,436,148 

216,589,873 


$310,426,528 

$232,724,245 

LIABILITIES 


Current: 

Due to the Province of 

British Columbia 

Accrued interest payable 
Instalments to sinking funds 
payable within one year 

$ 

12,593,009 

7,397,371 

$ 1,110,067 

9,506,448 

5,517,857 


19,990,380 

16,134,372 

Long-term debt (note 4) 

303,750,129 

222,958,643 

Less sinking funds on deposit with 
the Minister of Finance of the 
Province of British Columbia 
(note 5) 

13,313,981 

6,368,770 


290,436,148 

216,589,873 


$310,426,528 

$232,724,245 


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


Approved by the Authority: 



PUBLIC ACCOUNTS 1982/83 


G 31 


EXHIBIT B 


BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 


STATEMENT OF SOURCES AND 

USES OF FUNDS 


FOR THE YEAR ENDED 31 

MARCH 1983 



1 983 

1982 

Sources of Funds 



Proceeds of Authority debentures 
issued 

Interest on long-term loans 
receivable 

Unrealized foreign exchange gain 
on long-term loans 

Short-term investment income 

Other interest income 

$ 82,653,000 

38,195,888 

18,000 

105,560 

$109,969,500 

24,079,730 

260,000 

766,660 

2,232 


120,972,448 

1 35,078 , 1 22 

Sinking Funds: 



Instalments received 

Income on investments 

5,591,237 

1 ,375,447 

2,929,820 

740,760 

Less Funds management fees 
(note 5) 

6,966,684 

21,474 

3,670,580 


6,945,210 

3,670,580 


$127,917,658 

$138,748,702 

Uses of Funds 



Loans issued 

Interest on long-term debt 

Unrealized foreign exchange loss 
on long-term debt 

Transfer of excess assets to 

Province of British Columbia 
(note 3) 

$ 82,653,000 
38,195,888 

18,000 

105,560 

$109,969,500 

24,079,730 

260,000 

768,892 


1 20,972,448 

135,078,122 

Sinking Funds: 



Instalments paid in 

Income on investments allocated 

5,591 ,237 

1 ,375,447 

2,929,820 

740,760 

Less Funds management fees 
(note 5) 

6,966,684 

21,474 

3,670,580 


6,945,210 

3,670,580 


$127,917,658 

$138,748,702 


G 32 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


1 . The Authority 

The Authority was established by the Educational Institution 
Capital Finance Act, R.S. 1979, Chapter 102. Section 3 of the 
Act states "The purpose of the authority is to assist designated 
educational institutions to finance their capital expenditures 
by purchasing debentures issued by them with money raised by the 
issue and sale of debentures of the authority." 

Loans have been made by the Authority prior to the receipt of 
debentures as security. At the date of approval of these 
financial statements debentures had not been received as 
security for loans totalling $7,151,000 (1982: $225,476,500). 

As an interim measure the Institutions have given Letters of 
Undertaking to issue debentures for these remaining amounts. 

2. Significant accounting policies 

a) Sinking funds are maintained by the Trustee, the Minister 
of Finance of the Province of British Columbia, to provide 
for the retirement of Authority debentures at maturity. 
Sinking fund instalments, income earned on sinking fund 
investments, and the corresponding investment of the income 
by the sinking fund trustee have been reflected in the 
statement of sources and uses of funds. 

(b) Loans receivable, debt payable, and related accrued 

interest receivable and payable denominated in United 
States dollars have been converted to Canadian dollars at 
the rate prevailing at 31 March 1983. 


3. Transfer of excess assets to the Province of British Columbia 

During the year, some funds borrowed by the Authority were 
temporarily invested prior to re-lending them to educational 
institutions. These investments generated earnings of $105,560 
(1982: $768,892), which were considered to be in excess of the 
Authority's requirements. The Minister of Finance, pursuant to 
Section 5(2) of the Educational Institution Capital Finance Act, 
authorized the payment of the excess into the Consolidated 
Revenue Fund of the Province of British Columbia. 


PUBLIC ACCOUNTS 1982/83 


G 33 


BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


4. Long-term debt 


Payable in Canadian Dollars to: 


Canada Pension Plan Investment Fund 
9.41% to 17.51% debentures 

1983 

1982 

due 1998 through 2003 

Province of British Columbia Public 
Service Superannuation Fund 

$303,953,000 

$221 ,300,000 

10.875%, due 1989 

1 ,025,000 

1 ,025,000 

Total payable in Canadian Dollars 

Payable in United States Dollars to: 
General public 

304,978,000 

222,325,000 

16.875%, due 1986 

5,000,000 

5,000,000 

U.S. Exchange 

1 , 1 69,500 

1,151 ,500 

Less instalments to Sinking funds 

311,147,500 

228,476,500 

payable within one year 

7,397,371 

5,517,857 

Exhibit A 

$303,750,129 

$222,958,643 


5. 


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

The Province of British Columbia has unconditionally guaranteed the 
payment of principal and interest on the long-term debt of the 
Authority. 


Sinking fund assets at 31 March: 

Cash 

Investments at cost 

(Market value $12,776,963 
1 9 82 : $ 5 , 1 62,577) 

Accrued interest 


Less Funds management fees payable 
Exhibit A 


1983 


1982 


$ 116,168 $ 745,751 

12,917,463 5,500,077 


301 ,824 

13,335,455 

21,474 

$13,313,981 


1 22,942 
6,368,770 


$6,368,770 


Sinking fund instalments of $7,397,371 are due in each of the 
nextfive years. 

Funds management fees have been charged to the sinking funds of the 
Authority by the Ministry of Finance for the year ended 31 March 
1983, 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. Comparative figures 

Certain 1982 comparative figures on the statement of assets and 
liabilities have been reclassified to conform with the 1983 
presentation . 


G 34 


PROVINCE OF BRITISH COLUMBIA 


SCHEDULE 1 

BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 
AS AT 31 MARCH 1983 


University of British Columbia: 

9.41% to 17.51%, due 1986 to 2002, 
inclus ive . 

Simon Fraser University: 

9.41% to 17.00%, due 1986 to 2002, 
inclusive. 

University of Victoria: 

9.41% to 17.00%, due 1986 to 2002, 
inclusive . 

Emily Carr College of Art and Design: 
10.49% to 16.875%, due 1986 to 2002, 
inclus ive . 

Fraser Valley College: 

10.68% to 17.00%, due 1986 to 2002, 
inclus ive . 

Pacific Vocational Institute: 

10.68% to 16.10%, due 1999 to 2002, 
inclus ive . 

Douglas College: 

10.875% to 17.51%, due 1989 to 2002, 
inclus ive . 

Camosun College: 

11.50% to 16.875%, due 1986 to 2002, 
inclus ive . 

Vancouver Community College: 

12.14% to 17.51%, due 2000 to 2003, 
inclus ive . 

Justice Institute of British Columbia: 
13.39% to 16.875%, due 1986 to 2002. 


1983 

87,292,800 

35.221 .475 

27.832.475 

6,435,260 

9,028,308 

8,074,000 

34,181,300 

11,116,236 

33,298,000 
1 ,007,553 


1982 

72,739,600 

26.233.575 

26.612.575 

5,763,008 

2,063,767 

6,126,000 

21,327,300 

9,615,080 

17,298,000 

1,005,781 


.../2 


PUBLIC ACCOUNTS 1982/83 


G 35 


SCHEDULE 1 
( continued ) 


BRITISH COLUMBIA EDUCATIONAL INSTITUTIONS CAPITAL FINANCING AUTHORITY 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 
AS AT 31 MARCH 1983 



1983 

1982 

Okanagan College: 



12.55% to 17.51%, due 2000 to 2001. 

Pacific Marine Training Institute: 

$ 10,220,000 

$ 10,220,000 

12.16% to 17.01%, due 2000 to 2003. 

East Kootenay Community College: 

6,800,000 

5,900,000 

12.01% to 17.01%, due 2000 to 2002. 

Northwest Community College: 

9,150,700 

7,850,700 

13.18%, due 2001 . 

Selkirk College: 

259,000 

259,000 

12.16% to 16.53%, due 2001 to 2003 

Capilano College: 

2,224,000 

832,000 

12.01% to 17.00%, due 2001 to 2002 

Cariboo College: 

12,080,000 

7,843,000 

13.66% to 16.875%, due 1986 to 2002. 

New Caledonia College: 

2,928,512 

2,714,194 

13.69% to 14.81%, due 2001. 

Northern Lights College: 

887,000 

887,000 

12.16% to 17.51%, due 2001 to 2003. 

North Island College: 

1 1 ,547,000 

2,603,000 

17.01%, due 2001. 

Malaspina College: 

255,000 

255,000 

15.25% to 16.875%, due 1986 to 2002. 

1 ,308,881 

327,920 

Less instalments to Sinking funds 

311,147,500 

228,476,500 

receivable within one year 

7,397,371 

5,517,857 

Exhibit A 

$303,750,129 

$222,958,643 


Long-term loans receivable include 
U.S. exchange of $1,169,500. 


G 36 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA FERRY CORPORATION 


THORNE 

RIDDTTT.T. 

Chartered Accountants 



AUDITORS' REPORT 


To the Lieutenant-Governor in Council 
Province of British Columbia 

We have examined the balance sheet of British Columbia 
Ferry Corporation as at March 31, 1983 and the statements of income, 
accumulated income reinvested in corporation assets and changes in 
financial position for the year then ended. Our examination was made 
in accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as we considered 
necessary in the circumstances. 

In our opinion, these financial statements present fairly 
the financial position of the Corporation as at March 31, 1983 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 applied on a basis consistent with 
that of the preceding year. 

The 1982 comparative figures are based on financial 
statements reported upon by other auditors. 


Chartered Accountants 




Victoria, Canada 
May 20, 1983 


Offices throughout Canada, International Firm Klynveld Main Goerdeler 


CURRENT ASSETS CURRENT LIABILITIES 

Cash (Note 1) $ 3,699 $ 3,264 Notes payable (Note 7) $ 30,000 

Accounts receivable (Note 2) 609 2,965 Accounts payable and accrued 


PUBLIC ACCOUNTS 1982/83 


G 37 



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G 38 


PROVINCE OF BRITISH COLUMBIA 


STATEMENT OF INCOME 


YEAR ENDED MARCH 31, 1983 


(expressed in thousands) 





1983 

1982 

Operating revenues 




Tolls 

$ 

86,660 

$ 85,463 

Catering 


22,707 

. 23,441 

Other income, net (Note 10) 


1,322 

3,295 



110,689 

112,199 

Less cost of food and goods sold 


8,889 

9,564 



101,800 

102,635 

Operating expenses 




Salaries, wages and benefits 


78,386 

75,045 

Fuel and lubricants 


28,315 

29,338 

Contracted replacements, repairs and 




maintenance 


15,435 

11,705 

Materials, operating supplies and services 


10,853 

11,845 

Marketing, general and administrative 


3,398 

3,646 

Charter fees 


2,626 

2,277 



139,013 

133,856 

Operating loss before subsidy 


37,213 

31,221 

Province of British Columbia subsidy (Note 11) 


43,000 

58,891 

Income from operations 


5,787 

27,670 

Interest expense (Note 12) 


5,073 

893 

INCOME BEFORE DEPRECIATION AND EXTRAORDINARY ITEM 


714 

26,777 

Depreciation 


34,724 

26,087 

Extraordinary item 




Write-off receivable from British Columbia 




Steamship Company (1975) Ltd. 


1,951 

- 



36,675 

26,087 

NET INCOME (LOSS) AFTER DEPRECIATION 




AND EXTRAORDINARY ITEM 

$( 

35.961) 

S 690 


PUBLIC ACCOUNTS 1982/83 


G 


STATEMENT OF ACCUMULATED INCOME 
REINVESTED IN CORPORATION ASSETS 
YEAR ENDED MARCH 31, 1983 


(expressed in thousands) 


1983 1982 


Accumulated Income reinvested in 

corporation assets at beginning of year 

$ 36,543 

$ 

39,179 

Net income (loss) for the year after 
depreciation and extrordinary item 

(35,961) 


690 

Prior years' self-insurance fund provision 

1,153 


- 

Payment to Province of British Columbia 
of excess of sinking fund assets over 
related long-term debt obligations 

( 446) 

( 

: 3,326) 

ACCUMULATED INCOME REINVESTED IN CORPORATION 
ASSETS AT END OF YEAR 

$ 1.289 

$ 

36.543 


G 40 


PROVINCE OF BRITISH COLUMBIA 


STATEMENT OF CHANGES IN FINANCIAL POSITION 
YEAR ENDED MARCH 31, 1983 
(expressed in thousands) 



1983 

1982 

Working capital derived from: 



Operations 



Net income (loss) for the year after 



depreciation and extraordinary item 

$(35,961) 

$ 690 

Charges not affecting working capital - 



Depreciation 

34,724 

26,087 

Amortization of promissory note 



discount and issue costs 

639 

43 

Loss on retirement of fixed assets 

483 

834 

Provision for self-insurance 

- 

500 

Increase in accrued sick leave 



liability 

1,388 

685 


1,273 

28,839 

Proceeds on sale of fixed assets 

200 

1,375 

Decrease in self-insurance fund assets 

1,153 

- 

Decrease in sinking fund assets 

- 

15,635 

Proceeds from promissory note issue 

- 

19,939 


2,626 

65,788 

Working capital applied to: 



Fixed asset additions 

26,804 

74,376 

Increase in accrued sick leave liability 



fund assets 

1,387 

685 

Payments to Province from sinking fund 

446 

5,214 

Retirement of long-term debt 

- 

11,927 

Increase in self-insurance fund assets 

- 

500 

Debt issue costs 

- 

193 


28,637 

92,895 

Decrease in working capital 

26,011 

27,107 

Working capital (deficiency) at beginning 



of year 

(11,495) 

15,612 

Working capital deficiency at end of year 

$ 37.506 

$ 11.495 

Working capital deficiency comprises: 



Current assets 

$ 14,943 

$ 29,021 

Current liabilities 

52,449 

40,516 


$ 37.506 

S 11.495 


PUBLIC ACCOUNTS 1982/83 


G 41 


STATEMENT OF ACCOUNTING POLICIES 
YEAR ENDED MARCH 31, 1983 


In accordance with 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 followed in 
the preparation of these financial statements are: 


Inventories - 

Inventories are valued at the lower of cost and current replacement cost. 


Long-Term Disability - 

Amounts paid to the Superannuation Branch of the Public Service Commission 
under the Long-Term Disability Plan are accounted for by the Corporation on 
the basis of accruing in the financial statements that portion estimated by 
the Corporation to be payable to employees over a two-year period of 
individual disability with the balance of the amounts paid being included in 
prepaid expenses. 


Fixed assets - 

Acquired from the Province of British Columbia effective January 1, 1977: 

(a) Ships 

Ships, which comprise part of the total assets acquired from the 
Province effective January 1, 1977 by Order-In-Council dated December 
16, 1976 and transferred at an assigned value of $1, have been 
revalued by the Corporation and are reflected in the accompanying 
financial statements at their estimated depreciated replacement value 
as at January 1, 1977 on the basis of construction records for labour 
and materials valued at 1977 cost exclusive of any federal ship 
building subsidies which may have been available during the extended 
period of years during which the individual ships were built and 
during which such subsidies fluctuated substantially. The estimated 
depreciated replacement value of the ships at January 1, 1977 is not 
intended to reflect fair market value of the fleet nor can it be 
considered to approximate fair market value because of the 
specialized nature and limited saleability of the ships themselves. 


G 42 


PROVINCE OF BRITISH COLUMBIA 


Accounting Policies 
Page 2 


Fixed Assets - (continued) 

In addition, three ships presently under charter by the Province 
until 1994 are subchartered to the Corporation for the same period 
at an annual cost of $1 each, with the Corporation being 
responsible for all operating, repair, and maintenance costs. 

Under the terms of the subcharter agreement with the Province, the 
Corporation may in 1994 request that the Province exercise its 
option to purchase these ships at its own expense in accordance 
with the terms of its charter agreement. In the event that such 
option is exercised, clear title to the ships will be transferred 
to the Corporation. As a result of these transactions and 
agreements, these ships are reflected as capital assets of the 
Corporation in the accompanying financial statements and are 
similarly stated at their estimated depreciated replacement value 
as at January 1, 1977. 


(b) Berths, buildings and equipment 

Berths, buildings and equipment also comprise part of the total 
assets acquired from the Province effective January 1, 1977 by 
Order-In-Council dated December 16, 1976 and transferred at an 
assigned value of $1. 


These assets are reflected in the accompanying financial statements 
at their estimated depreciated replacement value as at January 1, 
1977 based upon an appraisal made by Universal Appraisal Company 
Limited as at that date. 


Additions and disposals subsequent to January 1, 1977: 

The costs of major replacements, additions, extensions and 
improvements are capitalized in the fixed asset accounts. The costs 
of maintenance, repairs, minor renewals or replacements are charged 
against income. On retirement or disposal of fixed assets, the 
costs thereof and the related accumulated depreciation are 
eliminated from the accounts and any gains or losses are reflected 
in the statement of operations. 


PUBLIC ACCOUNTS 1982/83 


G 43 


Accounting Policies 
Page 3 


Depreciation - 

Fixed assets are depreciated on the straight line method based upon the 
following useful lives: 


25 years 


Ships 


5-10 years 
4-25 years 


Berths 

Buildings and equipment 


Effective April 1, 1983 the estimated useful lives of ships has been 
extended from 25 years each to between 25 and 50 years. 

Self-insurance fund - 

To March 31, 1982 the Corporation provided for uninsured losses up to 
the deductible amount of purchased insurance on ships. Effective April 
1, 1982 the provision was discontinued. 

Accrued sick leave liability - 

Funds reserved to meet the obligations under the plan, as described in 
Note 9, are invested in short-term commercial security. Interest earned 
on these investments accrues to and payments to employees under the plan 
are charged against the accrued sick leave liability account. 

Amortization of Promissory note discount and issue costs - 

Promissory note discount is amortized on a compound interest method over 
the term of the debt. Issue costs are amortized on a straight-line basis 
over the term of the debt. 

Sinking Fund - 

On February 11, 1982 the Ferry Corporation Act was amended vesting any 
surplus remaining in the Sinking Fund to the Province of British Columbia 
after the discharge of Long-Term Liabilities outstanding at date of 
incorporation. Accordingly interest and exchange transactions in the 
Fund are eliminated from the Corporation's accounts. 


G 44 


PROVINCE OF BRITISH COLUMBIA 


NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. CASH AND SHORT-TERM INVESTMENTS 

Funds, other than those required for immediate settlement of liabilities 
are invested in short-term commercial securities authorized pursuant to 
the terms and provisions of the Revenue Act of British Columbia. The 
investments are arranged through the Ministry of Finance of the Province 


2. ACCOUNTS RECEIVABLE 

An accounts receivable of $1,950,619 due from the British Columbia 
Steamship Company (1975) Ltd. for the lease and modifications to the 
Lessee's specifications of the M.V. "Queen of Prince Rupert" in 1980 has 
been written off against income as an extraordinary item. 


3 . INVENTORIES 


Spare components, parts and supplies 
Fuel and lubricants 

Goods for resale and catering supplies 


1983 

1982 

(expressed 

in thousands) 

$ 6,026 

$ 5,953 

2,031 

2,200 

453 

498 

$ 8.510 

$ 8.651 


4. PREPAYMENTS AND DEPOSITS 

Prepayments include $1,897,000 held by the Province in excess of the 
amount estimated by the Corporation for the payment of benefits to 
employees disabled as of March 31, 1983. 


PUBLIC ACCOUNTS 1982/83 


G 45 


Notes 
Page 2 


5. RESERVED FUNDS 

The Corporation has segregated assets that are required for specific 
purposes or as required by statute. 


1983 1982 

(expressed in thousands) 


Fund for accrued sick leave liability (Note 9) 

Accrued interest $ 3 $ 54 

Due to general operating funds - (6) 

Investment 5,677 4,244 

5,680 4,292 

Self-insurance fund investment - 1,153 

$ 5.680 $ 5.445 


Funds reserved with respect to the accrued sick leave liability provisions 
are held in short-term commercial security investment. 


6. FIXED ASSETS 


1983 1982 


(expressed in thousands) 



Cost or 






Appraised 

Accumulated 

Net Book 

Net Book 


Value 

Depreciation 

Value 

Value 

Ships owned 

$ 274,617 

$ 

75,872 

$ 198,745 

$ 170,787 

Ships under capital 

63,051 


16,586 

46,465 

49,103 

lease 






Berths, buildings and 






equipment 

110,607 


51,801 

58,806 

45,981 

Land 

723 


- 

723 

723 

Construction in progress 

10,008 


- 

10,008 

56,757 


$ 459.006 

$ 

144.259 

$ 314.747 

S 323.351 


G 46 


PROVINCE OF BRITISH COLUMBIA 


7 . NOTES PAYABLE 


9.70% Promissory notes due August 26, 1983 


Notes 
Page 3 


1983 1982 

(expressed in thousands) 
$ 30,000 $ - 


The Province of British Columbia unconditionally guarantees the payment of 
principal and interest on the Promissory notes. 


8 . LONG-TERM DEBT 


1983 1982 

(expressed in thousands) 


Long-term debt issued by the Corporation 

8.95 % Promissory notes (effective rate 
of 15.75%), are repayable in five equal 
annual instalments of $5.7 million 

commencing March 5, 1988 $ 28,500 $ 28,500 

Less unamortized discount and issue costs 8,072 8,711 

20,428 19,789 

Long-term debt assumed from the 

British Columbia Ferry Authority - 11,927 

Less amounts due within one year - 11,927 


$ 20.428 $ 19.789 


The Province of British Columbia unconditionally guarantees the payment of 
principal and interest on the promissory notes. 


PUBLIC ACCOUNTS 1982/83 


G 47 


Notes 
Page 4 


9. ACCRUED SICK LEAVE LIABILITY 

On September 1, 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. Under the collective agreement with 
the employees, in the event of illness, the accumulated sick time may be 
withdrawn prior to retirement and on retirement any balance remaining is 
payable in cash at 50% of accredited time. The liability as at March 31, 
1982 based upon a recent actuarial evaluation by William M. Mercer Limited 
established the present lump sum value of cash payouts on retirement to 
all employees at $5,144,000 which, with interest will accumulate an amount 
required to meet those obligations. Funds reserved for liquidation of 
this liability are invested in short-term commercial security. 


10. OTHER INCOME (EXPENSE) 


1983 1982 


(expressed in thousands) 


Parking and ancilliary traffic revenue 

$ 734 

$ 739 

Interest earned on funds in bank 
and short-term investments 

288 

1,104 

Grant of right-of-way to B.C. Hydro 

300 

- 

Sinking fund investment income net of 

interest expense and foreign exchange loss 

_ 

1,952 


Self insurance provision for 
uninsured losses 


- ( 500 ) 

$ 1.322 $ 3.295 


11. PROVINCIAL SUBSIDY AND BENEFITS 

To March 31, 1982 the amount of the subsidy received by the Corporation 
from the Province of British Columbia was substantially equivalent to the 
aggregate of the annual cost of maintaining, and the annual amortization 
of the capital cost of, a two-lane highway built through difficult terrain 
in the coastal region and of a length equal to that of the ferry routes 
operated by the Corporation. On September 2, 1982 the Ferry Corporation 
act was amended and effective April 1, 1982 the amount of subsidy to be 
received from the Province of British Columbia will be determined 
annually. For the year ending March 31, 1983 the subsidy is $43,000,000. 


G 48 


PROVINCE OF BRITISH COLUMBIA 


Notes 
Page 5 

11. PROVINCIAL SUBSIDY AND BENEFITS Cont'd. 

Included in fixed assets as "ships under capital lease" are three ships 
leased from the Province at an annual cost of $1 each. The annual cost of 
these charters to the Province is $4,819,800. In addition the Corporation 
utilizes Crown land for terminals and highway access without rental or 
property taxes. The value of these benefits is indeterminable. The 
Corporation, as an agent of the Crown, is not liable to taxation, 
including taxation on improvements, except insofar as the Crown is liable. 

The Corporation utilizes Ministries and Agencies of the Provincial 
Government for negotiation and purchase of fuel, materials, communications 
and terminal maintenance and construction services. The aggregate of 
these transactions is $54. 

12. INTEREST EXPENSE 


Interest expense, amortizat 
promissory note discount 
amortization of debt issu 

- long term debt 

- current borrowings 


' million. 


ion of 
and 

e cost on: 


1983 1982 

(expressed in thousands) 


$ 3,209 
1,864 


$ 150 
743 


$ 5.073 


893 


13. COMMITMENTS 

The Corporation is contractually committed to complete the modification of 
sponsons and the propulsion system of the M.V. "Queen of Vancouver" and 
M.V. "Queen of Victoria". Also the Corporation is committed to the 
doubledecking of two berths at Horseshoe Bay terminal. The total 
estimated cost of these capital projects is $13.7 million and as at March 
31, 1983 the estimated remaining cost to complete these commitments is 
$4.4 million. 

Not included in the accounts is a lease commitment of $5.4 million which 
is fully recoverable through a non-cancellable sub-lease with the Ministry 
of Transportation and Highways for British Columbia. 


PUBLIC ACCOUNTS 1982/83 


G 49 


Notes 
Page 6 

14. COMPARATIVE FIGURES 

Certain comparative figures for the previous year have been reclassified 
to conform with the March 31, 1983 financial statement presentation. 


G 50 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HARBOURS BOARD 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 
British Columbia Harbours Board: 


I have examined the statement of financial position of the 
British Columbia Harbours Board as at 31 March 1983 and the 
statements of income and retained earnings and changes in 
financial position for the year then ended. My examination 
was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other 
procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly 
the financial position of the Board as at 31 March 1983 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 applied on a 
basis consistent with that of the preceding year. 








Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
10 June 1983 



PUBLIC ACCOUNTS 1982/83 


G 51 


Exhibit A 


BRITISH COLUMBIA HARBOURS BOARD 
STATEMENT OF FINANCIAL POSITION 
as at 31 March 1983 



1983 

(in 

1982 

$000’ s) 

ASSETS 



Current assets 

Cash and short term deposits 

Accounts receivable 

2,753 

551 

3,155 

572 


3,304 

3,727 

Fixed assets 

Railway (Note 3) 

Land (Note 4) 

Buildings and equipment (Note 5) 

14,796 

11,525 

620 

13,332 

11,534 

696 


26,941 

25,562 


30,245 

29,289 

LIABILITIES, CAPITAL AND RETAINED EARNINGS 

Current liabilities 

Accounts payable and accrued liabilities 

1,568 

370 

Due to the Province of British Columbia (Note 6) 
Note payable 

Advance payable 

6,000 

10,000 

Capital and retained earnings 

Appraised value of railway 
right-of-way (Note 3) 

Retained earnings - Exhibit B 

680 

21,997 

680 

18,239 


30,245 

29,289 


The accompanying notes are an integral part of these statements. 


Approved by 'the Board 


y 



Phillips, Chairman 


'yV, /cL. 


J.jJj. King, Executive Dire 



G 52 


PROVINCE OF BRITISH COLUMBIA 


Exhibit B 

BRITISH COLUMBIA HARBOURS BOARD 


STATEMENT OF INCOME AND RETAINED EARNINGS 


for the year ended 31 March 1983 

1983 1982 

(in $000 ’s) 

Revenue 

Railway 4,484 4,504 

Property rentals 628 582 

Interest on cash deposits 520 965 

5,632 6,051 

Expense 

Railway operations 1,187 1,137 

Insurance, maintenance and other 

property expenses 146 125 

Interest on note payable 227 

Salaries and benefits 193 203 

General administration 52 44 

Depreciation 69 78 

1,874 1,587 


Net income for year - Exhibit C 3,758 4,464 
Retained earnings at beginning of year 18 , 239 13 , 775 
Retained earnings at end of year - Exhibit A 21,997 18,239 


PUBLIC ACCOUNTS 1982/83 


G 53 


Exhibit C 


BRITISH COLUMBIA HARBOURS BOARD 


STATEMENT OF CHANGES IN FINANCIAL POSITION 


for the year ended 31 March 1983 


Source of funds 


Net income for year - Exhibit B 

Charges not requiring cash outlay: 
Depreciation 

Loss on disposal of fixed assets 
Funds provided by operations 
Note payable 

Grant in aid of construction (Note 3) 


Application of funds 

Fixed assets 
Advance repaid 


Decrease in working capital 
Working capital at beginning of year 


1983 1982 

(in $000' s) 


3,758 

4,464 

69 

78 

16 

- 

3,843 

4,542 

6,000 

- 

51 

- 

9,894 

4,542 


1,515 

283 

10,000 

8,839 

11,515 

9,122 

(1,621) 

(4,580) 

3,357 

7,937 

1,736 

3,357 


Working capital at end of year 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HARBOURS BOARD 

NOTES TO THE FINANCIAL STATEMENTS 

as at 31 March 1983 


The Board 


The British Columbia Harbours Board, established in 1968, 
is a Crown Corporation of the Province of British Columbia 
operating under the Harbour Board Act, R.S.B.C., 1979, and is 
an agent of the Crown. 

Significant accounting policies 

a) Capitalization of costs 

Railway is recorded at cost, except for part of the 
land used for railway right-of-way which is recorded 
at appraised value (Note 3). Cost includes the 
applicable portion of wage costs of the Board's 
employees . 

Land is recorded at cost less proceeds from granting 
easements. It excludes land used for railway right- 
of-way . 

Buildings and equipment are recorded at cost. 

b) Depreciation 

No provision for depreciation is made in respect of the 
railway because under agreements between the Board and 
the users of its railway, the users are responsible for 
costs of maintaining, renewing and replacing trackage 
as required. In case of retirement, the users are to 
compensate the Board in full for sections of railway 
retired . 


Depreciation on buildings and equipment is provided 
at 10% of the diminishing balance. 


Railway 


1983 1982 

(in $000's) 


Total 

expenditure 

19,669 

18 , 154 

Less : 

Expenditure by others 

4,822 

4,822 


Grants in aid of construction 

51 

- 



4,873 

4,822 

Balance 31 March 

14,796 

13,332 


The. expenditure by others related to amounts spent by the 
Ministry of Transportation and Highways on railway overpasses 
necessary for the operations of the rail line. The Board 
and railway users have agreed that these costs should be 
included as part of the railway capital costs on which 
railway income is based. 


PUBLIC ACCOUNTS 1982/83 


G 55 


BRITISH COLUMBIA HARBOURS BOARD 

NOTES TO THE FINANCIAL STATEMENTS 

as at 31 March 1983 


In 1978 the Board commissioned two independent real estate 
appraisers, Fred Cunningham Land Consultant Ltd. and Penny 
and Keenleyside Appraisals Ltd. to appraise land used for 
railway right-of-way and located on part of the 1,400 hectare 
parcel granted the Board in 1974 by the Crown in right of 
the Province. These appraisals were to determine the market 
value of the land when it was first used as railway right- 
of-way. Based on information contained in these appraisals, 
management has valued this land at $680,000. 

4 . Land 




1983 

1982 



(in $000 

' s) 

At cost 


12,047 

12,056 

Less proceeds 

from granting of easements 

522 

522 



11,525 

11,534 

Buildings and 

equipment 





1983 

1982 



(in $000 

’s) 

At cost 


1,725 

1,743 

Less accumulated depreciation 

1,105 

1,047 



620 

696 


6. Due to the Province of British Columbia 

The note payable to the Province of British Columbia was 
repayable on 1 April 1983 with interest at the rate of 
11.4%. It was issued to finance in part the repayment of 
an interest free advance from the Province of British 
Columbia . 

On 1 April 1983, the note was re-negotiated to mature on 
2 April 1984 at an interest rate of 10.1%. 

The Government of the Province of British Columbia has 
unconditionally guaranteed the principal and interest on 
the note payable. 

7. Railway 

The Board's railway is managed under contract by British 
Columbia Railway Company which is responsible for main- 
taining the right-of-way and for billing user railways 
for costs on behalf of the Board. 


G 56 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HARBOURS BOARD 

NOTES TO THE FINANCIAL STATEMENTS 


as at 31 March 1983 


8. Litigation 

In 1976 the British Columbia Court of Appeal confirmed the 
Province's ownership of the bed of the Strait of Georgia 
and related areas as set out in Order-in-Council number 
3459 dated 31 October 1974. This decision confirms that the 
Crown in right of the Province had authority to transfer to 
the Board about 690 hectares of land below low water, 
bringing the Board's total land holdings in the Roberts Bank 
area below high water up to 1,400 hectares at that time. An 
appeal by the Government of Canada was heard in the Supreme 
Court of Canada in October 1982 but no decision has been 
handed down. 

In order not to let this ownership question impede the devel- 
opment and expansion of the Roberts Bank Superport, an agree- 
ment was signed on 19 August 1980 between the Queen in right 
of Canada and the National Harbours Board on one hand and 
the Queen in right of the Province of British Columbia and 
the British Columbia Harbours Board on the other hand. 

Under this agreement, the British Columbia Harbours Board 
agreed to convey free of cost 195 hectares of this 1,400 
hectares to the Queen in right of Canada on the condition 
the National Harbours Board at its own cost completes 
development and expansion in accordance with the approved 
development plan for this land before 2 July 1987. If this 
condition is not met, title to this land will revert to the 
British Columbia Harbours Board. 

The agreement also provides that if the decision of the B.C. 
Court of Appeal is reversed by the Supreme Court of Canada, 
then Canada and the National Harbours Board will convey to 
the Province of British Columbia or its agents, free of cost, 
land sufficient for rail and road purposes to serve the 195 
hectare parcel. 

9. Commitments 

In January 1983, contracts were awarded to construct additional 
rail trackage to serve the expanded Roberts Bank Superport 
for a total amount of $2.5 million. As at 31 March 1983, 
expenditures incurred and included in the financial state- 
ments totalled $1.1 million. 

10. Presentation 

The presentation of comparative financial position and 
rev.enue and expense figures for 1982 has been changed to 
conform with the 1983 presentation. 


PUBLIC ACCOUNTS 1982/83 


G 57 


BRITISH COLUMBIA HEALTH CARE RESEARCH FOUNDATION 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 

British Columbia Health Care Research Foundation, and 


To the Minister of Health 
Province of British Columbia: 


I have examined the balance sheet of the British Columbia Health 
Care Research Foundation as at 31 March 1983 and the statement of 
revenue and expenditure and surplus for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and other 
procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Foundation as at 31 March 1983 and the 
results of its operations for the year then ended in accordance 
with generally accepted accounting principles applied on a basis 
consistent with that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
3 June 1983 



G 58 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HEALTH CARE RESEARCH FOUNDATION 
(Incorporated under the Societies Act of British Columbia) 

BALANCE SHEET 
AS AT 31 MARCH 1983 


ASSETS 


Cash and term deposits 
Accrued interest receivable 
Unexpended and surplus research 
grants receivable 


LIABILITIES 

Accounts payable 
Grants payable 

SURPLUS 


1983 1982 


$2,063,665 

122,805 

$ 1 , 545,099 
145,970 

- 

94,248 

$2,186,470 

$1,785,317 

$ 5,046 

1,644,448 

$ 30,283 

1 ,055,668 

536,976 

699,366 

$2,186,470 

$1 ,785,317 


The accompanying note is an integral 
part of these financial statements. 


Approved on behalf of the Board of Directors 


PUBLIC ACCOUNTS 1982/83 


G 59 


BRITISH COLUMBIA HEALTH CARE RESEARCH FOUNDATION 
STATEMENT OF REVENUE AND EXPENDITURE AND SURPLUS 


FOR THE YEAR ENDED 31 MARCH 1983 


1983 


REVENUE 

Contributions from the Lottery Fund $2,700,000 

Interest 509,676 


1982 


$2,700,000 

538,322 


3,209,676 


3,238,322 


EXPENDITURE 


Administrative expenses 
Scholarship awards 
Research fellowships 

Health Care Research grants (note 1) 


86,688 
359,500 
74,500 
2,851 ,378 


95,495 

333,040 

69,750 

2,585,178 


3,372,066 


3,083,463 


(DEFICIENCY) EXCESS OF REVENUE OVER 
EXPENDITURE 

SURPLUS AT BEGINNING OF YEAR 


(162,390) 

699,366 


154,859 

544,507 


SURPLUS AT END OF YEAR 


$ 536,976 


$ 699,366 


G 60 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HEALTH CARE RESEARCH FOUNDATION 
NOTE TO FINANCIAL STATEMENTS 
31 MARCH 1983 


1. GRANTS TO RESEARCH ORGANIZATIONS 

The Foundation paid grants to support health care research and 
development projects to the organizations listed below. The grants 
are administered and disbursed by these organizations as expenses 
are incurred. Interest earnings on funds on deposit remain with 
the organization to offset administrative expenses. Amounts which 
are surplus at project completion or unexpended due to project 
cancellation or alternate funding are returnable to the Foundation. 


TOTAL GRANTS 


Boundary Union Board of Health 
Cancer Control Agency of B.C. 
Children's Hospital 
Environcon Ltd 

Greater Vancouver Mental Health 
Service 

Lions Gate Hospital 
Royal Jubilee Hospital 
Selkirk Health District 
Simon Fraser University 
St. Paul's Hospital 
University of British Columbia 
University of Victoria 
Vancouver General Hospital 


Less: Unexpended and surplus 

research grants returned 


1983 


1982 

; 22,788 

$ 

_ 

72,497 


45,868 

8,319 


- 

15,000 


- 

10,600 


_ 

- 


25,783 

- 


6,300 

20,000 


29,722 

24,500 


67,250 

- 


20,780 

2,582,027 


2,393,879 

66,210 


71,800 

44,000 


21 ,000 

2,865,941 


2,682,382 

14,563 


97,204 

2,851 ,378 

$ 

2,585,178 


PUBLIC ACCOUNTS 1982/83 


G 61 


BRITISH COLUMBIA HERITAGE TRUST 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


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

To the Provincial Secretary and Minister of Government 
Services, Province of British Columbia 


I have examined the balance sheet of the British Columbia 
Heritage Trust as at 31 March 1983 and the statements of 
revenue and expenditure and changes in financial position 
for the year then ended. My examination was made in 
accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as I 
considered necessary in the circumstances. 

In my opinion, these financial statements present fairly 
the financial position of the Trust as at 31 March 1983 
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 applied on a 
basis consistent with that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
31 May 1983 


3 


G 62 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 


BRITISH COLUMBIA HERITAGE TRUST 
BALANCE SHEET 
AS AT MARCH 31, 1983 


ASSETS 


1983 


1982 


Cash and short term deposits 

Accounts receivable and advances 
Accrued interest receivable 

$2,236,657 

1,604 

66,688 

$2,1 56,509 
6,016 
74,104 


2,304,949 

2,236,629 

Mortgages receivable 

Deposit on property (note 2) 

Investment in property (note 2) 

154,696 

199,500 

546,402 

155,508 

199,500 

285,619 


900,598 

640,627 


$3,205,547 

$2,877,256 

LIABILITIES 



Accounts payable 

$ 34,624 

$ 31,280 

SURPLUS 



Balance - beginning of year 

Excess of revenue over expenditure 
for the year - Exhibit B 

2,845,976 

324,947 

1 ,943,907 

902,069 

Balance - end of year 

3,170,923 

2,845,976 


$3,205,547 $2,877,256 


The accompany incj five notes are an inteqral part 
of these financial statements 


Approved by 




PUBLIC ACCOUNTS 1982/83 


G 63 


EXHIBIT B 


BRITISH COLUMBIA HERITAGE TRUST 
STATEMENT OF REVENUE AND EXPENDITURE 
FOR THE YEAR ENDED MARCH 31, 1983 


1983 1982 


REVENUE 


Interest earned 


$ 371,266 

$ 467,429 

Grant from British Columbia 

Lottery Fund 

1 ,250,000 

1 , 250,000 

Donations and miscellaneous 

receipts (note 3) 

137,784 

1 ,950 



1 ,759,050 

1 ,719,379 


EXPENDITURE 

Administrative and other operating expenses 

1 13,727 

77,707 

Printing and public relations 

94,589 

73,431 

Capital projects 

98,637 

137,333 

Grants - Heritage Area Revitalization Program 

1 36,862 

43,990 

Grants - Planning and Inventory Assistance 

28,550 

41 ,936 

Grants - Restoration Program 

566,044 

295,683 

Grants - Publications Assistance Program 

96,293 

67,044 

Grants - Scholarships 

22,500 

15,000 

Grants - Student Employment Program 

129,321 

- 

Grants - Other 

147,580 

65,186 


1 ,434,103 

817,310 

EXCESS OF REVENUE OVER EXPENDITURE 

FOR THE YEAR - Exhibit A 

$ 324,947 

$ 902,069 


G 64 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT C 


BRITISH COLUMBIA HERITAGE TRUST 
STATEMENT OF CHANGES IN FINANCIAL POSITION 
FOR THE YEAR ENDED MARCH 31 1983 



1983 

1982 

FUNDS DERIVED FROM: 



Excess of revenue over expenditure 
for the year 

Repayment of mortgage receivable 

Sale of property 

$ 324,947 

812 

$ 902,069 

50,205 


325,759 

952,274 

FUNDS APPLIED TO: 



Investments in property 

Mortgages receivable 

260,783 

56,422 

155,508 


260,783 

21 1 ,930 

INCREASE IN WORKING CAPITAL 

64,976 

740, 344 

WORKING CAPITAL AT BEGINNING OF YEAR 

2,205,349 

1 ,465,005 

WORKING CAPITAL AT END OF YEAR 

$2,270,325 

$2, 205, 349 


PUBLIC ACCOUNTS 1982/83 


G 65 


NOTE 1 : 


NOTE 2: 


NOTE 3: 


BRITISH COLUMBIA HERITAGE TRUST 
NOTES TO THE FINANCIAL STATEMENTS 
MARCH 31, 1983 


SIGNIFICANT ACCOUNTING POLICIES 

a) It is the policy of the Trust to capitalize all costs 
incurred for the acquisition and restoration of sites 
purchased or to be purchased by the Trust whether the 
property has been or will be registered in the name of 
the Trust or of the Province. Costs incurred in 
restoring sites purchased directly by the Province are 
charged to expenditure accounts - capital projects. 

b) Due to the nature of the buildings, no provision is 
made for depreciation of buildings acquired as heritage 
sites . 

ACQUISITION OF PROPERTY 

During 1980, the Trust entered negotiations with the 
British Columbia Hydro and Power Authority for the 
purchase of a heritage property at an agreed price of 
$199,500. A deposit of $199,500 was paid into a trust 
account with respect to the purchase and remains an 
asset of the Trust until the transaction is finalized, 
which had not occurred at March 31 1983. By agreement 
with the vendor interest accruing on the deposit is for 
the account of the vendor of the property, regardless 
of whether or not the purchase is completed. 

Accordingly the interest accrued to March 31 1983 
amounting to $89,124, has not been reflected in the 
financial statements. 

Investment in property includes an amount of $173,195 
relating to expenditures incurred on this property. 


DONATIONS 

The Trust acquired a collection of farm machinery 
artifacts during 1982/83 as a donation. These 
artifacts were appraised by E. Norwood, Bastion Curios, 
at a value of $113,600 and are included in donations at 
this value. 


G 66 


PROVINCE OF BRITISH COLUMBIA 


NOTE 4: 


NOTE 5: 


BRITISH COLUMBIA HERITAGE TRUST 
NOTES TO THE FINANCIAL STATEMENTS 
MARCH 31, 1983 


ADMINISTRATIVE COSTS 

The Ministry of Provincial Secretary and Government 
Services provides staffing, accommodation and 
administrative services for the Trust. The costs of 
providing these services are substantially absorbed by 
the Ministry. 

COMMITMENTS 

Commitments with respect to grants approved for the 
following year amount to $867,121. 


PUBLIC ACCOUNTS 1982/83 


G 67 


BRITISH COLUMBIA HOUSING AND EMPLOYMENT DEVELOPMENT 
FINANCING AUTHORITY 



Province of 
3ritish Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 

British Columbia Housing and Employment Development 
Financing Authority, and 

To the Minister of Finance 
Province of British Columbia: 


I have examined the statement of assets and liabilities of the 
British Columbia Housing and Employment Development Financing 
Authority as at 31 March 1983 and the statement of sources and 
uses of funds for the period from 14 October 1982 to 31 March 
1983. My examination was made in accordance with generally 
accepted auditing standards, and accordingly included such 
tests and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Authority as at 31 March 1983 and the 
results of its operations for the period then ended in 
accordance with generally accepted accounting principles. 




.syr?** 


Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
23 June 1983 


G 68 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

BRITISH COLUMBIA HOUSING AND EMPLOYMENT DEVELOPMENT 
FINANCING AUTHORITY 
STATEMENT OF ASSETS AND LIABILITIES 
AS AT 31 MARCH 1983 

ASSETS 


Current : 


Note receivable: British Columbia Development 
Corporation, 9.80%, due 5 April 1983 
Accrued interest receivable 


Long-term loans receivable (note 3) 
Deferred charges (notes 2 and 6) 


$ 2 , 000,000 

202 , 1 38 

2,202,138 

6 , 000,000 

514,835 

$8,716,973 


LIABILITIES 


Current : 

Accounts payable 

Note payable: 9.80%, due 5 April 1983 
Accrued interest payable 


Long-term debt (note 4) 


$ 514,835 

2 , 000,000 

202,138 


2,716,973 

6 , 000,000 


$8,716,973 


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



PUBLIC ACCOUNTS 1982/83 


G 69 


EXHIBIT B 

BRITISH COLUMBIA HOUSING AND EMPLOYMENT DEVELOPMENT 
FINANCING AUTHORITY 

STATEMENT OF SOURCES AND USES OF FUNDS 
FOR THE PERIOD 14 OCTOBER 1982 TO 31 MARCH 1983 

Sources of Funds 


Proceeds of Authority debentures issued 

$6,000,000 

Proceeds of Authority note issued 

2,000,000 

Interest on long-term loans and note receivable 

202 , 1 38 


$8,202,138 


Uses of Funds 


Loans issued 

$6,000,000 

Notes issued 

2,000,000 

Interest on long-term debt and note payable 

202,1 38 


$8,202,138 


G 70 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HOUSING AND EMPLOYMENT DEVELOPMENT 
FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


1 . The Authority 

The Authority was established on 14 October 1982 by the 
Housing and Employment Development Financing Act , S.B.C. 
1982 C 34 . Section 3 of the Act states "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 
employment development bonds." 

2. Significant accounting policy 
Deferred charges 

Costs related to bond issues of the Authority are amortized 
over the life of the bond issues, as it is anticipated that 
interest rates on loans receivable will be set at a level 
that will recover all related issue and administrative 
costs . 


3. Long-term loans receivable 

British Columbia Development Corporation 

11.75% to 12.25%, due 1986 to 1987 $6,000,000 


PUBLIC ACCOUNTS 1982/83 


G 71 


BRITISH COLUMBIA HOUSING AND EMPLOYMENT DEVELOPMENT 


FINANCING AUTHORITY 


NOTES TO FINANCIAL STATEMENTS 


AS AT 31 MARCH 1983 


4. Long-term debt 

Issued to Province of British Columbia pension funds 


Series 

HED-A1 

HED-A2 


Rate 

12.25% 

11.75% 


Maturity 
15 December 1986 
22 February 1987 


$5,000,000 
1 , 000,000 
$ 6 , 000,000 


5. Provincial guarantees 

The Province of British Columbia has unconditionally 
guaranteed the payment of principal and interest on the 
current and long-term receivables of the Authority and the 
current and long-term debt of the Authority. 


6. Deferred charges 

In accordance with the accounting policy of the Authority, 
costs related to the April 1983 bond issues of the 
Authority (see note 7), incurred prior to 31 March 1983, 
have been recorded as def erred charges, and will be written 
off in equal instalments over the next three years. 


7 . Subsequent events 

In April 1983 an issue of $175 million British Columbia 
Housing and Employment Development Financing Authority 
9 1/4-10 1/4% bonds due 31 March 1986 was sold to the 
general public and an additional issue of $3.7 million was 
sold to the Province of British Columbia for distribution 
to members of the British Columbia Government Employees' 
Union . 


G 72 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HOUSING MANAGEMENT COMMISSION 


P 

I Peat, Marwick, Mitchell & Co. 


Chartered Accountants 

Suite 2100, One Bentall Centre 
505 Burrard Street 

Vancouver, British Columbia V7X 1M1 
(604) 685-8221 


AUDITORS ' REPORT 


To the Chairman 

British Columbia Housing Management Commission 
Vancouver, B.C. 


We have examined the combined balance sheet of the 
Province of British Columbia, projects and programs managed by 
British Columbia Housing Management Commission as at December 31, 
1982 and the combined statements of revenue and expenditure, and 
changes in financial position for the year then ended. Our 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and other 
procedures as we considered necessary in the circumstances. 

In our opinion, these financial statements present 
fairly the combined financial position of the projects and 
programs as at December 31, 1982 and the combined results of their 

operations and changes in their financial position for the year 
then ended in accordance with the accounting principles described 
in Note 1 to the financial statements applied on a basis 
consistent with that of the preceding year. 

The comparative figures as at December 31, 1981 and for 
the year then ended are based upon financial statements of that 
year which, except for the retroactive adjustments described in 
Note 4, were reported on by another firm of chartered accountants. 

I I 


Vancouver, Canada 
April 29, 1983 


Chartered Accountants 


PUBLIC ACCOUNTS 1982/83 


G 73 


PROVINCE OF BRITISH COLUMBIA 

PROJECTS AND PROGRAMS MANAGED BY 
BRITISH COLUMBIA HOUSING MANAGEMENT COMMISSION 


COMBINED BALANCE SHEET 

DECEMBER 31, 1982 AND 1981 


Cash 

$ 2,436,706 


Term deposits 


$ 2,700,000 

Accounts receivable 

356,085 

400, 792 

Prepaid expenses and shelter 
supplement 

1,241,766 

1,205, 195 

Disaster loss fund (note 3) 

546,704 

482,130 

Fixed assets (note Id) 

217,612 

427,684 

Due from Canada Mortgage and 

Housing Corporation 

8,780, 176 

7,557,305 


13,579,049 

12,773,106 

LIABILITIES AND PROVINCE'S ACCOUNT 



Bank indebtedness 


81,430 

Accounts payable 

1,945,104 

2,149,086 

Amortization payable (note lb) 

8,716,080 

8,932,194 

Tenants 1 prepaid rent 

270,480 

50,355 

Disaster loss reserve (note 3) 

546,704 

482, 130 


11,478,368 

11,695,195 

Province's account: 

Balance, beginning of year 

Prior period adjustments (note 4) 

Net receipts in respect of 
working capital and subsidies 

Net Provincial expenditure 

1,077,911 

(78,813) 

13,832,078 

(12,730,495) 

663,253 

87,172 

12,308,893 

(11,981,407 

Balance, end of year 

2,100,681 

1,077,911 


$13,579,049 

$12, 773,106 



G 74 


PROVINCE OF BRITISH COLUMBIA 


PROVINCE OF BRITISH COLUMBIA 

PROJECTS AND PROGRAMS MANAGED BY 
BRITISH COLUMBIA HOUSING MANAGEMENT COMMISSION 


COMBINED STATEMENT OF REVENUE AND EXPENDITURE 

YEARS ENDED DECEMBER 31, 1982 AND 1981 



1982 

1981 

Revenue : 

Tenant rent (note lc) 

Sundry 

$16,468,845 
54, 236 

$14,723,403 

62,323 


16,523,081 

14,785,726 

Expenditure : 

Amortization (note lb) 

Operating 

Shelter supplement 

Maintenance 

Grants in lieu of taxes (note 5) 
Administration 

Modernization and improvement 
Provincial programs 

Working capital interest (note 2) 

14, 318,670 
10,949, 187 
8,890,525 
3,823,834 
3,234,126 
2,660,350 
1,558,301 
1,297, 138 
1,399, 505 

14, 780, 773 
10,025,964 
8,405, 518 
3,565,554 
3,091,730 
2, 302,893 
1,700,681 
892,878 
1, 368, 271 


48,131,636 

46, 134, 262 

Interest income (net) 

1,101,597 

1,802, 722 

Excess of expenditure over revenue 
for the year 

30, 506,958 

29, 545,814 

Less Canada Mortgage and Housing 
Corporation subsidy share (note la) 

17,776,463 

17, 564,407 

Net Provincial expenditure 

$12,730,495 

$11,981,407 


See accompanying notes. 


PUBLIC ACCOUNTS 1982/83 


G 75 


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, 1982 AND 1981 


Sources of funds: 

Net receipts in respect of 
working capital and subsidies 

1982 

1981 

- Province of British Columbia 
Subsidy receipts - Canada Mortgage 

$13,832,078 

$12,308,893 

and Housing Corporation 

10, 702, 268 

13,323,792 

Decrease in accounts receivable 

44, 707 

442,135 

Decrease in prepaid expenses 


70,236 

Increase in accounts payable 


142,361 

Increase in amortization payable 


63,770 

Increase in tenants 1 prepaid rent 

220, 125 

. 

Application of funds : 

Excess of expenditure over 

24,799,178 

26, 351, 187 

revenue for the year 

Less : 

30,506,958 

29,545,814 

Depreciation expense 

(81,248) 

(80,821) 

Write-off of fixed assets 
Amortization credited to Canada 
Mortgage and Housing Corporation 

(128,824) 


- Section 40 

(5,772,511) 

(5,772,511) 


24,524,375 

23,692,482 

Increase in prepaid expenses 

36, 571 


Purchase of fixed assets 


36,455 

Decrease in accounts payable 

203,982 


Decrease in amortization payable 

216,114 


Decrease in tenants 1 prepaid rent 


43, 116 


24,981,042 

23, 772,053 

Increase (decrease) in funds 

(181,864) 

2,579,134 

Funds, beginning of year 

2,618,570 

39,436 

Funds, end of year 

Funds, represented by: 

$ 2,436,706 

$ 2,618,570 

Cash 

$ 2,436,706 


Term deposits 


$ 2,700,000 

Bank indebtedness 


(81,430) 


$ 2,436,706 

$ 2,618,570 


See accompanying notes. 


G 76 


PROVINCE OF BRITISH COLUMBIA 


PROJECTS AND PROGRAMS 

MANAGED BY BRITISH COLUMBIA HOUSING MANAGEMENT COMMISSION 


NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


1. SIGNIFICANT ACCOUNTING POLICIES 

a) Basis of financial statement presentation - 

These statements combine five separate financial 
statements of projects and programs operated by the 
Province of British Columbia (Ministry of Lands, Parks and 
Housing) and managed by British Columbia Housing 
Management Commission, each of which has its own subsidy 
sharing agreement. 

b) Amortization - 

These statements do not include the capital cost of the 
projects, however, amortization in lieu of depreciation 
and interest on capital costs is payable in part to 
the Provincial Rental Housing Corporation and in part 
credited to Canada Mortgage and Housing Corporation 
based on schedules provided by the participants. 

c) Rental Revenue - 

Tenant rent revenue represents rent charged to residents, 
and is determined as market rent, or 25% of the resident's 
income, whichever is less. The difference between market 
rent and tenant rent amounts to $14,024,444 in 1982 
($13,286,844 in 1981). This figure was shown on previous 
statements as Rental Supplement and Vacancies. 

d) Fixed assets - 

Gross proceeds on disposal are recorded as revenue; all 
purchases are recorded as expenditures, except for 
computer hardware and software which are recorded 
at cost as fixed assets and depreciated on the 
straight line basis over 5 and 3 years respectively. 
Previously capitalized development costs of $128,824, 
which do not relate to existing software, have been 
written-off in 1982. 

2. WORKING CAPITAL INTEREST 

The Province of British Columbia, through the 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. 


PUBLIC ACCOUNTS 1982/83 


G 77 


- 2 


3. 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 
damages to uninsured items. From 1976 to 1981, the fund was 
accumulated through an annual charge of $24 per unit plus the 
income from investment of the funds. The Province approved 
the discontinuance of the annual charge in 1982 as the fund 
had reached an adequate level. 

4. PRIOR PERIOD ADJUSTMENTS 

Under agreement between the Province of British Columbia and 
Canada Mortgage and Housing Corporation, the cost sharing of 
subsidies between the participants has been revised for prior 
years. The adjustment relates to the following programs: 


Section 44(1) (b) Senior 
Citizens 

Section 44(1) (b) High 
Impact Grants 


Canada Mortgage 
and Housing 
Corporation 


Province of 
British 
Columbia 


$(90, 329) 


$90, 329 


11, 516 


(11,516) 


$(78,813) 


$78,813 


5. 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 developments managed. 

6 . LEASE COMMITMENTS 

The Commission has obligations under operating leases for 
office space for the next 5 years: $317,000 in 1983, $317,000 

in 1984, $242,000 in 1985, $236,000 in 1986, and $118,000 in 
1987 . 

7. COMPARATIVE FIGURES 

The 1981 figures have been restated where necessary to conform 
with the 1982 presentation. 


G 78 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY 


Mice 

\\'atei 

T T CHARTEH 


ater House 

CHARTERED ACCOUNTANTS 


1 075 West Georgia Street 
Vancouver, British Columbia V6E 3G1 
(604)682-4711 Telex: 04-507740 


REPORT OF THE AUDITORS 


The Lieutenant Governor in Council, 

Province of British Columbia: 

We have examined the balance sheets of British Columbia Hydro and Power Authority as 
at March 31, 1983 and 1982, and the statements of income and earnings employed in the 
business and changes in financial position for each of the three years in the period 
ended March 31, 1983. Our examinations were made in accordance with generally accepted 
auditing standards, and accordingly included such tests and other procedures as we 
considered necessary in the circumstances. 


In our opinion, these financial statements present fairly the financial position of 
British Columbia Hydro and Power Authority as at March 31, 1983 and 1982 and the 
results of its operations and the changes in its financial position for each of the 
three years in the period ended March 31, 1983, in accordance with generally accepted 
accounting principles consistently applied. 




Vancouver, British Columbia 
May 6, 1983 


Chartered Accountants 


for the years ended March 31 


PUBLIC ACCOUNTS 1982/83 


G 79 



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1982 and 1981 figures have been reclassified to conform with the presentation used for 1983. 


G 80 


PROVINCE OF BRITISH COLUMBIA 


British Columbia Hydro and Power Authority 
Balance Sheet 
as at March 31 


FIXED ASSETS (Note 3): 


1983 1982 

(in thousands) 


Fixed assets in service, at cost 

$7,565,935 

$7,191,972 

Less - 

Accumulated depreciation 

1,498,372 

1,344,936 


6,067,563 

5,847,036 

Unfinished construction 

2,127,754 

1,578,695 


8,195,317 

7,425,731 

CURRENT ASSETS: 

Cash 

1,038 

539 

Temporary investments (Note 4) 

Funds receivable from issue of 

265,024 

530,262 

long-term debt 

Accounts receivable and unbilled 


7,036 

revenues 

Materials and supplies, at average 

248,980 

285,755 

cost 

65,087 

66,312 

Prepaid expenses 

27,943 

5,343 


608,072 

895,247 


UNAMORTIZED 

DISCOUNT AND EXPENSE ON 



LONG-TERM 

DEBT 

62,140 

49,745 


OTHER ASSETS (Note 5) 


44,179 15,944 


$8,909,708 $8,386,667 


1982 figures have been reclassified to conform with the presentation 
used for 1983 (Note 1). 

APPROVED BY THE DIRECTORS: 



PUBLIC ACCOUNTS 1982/83 


G 81 


1983 1982 

(in thousands) 


LONG-TERM LIABILITIES: 


Long-term debt (Notes 6 and 7) 
Deferred liabilities 


$6,832,495 $6,424,890 

58,372 79,398 

6,890,867 6,504,288 


CURRENT LIABILITIES: 


Bank indebtedness 
Accounts payable 
Accrued interest 

Long-term debt payments due within 
one year - 

Sinking fund instalments 
Maturities, less sinking fund 


17,576 

246,464 

277,861 


86,893 

144,181 

772,975 


20,354 

257,925 

227,935 


71,962 

105,181 

683,357 


RATE STABILIZATION ACCOUNT (Note 2) 


108,814 90,000 


CONTRIBUTIONS ARISING FROM COLUMBIA 
RIVER TREATY 

CONTRIBUTIONS IN AID OF CONSTRUCTION 

EARNINGS EMPLOYED IN THE BUSINESS 


386,971 396,185 
256,260 200,256 
493,821 512,581 


$8,909,708 $8,386,667 


COMMITMENTS AND CONTINGENCIES (Note 10) 


G 82 


PROVINCE OF BRITISH COLUMBIA 


British Columbia Hydro and Power Authority 
Statement of Changes in Financial Position 
for the years ended March 31 



1983 

1982 

1981 


(‘ 

in thousands) 


SOURCES OF FUNDS: 

Operations 

Operating income 

$ 77,054 

$ 209,941 $ 

113,039 

Charges (credits) not affecting funds: 

Depreciation 

173,326 

152,592 

136,276 

Other 

11,436 

(898) 

180 

Funds from operations 

261,816 

361,635 

249,495 

Long-term debt 

663,360 

1,334,379 

325,178 

Notes payable 

- 

- 

48,000 

Contributions in aid of construction 

65,532 

37,150 

31,839 

Mi seel laneous 

(48,220) 

31,676 

36,842 

Change in - accounts receivable 

36,775 

(48,498) 

(73,734) 

- accounts payable 

(11,461) 

39,928 

(9,673) 

- accrued interest 

49,926 

81,524 

6,823 

- other current assets and liabilities 

(17,117) 

1,320 

(13,509) 


1,000,611 

1,839,114 

601,261 

USES OF FUNDS: 

Fixed asset expenditures * 

1,037,398 

1,053,342 

739,902 

Sinking funds - 

Instalments 

72,101 

54,484 

47,902 

Income 

55,770 

54,457 

40,886 

Retirement of - 

Long-term debt 

100,081 

116,044 

71,693 

Notes payable 

- 

48,000 

- 


1,265,350 

1,326,327 

900,383 

INCREASE (DECREASE) IN CASH AND 

TEMPORARY INVESTMENTS 

(264,739) 

512,787 

(299,122) 

CASH AND TEMPORARY INVESTMENTS AT BEGINNING 

OF YEAR 

530,801 

18,014 

317,136 

CASH AND TEMPORARY INVESTMENTS AT END OF 

YEAR 

$ 266,062 

$ 530,801 $ 

18,014 


1982 and 1981 figures have been restated to conform with the presentation used in 

1983 (Note 13). 

* Includes interest capitalized in the amount of $217,208,000; (1982-$141,884,000; 
1981- $78 ,401,000). 


PUBLIC ACCOUNTS 1982/83 


G 83 


Note 1 


British Columbia Hydro and Power Authority 
Notes to Financial Statements 

SIGNIFICANT ACCOUNTING POLICIES: 

B. C. Hydro is a Crown corporation of the Province of British Columbia. 
B. C. Hydro's electric and gas services, including rates, are subject to 
regulation by the British Columbia Utilities Commission. The accounting 
policies of the corporation conform to accounting principles generally 
accepted in Canada. A description of significant accounting policies 
follows. See also Note 2 for an explanation of the rate stabilization 
account. 


Fixed assets and depreciation - 


Fixed assets in service consist principally of land, water rights, stor- 
age dams, plants for the generation, transmission and distribution of 
electricity and the distribution of gas, freight railway and rolling 
stock, and include the cost of plant financed by contributions in aid of 
construction and contributions arising from the Columbia River Treaty, 


The depreciation policy of B. C. Hydro is to charge the original cost 
of fixed assets to income over the estimated service lives of the 
assets. Depreciation is provided on all depreciable assets in service 
at the beginning of each year and is computed on the straight-line 
method. Composite rates by service were as follows: 



1983 

1982 

1981 


(%) 

(%) 

(%) 

El ectri c 

2.72 

2.57 

2.59 

Gas 

2.81 

2.88 

2.74 

Rai 1 

3.56 

3.61 

3.57 


B. C. Hydro charges interest to unfinished construction at rates equiva- 
lent to the cost of borrowing those funds which have been expended 
annually on each construction project. The rate applied to expenditures 
in the year ended March 31, 1983 was 15.8% (1982 - 15.1%; 1981 - 12.6%). 


As a result of a March 1983 British Columbia Utilities Commission 
instruction to reflect contributions on the balance sheet as they 
were in 1981 and previous years, contributions are now shown on the 
liabilities side of the balance sheet at amounts net of amortization 
and the balance sheet for 1982 has been reclassified accordingly. 


Contributions in aid of construction are being amortized over the 
estimated service lives of the related assets, and the credit 
resulting therefrom is offset against the correspondi ng provision for 
depreciation. Contributions arising from the Columbia River Treaty 
are being amortized over the remaining term of the Treaty, which 
expires in 2025, and the credit resulting therefrom is offset 
against and is equal to the annual provision for depreciation of the 
related assets. 


G 84 


PROVINCE OF BRITISH COLUMBIA 


Note 1 


Note 2 


SIGNIFICANT ACCOUNTING POLICIES (continued): 

Contributions received in respect of unfinished construction are 
included with deferred liabilities until the assets are placed in 
service. 

Unamortized discount and expense on long-term debt - 

These costs are amortized by charges to income over the life of the 
respective issues. 

Foreign exchange - 

The liability for long-term debt payable in United States currency is 
translated to Canadian currency at the rates of exchange prevailing at 
the date the debt was incurred. Current assets and current liabilities 
in United States currency, including long-term debt payable within one 
year, are translated at the rate of exchange prevailing at the date of 
the balance sheet. Foreign exchange adjustments are included in income. 

RATE STABILIZATION: 

The British Columbia Utilities Commission directed B. C. Hydro to create 
as of March 31, 1982, an account to be known as the rate stabilization 
account in the amount of $90,000,000, derived from export sales of 
surplus electric energy. 

For fiscal years subsequent to March 31, 1982, B. C. Hydro has been 
directed to credit to the rate stabilization account annually, an amount 
based upon revenues derived from export sales of surplus electric energy 
(exclusive of sales of firm energy under approved export contracts, 
including Washington Water Power Company) less direct expenses associated 
with such sales, including water rentals calculated by reference to the 
electricity generated to make such export sales, provided the account 
does not at any time exceed $200,000,000. 

For each of the fiscal years subsequent to March 31, 1982, the Commission 
has ordered B. C. Hydro to transfer from the rate stabilization account 
an amount of $60,000,000, or such lesser amount as will reduce the 
account balance to nil, to be credited to income in the year, unless 
otherwise directed. 

An analysis of the rate stabilization account is as follows: 


1983 1982 

(in thousands) 

Balance at beginning of year $ 90,000 $ 

Transfers from income 78,814 90,000 

Transfers to income (60,000 ) - 

$108,814 $90,000 


Balance at end of year 


PUBLIC ACCOUNTS 1982/83 


G 85 


Note 3 FIXED ASSETS: 


1983 1982 




Fixed Assets in Serv 

ice 

Unf i ni shed 

Construction 

Tota 1 

Total 


Original 

Cost 

Accumulated 

Depreciation 

Net 

Book 

Value 







(in mil 

1 ions ) 



Electric Service: 







Generation and storage 

$3,079 

$ 515 

$2,564 

$1,455 

$4,019 

$3,685 

T ransmi ss ion 

1,410 

251 

1.159 

418 

1,577 

1,347 

Transformation 

940 

193 

747 

203 

950 

860 

Distribution 

1,103 

289 

814 

- 

814 

765 

Bui 1 di ngs and other 

366 

107 

259 

17 

276 

244 

Total electric service 

6,898 

1,355 

5,543 

2,093 

7,636 

6.901 

Gas Service 

443 

76 

367 

6 

373 

349 

Rai 1 Freight Service 

48 

20 

28 

1 

29 

29 

Common Properties 

167 

48 

119 

28 

147 

138 

Sundry 

10 

- 

10 


10 

9 

T otal 

$7,566 

$1,499 

$6,067 

$2,128 

$8,195 

$7,426 


Note 4 TEMPORARY INVESTMENTS: 

1983 1982 

(in thousands) 

Temporary investments, at lower of cost or market - 


Deposits with banks and other financial 

institutions $211,245 

Notes of banks and other financial institutions 46,721 
Other 7,058 

$265,024 


$497,361 

26,102 

6,799 

$530,262 


NOTE 5 OTHER ASSETS: 

Included in other assets is an amount of $14.5 million representing 
payments made for 260 million cubic metres of gas not taken. 

B. C. Hydro purchases gas under a gas supply contract with a "take or 
pay" provision requiring payments for minimum quantities of gas 
whether taken or not taken. The contract allows B. C. Hydro to take 
such volume of gas paid for but not taken in the subsequent five years 
without further payment, provided it is taken in years when the load 
factor exceeds the minimum obligation for the year. 

To recover these' amounts B. C. Hydro has contracted to lease underground 
storage facilities in the State of Washington. Upon approval by the 
National Energy Board of Canada and the U. S. Department of Energy 
these storage facilities will provide the gas system with peak shaving 
capacity that will enable B. C. Hydro to use the volume of gas paid 
for but not taken. 


G 86 


PROVINCE OF BRITISH COLUMBIA 


Note 6 


LONG-TERM DEBT: 

1983 1982 

(in thousands) 

Total long-term debt outstanding - 

Payable in Canadian currency $4,317,673 $4,468,053 

Payable in United States currency 


(U.S. $2,961,300; 1982 - U. S. $2 ,440 ,050) 

Less: Sinking funds on deposit with 

Trustee, Minister of Finance for the 

3,331,313 

7,648,986 

2,675,395 

7,143,448 

Province of British Columbia 

Less: Long-term debt payments due 
within one year - 

585,417 

7,063,569 

541,415 

6,602,033 

Sinking fund instalments 

86,893 

71,962 

Maturities, less sinking fund 

144,181 

105,181 


231, 

1 074 

177,143 

$6,832 , 

,495 

$6,424,890 


Had the long-term debt payable in United States currency all been trans- 
lated to Canadian currency at the foreign exchange rate prevailing at 
March 31, 1983, the liability would have been increased by approximately 
$332,000,000 (1982 - $323,000,000). 

B. C. Hydro (including its predecessor companies) had 146 series of long- 
term debt outstanding at March 31, 1983 (1982 - 147). Coupon rates on 
this long-term debt range from 3 1/4% to 16 1/4%. The average effective 
interest cost on long-term debt denominated in Canadian dollars out- 
standing at March 31, 1983 is 9.17% (1982 - 9.14%). For long-term debt 
denominated in United States dollars at March 31, 1983 the cost is 12.09% 
(1982 - 11.64%). 

The following long-term debt was issued by B. C. Hydro during the year 
ended March 31, 1983: 


Coupon 
Rate % 

Series 

Date of 

Maturi ty 

Pri ncipal 

14 3/4 

FK 

May 6, 1989 

U.S. 

$200,000,000 

15 1/4 

FL 

July 15, 1992 

U.S. 

$150,000,000 

10 1/4 

FM 

March 18, 1988 

U.S. 

$200,000,000 


PUBLIC ACCOUNTS 1982/83 


G 87 


Note 6 LONG-TERM DEBT (continued): 

Many of the series have annual sinking fund requirements. Total long- 
term debt maturity payments and sinking fund instalments of the long- 
term debt outstanding at March 31, 1983 are as follows: 



Pt* i nc i pa 1 

Estimated Funds 
Accumulated to 


Cash Requirements 


Year Ending 
March 31 

Amount 

of Maturities 

Maturity Oate in 
Sinkinq Funds 

Net Debt 
Maturities 

Sinking 

Funds 

Total 



(in mill 

ions) 



1984 

1985 

1986 

1987 

$ 170 

292 

116 

242 

417 

$ 26 

19 

44 

97 

85 

$ 144 

273 

72 

145 

332 

$ 87 

91 

85 

92 

88 

$ 231 

364 
157 
237 
420 
1,409 


1,237 

271 

966 

443 

1989-1993 

1994-1998 

1999-2003 

2004-2008 

2009- 

1,684 

900 

1,221 

1,500 

1,107 

721 

618 

1,221 

1,500 

1,107 

963 

282 

369 

292 

212 

51 

3 

1,332 
574 
212 
51 
3 

$7,649 

$5,438 

$2,211 

$1,370 

$3,581 


Net debt maturities represent the principal amount of maturities minus 
estimated sinking funds at maturity, based on assumed earnings of 11% on 
existing sinking fund investments and future sinking fund instalments, 
and estimated discounts on anticipated purchases of bonds subject to 
annual mandatory redemption. 


Funds obtained from the Canada Pension Plan Investment Fund by B. C. Hydro 
contain provisions which would permit the Minister of Finance for Canada 
to call for redemption, in whole or in part, the bonds subject to 
certain restrictions. At March 31, 1983 issues of bonds outstanding 
obtained from the Canada Pension Plan Investment Fund amounted to 
$855,000,000, net of sinking funds. 

Note 7 GUARANTEE BY PROVINCE OF BRITISH COLUMBIA: 

The Province of British Columbia has unconditionally guaranteed the 
principal of and premium, if any, and interest on B. C. Hydro's long- 
term debt. 

Note 8 PENSION PLANS: 

Employees of B. C. Hydro are covered under contributory pension plans. 

It is B. C. Hydro's practice to obtain periodic actuarial valuations of 
the plans for purposes of determining annual pension costs and funding 
requirements. Current service costs are provided for and funded when 
incurred. Past service pension costs and accrued deficits arising from 
plan amendments, changes in actuarial assumptions and indexing supple- 
ments to existing pensioners are provided for and funded over periods 
and in amounts recommended by the actuary. 


G 88 


PROVINCE OF BRITISH COLUMBIA 


Note 8 


Note 9 


PENSION PLANS (continued): 

A preliminary actuarial report, dated May 4, 1983, prepared as of December 
31, 1982 indicated an accrued actuarial deficit in the principal plan as 
of that date of approximately $75,000,000. Of this deficit, B. C. Hydro 
is funding approximately $45,000,000 by payments of $3,061,000 per annum 
until 1999 and $1,200,000 per annum until 1997. Funding of the balance 
will be arranged after receipt of the final actuarial report and the 
actuary's recommendation. 

The total cost to B. C. Hydro in respect of pension plans, including its 
share of Canada Pension Plan costs, for the year ended, March 31, 1983 
was $29,112,000 (1982 - $34,584,000; 1981 - $21,886,000), of which 
$16,711,000 (1982 - $19,436,000; 1981 - $12,497,000) was charged to 
income and the balance capitalized and included in fixed assets. 

INTEREST: 

Interest and other financing expenses for each of the three years in the 
three year period ended March 31, 1983 comprise the following: 



1983 

1982 

1981 


(in 

thousands) 


Interest on long-term debt 

$799,784 

$684,964 

$529,267 

Amortization of discount and expense 

4,960 

3,761 

2,868 

Exchange adjustments on long-term debt 

11,400 

10,303 

7,304 

Other interest 

1,612 

2,026 

3,197 

Less: 

817,756 

701,054 

542,636 

Income from sinking fund investments 

held by Trustee 

55,770 

54,457 

40,886 

Income from temporary investments 

65,899 

96,709 

23,141 

Interest charged to construction 

217,208 

141,884 

78,401 


338,877 

293,050 

142,428 


$478,879 

$408,004 

$400,208 


PUBLIC ACCOUNTS 1982/83 


G 89 


Note 10 COMMITMENTS AND CONTINGENCIES: 

Purchase commitments and contracts of B. C. Hydro for capital projects 
aggregated approximately $490,000,000 at March 31, 1983. 

The powerplant and concrete dam contractor on the Revel stoke Project has 
made claims that it had to incur substantial unanticipated costs. The 
contractor has submitted claims with respect to the work performed to 
December 25, 1982 to a maximum amount of $108,313,557. 

Also in February 1983, B. C. Hydro received from the earthfill dam 
contractor on the Revelstoke Project, a submission claiming reimbursement 
to completion of the work in the amount of $15,295,284 which is 
presently under review. 

It is expected that B. C. Hydro will deny liability for the substantial 
part of all the claims made. Should any amount be paid by B. C. Hydro as 
a result of the claims, it will be capitalized as part of construction 
costs and included in fixed assets. 

Note 11 SEGMENT INFORMATION: 

B. C. Hydro is engaged in the operation of three principal services: 
generation, transmission and distribution of electricity; distribution 
of gas; and provision of a railway freight service. 

Most expenses are directly attributable to specific segments. Common 
expenses are allocated among the segments using appropriate bases estab- 
lished by regular review and analysis. 

Domestic and other electric service revenues include sales of firm 
energy under approved export contracts in the amount of $11,069,000 
(1982 - $11,212,000; 1981 - $11,758,000). Export surplus expenses 
include only direct costs, namely wheeling charges and water rentals. 

Identifiable assets are those assets that are used in each segment's 
operations. Corporate assets are principally temporary investments and 
unamortized discount and expense on long-term debt. 


Note 11 SFGMEN1 INFORMATION (continued): 


G 90 


PROVINCE OF BRITISH COLUMBIA 


to ro cn o o i 


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r- 1 <D r - 1 CM 


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vo o 


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: si 
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<u cn <v •*- ai 

E E X) 

O 0 J O rv 

c o c •*- ^ 


C. Oi Oi -Q r- 


O -O A 


Q. ro C -Cl O O 


Expenditures on fixed assets $ 997 $ 990 $ 695 $ 37 $ 60 $ 44 $ 1 $2 $ 1 $ 2 $ 1 $- $1,037 $1,053 $ 740 


PUBLIC ACCOUNTS 1982/83 


G 91 


Note 12 EXTRAORDINARY ITEM: 

In July 1982, the Hat Creek Project was deferred indefinitely as a 
result of rising costs to the project and reduced rates of growth 
in projected electrical demand. The estimated write-off for project 
costs including the costs of project demobilization, amounting to 
$77,000,000, has been shown as an extraordinary item in the statement 
of income and earnings employed in the business for the year ended 
March 31, 1983. 

Note 13 STATEMENT OF CHANGES IN FINANCIAL POSITION: 

The statement of changes in financial position is presented defining 
funds as cash and temporary investments. The comparative statements 
for 1982 and 1981, originally presented on a working capital basis, 
have been restated to conform with the current year's presentation. 


G 92 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the Board of Governors of the 
British Columbia Institute of Technology, and 

To the Minister of Education 
Province of British Columbia: 

I have examined the balance sheet of the British Columbia 
Institute of Technology as at 31 March 1983, the statement of 
revenue and expenditure and changes in fund balances, and the 
statements of revenue and expenditure for the year then 
ended. My examination was made in accordance with generally 
accepted auditing standards, and accordingly included such 
tests and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Institute as at 31 March 1983 and 
the results of its operations and the changes in its fund 
balances for the year then ended in accordance with generally 
accepted accounting principles, as modified by note 1(a) to 
the financial statements, applied, after giving retroactive 
effect to the change in the method of deferring tuition fee 
revenue as explained in Note 3 to the financial statements, 
on a basis consistent with that of the preceding year. 


Erma Morrison, F.C.A. 
Auditor General 



Victoria, British Columbia 
10 June 1983 


at March 31, 1983 


PUBLIC ACCOUNTS 1982/83 


G 93 



E. H. Alan Emery, B.A., L.l7b. J D.M. Macpherstfn, C.A. 

Chairman, Board of Governors / Vice President, Administration, 



Fund Balances, end of year $ (177,405) $ 5 (177,405) $2,395,934 $ (42,912) $ 535,655 $105,000 $11,294 $632,727 $ 3,460,293 $ 2,444,824 


Operating Fund Special Ancillary Capital Debt Trust Funds March 31 


PUBLIC ACCOUNTS 1982/83 


G 95 



G 96 


PROVINCE OF BRITISH COLUMBIA 



$48,102,562 $309,771 $48,412,333 $2,296,779 $3,223,358 $6,759,004 $678,367 $16,188 $311,263 $61,697,292 $53,535,386 



2 

2 


PROVINCE OF BRITISH COLUMBIA 


G 98 



All Willingdon campus land and certain buildings occupied by the Institute are the property of the Province of British Columbia and are provided 
free of charge except that a portion of the land for the residences is leased from the Province of British Columbia at $25 per annum terminating 
October, 2037. 


MARCH 31, 1983 


PUBLIC ACCOUNTS 1982/83 


G 99 



TOTALS: $7,229,917 $2,381,000 


BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY 



Appropriation of funds $ 191,485. 


MARCH 31, 1983 


PUBLIC ACCOUNTS 1982/83 


G 101 



BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY 



On May 2, 1983, the Institute received proceeds from the sale of a sinking fund debenture issued in the amount of $2,476,000 under the provisions 
of the Educational Institution Capital Finance Act. The debenture is due on May 2, 2003 and interest is payable at a rate of 11.53% per annum. 


for the year ended March 31, 1983 


PUBLIC ACCOUNTS 1982/83 


G 103 



Fund Balances $ 119,798 $ - $ (162,710) $- $- $- $ - $ (42,912) 


G 104 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 


REPORT OF THE COMPTROLLER GENERAL 


The financial statements of the British Columbia Liquor Distribution 
Branch have been prepared from, and accurately reflect, the financial 
records of the Government of British Columbia. Although an auditor's 
opinion has not been expressed on these financial statements, the 
accounts of the Branch have been examined as part of the audit of the 
Government's accounts. 



A/Comptroller General 


Victoria, British Columbia 
September 30, 1983 


PUBLIC ACCOUNTS 1982/83 


G 105 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
BALANCE SHEET AS AT MARCH 31, 1983 


ASSETS 


CURRENT ASSETS 

Cash (note 2) 

Accounts receivable 
Inventories 

FIXED ASSETS, at cost (note 3) 

Less accumulated depreciation 


1983 1982 


$ 

6, 

,403, 

,947 

$ 


_ 




586, 

,537 



680, 

,165 


39, 

,893, 

,813 


35, 

,175, 

,457 


46, 

,884, 

,297 


35, 

,855, 

,622 


30 : 

,030, 

,094 


27, 

,223, 

,902 


IS 

,147, 

,851 


11, 

,575, 

,403 


14 

,882, 

,243 


15, 

,648, 

,499 

$ 

61 

,766, 

,540 

$ 

51, 

,504, 

,121 


LIABILITIES 


CURRENT LIABILITIES 


Bank overdraft (note 2) 

$ 

$ 1,085,537 

Accounts payable and accrued 
liabilities 

39,962,303 

33,091,009 


39,962,303 

34,176,546 

PROVINCE OF BRITISH COLUMBIA 

Working capital advance 

21,804,237 

17,327,575 


$ 61,766,540 

$ 51,504,121 


Commitments (note 5) 

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



General Manager 


Director of Finance 


G 106 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
STATEMENT OF INCOME FOR THE YEAR ENDED MARCH 31, 1983 


SALES (note 4) 

COST OF MERCHANDISE SOLD 

PROVINCIAL MALT LEVY (note 4) 

OPERATING EXPENSES (Schedule) 

OTHER INCOME 

NET INCOME 


1983 

1982 

$836,042,299 

$780,643,977 

450,062,238 

413,235,446 

385,980,061 

367,408,531 

47,728,689 

42,971,719 

433,708,750 

410,380,250 

98,371,282 

90,566,428 

335,337,468 

319,813,822 

1,751,176 

1,866,112 

$337,088,644 

$321,679,934 


STATEMENT OF CHANGES IN PROVINCIAL ADVANCE 
FOR THE YEAR ENDED MARCH 31, 1983 


Balance at beginning of Period 
Net Income 

Cash payments to Provincial Treasury 


1983 

$ 17,327,575 
337,088,644 
(332,611,982 ) 
$ 21,804,237 


1982 

$ 4,479,407 
321,679,934 
(308,831,766 ) 
$ 17,327,575 


BALANCE AT END OF PERIOD 


PUBLIC ACCOUNTS 1982/83 


G 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED MARCH 31, 1983 


1983 1982 

FUNDS DERIVED FROM OPERATIONS: 


Net Income 

$337,088,644 

$321,679,934 

Add charges not Involving an outlay 
of funds 



Depreciation 

3,693,543 

2,938,556 

Net book value of fixed asset 
disposal s 


66,835 


340,782,187 

324,685,325 

FUNDS APPLIED TO: 



Acquisition of fixed assets 

2,927,287 

8,846,115 

Cash payments to the Provincial 

Treasury 

332,611,982 

308,831,766 


335,539,269 

317,677,881 

Increase in working capital 

5,242,918 

7,007,444 

Working capital (Deficiency), at 
beginning of year 

1,679,076 

(5,328,368) 

WORKING CAPITAL AT END OF YEAR 

$ 6,921,994 

$ 1,679,076 

WORKING CAPITAL 



Current assets 

$ 46,884,297 

$ 35,855,622 

Current liabilities 

39,962,303 

34,176,546 

WORKING CAPITAL AT END OF YEAR 

$ 6,921,994 

$ 1,679,076 


G 108 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 1983 


1. SIGNIFICANT ACCOUNTING POLICIES: 


Revenues and expenses are reflected on an accrual basis. 

Merchandise inventory is valued at its latest landed cost. 
Customs and excise taxes are not included in the value of 
Inventory where payment Is due upon shipment from the bonded 
warehouse. 

Expenditures for buildings, leasehold improvements, furniture, 
fixtures and equipment are capitalized and are subject to 
depreciation on a straight line basis as follows: 


Bui 1 dings 

Leashold Improvements 


Furniture, Fixtures 
and Equipment 


7 1/2% per annum 

a minimum of 10% per annum or 
a rate sufficient to write 
off the cost over the remain- 
ing life of the respective 
lease. 


25% per annum 


2. CASH (BANK OVERDRAFT) 


1983 


1982 


Cash on hand and in banks (overdraft) 


$(2,209,943) 
8,613,890 
$ 6,403,947 


$(4,355,412) 

3,269,875 

$(1,085,537) 


Cash in transit 


PUBLIC ACCOUNTS 1982/83 


G 109 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 1983 


FIXED ASSETS: 

Land 

Buildings 

Leasehold Improvements 

Furniture, Fixtures 
and Equipment 

NET BOOK VALUE 


1983 


Accumul ated 


Cost 

Depreciation 

$ 1,135,423 

$ 

10,998,648 

5,153,224 

3,518,584 

927,091 

14,377,439 

9,067,536 

30,030,094 

15,147,851 

$14,882,243 



1982 

Accumulated 


Cost 

Depreci ation 

$ 1,135,423 

$ 

10,741,936 

4,596,998 

2,695,964 

478,342 

12,650,579 

6,500,063 

27,223,902 

11,575,403 


$15,648,499 


SALES: 


Included in sales are non-alcoholic items amounting to $910,111 
(1982 - $983,416). 

Sales made directly to Licensed Establishments by authorized 
Brewers' agents on behalf of the Liquor Distribution Branch totaling 
$148,765,746 (1982 - $130,989,255) are not included in the sales 
reported by the Branch. The Provincial Malt Levy reported on the 
Income Statement represents the margin on these sales. 

Sales made directly to the Public by authorized Commercial Winery 
Agency Stores of $1,113,727 (1982 - $1,172,753) are not included 
in the sales reported by the Branch. 


G 110 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 1983 


5. COMMITMENTS: 


Employees of the Branch contribute to the Public Service Super 
annuation Fund 6% of their salaries for basic pension purposes 
plus 1/2% of salaries for cost-of-living indexed increases in 
pension benefits. The contributions shown in the Schedule 
Include In addition to matching employee contributions, supple 
mentary assessments paid by the Branch to fund any deficiency 
in pensions for employees who retired during the year. This 
supplementary assessment was $2,293,987 in 1983 ($2,734,019- 
1982). 

An actuarial evaluation of the Public Service Superannuation 
Fund was made at March 31, 1980. Details of the unfunded 
liability are described in the Public Accounts of British 
Columbia. The portion of the unfunded liability attributable 
to the Liquor Distribution Branch was not determined by the 
actuary. 

The Branch maintains inventory in its bonded warehouse for 
which Federal Taxes have neither been paid nor recorded. 

As at March 31, 1983, the future liability for these taxes 
approximates $5,600,000. 

In 1979, a procedure to warehouse imported stocks by 
Suppliers' Agents was implemented. Under this concept, 
the Branch has a contractual obligation to purchase all 
inventories held by the agent should he opt out of the 
program. The obligation of the Branch should all agents 
choose to terminate their contracts, totals approximately 
$22,000,000 for agents and $11,000,000 for federal taxes 
as at March 31, 1983. 

Total commitments to March 31, 1983 for lease of premises 
amount to $33,610,000. Of this $5,325,000 becomes payable 
during the year ending March 31, 1984. 


BRITISH COLUMBIA LIQUOR DISTRIBUTION BRANCH 


PUBLIC ACCOUNTS 1982/83 


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$7,364,419 $70,609,616 $20,397,247 $98,371,282 $90,566,428 


G 112 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA PETROLEUM CORPORATION 


WOLRIGE, MAHON & COMPANY 


CHARTERED ACCOUNTANTS 


A. F. WOLRIGE B.COM., C.A. 
K. W. MAHON B.COM.. C.A. 
W. J. COBB C.A. 


W. GFELLER C.A. 

A. A. McCREADY C.A. 
P. GASTER C.A. 


G. W. SMITH B.A., C.A. 

M. SCHWEITZER B.A., C.A. 
J. B. SMILEY B.COM.. C.A. 


AUDITORS' REPORT 


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

We have examined the consolidated balance sheet of British 
Columbia Petroleum Corporation as at March 31, 1983 and the consolidated 
statements of income and retained earnings and changes in financial position 
for the year then ended. Our examination was made in accordance with 
generally accepted auditing standards, and accordingly included such tests 
and other procedures as we considered necessary in the circumstances. 

In our opinion, these consolidated financial statements present 
fairly the financial position of British Columbia Petroleum Corporation as at 
March 31, 1983 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 applied on a basis consistent with that of the 
preceding year. 


VANCOUVER, B.C. 
May 31, 1983 


WOLRIGE, MAHON & COMPANY 




Chartered Accountants 


EIGHTH FLOOR. 900 WEST HASTINGS STREET. VANCOUVER, B.C. V6C 1W4 - TELEPHONE (604) 684-6212 


PUBLIC ACCOUNTS 1982/83 


G 113 


BRITISH COLUMBIA PETROLEUM CORPORATION 


Consolidated Balance Sheet 
March 31, 1983 


Current assets 
Cash 

Accounts receivable 
Prepaid expenses 


Prepaid gas (Note 2) 
Property account (Note 3) 
Deferred charges 


1983 

ASSETS 

$ 32,670,810 

30,457,693 
3,799 

63,132,302 

65,532,757 

256,481 

299,506 

$ 129,221,046 


LIABILITIES AND RETAINED EARNINGS 


Current liabilities 

Accounts payable and accrued charges 

Liability for future gas supply (Note 4) 

Long-term debt (Note 5) 

Retained earnings 


$ 24,326,513 

14,533,618 
30,000,000 
60,360,915 
$ 129,221,046 


Statement 1 


1982 


$ 9,648,709 

55,528,214 
2,447,305 

67,624,228 

34,634,188 

288,068 

127,844 

$ 102,674,328 


$ 40,414,609 

5,358,515 

56,901,204 
$ 102,674,328 


Commitments (Note 6) 


Approved by the Directors: 






Director 

Director 


See accompanying notes to consolidated financial statements 


WOLRIGC. MAHON Si COMPANY 
Chartered Accountants 


G 114 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA PETROLEUM CORPORATION 
Consoldiated Statement of Income and Retained Earnings 
Year ended March 31, 1983 


1983 


Revenue 


Sales from natural gas, natural gas liquids 


and sulphur 

$ 

378,872,860 

Expenses 

Gas and by-product purchases 

Administrative and general expenses 


283,782,617 

1,474,423 



285,257,040 

Income from operations 


93,615,820 

Other income 


2,433,103 

Net income 


96,048,923 

Retained earnings, at beginning of year 


56,901,204 

Deduct: Transfers to Provincial Treasury 


152,950,127 

92,589,212 

Retained earnings, at end of year 

$ 

60,360,915 


See accompanying notes to consolidated financial statements 

WOLRIGE. MAHON Si COMPANY 
Chartered Accountants 


Statement II 


1982 

$ 562,269,686 

349,148,791 

1,426,957 

350,575,748 

211,693,938 

8,228,445 

219,922,383 

41,978,821 

261,901,204 

205,000,000 

$ 56,901,204 


PUBLIC ACCOUNTS 1982/83 


G 115 


BRITISH COLUMBIA PETROLEUM CORPORATION Statement III 

Consolidated Statement of Changes in Financial Position 
Year ended March 31, 1983 



1983 

1982 

Source of funds 

Operations 

Net income 

Add items not involving outlay of funds: 
Depreciation and amortization 

Loss on disposal of fixed assets 

$ 96,048,923 

59,316 

$ 219,922,383 

48,552 

102 

Proceeds from disposal of fixed assets 

Mortgages and other deferred charges 

Long-term debt (net) 

Payment on future gas supply 

96,108,239 

40,473 

29,787,865 

9,175,103 

219,971,037 

2,350 

9,703 

5,358,515 


135,111,680 

225,341,605 

Application of funds 

Prepaid gas 

Property additions 

Transfers to Provincial Treasury 

30,898,569 

27,729 

92,589,212 

33,910,954 

14,453 

205,000,000 


123,515,510 

238,925,407 

Increase (decrease) In working capital 

11,596,170 

(13,583,802) 

Working capital, at beginning of year 

27,209,619 

40,793,421 

Working capital, at end of year 

$ 38,805,789 

$ 27,209,619 


See accompanying notes to consolidated financial statements 

LRIGE. MAHON a, COMPANY 
Chartered Accountants 


WO i 


G 116 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA PETROLEUM CORPORATION 


Notes to Consolidated Financial Statements 


March 31, 1983 


Note 1 Summary of Significant Accounting Policies 

Consolidation 

The consolidated financial statements include the accounts of the 
Corporation and its subsidiary, British Columbia Gas Corporation. 

Gas Sales 

Under the terms of an agreement between Westcoast Transmission Company 
Limited and British Columbia Petroleum Corporation effective November 1, 
1973, the Corporation sells natural gas to Westcoast Transmission Company 
Limited at a price equal to the gross revenue received by that Company on 
the resale thereof less the total cost of service of that Company's utility 
system operation. 

Depreciation 

Furniture, equipment, automobiles and leasehold improvements are 
recorded at cost and depreciation is provided at rates considered adequate 
to amortize the cost over the service lives of the assets. Depreciation is 
computed on a straight-line basis. 

Note 2 Prepaid Gas 


Under its gas purchase contracts with producers, the Corporation is 
obligated to purchase and take delivery of, or pay for, a specified minimum 
annual volume of gas. In 1982, the Corporation was unable to take delivery of 
the minimum volume of gas and is, therefore, liable to pay for the resulting 
shortfall (deficiency gas). The Corporation is entitled to take delivery of 
deficiency gas over a period of ten years, with an adjustment for the prices 
prevailing when such gas is delivered. At March 31, 1983, the Corporation's 
deficiency gas amounted to $65,532,757. 


Note 3 Property Account 


Accumulated 


1983 


1982 



Depreciation & 


Net Book 


Net Book 


Cost 

Amortization 


Value 


Value 

Furniture $ 

233,148 

$ 97,512 

$ 

135,636 

$ 

138,107 

Automobiles 

32,294 

19,994 


12,300 


20,377 

Leasehold improvements 

211,309 

102,764 


108,545 


129,584 

$ 

476,751 

$ 220,270 

$ 

256,481 

$ 

288,068 


WOLRIGE. 

Chart 


HON & COMP. 
Accountants 


PUBLIC ACCOUNTS 1982/83 


G 117 


- 2 


Note 4 Liability for Future Gas Supply 

Liability for future gas supply represents a payment for deficiency gas incurred by 
a distributor in 1981 and 1982. Such deficiency gas volumes may be recovered from 
the Corporation within five years from the date incurred without further payment. 

Note 5 Long Term Debt 

On March 31, 1983 the corporation issued $30,000,000 11 3/8 Notes, due in 1988, 
which are individually guaranteed as to principal and interest by the Province of 
British Columbia. 

Note 6 Commitments 

(1) Under agreements with producers which waive the Corporation's liability to pay 
for deficiency gas incurred in 1980, the Corporation is committed to purchase 
and take delivery of, or pay for, a specified volume of such gas in each year 
to 1991. At March 31, 1983, the Corporation's aggregate liability under these 
agreements was estimated at approximately $29,776,000. 

(2) The Corporation has commitments under agreements for the lease of office 
premises extending to 1984. The aggregate rentals payable under leases 
amounted to approximately $191,000 at March 31, 1983. 


WOLRIGE, MAHON & COMPANY 

Chartered Accountants 


G 118 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA PLACE LTD. 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Shareholder of British Columbia Place Ltd., and 

To the Minister of Environment 
Province of British Columbia 


I have examined the balance sheet of British Columbia Place 
Ltd. as at March 31 , 1983 and the statement of source and 
application of funds for the year then ended. My examina- 
tion was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other 
procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the company as at March 31 , 1983 and 
the source and application of its funds for the year then 
ended in accordance with generally accepted accounting 
principles applied on a basis consistent with that of the 
preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
May 16, 1983 



PUBLIC ACCOUNTS 1982/83 


G 119 


BRITISH COLUMBIA PLACE LTD. 

(Incorporated on March 25, 1980 under the Company Act of British Columbia 
and having special powers under the British Columbia Place Act) 

BALANCE SHEET 


AS AT MARCH 31, 1983 


1983 

1982 

($'000's) 

( $ ' 000 1 s) 


ASSETS 





Cash at Bank 

$ 

1,688 

$ 

3,222 

Short Term Investments 


500 


1,750 

Grants and Accounts Receivable 


1,340 


12,794 

Land 


86,420 


78,868 

Stadium Construction and Development (Note 2) 


110,574 


50,026 

Stadium Boxes 


319 


— 

Site Services and Development 


23,215 


3,635 

Furniture, Equipment and Leasehold Improvements, 





Less Depreciation and Amortization 


346 


282 

Deferred Charges 


866 


197 

Mortgages Receivable 


2,655 


155 


$ 

227,923 

$ 

150,929 

LIABILITIES 





Accounts Payable and Accrued Liabilities 

$ 

22,387 

$ 

13,140 

Accrued Interest 


— 


3,002 

Notes Payable to the Province' of British Columbia 


— 


69,787 

Deferred Income 


536 


— 



22,923 


85,929 


SHAREHOLDER'S EQUITY 



Share Capital (Note 3) 

Contributed Surplus (Note 4) 

205,000 

65,000 


$ 227,923 

$ 150,929 


— — 



The accompanying notes are an integral part of the Financial Statements. 
Approved by the Board: 



G 120 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA PLACE LTD. 
STATEMENT OT SOURCE AND APPLICATION OF FUNDS 
FOR THE YEAR ENDED MARCH 31, 1983 


1983 

1982 

TV 000 's) 

(S’OOO's) 


SOURCE OF FUNDS 






Contributed Surplus (Note 4) 


$ 

203,000 

$ 



Depreciation and Amortization 



74 


30 

Increase in Accounts Payable and Accrued Liabilities 


9,247 


12,335 

Grants from the Province of British 

Columbia 


— 


56,547 

Decrease (Increase) in Cash, Short 1 

ierm Investments 





and Accounts Receivable 



14,238 


(14,938) 

Deferred Income 



536 


— 



$ 

229,095 

$ 

53,974 


APPLICATION OF FUNDS 





Land 

$ 

7,552 

$ 

14,197 

Stadium Construction and Development 


60,548 


46,757 

Stadium Boxes 


319 


— 

Site Services and Development 


19,580 


3,060 

Furniture, Equipment and Leasehold Improvements 


138 


197 

Deferred Charges 


669 


153 

Decrease (Increase) in Notes Payable to the 





Province of British Columbia 


69,787 


(27,062) 

Mortgages Receivable 


2,500 


155 

Decrease (Increase) in Accrued Interest 


3,002 


(908) 

Collateral Mortyage 


— 


17,425 

Reduction in Contributed Surplus (Note 4) 


65,000 


— 


$ 

229,095 

$ 

53,974 


PUBLIC ACCOUNTS 1982/83 


G 121 


BRITISH COLUMBIA PLACE LTD. 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED MARCH 31, 1983 


Basis of Reporting 

The financial statements of the Corporation are presented in accordance with 

generally accepted accounting principles. 

1 . Accounting Policies 

(a) All costs of constructing the Stadium are being capitalized, as 
are all land purchase costs, including interest, property taxes, 
temporary lease expenses less • revenues , and other items related 
to these purchases. 

Land purchase and site development expenditures will be allocated 
among the Stadiun and other projects as they are developed. 

furniture, equipment and leasehold improvements are stated at 
cost less accumulated depreciation and amortization. Deprecia- 
tion on furniture and equipment is calculated on a straight-line 
basis at a rate of 20?o. Amortization on leasehold improvements 
is calculated to write off the asset over the remaining term of 
the lease. As at March 31, 1983 accumulated amortization and de- 
preciation amounted to $127,000. 

(b) Deferred charges represent Stadium operations start up costs 
which will be charged against Stadium operations commencing in 
fiscal 1983/84. 

2. Stadiun 


Construction $ 98,289,000 

Other development expenses 12,283,000 

$ 110,574,000 

3. Share Capital 


Authorized 10,000 common shares without par value. 

Issued and fully paid, one share to British Columbia Buildings Corpora- 
tion - $1. The Minister of Finance for the Province of British 
Columbia retains voting rights of this share. 

4. Contributed Surplus 

Contributed surplus represents an equity investment by British Columbia 
Buildings Corporation in the amount of $205 million coincident with the 
acquisition of the only outstanding share of the Company from the Crown 
in right of the Province. 


G 122 


PROVINCE OF BRITISH COLUMBIA 


MOTES TO THE FINANCIAL STATEMENTS 


Page 2 


4. Contributed Surplus - Continued 

An aggregate of $65 million representing claims previously made by the 
Company of $15 million from the B.C. Place Fund and $50 million from 
the Lower Mainland Stadium Fund was paid as a dividend to the Province 
of British Columbia. 

5. Contractual Obligations 

(a) The Company has entered into an agreement with Dillingham Cor- 
poration Canada Ltd. to construct the Stadium for a guaranteed 
maximum price of $111,441,000. As at March 31, 1983, costs of 
$98,289,000 had been incurred relating to this agreement. 
Management presently believes -there is not a contingent liability 
with respect hereto. 

(b) , The Company has entered into an agreement with Phillips Barratt 

for the provision of architectural and engineering services at a 
cost of approximately $5,350,000. As at March 31, 1983, costs of 
$4,798,000 had been incurred relating to this agreement. 

(c) The Company has entered into various agreements to provide ser- 
vices for the Stadium and site property. As at March 31, 1983, 
the total value of commitments was $12,365,000 and costs of 
$2,091,000 had been incurred relating to such agreements. 

6. Contingent Liability 


A problem developed through the bankruptcy on March 26, 1982 of 

Bordignon Construction Ltd., a Stadium trade contractor, resulting in a 
number of liens being filed against the property. In the opinion of 
legal counsel: 

(a) under the Builders' Lien Act, the Company's liability will be 
limited to the 15% holdback applicable to the work completed at 
the time of the bankruptcy and most of the liens ultimately will 
be found invalid, 

(b) any expenditures in excess of the Bordignon contract price should 
form part of Dillingham's Guaranteed Ma. jnum Price without ad- 
justment, and 

(c) we have a claim against The Mortgage Insurance Company of Canada 
under its performance bond in the event of any loss. 

Both Dillingham and The Mortgage Insurance Company of Canada have 
denied responsibility for any claims. We have commenced action in the 
Supreme Court of British Columbia to enforce our claim against The 
Mortgage Insurance Company of Canada. 

In view of all these circumstances, in the opinion of B.C. Place 
management any additional costs due to this bankruptcy will not be 
material . 


PUBLIC ACCOUNTS 1982/83 


G 123 


BRITISH COLUMBIA RAILWAY COMPANY 


P 


Chartered Accountants 


Marwick, Mitchell & Co. 


Suite 2100, One Bentall Centre 
505 Burrard Street 

Vancouver, British Columbia V7X 1M1 
(604) 685-8221 


AUDITORS* REPORT 


To the Lieutenant Governor in Council 
Province of British Columbia 

We have examined the balance sheet of British Columbia Railway Company as 
at December 31 > 1982 and the statements of income and deficit and changes 
in financial position for the year then ended. Our examination was made 
in accordance with generally accepted auditing standards, and accordingly 
included such tests and other procedures as we considered necessary in 
the circumstances. 

In our opinion, these financial statements present fairly the financial 
position of the Railway as at December 31 > 1982 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 applied 
on a basis consistent with that of the preceding year. 



Peat, Marwick, Mitchell & Co 
Chartered Accountants 


Vancouver, British Columbia, Canada 
February 28 , 1 983 


BRITISH COLUMBIA RAILWAY COMPANY 


G 124 


PROVINCE OF BRITISH COLUMBIA 



PUBLIC ACCOUNTS 1982/83 


G 125 


MANAGEMENT REPORT ON FINANCIAL STATEMENTS 


The financial statements of the British Columbia Railway Company have 
been prepared by Management in accordance with accounting principles 
generally accepted in Canada for railways in a manner consistent with the 
previous year. Management is responsible for the accuracy, integrity and 
objectivity of the information contained in the financial statements and 
to ensure that the presentation conforms with generally accepted 
accounting principles. 

The independent auditors, Peat, Marwick, Mitchell 4 Co., have been 
appointed by the Lieutenant Governor in Council to express an opinion as 
to whether these financial statements present fairly the Railway's 
financial position and operating results in conformity with generally 
accepted accounting principles consistently applied. Their report 
outlines the scope of their examination and gives their opinion on the 
fairness of the statement presentation. 

The Audit Committee of the Railway Directors appointed by the Board meets 
periodically with financial officers of the Railway and the external 
auditors to ensure that each group is fulfilling its obligations and to 
review and approve the annual financial statements prior to their 
release. 

Management maintains an extensive system of internal accounting controls 
and believes that transactions are accurately recorded on a timely basis, 
are properly approved and result in reliable financial statements. The 
adequacy and operation of the control systems are monitored on an 
on-going basis by an internal audit department. 

The financial statements have, in the opinion of the Management of the 
Railway, been properly prepared within reasonable limits of materiality 
and within the framework of the accounting policies summarized in Note 1 
of the Notes to the financial statements. 


5 


G 126 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA RAILWAY COMPANY 
INCOME AND DEFICIT 
(Dollars in Thousands) 


Fiscal 

Year Ended 

December 31 

January 1 

1982 

1982 


(Reclassified 


- Note 2) 


Operating revenues 

$159,696 

152,539 

Operating expenses 

Operations 

46,883 

47,266 

Road maintenance 

25,759 

28,582 

Equipment maintenance 

45,281 

46, 146 

Depreciation 

17,436 

17, 125 

Other 

15, 183 

14, 176 

Government assistance - Note 12 

(8,725) 

( 3 , 812 ) 


141,817 

149,483 

Railway operating profit 

V 

17,879 

3,056 

Other income (expenses) 

Interest expense - Note 8 

(52,303) 

(54,800) 

Application of debt servicing grant 

49,985 

52,591 


(2,318) 

(2,209) 

Other income 

2*02* 

2,318 


705 

109 

Net income 

18,584 

3,165 

Opening deficit 

332,690 

335,855 

Closing deficit 

$314, 106 

332,690 


PUBLIC ACCOUNTS 1982/83 


G 127 


BRITISH COLUMBIA RAILWAY COMPANY 

CHANGES IN FINANCIAL POSITION 


(Dollars in Thousands) 



Fiscal 

Year Ended 


December 31 
1982 

January 1 
1982 

Funds provided 



Operations 

Net income 

Add depreciation 

$ 18,584 
17,436 

36,020 

3,165 

17,125 

20,290 

Long term financing 

153,138 

43,308 

Contributed surplus 

Construction 

Debt servicing - Note 8 

20,015 

2,700 

17,409 

Share Issue 

45,000 

- 

Government grants 

Construction - Note 12 

Passenger car modernization - Note 13 

271 

1 ,724 

256,168 

3,166 

658 

87.531 

Funds used 



Funds held in trust - Note 3 

Property and equipment 

Dease Lake Extension - Note 5 

Sinking funds and long-term debt 

(11,895) 

243,102 

5,427 

27,120 

263,754 

11,895 

72,579 

87 

25,575 

110,136 

Working capital (deficiency) 



Increase (decrease) 

(7,586) 

(22,605) 

Opening balance 

(35,281) 

(12,676) 

Closing balance 

$(42,867) 

(35,281) 


G 128 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA RAILWAY COMPANY 

NOTES TO FINANCIAL STATEMENT S 

December 31 , 1982 


1. Significant accounting policies 

The accounting regulations prescribed by the Canadian Transport Commission 
for Canadian railways have been adopted to the extent that this is 
possible without submitting specific accounting policies and 
depreciation rates to the Commission for approval. 

Class of business 

The Railway provides a fully integrated rail service within the Province 
of 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 received. 
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 released is removed at amounts 
which approximate the average unit cost. Labour costs for programmed 
replacements are expensed as incurred. 

All costs of constructing extension lines are capitalized to the date 
the line is certified operational by the British Columbia Ministry of 
Transportation and Highways. Capitalization of interest ceases and 
provision of depreciation commences on the date of certification. 

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 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 operations. 

The original cost of principal assets less estimated salvage value is 
depreciated over the following number of years: 


Number of Years 


Grades, surfacing and 

tunnels 

100 

Rails 


50 

Ties 


20 

Ballast 


25 

Bridges 


30 - 80 

Locomotives and power 

units 

25 

Freight cars 


33 


PUBLIC ACCOUNTS 1982/83 


G 129 


Repairs 

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

Materials and supplies 

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

Government assistance 

Government assistance has been recorded in accordance with the 

accounting recommendations of the Canadian Institute of Chartered 
Accountants. Grants directly related to the construction or 
rehabilitation of road property have offset related road property 
capital expenditures. Operating grants have been deducted from the 
related expense accounts. Assistance provided by Government in its 
capacity as shareholder has been credited to contributed surplus. 

Amortization of bond discount on sinking fund investments 

During the year, bonds issued by a related Provincial Crown corporation 
were acquired to be held as assets in the sinking funds. These bonds 
were acquired at a discount of $11,575,000 in a transaction 
structured to yield current market interest rates for the Railway's 
sinking funds through the amortization of the discount. It is the 
intention to hold these bonds to maturity therefore $616,000 has been 
recognized as income in the current year. All other bond discounts 
will be recognized at maturity. 

Income taxes 

The Railway is exempt from Canadian federal and provincial income taxes. 

Transactions in foreign currency 

Transactions originating in United States currency are recorded at the 
approximate exchange rates prevailing at the dates of the 
transactions. Current assets and current liabilities have been 
translated to equivalent Canadian amounts at the rate of exchange in 
effect on the balance sheet date. 


Leases 

Certain long-term lease transactions relating to the financing of 
equipment are accounted for as purchases of property. The 
capitalized lease obligation reflects the present value of future 
rental payments discounted at the interest rate implicit in the 
lease. The capitalized value of depreciable assets is depreciated 
over the term of the lease in equal annual amounts. The costs of all 
other leases are charged against operations as they are incurred. 

Fiscal year-end 

The fiscal year of the Railway ends on the Friday closest to December 
31. The 1982 fiscal year ended on December 31, 1982 and the 1981 
fiscal year ended on January 1, 1982; both comprised 52 weeks. 


G 130 


PROVINCE OF BRITISH COLUMBIA 


2. Reclassification 

The 1981 operating expenses have been reclassifed to correspond to the 
classifications prescribed by the Canadian Transport Commission. 
Expenses relating to rolling stock previously shown as Operations and 
Road Maintenance have been classified as Equipment Maintenance in 
1982 . 

3. Funds Held In Trust 

In 1981 a judgement was rendered by the British Columbia Supreme Court 
awarding two contractors costs and interest resulting from litigation 
concerning construction of the Dease Lake Extension. An amount of 
$11,895,077 was paid to the Court in trust pending resolution of the 
Railway's appeal of this judgement. In 1982 the British Columbia 
Court of Appeal overturned a portion of the Lower Court ruling. The 
net amount of the final judgement of $5,273,000 together with legal 
costs of $154,000 have been capitalized as a cost of the Dease Lake 
Extension. The balance of funds have yet to be released from the 
Court and are included in accounts receivable. 

4. Tumbler Ridge Branch Line 

In 1981, the Railway began construction of the 130 km Tumbler Ridge 
branch railway line to the coal fields located in northeastern 
British Columbia. Since inception of this project, the Government of 
the Province of British Columbia has granted $2,700,000, purchased 
$45,000,000 share capital and arranged the Railway's interim 
financing to construct the branch line. 

The Government of the Province of British Columbia intends to retire the 
interim financing with equity capital financing. Until such time as 
the interim financing is fully retired, the Province intends to 
annually subscribe for equity capital equivalent to the amount of 
interest capitalized and to provide annual grants equivalent to the 
amount of interest charged to operations. 

The total construction cost of the branch line, excluding capitalized 
financing charges, is currently projected at $455,000,000. As of 
December 31, 1982, the Railway has awarded construction contracts of 
$304,000,000. The Government of the Province of British Columbia has 
arranged interim financing by notes due January 7, 1983 in the 
aggregate of $178,517,000. These notes bear interest at a rate equal 
to the Canadian bank prime rate less 1/2% determined monthly on the 
anniversary date of issuance. Subsequently, these notes were retired 
using the proceeds of newly issued short term notes and acceptances. 
The interim financing obligations are debts of the Railway which will 
be repaid out of monies to be provided by the Province. 

5. Dease Lake Extension 

These costs consist of charges relating to the uncompleted Dease Lake 
Extension prior to suspension of construction in 1977 and legal and 
other costs incurred subsequently in connection with litigation 
commenced against the Railway by contractors involved in construction 
of the Extension. There are no commitments to continue construction 
and in the event any portion of this Extension is abandoned, the cost 
less any value recovered will be written off at that time. 


PUBLIC ACCOUNTS 1982/83 


G 131 


6. Long-term Debt 

Long-term debt is not secured by assets of the Railway. Bonds issued, by 
the Railway which are held in the sinking fund are not cancelled 
prior to maturity but for financial statement presentation have been 
deducted from the amounts shown as outstanding. As of December 31, 
1982 the principal amount of bonds issued by the Railway held in the 
sinking fund aggregated $5,320,000. (1981 - $25,378,000). 

Long-term debt outstanding, less current maturities, consists' of the 
following : 




1982 

1981 

Sinking fund 
1983-1987 

bonds and debentures 
- 3.25? to 5? 

$ 34,204,000 

15,129,000 

1988-1992 

- 5.75? to 7.66? 

40,415,000 

61,148,000 

1993-1997 

- 4.5? to 9.34? 

237,040,000 

165,669,000 

1998-2002 

- 7.48? to 10.5? 

383,348,000 

444,003,000 

2003-2005 

- 12.75? 

45,000,000 

75,000,000 

Less sinking fund assets 
net of Railway's own 
bonds held 

740.007.000 

132.249.000 

760.949.000 

125.161.000 

Notes and bonds 

16.875? - due 1986 and 1996 

607,758,000 

17,662,000 

635,788,000 

11,042,000 

Serial bonds 

4.875? - due 1988 

1,072,000 

1,222,000 

Long-term lease obligations 

19,408,000 

19,827,000 

Deduct current portion 

645,900,000 

9,456,000 

667,879,000 

10,935,000 



$636,444,000 

656,944,000 


Bonds totalling $185,327,000 which are held by the Minister of Finance 
for Canada contain a provision whereby under certain circumstances 
they may be presented for redemption upon six months notice given to 
the Railway. A further $13,738,000 of bonds are subject to 
redemption in various amounts at various dates 'until 1984, at the 
option of either the holder or the Railway. The Railway also has the 
right under certain circumstances to redeem bonds aggregating 
$476,651,000 at various dates, principally after 1983. 


G 132 


PROVINCE OF BRITISH COLUMBIA 


Long-term debt retirements and sinking fund provisions excluding 

obligations under capital leases and early redemption options, for 
the four fiscal years ending with 1987 are $9,539,000, $9,548,000, 
$18,410,000 and $9,570,000. 

Included in long-term debt outstanding at December 31, 1982 are 

obligations recorded at $28,733,000 with a par value of $26,071,000 
payable in United States currency. The Canadian equivalent of these 
obligations at December 31, 1982 is approximately $32,052,000. 

The Government of the Province of British Columbia has unconditionally 
guaranteed the principal and interest of the serial bonds, notes and 
sinking fund bonds and debentures. 

7. Share capital 

Authorized share capital is 10,000,000 shares of $100.00 each. 

During the year, 450,000 shares were issued for $45,000,000, 
increasing the number of shares outstanding to 2,305,729. 

8. Interest Expense 

The Government of the Province of British Columbia has granted 

$70,000,000 to assist in paying the 1982 historic debt servicing 
charges of the Railway. Of this amount, $49,985,000 has been applied 
to offset interest on long-term debt and the balance of $20,015,000 
has been added to contributed surplus. 


Interest expense is as follows : 


Interest on long-term debt & notes 
Less : 

Sinking fund earnings 

Interest capitalized 

Interest earned on temporary 
investments 


Interest on capitalized leases 
Less : 

Application of debt servicing 
grant 


1982 

1981 

$84,200,000 

72,803,000 

14,442,000 

13,450,000 

14,071,000 

1 ,743,000 

5,702,000 

5,019,000 

34,215,000 

20,212,000 

49.985.000 
2,318,000 

52.303.000 

52.591 .000 
2,209,000 

54.800.000 

49,985,000 

52,591,000 

$ 2,318,000 

2,209,000 


Net interest 


PUBLIC ACCOUNTS 1982/83 


G 133 


9. Lease Commitments 


The Railway 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 2000. Certain of 
these leases transfer substantially all of the benefits and risks of 
ownership to the Railway and are accounted for as capital assets. 


The following is a schedule of future minimum rental payments at 

December 31, 1982 required under non-cancellable leases that have 
terms in excess of one year: 



Capital 

leases 

Operating 

leases 

1983 

$ 3,091,000 

13,109,000 

1984 

3,091,000 

12,292,000 

1985 

3,091 ,000 

9,860,000 

1986 

3,091,000 

9,737,000 

1987 

3,091,000 

9,683,000 

Later years 

31,682,000 

44,945,000 

Total minimum lease payments 

47,137,000 

99,626,000 

Less: 

Executory costs 

(4,502,000) 


Imputed interest 

(23,227,000) 


Present value 

$19,408,000 


Assets under capital leases recorded in 
accounts as at December 31, 1982 are 

the property and 
as follows: 

equipment 

Equipment 

$20,316,000 


Accumulated depreciation 

2,662,000 



$17,654,000 


10. Contingent Liabilities 

The Railway is contingently liable with respect to pending litigation 
and claims which arise in the normal course of business. In the 
opinion of management any liability that may arise from 3uch 
contingencies would not have a material adverse effect on the 
financial statements of the Railway. 


G 134 


PROVINCE OF BRITISH COLUMBIA 


In connection with construction of the Tumbler Ridge Branch Line, 
certain contractors have made claims, or have indicated their 
intention to make claims, against the Company for construction work 
completed to date. In the opinion of the management, 3uch claims, if 
successful, should not exceed $10' million in the aggregate. Any 
amounts paid by the Company will be capitalized as costs of the 
Tumbler Ridge Branch Line . 

11. Pension Plan 

The majority of the Railway’s employees participate in a contributory 
pension plan and are entitled to limited vested rights prior to 
retirement. Independent actuaries performed an actuarial valuation 
of the plan as at December 31, 1981. Based on their report, the 
unfunded actuarial liabilities of the plan at that date approximated 
$8,600,000. These unfunded liabilities are being amortized over a 
period of 21 years from that date at a rate of $972,000 per annum. 

The total pension expense for the year, including amortization payments 
was $ 5 , 591,000 ( 1981 - $5,576,000). 

12. Government Assistance 


Total grants received from the Government 
Columbia were as follows: 

of the Province 

of British 


1982 

1981 

Debt servicing (Note 8) 

$70,000,000 

70,000,000 

Fort Nelson Extension 

Operating 

Rehabilitation 

5,837,000 

271,000 

3 , 812,000 

3,166,000 

Passenger operation - 1982 
- 1981 

1,763,000 

1,125,000 

- 

Passenger car modernization 

700,000 

1,700,000 


$79,696,000 

78,678,000 

Of the above , the following were treated 
expenses: 

as a reduction in 

operating 

Passenger operation - 1982 

- 1981 

$ 1,763,000 
1,125,000 

- 

Fort Nelson Extension 

5,837,000 

3 , 812,000 


$ 8,725,000 

3,812,000 


PUBLIC ACCOUNTS 1982/83 


G 135 


13* Related party transactions 

All of the outstanding shares of the Railway are owned by the Government 
of the Province of British Columbia. 

Long-term debt is guaranteed by the Province and the Railway received a 
grant to assist with the related debt servicing charges as described 
in Note 8. The Ministry of Finance of the Province acts as fiscal 
agent in the administration of the long-term debt and the 
Superannuation Commission of the Province administers the Pailway 
pension plan. Fees are charged for both of these services. The 
majority of sinking fund assets comprise securities issued or 
guaranteed by the Province and include the securities acquired during 
1982 at a discount as described in Note 1. The Railway received 
grants during the year for rehabilitation projects and operating 
losses incurred on the Fort Nelson Extension. The Railway also 
received grants for rehabilitation of the passenger car fleet and to 
partially cover the losses on the passenger operation, both as 
described in Note 12. No charge for property taxes on land used for 
Railway purposes is made by the Province. Financing for the 
construction of the Tumbler Ridge branch line is being arranged by 
the Province as described in Note 4. All other transactions between 
the Railway and the Province are at terms no more or less favourable 
than those with unrelated parties. 


G 136 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 

British Columbia Regional Hospital Districts Financing 
Authority, and 

To the Minister of Finance 
Province of British Columbia: 


I have examined the statement of assets and liabilities of 
the British Columbia Regional Hospital Districts Financing 
Authority as at 31 March 1983 and the statement of sources 
and uses of funds for the year then ended. My examination 
was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other 
procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Authority as at 31 March 1983 and 
the results of its operations for the year then ended in 
accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding 
year . 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
8 July 1983 


PUBLIC ACCOUNTS 1982/83 


G 137 


EXHIBIT A 

BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 
STATEMENT OF ASSETS AND LIABILITIES 
AS AT 31 MARCH 1983 
ASSETS 


Current : 

Accrued interest receivable 
Current portion of long-terra loan 
Instalments to sinking funds 
receivable within one year 


Long-term loans receivable 
(note 3 and schedule 1) 

Less accumulated sinking fund 
instalments and investment income 


1983 

26,843,944 

775,540 

23,109,890 

50,729,374 

791 ,048,756 


1 54 , 

,978 , 

,842 

636, 

,069, 

,914 

$ 686, 

,799, 

,288 


1982 

$ 20,119,572 

17 ,195,770 
37,315,342 
664,693,230 

121,1 37,895 
543,555,335 
$ 580,870,677 


LIABILITIES 


Current : 



Accrued interest payable 

$ 26,843,944 

$ 20,119,572 

Current portion of long-term debt 

775,540 

- 

Instalments to sinking funds 
payable within one year 

23 , 1 09,890 

17,195,770 




50,729,374 

37,315,342 

Long-term debt 

( note 4 ) 

791 ,048,756 

664,693,230 

Less sinking 
the Minister 
Province of 
(notes 2 and 

funds on deposit with 
of Finance of the 
British Columbia 

5) 

1 54,978,842 

1 21 , 1 37,895 


636,069,914 

543,555,335 

$ 686,799,288 

$ 580,870,677 


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



G 138 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT B 

BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 

STATEMENT OF SOURCES AND USES OF FUNDS 


FOR THE YEAR ENDED 

31 

MARCH 1983 




1983 

1982 

Sources of Funds 




Proceeds of Authority debentures 
issued 

$ 

133,045,1 86 

$ 128,130,000 

Interest on long-term loans 
receivable 


83,648,454 

62,745,193 



216,693,640 

190,875,193 

Sinking Funds: 

Instalments received 


17,195,769 

14,395,873 

Income on investments 


16,769,657 

13,883,683 

Less Funds management fees 
(note 5) 


33,965,426 

124,479 

28,279,556 


33,840,947 

28,279,556 

$ 250,534,587 

$ 219,154,749 


Uses of Funds 


Loans issued 


$ 133,045,186 

$ 128,130,000 

Interest on long-term debt 

83,648,454 

62,745 , 1 93 



216,693,640 

190,875, 1 93 

Sinking Funds: 

Instalments paid in 


17,195,769 

14,395,873 

Income on investments 

allocated 

16,769,657 

13,883,683 



33,965,426 

28,279,556 

Less Funds management 
(note 5) 

fees 

1 24,479 

. 


33,840,947 

28,279,556 

$ 250,534,587 

$ 219,154,749 


PUBLIC ACCOUNTS 1982/83 


G 139 


BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


1 . The Authority 

The Authority was established by the Hospital District Finance 
Act , RS 1979 , Chapter 179 . 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." Assistance in financing is to be 
provided by either purchasing debentures issued by Regional 
Hospital Districts or any other incorporated body that is 
authorized under an Act, its charter, or its memorandum of 
association to issue debentures for financing any of those 
projects or facilities, or by any other method approved by the 
Lieutenant Governor in Council with money raised by the issue and 
sale of debentures of the Authority. 

2. Significant accounting policies 

Sinking funds are maintained by the Trustee, the Minister of 
Finance of the Province of British Columbia, to provide for the 
retirement of Authority debentures at maturity. Sinking fund 
instalments, income earned on sinking fund investments, and the 
corresponding investment of the income by the sinking fund 
trustee have been reflected in the statement of sources and uses 
of funds. 

3. Long-term loans receivable 

Long-term loans receivable totalling $760,627,000, including all 
loans which were financed by borrowing from the Canada Pension 
Plan (see Note 4) are redeemable in whole or in part before 
maturity at the option of the Chairman of the Authority. Further 
long-term loans receivable totalling $2 million are redeemable in 
whole or in part before maturity but after 1994 at the option of 
the Chairman of the Authority. The remaining long-term loans 
receivable of $52,307,186 are not redeemable before maturity. 

The Province of British Columbia has unconditionally guaranteed 
payment of principal and interest on Regional Hospital District 
debentures. Debentures of the Health Facilities Association are 
not guaranteed. 

Details of long-term loans receivable are set out in 
Schedule I. 


G 140 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


4. Long-term debt 
Issued to: 

1983 1982 

Canada Pension Plan Investment Fund 
6.62% to 17.51% debentures, 

due 1988 through 2003. $ 726,127,000 $ 620,389,000 

Province of British Columbia 
Pension Funds 

7.00% to 13.60% debentures, due 

1990 through 1993. 32,310,000 22,310,000 

Province of British Columbia 

Boards, Agencies and Commissions 
6.79% to 15.75% debentures due 


1983 through 2001. 

44,497,1 86 

39,190,000 

General Public 

1 1 .375% due 1 988 

12,000,000 



814,934,186 

68 1 ,889,000 

Less: Current portion 

long-term debt. 
Instalments to 
payable within 

of 

775,540 

sinking funds 

one year. 23,109,890 

17 , 195,770 

Exhibit A 

$ 791,048,756 

$ 664,693,230 


Debentures 

issued 

to the Canada 

Pension Plan Investment Fund are 

redeemable 

on six 

months' notice 

, 

in whole or in part before 

maturity , 

at the 

option of the Minister of Finance of Canada. 

Serial debenture 

maturities due 

in 

each of the next five fiscal 

years are: 

1984 


$ 

775,540 


1985 



897,687 


1986 



1 , 039,073 


1987 



1 ,202,728 


1988 



1 ,392,1 57 


The Province of British Columbia has unconditionally guaranteed 
the payment of principal and interest on the long-term debt of 
the Authority . 


PUBLIC ACCOUNTS 1982/83 


G 141 


BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 
NOTES TO' FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


Sinking fund assets as at 31 March: 


Cash 

Investments at cost 
(Market value $148,487,297 

1 9 8 2 : $ 1 0 1 , 508,277) 

Accrued interest 


Less Funds management fees 
payable 

Exhibit A 


Sinking fund instalments of $23, 
next five years. 


1983 


1982 


$ 2 

,262 

$ 41 , 

391 

151,158 

,326 

1 1 7,794 , 

659 


3,942,733 

3,30 1 ,845 

155,103,321 

121 ,137,895 

1 24,479 

- 

$ 154,978,842 

$ 121,137,895 

890 are due in 

each of the 


Funds management fees have been charged to the sinking funds of 
the Authority by the Ministry of Finance for the year ended 
31 March 1983, in accordance with Section 39 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. 


G 142 


PROVINCE OF BRITISH COLUMBIA 


SCHEDULE 1 

BRITISH COLUMBIA REGIONAL HOSPITAL DISTRICTS FINANCING AUTHORITY 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 


AS AT 31 MARCH 1983 


Regional 

Interest 

Dates 





Hospital 

Rates 

of 





District 

% 

Maturity 


1983 


1982 

Alberni-Clayoquot 

6.62- 9.40 

1 988-1998 

$ 

4,422,500 

$ 

4,422,500 

Bulkley-Nechako 

6.75-13.30 

1990-2003 


7,857,000 


7,502,000 

Capital 

6.62-17.51 

1 988-2003 


89,439,000 


74,002,000 

Cariboo 

7.47- 9.07 

1993-1996 


2,525,000 


2,525,000 

Central Coast 

8.01-14.16 

1994-2002 


2,153,500 


2,115,500 

Central Fraser Valley 

6.62-17.51 

1988-2002 


20,218,000 


20,118,000 

Central Kootenay 

6.62-15.12 

1 988-2003 


1 1 ,020,000 


9,770,000 

Central Okanagan 

6.62-15. 12 

1988-2002 


17,247,400 


15,447,400 

Columbia -Shu swap 

6.62-17.01 

1988-2001 


7,493,000 


7,493,000 

Comox-S tr athcona 

6.62-17.51 

1988-2002 


16,344,300 


15,254,000 

Cowichan Valley 

7.23-10.02 

1 992-1999 


1 ,995,000 


1 ,995,000 

Dewdney-Alouette 

7.23-15.69 

1993-2002 


15,297,000 


12,997,000 

East Kootenay 

6.62-16.10 

1988-2003 


15,602,000 


14,093,000 

Fraser-Cheam 

6.75-15.38 

1989-2002 


6,256,600 


6,096,600 

Fraser-Fort George 

6.62-17.01 

1 988-2002 


29,561 ,200 


26,820,500 

Greater Vancouver 

6.62-17.51 

1988-2003 


354,266,000 


303,266,000 

Kitimat-Stikine 

6.62-10.40 

1988-2001 


1 0 , 845,000 


10,845,000 

Kootenay Boundary 

6.62-15.69 

1988-2003 


7,537,000 


7,329,000 

Mount Waddington 

7. 14-17.00 

1 991-2002 


6,035,000 


5,435,000 

Nanaimo 

6.79-17.00 

1 989-2002 


9,1 85,000 


8,035,000 

North Okanagan 

6.92-17.01 

1989-2003 


25,615,000 


12,229,000 

Okanagan-S imilkameen 

6.62-15. 1 2 

1988-2003 


13,654,000 


1 1 ,313,000 

Peace River-Liard 

6.62-10.26 

1988-1999 


13,019,000 


13,019,000 

Powell River 

6.62-12. 16 

1988-2003 


3,915,000 


3,472,000 

Skeena-Qu. Charlotte 

6.90-10.26 

1989-1999 


4,460,000 


4,460,000 

Squamish-Lil looet 

7.47-14. 16 

1993-2002 


1 ,620,000 


1 ,380,000 

Sunshine Coast 

7.01-13.66 

1991-2002 


3,565,000 


3,475,000 

Thompson-Nicola 

6.75-17.01 

1990-2003 


28,979,500 


27,479,500 





730,127,000 


632,389,000 

Health Facilities 







Association 

8.95-16. 1 0 

1983-2002 


84,807 , 1 86 


49,500,000 





814,934,186 


681 ,889,000 

Less:Current portion 

of long-term 

loans 


775,540 


- 

Instalments to sinking funds 

receivable 





within one year 




23 , 1 09,890 


17,195,770 


Exhibit A 


$ 

79 1 ,048,756 

$ 

664,693,230 


PUBLIC ACCOUNTS 1982/83 


G 143 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 



Office of the 

Auditor General 

Province of British Columbia 


Province of 
British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 

British Columbia School Districts Capital Financing Authority, 
and 

To the Minister of Finance 
Province of British Columbia: 


I have examined the statement of assets and liabilities of the 
British Columbia School Districts Capital Financing Authority 
as at 31 March 1983 and the statement of sources and uses of 
funds for the year then ended. My examination was made in 
accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as I 
considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Authority as at 31 March 1983 and 
the results of its operations for the year then ended in 
accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding year. 



Erma" Morrison , F.C.A 
Auditor General 


Victoria, British Columbia 
30 September 1983 


G 144 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 


STATEMENT OF ASSETS AND LIABILITIES 
AS AT 31 MARCH 1983 


Current : 


Cash 

$ 

$ 6,753 

Accrued interest receivable 
Current portion of long-term 

39,769,256 

33,554,936 

loans receivable 

Instalments to sinking funds 

3,834,750 

3,825,750 

receivable within one year 

35,071 ,681 

32,989,987 

Long-term : 

Loans receivable (notes 2, 3 

78,675,687 

70,377,426 

and schedule 1) 

Investments, at par value 

1 , 247,522, 590 

1 , 1 80,001 , 81 8 

(notes 2 and 5) 

75,484,800 

- 

Less accumulated sinking fund 
instalments and investment 

1 , 323,007,390 

1,180,001,818 

income (note 6) 

379,767,934 

372,131 ,833 


943,239,456 

807,869,985 


$1,021,915,143 

$ 878,247,411 


LIABILITIES 


Current : 

Due to the Province of British 
Columbia 

Accrued interest payable 
Current portion of long-term debt 
Instalments to sinking funds 
payable within one year 


Long-term debt (note 4) 

Less sinking funds on deposit 
with the Minister of Finance 
of the Province of British 
Columbia (note 6) 


$ 


39, 

, 769, 

, 256 

3, 

- 834, 

, 750 

35, 

,071 , 

,681 

78, 

,675, 

,687 

1 ,323, 

, 007, 

,390 


379, 

,767, 

,934 

943, 

,239, 

,456 


$1,021,915, 143 


$ ■ 6,753 

33,554,936 
3,825,750 


32, 

989, 

,987 

70, 

377, 

,426 

1,180, 

001 , 

,818 


372 , 

, 131 , 

,833 

807, 

,869, 

,985 

; 878, 

, 247, 

,411 


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


the Authority: 



ugJn A. JCurtis, Chairman 


integral 



PUBLIC ACCOUNTS 1982/83 


G 145 




EXHIBIT B 

BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING 

AUTHORITY 

STATEMENT OF SOURCES AND 

USES OF FUNDS 


FOR THE YEAR ENDED 31 

MARCH 1983 



1983 

1982 

Sources of Funds 



Proceeds of Authority debentures 



issued 

$148, 596,000 

$110, 016,760 

Debentures redeemed by School 



Districts 

3,825,750 

3,717,000 

Unrealized foreign exchange 



gain on long-term 
loans receivable 

326,016 

3,943,238 

Investments at par transferred 



from sinkinq funds (notes 2 and 5) 

75,484,800 

- 

Interest income on long-term 



investments 

2,355,693 

- 

Interest income on long-term 



loans receivable 

121,517,927 

103,121, 858 

Short-term investment income 

- 

6,753 


352, 106,186 

220,805,609 

Sinking Funds: 



Instalments received 

31 , 555, 648 

30,044,626 

Income on investments 

40,755,845 

39,063,440 


72,31 1 ,493 

69, 1 08,066 

Less: Funds management fees (note 6) 

263,191 

- 

Transfer of excess assets of 



certified sinking funds to 
the School Districts (note 2) 

6,776,760 

_ 

Investments transferred to 



the Authority (notes 2 and 5) 

57,635,441 

- 


7,636,101 

69,108,066 


$359,742,287 

$289,913,675 

Uses of Funds 



Loans issued to School Districts 

$148,596,000 

$110,016,760 

Debentures redeemed by the Authority 
Unrealized foreign exchange loss on 

3,825,750 

3,717,000 

long-term debt 

326,016 

3,943,238 

Long term loans receivable 



discharged (note 2) 

75,484,800 

- 

Interest on long-term debt 

Transfer of excess assets to the 

123,873,620 

103,121,858 

Province of British Columbia 

- 

6,753 


352, 106,186 

220,805,609 

Sinking Funds: 



Instalments paid in 

31 , 555, 648 

30,044, 626 

Income on investments allocated 

40,755,845 

39,063,440 


72,311 ,493 

69 , 108,066 

Less: Funds management fees (note 6) 

263, 191 

- 

Transfer of excess assets of 



certified sinking funds to 
the School Districts (note 2) 

6,776,760 

_ 

Investments transferred to 



the Authority (notes 2 and 5) 

57,635,441 

- 


7,636,101 

69, 1 08,066 


$359,742,287 

$289,913,675 


G 146 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


1. The Authority 

The Authority was established by the School District Capital 
Finance Act, R.S. 1979 Chapter 376 . Section 2 of the Act states 
that: "the object of the Authority is to assist the boards of 
school trustees of the various school districts created under the 
School Act to finance their capital expenditures by purchasing 
debentures issued by boards of school trustees with money raised 
by the issue and sale of debentures of the Authority." 

2. Significant accounting policies 

a) Sinking Funds 

Sinking funds are maintained by the Trustee, the Minister of 
Finance of the Province of British Columbia, to provide for 
the retirement of Authority debentures at maturity. Sinking 
fund instalments, income earned on sinking fund investments, 
and the corresponding investment of the income by the sinking 
fund trustee have been reflected in the statement of sources 
and uses of funds. 

b) U.S. Exchange 

Assets and liabilities denominated in United States dollars 
have been converted to Canadian dollars at the rate 
prevailing at 31 March 1983. 

c) Certification of Sinking Funds and Loans Discharged 

Under Section 8.1 of the School District Capital Finance Act, 
where a debenture of a School Board is held by the Authority, 
and the Minister of Finance certifies that the assets of the 
related sinking fund are sufficient to meet all obligations 
respecting the payment of principal and interest under the 
debenture, the Board who issued the debenture shall transfer 
the assets in the sinking fund to the Authority. 

Upon transfer of the assets, the debt of the Board is 
discharged, subject to conditions contained in the Minister's 
certificate. Where the Minister certifies that the assets of 
the sinking fund exceed what is required to meet the 
obligations of the debenture, the Authority shall pay the 
excess to the School Board. 


PUBLIC ACCOUNTS 1982/83 


G 147 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


2. Significant Accounting Policies 

c) Certification of Sinking Funds and Loans Discharged (cont'd.) 

During the year ended 31 March 1983, loans receivable 
totalling $75,484,800 were discharged. Investments with a 
book value of $57,635,441 were transferred from the sinking 
funds to the Authority. These investments have a par value 
of $75,484,800, and have identical interest rates and 
maturity dates to the loans receivable they are replacing. 
They will be held until maturity and will be used to finance 
interest payments and capital repayment of the Authority's 
corresponding debentures. 

In order to reflect this arrangement in the financial state- 
ments of the Authority the investments transferred have been 
recorded at par value. Details of the original cost of the 
investments and amortization of discount are disclosed in 
note 5. 

The transfer of excess sinking fund assets to the School 
Districts of $6,776,760 has been reflected in the statement 
of sources and uses of funds. 

3. Long-term loans receivable 

Long-term loans receivable totalling $1,040,191,290 are 
redeemable on five months notice in whole or in part before 
maturity at the option of the Chairman of the Authority. The 
remaining long-term loans receivable of $246,237,731 are not 
redeemable before maturity. 

The Province of British Columbia has unconditionally guaranteed 
payment of principal and interest of $1,253,793,021 of the total 
of $1,286,429,021 School District debentures held by the 
Authority . 

Details of long-term loans receivable are set out in Schedule 1 . 


G 148 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


4. Long-term debt 


Issued to: 

Canada Pension Plan Investment 

1983 


1982 

Fund 

6.40% to 17.51% debentures, 
due 1988 through 2003. 

$1 , 054,572,000 

$ 

931 , 570,000 

Province of British Columbia 




Pension Funds 

4.625% to 12.75% debentures, 
due 1983 through 1993. 

1 00,519,478 


74, 21 9, 996 

Province of British Columbia, including 



Boards, Agencies and Commissions 
4.625% to 11.00% debentures, due 
1984 through 1996 

92,992, 268 


98,251,313 

General Public 




4.50% to 16.875% debentures, 
due 1983 through 1991. 

113,830,075 


1 12,776,246 


1,361,913,821 

1 

,216,817,555 

Less: Current portion of long- 




term debt 

3,834,750 


3,825,750 

Instalments to sinking funds 
payable within one year 

35,071 ,681 


32,989,987 

Exhibit A 

$ 1 , 323,007,390 

$1 

,180,001,818 


Long-term debt includes U.S. exchange of $19,807,821 (1982: 

$19,963,555) . 

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

Serial debenture maturities of $3,250,000 are due in fiscal year 
1984, $2,500,000 in 1985, and $1,000,000 in 1986, n t including 
U.S. exchange. 

The Province of British Columbia has unconditionally guaranteed 
the payment of principal and interest on long-term debt of the 
Authority . 


PUBLIC ACCOUNTS 1982/83 


G 149 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 



Book Value 

Bond Discount 

Par Value 

British Columbia Buildings 
Corporation notes: 




5% due 15 February 1986 

5.5% due 9 May 1986 

6.25% due 1 November 1986 
6.75% due 15 November 1987 
6.875% due 15 December 1987 

$11, 630,741 
19,451 , 200 

14.990.000 
721 , 500 

10.842.000 

$ 3,176,059 

5, 226,800 
5,010,000 
278,500 

4, 1 58,000 

$14,806,800 

24,678,000 

20,000,000 

1 , 000,000 
15,000,000 

1983 amortization of 
d iscount 

57,635,441 

2,258,354 

17,849,359 

(2,258,354) 

75,484,800 

Exhibit A 

$59,893,795 

$15,591, 005 

$75,484,800 


The Province of British Columbia has unconditionally guaranteed 
payment of principal and interest on the notes held by the 
Authority. 

6. Sinking funds as at 31 March: 



1983 

1982 

Cash 

$ 574,656 

$ 310,080 

Investments at cost 

376,209,469 

361,215,070 

(Market value - $367,146,858 

1982: $303,148,268) 

Accrued interest 

10,023,760 

10,606,683 


386,807,885 

372, 131 , 83: 

Less: Funds management fees 

payable 

263,191 

- 

Excess assets of certified 
sinking fund payable to 

the School Districts 

6,776,760 

- 

Exhibit A 

$379,767,934 

$372, 131,833 


G 150 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


6. Sinking funds as at 31 March: (continued) 

Sinking fund investments include $26,087,068 (1982: $26,397,213) 
(par value) of debentures issued by the Authority. 

Sinking fund instalments of $35,071,681 are due in fiscal years 
1984-1987 inclusive and $34,274,776 in 1988. 

Funds management fees have been charged to the sinking funds of 
the Authority by the Ministry of Finance for the year ended 
31 March 1983 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. 

7. Foreign exchange gains and losses 

During the current fiscal year, the Authority issued $500,000 
(1982: $9,000,000) in debentures denominated in United States 
dollars, and re-lent the proceeds to school districts in Canadian 
dollars . 

The Authority has made arrangements to ensure that principal and 
interest repayments by the school districts will be sufficient to 
finance its repayments on these debentures. Any excess assets 
remaining at the date of maturity of the debentures would be 
transferred to the Consolidated Revenue Fund of the Province of 
British Columbia. Accordingly, temporary differences arising 
between amounts receivable and payable are not treated as gains 
and losses. 


PUBLIC ACCOUNTS 1982/83 


G 151 


BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 
AS AT 31 MARCH 1983 



School 

Interest 

Dates of 


No . 

District 

Rates % 

Maturity 

1 983 

1 

Fernie 

4.50 - 

18.25 

1983-2003 

$20,457,000 

2 

Cranbrook 

4.50 - 

18.25 

1983-2002 

9,263,000 

3 

Kimberley 

4. 50 - 

18.25 

1983-2002 

3,999,400 

4 

Windermere 

4.625- 

18.25 

1 983-2002 

5,259,800 

7 

Nelson 

4.50 - 

17.01 

1983-2003 

10,641, 500 

9 

Castleqar 

4.50 - 

17.01 

1 983-2002 

9,215,700 

10 

Arrow Lakes 

6.25 - 

13.09 

1987-2000 

1 , 330,000 

11 

Trail 

4.50 - 

18.25 

1 983-2003 

3,982, 600 

1 2 

Grand Forks 

4.50 - 

14.16 

1983-2002 

4, 1 74,000 

13 

Kettle Valley 

6.92 - 

18.25 

1 989-2002 

3,061,000 

14 

South Okanagan 

4.50 - 

18.25 

1983-2002 

6, 507,760 

15 

Penticton 

4.625- 

17.51 

1983-2002 

8,870, 000 

16 

Keremeos 

5. 875- 

15.12 

1987-2002 

803,000 

17 

Princeton 

5.875- 

18.25 

1 987-2002 

6,147,000 

18 

Golden 

4.50 - 

18.25 

1983-2002 

2, 960,000 

19 

Revelstoke 

4.50 - 

18.25 

1 983-2002 

5,924,500 

21 

Armstrong- 






Spall umcheen 

4.50 - 

17.51 

1 983-2003 

5,602,000 

22 

Vernon 

4.75 - 

17.51 

1983-2002 

22,027,000 

23 

Central Okanagan 

4.625- 

18.25 

1983-2002 

57,928,000 

24 

Kamloops 

4.50 - 

18.25 

1983-2002 

48, 172,500 

26 

North Thompson 

5. 1 27- 

13.09 

1987-2000 

7,059,000 

27 

Car iboo-Chilcot in 

4.50 - 

18.25 

1983-2002 

29,593,500 

28 

Quesnel 

4.625- 

18.25 

1983-2003 

18,378,000 

29 

Lillooet 

4. 50 - 

13.69 

1983-2003 

2, 477,000 

30 

South Cariboo 

4.75 - 

13.09 

1983-2000 

5,867,700 

31 

Merritt 

4.50 - 

18.25 

1983-2002 

5,715,000 

32 

Hope 

4.50 - 

13.43 

1983-2002 

3,028,600 

33 

Chilliwack 

4. 50 - 

17.01 

1983-2002 

11,744, 500 

34 

Abbotsford 

4.75 - 

18.25 

1 983-2003 

38,947,900 

35 

Langley 

4. 50 - 

18.25 

1983-2002 

45, 146,000 

36 

Surrey 

4.50- 

18.25 

1983-2003 

69,057, 500 

37 

Delta 

4.50- 

18.25 

1 983-2002 

49,925,200 

38 

Richmond 

4.50 - 

18.25 

1 983-2002 

37,075, 100 

39 

Vancouver 

4.50 - 

18.25 

1983-2003 

60,305,000 

40 

New Westminster 

4.50 - 

16.53 

1983-2002 

8,237,000 


SCHEDULE 1 
AUTHORITY 


1982 

$13,958,000 

7.989.000 

3.602. 200 
4, 81 3, 800 

9. 136.000 

9.229. 200 

1 . 422.000 

3.820.400 

4.375.000 

2. 903. 000 
6,498,760 

9.278.000 

859,000 

5.761. 000 

3.097.000 

6. 1 73.000 

4.561. 000 

20.630.000 

58.065. 000 

46.704.000 

7.355.000 

28.340.000 

16.997.000 

2. 760.000 

6. 1 78.400 

5.933.000 
3,238,900 

1 1 , 762,000 
30,764,800 

40.772.000 

55.615.000 
50, 1 59,800 

34,706,400 

61 . 227.000 

8.056.000 


G 152 


PROVINCE OF BRITISH COLUMBIA 


SCHEDULE 1 
( continued ) 

BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 
AS AT 31 MARCH 1983 



School 

Interest 

Dates of 



No. 

District 

Rates % 

Maturity 

1983 

1982 

41 

Burnaby 

O 

m 

17.51 

1983-2002 

$21,1 26,500 

$23, 434, 

42 

Maple Ridge 

4.625- 

18.25 

1983-2002 

26,635,500 

22,483, 

43 

Coquitl am 

4.50- 

18.25 

1983-2003 

58, 1 66,000 

57,019, 

44 

North Vancouver 

4.50- 

13.46 

1 983-2000 

39,264,500 

42,560, 

45 

West Vancouver 

4.50- 

17.01 

1983-2002 

7,600,500 

8,986, 

46 

Sunshine Coast 

4.625- 

17.01 

1983-2002 

11,158,500 

9,254, 

47 

Powell River 

4.50- 

18.25 

1983-2003 

6,443, 1 00 

6, 1 60, 

48 

Howe Sound 

4.50 - 

17.00 

1983-2002 

9,795,200 

9,878, 

49 

Central Coast 

6.40 - 

15. 50 

1 988-2002 

2,671, 000 

2, 506, 

50 

Queen Charlotte 

5. 1 27- 

13.30 

1983-2001 

3,866,500 

3,815, 

52 

Prince Rupert 

4.625- 

17.01 

1 983-2003 

12,240,000 

9,630, 

54 

Smithers 

5. 127— 

18.25 

1983-2002 

12, 307,000 

12,280, 

55 

Burns Lake 

5.875- 

18.25 

1 987-2002 

7,384,000 

8,083, 

56 

Nechako 

4. 50 - 

18.25 

1983-2002 

13,634, 800 

13,334, 

57 

Prince George 

4.50 - 

17.51 

1983-2003 

84, 1 47,800 

83, 968, 

59 

Peace River South 

4.50 - 

18.25 

1983-2003 

1 1 , 1 43,000 

9,718, 

60 

Peace River North 

4. 50 - 

18.25 

1983-2002 

17,035,500 

14,914, 

61 

Greater Victoria 

4. 50 - 

17.51 

1983-2002 

43,578,000 

41,640, 

62 

Sooke 

4.50 - 

18.25 

1 983-2002 

16,654,800 

17,507, 

63 

Saanich 

4. 50 - 

15.54 

1983-2002 

15,589,700 

16,033, 

64 

Gulf Islands 

6.40 - 

15.38 

1 988-2002 

4,428,000 

4,174, 

65 

Cowichan 

4. 50 - 

18.25 

1983-2002 

14,421 , 000 

14, 709, 

66 

Lake Cowichan 

4.75 - 

13.30 

1 983-2002 

3,061, 000 

2,928, 

68 

Nanaimo 

4.50 - 

15. 54 

1983-2003 

34,828,000 

32,969, 

69 

Qual icum 

4.50 - 

18.25 

1983-2003 

16,923,000 

10,585, 

70 

Albern i 

4. 50 - 

16.10 

1 983-2003 

10,704,800 

1 1 , 355, 

71 

Courtenay 

4.50- 

18.25 

1983-2002 

13,110,400 

11,672, 

72 

Campbell River 

4. 50 - 

16.10 

1983-2002 

19,403,000 

15,624, 

75 

Mission 

6.25 - 

17.51 

1 987-2002 

1 1 , 573,200 

9,619, 

76 

Aggasi z -Harrison 

5. 25 - 

16.10 

1983-2002 

1 , 585,000 

1,140, 

77 

Summerl and 

6.25 - 

18.25 

1 987-2002 

3,053,000 

3,154, 

80 

Kit imat 

5.875- 

18.25 

1 987-2002 

6,978,000 

6,711, 

81 

Fort Nelson 

4.75- 

17.51 

1983-2002 

6,81 1,000 

5,506, 

84 

Vancouver Island 







West 

5. 127— 

18.25 

1 987-2003 

3,971, 000 

4,461, 

85 

Vancouver Island 







North 

4.50- 

18.25 

1983-2003 

16, 602,000 

13, 585, 


500 

500 

000 

000 

500 

000 

700 

400 

000 

000 

000 

000 

000 

200 

400 

000 

000 

000 

600 

400 

000 

000 

000 

000 

000 

200 

1 00 

000 

200 

000 

000 

000 

000 

000 

000 


PUBLIC ACCOUNTS 1982/83 


G 153 


SCHEDULE 1 
( continued ) 

BRITISH COLUMBIA SCHOOL DISTRICTS CAPITAL FINANCING AUTHORITY 
SCHEDULE OF LONG-TERM LOANS RECEIVABLE 
AS AT 31 MARCH 1983 



School 

Interest 

Dates of 



NO. 

District 

Rates % 

Maturity 

1983 

1982 

86 

Creston-Kaslo 

4.625-18.25 

1983-2003 

$ 11,509,000 

$ 6,504,000 

87 

St ikene 

5.875-17.00 

1 987-2003 

5, 716,000 

2,801, 000 

88 

Terrace 

4. 50 -18.25 

1983-2003 

24,802, 500 

24,641, 000 

89 

Shuswap 

4.50 -18.25 

1983-2002 

16,404,200 

15,777,400 

92 

Nisgha 

10.20 

1999 

500,000 

500,000 





$ 1 , 275, 708,760 

$1,1 98,362, 760 

Add: 







U.S. Exchange 



10, 100,971 

17,890,855 


Provision for 

recovery of exchange loss 




(note 7) 



619,290 

563,940 





$1 , 286,429,021 

$1,216,817,555 

Less 







Current portion of long-term 

loans 




receivable 



3, 834,750 

3, 825,750 


Instalments to 

sinking funds : 

receivable 




within one 

year 


35,071,681 

32,989,987 



Exhibit A 


$1 , 247,522,590 

$1,180,001,818 


G 154 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 


THORNE 

RIDDET.T. 

Chartered Accountants 



AUDITORS' REPORT 


To the Shareholder of 

British Columbia Steamship Company (1975) Ltd. 

We have examined the consolidated balance sheet of British 
Columbia Steamship Company (1975) Ltd. as at December 31, 1982 and 
the consolidated statements of income, deficit, and changes in 
financial position for the year then ended. Our examination was made 
in accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as we considered 
necessary in the circumstances. 

In our opinion, these consolidated financial statements 
present fairly the financial position of the company as at 
December 31, 1982 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 applied on a basis 
consistent with that of the preceding year. 


Chartered Accountants 


Victoria, Canada 
January 21, 1983 


Offices throughout Canada, International Firm Klynveld Main Goerdeler 


PUBLIC ACCOUNTS 1982/83 


G 155 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
(Incorporated under the laws of Canada) 

CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 1982 


ASSETS 


1982 


1981 


CURRENT ASSETS 
Cash 

Accounts receivable 
Inventories 
Prepaid expenses 


FIXED ASSETS (note 2) 

Vessel, equipment and leasehold improvements 
Less accumulated depreciation 


LIABILITIES 

CURRENT LIABILITIES 

Accounts payable and accrued liabilities 
Vessel lease payable (note 3) 

Demand debt and accrued interest payable (note 4) 


49,282 

69,610 

65,685 

62,806 


CAPITAL STOCK, CONTRIBUTED SURPLUS AND DEFICIT 


200,277 

84,784 

47,185 

36,100 


CAPITAL STOCK 

5 Common shares (note 5) 


CONTRIBUTED SURPLUS 
DEFICIT 


247,383 

368,346 

8,114,789 

7,935,448 

2,475,064 

2 ,000,179 

5,639,725 

5,935,269 

$ 5,887,108 

$ 6,303,615 

$ 264,266 

$ 330,560 

1,987,725 

1,987,725 

3,334,699 

2,742,896 

5,586,690 

5,061,181 

DEFICIT 


5 

5 

7,900,330 

7,900,330 

(7,599,917) 

(6,657,901) 

300,418 

1,242,434 

$ 5,887,108 

$ 6,303,615 


Commitments (note 6) 



Director 

Di rector 


G 156 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
CONSOLIDATED STATEMENT OF INCOME 
YEAR ENDED DECEMBER 31, 1982 


1982 1981 


Revenue 

Passengers 
On-board services 
Vehicles 
Other 


$ 4,983,397 
2,588,117 
424,330 
100,798 
8,096,642 


$ 4,925,078 
2,516,983 
385,302 
108,184 
7 ,935,547 


Operating expenses 
On-board services 
Cost of sales 
Operating expenses 

Ship operating expenses 
Deck 

Engine room 
Ship general 
Fuel 
Refit 

Seattle terminal 
Victoria terminal 

Income before non-operating expenses 


832,159 

776,938 

1 ,058,529 

971 ,487 

1,890,688 

1 ,748,425 

475,270 

438,490 

693,746 

640,185 

591,961 

504,780 

1,418,133 

1,517,410 

575,324 

219,086 

712,632 

644,293 

375,133 

397,719 

6,732 ,887 

6,110,388 

1 ,363,755 

1,825,159 


Administration 

Selling 

Commissions 

Income (loss) before interest and depreciation 


668,944 

604,246 

543,612 

481,585 

159 ,167 

143 ,016 

1 ,371 ,723 

1 ,228,847 

(7,968) 

596,312 


Interest 

Depreciation 


$ 942,016 $ 264,052 


459,163 397,984 
474,885 462,380 
934 ,048 860,364 


LOSS FOR THE YEAR 


PUBLIC ACCOUNTS 1982/83 


G 157 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
CONSOLIDATED STATEMENT OF DEFICIT 
YEAR ENDED DECEMBER 31, 1982 


DEFICIT AT BEGINNING OF YEAR 
Loss for the year 
DEFICIT AT END OF YEAR 


1982 

$ 6,657,901 
942,016 
$ 7,599,917 


CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION 
YEAR ENDED DECEMBER 31, 1982 


WORKING CAPITAL DERIVED FROM 
Operations 

Loss for the year 

Depreciation which does not involve 
working capital 

Grant from shareholder 

Proceeds from sale of fixed assets 


WORKING CAPITAL APPLIED TO 
Operations 

Loss for the year 
Less depreciation 

Additions to fixed assets 

INCREASE (DECREASE) IN WORKING CAPITAL DEFICIENCY 

WORKING CAPITAL DEFICIENCY AT BEGINNING. OF YEAR 

WORKING CAPITAL DEFICIENCY AT END OF YEAR 


1982 


$ 


5,000 
5 ,000 


942,016 
474,885 
467 ,131 
184,341 

651 .472 

646.472 

4,692,835 


$ 5,339,307 


1981 

$ 6,393,849 
264,052 
$ 6,657,901 


1981 

$ (264,052) 

462,380 

198,328 

7,700,000 

7 ,898,328 


5,417,142 
5,417 ,142 
(2,481,186) 

7,174,021 

$ 4,692,835 


6 


G 158 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
YEAR ENDED DECEMBER 31, 1982 


1. ACCOUNTING POLICIES 

(a) Principles of consolidation 

The consolidated financial statements include the accounts of the company 
and its wholly-owned subsidiary, British Columbia Steamship Company Inc. 

(b) Inventories 

Inventories are valued at lower of cost and net realizable value. 

(c) Fixed assets 

Fixed assets are stated at cost less accumulated depreciation. The cost 
of 1981 major refurbishing of the vessel, "Princess Marguerite”, was 
capitalized and is being depreciated on the straight-line basis over 
fifteen years. The original cost of the vessel had previously been 
depreciated to its 1979 scrap value. The leasehold improvements are 
depreciated on the straight-line basis over terms which range from five 
to ten years. Other fixed assets are depreciated on the diminishing 
balance method at the annual rates indicated in note 2. 

(d) Refit 

The company carries out an annual refit of the vessel in the off-season. 
These annual refit costs are an expense in the year incurred. 

(e) Translation of foreign currency 

(i) Current assets and current liabilities are translated into Cana- 
dian dollars at rates of exchange in effect at the year end. 

(ii) Fixed assets are translated into Canadian dollars at average rates 
of exchange prevailing in the year in which assets were acquired, 

(iii) Revenues and expenses are translated into Canadian dollars at the 
average rate of exchange for the year, with the exception of de- 
preciation which reflects historic rates used for the related 
assets . 


PUBLIC ACCOUNTS 1982/83 


G 159 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 


YEAR 

ENDED DECEMBER 

. 31, 1982 



FIXED ASSETS 







1982 


1981 



Accumulated 



Rate 

Cost 

depreciation 

Net 

Net 

Vessel - T.E.V. 





"Princess Marguerite" 

$6,924,996 

$1,776,405 

$5,148,591 

$5,379,337 

Automotive equipment 30% 

15,764 

14,295 

1,469 

2,099 

Furniture and 





fixtures on shore 20% 

17,640 

12,249 

5,391 

5,929 

Radio equipment 25% 

29,079 

25,078 

4,001 

5,335 

Vessel equipment 20% 

483,452 

326,148 

157,304 

156,970 

Tools 100% 

2,924 

2,924 



Cutlery, china and 





linen 100% 

16,004 

16,004 



Leasehold improvements 





- Victoria 

104,977 

34,726 

70,251 

80,065 

Leasehold improvements 





- Seattle 

519,953 

267 ,235 

252,718 

305,534 


$8,114,789 

$2,475,064 

$5,639,725 

$5,935,269 

The "Princess Marguerite" is shown as 

an asset of 

the company even though 

title rests with Her Majesty the Queer 

i in Right of 

the Province 

of British 

Columbia . 





VESSEL LEASE PAYABLE 





$1,987 ,725 is payable to t hi 

e British Columbia Ferry Corporation, a 

Crown Cor- 

poration, for the lease and 

other related 

costs of the 

motor vessel 

"Victoria 

Princess", used during the 

1980 operating 

season . 



DEMAND DEBT AND ACCRUED INTEREST PAYABLE 







1982 

1981 

Demand debt 



$3,200,000 

$2,600,000 

Accrued interest 



134 ,699 

142,896 




$3,334,699 

$2,742,896 


The demand debt is payable to the shareholder, the Province of British 
Columbia * 


G 160 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
YEAR ENDED DECEMBER 31, 1982 


5 . CAPITAL STOCK 

The company is limited by its articles to issuing a maximum of 55,000 common 
shares . 


6. COMMITMENTS 

The company rents the terminal facilities in Seattle under a long term lease 
which expires in 1987, the annual rental for which is $104,285 U. S. funds. 

The rental expense under this lease in the current period is $126,951 Canadian 
funds . 

The company rents the terminal facilities in Victoria under long term leases 
which expire in 1991 and 1994, the annual rental for which is $24,560. 


PUBLIC ACCOUNTS 1982/83 


G 161 


BRITISH 


Catering services 
Revenue 

Cost of sales 
Operating expenses 
Income 


Lounges 

Revenue 

Cost of sales 
Operating expenses 
Income 


Newsstands 

Revenue 

Cost of sales 
Operating expenses 
Income 


Duty-free shop 
Revenue 

Cost of sales 
Operating expenses 
Income 


Davroons 

Revenue 

Operating expenses 
Income 


TOTAL ON-BOARD SERVICES 
Revenue 

Cost of sales 
Operating expenses 

Income 


COLUMBIA STEAMSHIP COMPANY (1975) LTD. 
SCHEDULE OF ON-BOARD SERVICES 
YEAR ENDED DECEMBER 31, 1982 


1982 

1981 

$ 1,315,316 

$ 1,322,279 

401,603 

659,322 

385,334 

613,775 

254,391 

323 ,170 

446,461 

414,156 

63,607 
245 ,388 

59,123 
189 ,165 

137,466 

165,868 

350,115 

295,216 

200,240 

45,195 

163,435 

34,828 

104,680 

96,953 

328,199 

318,783 

166,709 

52,571 

108,919 

169,046 

52,173 

97,564 

148,026 

56,053 

91 ,973 

166,549 
81 ,546 
85,003 

2,588,117 

2,516,983 

832,159 

1,058,529 

776,938 
971 ,487 

$ 697,429 

$ 768,558 



























































PUBLIC ACCOUNTS 1982/83 


G 163 


BRITISH COLUMBIA SYSTEMS CORPORATION 


Auditors' Report 


British Columbia Systems Corporation (Incorporated as a Crown Corporation under the System Act R.S.B.C. 1979) 


The Honourable Hugh A. Curtis, 

Minister of Finance, 

Province of British Columbia: 


We have examined the balance 
sheet of British Columbia Systems 
Corporation as at March 31, 1 983 
and the statements of income and 
retained earnings, and changes in 
financial position for the year then 
ended. Our examination was made 
in accordance with generally 
accepted auditing standards, and 
accordingly included such tests and 
other procedures as we considered 
necessary in the circumstances. 

In our opinion, these financial 
statements present fairly the 
financial position of the Corporation 
as at March 31,1 983 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 applied, except for the 


change in the method of 
depreciating certain computer 
equipment as explained in note 9 to 
the financial statements, on a basis 
consistent with that of the preceding 
year. 

Victoria, Canada. 

May 25, 1983. 



Chartered Accountants 


13 


G 164 


PROVINCE OF BRITISH COLUMBIA 


Balance Sheet March 31, 1983 (000's) 


British Columbia Systems Corporation (Incorporated as a Crown Corporation under the System Act R.S.B.C. 1979) 


Assets 



1983 

1982 

Current: 

Cash 

$ 1,985 

$ 546 

Accounts receivable 

15,632 

14,042 

Prepaid expenses 

625 

568 

Total current assets 

18,242 

15,156 

Funds held for new facility (note 3): 

Cash 

1,643 

2,338 

Short-term investments 

7,559 

18,000 

Interest receivable 

71 



9,273 

20,338 

Fixed, at cost: 

Land (note 3) 

6,847 

5,918 

Building under construction (note 3) 

28,361 

5,825 

Computer and ancilliary 

equipment (notes 4 and 9) 

19,123 

17,400 

Furniture and fixtures 

2,308 

2,354 

Leasehold improvements 

144 

3,295 


56,783 

34,792 

Less accumulated depreciation 

and amortization (notes 4 and 9) 

4,198 

8,079 

Net fixed assets 

52,585 

26,713 


Other: 

Deferred foreign exchange translation 
loss (note 7) 70 

$80,170 $62,207 


Approved by the Directors: 


Director 


(see accompanying notes) 




14 


PUBLIC ACCOUNTS 1982/83 


G 165 


Liabilities 



1983 

1982 

Current: 

Bank loan 


$ 8,902 

Note payable (note 6) 

$ 2,687 


Accounts payable and accrued charges 

9,293 

9,574 

Deferred revenue 

1,507 

1,063 

Accural for major conversion project 

Net income for the year (note 8): 

Transferred to the Province 


529 

of British Columbia 

Subject to transfer to the Province 


2,676 

of British Columbia 

Current portion of long-term debt (note 7): 

2© 


Lease capitalization 

2,029 

3,011 

New facility 

579 

579 

Iota 5 current liabilities 

16,115 

26,334 

Other 

New facility accounts payable 

6,507 

2,651 

Non-current deferred revenue 

32 

1,137 


6,539 

3,788 

Long-term debt (note 7): 

Lease capitalization 

8,132 

3,767 

New facility 

39,384 

28,318 

Note payable 

10,000 



57,516 

32,085 

$80,170 

$62,207 


15 


G 166 


PROVINCE OF BRITISH COLUMBIA 


Statement of Income and Retained Earnings 


British Columbia Systems Corporation (Incorporated as a Crown Corporation under the System Act R.S.B.C. 1979) 

For the Year Ended March 31 , 1 983 
(000's) 


1983 

1982 

Revenue: 

Processing 

$31,142 

$27,747 

System design and programming 

19,050 

19,799 

Equipment rental 

9,879 

7,484 

Direct expenses recovered from clients 

4,334 

1,411 

Interest and other income 

579 

1,487 

Total revenue 

64,984 

57,928 

Expenses: 

Employee 

22,716 

22,017 

Equipment rental and maintenance 

19,503 

12,252 

Services purchased for clients 

9,851 

11,011 

Administrative and general 

8,151 

5,908 

Depreciation and amortization (notes 4 and 9) 

3,636 

4,146 

Interest on long-term debt 

Provision for major conversion project 

1,107 

628 

(710) 

Total expenses 

64,964 

55,252 

Net income for the year 

20 

2,676 

Retained earnings, beginning of the year 

NIL 

NIL 

Net income subject to transfer to the 

Province of British Columbia pursuant 

to Section 8(5) of the System Act (note 8) 

20 

2,676 


Retained earnings, end of the year 


NIL 


NIL 


(see accompanying notes) 


16 


PUBLIC ACCOUNTS 1982/83 


G 167 


Statement of Changes in Financial Position 


British Columbia Systems Corporation (Incorporated as a Crown Corporation under the System Act R.S.B.C. 1 979) 


For the Year Ended March 31 , 1 983 

(000's) 

1 983 1982 

Source of working capital: 

Operations - 
Net income for the year 
Add items not affecting working capital: 

Depreciation and amortization 

Deferred foreign exchange 
translation loss 

Total from operations 

Drawdown of funds held for new facility 
less related amounts payable 
Increase in non-current deferred revenue 
Additions to long-term debt 
(net of current portion) 

Proceeds on disposition of equipment 
Effect on working capital of discontinuance 
of capitalized leases 

Total source of working capital 

Application of working capital: 

Reduction of non-current deferred revenue: 

Investment of funds held for new facility 
less related accounts payable 
Additions to fixed assets 
Long-term debt reductions 
Certificate redemption 
Net income subject to transfer to the 
general revenue of the Province of 


British Columbia (note 8) 

20 

2,676 

Total application of working capital 

37,919 

55,524 

Increase (decrease) in working capital 

13,305 

(13,066) 

Working capital (deficiency), beginning 
of the year 

(11,178) 

1,888 

Working capital (deficiency), 
end of the year 

$ 2,127 

$(11,178) 


(see accompanying notes) 


$20 $ 2,676 

3,636 4,146 

18 

3,674 6,822 

14,921 

1,137 

29,715 34,168 

2,340 331 

574 

51,224 42,458 

1,105 

1 7,687 

35,918 19,599 

876 5,562 

1 0,000 


17 


G 168 


PROVINCE OF BRITISH COLUMBIA 


Notes to the Financial Statements March 31, 1983 


British Columbia Systems Corporation 


(Incorporated as a Crown Corporation under the System Act R.S.B.C. 1979) 


1. The Corporation 

The British Columbia Systems Corporation is incorporatead as a Crown 
Corporation of the Province of British Columbia under the System Act R.S.B.C. 
1979. 

The purpose of the Corporation is to establish and implement such policies as it 
considers appropriate for the consolidation and rationalization of data 
processing services provided for government entities. To achieve this purpose, 
the Corporation: 

a) provides data processing and related services required for governmental 
purposes; 

b) recommends and implements data processing standards, practices, policies 
and technical guidelines to facilitate a progressive improvement of 
information systems required by government entities; and, 

c) subject to approval of the Lieutenant-Governor in Council, sets rates for the 
use of data processing products and services provided to its users. 

In 1 983 the Corporation received 87% of its revenues from Provincial 
Government Ministries with the balance from other Government entities. 


2. Signficant accounting policies 

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. Significant accounting policies followed in the preparation of these 
financial statements are: 


a) Fixed assets: 

The Corporation leases most 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 4 and 7, the 
leases have been capitalized. 

The costs of fixed assets are depreciated and amortized over their estimated 
useful lives as follows: 


Computer mainframes 

Other computer and 
ancillary equipment 

Furniture and fixtures 
Leasehold improvements 


— over the terms of the leases 

(4 to 5 years) on an annuity basis 

— over periods ranging up to five years, 

on a straight-line basis 

— over ten years, on a straight-line basis 

— over terms of leases, on a straight-line 

basis 


b) Revenue recognition: 

Revenue is recognized in the accounts as the services are performed. 

c) Expense recognition: 

All purchases with the exception of fixed assets and prepaids are expensed 
in the accounts as incurred. 


PUBLIC ACCOUNTS 1982/83 


G 169 


d) Development costs: 

Development costs are expensed in the accounts as incurred. 

e) Income taxes: 

The Corporation is exempt from Federal and Provincial income taxes. 

f) Interest: 

The interest on funds borrowed for the new facility (land and building) which 
is under construction is added to the cost of these assets and interest income 
from the related temporary investments is deducted from the costs thereof. 
This capitalization will cease upon completion of construction in May 1 983. 
The interest on general borrowings for other uses is expensed in the period 
to which it relates. 

g) Sinking funds: 

Payments made to sinking funds with respect to retirement provisions of the 
sinking fund debentures will be carried until such time as the debentures are 
redeemed. Interest earned on the sinking funds is recorded as income. 

h) Foreign currency translation: 

Debt due in foreign currency is translated to Canadian dollars at the 
exchange rate prevailing at year end. Any gain or loss on translation is 
deferred and amortized over the remaining term of the debt, including the 
current year. 

3. New facility 

The Corporation's new facility, located at 4000 Seymour Place in the District of 
Saanich, is nearing completion at March 31 , 1 983 at an approximate total cost 
including land, design, construction and interest of $37,200,000. 

Financing for the new facility has been arranged as detailed in note 7(b). 
Proceeds from the funds borrowed are held separately or are invested in 
short-term deposits to be drawn down against expenditures. 

4. Capitalization of leases 

Included in fixed assets is computer equipment recorded at a cost of 
$1 0,056,000 (1982 - $8,078,000) arising from the capitalization of certain 
leases. The related accumulated amortization amounts to $1 77,000 (1982 - 
$1,701,000). 

5. Borrowing authority 

Pursuant to section 8(6) of the System Act, the Corporation may be advanced or 
borrow up to $65,000,000. In computing that amount the aggregate net rentals 
payable by the Corporation under leases for personal property for a term 
exceeding one year shall be excluded. 

6. Note payable 

The Corporation arranged a $2,687,000 short-term loan with the Ministry of 
Finance through the issuance of a note payable Series SC-A at an interest rate 
of 9.65%. This financing was required for the purchase of certain computer 
ancillary equipment and is due for repayment on May 30, 1 983. 


19 


G 170 


PROVINCE OF BRITISH COLUMBIA 


7. Long-term debt 

a) Lease capitalization: 

The minimum annual contractual obligations with respect to capitalized 
leases are as follows: 


1984 

1985 

1986 

1987 

1988 


$ 3,042,000 

2.747.000 

2.746.000 

2.742.000 

1 .734.000 


13,011,000 

Less imputed annual interest 
at an average rate of 1 2% 

per annum 2,850,000 


Capitalized lease obligations 1 0,1 61 ,000 

Less current portion 2,029,000 


Long-term portion 


$ 8,132,000 


b) New facility: 

The Corporation, assisted by the Ministry of Finance in its capacity as Fiscal 
Agent, entered into the following arrangements to finance the new facility: 



Interest 

Rate 

Maturity 

Date 

Amount 

Sinking fund debentures: 

Canada Pension Plan 
— Series 1 

15.69% 

2002 

$14,007,000 

Canada Pension Plan 
— Series 2 

16.10% 

2002 

12,500,000 

Private placement debt for 

U.S. $11,400,000, repayable 
in U.S. dollars (see below) 

1 6.88% 

1986 

14,067,000 


Less sinking funds accumulated 

Less current portion 
Long-term portion 


40.574.000 
611,000 

39.963.000 
579,000 

39.384.000 


The Corporation is required to establish sinking funds with the Ministry of 
Finance, in such amounts as shall be sufficient to retire the Canada Pension 
Plan debentures at maturity. 


20 


PUBLIC ACCOUNTS 1982/83 


G 171 


7. Long-term debt (continued) 

The foreign exchange loss on translation of the U.S. dollar debt to Canadian 
dollars amounted to $88,000 (1 982 - Nil) of which $1 8,000 (1 982 - Nil) has 
been amortized in the current year. 

Principal repayments required are as follows: 


Sinking fund 

payments U.S. debt Total 


1984 

$ 579,000 


$ 579,000 

1985 

579,000 


579,000 

1986 

579,000 

$14,067,000 

14,646,000 

1987 

579,000 


579,000 

1988 

579,000 


579,000 

Thereafter 

23,001,000 


23,001,000 


$25,896,000 

$14,067,000 

$39,963,000 


c) Note payable: 

The Corporation entered into the following financing arrangements with 
Victoria and Grey Trust Company: 

Maturity 

Note Interest rate date Amount 


BCSC-1 0.75% less than average 1987 $10,000,000 

bank prime; 
calculated quarterly 

The Province of British Columbia has unconditionally guaranteed the payment 
of principal and interest on all long-term debt issued by the Corporation. 

8. Net income 

Pursuant to Section 8(5) of the System Act, amended May 1 3, 1 982, the 
Lieutenant-Governor in Council may, each fiscal year, on the recommendation 
of the Minister of Finance, direct the transfer to the government of all or part of 
the net income for the current year or for previous years to the extent not 
previously so transferred. 

9. Changes in accounting policies 

During the year, the Corporation re-evaluated its policies for depreciation of 
computer and ancillary equipment. As a result, the changes detailed below 
were made. Since by statute, the Corporation had no retained earnings, the 
cumulative effects of these adjustments are reflected in the current year's 
results. 

a) Computer mainframes 

The method of depreciating computer mainframes was changed from the 
straight-line method to the annuity method. The effect of this change is to 
increase net income for the year by $30,000. 


21 


G 172 


PROVINCE OF BRITISH COLUMBIA 


b) Other computer and ancillary equipment 

Due to rapid changes in technology, the estimated useful lives of certain 
other computer and ancillary equipment were shortened to three years from 
five years. This change ensures that accumulated depreciation at March 31 , 

1 983 for each item reflects its remaining useful life. The effect of the change 
is a reduction of net income for the year of $695,000, being $1 88,000 of 
additional depreciation for the current year and $507,000 of additional 
depreciation for prior years. 

10. Commitments 

The Corporation leases some of its premises and computer equipment for 
periods of up to five years. 

The minimum annual contractual obligations of non-cancellable leases are as 
follows (excluding amounts relating to capitalized leases): 

1 984 — $7,876,000 

1985 — $5,001,000 

1986 — $3,548,000 

1987 — $577,000 

1988 — $21,000 

1 1 . Pension and superannuation pians 

Until the Corporation establishes a pension or superannuation plan, the Public 
Service Superannuation Act applies to the Corporation and its officers and 
employees. The Corporation is obliged to pay into the Public Service 
Superannuation Fund amounts equal to employees' contributions required 
under the Public Service Superannuation Act. 

12. Comparative figures 

Certain comparative figures have been reclassified to conform to the method of 
presentation adopted in 1983. 


22 


PUBLIC ACCOUNTS 1982/83 


G 173 


BRITISH COLUMBIA TRANSIT 


THORNE 

RIDDELL 

Chartered Accountants 



AUDITORS' REPORT 


To the Members of the Board of 
British Columbia Transit 

We have examined the balance sheet of British Columbia 
Transit as at March 31, 1983 and the statements of operating division 
revenue and expenditure, asset division revenue and expenditure and 
retained earnings (deficit), asset division contributed surplus and 
special purpose fund revenue and expenditure and fund balance for the 
year then ended. Our examination was made in accordance with 
generally accepted auditing standards, and accordingly included such 
tests and other procedures as we considered necessary in the 
circumstances . 

In our opinion, these financial statements present fairly 
the financial position of the British Columbia Transit as at March 31, 
1983 and the results of its operations for the year then ended in 
accordance with generally accepted accounting principles applied on a 
basis consistent with that of the preceding year. 



Chartered Accountants 


Victoria, Canada 
June 3, 1983 


Offices throughout Canada, International Firm Klynveld Main Goerdeler 


CURRENT ASSETS CURRENT LIABILITIES 

Accounts receivable Accounts payable and accrued liabilities 


PROVINCE OF BRITISH COLUMBIA 


G 174 



SPECIAL PURPOSE FUN!) 


PUBLIC ACCOUNTS 1982/83 


G 175 


BRITISH COLUMBIA TRANSIT 
OPERATING DIVISION 
STATEMENT OF REVENUE AND EXPENDITURE 
YEAR ENDED MARCH 31, 1983 


Revenue 

Contributions from the Province of British Columbia 

1983 

($000) 

1982 

($000) 

Transit 

Research and demonstration projects and 

$ 76,584 

$ 79,052 

special services 

Contributions from municipalities 

22 

80 

Transit 

29,452 

25,138 

Research and demonstration projects 

45 

27 

Transit operations 

69,227 

57,772 

Interest earned 

37 

188 


175,367 162,257 


Expenditures 



Transit operations 



Operating and maintenance 

159,179 

142,831 

Vehicle lease fees 

3,364 

5,358 

Property lease fees 

2,271 

4,364 

Interest and financing charges 

1,847 

2,532 

Municipal administration 

2,976 

1,762 

Merchandising 

1,239 

1,289 

Other 

49 

294 


170,925 158,430 


Authority administration 

Salaries and employee benefits 

2,676 

2,127 

Office operations 

756 

677 

Professional fees 

273 

273 

Travel 

281 

291 

Marketing 

125 

133 

Personnel 

37 

95 

Directors' fees and expenses 

62 

52 

Depreciation 

69 

46 

Sundry 

96 

26 


4,375 

3,720 


Research and demonstration projects 

67 

107 


175,367 

162,257 


NET REVENUE 


$ 


$ 


G 176 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA TRANSIT 
ASSET DIVISION 

STATEMENT OF REVENUE AND EXPENDITURE AND RETAINED EARNINGS (DEFICIT) 
YEAR ENDED MARCH 31, 1983 



1983 


1982 


($000) 


($000) 

Revenue 




Vehicle lease fees 

$ 3,365 

$ 

5,358 

Other lease revenue 

2,468 


4,442 

Financing charges - operating division 

1,847 


2,532 

Interest earned 

1,557 


1,231 

Other 

11 


18 


9,248 


13,581 

Expenditures 




Depreciation 

6,369 


5,755 

Interest 

1,847 


2,603 

Property taxes and other property expenses 

1,794 


1,697 

Interest on obligations under capital leases 

1,506 


679 

Property leases 

709 


631 

Vehicle repairs 

31 


126 

Financing fees 

83 



Insurance 

51 



Vehicle leases 



28 

Other 

59 


36 


12,449 


11,555 

Revenue (expenditure) before extraordinary item 

(3,201) 


2,026 

Extraordinary item 




Parts inventory transferred to Metro 




Transit Operating Company 

800 



NET REVENUE (EXPENDITURE) FOR THE YEAR 

(4,001) 


2,026 

RETAINED EARNINGS AT BEGINNING OF YEAR 

3,411 


1,385 

RETAINED EARNINGS (DEFICIT) AT END OF YEAR 

$ (590) 

$ 

3,411 


PUBLIC ACCOUNTS 1982/83 


G 177 


BRITISH COLUMBIA TRANSIT 
ASSET DIVISION 

STATEMENT OF CONTRIBUTED SURPLUS 
YEAR ENDED MARCH 31, 1983 


1983 

($ 000 ) 


BALANCE AT BEGINNING OF YEAR $ 183,031 

Appraised value of land improvements and buildings 
transferred from British Columbia Hydro & Power 

Authority 13,910 

Appraised value of land, land improvements, buildings 
and equipment transferred from the Province of 
British Columbia 

Grant from the Province of British Columbia, being 
equal to interest on the $55,000,000 loan payable 

to the Province 7,720 

Grant received from the Government of Canada 
with respect to the acquisition of the 
advanced light rapid transit project 


1982 

($ 000 ) 


$ 97,659 


1,913 


23,459 


60,000 


BALANCE AT END OF YEAR 


$ 204,661 $ 183,031 


G 178 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA TRANSIT 
SPECIAL PURPOSE FUND 

STATEMENT OF REVENUE AND EXPENDITURE AND FUND BALANCE 
YEAR ENDED MARCH 31, 1983 


1983 1982 

($ 000 ) ($ 000 ) 


Revenue 

Interest 


$ 50 $ 225 


Expenditures 

Consulting 29 743 

Recruitment 231 30 

Computer 10 92 

Office supplies 8 

Legal 46 

Other 17 17 

287 936 

EXCESS OF EXPENDITURE OVER REVENUE 237 711 


FUND BALANCE 

AT 

BEGINNING OF 

YEAR 

866 

629 


1,577 

866 

Funds repaid 

to 

the Province 

of British Columbia 

400 



FUND BALANCE 

AT 

END OF YEAR 


$ 229 

$ 

866 


PUBLIC ACCOUNTS 1982/83 


G 179 


BRITISH COLUMBIA TRANSIT 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED MARCH 31, 1983 


1. STATUS OF THE AUTHORITY 

The Urban Transit Authority of British Columbia was created by the Province of 
British Columbia on June 29, 1978 under the Urban Transit Authority Act. The 
majority of the sections of the Act were brought into force by Proclamation on 
July 20, 1978. During 1982 the title of the Act and the name of the Authority 
were changed to the British Columbia Transit Act and British Columbia Transit 
respectively. 


2. ACCOUNTING POLICIES 

(a) Operating division 

The operating division consists of those assets, liabilities, revenues 
and expenditures which relate to the provision of transit services and 
the administrative activities of the Authority, the deficits of which 
are fully cost-shareable between the participating municipalities and 
the Province of British Columbia in accordance with the provisions of 
the British Columbia Transit Act and the related regulations. The 
vehicle and property lease fees expensed in the operating division are 
those charged by the asset division for the lease of assets used in 
transit operations. 

(b) Asset division 

The asset division consists of those assets, liabilities, revenues and 
expenditures which relate to the revenue equipment and other physical 
assets owned by the Authority and leased to its contract operators for 
use in the provision of transit services. 


G 180 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA TRANSIT 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED MARCH 31, 1983 


2. ACCOUNTING POLICIES (continued) 


(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 appraised value. This appraisal for revenue 
vehicles was carried out by General Appraisal of Canada Limited as 
at June 30, 1979. 

(ii) Revenue vehicles acquired from British Columbia Hydro & Power 

Authority pursuant to the Metro Transit Operating Company Act at 
appraised value. This appraisal was carried out by General 
Appraisal of Canada Limited as at March 1, 1980. 

(iii) Seabuses, the South Shore and North Shore Seabus Terminals, 
acquired from the Province of British Columbia, at appraised 
value. The appraisal of the seabuses and the South Shore Seabus 
Terminal was carried out by General Appraisal of Canada Limited as 
at July 15, 1980. The appraisal of the North Shore Seabus Terminal 
land was carried out by General Appraisal of Canada Limited as at 
April 1, 1981 and of the buildings and improvements as at June 30, 
1981. 


(iv) Land, land improvements, buildings and equipment acquired from 
British Columbia Hydro & Power Authority pursuant to the Metro 
Transit Operating Company Act, at appraised value. The appraisals 
were carried out by General Appraisal of Canada Limited as at the 
following dates: 

Transit Administration Centre - SW Marine Drive - June 9, 1980 
North Shore Bus Garage - land - April 1, 1981 

North Shore Bus Garage - buildings 

and improvements - June 30, 1981 

Gilmore property - land - March 15, 1982 

Gilmore property - buildings and improvements - May 15, 1982 

Edmonds bus loop - land - April 1, 1982 

Other land - April 1, 1980 

Other buildings and land improvements - March 1, 1981 

All appraisals are fair market value appraisals with the exception 
of that used for other buildings and improvements which are 
appraised at depreciated replacement cost. 

(v) All costs related to the advanced light rapid transit (ALRT) and 
commuter rail projects have been capitalized including interest 
expense as indicated in note 2(d). Interest earned on funds 
received from the Federal and Provincial Governments has been 
credited to the ALRT project. No depreciation has been claimed on 
these projects. 

(vi) All other fixed assets at cost, including capitalized interest as 
indicated in note 2(d). 


PUBLIC ACCOUNTS 1982/83 


G 181 


BRITISH COLUMBIA TRANSIT 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED MARCH 31, 1983 


2. ACCOUNTING POLICIES (continued) 

(c) Fixed assets (continued) 

Depreciation is provided on the straight-line basis using the following 
annual rates: 


Furniture and equipment 


10% 


Leasehold improvements 


20% 


Revenue vehicles 




Diesel 


5% 


Appraised revenue vehicles 

Remaining 

useful 

life 

Vehicles under capital leases 

Remaining 

lease i 

term 

Buildings 

Remaining 

useful 

life 

Land improvements 

Remaining 

useful 

life 

Equipment 

Remaining 

useful 

life 


(d) Capitalization of interest 

The Authority follows the policy of capitalizing interest incurred in 
connection with capital acquisitions from the date of advance of funds 
until the assets are placed in service for transit purposes. During the 
year, interest on long term debt of $13,808,000 and interest on 
obligations under capital leases of $930,000 was capitalized. 

(e) Government assistance 

Government assistance received with respect to the advanced light rapid 
transit project has been credited to contributed surplus and will be 
credited to the project upon completion of construction and commencement 
of revenue service. To March 31, 1983 the amounts of grants received 
from the Province of British Columbia and the Federal Government total 
$67,720,000. 


3. FIXED ASSETS 


Furniture and equipment 
Leasehold improvements 


1983 


Carrying Accumulated 
value depreciation 
($ 000 ) 


($ 000 ) 

$ 402 $ 

141 


84 

49 


Net 

($ 000 ) 


318 

92 


543 $ 


133 


U0 


1982 


Net 

($ 000 ) 


241 

54 


295 


G 182 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA TRANSIT 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED MARCH 31, 1983 


4. 


LAND, BUILDINGS AND EQUIPMENT 



1983 



1982 


Carrying 

Accumulated 





value 

depreciation 


Net 

Net 


($000) 


($000) 


($000) 

($000) 

Land 

$ 46,314 

$ 


$ 

46,314 

$ 36,567 

Land improvements 

4,653 


413 


4,240 

4,010 

Buildings 

50,567 


3,248 


47,319 

42,990 

Revenue vehicles 

Revenue vehicles under 

74,476 


11,741 


62,735 

44,202 

capital leases 

36,609 


1,235 


35,374 

8,536 

Equipment 

520 


101 


419 

370 

Projects in progress 

1,426 




1,426 

152 


214,565 


16,738 


197,827 

136,827 

Deposit on revenue vehicles 






20,417 


$ 214,565 

$ 

16,738 

$ 

197,827 

$ 157,244 


5. ADVANCED LIGHT RAPID TRANSIT 

1983 1982 

($ 000 ) ($ 000 ) 

Prime contract (Metro Canada Limited) 


Fixed price 

$ 

34,208 

$ 

24,549 

Cost reimbursable 


51,296 


9,736 

Construction 


23,894 



Other 


3,326 


3,056 



112,724 


37,341 

Properties and right-of-ways 


30,956 


292 

Project management and architectural design 


13,674 


2,270 



157,354 


39,903 

Net interest expense (income) 


1,365 


(52) 


$ 

158,719 

$ 

39,851 


PUBLIC ACCOUNTS 1982/83 


G 183 


BRITISH COLUMBIA TRANSIT 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED MARCH 31, 1983 


6. OBLIGATIONS UNDER CAPITAL LEASES 

The total obligation under capital leases is $35,641,000 of which $1,239,000 is 
the principal due within one year. 

The obligations under capital leases which mature at various dates from 1993 to 
2001, represent the total present value of future minimum lease payments 
discounted at the interest rates implicit in the leases at the commencement of 
lease term. These rates range from 7 1/2% to 18%. 

Total minimum lease payments for each of the next five years will be approxi- 
mately $4,900,000 or a total of $24,500,000. Of these payments approximately 
$17,000,000 will constitute interest. 


7. LONG TERM DEBT 


Prime less .75% loan payable, Province of 
British Columbia, interest to be waived 
as a grant from the Province, principal due 
on commencement of revenue service of the 
advanced light rapid transit system 
Prime less .75% loan payable, interest payable 
monthly, principal due August 13, 1985 
15.54% Debenture, interest payable semi-annually, 
sinking fund installments of $378,127 payable 
annually, due September 10, 2002 


1983 1982 

($ 000 ) ($ 000 ) 


$ 55,000 $ 55,000 

20,000 

17,304 

$ 92,304 $ 55,000 


The loans of $20,000,000 and $17,304,000 are secured by guarantee of the 
Province of British Columbia. 


G 184 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA 
NOTES TO FINANCIAL 
YEAR ENDED MARCH 


TRANSIT 
STATEMENTS 
31, 1983 


8 . COMMITMENTS 

Effective March 31, 1981 the Authority entered into an agreement with Metro 
Canada Limited for the design and construction of an advanced light rapid 
transit system for operation in the Greater Vancouver region. As at March 31, 
1983 the approved estimate of the total contract price was approximately 
$534,500,000 and the total approved price of the project, including design, 
construction and land acquisition, was approximately $729,000,000, of which 
$157,354,000 has been incurred to March 31, 1983. 

At March 31, 1983 there were a number of outstanding matters to be reflected in 
the estimated total project price including sales tax, scope changes and certain 
pending change orders. The amount of these items was being re-estimated at 
March 31, 1983. 

At March 31, 1983 the Authority was committed to purchase 159 revenue vehicles 
for approximately $23,000,000. 


9. CONTINGENT LIABILITY 

During 1982 the Authority received $60,000,000 from the Government of Canada 
to be applied to the advanced light rapid transit project. The Authority is 
contingently liable for repayment of some or all of the funds in the event of 
non-compliance with certain provisions of an agreement dated February 26, 1982. 


10. UNRESOLVED MATTER 

Although required under the regulations to the British Columbia Transit Act, no 
lease fees have been charged by the asset division to the operating division for 
vehicles and properties acquired for nominal value from British Columbia Hydro 
and Power Authority and the Province of British Columbia. An amendment to the 
regulations is anticipated, retroactive to April 1, 1982, eliminating the 
obligation of the Authority to charge these lease fees. The amount of lease 
fees not charged is approximately $5,500,000 which, if charged, would have been 
cost-shared between the Province of British Columbia and the participating 
municipalities . 


11. SPECIAL PURPOSE FUND 

On March 31, 1980 the Authority received $2,050,000 from the Province of British 
Columbia for the purpose of funding the start-up costs of the Metro Transit 
Operating Company. The portion of these funds not expended for this purpose is 
repayable to the Province of British Columbia. 


PUBLIC ACCOUNTS 1982/83 


G 185 


CRESTON VALLEY WILDLIFE MANAGEMENT AUTHORITY TRUST FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Members of the Creston Valley Wildlife Management 
Authority, and 

To the Minister of Environment 
Province of British Columbia 


I have examined the balance sheet of the Creston Valley 
Wildlife Management Authority Trust Fund as at 31 March 
1983 and the statement of revenue and expenditure and 
surplus for the year then ended. My examination was made 
in accordance with generally accepted auditing standards, 
and accordingly included such tests and other procedures as 
I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly 
the financial position of the Trust Fund as at 31 March 
1983 and the results of its operations for the year then 
ended in accordance with generally accepted accounting 
principles, as modified by note 2 to the financial state- 
ments, applied on a basis consistent with that of the 
preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
18 June 1983 



G 186 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 


CRESTON VALLEY WILDLIFE MANAGEMENT AUTHORITY 
TRUST FUND 
BALANCE SHEET 
AS AT 31 MARCH 1983 


1983 1982 

ASSETS 


Cash 

$ 28,341 

$ 26,031 

Short-term investments 

1 12,700 

101 ,000 

Amounts receivable 

1 

359 

Inventory (at lower of cost and 
net realizable value) 

7,514 

4,614 


148,556 

132,004 

Fixed assets (note 2) 

1 

1 


$148,557 

$132,005 

LIABILITIES 

Refundable security deposits 

$ 763 

$ 6,804 

SURPLUS (EXHIBIT B) 

147,794 

125,201 


$148,557 

$132,005 


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


Approved 


by~th« 


Management Authority 



PUBLIC ACCOUNTS 1982/83 


G 187 


CRESTON VALLEY WILDLIFE MANAGEMENT AUTHORITY 
TRUST FUND 

STATEMENT OF REVENUE AND EXPENDITURE AND SURPLUS 
FOR THE YEAR ENDED 31 MARCH 1983 


REVENUE 


1983 


Grants 

Province of British Columbia 
Government of Canada 


Operations 
Campground 
West Meadows 
Donations 

Publications and other sales 
Interest 

Permits and sundry 


EXPENDITURE 

Campground 
West Meadows 

Public services and information 
Grazing 

Habitat management 
Administration and general 
Office furniture and equipment 
Equipment and machinery 
Buildings 


EXCESS OF REVENUE OVER EXPENDITURE FOR THE YEAR 
SURPLUS - Beginning of year 
SURPLUS - End of year (EXHIBIT A) 


$ 75,000 
75,000 


150 , 

,000 

13, 

,976 

6, 

,611 

1 , 

,910 

6, 

,168 

17, 

,916 

8, 

,890 

55, 

,471 

205, 

r 47 1 


15, 

,186 

10 , 

,183 

42, 

, 1 88 

2, 

,543 

38, 

,870 

72, 

,802 


160 


53 


893 

182, 

,878 

22, 

,593 

125, 

,201 

; 1 47 , 

,794 


EXHIBIT B 


1982 


$ 62,315 
75,000 

137,315 

13,623 
10,013 
1 ,590 
3,609 
26,362 
37,792 

92,989 

230,304 


1 1 ,062 
1 ,528 
34,972 
2,185 
50,231 
81,105 
590 


181 ,673 
48,631 
76,570 
$125,201 


G 188 


PROVINCE OF BRITISH COLUMBIA 


CRESTON VALLEY WILDLIFE MANAGEMENT AUTHORITY 
TRUST FUND 

NOTES TO FINANCIAL STATEMENTS 
31 MARCH 1983 


1 . Trust Fund 


These financial statements relate only to the Trust Fund 
of the Creston Valley Wildlife Management Authority in 
accordance with section 20 (3) of the Creston Valley 

Wildlife Act. 


2 . Significant accounting policy 


Fixed assets 

All expenditures on land, buildings, office furniture and 
equipment, machinery and equipment, and motor vehicles 
are charged to expenditure in the year they are incurred. 


PUBLIC ACCOUNTS 1982/83 


G 189 


DISCOVERY FOUNDATION 


PEAT 

MARWICK 


Peat, Marwick, Mitchell & Co. 

Suite 2100 

One Bentall Centre 

505 Burrard Street 

Vancouver, British Columbia V7X 1M1 
(604) 685^8221 


AUDITORS’ REPORT 


To the Trustees of Discovery Foundation 

We have examined the consolidated balance sheet of Discovery 
Foundation as at March 31, 1983 and the consolidated statements of financial 
activities and changes in financial position for the year then ended. Our 
examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures as we 
considered necessary in the circumstances. 

In our opinion, the accompanying consolidated financial statements 
present fairly the financial position of Discovery Foundation as at March 31 , 
1983 and the results of its financial activities and the changes in financial 
position for the year then ended in accordance with generally accepted 
accounting principles for non-profit organizations which, after giving 
retroactive effect to the change in presentation of provincial government 
grants, as explained in Note 2(b), have been consistently applied during the 
year subsequent to the change made as of April 1, 1981 in the method of 
recording start-up costs. 



Vancouver, British Columbia, Canada 
May 13, 1983 


Chartered Accountants 


G 190 


PROVINCE OF BRITISH COLUMBIA 


DISCOVERY FOUNDATION 
Consolidated Balance Sheet 
March 31, 1983 

(With comparative figures for 1982) 


1983 1982 

(Restated 


Term deposits (Note 5(c)) 

$ 1,600,000 

1,180,000 

Accrued interest receivable 

- 

12,092 

Accounts receivable and refundable deposit 

164,709 

101,302 

Prepaid rent (Notes 3 and 5) 

4,032,075 

- 

Prepaid expenses 

5,778 

17,606 

Total current assets 

5,802,562 

1,311,000 

Investment in research parks, at cost: 
Willingdon 

Simon Fraser University 

University of British Columbia 

5,498,096 

3,014,564 

183,707 

15,512,639 

2,358,648 

80,608 


8,696,367 

17,951,895 

Other assets, at cost less accumulated 
depreciation and amortization: 

Furniture and fixtures 

Leasehold improvements 

Leasehold improvements for tenants 

33,228 

40,901 

159,612 

27,299 

39,470 

Accumulated depreciation and amortization 

233,741 

68,797 

66,769 

31,124 

Net other assets 

164,944 

35,645 


14,663,873 

19,298,540 

Liabilities and Accumulated Excess of 

Revenue over Expenditure 


Cheques outstanding in excess of funds on deposit 

$ 32,621 

111,825 

Accounts payable 

461,618 

358,480 

Holdbacks payable 

234,953 

1,454,232 

Rent received in advance 

69,970 

50,361 

Total current liabilities 

799,162 

1,974,898 

Accumulated excess of revenue over expenditures , 
per accompanying statement 

13,864,711 

17,323,642 

Contingency and commitments (Note 5). 

S 14,663,873 

19,298,540 


See accompanying notes to consolidated financial statements. 


Approved by the Board of Trustee^ : 



Trustee 



% 


PUBLIC ACCOUNTS 1982/83 


G 191 


DISCOVERY FOUNDATION 


Consolidated Statement of Financial Activities 
Year ended March 31, 1983 
(With comparative figures for 1982) 



1983 

1982 



(Restated 
Note 2) 

Revenue : 

Interest income 

$ 222,715 

1,205,451 

Provincial government grant 

1,000,000 

2,000,000 

Lease option income 

196,374 

295,000 


1,419,089 

3,500,451 

Expenditures : 

Advertising and promotion 

91,256 

93,938 

Consulting and architectural fees 

173,597 

66,480 

Capital taxes 

33,645 

8,801 

Depreciation 

37,673 

20,187 

Innovation office 

30,434 

- 

Insurance and miscellaneous 

4,340 

10,117 

Office and general 

73,472 

35,113 

Professional fees 

74,986 

62,238 

Proposal and project start-up costs 

54,720 

- 

Rent 

88,719 

47,597 

Salaries and benefits 

276,136 

242,829 

Travel and public relations 

30,344 

25,605 

Net cost of subsidizing rents for high 

technology companies in the start-up phase 

(Schedule) 

686,025 

(62,646) 


1,655,347 

550,259 

Excess (deficit) of revenue over expenditure 

before undernoted items 

(236,258) 

2,950,192 

Write down of prepaid rent arising from rent 

subsidy policy (Note 4) 

(2,340,800) 

- 

Loss on sale of Multi-Tenant Facili ty at 

Willingdon (Note 4) 

(881,873) 

- 

Excess (deficit) of revenue over expenditure 

(3,458,931) 

2,950,192 

Accumulated excess of revenue over expenditure, 

beginning of year 

17,323,642 

14,373,450 

Accumulated excess of revenue over expenditure. 

end of year 

$ 13,864,711 

17,323,642 


See accompanying notes to consolidated financial statements. 


G 192 


PROVINCE OF BRITISH COLUMBIA 


DISCOVERY FOUNDATION 

Consolidated Statement of Changes in Financial Position 
Year ended March 31, 1983 
(With comparative figures for 1982) 




1983 

1982 

(Restated 
Note 2) 

Funds provided by: 

Excess of revenue over expenditure 

$ 

- 

2,970,379 

Accounts payable and rent received in advance 


125,012 

50,361 

Interest receivable and other, net 

Proceeds on sale of Multi-Tenant Facility 


14,160 

133,668 

at Willingdon 


11,468,337 

- 

Total funds provided 


11,607,509 

3,154,408 

Funds applied to: 

Excess of expenditure over revenue 


198,585 

- 

Prepaid rent, net 

Investment in research parks, net of 


4,032,075 

- 

holdbacks 


6,654,762 

11,639,986 

Purchase of leasehold improvements for tenants 
Accounts receiable, accounts payable and other, 


159,612 

~ 

net 


63,271 

365,376 

Total funds applied 


11,108,305 

12,005,362 

Increase (decrease) in cash for year 


499,204 

(8,850,954) 

Cash and term deposits, beginning of year 


m 

00 

VO 

o 

9,919,129 

Cash and term deposits, end of year 

$ 

1,567,379 

1,068, 175 


See accompanying notes to consolidated financial statements. 


PUBLIC ACCOUNTS 1982/83 


G 193 


DISCOVERY FOUNDATION 

Notes to Consolidated Financial Statements 
March 31, 1983 


1. Significant accounting policies: 

(a) Basis of consolidation: 

The consolidated financial statements contain the financial 

statements of Discovery Foundation and its wholly-owned subsidiary, 
Discovery Parks Incorporated. 

(b) Incorporation: 

The Foundation was incorporated on September 24, 1979 under the 
provisions of the Societies Act of the Province of British 
Columbia. The subsidiary is incorporated under the provisions of 
the Company Act of the Province of British Columbia and is involved 
in the development of research parks. 

(c) Charitable organization: 

The Foundation is a charitable organization for income tax purposes 
and is, therefore, not taxable. The subsidiary is a taxable 
entity. 

(d) Investment in research parks: 

Investment in research parks is carried at cost. Included in cost 
are all direct costs relating to these properties, as well as 
certain indirect costs including property taxes. 

(e) Depreciation and amortization: 

The costs of furniture and fixtures are depreciated over their 

estimated useful life using the declining balance method at a rate 
of 20% from month of purchase. Leasehold improvements are 
amortized using the straight-line method over the term of the 
lease. 

2. Change in presentation and prior period adjustment: 

(a) Deferred start-up costs: 

During the year the subsidiary retroactively changed its accounting 
policy related to start-up costs. Formerly all start-up costs were 
deferred. The company has determined that it is more appropriate 
to expense such costs in the year incurred and, accordingly, the 
consolidated financial activities for the year ended March 31, 1982 
was decreased by $23,099 and the opening excess of revenue over 
expenditure was decreased by $800,533. 

(b) Change in presentation: 

During the year the Foundation has reclassified the aggregate of the 
amounts previously classified as "Contributed principal funds from 
the Province of British Columbia" and "Accumulated net income" into 
the "Accumulated excess of revenue over expenditure". Accordingly, 
grants from the Province of British Columbia are included in 
revenue in the year of receipt. 


G 194 


PROVINCE OF BRITISH COLUMBIA 


DISCOVERY FOUNDATION 

Notes to Consolidated Financial Statements, continued 
March 31, 1983 


3. Prepaid rent: 

Prepaid rent consists of rent for the lease back of the Multi-Tenant 

Facility for a five year term received as part of the proceeds of the sale 
at May 31, 1982 (see Note 5). As at March 31, rent for the months of June 
to March inclusive of 5608,760 was charged to expenditure for the year. 

The balance of prepaid rent, $4,032,075, will be expensed over the next 
five years. 

4. Other items: 

(a) Loss on sale of Multi-Tenant Facility at Willingdon: 

On May 31 the Multi-Tenant Facility at Willingdon was sold with a 
lease back for a period of five years. The total cost of the 
building was $14,691,011. The sale price, net of selling costs, 
was $13,809,138 resulting in a loss of $881,873. 

(b) Write down of prepaid rent arising from rent subsidy policy: 

Prepaid rent of $6,981,636 was received as part of the consideration 
on the sale of the Multi-Tenant Facility at Willingdon. In 
anticipation of subsidizing rents for high technology companies in 
the start-up phase, the prepaid rent was written down by $2,340,800 
to its estimated net realizable value. 

5. Contingency and commitments: 

(a) The subsidiary has issued letters of credit totalling $842,100 to the 

Corporation of the District of Burnaby as bonds for compliance with 
the municipal regulations pertaining to the construction of research 
parks in Burnaby, B.C. These letters of credit are guaranteed by 
Discovery Foundation. 

(b) The subsidiary leases two parcels of land for terms of 75 years each, 

one commencing in 1981 and the other in 1982. The leases require 
minimum rental payments in the first ten years of $2,500 per hectare 
(estimated 1984 rental is $10,000), and thereafter a rental based on 
the fair market value for rental of such land. 


PUBLIC ACCOUNTS 1982/83 


G 195 


EXPO 86 CORPORATION 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V1X4 


AUDITOR'S REPORT 


To the Board of Directors of Expo '86 Corporation 

To the Minister of Tourism 
Province of British Columbia 


I have examined the statement of financial position of 
Expo '86 Corporation as at 31 March 1983 and the 
statements of deferred operating costs and changes in 
financial position for the year then ended. My examin- 
ation was made in accordance with generally accepted 
auditing standards and accordingly included such tests 
and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present 
fairly the financial position of the Corporation as at 
31 March 1983 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 applied on a basis consistent with that of 
the preceding year. 

The Corporation has failed to comply with certain 
statutory requirements of the Expo 86 Corporation Act 
as described in Note 1 to the financial statements. 



Ttia Morrison, F.C.A, 
Auditor General 


Victoria, British Columbia 
13 July 1983 


G 196 


PROVINCE OF BRITISH COLUMBIA 


EXPO 86 CORPORATION 
STATEMENT OF FINANCIAL POSITION 
MARCH 31, 1983 


ASSETS 

1983 

1982 

Cash and Term Deposits 

$ 2,300 

$722,290 

Accounts Receivable and Advances 

25,975 

43,311 

Prepaid Rent 

110,307 

- 

Furniture, Equipment and Leasehold 



Improvements (Note 3) 

358,362 

89,510 

Site Costs 



Installations 

2,373,379 

- 

Properties 

24 1 , 665 

- 


2,615,044 

- 

Deferred Operating Costs (Note 2.b) 

5,506, 278 

(384 ,449) 


$8,618,266 

$470,662 

LIABILITIES 



Bank Overdraft (Note 7) 

$6,035, 769 

$151,713 

Accounts Payable and Accrued Liabilities 

2, 582,497 

318,949 


$8,618,266 

$470,662 


The accompanying Notes are an integral part of these Financial 
Statements . 

Approved by the Board. 



PUBLIC ACCOUNTS 1982/83 


G 197 


EXPO 86 CORPORATION 
STATEMENT OF DEFERRED OPERATING COSTS 
FOR THE YEAR ENDED MARCH 31, 1983 


YEAR ENDED C UMULATIVE TOTALS 

MARCH 31, 1983 MARCH 31, 1982 MARCH 31, 198 3 


Operating Costs: 


Salaries and Wages 

$1,161,312 

$ 474,109 

$1 , 635,421 

Benefits 

126, 135 

49,397 

175,532 

Travel and Business 

355,844 

232 , 176 

588,020 

Insurance 

15,262 

4 ,399 

19 , 661 

Professional Services 

2,082, 015 

1, 129,682 

3,211, 697 

Office Expenses 

284,920 

87,850 

372,770 

Promotion 

1,069,140 

376,951 

1 ,446,091 

Advertising 

6,701 

2,291 

8,992 

Outside Services 

110 , 681 

25,853 

136,534 

Rentals 

397,621 

178,146 

575,767 

Utilities 

59 , 798 

40,078 

99,876 

Depreciation 

22,855 

13,541 

36,396 

Interest 

219,377 

- 

219,377 

Total Operating Costs 

5,911, 661 

2,614,473 

8,526, 134 

Revenues (Note 5) 

20 , 934 

2 , 998 , 922 

3 ,019 , 856 

Deferred Operating Costs 

$5,890, 727 

$ (384,449) 

$5,506,278 


G 198 


PROVINCE OF BRITISH COLUMBIA 


EXPO 86 CORPORATION 

STATEMENT OF CHANGES IN FINANCIAL POSITION 


FOR THE YEAR ENDED MARCH 

31, 1983 



1983 

1982 

Uses of Cash 

Total Operating Costs 

Less Item not involving Cash 

$5,911,661 

$2,316,750 

Depreciation and Amortization 

22,855 

13 , 099 

Additions to: 

Furniture, Equipment and 

5,888,806 

2,303,651 

Leasehold Improvements 

291,707 

72,900 

Installations 

2,373,379 

- 

Properties 

241,665 

- 


8,795,557 

2,376,551 

Sources of Cash 

Revenues 

Net Change in Non-Cash 

20,934 

2,605,227 

Working Capital Items 

2, 170,577 

176,242 


2,191,511 

2,781,469 

(Decrease) Increase in Cash and Term 

Deposits for the Year 

(6,604, 046) 

404,918 

Balance at Beginning of Year 

570,577 

165,659 

Balance at End of Year 

$(6,033,469) 

$ 570,577 


Detail of 
Cash 

Balance at End of Year: 
and Term Deposits 

$ 2,300 

$ 

722,290 

Bank 

Overdraft 

(6,035,769) 


(151,713) 



$(6,033,469) 

$ 

570,577 


PUBLIC ACCOUNTS 1982/83 


G 199 


EXPO 86 CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED MARCH 31, 1983 


1 . The Corporation - statutory requirements 

Expo 86 Corporation (formerly Transpo 86 Corporation) is a 
non-profit agent of the Crown incorporated under Statutes of 
British Columbia 1980 Chapter 59 as amended, for the sole purpose 
of organizing and operating the 1986 World Exposition. 

Section 7 of the Expo 86 Corporation Act requires the appointment 
of a president of the Corporation by the government of British 
Columbia. An appointment was not made under this section prior 
to March 31, 1983. 

Section 5(2) provides authority for the Board of Directors to 
delegaite its powers and duties to an employee of the 
Corporation. The Board of Directors contracted through a third 
party for the services of one of its employees to act in the 
capacity of general manager of the Corporation and delegated 
certain powers and duties to this person. 

2 . Significant Accounting Policies 

As the Corporation has been incorporated for a single purpose, 
it's financial results can best be evaluated in the context of 
the period from its inception to the closure of the Exposition. 
The financial statement presentation is designed to provide such 
information following generally accepted accounting principles. 
Significant accounting policies adopted are as follows: 

a. Site Costs 

Installations constructed on site are recorded at cost. 
Property costs are recorded at the cost to the Corporation of 
obtaining the rights to use of the property. Purchased 
properties are recorded at cost. Leased properties are 
recorded at the sum of the payments required under the lease 
as payments are due. 

Site costs are not depreciated and will be charged to 
operations in the fiscal year ended March 31, 1987. 


G 200 


PROVINCE OF BRITISH COLUMBIA 


EXPO 86 CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED MARCH 31, 1983 


2. b. Deferred Operating Costs 

Non-capital costs incurred in planning and organizing the 
Exposition are deferred, net of revenue recognized, and will 
be charged to operations in the fiscal year ended March 31, 
1987. As of March 31, 1982 revenues exceeded such costs by 
$384,449, and were described in the 1982 financial statements 
as "Excess of Revenue over Expenditure" . 


c . Revenue 

i) Government grants are recognized as revenue when 
received . 


ii) Revenue from sale of tickets to the Exposition and 
certain other rights will be recorded as deferred 
revenue, and will be recognized in the statement of 
Deferred Operating Costs when the Corporation discharges 
its obligation. 


d. Fixed Assets 

Fixed Assets, comprised of furniture, equipment and leasehold 
improvements are recorded at cost. Furniture and equipment 
are depreciated on a straight line basis to the year ended 
March 31, 1987. 

Leasehold improvements are amortized on a straight line basis 
over the term of the lease. 


Non-Monetary Transactions 

Donations of goods and services received by the Corporation 
will be recorded at fair market value. 


PUBLIC ACCOUNTS 1982/83 


G 201 


EXPO 86 CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED MARCH 31, 1983 


3 . Furniture, Equipment and Leasehold Improvements 


Cost 


1983 

Accumulated Net Book 
Depreciation Value 


1982 

Net Book 
Value 


Furniture and Equipment $156,281 $ 33,949 

Leasehold Improvements 238,477 2,447 


$122,332 $ 89,510 

236,030 - 


Total 


$394 , 758 $ 36,396 


$358,362 $ 89,510 


4 . Contingent Liability 

A claim for damages for wrongful termination of employment has 
been made against the Corporation. The claim, dated March 29, 
1983, requests damages of $450,000. No provision has been made 
in the accounts as the Corporation is disputing this claim, the 
outcome of which is unknown. 


5 . Revenues 

Year Ended Cumulative Totals 

March 31, 1983 March 31, 1982 March 31, 1983 

Grants from: 

Province of B.C. $ - 

Federal Agencies 
Other Income 20 , 934 


$20,934 


$2,893,695 

17,500 

87,727 


$2,998,922 


$2,893,695 

17,500 

108,661 


$3,019,856 


6 . Commitments 


a. On March 24, 1983 the Corporation entered into a lease 

agreement with B.C. Hydro and Power Authority for the use of 
certain site property for an initial payment of $2,390,000 
due April 1, 1983. Under the terms of this lease the 
Corporation has a further obligation to pay the costs of 
relocating the occupants presently on this property. 


G 202 


PROVINCE OF BRITISH COLUMBIA 


EXPO 86 CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED MARCH 31, 1983 


6. b. The Corporation has entered into Lease agreements for office 
space which provide for minimum base rentals of $1,957,374 
over the term of the leases. 

c. The Corporation has also acquired rights to the use of 

certain site property under other leases. Payments for these 
rights will be based upon market values at the date when the 
Corporation occupies the property. 


7 . Subsequent Events 

a. Subsequent to March 31, 1983 the Corporation has: 


i. Issued the following notes which are guaranteed by the 
Province of British Columbia: 


Issue Date Maturity Date 


Interest Rate Amount 


April 5, 1983 
May 6, 1983 
May 20, 1983 


October 5, 1983 
November 2, 1983 
August 18, 1983 


9.9 % $7,500,000 
9.4 % 1,800,000 
9.35% 1,600,000 


$10,900,000 


The proceeds of the issues were applied in part to repayment 
of the bank overdrafts outstanding at March 31, 1983. 

ii. Acquired the rights to the major portion of the 
exposition site pursuant to a lease agreement with B.C. 
Place Limited dated June 3, 1983. Under this agreement, 
the Corporation is committed to the payment of 
approximately $8,500,000 for foreshore improvement to be 
installed by B.C. Place Limited. This agreement also 
provides for the sharing of certain costs for site 
installations, pending approval of design by both 
parties and the Province of British Columbia. 

iii. Entered into an agreement with B.C. Place Limited for 
the early possession of certain site property for a 
consideration of approximately $10,000,000. 


8 . Comparative Figures 

The figures for 1982 have been reclassified where appropriate to 
conform with the method of presentation adopted in 1983. 


PUBLIC ACCOUNTS 1982/83 


G 203 


HOUSING CORPORATION OF BRITISH COLUMBIA 


Coopers 

&Lybrand 


chartered accountants 


a member firm of 

Coopers & Lybrand (international) 


AUDITORS' REPORT 


The Lieutenant-Governor in Council 
Province of British Columbia 


We have examined the consolidated balance sheet of Housing Corporation of 
British Columbia as at October 31, 1982 and the consolidated statements of 
earnings and retained earnings and source and use of cash for the year then 
ended. Our examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and other procedures 
as we considered necessary in the circumstances. 

In our opinion, these consolidated financial statements present fairly the 
financial position of the Corporation as at October 31 , 1982 and the results 
of its operations and the source and use of its cash for the year then ended 
in accordance with generally accepted accounting principles applied on a 
basis consistent with that of the preceding year. 



Vancouver, B.C. 
November 12, 1982, 
except note 3 which 
is as of June 3, 1983 


G 204 


PROVINCE OF BRITISH COLUMBIA 


HOUSING CORPORATION OF BRITISH COLUMBIA 


CONSOLIDATED BALANCE SHEET AS AT OCTOBER 

31 

, 1 982 


ASSETS 






1982 

1981 



( thousand 

dollars ) 

CASH AND BANK TERM DEPOSITS 


2,463 

4,931 

CASH HELD IN TRUST 


55 


ACCRUED INTEREST RECEIVABLE 


86 

83 

LAND HELD FOR RESALE 


61 

6 1 

MORTGAGES RECEIVABLE (note 3) 


1 ,654 

1,711 



4,319 

6,786 

LIABILITIES 




ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 


22 

17 

LIABILITY FOR FUNDS HELD IN TRUST 


55 


PAYABLE TO THE PROVINCE OF BRITISH COLUMBIA 


78 

58 

DEFERRED REVENUE 


88 

102 



243 

177 

SHAREHOLDER'S E QUI 

T 

Y 


SHARE CAPITAL (note 5) 


1 ,902 

1 ,902 

RETAINED EARNINGS 


2, 174 

4,707 


4,076 6,609 

4,319 6,786 


APPROVED BY THE DIRECTORS 



Dilrector 


Coopers 
&Ly brand 


PUBLIC ACCOUNTS 1982/83 


G 205 


HOUSING CORPORATION OF BRITISH COLUMBIA 
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS 
FOR THE YEAR ENDED OCTOBER 31, 1982 

1982 1981 

(thousand dollars) 

REVENUE 

Sales of undeveloped land 618 

Interest - term deposits 383 641 

- mortgages receivable 167 275 

550 1 ,534 

EXPENSES 

Cost of sales 490 

Administration expenses 83 88 

Settlement costs 36 

83 614 

NET EARNINGS FOR THE YEAR 467 920 

RETAINED EARNINGS - BEGINNING OF YEAR 4,707 5 , 787 

5,174 6,707 

DIVIDENDS 3,000 2,000 

RETAINED EARNINGS - END OF YEAR 2,1 74 4,70*7; 


| &Ly brand 


G 206 


PROVINCE OF BRITISH COLUMBIA 


HOUSING CORPORATION OF BRITISH COLUMBIA 
CONSOLIDATED STATEMENT OF SOURCE AND USE OF CASH 
FOR THE YEAR ENDED OCTOBER 31, 1982 

1982 1981 

(thousand dollars) 

SOURCE OF CASH 

From operations 467 920 

Decrease in land held for resale 484 

Decrease in receivables 70 

Decrease in receivable from Province of 

British Columbia 7 

Decrease in mortgages receivable 3,595 

Increase in payable to the Province of 

British Columbia 23 4 

Increase in accounts payable and accrued 

liabilities 2 

Decrease in other assets 2 


562 5,012 


USE OF CASH 

Increase in mortgages receivable 16 

Decrease in payable to the Province of 

British Columbia 3,000 

Decrease in accounts payable and accrued 

liabilities 10 

Increase in receivables 9 

Decrease in deferred revenue 14 24 

Dividends 3 , 000 2 , 000 


3,030 5,043 


DECREASE IN CASH (2,468) (31) 

BANK TERM DEPOSITS - BEGINNING OF YEAR 4,931 4,962 


BANK TERM DEPOSITS - END OF YEAR 2,463 4,931 


PUBLIC ACCOUNTS 1982/83 


G 207 


HOUSING CORPORATION OF BRITISH COLUMBIA 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
FOR THE YEAR ENDED OCTOBER 31, 1982 


WINDING-UP OF THE OPERATIONS OF THE CORPORATION 

Pursuant to a directive dated September 29, 1978 issued by the Ministry 
of Municipal Affairs and Housing, Province of British Columbia, the 
operations of the Corporation are being wound up. A total of $12 million 
of dividends has been declared to date, of which $3 million was paid in 
the current fiscal year, $5 million in the fiscal year ended October 31, 
1981 and $4 million in the fiscal year ended October 31, 1980. 


SIGNIFICANT ACCOUNTING POLICIES 
Principles of Consolidation 

The consolidated financial statements include the accounts of Housing 
Corporation of British Columbia and the wholly-owned subsidiaries, 

Dunhill Development Corporation and HCBC Construction Ltd. 

Land Held for Resale 

These properties are reflected in the accounts at the lower of cost and 
net realizable value. 

Carrying Charges and Overhead Expenses Capitalized 
The cost of land includes: 

- direct carrying costs (interest and property taxes) which are 
capitalized from the date of acquisition of the land; 

- an appropriate portion of corporate overhead capitalized as acquisition 
and development costs. 

Consideration for Sales 

Where collectibility of the outstanding balance of a mortgage is in doubt 
and the appraised value of the security is less than the carrying value, 
the carrying value is written down to the appraised value. 


MORTGAGES RECEIVABLE 

As at October 31, 1982, the Corporation had commenced or was about to 
commence foreclosure action on mortgages totalling $947,945. The 
Corporation is of the opinion that the value of the properties relating 
to these mortgages is in excess of the amount owed and, accordingly, no 
provision has been made for these mortgages. 

As at June 3, 1983, two mortgages totaling $776,149 remained in 
foreclosure . 


Coopers 

&Lybrand 


G 208 


PROVINCE OF BRITISH COLUMBIA 


HOUSING CORPORATION OF BRITISH COLUMBIA 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
FOR THE YEAR ENDED OCTOBER 31, 1982 


4 . INCOME TAXES 

All of the issued shares of the Corporation are owned by the Province of 
British Columbia and therefore the Corporation is not subject to federal 
or provincial income taxes. 

5. SHARE CAPITAL 

1982 1981 

(thousand dollars) 

Authorized - 

2,000,000 common shares of no par value 
Issued and fully paid - 

1 ,355,084 shares 1,902 1,902 


6 . CONTINGENT LIABILITIES 

(a) The Corporation is contingently liable for certain mortgages assumed 
by purchasers of housing units sold by the Corporation. 

(b) The Corporation has been named as a defendant in a legal action 
which claims damages for alleged building deficiencies. In the 
opinion of counsel for the Corporation, the outcome and damages, if 
any, are not determinable. 


I Coopers 
| &Lybrand 



















! . 

. 










* 










i / - 






G 210 


PROVINCE OF BRITISH COLUMBIA 


INSURANCE CORPORATION OF BRITISH COLUMBIA 


INSURANCE CORPORATION OF BRITISH COLUMBIA 
INSURANCE (MOTOR VEHICLE) ACT FUND 

STATEMENT OF OPERATIONS 

V ear Ended December 31, 1982 



1982 

1981 


( Thousands of dollars ) 

Revenue 

Vehicle premiums written 

$668,028 

$591,841 

Driver premiums written 

29,013 

20,509 


$697,041 

$612,350 

Vehicle premiums earned 

$632,137 

$543,922 

Driver premiums earned 

25,429 

18,414 


657,566 

562,336 

Investment income 

1 12,091 

102,554 

Total revenue 

769,657 

664,890 

Claims Costs 

Claims incurred 

608,599 

552,605 

Claims operations expense 

62,050 

37,395 


670,649 

590,000 

Expenses 

Administrative (Note 4) 

54,997 

35,992 

Commissions 

40,81 1 

38,282 


95,808 

74,274 

Total claims and expenses 

766,457 

664,274 

Income for the year 

3,200 

616 

Unappropriated surplus 
— beginning of the year 

as restated (Note 4) 

5,008 

4,392 

Unappropriated surplus 

— end of the year 

$ 8,208 

$ 5,008 


PUBLIC ACCOUNTS 1982/83 


G 211 


INSURANCE CORPORATION OF BRITISH COLUMBIA 

STATEMENT OF GENERAL OPERATIONS 

Year Ended December 31 , 1982 



1982 

1981 


(Thousands of dollars ) 

Revenue 

Gross premiums written 

$35,089 

$27,204 

Net premiums written 

$28,956 

$23,036 

Net premiums earned 

$26,328 

$23,544 

Net Claims Costs 

19,934 

17,297 

Expenses 

Administrative 

5,531 

3,814 

Commissions 

4,970 

4,789 

Premium taxes 

846 

725 


1 1,347 

9,328 

Total claims and expenses 

31,281 

26,625 

Underwriting loss 

4,953 

3,081 

Investment income 

5,021 

4,402 

Income from General 

Insurance operations 

68 

1,321 

Loss from other operations 

44 

44 

Income for the year 

24 

1,277 

Unappropriated retained earnings 

— beginning of year 

1,870 

1,793 

Appropriation for Catastrophe 

reserve (Note 5) 

(500) 

(1,200) 

Unappropriated retained earnings 

— end of year 

$ 1,394 

$ 1,870 


G 212 


PROVINCE OF BRITISH COLUMBIA 


BALANCE SHEET As Af December 31, 1982 


Assets 

1982 1981 

( Thousands of dollars ) 

Cash in hands of agents and banks 

$ 1,324 

$ 1,344 

Investments (Note 6) 

774,938 

700,603 

Finance Plan receivables 

36,605 

60,753 

Other receivables 

40,560 

44,070 

Deferred premium acquisition costs 

14,328 

12,512 

Property and equipment (Note 7) 

76,036 

55,161 


Approved by the Board: 



$943,791 $874,443 


18 


PUBLIC ACCOUNTS 1982/83 


G 213 


INSURANCE CORPORATION OF BRITISH COLUMBIA 


Liabilities 

Accounts payable and 

1982 1981 

( Thousands of dollars ) 

accrued charges 

$ 27,730 

$ 45,733 

Motor Vehicle Department 

4,501 

7,771 

Premiums in advance 

9,334 

13,271 

Unearned premiums (Note 9) 

238,676 

195,698 

Unpaid claims (Note 10) 

Due to the Insurance (Motor Vehicle) 
Act Fund representing 

642,848 

923,089 

594,492 

856,965 

unappropriated surplus (Note 4) 

8,208 

931,297 

5,008 

861,973 

Retained Earnings 

Catastrophe reserve (Note 5) 

6,000 

5,500 

Rate Stabilization reserve (Note 5) 

5,100 

5,100 

Unappropriated retained earnings 

1,394 

1,870 


12,494 

12,470 

$943,791 

$874,443 


19 


G 214 


PROVINCE OF BRITISH COLUMBIA 


INSURANCE CORPORATION OF BRITISH COLUMBIA 
STATEMENT OF CHANGES IN FINANCIAL POSITION 

V ear Ended December 31, 1982 


1982 1981 

(Thousands of dollars ) 


Resources provided: 

From Insurance (Motor Vehicle) 


Act Fund Operations (Note 1 1 ) 

$ 7,911 

$ 4,960 

From General Operations (Note 1 1 ) 

99 

1,343 

Increase in unearned premiums 

42,978 

49,457 

Increase in unpaid claims 

Decrease in Finance 

48,356 

130,821 

Plan receivables 

Increase in fees payable to 

24,148 

— 

Motor Vehicle Department 

- 

3,428 

Increase in premiums in advance 

— 

5,571 

Sale of property and equipment 

1,330 

744 

Resources applied: 

Increase in Finance Plan 

124,822 

196,324 

receivables 

Purchase of property 

— 

54,009 

and equipment 

Decrease in fees payable to 

26,992 

18,694 

Motor Vehicle Department 

3,270 

— 

Decrease in premiums in advance 

Net increase in other assets 

3,936 

— 

and liabilities 

16,309 

10,581 


50,507 

83,284 

Increase in resources for year 

Cash and investments 

74,315 

1 13,040 

— beginning of year 

Cash and investments 

701,947 

588,907 

— end of year 

$776,262 

$701,947 


20 


PUBLIC ACCOUNTS 1982/83 


G 215 


NOTES TO FINANCIAL STATEMENTS 


December 31, 1982 


1 . STATUS OF THE CORPORATION 

The Insurance Corporation of British Columbia I the 
Corporation) is a Crown corporation incorporated 
under the Insurance Corporation Act, R.S.B.C. Chap- 
ter 201, The Corporation has the power and capacity 
to act as an insurer and reinsurer in all classes of 
insurance and to operate and administer the 
Insurance (Motor Vehicle) Act Fund. 

The Insurance (Motor Vehiclel Act Fund is by 
legislation a separate entity for financial reporting 
purposes. A statement showing the results of the 
operation of the Fund is included with the financial 
statements of the Corporation and the balance of the 
Fund, which represents its accumulated net operat- 
ing position, is reflected in the balance sheet of the 
Corporation. The Fund consists of the revenues and 
expenses attributable to the Insurance (Motor 
Vehiclel Act Fund operations. All assets and 
liabilities are held by the Corporation. 

2. SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES 

Basis of Reporting 

As prescribed by Section 21(41 of the Insurance 
Corporation Act, the financial statements of the 
Corporation are presented in accordance with 
generally accepted accounting principles. 

Investments 

Investments are carried as follows: 

Short-term deposit — at cost or amortized 

receipts, call loans, cost plus accrued 

and notes interest. 

Bonds — at amortized cost plus 

accrued interest. 

Investment Income 

Income on interest bearing securities is accrued on a 
daily basis. Capital gains and losses on sales of 
securities are recognized as they occur. Premiums or 
discounts on bond purchases are amortized over the 
term to maturity of the bond. 

Deferred Premium Acquisition Costs 

Commissions, and General Insurance premium 
taxes, are expensed over the terms of the insurance 
contracts to which such costs relate. 

Premium Deficiencies 

A premium deficiency can exist when anticipated 
future claims and expenses exceed unearned pre- 
miums. Anticipated investment income is expected 


to exceed any potential premium deficiency in the 
General Insurance Division. 

Depreciation and Amortization 
Depreciation is provided on a straight-line basis 
commencing in the month following that in which 
assets are placed in service 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 plus the first renewal period 
where appropriate. 

Leases 

Leases are classified as capital oroperating leases. A 
lease that transfers substantially all of the benefits 
and risks incident to the ownership of property is 
classified as a capital lease. All other leases are 
accounted for as operating leases wherein rental 
payments are expensed as incurred. The capitalized 
lease obligations reflect the present value of future 
rental payments discounted at the interest rate 
implicit in the lease. The corresponding amount is 
capitalized as the cost of the assets and depreciated 
over the assets' estimated economic life (Note 8) 

Unearned Premiums 

The liability for unearned premiums is the portion of 
premiums that relates to the unexpired term of each 
vehicle policy, General Insurance contract, or driver's 
premium 

Unpaid Claims 

Unpaid Claims includes a provision for reported and 
unpaid claims, based on the claims settlement 
experience of the Corporation, current trends and a 
detailed review of claims files. Also included is an 
estimate for unreported claims. 

Prior Year's Figures 

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

3. REINSURANCE 

The Corporation follows the policy of underwriting 
and reinsuring certificates of insurance which, in the 
main, limit the liability of the Corporation to the 
maximum amount on any one loss of $200,000 for 
General Insurance contracts and $750,000 for Auto- 
plan certificates. In addition the Corporation has 
obtained reinsurance having an upper amount of 
$40,000,000 which limits the Corporation's liability to 
$1,962,500 in the event of a series of claims arising 
out of a single occurrence. 


21 


G 216 


PROVINCE OF BRITISH COLUMBIA 


4. PRIOR PERIOD ADIUSTMENT 

During the year the cost sharing agreement with the 
Motor Vehicle Department which was to provide 
$3,000,000 for 1980 and 1981 activities was cancelled. 
Of this amount. $1,000,000 was applicable to 1981, 
and $2,000,000 applicable to 1980. In the 1981 
comparative financial statements the $1,000,000 
item is added back to Administrative costs, reducing 
the income for the year, and the $2,000,000 item is 
charged against unappropriated surplus at De- 
cember 31. 1980 reducing that amount to $4,392,000. 

5. RESERVES 
General Operations 

The Corporation has appropriated from General 
Operations retained earnings an additional $500,000 
to the Catastrophe Reserve. The appropriation 


increases this reserve to $6,000,000. 

As is the practice in the industry, a Catastrophe 
Reserve is provided to absorb the possible impact 
of losses rising from catastrophic occurrences. 
Catastrophes such as earthquakes, storms, or con- 
flagrations occur at random and the losses arising 
could be substantial. 

The Rate Stabilization Reserve is provided to lessen 
the potential impact on General Insurance pre- 
miums of significant variations in claims loss experi- 
ence in future years. Amounts may be withdrawn 
from this reserve in loss years and, conversely, 
amounts may be added to the reserve in years with a 
surplus 


6. INVESTMENTS 

Short-term Deposit Receipts, Call Loans 


Dec. 31 , 1982 Dec. 31,1981 

( Thousands of dollars) 

and Notes (approximates market valuel 

Bonds (estimated market valuel 
- Dec. 31, 1982 

$550,967 

$214,807 

$456,028 

- Dec. 31. 1981 

$170,550 

560.131 

$774,938 

244,575 

$700,603 


7. PROPERTY AND EQUIPMENT 





Nc( Book 

Net Book 




Value at 

Value at 



Accumulated 

December 31, 

December 31, 


Cost 

Depreciation 

1982 

1981 



1 Thousands of dollars I 


Land 

$ 1 1 ,699 

$ 

$ 1 1 ,699 

$13,826 

Land — Lonsdale Quay 

2,504 

- 

2,504 

2,502 

Building — Lonsdale Quay lUnder Construction! 

30.100 

- 

30,100 

13,642 

Buildings 

30,675 

10,410 

20,265 

18,632 

Furniture & Equipment 

13.171 

5,351 

7,820 

3,765 

Computer Under Capital Lease 

3,697 

739 

2,958 

1,940 

Leasehold Improvements 

2,878 

2.188 

690 

854 


$94,724 

$18,688 

$76,036 

$55,161 


Depreciation has been charged at the following rates — Buildings 5-10%; Furniture and equipment 10-50%; 
Computer under capital lease 40%. Leasehold improvements are amortized over the term of the lease plus one 
renewal period. 

Depreciation expense for the year ended December 31. 1982 amounted to $4,786,000 (1981 — $4.410,0001. 


8. OBLIGATIONS UNDER CAPITAL LEASE 

The following is a schedule of future minimum lease payments under capital lease. 


Year Ended December 31 {Thousands of dollars) 

1983 $1,970 

1984 1,970 

Total minimum lease payments 3,940 

Less; Amounts representing insurance and maintenance 360 

Amounts representing interest 515 

Present value of the minimum lease payments $3,065 


Interest expensed in the year ended December 31, 1982 amounted to $489,177 ( 1981 - $315,5581. 


9. UNEARNED PREMIUMS 



Dec 31. 1982 

Dfc. 31, 1981 


1 Thousands ol dollars 1 

Insurance l Motor Vehiclel Act Fund 

$225,244 

$184,894 

General Insurance 

13.432 

10,804 

Total Unearned Premiums 

$238,676 

$145,048 


22 


PUBLIC ACCOUNTS 1982/83 


G 217 


10. UNPAID CLAIMS 


Dec. 31, 1982 Dec 31. 1981 

I Thousands of dollars I 

Insurance (Motor Vehicle! Act Fund 
General Insurance 
Total Unpaid Claims 


$623,914 $577,500 

18,934 16,992 

$642,848 $594,492 


II. CASH FLOW FROM OPERATIONS 


Insurance (Motor Vehicle! Act Fund 
Income for the year 
Non-cash item 

Depreciation and amortization 
Cash flow from operations 

General Operations 
Income for the year 
Non-cash item 

Depreciation and amortization 
Cash flow from operations 


12. LEASE COMMITMENTS 

The Corporation is committed to make the following 
payments during the next five years on property and 
equipment leased for periods of more than one 
year: 

(Thousands of dollars) 

1983 $12,190 

1984 988 

1985 594 

1986 397 

1987 58 

13. CAPITAL COMMITMENTS 

The Corporation is constructing a new head office 
building at Lonsdale Quay due for completion in 
1983. The total cost of the land and building will be 
approximately $45 million of which $33 million has 


TwcK’P Months Ended 


Dec. 31.1982 Dec. 31, 1981 

1 Restated! 



( T housands of dollars 1 


$ 

3,200 

$ 

616 


4,71 1 


4,344 

$ 

7,91 1 

$ 

4,960 

$ 

24 

$ 

1,277 


75 


66 


99 

$ 

1,343 



been spent up to December 31. 1982. The remaining 
$12 million will be spent in 1983 

14. PENSION PLAN 

Certain employees participate in a contributory 
pension plan and are entitled to vested interests 
prior to retirement. 

Employees contribute a specified percentage of 
salaries The Corporation contributes to the Plan all 
amounts as actuarially determined, over and above 
employee contributions, to fund the benefits earned 
by employees under the Plan. 

As of December 31, 1982 the Corporation has fully 
provided forall past service liabilities of the Pension 
Plan. Contributions by the Corporation for the year 
ended December 31, 1982 were $2,902,000 (1981 
$1,383,0001. 


AUDITORS' REPORT 


The Honourable James Hewitt 
Minister of Consumer and 
Corporate Affairs 
Province of British Columbia 

We have examined the balance sheet 
of the Insurance Corporation of British 
Columbia as at December 31, 1982 and the 
statements of general operations and 
changes in financial position of the Cor- 
poration and the statement of operations 
of the Insurance (Motor Vehicle) Act Fund 
for the year then ended. Our examination 
was made in accordance with generally 
accepted auditing standards, and accord- 
ingly, included such tests and other 
procedures as we considered necessary 
in the circumstances. 


In our opinion, these financial statements 
present fairly the financial position of the 
Corporation as at December 31, 1982, and 
the results of its operations and the 
changes in its financial position and the 
results of the operations of the Insurance 
(Motor Vehicle) Act Fund for the year then 
ended in accordance with generally ac- 
cepted accounting principles applied on 
a basis consistent with that of the pre- 
ceding year. 


x Lj [n* 




CHARTERED ACCOUNTANTS 
Vancouver, British Columbia 
February 1 1, 1983 


G 218 


PROVINCE OF BRITISH COLUMBIA 


KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


Province of 
British Columbia 



AUDITOR'S REPORT 


To the Chairman and Members of the Board of the 

Knowledge Network of the West Communications Authority, and 

To the Minister of Universities, Science and Communications 
Province of British Columbia: 


I have examined the consolidated balance sheet of Knowledge 
Network of the West Communications Authority as at 31 March 
1983 and the consolidated statements of revenue, expenditure 
and accumulated balance, and changes in financial position 
for the year then ended. My examination was made in 
accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as I 
considered necessary in the circumstances. 

In my opinion, these consolidated financial statements 
present fairly the financial position of the Authority as at 
31 March 1983 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, 
applied on a basis consistent with that of the preceding 
year . 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
31 May 1983 



PUBLIC ACCOUNTS 1982/83 


G 219 


EXHIBIT A 


KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 
CONSOLIDATED BALANCE SHEET 
As at 31 March 1983 
ASSETS 


Current assets 

1983 

1982 

Cash and term deposits 

Accounts receivable 

Accrued interest receivable 

Prepaid expenses 

$1 , 866,54 1 
19,693 
4,966 

$3, 004, 581 
40,859 
33,821 
14,540 


1,891,200 

3, 093,801 

Advance to Knowledge-West Partnership 

1,787,629 

548,895 

Fixed assets (Note 2) 

1 ,298,735 

996, 177 


$4,977, 564 

$4,638,873 


LIABILITIES AND ACCUMULATED BALANCE 


Current liabilities 



Accounts payable and 
accrued liabilities 

Holdbacks payable 

$ 142,057 

251 ,284 
393,341 

$ 627,619 

82,334 
709,953 

Accumulated excess of revenue 
over expenditure (Exhibit B) 

4,584,223 

3,928,920 


$4,977, 564 

$4,638,873 

Approved by the Board 

ykujtzc^- ■ 





Director 

(J D&r 

ector 

The five accompanying notes are 

an integral part of 

these 


financial statements 


G 220 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT B 


KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 

CONSOLIDATED STATEMENT OF REVENUE, EXPENDITURE AND 
ACCUMULATED BALANCE 

For the year ended 31 March 1983 


1983 1982 

Revenue 


Grants-Province of British Columbia 

$2,952,920 

$2,387,1 70 

Interest 

294,637 

537,295 

User fees 

30,550 

20,685 


3, 278, 107 

2,945, 150 


Expend iture 



Administration 

454, 569 

365, 591 

Deficit of partnership for the year 

4 

- 

Learning systems 

514,390 

248,1 99 

Network operations 

950,573 

818,573 

Public Affairs 

284,974 

331 , 842 

Research and development 

52,669 

- 

Satell ite 

365,625 

16,601 


2,622,804 

1,780,806 

Excess of revenue over expenditure 

655, 303 

1,164,344 


Accumulated 

balance , 

beginning of year 

3,928,920 

2,764,576 

Accumulated 

balance , 

end of year 

$4, 584,223 

$3,928,920 


PUBLIC ACCOUNTS 1982/83 


G 221 


EXHIBIT C 

KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION 
For the year ended 31 March 1983 



1983 

1982 

Funds derived from: 



Excess of revenue over expenditure 

$ 655,303 

$1,164,344 

Charges not affecting current funds: 
Depreciat ion 

Deficit of Partnership 

409,599 

4 

227,365 


1,064,906 

1,391,709 

Working capital of subsidiary 
acquired and consolidated 

- 

1,966,000 

Sale of fixed assets 

- 

1 ,397 


1,064,906 

3,359,106 

Funds applied to: 



Purchase of fixed assets 

712, 1 57 

974,079 

Advance to Knowledge-West Partnership 

1 ,238,738 

548,895 


1 , 950,895 

1,522,974 

Increase (decrease) in working capital 

(885,989) 

1,836,132 

Working capital, beginning of year 

2,383,848 

547,716 

Working capital, end of year 

$1,497,859 

$2,383,848 


G 222 


PROVINCE OF BRITISH COLUMBIA 


KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
31 March 1983 


NOTE 1 Significant accounting policies 

a) Principles of consolidation 

The accounts of the Authority are consolidated with those 
of its wholly-owned subsidiary Knowledge-West 
Communications Corporation. All inter-company 
transactions have been eliminated in these consolidated 
financial statements. 

The investment by Knowledge-West Communications 
Corporation in a joint venture, Knowledge-West 
Partnership, has been accounted for in these financial 
statements on an equity basis. 

b) Fixed assets and depreciation 

The Authority records fixed assets at cost and 
depreciates them using the straight line method over 
their estimated useful life as follows: 


Furniture and equipment 
Earth stations 
Leasehold improvements 
Network equipment 
Programs owned 
Tapes 

License agreements 


10% per annum 
20% per annum 
20% per annum 
20% per annum 
20% per annum 
20% per annum 
Life of the 
respective lease 


PUBLIC ACCOUNTS 1982/83 


G 223 


KNOWLEDGE 

NOTES 


NETWORK OF THE WEST 
TO THE CONSOLIDATED 
31 March 


COMMUNICATIONS AUTHORITY 
FINANCIAL STATEMENTS 
983 


NOTE 2 Fixed assets 



Cost 

Accumulated 

Depreciation 

1 983 

Net Book 
Value 

1 982 

Net Book 
Value 

Furniture and 
equipment 

$ 125,486 

'$ 20,289 

$ 105,197 

$ 45,836 

Earth stations 

84,130 

49,286 

34,844 

51 , 671 

Leasehold 

improvements 

202, 357 

71,464 

1 30,893 

117,001 

Network 

equipment 

959,795 

333,486 

626,309 

497,319 

Programs owned 

44,252 

26,423 

17,829 

26,680 

Tapes 

1 12,478 

33,447 

79,031 

43,805 

License 

agreements 

449,092 

144,460 

304,632 

213,865 


$1,977,590 $ 678,855 $1,298,735 $996,177 


Note 3 Commitments 

a) Commitments for the purchase of fixed assets amounted to 
$133,000 at 31 March 1983. 

b) Commitments under a capital construction contract 
amounted to $175,000 at 31 March 1983 ( 1 982-$ 1 , 300 , 000 ) . 

c) Under the agreement with Telesat for satellite charges a 
cheque for $78,100 was sent to them in March 1983 but was 
dated 1 April 1983. 


Note 4 Contingent liabilities 

a) The Authority is waiting for a decision to be made by 
Revenue Canada as to whether it is exempt from federal 
sales tax in accordance with Section 44 (2) of the Excise 
Tax Act. In the event of the Authority being held liable 
to pay federal sales tax, a liability of $90,000 would 
arise for equipment purchased in the year ended 31 March 
1 983. 


G 224 


PROVINCE OF BRITISH COLUMBIA 


KNOWLEDGE NETWORK OF THE WEST COMMUNICATIONS AUTHORITY 


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
31 March 1983 


Note 4 

b) A contingent liability exists for work carried out to 
complete a capital construction project. A contract has 
not yet been signed for this work. Management estimate 
the liability to be $180,000. 


Note 5 Comparative figures 

Certain 1982 figures have been restated in order to 
conform with financial statement presentation adopted in 
1 983. 


PUBLIC ACCOUNTS 1982/83 


G 225 


LEGAL SERVICES SOCIETY 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 
Legal Services Society, and 

To the Attorney-General, 

Province of British Columbia 


I have examined the balance sheet of the Legal Services 
Society as at 31 March 1 983 and the statement of income 
and expenditures and surplus for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests 
and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly 
the financial position of the Society as at 31 March 1983 
and the results of its operations for the year then ended 
in accordance with generally accepted accounting 
principles, as modified by note 1 to the financial 
statements, applied on a basis consistent with that of the 
preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
31 May 1983 


G 226 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

LEGAL SERVICES SOCIETY 


BALANCE SHEET 
AS AT 31 MARCH 1983 
ASSETS 




1983 

1982 

Cash and Term Deposits 

Accounts Receivable 

Due from the Province of 

British Columbia (Note 2) 

Grants Recoverable 

Prepaid Expenses 

$ 381,341 

36,321 

1,938,744 

15,000 

36,427 

$1,436,819 

96,393 

1,099,301 

28,000 

12,264 



$2,407,833 

$2,672,777 


LIABILITIES AND 

SURPLUS 


Accounts Payable - 

Professional Staff 

General 

Tariff (Note 2) 
Benefit Plan 

$ 139,729 

2,807,674 
179,960 

$ 207,567 

1 , 528,857 
160,592 

Surplus (Deficit) 

(Exhibit B) 

3,127,363 

(719,530) 

1,897,016 

775,761 



$2,407,833 

$2, 672,777 


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



PUBLIC ACCOUNTS 1982/83 


G 227 


EXHIBIT B 


LEGAL SERVICES SOCIETY 

STATEMENT OF INCOME AND EXPENDITURES AND SURPLUS 
FOR THE YEAR ENDED 31 MARCH 1983 


INCOME 

1 983 

1982 

GRANTS 



Province of British Columbia 

Law Foundation 

$15,769,136 

2,760,004 

$13, 145,921 
' 1,808,492 


18,529,140 

14,954,413 


OTHER INCOME 


Interest 

Legal Costs Recovered from Clients 
Publ icat ions 

Miscellaneous 

246,793 

45,921 

15,277 

578 

420, 166 
50,980 
19,344 
13,769 


308,569 

504,259 


18,837,709 

15,458,672 

EXPENDITURES 



Salaries and Benefits 

Board Expenses 

Computer 

Office 

Publ icat ions 

Libraries 

Rent 

Travel 

Miscellaneous 

Grants 

Tariffs 

4,171,066 
70,991 
288,1 79 
455,810 
102,173 
91,876 
521 , 338 
190,241 
196,749 
2,513,613 

1 1 ,730,964 

3,461 ,333 
66,441 
269,01 1 
457,892 
109,341 

1 16,066 
446,721 
270,522 
227,995 
3,087,532 
6,933,608 


20,333,000 

15,446,462 

EXCESS (DEFICIENCY) OF INCOME OVER 
EXPENDITURES FOR THE YEAR 

( 1 , 495,291 ) 

12,210 

SURPLUS AT BEGINNING OF YEAR 

775,761 

763,551 

SURPLUS (DEFICIT ) 

AT END OF YEAR (Exhibit A) 

$ (719,530) 

$ 775,761 


G 228 


PROVINCE OF BRITISH COLUMBIA 


LEGAL SERVICES SOCIETY 
NOTES TO THE FINANCIAL STATEMENTS 
31 MARCH 1983 


1 . Significant Accounting Policies 

These financial statements have been prepared in accor- 
dance with generally accepted accounting principles 
except that: 

(a) Property and equipment are recorded as operating 
expenditures at the time of acquisition. 

(b) No accrual for employee vacation pay is provided. 

(c) No provision is made for work-in-progress. 

2. Comparative Figures 

The 1982 Due from the Province of British Columbia and 
Accounts Payable-Tariffs, which were paid through the 
Ministry of the Attorney General, have been increased 
by $728,857. This amount had not been previously 
recognized on the balance sheet. Certain other 1982 
figures have been restated in order to conform with the 
financial statement presentation adopted in 1983. 
These restatements have no effect on surplus. 

3. Commitments 

The Society has commitments under long-term leases for 
office premises as follows: 


1984 

$269,783 

1985 

173,882 

1986 

104,278 

1987 

66,253 

1988 

4,460 


$618,656 


PUBLIC ACCOUNTS 1982/83 


G 229 


MEDICAL SERVICES COMMISSION OF BRITISH COLUMBIA 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman of the 

Medical Services Commission of British Columbia, and 

To the Minister of Health 
Province of British Columbia: 


I have examined the statement of financial position of the 
Medical Services Commission of British Columbia as at 31 March 
1983 and the statement of operations and working capital 
deficiency for the year then ended. My examination was made in 
accordance with generally accepted auditing standards, and 

accordingly included such tests and other procedures as I 
considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Commission as at 31 March 1 983 and 

the results of its operations for the year then ended in 

accordance with generally accepted accounting principles, as 

modified by Note 1 to the financial statements, applied on a 
basis consistent with that of the preceding year. 



Ermar Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
15 June 1983 



G 230 


PROVINCE OF BRITISH COLUMBIA 


MEDICAL SERVICES COMMISSION OF 
STATEMENT OF FINANCIAL 
31 MARCH 1983 


EXHIBIT A 
BRITISH COLUMBIA 
POSITION 



1983 

1982 

ASSETS 



Cash 

Accounts receivable 

$ 316,716 

4,263,967 

$11,1 57,628 

1 , 678,976 


$ 4,580,683 

$ 1 2,836,604 

LIABILITIES 



Accounts payable 

Premiums received in advance 
Estimated liability for 

unpresented and unprocessed 
benefit claims 

$ 287,731 

31,619,002 

92,800,000 

$ 416,224 

29,920,123 

96, 100,000 


124,706,733 

126,436,347 

WORKING CAPITAL DEFICIENCY 

Exhibit B 

120, 126,050 

1 1 3, 599,743 


$ 4,580,683 

$ 12,836,604 


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


Approved on behalf of the Commission: 



Dr. D.M. Bolton, Chairman 


PUBLIC ACCOUNTS 1982/83 


G 231 


EXHIBIT B 

MEDICAL SERVICES COMMISSION OF BRITISH COLUMBIA 
STATEMENT OF OPERATIONS AND WORKING CAPITAL DEFICIENCY 
FOR THE YEAR ENDED 31 MARCH 1983 



1983 

1982 

REVENUE 

Subscribers' premiums (Note 1) 
Province of British Columbia 
premium assistance 

$311,237,818 

60,830,066 

$235,866,891 

44,448,376 


372,067,884 

280,315,267 

EXPENDITURE 

Benefits 

Medical care 

Dental care (Note 2) 

Additional benefits 

707,991,363 
38,498,489 
44,791, 468 

597,778,355 

82,732,880 

34,868,280 


791 , 281 , 320 

715,379,515 

Administrat ion 

Salaries and employee benefits 
Data processing expenses 

General office expenses 
Occupancy expenses 

12,288,310 

8,679,771 

2,397,684 

1, 174,095 

13,632,036 
9,554,941 
2,391 ,951 

1 , 288,963 


24,539,860 

26,867,891 


815,821, 180 

742,247,406 

EXCESS OF OPERATING EXPENDITURE 

OVER REVENUE 

443,753, 296 

461,932, 139 

CONTRIBUTIONS 



Province of British Columbia 

437,226,989 

404,267,805 

WORKING CAPITAL DEFICIENCY - 
for the year 

6,526,307 

57,664,334 

WORKING CAPITAL DEFICIENCY - 
beginning of year 

113,599,743 

55,935,409 

WORKING CAPITAL DEFICIENCY - 
end of year - Exhibit A 

$120, 126,050 

$113, 599,743 


G 232 


PROVINCE OF BRITISH COLUMBIA 


MEDICAL SERVICES COMMISSION OF BRITISH COLUMBIA 
NOTES TO FINANCIAL STATEMENTS 
31 MARCH 1983 


1 . Significant Accounting Policies 

These financial statements have been prepared in accordance 
with generally accepted accounting principles except that: 

(i) Premiums from individual subscribers are included as 
revenue only when cash is received and the revenue is 
earned. Premiums from other sources are recognized as 
revenue on an accrual basis. 


(ii) 


The cost of furniture and equipment is charged to 
administration expenses in the year of acquisition. 


( iii) 


No accrual for holiday pay is provided for salaried 
employees . 


2. Dental Care 


Effective 1 September 1982, 
Columbia suspended coverage 
Human Resources clientele. 


the Dental Care Plan of British 
for all beneficiaries except 


3. The Medical Services Commission directs and operates the 
Medical Services Plan of British Columbia and the Dental 
Care Plan of British Columbia 


PUBLIC ACCOUNTS 1982/83 


G 233 


METRO TRANSIT OPERATING COMPANY 


Touche Ross &Co. 


Chartered Accountants 


AUDITORS' REPORT 


The Directors, 

Metro Transit Operating Company. 

We have examined the balance sheet of Metro Transit Operating Company as at 
March 31, 1983 and the statement of expenditures and recovery for the year then 
ended. Our examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures as we 
considered necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial position 
of the Company as at March 31, 1983 and the results of its operations for the 
year then ended in accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding year. 



Vancouver, B.C., 
May 25, 1983. 


Chartered Accountants 



700-1177 WEST HASTINGS STREET. VANCOUVER. BRITISH COLUMBIA V6E 2L2 
TELEPHONE < 604 ) 669 - 3343 — TELEX 04-51293 


G 234 


PROVINCE OF BRITISH COLUMBIA 


Touche Ross & Co. 


METRO TRANSIT OPERATING COMPANY 


(Created under a Special Act of the British Columbia Legislature) 


BALANCE SHEET AS AT MARCH 31, 1983 


ASSETS 

Current 

Cash 

Accounts receivable 

Recovery from British Columbia Transit 
Operating expenditures 
Other 

Inventories 
Prepaid expenses 


LIABILITIES 

Current 

Excess of cheques written over cash on deposit 
Accounts payable and accrued liabilities 


EQUITY 


Contributed surplus (Note 4) 



Director 


Director 


1983 

1982 

$'000 

$’000 


(Note 6) 

$ - 

$ 130 

79 

155 

11,918 

12,849 

6 

775 

5,181 

3,795 

2,096 

2,281 


$19,280 $19,985 


$ 627 

15,280 

$ - 

17,204 

3,373 

2,781 

$19,280 

$19,985 





See accompanying notes to financial statements. 


PUBLIC ACCOUNTS 1982/83 


G 235 



See accompanying notes to financial 




G 236 


PROVINCE OF BRITISH COLUMBIA 


Touche Ross & Co. 


METRO TRANSIT OPERATING COMPANY 


NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. Status of the Company 

The Metro Transit Operating Company was created by the Province of British 
Columbia on July 31, 1979 under the Metro Transit Operating Company Act. The 
Act was brought into force by Proclamation on January 18, 1980. 

2. Operating mandate 

The Company’s mandate is to manage, operate and maintain public passenger 
transportation systems in designated areas within the Province,, in accordance 
with annual operating agreements. Under this mandate, the Company took over 
the public passenger transportation systems and operations of the British 
Columbia Hydro and Power Authority (B.C. Hydro) in the metropolitan areas of 
Vancouver and Victoria on April 1, 1980. Effective the same date, the Company 
entered into major annual operating agreements governing the provision of 
transit services in these areas with the Urban Transit Authority of British 
Columbia, which has since September 1, 1982, been renamed British Columbia 
Transit (B.C. Transit), and the Greater Vancouver Regional District and the 
Capital Regional District. These initial agreements, which expired on March 
31, 1981, have been renewed to March 31, 1984. 

Pursuant to the provisions of its annual operating agreements, the Company 
is provided with the use of all major fixed assets, such as passenger carrying 
vehicles, land and buildings and tools and equipment, by B.C. Transit subject 
to lease fees chargeable by B.C. Transit to the Regional Districts. In 
addition, the Company acquired from B.C. Hydro certain assets, such as parts 
inventory, shop equipment, office furniture and equipment, service cars and 
trucks and computer software. The parts inventories have been recorded at 
their average cost. 

The annual operating agreements also require that all operating revenues 
collected by the Company are remitted directly to 3.C. Transit and that the 
Company’s gross operating expenditures are in turn reimbursed by B.C. Transit 
with the deficit funding shared with the Regional Districts. 

3. Summary of significant accounting policies 

a. Generally accepted accounting policies 

The Company’s accounts are prepared in accordance with generally accepted 
accounting principles including the use of the accrual method of 
accounting for operating expenditures. 

b. Inventories 

All inventories are valued at the lower of cost and replacement value. 

Cost is determined using the average cost method. 





PUBLIC ACCOUNTS 1982/83 


G 237 


Touche Ross & Co. 

Metro Transit Operating Company 
Notes to Financial Statements 

March 31, 1983 Page 2 


3. Summary of significant accounting policies (Continued) 


c. Property and equipment 


As explained in Note 2, B.C. Transit finances and owns all major assets 
utilized by the Company with recovery chargeable to the Regional 
Districts. Purchases of individual items in excess of the amounts shown 
below are accounted for as capital expenditures by B.C. Transit and 
purchases less than these amounts are expensed by the Company in the year 
of acquisition. 


Tools and shop equipment 
Furniture and office equipment 
Passenger facilities 


$ 10,000 
$ 3,000 
$ 5,000 


Maintenance and repairs expenditures are charged to operations in the year 
incurred . 


d. Pension plans 


The Company and its employees are subject to the Public Service 
Superannuation Act and current and past service costs are accrued and 
funded on a current basis. In addition, the Company by agreement accrues 
and funds on a current basis the increased costs resulting from pension 
indexing for retired B.C. Hydro public transportation employees. 


4. Contributed surplus 


The details of contributed surplus are as follows: 

Balance at beginning of year arising from assets granted 
to the Company on April 1, 1980 by B.C. Hydro (Note 2) 


$'000 

$2,781 


Contributions of assets during the year from B.C. Transit 


592 

$3,373 


5. Pension plans 

Current year's pension costs amounted to $5,431,639 (1982 - $4,772,940) and 
increased pension costs in respect of retired B.C. Hydro employees amounted to 
$812,949 (1982 - $406,435). 

6. Comparative figures 

The 1982 comparative figures have been reclassified where necessary to conform 
with current year's presentation. 


G 238 


PROVINCE OF BRITISH COLUMBIA 


OCEAN FALLS CORPORATION 


THORNE 

RIDDELL 



Chartered Accountants 


AUDITORS' REPORT 


The Lieutenant-Governor in Council 
Province of British Columbia 

We have examined the balance sheet of Ocean Falls Corporation as at December 31, 
1982 and the statements of income and deficit and changes in financial position for 
the year then ended. Our examination was made in accordance with generally 
accepted auditing standards, and accordingly included such tests and other 
procedures as we considered necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial position 
of the Corporation as at December 31, 1982 and the results of its operations and 
the changes in its financial position for the year then ended in accordance with 
the basis of accounting as described in note 1 applied consistently with that of 
the preceding year. 


-T/U* 


Vancouver, Canada 
April 18, 1983 


Chartered Accountants 


Offices throughout Canada, International Firm Klynveld Main Goerdeler 


PUBLIC ACCOUNTS 1982/83 


G 239 


OCEAN FALLS CORPORATION 

(Incorporated by Act of the Legislature of British Columbia) 
BALANCE SHEET AS AT DECEMBER 31, 1982 


ASSETS 


1982 1981 


CURRENT ASSETS 

Accounts receivable 
Inventory 
Prepaid expenses 

Current portion of mortgages receivable 


$ 56,664 

516,416 
14,843 
6,281 
594,204 


$ 500,672 

519,530 
17,176 
11,689 
1,049,067 


FIXED ASSETS (note 2) 


1,943,506 2,000,000 


MORTGAGES RECEIVABLE, less current portion 
LAND AND HOUSES HELD FOR RESALE 


156,662 245,226 

999,242 918,697 

S 3,693,614 $ 4,212,990 


LIABILITIES 


CURRENT LIABILITIES 

Bank indebtedness (note 3) 

Demand loans (note 4) 

Accounts payable and accrued liabilities 
Interest on loans from Province of British 
Co lumbia 

Accrued liabilities for costs of terminating 
operations 

Current portion of mortgages payable 


$36,338,816 

1,150,000 

243,069 

3,919,250 


$36,608,821 

500,000 

248,016 

2,436,930 


359,741 505,493 

10,188 11,045 

42,021,064 40,310,305 


LONG-TERM DEBT (note 5) 


13,070,216 13,080,403 


Total liabilities 


55,091,280 53,390,708 


CONTRIBUTED SURPLUS AND DEFICIT 


CONTRIBUTED SURPLUS 

Grant from the Province of British Columbia 
DEFICIT 


789,952 

52,187,618 

(51,397,666 ) 

S 3,693,614 


789,952 

49,967,670 
( 49, 177,7 18 ) 

$ 4,212,990 


Approved by the Board 




Di rector 


G 240 


PROVINCE OF BRITISH COLUMBIA 


OCEAN FALLS CORPORATION 
STATEMENT OF INCOME AND DEFICIT 
YEAR ENDED DECEMBER 31, 1982 


1982 


Expenses 

General and administrative 
Interest on long-term debt 
Other interest 

Adjustment to estimated costs of 
operations 

LOSS FOR THE YEAR 

Deficit at beginning of year 


$ 720,601 

1,461,080 
38,267 

terminating 


2,219,948 

49,967,670 

$52,187,618 


1981 

$ 1,149,390 
1,539,501 
2,181,102 

137,793 

5,007,786 

44,959,884 

$49,967,670 


DEFICIT AT END OF YEAR 


PUBLIC ACCOUNTS 1982/83 


G 241 


OCEAN FALLS CORPORATION 
STATEMENT OF CHANGES IN FINANCIAL POSITION 
YEAR ENDED DECEMBER 31, 1982 


WORKING CAPITAL DERIVED FROM 

Reduction of mortgages receivable 
Proceeds on sale of fixed assets 


WORKING CAPITAL APPLIED TO 
Operations 

Loss for the year 

Deduct items not involving working capital 
Loss on sale of fixed assets 
Write-down of fixed assets to net 
realizable value 

Repurchase of land and houses held for resale 
Additions to fixed assets 
Reduction of mortgages payable 


INCREASE IN WORKING CAPITAL DEFICIENCY 
WORKING CAPITAL DEFICIENCY AT BEGINNING OF YEAR 
WORKING CAPITAL DEFICIENCY AT END OF YEAR 



1982 


1981 

$ 

88,564 

$ 

102,157 


55,100 


- 


143,664 


102,157 


2,219,948 

5,007,786 

9,837 

- 

- 

78,146 

2,210,111 

80,545 

8,443 

10,187 

2,309,286 

4,929,640 
119,318 
78 ,146 
11,046 
5,138,650 

2,165,622 

5,036,493 

39,261,238 

34,224,745 

$41,426,860 

$39,261,238 


G 242 


PROVINCE OF BRITISH COLUMBIA 


OCEAN FALLS CORPORATION 
NOTES TO FINANCIAL STATEMENTS 
YEAR ENDED DECEMBER 31, 1982 


1. ACCOUNTING POLICY 

In 1980, the Government of the Province of British Columbia shut down the 
Corporation's mill operations. Accordingly, these financial statements have 
been prepared on an estimated realizable basis. This basis of presentation 
reflects assets at estimated realizable values and provides for estimated 
costs of terminating operations. 


2. FIXED ASSETS 

The fixed assets have been written down to their estimated net realizable 
value which at December 31, 1982 is $1,943,506. 


3. BANK INDEBTEDNESS 

Bank indebtedness is non-interest bearing and due on demand and is secured by 
shareholder's non-interest bearing deposits. 

4. DEMAND LOANS 

The demand loans from British Columbia Cellulose Company are partly secured 
by a debenture having a fixed charge on the real property of the corporation 
and a floating charge on all other assets of the corporation, subsequent in 
priority to long-term debt charges. 


5. LONG-TERM DEBT 



1982 

1981 

Province of British Columbia 

Interest at chartered bank prime rate 
compounded quarterly with no fixed 



terms of repayment 

Interest at 8-1/4% compounded semi-annually 

$ 5,044,453 

$ 5,044,453 

and maturing October 1984 

Interest at 9-1/10% compounded semi-annually 

2,000,000 

2,000,000 

and maturing September 1, 1985 

Interest at 9-1/4% compounded semi-annually 

2,000,000 

2,000,000 

and maturing November 1, 1985 

2,000,000 

2,000,000 

British Columbia Cellulose Company 

No interest payable since December 31, 1979 

11,044,453 

1 1 ,044,453 

and maturing June 30, 1985 

2,000,000 

2,000,000 

Mortgages payable, less current portion 

25,763 

35,950 


$13,070,216 

$13,080,403 


PUBLIC ACCOUNTS 1982/83 


G 243 


- 2 - 


LONG-TERM DEBT (continued) 

The loan from the Province of British Columbia in the amount of $5,044,453 is 
secured by a debenture having a first fixed charge on the real property of 
the corporation and a floating charge on all other assets of the corporation. 
Other loans from the Province of British Columbia are unsecured. 

The loan from British Columbia Cellulose Company is secured by a debenture 
having a second fixed charge on the real property of the corporation and a 
floating charge on all other assets of the corporation. 





























































PUBLIC ACCOUNTS 1982/83 


G 245 


PACIFIC COACH LINES LIMITED 



nee 


/aterhouse 


CHARTERED ACCOUNTANTS 


Suite 720 

880 Douglas Street 

Victoria, British Columbia V8W 2B 7 

(604) 383-4191 


July 22, 1983 


AUDITORS' REPORT 


To the Shareholder of 

Pacific Coach Lines Limited: 

We have examined the balance sheet of Pacific Coach Lines Limited as at 
March 31, 1983 and the statements of operations and retained earnings, changes in 
financial position and changes in capital replacement fund for the year then 
ended. Our examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures as we 
considered necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial position 
of the company as at March 31, 1983 and the results of its operations, the changes 
in its financial position and the changes in its capital replacement fund for the 
year then ended in accordance with generally accepted accounting principles 
applied, except for the change in the method of calculation of the capital 
replacement fund as explained in Note 1 to the financial statements, on a basis 
consistent with that of the preceding year. 



Chartered Accountants 


G 246 


PROVINCE OF BRITISH COLUMBIA 


PACIFIC COACH LIMES LIMITED 
BALANCE SHEET 


ASSETS 


APPROVED BY THE BOARD: 

\ , r r i 







Director 


Director 


March 31 


1983 


1982 


Current assets: 

Cash 

Term deposit receipts 

Sundry deposits 

Accounts receivable 

Contract adjustment due from the 


$ 552,828 

2,647,427 
136,671 
193,181 


$ 913,162 

2,103,744 
141,782 
162,099 


Province of British Columbia (Note 3) 
Materials and supplies , at the lower of 
cost and current replacement cost 

Prepaid expenses and deferred charges 

414,888 

798,737 

563,641 

975,697 

811,139 

504,966 


5,307,373 

5,612,589 

Capital replacement fund (Note 1): 

Term deposit receipts 

Accrued interest receivable 

5,225,680 

49,055 

3,969,909 

50,415 


5,274,735 

4,020,324 

Fixed assets (Note 2): 

Property and equipment 

Less: Accumulated depreciation 

7,632,503 

3,079,527 

7,588,459 

2,315,022 


4,552,976 

5,273,437 


$15,135,084 $14,906,350 


PUBLIC ACCOUNTS 1982/83 


G 247 


PACIFIC COACH LINES LIMITED 
BALANCE SHEET 


LIABILITIES 


Current liabilities: 

Accounts payable and accrued liabilities 
(Note 6) 

Deferred contract revenue 


Mortgages payable (Note 4) 


SHAREHOLDER'S EQUITY 


Share capital: 

Authori zed- 

10, 000 common shares of $1 par value 
Issued- 

2 common shares 

Excess of appraised value of assets over 
depreciated cost or nominal value, 
April 1, 1979 (Notes 2 and 5) 

Contributed surplus 

Retained earnings 


Lease commitments (Note 7) 


March 31 


1983 

1982 

$ 4,395,128 

$ 4,700,344 

266,822 

266,822 

4,661,950 

4,967,166 

250,100 

280,515 

4,912,050 

5,247,681 


2 

2 

2, 104,185 

2,686,886 

2,491,366 

2,491,366 

5,627,481 

4,480,415 

10,223,034 

9,658,669 

$15,135,084 

$14,906,350 


Subsequent events (Note 9) 


G 248 


PROVINCE OF BRITISH COLUMBIA 


PACIFIC COACH LINES LIMITED 
STATEMENT OF OPERATIONS AND RETAINED EARNINGS 


Revenue : 

Operating 

Operating contract (Note 3) 

Interest on short term deposits (Note 1) 


Operating expenses: 

Operating and maintenance 
General and administrative 
Depreciation 

Interest on long-term debt 


Net income before undernoted items 

Other income: 

Interest on the capital replacement fund 
(Note 1) 

Capital contribution from the Province 
of British Columbia 

Gain (loss) on disposal of fixed assets 


Net income for the year 

Retained earnings, beginning of year 

Transfer from excess of appraised value of 
assets over depreciated cost or nominal value, 
April 1, 1979, of amount realized through 
depreciation provisions and sale 


Year ended 

March 31 

1983 

1982 

$16,692,950 

7,816,792 

424,565 

$16,457,527 

9,907,991 

24,934,307 

26,365,518 

22,550,762 

1,553,188 

799,155 

31 ,202 

24,093,947 

1,414,756 

796,649 

60,166 

24,934,307 

26,365,518 

- 

- 

567,715 

1,048,854 

(3,350) 

201,140 

91,618 

564,365 

1,341,612 

564,365 

1,341,612 

4,480,415 

2,574,507 

5,044,780 

3,916, 119 

582,701 

564,296 

$ 5,627,481 

$ 4,480,415 


Retained earnings, end of year 


PUBLIC ACCOUNTS 1982/83 


G 249 


PACIFIC COACH LINES LIMITED 
STATEMENT OF CHANGES IN FINANCIAL POSITION 


Financial resources were provided by: 
Operations- 

Net income for the year 
Charges (credit) not affecting working 
capi tal : 

Depreciation 

Loss (gain) on disposal of fixed assets 


Proceeds on disposal of fixed assets 


Financial resources were used for: 
Capital replacement fund (Note 1) 

Increase in working capital 
Working capital, beginning of year 


Year ended March 31 


1983 


$ 564 ; 

,365 

799 . 

,155 

3. 

,350 

1,366, 

,870 

55, 

,500 

1,422, 

,370 

1,422, 

,370 

645, 

423 


$ 645,423 


1982 


$1 

,341 

,612 


796 

,649 


(91 

,618; 

2 

,046, 

,643 


213, 

,832 

2, 

,260, 

,475 

2 

,260, 

,475 


645, 

,423 

$ 

645, 

,423 


Working capital, end of year 


G 250 


PROVINCE OF BRITISH COLUMBIA 


PACIFIC COACH LINES LIMITED 


STATEMENT OF CHANGES IN CAPITAL REPLACEMENT FUND 


Year ended 

March 31 

1983 

1982 


Sources of funds (Note 1): 

Interest on the capital replacement fund (Note 1) 
Portion of contract revenue equivalent 
to depreciation expense for the year 

Proceeds on disposal of fixed assets 

Capital contribution from the Province 
of British Columbia 

$ 567,715 

799,155 

55,500 

$1,048,854 

796,649 

213,832 

201,140 


1,422,370 

2,260,475 

Uses of funds (Note 1): 

Principal payments on mortgages 

Acquisition of fixed assets 

30,415 

137,544 

242,875 

48,831 


167,959 

291,706 

Increase in fund 

1,254,411 

1,968,769 

Fund balance, beginning of year 

4,020,324 

2,051,555 

Fund balance, end of year 

$5,274,735 

$4,020,324 


PUBLIC ACCOUNTS 1982/83 


G 251 


PACIFIC COACH LINES LIMITED 

NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. Capital replacement fund: 

The capital replacement fund represents funds set aside for fixed asset 
expenditures and the retirement of related long term debt. Additions to 
the fund are represented by proceeds from the sale of fixed assets , capital 
contributions from the Province of British Columbia, a portion of 
the operating contract revenue from the Province of British Columbia equal to 
the depreciation expense for the year and interest earned on the capital 
replacement fund assets. 

Effective April 1, 1982 interest earned on investments included in working 
capital has, at the direction of the Ministry of Finance, been included in 
operating income for purposes of calculating contract revenue. In prior years 


such interest had been included in other 

income and allocated to 

the capital 

replacement fund. 



The effect of this change in policy is to 

exclude $424,565 in interest from 

capital replacement fund and reduce the contract revenue received 

from the 

Province by an equal amount. 



Fixed assets: 




March 

31 


1983 

1982 

Cost or appraised value: 



Land 

$ 792,857 

$ 792,857 

Revenue equipment 

5,979,367 

5,941,120 

Buildings 

419,551 

419,551 

Furniture and equipment 

418,586 

408,789 

Service equipment 

22,142 

26,142 


7,632,503 

7,588,459 

Less: Accumulated depreciation 

3,079,527 

2,315,022 


$4,552,976 

$5,273,437 


Revenue and service equipment acquired from British Columbia Hydro & Power 
Authority at nominal consideration on April 1, 1979 together with similar 
equipment owned at that date were appraised by Levett Inter-City Coach 
Sales Ltd. and are reflected in the accompanying financial statements at their 
fair market value as at April 1, 1979. 

The excess of appraised value of assets over depreciated cost or nominal value 
is included as a separate account under shareholder's equity (Note 5) and is 
being transferred to retained earnings on the basis of realization of 
appreciation through depreciation provisions and sales. 


G 252 


PROVINCE OF BRITISH COLUMBIA 


Notes 
Page 2 


2. Fixed assets (continued): 

The costs of major replacements, additions and improvements are capitalized 
in the fixed asset accounts. The costs of maintenance, repairs, and minor 
renewals or replacements are charged against income. On retirement or 
disposal of fixed assets , the costs thereof and the related accumulated 
depreciation are eliminated from the accounts and any gains or losses are 
reflected in the statement of operations. 

The fixed assets are depreciated on the straight-line method based on useful 
lives of 8 to 25 years. 


3. Operating contract - Province of British Columbia: 

By agreement with the Minister of Municipal Affairs the Province of British 
Columbia makes payments in an amount equal to net operating costs incurred 
during the year before interest on the capital replacement fund, gains and 
losses on fixed asset disposals and extraordinary items. As described in 
Note 1 commencing April 1, 1982 interest on investments included in working 
capital is now included in operating income for purposes of calculating 
operating contract revenue. 


4. Mortgages payable: 

The account consists of the following: 

(a) Mortgages- 

Royal Trust Company- 
11-1/4% interest, payable at $1,372 per 
month including interest and principal, up 
to and including February 1, 1984. Balance 
of principal and accrued interest due 
March 1, 1984 

Royal Trust Company- 
11-1/4% interest, payable at $1,176 per 
month including interest and principal, up 
to and including February 1, 1984. Balance 
of principal and accrued interest due 
March 1, 1984 

(b) Agreement for sale- 

Cloyne Holdings Ltd.- 
payable December 1, 1982, with interest 
at 13% per annum 


March 31 

1983 1982 


$134,669 $136,228 


115,431 116,767 


- 27,520 

$250,100 $280,515 


The mortgages are secured by certain of the company's properties. 

The aggregate future payments of principal of $250,100 will be discharged 
through the capital replacement fund in 1984. 


PUBLIC ACCOUNTS 1982/83 


G 253 


Notes 
Page 3 


Excess of appraised value of assets over depreciated cost or nominal value , 
April 1, 1979: 


(a) 

(b) 


(c) 


Revenue and service equipment owned by the 
company at March 31, 1979 

Revenue and service equipment acquired from 
British Columbia Hydro & Power Authority on 
April 1, 1979 

Parts inventory acquired from British Columbia 
Hydro & Power Authority on April 1, 1979 


Less: Amount realized through depreciation 

provisions , use or sale and transferred 
to retained earnings 

Balance, end of year 


March 31 

1983 1982 


$ 760,910 

3,583,000 

322,928 

4,666,838 

2,562,653 

$2,104,185 


$ 760,910 

3,583,000 

322,928 

4,666,838- 

1 ,979 ,952 

$ 2 , 686,886 


Pension plan: 

Prior to November 1, 1982 employees of the Company were covered under one of 

two contributory retirement plans: 

(a) Plan A, which was approved by the Government of the Province of British 
Columbia in 1976, included employees at March 31, 1979, any former 
British Columbia Hydro & Power Authority employees who wished to 
transfer to the plan upon joining the company on April 1, 1979, and any 
new employees. 

(b) Plan B, which resulted from the acquisition of the operations of Pacific 
Stage Lines, was a closed plan with membership limited to former British 
Columbia Hydro & Power Authority employees who joined the company 
April 1, 1979. 


G 254 


PROVINCE OF BRITISH COLUMBIA 


Notes 
Page 4 


6. Pension plan (continued): 

In order to standardize and consolidate the retirement benefit coverage for 
all employees, retirement Plan A was substantially amended effective 
November 1, 1982 and expanded to include the liabilities and assets 
previously accumulated under retirement Plan B. Under the consolidated plan 
the automatic indexing of pension benefits to the change in the Consumer 
Price Index has been eliminated and replaced by a new arrangement which no 
longer assures the continuation of full indexing. Henceforth the indexing 
will be limited to the lesser of the change in the Consumer Price Index and 
the amount of increase which can be provided from a special account which is 
credited with contributions of 1.6% of pensionable earnings by the employees 
and company and a portion of the investment earnings of the pension fund. 

An actuarial valuation of the liabilities of the consolidated retirement plan 
carried out as at December 31, 1981 indicated an unfunded liability for past 
service benefits of $2,589,500. During the fiscal years ended March 31, 1981 
and 1982 the company expensed in the accounts but had not paid into the 
pension trust fund amounts totalling $1,005,122 of this unfunded liability. 
The balance of the unfunded liability amounting to $1,584,378 is being 
provided for by equal annual charges of $146,000 over a period of 20 years 
commencing with the year ended March 31, 1983. 

The pension trust fund liability included in accounts payable and accrued 
liabilities is as follows: 


Unfunded past service liabilities 
Current service liabilities for 
quarter ended March 31 


March 31 

1983 1982 


$1,151,122 $1,005,122 


348,383 

$1,499,505 


268,113 

$1,273,235 


7. Lease commitments: 

The company leases certain terminal facilities and equipment under the terms 
of various lease agreements. Annual lease payments under agreements 
presently outstanding are approximately as follows: 


1984 

$ 

498, 

,885 

1985 


364, 

,945 

1986 


354, 

,145 

1987 


354, 

, 145 

1988 


354, 

,145 


$ 1 : 

,926, 

,265 


PUBLIC ACCOUNTS 1982/83 


G 255 


Notes 
Page 5 


Lease commitments (continued): 

The lease commitment includes $354,145 per annum relating to the lease of the 
Vancouver terminal. The annual rental is based on 1 % of the market value of 
the land and improvements as at January 1, 1979. The current lease which 
expires December 31, 1988 provides that there shall be an increase in rent 
effective January 1, 1984 to be based on fair market value of the land at 
that date. The lease further provides for termination by the lessee on six 
months notice in writing. Real estate values in the area have increased 
significantly as a consequence of the construction of B.C. Place. 


Income taxes: 

Since the Province of British Columbia is the sole shareholder the company is 
exempt from income taxes. 


Subsequent events: 

In the July 7, 1983 Provincial Budget the Honourable Hugh Curtis, Minister of 
Finance, announced that the government intends to give the private sector the 
opportunity to take over functions and activities not appropriate to 
government. He stated that budgetary adjustments have been made to allow for 
the facilities and activities of the company to be assumed by the private 
sector. As a result of these Budget announcements the future of the company 
and its operations are uncertain. 


G 256 


PROVINCE OF BRITISH COLUMBIA 


PACIFIC VOCATIONAL INSTITUTE 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the Board of Governors of 
the Pacific Vocational Institute, and 

To the Minister of Education 
Province of British Columbia: 


I have examined the balance sheet of the Pacific 
Vocational Institute as at 31 March 1983 and the statements 
of revenue and expenditure, changes in fund balances and 
ancillary enterprise operations for the year then ended. 
My examination was made in accordance with generally 
accepted auditing standards, and accordingly included such 
tests and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly 
the financial position of the Institute as at 31 March 1983 
and the results of its operations and the changes in its 
fund balances for the year then ended in accordance with 
generally accepted accounting principles, as modified by 
note 1(a) to the financial statements, applied, after 
giving retroactive effect to the changes in accounting 
policies described in notes 2 (a), (b), and (d), on a basis 
consistent with that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
26 May 1983 



LIABILITIES AND FUND BALANCES 


PUBLIC ACCOUNTS 1982/83 


G 257 



Chairman of the Board Executive Director The eight accompanying notes are an 

Finance and Administration (Bursar) Integral part of these financial statements, 


PACIFIC VOCATIONAL INSTITUTE 

STATEMENT OF REVENUE AND EXPENDITURE EXHIBIT B 

FOR THE YEAR ENDED MARCH 31, 1983 


G 258 


PROVINCE OF BRITISH COLUMBIA 



PACIFIC VOCATIONAL INSTITUTE 

STATEMENT OF CHANGES IN FUND BALANCES EXHIBIT C 

FOR THE YEAR ENDED MARCH 31, 1983 




expenditure (Exhibit B) S 43,126 i 29,281 t (14,906) $ (36,840) i 20,239 J (830) J (37,914) $ - i 10,545 $ (8,389) 


PACIFIC VOCATIONAL INSTITUTE 
NOTES TO FINANCIAL STATEMENT: 
MARCH 31, 1983 


PUBLIC ACCOUNTS 1982/83 


G 261 


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e) Ancill ary Enterpri ses 

Ancillary enterprises include the bookstore, student housing services, retail meat and bakery operations and are expected to 
operate on a break-even basis. These departments are assessed only direct costs associated with their operations. 


Pacific Vocational Institute 
Notes to Financial Statements 



Burnaby location - Province of British Columbia and are provided free of charge. 

Maple Ridge location - British Columbia Buildings Corporation and are provided free of charge. 

Sea Island location - Sub-leased from British Columbia Buildings Corporation at $21,744 per annum. 


Pacific Vocational Institute 
Notes to Financial Statements 
March 31, 1983 
Page 3 


PUBLIC ACCOUNTS 1982/83 


G 263 


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COMPARATIVE FIGURES 


PACIFIC VOCATIONAL INSTITUTE 

LE OF PROVINCE OF BRITISH COLUMBIA GRANTS SCHEDULE 1 

FOR THE YEAR EM) ED MARCH 31, 1983 



Youth employment 


PUBLIC ACCOUNTS 1982/83 


G 265 


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G 266 


PROVINCE OF BRITISH COLUMBIA 



Additions - Emergency Loan Fund 


PUBLIC ACCOUNTS 1982/83 


G 267 


PROVINCIAL CAPITAL COMMISSION 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the 
Provincial Capital Commission, and 

To the Minister of Finance 
Province of British Columbia: 


I have examined the balance sheet of the Provincial Capital 
Commission as at 31 March 1983, the statement of capital 
grants, capital project disbursements and appropriated 
surplus, and the statement of revenue, expenditure and 
unappropriated surplus for the year then ended. My examina- 
tion was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other 
procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Commission as at 31 March 1983 and 
the results of its operations for the year then ended in 
accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding 
year . 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
27 May 1983 



G 268 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 


PROVINCIAL CAPITAL COMMISSION 
BALANCE SHEET 
AS AT 31 MARCH 1983 


ASSETS 


1983 


1982 


Cash 

Term deposits 
Accounts receivable 
Due from the Province of 
British Columbia 
Inventory, at cost 
Prepaid expenses 
Deferred charges (note 2b) 
Donated property (note 2a) 


$ 63,447 

1 , 766,771 
140,602 


8,348 
1 1 , 805 
4,608 
1 


$1,995, 582 


$ 152,288 

1 ,750,000 
132, 857 

42,862 
7, 557 

23,063 

1 


$2, 108,628 


LIABILITIES AND SURPLUS 


Accounts payable 


$ 188,618 

$ 265,204 

Deferred rental income 


8,653 

10,741 



197,271 

275,945 

Surpl us 




Appropriated (Exhibit B 

and 



Schedule 

1 ) 

451 , 076 

801 , 060 

Unappropriated (Exhibit 

C) 

1 , 347,234 

1,031 ,622 



1 ,798,31 0 

1 , 832,682 

Contributed surplus (note 2a) 

1 

1 



$ 1 ,995, 582 

$2,108,628 


The six accompanying notes are an integral part of these 



L. J. Wallace - Deputy Chairman 


PUBLIC ACCOUNTS 1982/83 


G 269 


EXHIBIT B 

PROVINCIAL CAPITAL COMMISSION 

STATEMENT OF CAPITAL GRANTS, CAPITAL PROJECT DISBURSEMENTS AND 
APPROPRIATED SURPLUS 
FOR THE YEAR ENDED 31 MARCH 1983 


CAPITAL GRANTS 


1983 1982 


Province of British Columbia 


$440,000 $ 746,219 


CAPITAL PROJECT DISBURSEMENTS 


Municipal ities : 


Oak Bay 

- Bowker Creek 

122,029 

1 87,971 

Saanich 

- Colquitz Creek 

61 , 547 

433, 289 

Central Saanich 

- Brentwood Bay Village 

95, 200 

- 

Victor i a 

- Chinatown Development 

146,600 

148,000 


- Urban Design Proposal 

- 

20, 859 


- Arm Street Park 

120,000 

- 

Provincial Capital 

Commiss ion : 




- Crystal Garden 

- Victoria Conference 

13,107 

94,902 


and Trade Centre Site 

- 

209, 1 1 0 


- Forecourt to 




former CPR Terminal 

229,539 

12,685 



788,022 

1,106,816 


(348,022) (360,597) 

APPROPRIATED SURPLUS AT 

BEGINNING OF YEAR 801,060 610,097 

TRANSFERS TO (FROM) 

APPROPRIATED SURPLUS (note 5) (1,962) 551,560 


APPROPRIATED SURPLUS AT 

END OF YEAR - EXHIBIT A $451,076 $ 801,060 


STATEMENT OF REVENUE, EXPENDITURE AND UNAPPROPRIATED SURPLUS 


G 270 


PROVINCE OF BRITISH COLUMBIA 


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PUBLIC ACCOUNTS 1982/83 


G 271 


PROVINCIAL CAPITAL COMMISSION 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


1. THE COMMISSION 

The Provincial Capital Commission was established under the 
Provincial Capital Commission Act, subsequently revised as the 
Capital Commission Act, RSBC 1979, Chapter 42. 

The Provincial Capital 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, 

. co-ordinating construction and development work of all 
construction proposals on land controlled or owned by the 
Province in the Capital Improvement District, and 
. serving Greater Victoria through co-operation with local 
municipalities and by assistance funding to approved 
improvement and beautification projects. 


2. SIGNIFICANT ACCOUNTING POLICIES 

These financial statements have been prepared in accordance with 
generally accepted accounting principles. 

a) Donated property 

Donated property recorded at nominal value of one dollar 
represents forty-five properties transferred to the 
Commission from the Province of British Columbia as free 
Crown grants. 

The aggregate assessed value of these properties, including 
improvements made by the Commission, was $29,927,208 at 
31 December 1982. 

b) Deferred charges 

Expenditures associated with the negotiation of the Crystal 
Garden leases are amortized over five years. Expenditures 
associated with the initial advertising for the Crystal 
Garden are amortized over three years. 

c) Furnishings and equipment 

Furnishings and equipment are charged to operating expenses 
in the year of acquisition. 


G 272 


PROVINCE OF BRITISH COLUMBIA 


PROVINCIAL CAPITAL COMMISSION 
NOTES TO FINANCIAL STATEMENTS 
AS AT 31 MARCH 1983 


3. PROVINCE OF BRITISH COLUMBIA OPERATING GRANT 

Administration expenses of the Commission amounting to $304,878 
($336,325 in 1982) were paid directly by the Ministry of Finance 
from a Vote. These expenses are included in both revenue and 
expenditure on the Statement of Revenue, Expenditure and 
Unappropriated Surplus. 


4. CRYSTAL GARDEN 

The commercial operations of the Crystal Garden commenced on 
1 April 1980. Revenue and expenditure of the Crystal Garden are 
recorded in the accounts of the Commission and are reflected in 
the Commission's financial statements. 

The operations of the Crystal Garden resulted in a net loss of 
$221,129 for the year ended 31 March 1983 ($186,347 in 1982). 


5. APPROPRIATED SURPLUS 

Appropriated surplus at any time is comprised of unexpended 
amounts of Order- in-Counc il approved capital projects which are 
not yet completed. 


6. COMPARATIVE FIGURES 

Certain 1982 comparative figures have been reclassified to 
conform with the financial statement presentation adopted for 
1983. 


PUBLIC ACCOUNTS 1982/83 


G 273 


PROVINCIAL CAPITAL COMMISSION 
SCHEDULE OF PROJECT APPROPRIATIONS 
AS AT 31 MARCH 1983 


SCHEDULE 1 


Project 

No . Project Description 


Unexpend ed 

Total Total Balance 

Author i zed Expenditures Appropr iated 


Municipality Projects 


79 

Colquitz Creek 

$ 774,847 

$ 539,392 

$ 235,455 

85 

Re ay Creek 

2, 845 

- 

2, 845 

Provincial Capital Commission 

Proj ects 



84 

Forecourt to former 

C. P. R. Terminal 

455,000 

242, 224 

212,776 


EXHIBIT A 


$1,232,692 $ 781,616 $ 451,076 


PROVINCIAL CAPITAL COMMISSION 


G 274 


PROVINCE OF BRITISH COLUMBIA 


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EXHIBIT C $ 490,062 $ 824,936 $ 1 , 314,998 $ 1 , 234,973 


PUBLIC ACCOUNTS 1982/83 


G 275 


PROVINCIAL RENTAL HOUSING CORPORATION 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Shareholder of the Provincial Rental Housing 
Corporation, and 

To the Minister of Lands, Parks and Housing 
Province of British Columbia: 


I have examined the statement of financial position of the 
Provincial Rental Housing Corporation as at 31 December 1982 
and the statements of accumulated return of investment and 
changes in financial position for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and 
other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Corporation as at 31 December 1982 
and the accumulated return of its investment and the changes 
in its financial position for the year then ended in 
accordance with generally accepted accounting principles, as 
modified by note 2 (b) to the financial statements, applied on 
a basis consistent with that of the preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, B.C. 
6 June 1983 


G 276 


PROVINCE OF BRITISH COLUMBIA 


PROVINCIAL RENTAL HOUSING CORPORATION 
STATEMENT OF FINANCIAL POSITION 
AS AT DECEMBER 31, 1982 


ASSETS 


1982 

CURRENT ASSETS 


Cash 

Short-term deposits 
Amortization revenue receivable 
Prepaid expenses and sundry accounts 


$ 

8,546,159 

24,809 


8,570,968 


INVESTMENT IN RENTAL HOUSING (note 3) 


Properties eligible for Federal loans 
Provincial share of joint "Federal/ 
Provincial properties 


64,033,927 

24,916,155 


Less - accumulated return of 
investment (Exhibit B) 


88,950,082 

11,567,179 


77,382,903 


Approved by the Board: 



integral part of these financial 

statements. $85,953,871 


EXHIBIT A 


1981 

$ 195,364 

5,200,000 
8,084,330 
31 ,224 

13,510,918 

64,033,927 
24,911 ,530 
88,945,457 
10,542,333 
78,403, 124 


$91 ,914,042 


PUBLIC ACCOUNTS 1982/83 


G 277 


EXHIBIT A 


PROVINCIAL RENTAL HOUSING CORPORATION 
STATEMENT OF FINANCIAL POSITION 
AS AT DECEMBER 31, 1982 


LIABILITIES 


1982 

CURRENT LIABILITIES 

Interest payable and accrued $10,303,166 

Current portion of long-term debt 1 18,572 

10,421,738 


LONG-TERM DEBT (note 4) 


Province of British Columbia 

9.75% Debenture 28,236,399 

Debenture mortgage loans - 
Canada Mortgage and Housing 

Corporation 46,711,784 

74,948,183 

Less - current portion as above 1 18,572 

74,829,61 1 
85,251 , 349 


1981 

$15,883,744 

427,454 

16,311,198 


28,188,538 

47 , 1 39,238 

75,327,776 

427,454 

74,900,322 

91,211, 520 


SHAREHOLDER'S EQUITY 

SHARE CAPITAL 

Authorized 10,000 common shares 
of no par value 
Issued and fully paid 

- 3 shares 3 

CONTRIBUTED SURPLUS 669,076 

RETAINED EARNINGS 33,443 

702,522 


3 

669,076 

33,443 

702,522 


$85,953,871 


$91 ,914,042 


G 278 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT B 


PROVINCIAL RENTAL HOUSING CORPORATION 
STATEMENT OF ACCUMULATED RETURN OF INVESTMENT 
FOR THE YEAR ENDED DECEMBER 31, 1982 


REVENUE 

Amortization revenue 
Interest revenue 


EXPENSES 

Interest on long-term debt 

Insurance 

Administration 


EXCESS OF REVENUE OVER EXPENSES 

GAIN ON DISPOSAL OF RENTAL 
HOUSING PROPERTIES 

RETURN OF INVESTMENT FOR THE YEAR 

BALANCE AT BEGINNING OF YEAR 


1982 1981 


$ 8,546,159 
26,226 

$ 8,584,330 
211,130 

8,572,385 

8,795,460 

7,482,512 

45,618 

19,409 

7,522,343 

47,839 

37,532 

7,547,539 

7,607,714 

1 ,024,846 

1 , 187,746 

_ 

180,212 

1 , 024,846 

1 , 367,958 

10,542,333 

9,174,375 

$11,567,179 

$10,542,333 


BALANCE AT END OF YEAR (Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


G 279 


EXHIBIT C 


PROVINCIAL RENTAL HOUSING CORPORATION 
STATEMENT OF CHANGES IN FINANCIAL POSITION 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1982 1981 


FUNDS WERE PROVIDED BY: 


Return of investment for the year 

Item not affecting working capital 

Gain on disposal of rental 
housing properties 

$1,024,846 

$ 1 , 367,958 

180,212 

Provided from return of investment 
Proceeds on disposal of investment 
in rental housing 

Advances from the Province of B.C. 

1 ,024,846 

47,861 

1 , 1 87,746 

535,001 

23,013 


1 ,072,707 

1 , 745,760 

FUNDS WERE APPLIED TO: 



Cost adjustments to rental properties 
Reduction in long-term debt 

4,625 

118,572 

23,013 

427,454 


123,197 

450,467 

INCREASE IN WORKING CAPITAL 

949,510 

1 , 295,293 

WORKING CAPITAL DEFICIENCY AT 

BEGINNING OF YEAR 

2,800,280 

4,095,573 

WORKING CAPITAL DEFICIENCY AT 

END OF YEAR 

$1,850,770 

$2,800,280 


G 280 


PROVINCE OF BRITISH COLUMBIA 


PROVINCIAL RENTAL HOUSING CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1. THE CORPORATION 


The Provincial Rental Housing Corporation is incorporated 
under the Company Act of the Province of British Columbia, 
and is a Housing Corporation and an agent of the Crown. 

The Corporation is wholly owned by the Province of British 
Columbia . 

2. SIGNIFICANT ACCOUNTING POLICIES 


a) Amortization Revenue 

The statements do not reflect the rental revenue earned by 
the investment in rental housing. However, an amount of 
amortization revenue is charged annually to British 
Columbia Housing Management Commission which manages the 
rental housing units of the Corporation. The amortization 


PUBLIC ACCOUNTS 1982/83 


G 281 


PROVINCIAL RENTAL HOUSING CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


revenue charged to the Commission is determined by 
agreement between the Federal/Provincial Authorities which 
subsidize the operating deficits of these low income/ 
senior citizen housing facilities. 

b) Investment in Rental Housing 

Investment in rental housing is stated at cost less 
accumulated return of investment. The accumulated return 
of investment, representing the excess of amortization and 
other revenue over interest and other expenses, is treated 
as a reduction, in lieu of depreciation, in the carrying 
value of investment in rental housing. The reduction is 
expected to recover the capital costs of the project in 
approximately fifty years. 


G 282 


PROVINCE OF BRITISH COLUMBIA 


PROVINCIAL RENTAL HOUSING CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


3. INVESTMENT IN RENTAL HOUSING 

At December 31, 1982 the investment of the Corporation in 
subsidized rental housing amounted to $88,950,082, comprising 
98 projects containing 7,844 rental units. 

As at December 31, 1982 the official transfer of title to the 
Corporation of the whole of its interest in joint Federal/ 
Provincial properties and part of properties eligible for 
Federal loans had not been completed. 

4. LONG TERM DEBT 


a) Province of British Columbia 9.75% Debenture 

The debenture is repayable on demand and is secured by a 
first floating charge on all the property, assets and 
undertakings of the Corporation. 


PUBLIC ACCOUNTS 1982/83 


G 283 


PROVINCIAL RENTAL HOUSING CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


4. b) Debenture Mortgage Loans 

The debenture mortgage loans are repayable to the Canada 
Mortgage and Housing Corporation over terms up to fifty 
years. These loans bear interest at rates from 8% to 
10.75% and are secured by unregistered first mortgages on 
properties with a carrying value of $56,792,983. 

The aggregate repayments of principal required to meet 
debt obligations in each of the next five years are as 
fol lows : 


1983 

$118,572 

1984 

$ 81,910 

1985 

$ 90,040 

1986 

$ 99,168 


1987 


$109,024 


G 284 


PROVINCE OF BRITISH COLUMBIA 


PROVINCIAL RENTAL HOUSING CORPORATION 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 1982 


5. COMPARATIVE FIGURES 


The 1981 comparative figures in the Statement of Changes in 
Financial Position are restated to conform with the statement 
presentation for the year ended December 31, 1982. 


PUBLIC ACCOUNTS 1982/83 


G 285 


QUEEN S PRINTER 


QUEEN’S PRINTER 


REPORT OF THE COMPTROLLER GENERAL 


The financial statements of the Queen's Printer have been prepared 
from, and accurately reflect, the financial records of the Government 
of British Columbia. Although an auditor's opinion has not been 
expressed on these financial statements, the accounts of the Queen's 
Printer have been examined as part of the audit of the Government's 
accounts . 



D.B. Marson 
A/Comptroller General 


Victoria, British Columbia 
September 30, 1983 


10 


G 286 


PROVINCE OF BRITISH COLUMBIA 


MINISTRY OF PROVINCIAL SECRETARY AND GOVERNMENT SERVICES 
QUEEN’S PRINTER PROGRAM 

BALANCE SHEET AS AT MARCH 31, 1983 


ASSETS 

Inventory 

Materials 

Work in Progress 


Accounts Receivable 

Accounts Receivable — Net of Deposit Accounts 

Fixed Assets 

Plant and Equipment 

Less — Reserve for Depreciation 


Total Assets 
LIABILITIES 

Queen’s Printer Operating Account 
TOTAL LIABILITIES 


1983 

1982 

$ 

$ 

1,899,622.88 

1,735,031.62 

150,658.73 

393,757.42 

2,050,281.61 

2,128,789.04 

208,826.69 

335,056.84 

3,217,515.67 

2,914,210.30 

3,217,514.67 

2,914,209.30 

1.00 

1.00 

2,259,109.30 

2,463,846.88 

2,259,109.30 

2,463,846.88 

2,259,109.30 

2,463,846.88 


PUBLIC ACCOUNTS 1982/83 


G 287 


MINISTRY OF PROVINCIAL SECRETARY AND GOVERNMENT SERVICES 
QUEEN’S PRINTER PROGRAM 


STATEMENT OF REVENUE AND EXPENDITURE 
FOR THE TWELVE MONTHS ENDED MARCH 31, 1983 


REVENUE 

Gross Sales 

Less Refunds 

Net Sales 

COST OF SALES 
TOTAL COST OF SALES 
GROSS PROFIT 

EXPENDITURE 

Contract for Services 

British Columbia Buildings Corporation Charges. 

Salaries 

Office Expense 

Factory Expense 

Equipment Purchases 

Employee Benefits 

Miscellaneous Expenses 

Bad Debt Expense 

Travel Expense 

TOTAL EXPENSES 

Net Profit From Operations 

Miscellaneous Income 


1983 

$ 

24,637,323.77 

8,352.49 

24,628,971.28 

21,258,091.94 

3,370,879.34 


794,346.00 

1,383,849.45 

194,312.82 

217,844.46 

303,305.37 

81,369.44 

221,181.21 

74.00 

5,692.51 

3,201,975.26 

168.904.08 
14,890.00 

183.794.08 


1982 

$ 

26,005,363.32 

10,574.17 

25,994,789.15 

22,613,397.38 

3,381,391.77 


21,278.50 

1,197,808.89 

124,247.26 

310,628.44 

592,952.60 

85,461.17 

34,099.70 

819.49 

7,262.62 

2,374,558.67 

1.006.833.10 
935.00 

1.007.768.10 


TOTAL PROFIT FOR THE YEAR 


G 288 


PROVINCE OF BRITISH COLUMBIA 


SCIENCE COUNCIL OF BRITISH COLUMBIA 


Coopers 

&Lybrand 


chartered accountants 


a member firm of 

Coopers & lybrand (international) 


AUDITORS' REPORT 

TO THE MINISTER OF UNIVERSITIES, 
SCIENCE AND COMMUNICATIONS 


We have examined the balance sheet of The Science Council of British Columbia 
and Secretariat on Science, Research and Development as at March 31, 1983 and 
the statements of research appropriations, expenditures and unexpended 
appropriations and operations appropriations, expenditures and unexpended 
appropriations for the year then ended. Our examination was made in 
accordance with generally accepted auditing standards, and accordingly 
included such tests and other procedures as we considered necessary in the 
circums tances . 

In our opinion, these financial statements present fairly the financial 
position of the Council and Secretariat as at March 31, 1983 and the results 
of their operations for the year then ended in accordance with generally 
accepted accounting principles, as modified by note 1 to the financial 
statements, applied on a basis consistent with that of the preceding year. 



Vancouver, B.C. 
May 6, 1983 


PUBLIC ACCOUNTS 1982/83 


G 289 


THE SCIENCE COUNCIL OF BRITISH COLUMBIA 
AND SECRETARIAT ON SCIENCE, RESEARCH AND DEVELOPMENT 
BALANCE SHEET AS AT MARCH 31, 1983 


ASSETS 

1983 1982 

$ $ 

CASH AND SHORT-TERM DEPOSITS 5,059,083 5,567,541 

ACCOUNTS RECEIVABLE 50,259 58,812 

PREPAID EXPENSES 4, 640 1 ,991 

5,113,982 5,628,344 


LIABILITIES 


ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 


42,670 


145,973 


UNEXPENDED APPROPRIATIONS 


RESEARCH (note 2h 
OPERATIONS 

COMMITMENTS (note 2) 


4,938,786 

5,335,564 

132,526 

1 46,807 

5,071 ,312 

5,482,371 

5,1 13,982 

5,628,344 


APPROVED BY THE COUNCIL AND SECRETARIAT 




lo L 


G 290 


PROVINCE OF BRITISH COLUMBIA 


THE SCIENCE COUNCIL OF BRITISH COLUMBIA 
AND SECRETARIAT ON SCIENCE, RESEARCH AND DEVELOPMENT 
STATEMENT OF RESEARCH APPROPRIATIONS, EXPENDITURES 
AND UNEXPENDED APPROPRIATIONS 
FOR THE YEAR ENDED MARCH 31, 1983 


1983 1982 

$ $ 

RESEARCH APPROPRIATIONS 


Grants 

3,834,750 

5,380,872 

Interest 

734, 235 

697,955 


4, 568,985 

6,078,827 

RESEARCH EXPENDITURES 



Direct expenses and other 

Graduate Research Engineering And 

5,495 

6,564 

Technology (GREAT) awards (see Schedule) 

928,041 

317,831 

Grants (see Schedule) 

3,842,097 

3,311,810 

Honoraria 

1 1 ,600 

7,900 

Industrial Post-Doctoral Fellowships (IPDF) 



(see Schedule) 

25,250 

104,000 

Public events (note 3) 

57,625 

96,628 

Science and Engineering awards 

14,968 

14,918 

Special requests (see Schedule) 

73,120 

25,000 

Special projects (see Schedule) 

7,567 



4,965,763 

3,884,651 

EXCESS (DEFICIENCY) OF APPROPRIATIONS 

OVER EXPENDITURES FOR THE YEAR 

(396,778) 

2,194, 1 76 

UNEXPENDED APPROPRIATIONS - BEGINNING OF YEAR 

5,335,564 

3,141 ,388 

UNEXPENDED APPROPRIATIONS - END OF YEAR 
(encumbered by outstanding commitments) (note 2) 

4,938,786 

5,335,564 


Coopers 

&Lybrand 


PUBLIC ACCOUNTS 1982/83 


G 291 


THE SCIENCE COUNCIL OF BRITISH COLUMBIA 
AND SECRETARIAT ON SCIENCE, RESEARCH AND DEVELOPMENT 
STATEMENT OF OPERATIONS APPROPRIATIONS, EXPENDITURES 
AND UNEXPENDED APPROPRIATIONS 
FOR THE YEAR ENDED MARCH 31, 1983 


OPERATIONS APPROPRIATIONS 
Grants 

Methane conference 
Interest 

EXPENDITURES 

Computer services 
Consulting fees 
Furniture and equipment 
Information services 
Leasehold improvements 
Meetings 

Personnel recruitment 
Photocopying and printing 
Postage and courier 
Professional fees 
Publications 
Rent 

Salaries and employee benefits 
Stationery and supplies 
Telephone 
Travel 


Other 

Cedar oil marketing study 
Chinese international exchange 
Methane conference 
Public events (note 3) 


RECOVERY OF EXPENDITURES 

British Columbia Health Care Research Foundation 
Cedar oil marketing study 
Chinese international exchange 
Other 


EXCESS OF EXPENDITURES OVER APPROPRIATIONS 
FOR THE YEAR 

UNEXPENDED APPROPRIATIONS - BEGINNING OF YEAR 
UNEXPENDED APPROPRIATIONS - END OF YEAR 


1 983 

$ 


374, 

,576 

12, 

, 234 

386, 

,81 0 

4, 

,421 

20, 

,452 

19, 

,068 

21 , 

,446 

2, 

,838 

1 , 

,459 

29, 

,239 

9, 

,849 

6, 

,740 

1 , 

,663 

54, 

,839 

261 , 

,380 

3, 

,999 

12 , 

,935 

1 1 , 

, 508 

461 , 

,836 

2, 

,062 


2, 

,062 

463, 

,898 

47, 

,258 

15, 

,549 

62, 

,807 

(14, 

,281 ) 

146, 

,807 

132, 

,526 


1982 

$ 

340,524 
79,074 
42, 308 

461 ,906 


13,236 
45,415 
21 , 798 
82,398 
1 ,989 
1 ,625 
34,059 
7,376 
11,285 
2,1 34 
18,061 
204,446 
2,954 
7,690 
7,759 

462,225 


43,257 
98,868 
79,074 
4, 797 

225,996 

688, 221 


28,595 

44,560 

94,628 

25,164 

192,947 


(33,368) 

180,175 

146,807 


I Coopers 
| &Ly6rand 


G 292 


PROVINCE OF BRITISH COLUMBIA 


THE SCIENCE COUNCIL OF BRITISH COLUMBIA 


AND SECRETARIAT ON SCIENCE, RESEARCH AND DEVELOPMENT 


NOTES TO FINANCIAL STATEMENTS 


FOR THE YEAR ENDED MARCH 31, 1983 


2 . 


3. 


ACCOUNTING POLICIES 
Fixed Assets 

Fixed assets are not capitalized and depreciated as assets of the 
Council and Secretariat, but are written off in the period in which they 
are purchased. 

Research Grants 

Outstanding research grant commitments are conditional on receipt of 
satisfactory progress reports and are not recorded until actually 
disbursed . 


RESEARCH GRANT COMMITMENTS (see Schedule) 

During the year, the Council approved funding for research projects, 
awards, special requests and special projects totalling $5,872,737. At 
March 31, 1983, known outstanding commitments totalled $4,720,765 which, 
together with additional estimated renewed commitments of $2,242,731 
amount to $6,963,496 in known and estimated outstanding commitments. 

During the year the Council entered into an agreement whereby it shares 
certain costs associated with The Innovation Co-ordinator with The 
Discovery Foundation. 

PUBLIC EVENTS 

During the year, the Council was involved in public events for the 
promotion of awareness of science and research in British Columbia. The 
three major events during the year ended March 31, 1983 were Discovery 
Fair, Innovation Fair and the travelling film production, Images for 
Tomorrow . 


LEASE COMMITMENT 

The Council is committed to an annual rental of $55,672 under a lease 
agreement which expires on March 31, 1984. 


2 . 


3. 



I Coopers 
| Alyoiand 


PUBLIC ACCOUNTS 1982/83 


G 293 



Aqua Culture Study 75,000 


G 294 


PROVINCE OF BRITISH COLUMBIA 


SIMON FRASER UNIVERSITY 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the Board of Governors of 
Simon Fraser University, and 

To the Minister of Universities, Science and Communications 
Province of British Columbia: 


I have examined the balance sheet of Simon Fraser University as 
at 31 March 1 983 and the statements of revenue and expenditure 
and changes in fund balances, expenditures by fund, changes in 
appropriated fund balances, ancillary enterprise operations and 
changes in net investment in land, buildings and equipment for 
the year then ended. My examination was made in accordance with 
generally accepted auditing standards, and accordingly included 
such tests and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the University as at 31 March 1983 and the 
results of its operations and the changes in its fund balances 
for the year then ended in accordance with accounting principles 
generally accepted for universities, applied, after giving 
retroactive effect to the change in the method of recording 
revenue for sponsored research projects as explained in Note 
1(f) to the financial statements, on a basis consistent with 
that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
10 June 1983 


PUBLIC ACCOUNTS 1982/83 


G 295 



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SIMON FRASER UNIVERSITY Exhibit B 


G 296 


PROVINCE OF BRITISH COLUMBIA 



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Net increase (decrease) during 

the year (596) (507) 1 33 69 764 966 434 464 420 ( 121 ) (210) 

Fund balances, April 1 1 ,901 2,408 1,154 277 1 ,003 2,434 2,726 2 01 0 1 > 590 2,143 2,353 

Adjustments due to change in ’ 

accounting policy - (Note If) (726) 


PUBLIC ACCOUNTS 1982/83 


G 297 



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Memberships 65 
Internal cost allocations (53) 
External cost recoveries (2,393) 



Exhibit D 


G 298 


PROVINCE OF BRITISH COLUMBIA 


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Capital Fund 

Provision for authorized projects (Exhibit A) $1,825 $1 ,284 $ 959 $1,500 


SIMON FRASER UNIVERSITY 
Statement of Ancillary Enterprise Operations 


PUBLIC ACCOUNTS 1982/83 


G 299 




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G 300 


PROVINCE OF BRITISH COLUMBIA 


Exhibit F 


SIMON FRASER UNIVERSITY 

Statement of Changes in Net Investment in Land, Buildings and Equipment 

For the Year Ended March 31, 1983 

( thousands of doll ars ) 



1983 

1982 




Increases in net investment during the year: 

Additions to land, buildings and equipment 
Sinking fund payments - 

British Columbia Educational Institutions 

$13,086 

$ 8,956 

Capital Financing Authori ty 

628 

402 

Interest earned on the sinking fund 

Principal repayments - Canada Mortgage and 

205 

144 

Housing Corporation debentures 

24 

23 

Decreases in net investment during the year: 
Increase in long term debt - 
British Columbia Educational Institutions 

13,943 

9,525 

Capital Financing Authori ty 

8,987 

9,708 

Interim financing on projects 

1 ,915 

(2,331 


10,902 

7,377 

Net increase during the year 

3,041 

2,148 

Net investment in land, buildings and 

equipment, April 1, 1982 

58,457 

56,309 

Net investment in land, buildings and 

equipment, March 31 , 1 983 (Exhibit A) 

$61 ,498 

$58,457 


PUBLIC ACCOUNTS 1982/83 


G 301 


SIMON FRASER UNIVERSITY 
Notes to Financial Statements 

March 31, 1983 


Significant Accounting Policies 

These financial statements have been prepared in accordance wi tlv accounting 
principles generally accepted for universities. The significant accounting 
policies followed by Simon Fraser University include: 

(a) Fund Accounting 

The University accounts are maintained in conformity with fund 
accounting procedures in order to recognize restrictions imposed 
on the use of resources. Under these procedures resources are 
classified into funds in accordance with objectives authorized 
by the Board of Governors or otherwise specified. Funds have 
been combined into the following major groups: 

- General purpose operating funds comprise revenues used 
in the general operations of the University. 

- Specific purpose operating funds consist of grants and 
donations for designated projects and the income earned 
on endowment funds. 

- Endowment funds are received or appropriated with the 
stipulation the principal will be invested and the 
related earned income will be expended for specific 
purposes. 

- Capital funds comprise amounts received for the purchase 
of capital assets as described in note 1 (b). 

(b) Land, Buildings and Equipment 

Construction costs for buildings and other facilities, including 
original equipment and furniture, major renovation costs, and 
new equipment funded under the Educational Institution Capital 
Finance Act are capitalized in the Capital Fund. Replacement 
equipment and furniture, new equipment not specified above, and 
minor renovations are expensed as the costs are incurred in 
the various funds. 

No provision is made for depreciation of buildings and equipment. 


2 


G 302 


PROVINCE OF BRITISH COLUMBIA 


2 - 


(c) Inventories 

Inventories of supplies are stated at cost. Inventories of 
merchandise held for resale are stated at the lower of cost 
and net realizable value. 

(d) Ancillary Enterprise Operations 

Ancillary enterprises provide goods and services to the 
University community on a charge-for-servi ce basis. They 
include campus food service, which is operated by a contractor, 
residences and bookstore. Expenses include direct operating 
costs and payments of interest and principal on debentures 
relating to the residences. No administrative overhead has 
been appl ied. 

(e) Other 

Library books and periodicals are expensed in the year of 
acquisition. 

Leases of a capital nature are expensed in the Operating 
Fund as payments are made. 

Employee vacation pay entitlements are not accured. 

(f) Change in Accounting Policy 

In prioryears, expenditures on individual sponsored research 
projects in excess of funds received in the year were recorded 
as receivables and revenue. This policy has been changed in the 
current year to net over and under expenditures on individual 
projects by sponsoring entity. The cumulative effects of this 
change ($726,000) are shown as reductions of accounts receivable 
and the specific purpose fund at March 31, 1982. This change in 
accounting policy has had no material effect on the comparative 
revenue amounts and accordingly the 1982 revenue has not been 
restated. 

2. Short Term Financing - Capital Fund 

The interim financing of capital construction projects is authorized 
under the provisions of the Educational Institution Capital Finance 
Act. Bank loans are retired from the proceeds of long term debt issued 
under the authority. of the Act. Accounts and holdbacks payable and 
commitments under building and other contracts will be financed similarly 
in the next fiscal year. 

Accounts payable and receivable include accrued interest in the amount 
of $1,329,000 (1982 - $841,000) on short and long term borrowings. The 
interest will be received from the Province of British Columbia in the 
next fiscal year. 


3 


PUBLIC ACCOUNTS 1982/83 


G 303 


3 . Long Term Debt 


A. Canada Mortgage and Housing Corporation 


Maturi ty 
Date 


Interest Balance Outstanding Annual Payments 

Rate March 31/83 March 31/82 Including Interest 


( thousands of doll ars ) 


Jan 1 , 

; 2017 

5 . 375% 

$ 193 

$ 195 

$ 12 

Jan 2 . 

, 2018 

5.875T 

960 

968 

65 

Jul 1 , 

, 2019 

6 .875/1 

2,272 

2,286 

171 

To tal 

( Exhi bi 

t A) 

$3,425 

$3,449 

$248 


The debentures are secured by a floating charge on the student residences. 
B. Capital Financing Authority 





Sinking 

Balance 

Outstanding 


Maturi ty 

Interest 

Face 

Fund 

March 31 

March 31 

Annual 

Date 

Rate 

Val ue 

Bal ance 

1983 

1982 

Payment: 




( thousands of dol 1 ars ) 


Dec 1 , 1986 

16.875% 

$ 292 

$ 20 

$ 272 

$ 292 

$ 72 

Jun 9, 1998 

9.41 

2,000 

326 

1 ,674 

1 ,755 

237 

Jan 10, 1999 

9.82 

2,000 

262 

1 ,738 

1 ,816 

245 

Mar 9, 1999 

10.16 

3,700 

453 

3,247 

3,381 

466 

Apr 10, 1999 

10.26 

800 

99 

701 

730 

102 

Nov 9, 1999 

10.68 

3,700 

338 

3,362 

3,486 

485 

Mar 10, 2000 

12 .74 

2 ,000 

187 

1 ,813 

1 ,879 

304 

Sep 10, 2000 

12 .55 

2,100 

128 

1 ,972 

2,040 

315 

Mar 10, 2001 

13.13 

210 

12 

198 

204 

33 

Apr 10, 2001 

1 3.66 

2,500 

63 

2,437 

2,500 

396 

May 8, 2001 

13.69 ' 

2,280 

57 

2,223 

2,280 

362 

Jul 10, 2001 

14.81 

1 ,880 

46 

1 ,834 

1 ,880 

320 

Oct 9, 2001 

17.00 

1 ,000:.. 

23 

977 

1 ,000 

1 92 

Mar 10, 2002 

16.10 

1 ,756 

39 

1 ,717 

1 ,756 

321 

May 10, 2002 

15.25 

1 ,980 . 


1 ,980 


345 

Jun 10, 2002 

14.96 

1 ,000 


1 ,000 


1 71 

Aug 10, 2002 

16.53 

1 ,400 


1 ,400 


252 

Oct 8, 2002 

14.16 

2 ,000 


2,000 


327 

Nov 10, 2002 

13.43 

1 ,607 


1 ,607 


2 C ' ] 

Dec 10, 2002 

12 .01 

1 ,000 


1 ,000 


1-2 

Total ( Exhi bi t A) 

$35,205 

$2,053 

$33,1 52 

$24,999 

$5,348 


4 


G 304 


PROVINCE OF BRITISH COLUMBIA 


Annual payments consist of interest and sinking fund payments. 

Payments made in 1982/83 totalled $4,192,000 (1981/82 $2,794,000). 

The payments to the sinking fund are based on the discounted 
present values required to fund fully the repayment of the debt 
by respective maturity dates. The sinking fund balance consists 
of total sinking fund installments to March 31, 1 983 plus interest 
earned thereon. Sinking fund payments, which are financed by the 
Province of British Columbia, made during 1982/83 amounted to 
$628,000 (1981/82 $402,000). Earned interest thereon recorded for 
1982/83 is $205,000 (1981/82 $144,000). 

The long term debt includes $234,000 repayable in U.S. funds. 

This amount was recorded at the Canadian equivalent as at the date 
of receipt and is currently shown at $272,000 Canadian. If this 
amount were based on the exchange rate prevailing on March 31, 1983 
the Canadian equivalent would be $290,000. 

4 . Commitments - Capital Fund 

Total commitments under contracts for capital projects amount to $2,600,000 
as at March 31, 1 983 (March 31 , 1 982 $5,871 ,000) of which $2,398,000 are to 
be financed under the Educational Institution Capital Finance Act. 

5 . Academic Pension Plan 

Amendments to the Academic Pension Plan effective July 1, 1981 included 
provision for further contributions to the Formula Retirement Benefit 
Account . 

An actuarial valuation as at January 1 , 1 983 estimated as resultant 
potential underfunding in the amount of $2,51 3,000 if the actuarial 
assumptions are realized. The reserve has been increased by $500,000, 
which brings the total including interest on previous balances, to 
$1 ,070,000 as at March 31, 1 983. 

6 . Restatement of Comparative Figures 

Certain 1982 figures in the financial statements have been restated in 
order to conform with the financial statement presentation adopted in 1 983. 
There was no effect on the fund balances except as disclosed in Note If. 


PUBLIC ACCOUNTS 1982/83 


G 305 


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Internal cost all ocations 3,076 249 14 35 (4,855) 1,428 (53) (33) 

External cost recoveries (13) (155) (558) (401) (810) (456) (2,393} (2,106) 


SIMON FRASER UNIVERSITY 
Schedule of Academic Expenditures 
For the Year Ended March 31, 1983 
(thousands of dollars) 


G 306 PROVINCE OF BRITISH COLUMBIA 


:hedule 2 

?ndi tures 

1982 

$ 526 

1 ,106 

1 ,842 
2,561 

1 ,437 

1 ,397 

1 ,934 
727 
774 
2,263 

1 ,094 

15,661 

2,757 

5,516 

146 

374 

1 ,776 

1 ,069 
2,612 

1 ,661 
397 

1 ,701 

9,590 

436 

4,731 

4,004 

2,514 

2,750 

457 

131 

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PUBLIC ACCOUNTS 1982/83 


G 307 


SURREY FARMS PRODUCTS INVESTMENTS LTD. 


Touche Ross & Co. 


Chartered Accountants 


AUDITORS' REPORT 


The Shareholder , 

Surrey Farm Products Investments Ltd. 

We have examined the balance sheet of Surrey Farm Products Investments Ltd. as 
at March 31, 1983 and the statements of loss and deficit for the year then 
ended. Our examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures as we 
considered necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial position 
of the company as at March 31, 1983 and the results of its operations for the 
year then ended, in accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding year. 


Vancouver, B.C., 
June 3, 1983. 



Chartered Accountants 





700 -1177 WEST HASTINGS STREET VANCOUVER. BRITISH COLUMBIA V6E 2L2 
TELEPHONE > 604 i 669 3343 — TELEX 04-51293 


G 308 


PROVINCE OF BRITISH COLUMBIA 


Touche Ross & Co. 


SURREY FARM PRODUCTS INVESTMENTS LTD. 
(Incorporated under the Company Act of British Columbia) 


BALANCE SHEET AS AT MARCH 31, 1983 


ASSETS 

Current 

Cash 

Term deposits 

Accrued interest receivable 


1983 1982 

$ 179 $ - 

2,712 4,038 

464 


$ 2,891 $ 4,502 


LIABILITIES 


Current 

Accounts payable and accrued liabilities 


$ - $ 500 


SHAREHOLDERS' EQUITY 


Capital stock 
Authorized 

12,600 $2.75 cumulative, redeemable, 
preferred shares, Series A 
par value $50 each 

150,000 common shares of no par value 
Issued and fully paid 

11,027 preferred shares 
101,750 common shares 


Deficit 


551. 

,350 

551, 

,350 

41, 

,155 

41, 

,155 

592, 

,505 

592, 

,505 

(589, 

,614) 

(588, 

,503) 

$ 2, 

,891 

$ 4, 

,502 


Approved by t the/ Director 

! / t I i U 


Director 



See accompanying notes to financial statements. 


PUBLIC ACCOUNTS 1982/83 


G 309 


Touche Ross & Co. 


SURREY FARM PRODUCTS INVESTMENTS LTD. 

STATEMENT OF LOSS 
FOR THE YEAR ENDED MARCH 31, 1983 


Income 

1983 

1982 

Interest income 

$ 752 

$8,418 


Expenses 



Accounting and audit 

350 

325 

Consulting fees 

- 

1,967 

Legal 

646 

188 

Miscellaneous 

- 

1,000 

Records storage 

867 

820 


1,863 

4,300 

Net loss (income) for the year 

$1,111 

($4,118; 





See accompanying notes to financial statements 


G 310 


PROVINCE OF BRITISH COLUMBIA 


Touche Ross & Co. 

SURREY FARM PRODUCTS INVESTMENTS LTD. 

STATEMENT OF DEFICIT 
FOR THE YEAR ENDED MARCH 31, 1983 


Deficit at beginning of year 
Net loss (income) for the year 


Distribution of funds to Her Majesty the Queen 
In Right of the Province of British Columbia 

Deficit at end of year 


1983 

$588,503 

1,111 

589,614 


$589,614 



See accompanying notes to financial statements. 


1982 

$532,621 

(4,118 ) 

528,503 

60,000 

$588,503 


***«>£■ 


PUBLIC ACCOUNTS 1982/83 


G 311 


Touche Foss & Co. 


SURREY FARM PRODUCTS INVESTMENTS LTD 


NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. Subsidiary companies 

The wholly-owned subsidiaries, Surrey Farm Products Hatchery Ltd. (formerly 
Pacific Hatchery Ltd.) and Western Feed Co. Ltd. are inactive and have no 
assets or liabilities. 

2. Income taxes 

The purchase on February 17, 1975 of all the issued shares of Surrey Farm 
Products Investments Ltd. by the Province of British Columbia had the effect 
of making the Company exempt from income taxes under Section 149 of the Income 
Tax Act. 













PUBLIC ACCOUNTS 1982/83 


G 313 


UNIVERSITIES COUNCIL 


Mongan & 
Company/ 


Chartered Accountants 

1210 - 675 West Hastings Street 
Vancouver. BC V6B1N2 
Telephone (604) 687-5841 


AUDITORS' REPORT 


The Members 
Universities Council 

We have examined the statement of financial position of the Universities 
Council as at March 31, 1983 and the statement of revenue and expenditure 
for the year then ended. Our examination was made in accordance with generally 
accepted auditing standards, and accordingly included such tests and other 
procedures as we considered necessary in the circumstances. 

In our opinion, these financial statements present fairly the financial position 
of the Council as at March 31, 1983 and the results of its operations for 
the year then ended in accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding year. 


Vancouver, Canada. 
June 9, 1983 



Chartered Accountants 


G 314 


PROVINCE OF BRITISH COLUMBIA 


UNIVERSITIES COUNCIL 
STATEMENT OF FINANCIAL POSITION 
MARCH 31, ! 983 


Cash 

$ 23,601 

$ 62,887 

Funds held for external 
and others (Note 3) 

organ i zat i ons 

94,748 

63,047 

Short term deposits 

275,000 

200,000 

Prepaid rent 


4,513 

Furniture and equipment 

(Note 1 ) 



$ 393,349 

$ 330,447 


LIABILITIES 


Accounts payable 

Unexpended funds held for external 
organizations and others (Note 3) 


25,455 


94,748 


5,499 


63,047 


UNEXPENDED OPERATING FUNDS 

Balance, beginning of year 251,901 

Excess of revenue over expenditure 2 I , 245 

Balance, end of year 273,146 

$ 393,349 


166,232 

85,669 

251,901 

$ 330,447 


Approved on behalf of the ,Un i vers i t i es Council 



V i ce-Cha i rman 


PUBLIC ACCOUNTS 1982/83 


G 315 


UNIVERSITIES COUNCIL 
STATEMENT OF REVENUE AND EXPENDITURE 
FOR THE YEAR ENDED MARCH 31, 1985 



1983 

1982 

REVENUE 



Grant - Province of 

British Columbia $ 629,000 

$ 604,800 

Administrative fees 

to external organizations 

5,116 

1 nterest earned 

33,867 

42,572 


662,867 

652,488 


EXPENDITURE 



Members' per diem payments 

82,450 

89,700 

Employees' remuneration 

259,522 

190,136 

Emp 1 oyee benef i ts 

34, 167 

23,668 

Fees - independent consultants 

18,688 

19,147 

Grants and subsidies 

13,500 

16,008 

Travel expenses 

49,744 

39,215 

Meeting and conference expenses 

34,376 

29,650 

Office rent 

75,662 

62,580 

Office equipment leases 

Office furniture and equipment 

10,707 

9,315 

purchases (Note 1 ) 

11,897 

34,191 

Printing, stationery and office supplies 

14,009 

17,215 

Te 1 ephone , 1 ong d i stance and equipment rental 

12,600 

12,104 

Postage and courier service 

7,780 

11,160 

Library and subscr i p t i ons 

9,162 

7,229 

Staff recruitment and relocation 

812 

415 

Other 

6,546 

5,086 


641 ,622 

566,819 

EXCESS OF REVENUE OVER EXPENDITURE 

$ 21,245 

S 85,669 


G 316 


PROVINCE OF BRITISH COLUMBIA 


UNIVERSITIES COUNCIL 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1 983 


I . ACCOUNTING POL ICY 

Office furniture and equipment purchases are charged to expenditures when 
purchased. The cumulative cost of office furniture and equipment charged 
to expenditures amounts to $49,265 ( 1982 - $37,368) 

2. EXCESS OF REVENUE OVER EXPENDITURE 

The Universities Council is an agent of the Crown in right of the Province 
of British Columbia. As such no income taxes are payable on any excess 
of revenue over expenditure. 

3. FUNDS HELD FOR EXTERNAL ORGANIZATIONS AND OTHERS 

The Universities Council acts as recipient and disbursing agent of grant 
funding provided by the Ministry of Universities, Science and Communications 
for certain external organizations and for designated projects or activities. 

4. COMMITMENT 

The Universities Council has leased realty at an annual cost of approximately 
$67,000 to September 30, 1984. 

5. STATEMENT OF CHANGES IN FINANCIAL POSITION 

A Statement of Changes in Financial Position has not been prepared as its 
inclusion with these financial statements would not be meaningful. 


PUBLIC ACCOUNTS 1982/83 


G 317 


UNIVERSITY OF BRITISH COLUMBIA 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the Board of Governors of 
The University of British Columbia, and 

To the Minister of Universities, Science and Communications 
Province of British Columbia: 


I have examined the balance sheet of The University of British 
Columbia as at 31 March 1983 and the statements of revenue and 
expenditure and changes in fund balances, ancillary enterprise 
operations, changes in appropriated fund balances and net 
investments in land, buildings and equipment for the year then 
ended. My examination was made in accordance with generally 

accepted auditing standards, and accordingly included such tests and 
other procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the University as at 31 March 1 983 and the 

results of its operations and the changes in its fund balances for 
the year then ended in accordance with accounting principles 

generally accepted for universities, applied, after giving 

retroactive effect to the change in the method of recording revenue 
for sponsored research projects as explained in note 2 to the 
financial statements, on a basis consistent with that of the 

preceding year. 


Erma Morrison, F.C.a 
A uditor General 



Victoria, British Columbia 
10 June 1983 



G 318 


PROVINCE OF BRITISH COLUMBIA 



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PUBLIC ACCOUNTS 1982/83 


G 319 




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G 320 



1982 


PUBLIC ACCOUNTS 1982/83 


G 321 



$ 789,433 


THE UNIVERSITY OF BRITISH COLUMBIA 


G 322 


PROVINCE OF BRITISH COLUMBIA 


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University Research Forest 70,616 70,616 



(Exhibit A) (Exhibit A) (Exhibit A) 


NOTES TO FINANCIAL STATEMENTS 


G 324 


PROVINCE OF BRITISH COLUMBIA 


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Student Loan Funds consist of donations received for the purpose of making loans to students. 

Capital Funds consist of gifts, grants and authorized capital borrowings received for the 
purpose of acquiring capital assets, as described in Note 1(d). These funds may also be 
used for major renovations and alterations and capital project administrative costs. 


The University of British Columbia 
Notes to Financial Statements 
March 31 1983 


PUBLIC ACCOUNTS 1982/83 


G 325 



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The financial statements of The University of British Columbia do not include the income 
or expense of the Health Sciences Centre Hospital, Aquatic Centre, Thunderbird Winter 
Sports Centre, Faculty Club, Graduate Student Centre and Triumf, but original buildings 
and contents are included in the capital funds balance sheet. 


The University of British Columbia 
Notes to Financial Statements 
March 31 1983 


G 326 


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Unexpended income of $2,965,159 earned on endowment capital which is added to the endowed 


The University of British Columbia 
Notes to Financial Statements 
March 31 1983 


PUBLIC ACCOUNTS 1982/83 


G 327 


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G 328 


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Certain 1982 figures, in addition to those referred to in note 2 have been restated in order 
to conform with financial statement presentation adopted in 1983, with no resultant effect 
on the fund balances. 


and Beqi 


PUBLIC ACCOUNTS 1982/83 


G 329 


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G 330 


PROVINCE OF BRITISH COLUMBIA 


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SCHEDULE OF GENERAL PURPOSE ACADEMIC EXPENDITURE 


PUBLIC ACCOUNTS 1982/83 


G 331 


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G 332 


PROVINCE OF BRITISH COLUMBIA 


UNIVERSITY OF VICTORIA 


UNIVERSITY OF VICTORIA 
FINANCIAL STATEMENTS 
March 31, 1983 


Auditor's Report 
Balance Sheet 

Statement of Changes in Unappropriated Fund Balances 

Statement of Ancillary Enterprise Operations 

Statement of Changes in Appropriated Fund Balances 

Statement of Changes in Investment in Site, Buildings &. Equipment 

Notes to Financial Statements 

Expenditure by Fund and Object 

General Purpose Expenditure by Function and Object 


UNIVERSITY OF VICTORIA AND UNIVERSITY OF VICTORIA FOUNDATION 
COMBINED FINANCIAL STATEMENTS 
March 31, 1983 


Combined Balance Sheet 

Combined Statement of Changes in Unappropriated Fund Balances 


Most of the University's endowment funds are held by the University 
of Victoria Foundation, a separately incorporated body. These 
combined statements are prepared to provide comparability with the 
statements of other universities. These combined statements have 
not been audited but the individual statements of the University 
and of the Foundation have each been subject to audit. 


PUBLIC ACCOUNTS 1982/83 


G 333 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Chairman and Members of the Board of Governors 
of the University of Victoria, and 

To the Minister of Universities, Science and 
Communications, Province of British Columbia: 


I have examined the balance sheet of the University of 
Victoria as at 31 March 1 983 and the statements of 
changes in unappropriated fund balances, ancillary 
enterprise operations, changes in appropriated fund 
balances and changes in investment in site, buildings 
and equipment for tne year then ended. My examination 
was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and 
other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present 
fairly the financial position of the University as at 
31 March 1983 and the results of its operations and the 
changes in its fund balances for the year then ended in 
accordance with accounting principles generally 
accepted for universities applied on a basis consistent 
with that of the preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
30 June 1983 



UNIVERSITY OF VICTORIA 


G 334 


PROVINCE OF BRITISH COLUMBIA 



PUBLIC ACCOUNTS 1982/83 


G 335 



Ancillary enterprise operations form part of the General Purpose Operating Fund 
but to improve disclosure are reported on a separate statement. 


STATEMENT OF ANCILLARY ENTERPRISE OPERATIONS 


G 336 


PROVINCE OF BRITISH COLUMBIA 



PUBLIC ACCOUNTS 1982/83 


G 337 





in 

& 





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s 

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o 



G 338 


PROVINCE OF BRITISH COLUMBIA 


STATEMENT OF CHANGES IN INVESTMENT IN SITE, BUILDINGS AND 

Year ended March 31, 1983 

EQUIPMENT 



1983 

1982 

ADDITIONS 

Acquisition of site, buildings and equipment 

Repayment of capital borrowings from - 

Provincial government grants for sinking fund payments 
Interest earnings on sinking fund 

Ancillary enterprise operations 

$ 1,260,238 

593,629 

187,856 

56,116 

$10,061,866 

371,417 

112,788 

15,986 


2,097,839 

10,562,057 

DEDUCTIONS 

New capital borrowings 

843,631 

6,352,096 

Net addition to investment 

1,254,208 

4,209,961 

Investment at beginning of year 

51,930,717 

47,720,756 

Investment at end of year 

$53,184,925 

$51,930,717 



Long-term debt - Capital Fund 


G 340 


PROVINCE OF BRITISH COLUMBIA 



These statements do not include endowment funds held for the benefit of the University by the University of Victoria Foundation, a separately incorporated body. 


GENERAL PURPOSE OPERATING SPECIFIC PURPOSE OPERATING ENDOWMENT & STUDENT LOAN CAPITAL 

1983 1982 1983 1982 1983 1982 1983 1982 


PUBLIC ACCOUNTS 1982/83 


G 341 



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G 342 


PROVINCE OF BRITISH COLUMBIA 



UNIVERSITY OF VICTORIA AND UNIVERSITY OF VICTORIA FOUNDATION 


PUBLIC ACCOUNTS 1982/83 


G 343 



t.H. Stewart R.W. McQueen, C.A. 

)nairman Vice-President, Finance 


GENERAL PURPOSE OPERATING SPECIFIC PURPOSE OPERATING ENDOWMENT & STUDENT LOAN CAPITAL 

1983 1982 1983 1982 1983 1982 1983 1982 


G 344 


PROVINCE OF BRITISH COLUMBIA 


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PUBLIC ACCOUNTS 1982/83 


G 345 


WORKERS’ COMPENSATION BOARD OF BRITISH COLUMBIA 


AUDITOR’S REPORT 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1 X4 



To the Chairman and Members of the 
Workers’ Compensation Board, and 


To the Minister of Labour 
Province of British Columbia 


have examined the balance sheet of the Workers’ Compensation Board 
as at 31 December 1982 and the statements of income and expense and unfunded liability, 
changes in fund balances, and changes in special reserve balances for the year then ended. 
My examination was made in accordance with generally accepted auditing standards, and 
accordingly included such tests and other procedures as I considered necessary in the 
circumstances. 

In my opinion, these financial statements present fairly the financial 
position of the Board as at 31 December 1982 and the results of its operations and the 
changes in its fund and special reserve balances for the year then ended in accordance with 
generally accepted accounting principles applied on a basis consistent with that of the 
preceding year. 


Victoria, British Columbia 
18 March 1983 


7 


G 346 


PROVINCE OF BRITISH COLUMBIA 




WORKERS COmPENSATION BOARD 


BALANCE SHEET 

AS AT 31 DECEMBER, 1982 (in $,000’s) 


EXHIBIT 1 


ASSETS 

1982 

1981 

Cash and short-term deposits 

478,805 

297,251 

Assessments and accrued interest receivable 

181,669 

139,515 

Deposit account unfinalled claims receivable 

54,044 

47,419 

Long-term investments, at amortized cost 

717,597 

658,135 

Market value: 1982 $636,943 



1981 $459,030 



Fixed assets, net of accumulated 
depreciation (Note 4) 

51,283 

39,411 


1,483,398 

1,191,732 


LIABILITIES AND FUND BALANCES 

Accounts payable and accrued liabilities 

14,450 


12,965 

Deposit accounts 

2,975 


2,975 

Accident fund: 

Liabilities (Exhibit 3) 1,920,692 

Special Reserves (Exhibit 4) 12,178 

1,932,870 

1,639,175 

9,269 

1,648,444 

Silicosis fund liabilities (Exhibit 3) 

37,087 


36,748 

Unfunded liability (Exhibit 2) 

(504,350) 


(509,756) 


Credit arising from revaluation 

of fixed assets (Note 4) 35S 35S 

1,433.398 1.191.732 


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


Approved by the Board: 



R. B. Bucher 
Commissioner 



M. Parr 
Commissioner 


PUBLIC ACCOUNTS 1982/83 


G 




WORKERS GOmPENSATION BOARD 


STATEMENT OF INCOME AND EXPENSE AND UNFUNDED LIABILITY exhibit 2 
FOR THE YEAR ENDED 31 DECEMBER, 1982 (in $,000’s) 



1982 

1981 

1982 

1981 


Gross Transactions 
(All Years' Claims) 

Current Transactions 
(Current Year's Claims) 

income 





Assessments 





Classes 

449,395 

379,975 

449,395 

379,976 

Deposit accounts 

29,955 

36,388 

29,955 

35,388 

Penalties 

4,518 

1,529 

4,518 

1,529 


483,868 

417,893 

483,868 

417,893 

Investment income 

130,039 

96,250 

130,039 

96,250 


613,907 

514,143 

613,907 

514,143 

EXPENSE 





Wage loss 

127,054 

119,778 

79,307 

79,533 

Medical aid 

55,938 

48,805 

24,900 

24,050 

Pension payments 

72,836 

53,736 

- 

- 


256,828 

232,319 

104,207 

103,593 

Administration 

66,908 

54,553 

65,908 

54,553 


323, 73S 

286,882 

171,115 

158,155 

EXCESS OF INCOME OVER EXPENSE 

BEFORE TRANSFERS TO FUNDS, LIABILITY 





PROVISIONS AND EXTRAORDINARY ITEM 

290,171 

227,261 

442,792 

355,987 

TRANSFERS TO FUNDS AND 

PROVISIONS FOR LIABILITIES 





Levy transferred to Disaster and 

Enhancement reserves 



12,300 

10,500 

Investment income credited to 

Accident and Silicosis funds 



130,039 

96,250 

Section 48(2) interest allocation 



43,718 

32,463 

Capitalized values of pensions awarded 



13,805 

13,111 

Provisions for unfinalled claims 



192,427 

193,429 

Additional actuarial requirements 



45,097 

128,025 




437,386 

473,779 




5,406 

(117,792) 

EXTRAORDINARY ITEM 

Gain on sale of fixed asset 




4,734 

DECREASE (INCREASE) IN UNFUNDED LIABILITY FOR THE YEAR 


5,406 

(113,058) 

UNFUNDED LIABILITY - January 1 



(509,755) 

(396,698) 

UNFUNDED LIABILITY - December 31 (Exhibit 1) 



(504,350) 

(509,756) 


347 


9 


G 348 


PROVINCE OF BRITISH COLUMBIA 




WORKERS COfTlPENSATION BOARD 


STATEMENT OF CHANGES IN FUND BALANCES 

FOR THE YEAR ENDED 31 DECEMBER, 1982 (in $, 000’s) 


EXHIBIT 3 


Accident Fund 

Silicosis Fund 

1982 1981 

1982 1981 


ADDITIONS TO THE FUND 

Investment income 

126,803 

93,890 

2,822 

2,171 

Section 48(2) interest allocation 

42,411 

31,731 

1,306 

732 

Capitalized values of pensions 
awarded 

20,318 

18,381 

45 

131 

Provision for unfinalled claims 

190,891 

190,834 

1,535 

2,595 

Additional actuarial requirements 

47,735 

121,203 

(2,539) 

6,823 


428,159 

456,039 

3,070 

12,452 


DEDUCTIONS FROM THE FUND 


Wage loss 

45,108 

38,780 

(21) 

(9) 

Medical aid 

30,789 

24,151 

180 

55 

Pensions paid 

70,745 

51,685 

2,572 

2,307 


146,542 

124,516 

2,731 

2,353 

CURRENT YEAR INCREASE 

BEFORE EXTRAORDINARY ITEM 

231,517 

331,423 

339 

10,099 

EXTRAORDINARY ITEM 

Realization of fixed asset 

revaluation 

- 

3,122 

- 

73 

CURRENT YEAR INCREASE 

281,517 

334,545 

339 

10,172 

BALANCE - January 1 

1,639,175 

1,304,530 

36,748 

25,576 

BALANCE - December 31 (Exhibit 1) 

1.920.592 

1.639.175 

37.037 

36.748 

Represented by: 

Provision for unfinalled claims 

897,677 

756,871 

14,213 

15,051 

Capitalized values of pensions awarded 

1,023,015 

882,304 

22,874 

21,597 


1.920.692 

1,539,175 

37.087 

36.748 


10 


PUBLIC ACCOUNTS 1982/83 


G 349 




WORKERS COmPENSATION BOARD 


STATEMENT OF CHANGES IN SPECIAL RESERVE exhibit 4 

BALANCES FOR THE YEAR ENDED 31 DECEMBER, 1982 (in $,000’s) 


Total 



Contingent 

Disaster 

Enhancement 

1982 

1981 

ADDITIONS TO THE RESERVES 

Levy against assessment income 

- 

2,300 

10,000 

12,300 

10,500 

Investment income allocation 

41 

103 

270 

414 

189 


41 

2,403 

10,270 

12,714 

10,589 

DEDUCTIONS FROM THE RESERVES 

Capitalized values of pension awards 

- 

1,807 

4,259 

5,075 

5,145 

Wage loss 

- 

83 

2,577 

2,550 

1,474 

Medical aid 


55 

1,014 

1,059 

539 


— 

1,945 

7,860 

9,805 

7,158 

CURRENT YEAR INCREASE 

41 

458 

2,410 

2,909 

3,531 

BALANCE - January 1 

438 

2,050 

5,781 

9,259 

5,738 

BALANCE - December 31 

479 

2,508 

9,191 

12,178 

9,259 


11 


12 


G 350 


PROVINCE OF BRITISH COLUMBIA 




WORKERS COmPENSATION BOARD 


NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER , 1982 


Note 1 — Significant Accounting Policies 

(a) Fund Accounting 

Although the liabilities and reserves of the 
Board are allocated to the Accident and Silicosis 
Funds and various sub-divisions thereof, the 
assets are accounted for on a pool basis witli no 
allocation of individual assets to specific hinds. 

(b) Income and Expense Allocation 
Each sub-class is credited with its share of 
assessment income and charged with its share 
of the following expenses: 

(i) for injuries occurring and Silicosis 
claims allowed during the year, wage 
loss compensation and medical aid 
payments, plus the capitalized value 
of pensions awarded, plus a provision 
for future wage loss compensation, 
medical aid and pension awards for 
workers’ claims not finalled at year 
end; 

(ii) operating expenses paid or incurred 
during the year; 

(iii) any additional requirements for 
unfmalled claims and/or pension 
liabilities as determined by the 
actuary. 

The sub-classes are also credited or charged 
with interest as explained in Note 1 (1). 

(c) Fixed Assets 

Fixed asets are recorded at cost, except for land 
acquired before 1970 which is recorded at 
appraised value. They are depreciated on a 
straight-line basis over their estimated useful 
lives as follows: 

Buildings 20 or 40 years 

Equipment 4 to 10 years 

Furniture 10 years 

Vehicles 5 years 

(d) Investments 

Investments are valued at amortized cost. The 
straight-line method of amortization is used. 
Capital losses or gains on the sale of bonds are 
charged against or taken into income in the year 
of the transaction. Investments are made in 
accordance with Section 67 of the Workers' 
Compensation Act as amended by the Financial 
Administration Act. 


(e) Fund Liabilities 

The liabilities for unfmalled claims and 
pensions are calculated by the Board in 
accordance with assumptions and methods 
approved by the consulting actuary appointed 
by the Board. The report of the consulting 
actuary is appended to these financial 
statements. 

(f) Unfmalled Claims 

Provisions for future claims costs relating to 
injuries occurring prior to 31 December , 1982 
for which the final settlement has not been 
determined are credited to the unfmalled claims 
liabilities which are part of the Accident and 
Silicosis Funds established under Sections 39 
(1) (c) and 41 (2) (b) of the Workers' 
Compensation Act. Wage loss compensation and 
medical aid paid, and the capitalized value of 
pensions awarded 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 unfmalled claims liabilities. 

(g) Pensions 

Capitalized values of pensions awarded 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 charged to the appropriate sub-class. In the 
case of a pension awarded after the year of die 
injury (or after the year in which the claim is 
allowed, in the case of Silicosis), the pension is 
charged to the appropriate unfmalled claims 
liability. 

(h) Special Appropriated Reserves 

The special appropriated reserves established 
pursuant to Section 39 of the Workers’ 
Compensation Act are: 

(i) Contingent Reserve [Section 39 
(i)(b)] which provides a reserve in 
aid of industries or classes which may 
become depleted or extinguished. 

(ii) Disaster Reserve [Section 39 (i)(d)] 
which provides a reserve to be used 
to meet the loss arising from a disaster 
or other circumstance which the 
Board considers would unfairly 
burden the employers in a particular 
class. 

(iii) Enhancement Reserve [Section 39 
(i)(e)] which provides a reserve for 
payment of that portion of a disability 
enhanced by reason of a pre-existing 
disease, condition or disability. 

A determination is made by the Board of the 
amounts required to maintain these reserves at 
an adequate level. This “levy” or appropriation 
is prorated to the various employer classes. 


(i) Additional Actuarial Requirements 

At the end of each year the opening balances of 
the Accident and Silicosis Fund liabilities are 
revalued by the Board in accordance with 
assumptions and methods approved by the 
consulting actuary appointed by the Board. Any 
adjustments required to the opening fund 
liability balances are recorded as current period 
expense and reported as “Additional actuarial 
requirements". The appropriate fund liability is 
credited to record the additional liability of the 
Board. 

(j) Assessment Income and Assessments 
Receivable 

As a significant portion of assessment income 
for the year is not received until after year end, 
the amount shown is an estimate based on 
statistical data. Adjustments to this estimate are 
made in the following year. 

(k) Investment Income Allocations 
All amounts recorded as “Provision for 
unfmalled claims” (Note 1(f)) and as 
“Capitalized values of pensions awarded” (Note 
1 (g)) are the estimated net present values of 
these liabilities and are expected to grow over 
the years. The investment income is allocated to 
the fund liabilities to account for this growth. 

(l) Section 48 (2) Interest Allocation 

In accordance with Section 48 (2) of the 
Workers’ Compensation Act interest is charged 
or credited to the classes or sub classes if the 
classes or sub classes are in a deficit or surplus 
position. Tile deposit accounts are charged or 
credited on their actual monthly balances. 

If interest were not charged or credited the 
effect would be to increase or decrease the 
“Additional actuarial requirements" by an equal 
amount. 

Note 2 — Fund Liabilities 

Under the provisions of the Workers’ 
Compensation Act, the Board is required to 
provide capitalized reserves sufficient to meet 
the payments of compensation occurring in 
future years in respect of all injuries occurring 
during the year under the Accident Fund and all 
claims allowed during the year under the 
Silicosis Fund. The related liabilities are 
represented by the unfmalled claims provisions 
(Note 1 (f)) and the pension provisions (Note 1 
(g))- 

The Board’s estimates of the required reserves 
exceed the funded reserves by 1504,350,000. 


12 


PUBLIC ACCOUNTS 1982/83 


G 351 


Note 3 — Deposit Accounts 

Certain employers have been placed by the 
Board in self-insuring or deposit classes and are 
required to deposit with the Board a sum of 
money determined by the Board. 

The)' are billed on a monthly basis for 
compensation payments and pension awards 
made on their behalf, together with their 
proportionate share of administrative costs. The 
Board recognizes in its accounts both the 
current value of the future payments for 
unfinalled claims and the amounts relative to 


these unfinalled claims to be received in the 
future from the deposit class employers. 

The Board also acts as the agent of the 
Government of Canada for the payment of 
compensation to federal employees in British 
Columbia. Amounts disbursed are recovered 
from the Government of Canada on a monthly 
basis. 

Note 4 — Fixed Assets ($000’s) 

Fixed assets are comprised of the following items: 



Cost or 
Appraised 
Value 

1982 

Depreciation Accumulated 
Depreciation 

Net 

Book 

Value 

1981 

Net 

Book 

Value 

Land* 

1,350 

- 

- 

1,350 

1,080 

Buildings 

47,686 

662 

3,291 

44,395 

17,177 

Furniture and 
Equipment 

11,044 

1,150 

5,506 

5,538 

3,848 

Construction 
in Progress 

- 

- 

- 

- 

17,306 

Totals 

60,080 

1,812 

8,797 

51,283 

39,411 

*Land — at cost 

— at 1975 appraised value 



$ 994 

356 

1,350 



Note 5 — Superannuation Fund 

The cost to the Board of matching employees’ 
compulsory contributions to the Workers’ 
Compensation Board Superannuation Fund for 
1982 was $3,037,000 (1981: $2,235,000). 

An actuarial valuation of the Fund’s liabilities 
was carried out in 1982 at the request of the 
Trustees of the Superannuation Fund. The 
unfunded liability as at 30 September, 1982 was 
approximately $24,000,000. This unfunded 
liability is not included in these financial 
statements. 


13 


G 352 


PROVINCE OF BRITISH COLUMBIA 


ACTUARY’S REPORT 


Eckler, Brown, Segal & Company Ltd 


The Pension Liabilities for the Accident and Silicosis Funds are for pensions in 
effect as at December 3b 1982, but excluding pensions arising from injuries to Federal 
Government workers (Class 19). Tire present value of increases in pensions effective January 1, 
1983 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 December 31, 
1981. The net interest rate of 2 3 /s% makes implicit provision for the future indexing of pensions 
on the assumption that interest earnings on Board assets in excess of 2%% 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 19), 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%% 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 December 3b 1981. 

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 assumptions described above, make reasonable provision for the future 
liabilities of the Board as at December 3 b 1982 subject to the Board levying assessments in 
future years sufficient to provide for any Consumer Price Index related increases in benefits that 
are greater than those which can be provided from interest earned on Board assets in excess of 
the valuation net interest rate of 2 } /b%. 

Accident Fund 


Pension Liabilities 

Unfinalled Claims Liabilities 

$1,023,015,000 

' — Rateable Classes 

843,633,000 

— Deposit Classes 

54,044,000 


$1,920,692,000 

Silicosis Fund 


Pension Liabilities 

$ 22,874,000 

Unfinalled Claims Liabilities 

14,213,000 


$ 37,087,000 


March 11, 1983 


Jacob Levi, F.SA, F.C.I.A. 
Eckler, Brown, Segal & Company Ltd. 

Consulting Actuaries 


14 


PUBLIC ACCOUNTS 1982/83 


G 353 




WORKERS COmPENSATION BOARD 


CHANGE IN THE UNFUNDED LIABILITY 

FOR THE YEAR ENDED 31 DECEMBER , 1982 (in 000’s) 


SCHEDULE 1 


Income for the year (Exhibit 2) 



613,907 

Expenses for the year (Exhibit 2) 



323,736 

Excess of income over expenses 

Increase in actuarial liabilities (Exhibit 1) 



290,171 

Accident Fund 

1,932,870 

1,648,444 

284,426 


Silicosis Fund 

37,087 

36,748 

339 

284,765 

Decrease in unfunded liability 



5,406 

Unfunded liability at 31December, 1981 



509,756 

Unfunded liability at 3 1 December , 1982 



504,350 


15 


G 354 


PROVINCE OF BRITISH COLUMBIA 




WORKERS COfTIPENSATION BOARD 


STATEMENT OF CURRENT TRANSACTIONS (Details by Subclass) 
FOR THE YEAR ENDED 31 DECEMBER , 1982 (in $,000’s) 



BALANCES 

INCOME 



COSTS CHARGED 





Capitalized Values 

Class and 





of Pensions 

Sub-Class 

1 January 

Assessments 

Wage Loss 

Medical Aid 

Awarded 

1 2 

(105,210) 

50,436 

4,976 

1,810 

2,945 

4 

(9,032) 

8,713 

1,211 

466 

753 

5 

(59,609) 

46,806 

6,041 

2,002 

302 

7 

(9,012) 

8,243 

1,064 

327 

184 

9 

(8,596) 

4,517 

597 

126 

9 


(191,459) 

118,715 

13,889 

4,731 

4,193 

4 3 

(9,355) 

3,944 

594 

159 

4 

11 

(13,270) 

11,743 

1,240 

621 

477 

18 

(236) 

738 

260 

119 

12 

30 

(400) 

4,763 

383 

150 

4 


(23,261) 

21,188 

2,477 

1,049 

497 

6 2 

(12,114) 

12,863 

2,444 

569 

205 

3 

(2,763) 

2,367 

349 

114 

3 

4 

(4,008) 

3,787 

1,089 

314 

100 

5 

30 

326 

41 

18 

— 

7 

137 

592 

147 

36 

— 

8 

(2,689) 

1,392 

455 

88 

— 

17 

(579) 

155 

18 

8 

— 

18 

(50) 

237 

115 

61 

— 

20 

(6,245) 

3,728 

825 

208 

8 

21 

(9,305) 

13,524 

2,869 

896 

168 

22 

(570) 

3,199 

523 

193 

— • J 

24 

(4,018) 

3,097 

758 

186 

1 

25 

(783) 

518 

122 

39 

— 

26 

(26,522) 

14,925 

3,761 

1,035 

— 

27 

(7,170) 

12,012 

1,993 

930 

113 

31 

288 

359 

68 

17 

— 

32 

(5,912) 

2,250 

321 

78 

2 

36 

71 

1,193 

196 

129 

5 

37 

(810) 

2,603 

692 

171 

2 

39 

(722) 

1,054 

279 

78 

76 

43 

1,255 

1,346 

144 

72 

10 

46 

195 

68 

15 

5 

— 

54 

(768) 

4,603 

877 

250 

172 

56 

309 

113 

17 

4 

— 

57 

(4,110) 

3,368 

622 

174 

27 

58 

(560) 

464 

147 

64 

— 

59 

(11,394) 

11,975 

2,128 

715 

4 


(98,807) 

102,118 

21,015 

6,452 

896 

7 5 

(9,576) 

6,871 

1,479 

318 

157 

6 

(37,066) 

46,737 

8,463 

2,464 

749 

7 

(36,721) 

33,524 

6,832 

2,036 

328 

11 

(3,593) 

4,576 

916 

287 

209 

13 

(625) 

1,884 

399 

122 


21 

(8,236) 

10,403 

2,136 

474 

251 

25 

(14,623) 

6,665 

1,004 

277 

185 

26 

(19,285) 

17,318 

2,255 

642 

41 

47 

(133) 

858 

57 

24 

449 

48 

(1,145) 

3,126 

310 

98 

93 


(131,003) 

131,962 

23,851 

6,742 

2,462 


16 


PUBLIC ACCOUNTS 1982/83 


G 355 


SCHEDULE 2 


TO SUB-CLASSES BALANCES 

ision for 


lfinalled 

Actuarial 

Total 

Administration 

Levies 

Total 


Claims 

Requirements 

Claim Cost 

Expenses 

plus Interest 

Costs 

31 December 

16,956 

13,529 

40,216 

7,771 

10,570 

58,556 

(113,330) 

j 4,907 

2,217 

9,554 

1,266 

1,083 

11,904 

(12,223) 

15,084 

2,917 

26,346 

5,578 

6,056 

37,980 

(50,783) 

2,461 

(342) 

3,694 

979 

921 

5,594 

(6,363) 

1,505 

(1,133) 

1,104 

561 

855 

2,520 

(6,599) 

1*0,913 

17,188 

80,914 

16,155 

19,485 

116,554 

( 189.298) 

1,737 

224 

2,718 

525 

949 

4,192 

(9,603) 

1 4,516 

265 

7,119 

1,418 

1,406 

9,943 

(11,470) 

708 

1,024 

2,123 

294 

74 

2,491 

(1,989) 

1,329 

41 

1,907 

314 

41 

2,262 

2,101 

8,290 

1,554 

13,867 

2,551 

2,470 

18,888 

(20,961) 

4,125 

2,275 

9,618 

1,824 

1,316 

12,758 

(12,009) 

708 

98 

1,272 

311 

284 

1,867 

(2,263) 

! 1,714 

(750) 

2,467 

751 

490 

3,708 

(3,929) 

i 52 

(84) 

27 

22 

(3) 

46 

310 

114 

(52) 

245 

73 

(8) 

310 

419 

695 

(355) 

883 

219 

295 

1,397 

(2,694) 

40 

(66) 

— 

9 

55 

64 

(488) 

j 142 

(124) 

194 

48 

18 

260 

(73) 

1,356 

(35) 

2,362 

480 

652 

3,494 

(6,011) 

5,592 

1,063 

10,588 

1,989 

1,146 

13,723 

(9,504) 

1,352 

588 

2,656 

367 

102 

3,125 

(496) 

1 U50 

740 

2,835 

500 

439 

3,774 

(4,695) 

208 

(7) 

362 

75 

84 

521 

(786) 

9,214 

577 

14,587 

2,340 

2,982 

19,909 

(31,506) 

4,570 

(946) 

6,660 

1,339 

853 

8,852 

(4,010) 

61 

(87) 

59 

35 

(26) 

68 

579 

852 

(700) 

553 

185 

583 

1,321 

(4,983) 

i 555 

230 

1,115 

147 

17 

1,279 

(15) 

762 

(413) 

1,214 

310 

114 

1,638 

155 

481 

564 

1,478 

212 

100 

1,790 

(1,458) 

! 893 

477 

1,596 

119 

(88) 

1,627 

974 

j 24 

14 

58 

11 

(18) 

51 

212 

1 1,363 

1,712 

4,374 

700 

136 

5,210 

(1,375) 

29 

(31) 

19 

6 

(29) 

(4) 

426 

1,747 

4,420 

6,990 

568 

468 

8,026 

(8,768) 

283 

141 

635 

87 

71 

793 

(889) 

4,949 

(473) 

7,323 

1,529 

1,273 

10,125 

(9,544) 

13,031 

8,776 

80,170 

14,256 

11,306 

105,732 

(102,421) 

3,552 

(131) 

5,375 

1,124 

1,080 

7,579 

(10,284) 

10,882 

70 

32,628 

6,726 

4,404 

43,758 

(34,087) 

[3,198 

991 

23,385 

4,922 

4,081 

32,388 

(35,585) 

1,999 

(355) 

3,056 

679 

439 

4,174 

(3,191) 

962 

515 

1,998 

286 

104 

2,388 

(1,129) 

1 4,319 

311 

7,491 

1,225 

963 

9,679 

(7,512) 

1 4,208 

6,656 

12,330 

1,325 

1,581 

15,236 

(23,194) 

7,714 

4,726 

15,378 

2,145 

2,076 

19,599 

(21,566) 

387 

70 

987 

172 

46 

1,205 

(480) 

950 

(533) 

918 

425 

132 

1,475 

506 

>8,171 

12,320 

103,546 

19,029 

14,906 

137,481 

(136,522) 


G 356 


PROVINCE OF BRITISH COLUMBIA 



WORKERS COmPENSATION BOARD 


STATEMENT OF CURRENT TRANSACTIONS (Details by Sub-class) 
FOR THE YEAR ENDED 31 DECEMBER, 1982 (in $, 000’s) 



BALANCES 

INCOME 



COSTS CHARGE 





Capitalized Values 

Class and 





of Pensions 

Sub-Class 

1 January 

Assessments 

Wage Loss 

Medical Aid 

Awarded 

8 1 

033) 

3,975 

425 

144 

2 

8 

(2,561) 

1,361 

342 

94 

2 

11 

(2,015) 

1,936 

427 

81 

246 

12 

259 

909 

187 

79 

256 

20 

559 

3,135 

146 

42 

622 

51 

(23,399) 

23,841 

3,936 

1,039 

1,129 


(27.290) 

35,157 

5,463 

1,479 

2,257 

9 1 

(4,576) 

4,047 

554 

170 

34 

2 

(2,851) 

6,429 

1,225 

299 

682 

6 

(1,974) 

1,902 

384 

123 

22 

9 

218 

185 

8 

1 

— 

11 

3,507 

4,332 

604 

238 

719 


(5.676) 

16,895 

2,775 

831 

1,457 

14 1 

(8,598) 

14,559 

2,676 

693 

582 

6 

(8,393) 

8,464 

1,442 

528 

15 


(16,991) 

23,023 

4,118 

1,221 

597 

Total Classes 

(494,487) 

449,058 

73,588 

22,505 

12,359 

10 

— 

9,475 

1,201 

472 

487 

12 

— 

2,998 

565 

234 

212 

13 

— 

14,744 

2,481 

824 

658 

18 

— 

(66) 

27 

8 

— 

19 

- 

2,977 

1,371 

854 

43 

Total 






Deposit 

— 

30,128 

5,645 

2,392 

1,400 

Accounts 






Total Deposit 






Accounts and 

(494,487) 

479,186 

79,233 

24,897 

13,759 

Classes 






Silicosis 






2 3 

314 

179 

— 

— 

— 

4 

(15,583) 

4,503 

74 

3 

46 


( 15,269) 

4,682 

74 

3 

46 

GRAND TOTAL 

(509,756) 

483,868 

79,307 

24,900 

13,805 


PUBLIC ACCOUNTS 1982/83 


G 357 


SCHEDULE 2 


) SUBCLASSES 





BALANCES 

ision for 
nfinaUed 
Claims 

Actuarial 

Requirements 

Total 
Claim Cost 

Administration 

Expenses 

Levies 
plus Interest 

Total 

Costs 

31 December 

1,370 

1,272 

3,213 

467 

43 

3,723 

119 

862 

582 

1,882 

210 

286 

2,378 

(3,578) 

621 

(263) 

1,112 

321 

231 

1,664 

(1,743) 

192 

(74) 

640 

166 

(2) 

804 

364 

834 

(448) 

1,196 

319 

(25) 

1,489 

2,205 

9,093 

3,361 

18,558 

3,207 

2,595 

24,361 

(23,919) 

12,972 

4,430 

26,601 

4,690 

3.128 

34,419 

(26,552) 

1,111 

(1,075) 

794 

351 

455 

1,600 

(2,129) 

2,117 

989 

5,312 

974 

387 

6,673 

(3,095) 

670 

90 

1,289 

329 

220 

1,838 

(1,910) 

36 

20 

65 

10 

(22) 

53 

350 

2,309 

681 

4,551 

823 

(202) 

5,172 

2,667 

6,243 

705 

12,011 

2,487 

838 

15,335 

(4,117) 

5,297 

(657) 

8,591 

1,739 

1,032 

11,362 

(5,401) 

3,615 

237 

5,837 

1,001 

934 

7,772 

(7,701) 

8,912 

(420) 

14,428 

2,740 

1,966 

19,134 

(13,102) 

178,532 

44,553 

331,537 

61,908 

54,099 

447,544 

(492,973) 

3,326 

2,599 

8,085 

1,143 

247 

9,475 

— 

1,442 

(82) 

2,371 

514 

113 

2,998 

— 

7,471 

902 

12,336 

2,171 

237 

14,744 

— 

120 

(236) 

(81) 

12 

3 

(66) 

— 

- 

- 

2,268 

696 

13 

2,977 

- 

12,359 

3,183 

24,979 

4,536 

613 

30,128 

- 

190,891 

47,736 

356,516 

66,444 

54,712 

477,672 

(492,973) 


(50) 

(50) 

13 

(38) 

(75) 

568 

1,536 

(2,589) 

(930) 

451 

1,344 

865 

(11,945) 

1,536 

(2,639) 

(980) 

464 

1,306 

790 

(11,377) 

192,427 

45,097 

355,536 

66,908 

56,018 

478,462 

(504,350) 


G 358 


PROVINCE OF BRITISH COLUMBIA 




WORKERS COmPENSATION BOARD 


STATEMENT OF ADMINISTRATION EXPENSES 

FOR THE YEAR ENDED 31 DECEMBER , 1982 (in $, 000’s) 


SCHEDULE 3 



1982 

1981 

Salaries and employees’ benefits 

59,942 

48,941 

Building and services 

4,369 

3,219 

Communications 

2,406 

1,967 

Depreciation 

1,812 

1,572 

Staff travel 

1,657 

1,536 

Supplies and stationery 

1,500 

1,439 

Advertising 

1,325 

1,453 

Miscellaneous 

1,157 

678 

Equipment 

1,049 

833 

Consulting fees 

986 

526 

Publications 

790 

793 

Patients’ meals 

646 

540 

Grants and awards 

569 

608 

Automobile fleet 

489 

337 

Employee relocation 

186 

146 


78,883 

64,588 

Less: Miscellaneous income 

1,213 

832 

: Gain (loss) on disposal of fixed assets 

(45) 

27 


77,715 

63,729 

Less: Allocated to medical aid 

10,807 

9,166 

Administration expenses 

66,908 

54,563 


20 


PUBLIC ACCOUNTS 1982/83 


G 359 




WORKERS COmPENSATION BOARD 


INVESTMENTS HELD AS AT 31 DECEMBER, 1982 
(in $000’s) 


SCHEDULE 4 



1982 

1981 

Amortized Value 

Government of Canada and Federal Crown Corporations 

$ 69,262 

$ 30,212 

Province of British Columbia Crown Corporations 

445,821 

463,735 

British Columbia Municipal and Sc1kx)1 

101,623 

100,471 

Other Provinces and Crown Corporations 

79,841 

64,162 

Chartered Bank 

21,050 

9,555 

Cash and short-term deposits 

717,597 

478,805 

668,135 

297,251 


1,196,402 

965,386 


21 







































































PUBLIC ACCOUNTS 1982/83 


SECTION H 

TRUST FUNDS UNDER ADMINISTRATION 

CONTENTS 

Page 

Public Service Superannuation Fund H 3 

Members of the Legislative Assembly Superannuation Account H 12 

Municipal Superannuation Fund H 19 

Teachers’ Pension Fund H 27 

College Pension Fund H 35 

British Columbia Railway Company Pension Fund H 44 

British Columbia Hydro and Power Authority Pension Fund H 53 

British Columbia Power Commission Superannuation Fund H 62 

Workers’ Compensation Board Superannuation Fund H 72 
































PUBLIC ACCOUNTS 1982/83 


H 3 


PUBLIC SERVICE SUPERANNUATION FUND 


REPORT OF THE COMPTROLLER GENERAL 


The financial statements of the Public Service Superannuation Fund 
have been prepared from, and accurately reflect, the financial 
records of the Government of British Columbia. Although an 
auditor's opinion has not been expressed on these financial state- 
ments, this Superannuation Fund has been examined as part of the 
audit of the Government's accounts. 



D.b. Mar son 

A/Comptroller General 


Victoria, British Columbia 
September 30, 1983 


PROVINCE OF BRITISH COLUMBIA 


H 4 


EXHIBIT A 

PUBLIC SERVICE SUPERANNUATION FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT MARCH 31, 1983 


Cash in Treasury and pool investments 

$ 18,326,375 

$ 

Contributions receivable 

5,128,978 

27,492,205 

Accrued interest on investments 

47,021,136 

36,371,019 

Investments (Notes 2 and 3) 

Snort-term 

Long-term (Note 3 ano Schedule 1) 

611,633,344 

853,487,472 

458,209,468 

757,220,852 

Realizeo losses, less gains on sale of 
investments, deferred for future amortization 

2,468,656 

- 


$1,538,066,361 

$1,279,293,544 

LIABILITY AND FUND 

BALANCE 


Overdraft in Treasury 

$ 

$ 15,164,165 

Accounts payable 

221,298 

147,758 


221,298 

15,311,923 

Fund Balance (Exhibit B) (Note 4) 



Basic account 

1,446,646,294 

1,223,209,858 

Inflation adjustment account 

91,198,769 

40,771,763 


1,537,845,063 

1,263,981,621 

$1,538,066,361 

$1,279,293,544 


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


APPROVED BY: 



C. WeD'ster, zjjkr', 'Comptroller , Superannuation Commission 


PUBLIC ACCOUNTS 1982/83 


H 5 


EXHIBIT B 

PUBLIC SERVICE SUPERANNUATION FUND 
STATEMENT OF CHANGES IN FUND BALANCE 


FOR THE YEAR ENDED MARCH 31, 1983 


FUND BALANCE INCREASED BY: 

1983 

1982 

Contributicns: 

Employees: 

Basic 

Inflation Adjustment 

Voluntary 

Reinstatement 

Military service 

$ 36,927,475 

15,033,529 
576,458 
93,209 
334,198 

$ 51 , 476,25a 

13,480,618 
750, 4lo 
63 , 164 
986,043 


72,964,869 

66,756,497 

Employer: 

Province of Britisn ColumDia 

Basic 

Inflation adjustment 

73,210,114 

10,810,786 

60,721,692 

9,805,350 

Other empldyers 

Basic 

Inflation adjustment 

18,423,56^ 

4,222,741 

16 ,8Ul , 542 
3,675 ,2o7 


106,667,203 

91,003,851; 

Transfers from other funds 

2,366,011 

26 ,680 , 2i0 

Transfers from Members of the Legislative Assembly 
Superannuation Account: 

Upon grant of allowance 

In respect of cost of living supplements 

134,378 

33,532 

2y ,202 

Net income from investments received from 

Minister of Finance (Note 2), 

16U , 104 , 162 

158,573, 51b 


342,270,155 

343,043,27b 

FUND BALANCE DECREASED BY: 



Superannuation allowance payments: 

Contributory 

Inflation adjustment supplements (Note A) 

54,636,332 

6,279,568 

48,484,023 

1,254,158 


60,915,900 

49,730,181 

Refunds 

9,646,423 

16,102,436 

Transfers to other funds 

509,91i 

355,708 


71,072,235 

66 , 19b, 325 

NET INCREASE IN FUND BALANCE 

271,197,920 

276,846,951 

FUND BALANCE AT BEGINNING OF YEAR 

1,263,981,621 

^82,343,070 

PRIOR YEAR'S LOSSES LESS GAINS ON INVESTSENTS 

AFTER AMORTIZATION NOW DEFERRED FOR FUTURE 
AMORTIZATION (NOTE 2) 

2,665,522 


PRIOR YEARS' AMORTIZATION OF DISCOUNTS ON 

INVESTMENTS (NOTE 2) 

- 

4,791,600 

FUND BALANCE AT END OF YEAR 

$1,537,845,063 

$1,263,981,62 1 


PROVINCE OF BRITISH COLUMBIA 


H 6 


PUBLIC SERVICE SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. DESCRIPTION OF THE PUBLIC SERVICE SUPERANNUATION PLAN 

a) General 

The plan is a defined benefit pension plan, whereby benefits are not 
directly linked to contributions. The plan is open to eligible employees 
of the public service and of certain crown corporations, agencies, 
institutions and other designated employers. 

b) Retirement Benefits 

Members are eligible for unreduced benefits if tney retire at age 53 with 
a minimum of 35 years contributory service and 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, and at age 60 with less 
than 10 years contriDutory service. 

Certain groups of employees are eligible for retirement benefits at an 
earlier age. 

The plan provides a pension of 2% per year of service up to a maximum of 
70% prior to age 65 of the average salary earned in the five highest 
earning years before retirement. At age 65, date of death or disability, 
there is a reduction in the formula as a result of the integration with 
the Canada Pension Plan (the CPP offset). Reference should be made to the 
plan text for a more detailed description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit having 
contributed for a minimum of 10 years are entitled to a deferreo pension 
benefit. 

d) Other Benefits 

OisaDility and Survivor benefits are available under the plan. 


2. SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Fund as at 
March 31, 1983 and the changes in Fund balance for the year then ended and 
do not purport to show the adequacy of the Fund to meet the obligations of 
the pension plan. While the statements have been prepared on a full 
accrual basis, no provision has been made for future pension benefits 
accrued to date under the terms of the plan. The results of the latest 
actuarial valuation of the plan are described in Note 5 below. 

b) Investment Valuation and Investment Income. 

Ail contributions to the Fund are deposited in the Provincial Treasury and 
administerea by the Minister of Finance, who has investea available moneys 
in various short-term and long-term investments. 


PUBLIC ACCOUNTS 1982/83 


H 7 


PUBLIC SERVICE SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 

Long-term investments include Donds issued or guaranteed oy Canada or a 
Province. They are carriea at cost of acquisition aojusted as follows: 

(i) Discounts and premiums on single maturity Donds are amortized 
on a straight line Dasis over tne term of the Donos. 

(ii) Discounts on serial bonas are recognized as income when 
reoemptions occur. 

(iii) Shares are carried at cost aojusted by 1 % of the difference 
between cost or aQjusteo cost ana marker value. 

Gains and losses on disposition of long-term Donus are aeferrea ana 
amortized over tne lesser of tne remaining term of tne bonds or twenty 
years. 

In the year ended March 31, 1982 ana prior years snares were carriea at 
cost of acauisition anu gains and losses on oisposition of long-term Donos 
were written off at the date of oisposition. 

If the statements haa been prepareu on tne previous Dasis income from 
investments would have amounted to $io0,234,406. Prior years' losses less 
gains on investments after amortization, retroactive to OctoDer 1, 198U, 
when the Inflation Adjustment Account was establisneo for tne financing of 
pension increases, $2,665,522, nave now Deen aeferrea for future 
amortization. The March 31, 1982 comparative figures have not been 
restated witn respect to tnis change in accounting policy. 

Short-term investments are carried at cost. 


3. LONG-TERM INVESTMENTS 


Long-term investments heiu at tne end of the year are as follows: 

1983 1982 

$ $ 


Book Value 
Par Value 
Market Value 


853,487,47 2 
861,452,453 
768,453,0b2 


757,220,852 

754,758,413 

542,217,663 


For more details see Scneaule 1. 


The difference between tne oook value ana tne market value of tne 
investments is not considered to be a permanent reauction of tne Funa 
balance available for payment of pension Denefits anc therefore has not 
been proviaeu for as at March 31, 1983, since it is generally expecteo 
tnat Funa investments will be heia to maturity. 


4. FUND BALANCE 

The fund oalance is maae up of a Basic Account anc an Inflation Adjustment 
Account. The Inflation Adjustment Account was createo in lyBO to finance 
the payment of cost of living supplementary allowances. Tnese allowances 
are aajusteo each January 1st and are relatea to the annual increase in 
tne Consumer Price Inoex as at eacn previous Septenrroer 30th, Dut may be 


PROVINCE OF BRITISH COLUMBIA 


H 8 


PUBLIC SERVICE SUPERANNUATION FUND 
NOTES TO FINANCIAL STATE RENTS 
MARCH 31, 1983 


4. FUND BALANCE (Continued) 

limited by tne availaoility of funds in the Inflation Adjustment Account 
to provide the capitalized value of the increases. The Inflation 
Adjustment Account includes contributions by employees anu employers each 
at the rate of 1.25% of salary, less refunos to former contriDutors, the 
interest income tnerefrom, ana the interest income on Basic Account funds 
attributed to the payment of pensions in excess of tne rate assumea oy the 
actuary. During 1982 excess interest earnings of $36,187,191 were 
transferred from the Basic Account to the Inflation Adjustment Account. 
Effective January 1, 1983, supplementary allowances at the rate of 10.333% 
of the basic life time portion of pensions in payment were grantea. Tne 
capitalized value of these increases was $29,010,656, which amount was 
transferred from the Inflation Adjustment Account to the Basic Account. 

In respect of the supplementary allowances, the 1982 comparative figures 
on the statement of changes in Fund balance have been reclassified to 
conform with tne 1983 presentation. The former cost of living 
supplements, $9,475,462 in 1982, have been merged witn contributory 
allowance payments. 


5. ACTUARIAL VALUATION 

According to the Pension (Public Service) Act, an actuarial valuation of 
the assets ana liabilities of the Funa is reauirea to oe made Dy an 
Actuary at least once in each consecutive perioa of not more tnan five 
years. The most recent valuation was carnea out as at Marcn 31, 1980. 

The valuation indicates an increase in the unfunded liaoility in respect 
of basic pension Denefits from about $197,563,000 as of Marcn 31, 1977 to 
about $631,172,000 as of Marcn 31, i960. Tne 1977 amount of $197,563,000 
would have Deen stated as $234,295,000 on the current basis since tne 
actuary has changed his assumptions to incluoe cost-of-living increases in 
the basic pensions as a result of the legislative cnanges which occurreo 
in 1980. Tnese increases were not included in the liaoility in previous 
valuations. 

In the opinion of the Actuary, projectea statutory employer contributions 
are sufficient to amortize fully the above unfunaea liability in 
approximately 30 years from March, 1980, assuming all actuarial 
assumptions are realised. 

The key actuarial assumptions made in the valuation may be tabulateo as 
follows - 


Salary growth 


Interest rate on fund assets 
Mortality - active employees 

- other retired 


8.0% for 1980/81 
6.0% for 1961/82 
13.0% for 1982/63 
10.5% for 1983/84 
8.0% for 198a/85 
6.5% for 1985/86 
5.5% thereafter 

6.5% per annum 

85% and 100% of tne 1971 Group 
Annuity table for males ana 
females respectively. 

Progressive Annuity Table without 
rating fur males ana rateo 
aown two years for females. 


PUBLIC ACCOUNTS 1982/83 


H 9 


PUBLIC SERVICE SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEI*ENTS 
MARCH 31, 1983 


5. ACTUARIAL VALUATION (continued) 
Withdrawal 

Retirement 
Retirement age 


Males, 105% and 90% of the 
graduated select and 
ultimate rates, respectively, 
used for the previous valuation 

Females, 90% ano 85% of the 
graauateo select and 
ultimate rates, respectively, 
used for the previous valuation 

Select ana ultimate experience based 
on 1975-60 experience. 

50 - 65 


6. LEGISLATION 

The provisions of tne Pension (Public Service) Act relateu to the 
financing of the plan were amended at the 1983 session of the 
Legislature. The significant provisions, effective April 1, 1983, were - 

(i) To increase monthly employer contributions by 2.5% of salary. 

(ii) To oiscontinue additional contributions by government upon 
grant of allowance. 

To provide for payment of administration expenses from the fund. 


(ill) 


H 10 


PROVINCE OF BRITISH COLUMBIA 


PUBLIC SERVICE SUPERANNUATION FUND 
SCHEDULE 1 (Page 1 of 2) 

LONG-TERM INVESTMENTS HELD AS AT MARCH 31, 1983 



Par 

Book 

Market 


Value 

Value 

Value 

Government of Canada $ 

86,225,000 

$ 69,525,813 

$ 76,706,736 

Government of Canada guaranty - 

Federal Business Development Bank 

8,000,000 

7,982,000 

8,680,000 

Export Development Corporation 

25,000,000 

25,000,000 

24,637,500 

British Columbia Housing & Development Bond 

2,800,000 

2,800,000 

2,885,960 

Province of British ColumDia 

76,844,981 

76,858,492 

73,690,709 

Province of Manitoba 

9,460,000 

9,404,471 

9,412,700 

Province of Nova Scotia 

1,250,000 

1,459,682 

1, 449,125 

Province of Ontario 

1,025,000 

984,669 

923,525 

Province of Quebec 

14,626,000 

14,620,667 

15,340,779 

Province of Saskatchewan 

9,786,000 

9,625,947 

8,366,370 

Province of Alberta guaranty 

Alberta Telephone 

16,000 

11,310 

12,536 

Province of British Columbia guaranty - 

British Columbia Building Corporation Note 

14,835,000 

14,922,041 

16,686,408 

British Columbia Hydro and Power Authority 

384,716,000 

381,153,415 

302,930,061 

British Columbia Railway Company 

87,295,000 

87,112,606 

76,617,549 

British Columbia Electric 

659,600 

611,611 

563,939 

British Columbia Power Commission 

2,796,000 

2,746,391 

2,263,264 

British Columbia Educational Institutions 

Capital Financing Authority 

1,025,000 

1,025,000 

991,175 

British Columbia Regional Hospital Districts 

Capital Financing Authority 

10,000,000 

8,890,754 

7,867,500 

British Columbia School Districts Capital 

Financing Authority 

27,483,900 

26,941,103 

24,971,397 

British Columbia improvement districts 

10,115,700 

9,988,160 

8,176,914 

British Columbia municipalities 

1,814,272 

1, 797,985 

1,564,031 

Municipal Finance Authority of British 

Columbia 

21,705,000 

21,641,276 

23,422,298 

Province of Manitooa guaranty - 

Manitoba Telephone Systems 

70,000 

66,863 

52,010 

Province of New Brunswick guaranty - 

New Brunswick Electric Power Commission 

1,595,000 

1,595,000 

1,302,31b 

Province of Newfoundland guaranty - 

Newfoundland and Labrador Hydro-electric 

Corporation 

700,000 

695,538 

560 , 350 

Newfoundland Municipalities Capital Financing 

3,650,000 

3,632,759 

3,051,400 

Province of Nova Scotia guaranty - 

Nova Scotia Power Corporation 

2,347,000 

2,252,973 

1,816,905 

Province of Ontario guaranty - 

Ontario Hydro-electric Power Commission 

52,411,000 

51,175,106 

45,148,379 


PUBLIC ACCOUNTS 1982/83 


H 11 


PUBLIC SERVICE SUPERANNUATION FUND 
SCHEDULE 1 (Page 2 of 2) 

LONG-TERM INVESTMENTS HELD AS AT MARCH 31, 1983 


Par 

Value 


Book 

Value 


Market 

Value 


Province of Quebec guaranty - 

Quebec Hydro-electric Commission $ 3,201,000 $ 3,199,830 $ 2,888,768 


Total Value of Bonds and Notes 

861,452,453 

837,721,462 

743,020,606 

Shares- 

Bank of British Columbia (119,128) 

British Columbia Telephone Company (1,215, 
Canadian Pacific LimiteG (1,200) 

Imperial Oil Limited (300) 

International Nickel Company of Canada Ltd 

844) 

r, (450) 

1,475,127 

I4,242,5a7 

22,068 

12,432 

13,836 

2,263,432 

23,10i,036 

52,200 

8,700 

7,068 

Total Value of Shares 

- 

15,766,010 

25,432,45 6 


$ 661,452,453 

$ 853,487,472 

$ 768,453,062 



(Exhibit A) 


1982 Comparisons 

$ 754,758,413 

$ 757,220,852 

$ 542,217,665 


(Exhibit a) 


H 12 


PROVINCE OF BRITISH COLUMBIA 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION 

ACCOUNT 


REPORT OF THE COMPTROLLER GENERAL 


The financial statements of the Members of the Legislative Assembly 
Superannuation Account have been prepared from, and accurately 
reflect, the financial records of the Government of British 
Columbia. Although an auditor’s opinion has not been expressed on 
these financial statements, this Superannuation Account has been 
examined as part of the audit of the Government's accounts. 



- D.B . — Mar e on — 

A/Comptr oiler General 


Victoria, British Columbia 
September 30, 1983 


PUBLIC ACCOUNTS 1982/83 


H 13 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT 
STATEMENT OF FINANCIAL POSITION 
AS AT MARCH 31, 1983 


1983 


ASSETS 


Cash in Treasury (Note 2) 

$ 

260,642 

Contributions receivable 


3,075 

Accrued interest on investments 


70,669 

Investments (Note 2 (b)) 

Short-term 

Long-term (Note 3 and Schedule 1) 


2,422,350 

1,100,045 


$ 

3,856,781 


LIABILITY AND ACCOUNT BALANCE 

LIABILITY 

Due to Public Service Superannuation Fund $ 62,734 

ACCOUNT BALANCE (Exhibit B) (Note 4) 

Basic account 3,708,242 

Inflation adjustment account 85,805 

3,794,047 

$ 3,856,781 


The five accompanying notes are an integral part of these financial statements. 
APPROVED BY: 

Li 

Jo5n W. Cook, F.C.I.A., Acting Superannuation Commissioner 

(ljja 

C. Webster, C.ftr 7 "'Comptroller, Superannuation Commission 


EXHIBIT A 


1982 

$ 440,292 

98,360 

1,489,000 

1,099,563 

$ 3,127,215 


$ 29,202 

3,047,591 

50,422 

3,098,013 

$ 3,127,215 


H 14 


PROVINCE OF BRITISH COLUMBIA 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT 
STATEMENT OF CHANGES IN ACCOUNT BALANCE 
FOR THE YEAR ENDED MARCH 31, 1983 


1983 


ACCOUNT BALANCE INCREASED BY: 

Contributions: 

Members of the Legislative Assembly: 

Regular $ 185,673 

Arrears 

Reinstatement 7,221 


192,894 


Province of British Columbia: 

Regular 245,952 


245,952 


Transfer from Public Service Superannuation Fund 

Income from investments 425,098 


863,944 


ACCOUNT BALANCE DECREASED BY: 

Transfers to Public Service Superannuation Fund: 

Upon grant of allowance 134,378 

In respect of cost of living supplements (Note 4) 33,532 

Refunds of Members' contributions 

167,910 

NET INCREASE IN ACCOUNT BALANCE 696,034 

ACCOUNT BALANCE AT BEGINNING OF YEAR 3,098,013 

PRIOR YEARS' AMORTIZATION OF DISCOUNTS ON 
INVESTMENTS 


$ 3,794,047 


EXHIBIT B 


1982 


$ 201,254 

75 
4,069 


205. 

,398 

252. 

,717 

252. 

,717 


208 

427, 

,135 

885, 

,458 


29 

,202 

16, 

,823 

46. 

,025 

839, 

,433 

2,252, 

,338 

6, 

,242 

$ 3,098, 

,013 


ACCOUNT BALANCE AT END OF YEAR (Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


H 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


DESCRIPTION OF THE MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION PLAN 

a) General 

The plan is a defined benefit pension plan, whereby benefits are not linkea 
directly to contributions. The plan is open to all members of the 
legislative assembly. 

b) Retirement Benefits 

A member is entitled to a pension allowance upon ceasing to be a memuer 
after serving for more than two parliaments ana having attained an age of 
35 years or having attained an age plus years of service as a memoer 
totalling 60. 

The plan provides a pension allowance of 4% per year of service up to a 
maximum of 72% of tne average legislative allowance, and special allowance 
and/or ministerial salary earned in the highest four years of service as a 
member and as a minister or specified office holder. Reference should De 
made to the plan text for a more detailed description of the benefits. 

c) Termination Benefits 

A member who ceases to be a member may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund incluaes 
interest credited. Former members leaving contributions on deposit are 
entitled, if otherwise eligible, to a deferred pension allowance benefit. 

d) Other Benefits 

Survivor benefits are available under the plan. 

SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Account as at 
March 31, 1983 and the changes in Account balance for tne year then enaeo 
and do not purport to show the aaequacy of the Account to meet the 
obligations of the superannuation plan. While the statements have been 
prepared on a full accrual basis, no provision has oeen made for future 
pension benefits accrued to date under the terms of the plan. 

b) Investment Valuation 

All contributions to the Account are deposited in the Provincial Treasury 
and administered by the Minister of Finance, who has invested available 
monies as described below. 

Long-term investments incluae bonds issued or guaranteea by Canada or a 
Province. These investments are carried at amortized cost, witn premiums 
and discounts being amortized on a straight line basis over the terms of 
the bonds. In 1982 and prior years, premiums on bonas were written off in 
the year of acquisition. The effects of this change in the method of 
adjusting the cost of bonds is not significant to these financial 
statements. 


PROVINCE OF BRITISH COLUMBIA 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


SIGNIFICANT ACCOUNTING PuLlCIES (Continued) 

Gains and losses on disposal of long-term portfolio investments are 
deferred and amortized over the lesser of the remaining term of the oonds 
or 20 years. This reflects a change in accounting policies. However, 
there were no premiums purchased and written off auring the current year 
nor were there any disposals of long-term investments during the last two 
years, accordingly, this change has had no effect on these financial 
statements. 

Short-term investments consist of deposits with chartered banks ana other 
approved financial institutions. They are carried at cost. 

LONG-TERM INVESTMENTS 

Long-term investments held at the ena of the year are as follows: 


1983 1982 
$ $ 

Par Value 1,106,000 1,106,000 
Book Value 1,100,045 1,099,563 
Market Value 846,664 646,327 


For more details see Schedule 1. 

The difference between the book value and market value of the investments 
is not consiaered to be a permanent reduction of the Account balance 
available for payment of plan benefits and therefore has not been 
provided for as at March 31, 1983, since it is generally expecteo that 
Account -investments will be held to maturity. 

ACCOUNT BALANCE 

The Account balance is made up of a Basic Account and an Inflation 
Adjustment Account. The Inflation Aajustment Account was created in 1980 
to finance the payment of cost of living supplementary allowances. These 
allowances are adjusted each January 1st and are related to the annual 
increase in the Consumer Price Index as at each previous Septemuer 30tn, 
but may be limited by the availability of funds in the Inflation 
Adjustment Account to provide the capitalized value of the increases. 

The Inflation Adjustment Account includes contributions by employees ana 
employers each at the rate of 1-1/4% of legislative ana special 
allowances and ministerial salary, less refunds to former contributors, 
and the interest income therefrom. 

Transfer of an appropriate amount from the Inflation Adjustment Account 
to the Public Service Superannuation Fund towards the financing of the 
cost of living supplementary allowances granted January 1, 1982 and 
January 1, 1983 requires statutory amendment. 

ACTUARIAL VALUATION 

No actuarial valuation of the Account is required by the Legislative 
Asseinoly Allowances ana Pension Act ana no such valuation has been 
performed to dace. At the time ah allowance is granted, the Province of 
British Columbia contributes the aeficiency between the accumulatea 
employee and employer basic contributions and the present value of che 
allowance. The present value of the allowance is transferred to the 
Public Service Superannuation Fund and monthly allowance payments are 
made therefrom. 


MEMBERS OF THE LEGISLATIVE ASSEMBLY SUPERANNUATION ACCOUNT 


PUBLIC ACCOUNTS 1982/83 


H 17 


O 4-> 

o c 

ct HH 


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H 18 


PROVINCE OF BRITISH COLUMBIA 



1982 Comparisons $ 1,106,000 $ 1,099,363 $ 646,327 $ 19,383 


PUBLIC ACCOUNTS 1982/83 


H 19 


MUNICIPAL SUPERANNUATION FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Commissioner of Municipal Superannuation, and 

To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the 
Municipal Superannuation Fund as at 31 December 1982 and 
the statement of changes in fund balance for the year then 
ended. My examination was made in accordance with 
generally accepted auditing standards, and accordingly 
included such tests and other procedures as I considered 
necessary in the circumstances . 

In my opinion, these financial statements present fairly 
the financial position of the Fund as at 31 December 1982 
and the changes in its fund balance for the year then ended 
in accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding 
year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
28 June 1983 


H 20 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

MUNICIPAL SUPERANNUATION FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT DECEMBER 31, 1982 

1982 1981 


ASSETS 


Cash 

Contributions receivable 

Accrued interest on investments 

Investments (Note 2(b)) 

Short-term 

Long-term (Note 3 and Schedule 1) 


LIABILITY 

LIABILITY 

Accounts payable 

FUND BALANCE (Exhibit B) (Note 4) 

Basic account 

Retirement annuity account 
Inflation adjustment account 


$ 9,923,195 

$ 8,382,598 

17,608,847 

16,788,071 

36,311,244 

28,955,410 

444,485,846 

274,051,719 

936,445,678 

856,550,168 

$1,444,774,810 

$1,184,727,966 


FUND BALANCE 


$ 2,334,298 

$ 1,774,877 

1,306,444,199 

1,080,059,045 

59,214,320 

53,400,448 

76,781,993 

49,493,596 

1,442,440,512 

1,182,953,089 

$1,444,774,810 

$1,184,727,966 


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


APPROVED BY: 


— L*J brirl 


Joljh/W. 


Cook, F.C.I.A., Acting Superannuation Commissioner, 


Trustee 



C. Webster, C.ArT" Comptroller, Superannuation Commissi o n 


PUBLIC ACCOUNTS 1982/83 


H 21 


MUNICIPAL SUPERANNUATION 

FUND 


EXHIBIT a 

STATEMENT OF CHANGES IN FUND 

BALANCE 



FOR THE YEAR ENDED DECEMBER 

31, 1982 




1982 


1981 

FUND BALANCE INCREASED BY: 




Contributions: 

Employees: 

Basic 

Inflation adjustment 

Voluntary ana special agreement 

Purchase of service 

Leave of absence 

Reinstatement 

$ 80,314,711 

14,590,928 
5,123,104 
118,211 
3,854 
27,122 

$ 

67,411,724 

12,218,229 

4,543,094 

130,150 

4,068 

21,920 


100,177,930 


84,329,185 

Employers: 

Current service 

Inflation adjustment 

Past service 

Recognition of service 

Leave of absence 

78,845,222 

14,590,928 

1,674,462 

97,338 

6,564 


62,683,928 

12,218,229 

1 , 664 , 549 
135,276 
3,163 


95,214,514 


76,705,145 

Transfers from other funds 

427,417 


426,793 

Income from investments 

144,867,044 


115,914,430 

Losses on sale of investments (Notes 2(b) ana 3) 

(600,342) 


(571,326) 

FUND BALANCE DECREASED BY: 

340,086,563 


276,804,227 




Superannuation allowance payments: 

Contributory 

Inflation adjustment supplements (Note 4) 

Special agreement supplementary allowances 

Less reimbursement by former employers 

57,122,805 

5,507,493 

182,851 

(125,090) 


51,393,654 

173,522 

(141,573) 


62,688,059 


51,425,603 

Refunds 

14,577,319 


21,423,749 

Transfers to other funds 

311,856 


231,014 

Pensioners' medical premiums - matching portion 

845,198 


544,770 

Actuarial and administration expenses 

1,708,277 


1,728,300 

Investment management services (Note 6(a)) 

468,431 


- 


80,599,140 


75,353,436 

NET INCREASE IN FUND BALANCE 

259,487,423 


201,450,7 91 

FUND BALANCE AT BEGINNING OF YEAR 

1,182,953,089 


981,502,298 

FUND BALANCE AT END OF YEAR (Exhibit A) 

$1,442,440,512 

$1, 

,182,953,089 


13 


H 22 


PROVINCE OF BRITISH COLUMBIA 


MUNICIPAL SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


1. DESCRIPTION OF THE MUNICIPAL SUPERANNUATION PLAN 

a) General 

The plan is a defined benefit pension plan, whereby benefits are not 
linked directly to contributions. The plan is open to eligible 
employees of a municipality, hospital, school district, regional college 
or other employer to which the Pension (Municipal) Act applies. 

b) Retirement Benefits 

Members are eligible for unreduced benefits 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 and at age 65 with less than 10 
years contributory service. Reduced pensions are available at age 55 
with a minimum of 10 years contributory service, and at age 60 with less 
than 10 years contributory service. 

Certain groups of employees are eligible for retirement benefits at an 
earlier age. Hospital employees must have a minimum of 10 years 
contributory service to be eligible for a pension benefit. 

The plan provides a pension of 2% per year of service prior to age 65 up 
to a maximum of 70% of the average salary earned in the five highest 
earning years before retirement. At age 65, date of death, or 
disability there is a reduction in the formula as a result of the 
integration with the Canada Pension Plan. Reference should be made to 
the plan text for a more detailed description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit for a 
minimum of 10 years are entitled to a deferred pension benefit if they 
have completed a minimum of 10 years contributory service. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 

2. SIGNIFICANT ACCOUNTING POLICIES 
a) General Information 

These financial statements show only the position of the Fund as at 
December 31, 1982 and the changes in Fund balance for the year then 
ended and do not purport to show the adequacy of the Fund to meet the 
obligations of the superannuation plan. While the statements have been 
prepared on a full accrual basis, no provision has been made for future 
benefits accrued to date under the terms of the plan. The results of 
the latest actuarial valuation of the plan are described in Note 5 below. 


PUBLIC ACCOUNTS 1982/83 


H 23 


MUNICIPAL SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 
b) Investment Valuation 


Long-term investments include bonds issued or guaranteed by Canaua or a 
Province and deposits with chartered banks and other approved financial 
institutions purchased with terms in excess of one year. They are 
carried at the lower of cost and par value, with "cost" defined as 
acguisition costs adjusted as follows: 

(i) Premiums are written off in the year of acguisition. 

(ii) Discounts on single maturity bonds are amortized 
over the term of the bonds. 

(iii) Discounts on serial bonds are recognized as income 
when redemptions occur. 


Short-term investments consist of deposits with chartered banks and 
other approved financial institutions. They are carried at cost. 


Gains and losses on disposal of investments are recognized as they 
occur. 


3. LONG-TERM INVESTMENTS 


Long-term 


investments held at the end of the year are as follows: 


Book Value 
Par Value 
Market Value 


1982 

$ 

936,445,678 

941,201,953 

792,871,039 


1981 

$ 

856,550,168 

861,496,453 

549,281,605 


For more details see Schedule 1. 


The difference between the book value and market value of the 
investments is not considered to be a permanent reduction of the Fund 
balance available for payment of plan benefits and therefore has not 
been provided for as at December 31, 1982, since it is generally 
expected that Fund investments will be held to maturity. However, 
during the year, certain investments were disposed of in order to 
improve the yield to the Fund, resulting in book losses aggregating 
$600,342. It is anticipated that future increased interest earnings 
from reinvestment will more than offset these losses. 


4. FUND BALANCE 

The Fund balance is made up of a Basic Account, a Retirement Annuity 
Account and an Inflation Adjustment Account. The Inflation Adjustment 
Account was created in 1980 to finance the payment of cost of living 
supplementary allowances. These allowances are adjusted each January 
1st and are related to the annual increase in the Consumer Price Inoex 
as at each previous September 30th, but may be limited by the 
availability of funds in the Inflation Adjustment Account to provide 
the capitalized value of the increases. The Inflation Adjustment 
Account includes contributions Dy employees and employers each at the 
rate of 1% of salary, the interest income therefrom and the interest 
income on funds attributed to the payment of pensions in excess of the 
rate assumed by the actuary, less refunds to former contributors. 
During 1982 excess interest earnings of $28,364,863 ($17,873,762 in 
1981) were transferred from the Basic Account to the Inflation 
Adjustment Account. Effective January 1, 1983, supplementary 
allowances at the rate of 10.355% (12.535% in 1982) of the basic life 


H 24 


PROVINCE OF BRITISH COLUMBIA 


MUNICIPAL SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


4. FUND BALANCE (Continued) 

time portion of pensions in payment were granted. The capitalized 
value of these increases was $28,498,667 ($32,720,856 in 1982), which 
amount was transferred from the Inflation Adjustment Account to the 
Basic Account. 

5. ACTUARIAL VALUATION 

According to the Pension (Municipal) Act, an actuarial valuation of the 
assets and liabilities of the Fund is required to oe made by an Actuary 
from time to time at intervals of not more than five years. The most 
recent valuation was carried out as at December 31, 1979. In his 
report on this actuarial valuation the Actuary statea that the 
statutory basis of contributions, including the 1980 amendments, would 
oe sufficient to fully finance benefits for all new entrants to the 
plan and to hold the actuarial liability constant as a percentage of 
future payroll. On this basis, he advised that the unfunded liability 
would be $407,272,000 for basic pension benefits. 

The liabilities of the Fund are calculated unaer the "entry age normal" 
actuarial method. The future contributions required have been 
determined under the "level contribution funding" method. This method 
expresses employer contributions as the constant percentage of future 
payrolls that, together with future employee contributions and 
investment earnings, will finance the benefits for all new entrants to 
the plan to the extent that the unfunded liability is maintained as a 
constant percentage of future payrolls. 

The key actuarial assumptions made in tne valuation are as follows - 


Salary growth 

Interest on fund assets 
Mortality - active employees - 

- other retired 

Withdrawal 


Retirement 
Retirement age 


12-1/2% in 1981, decreasing 
by 1-1/2% per annum to 5-1/2% 
for 1986 and after. 

11-1/2% in 1981, decreasing by 1% per 
annum to 6-1/2% for 1986 ana after. 
70% and 75% of the 1971 Group Annuity 
table for males and females 
respectively. 

Progressive Annuity Table rated up 
one year for males ana down one year 
for females. 

Group 1 - 95% and 87% of the 
graduated select and ultimate 
experience, respectively, using a 
three year select period. Group 2 - 
80% of the select and ultimate rates 
used for the previous valuation. 

Group 3 - 90% of the select and 
ultimate rates used for the previous 
valuation. Group 4 - 95% and 88% of 
the graduated select and ultimate 
experience respectively, using a 
three year select period. 

Select and ultimate experience using 
a modified three-year select period 
50 - 65 


PUBLIC ACCOUNTS 1982/83 


H 25 


MUNICIPAL SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


6. COMPARATIVE FIGURES 

a) Investment Management Services 

Fees for investment management services have been charged to the Fund 
for the first time, in 1982, in accordance with section 39 of the 
Financial Administration Act. 

b) 1981 Reclassifications 

Certain 1981 comparative figures on the statement of changes in fund 
balance have been reclassified to conform with the financial statement 
presentation adopted in 1982. These changes have had no effect on net 
increase in fund balance for 1981. 


H 26 


PROVINCE OF BRITISH COLUMBIA 


MUNICIPAL SUPERANNUATION FUND 
SCHEDULE 1 

LONG-TERM INVESTMENTS HELD AS AT DECEMBER 31, 1982 


Government of Canada 

Government of Canada - 

Federal Business Development Bank 

Province of British Columbia Guaranty 
B. C. Building Corporation Note 
B. C. Hydro and Power Authority 
B. C. Electric Company 
B. C. Railway Company 
B. C. School Districts Capital Financing 
Authority Serials 

B. C. School Districts Capital Financing 
Authority 

B. C. Regional Hospital Districts 
Financing Authority 
B. C. Municipal Serials 
B. C. Irrigation Districts 
B. C. Improvement Districts Serials 
B. C. Improvement Districts 
B. C. Waterworks Districts Serials 

B. C. Waterworks Districts 

B. C. Hospital Improvement Districts Serials 

Greater Vancouver Sewerage and Drainage 

District Serial 

Greater Vancouver Sewerage and Drainage 
District 

Municipal Finance Authority of B. C. 

Province of Newfoundland Guaranty 
Newfoundland Power 

Province of Nova Scotia 

Province of Nova Scotia Guaranty 
Nova Scotia Power 

Province of Ontario 

Province of Ontario Guaranty 
Ontario Hydro 

Province of Quebec 

Province of Saskatchewan 

Term Deposits 

Royal Bank of Canada Swap Deposits 
Toronto Dominion Bank Swap Deposits 
First City Trust Guaranteed Investment 
Certificate 


1981 Comparisons 


Par Value 

Book Value 

Market Value 

$ 12,199,000 

$ 11,404,717 

$ 12,040,107 

10,000,000 

9,976,369 

10,833,000 

5.535.000 

598.832.000 

1.423.000 

143.335.000 

5,535,000 

595,877,124 

1,413,043 

142,894,112 

6,159,348 

489,609,452 

1,150,863 

114,994,632 

793,000 

787,099 

740,914 

30,144,000 

30,077,471 

25,920,967 

14,215,000 

183.000 

4.997.000 

241.000 

1.101.000 

287.000 

232.000 
60,000 

14,149,666 

179,082 

4,989,471 

239,156 

1,098,141 

286,903 

231,130 

59,320 

12,532,103 

169,665 

3,520,656 

183,734 

786,691 

216,056 

191,221 

59,742 

778,000 

770,337 

706,621 

769,000 

768,487 

663,339 

53,432,953 

53,204,897 

49,568,685 

300,000 

300,000 

321,300 

6,000,000 

6,000,000 

6,528,000 

1,300,000 

1,276,955 

1,028,300 

250,000 

236,901 

213,750 

6,394,000 

6,363,942 

5,535,20 6 

14,696,000 

14,695,896 

15,291,512 

4,805,000 

4,730,459 

4,463,565 

14,000,000 

13,700,000 

14,000,000 

13,700,000 

14,317,400 

13,911,010 

1,200,000 

1,200,000 

1,213,200 

$941,201,953 

$936,445,678 

$792,871,039 


(Exhibit A) 


$861,496,453 

$856,550,168 

$549,281,605 


(Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


H 27 


TEACHERS’ PENSION FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Commissioner of Teachers' Pensions, and 


To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the 
Teachers' Pensions Funo as at 31 December 1982 and the statement 
of changes in fund balance for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and 
other procedures as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Fund as at 31 December 1982 and the 
changes in its fund balance for the year then ended in 
accordance with generally accepted accounting principles applied 
on a basis consistent with that of the preceding year. 



Erma Morrison, F.C.A. 
Auditor General 


Victoria, British Columbia 
6 June 1983 


H 28 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

TEACHERS' PENSIONS FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT DECEMBER 31, 1982 

1982 1981 


ASSETS 


Cash 

Contributions receivable 

Accrued interest on investments 

Investments (Note 2(b)) 

Short-term 

Long-term (Note 3 and Schedule 1) 


$ 5,646,187 

6,442,446 
25,720,398 

351,625,162 
711,77 9,959 

$1,101,214,152 


$ 6,261,040 

9,934,423 
21,921,632 

230,391,735 

623,249,622 

$ 891,758,452 


LIABILITY AND FUND BALANCE 


LIABILITY 

Accounts payable 

FUND BALANCE (Exhibit B) (Note 4) 
Basic account 

Inflation adjustment account 


$ 3,248,813 

1,034,718,709 

63,246,630 

1,097,965,339 


$1,101,214,152 


$ 1,129,797 

847,460,430 

43,168,225 

890,628,655 

$ 891,758,452 


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


APPROVED BY: 


John W. [.A., Acting Superannuation Commissioner, 



Lj CbrlL 


41ML , 

C. Webster, -C.A., Comptroller, Superannuation Commission 


Trustee 


PUBLIC ACCOUNTS 1982/83 


H 29 


TEACHERS' PENSIONS FUND 


EXHIBIT B 


STATEMENT OF CHANGES IN FUND BALANCE 
FOR THE YEAR ENDED DECEMBER 31, 1982 


FUND BALANCE INCREASED BY: 

Contributions: 

Employees: 

Basic 

Inflation adjustment 
Voluntary 
Reinstatement 
Leave of absence 
Military or other service 


Employers: 

Paid by the Province of British Columbia 
on behalf of school districts: 

Basic 

Inflation adjustment 
Recognition of service 

Contributions paid by other employers: 
Basic 

Inflation adjustment 


Transfers from other funds 
Income from investments 

Losses on sale of investments (Notes 2(b) and 3) 


FUND BALANCE DECREASED BY: 

Superannuation allowance payments: 
Contributory 

Inflation adjustment supplements (Note 4) 


Refunds 

Transfers to other funds 

Actuarial and administration expenses 
Investment management services (Note 6(a)) 


NET INCREASE IN FUND BALANCE 
FUND BALANCE AT BEGINNING OF YEAR 


1982 

1981 

$ 57,922,051 

$ 48,481,828 

9,928,449 

8,432,968 

47,390 

27,234 

154,283 

143,082 

155,037 

99,781 

483,727 

455,930 

68,690,937 

57,640,823 


84,427,464 
9,887,4 69 
483,727 

70,926,773 

8,396,098 

455,930 

356,889 

40,980 

322,900 

36,870 

95,196,529 

80,138,571 

527,873 

500,210 

113,003,518 

89,535,672 

(1,221,398) 

(416,250) 

276,197,459 

227,399,026 


56,081,883 

5,904,777 

50,121,185 

61,986,660 

50,121,185 

5,172,036 

6,759,399 

378,977 

82,919 

933,435 

389,667 

960,506 

68,860,775 

57,924,009 

207,336,684 

169,475,017 

890,628,655 

721,153,638 

$1,097,965,339 

$ 890,628,655 


FUND BALANCE AT END OF YEAR (Exhibit A) 


H 30 


PROVINCE OF BRITISH COLUMBIA 


TEACHERS' PENSIONS FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


1. DESCRIPTION OF THE TEACHERS' PENSIONS PLAN 

a) General 

The plan is a defined benefit pensidn plan, whereby benefits are 
not linked directly to contributions. The plan is open to all 
certificated teachers and to superintendents or assistant 
superintendents appeinted by a board of school trustees in the 
British Columbia public school system. 

b) Retirement Benefits 

Members are eligible for unreduced benefits if they retire at age 
55 with a minimum of 35 years contributory service and 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. 

The plan provides a pension of 2% per year of service prior to 
age 65 up to a maximum of 10 % of the average salary earned in the 
five highest earning years before retirement. At age 65, date of 
death, or disability there is a reduction in the formula as a 
result of the integration with the Canada Pension Plan. 

Reference should be made to the plan text for a more detailed 
description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund 
includes interest credited. Employees leaving contributions on 
deposit are entitled to a deferred pension benefit if they have 
completed a minimum of 10 years contributory service. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 


2. SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Fund as 
at December 31, 1982 and the changes in Fund balance for the year 
then ended and oo not purport to show the adequacy of the Fund to 
meet the obligations of the pension plan. While the statements 
have been prepared on a full accrual basis, no provision has been 
made for future benefits accrued to date under the terms of the 
plan. The results of the latest actuarial valuation of the plan 
are described in Note 5 below. 

b) Investment Valuation 

Long-term investments include bonds issued or guaranteed by 
Canada or a Province and a mortgage of approximately $1,800,000 


PUBLIC ACCOUNTS 1982/83 


H 31 


TEACHERS' PENSIONS FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 

insured by Canada Mortgage and Housing Corporation. These 
investments are carried at the lower of cost and par value, with 
"cost" defined as acquisition costs adjusted as follows: 

(i) Premiums are written off in the year of acquisition. 

(ii) Discounts on single maturity bonds are amortized 
over the term of the bonds. 

(iii) Discounts on serial bonds are recognized as income 
when redemptions occur. 

Short-term investments consist of deposits in chartered banks and 
other approved financial institutions. They are carried at cost. 

Gains and losses on disposal of investments are recognized as 
they occur. 

3. LONG-TERM INVESTMENTS 


Long-term investments 


Book Value 
Par Value 
Market Value 


held at the end of the 

1982 

$ 

711,779,939 

726,066,735 

606,671,907 


year are as follows: 

1981 

$ 

623,249,622 

629,008,547 

394,094,119 


For more details see Schedule 1. 


The difference between the book value and market value of the 
investments is not considered to be a permanent reduction of the 
Fund balance available for payment of plan benefits and therefore 
has not been proviaed for as at December 31, 1982, since it is 
generally expected that Fund investments will be held to 
maturity. However, during the year, certain investments were 
disposed of in order to improve the yiela to the Funa, resulting 
in book losses aggregating $1,221,398. It is anticipated that 
future increased interest earnings from reinvestment will more 
than offset tnese losses. 


4. FUND BALANCE 


The Fund balance is made up of a Basic Account and an Inflation 
Adjustment Account. The Inflation Adjustment Account was created 
in 1980 to finance the payment of cost of living supplementary 
allowances. These allowances are adjusted each January 1st and 
are related to the annual increase in the Consumer Price Index as 
at each previous September 30th, but may be limited by the 
availability of funds in the Inflation Adjustment Account to 
provide the capitalized value of the increases. The Inflation 
Aajustment Account includes contributions by employees ana 
employers each at the rate of 1% of salary, the interest income 
therefrom and the interest income on funds attributed to the 
payment of pensions in excess of the rate assumed by the actuary, 
less refunds to former contributors. The Basic Account consists 
of all other assets of the Fund. During 1982 excess interest 
earnings of $32,421,338 ($19,483,523 in 1981) were transferred 
from the Basic Account to the Inflation Adjustment Account. 
Effective January 1, 1983, supplementary allowances at the rate 
of 10.355% (12.535% in 1982) of the basic life time portion of 


H 32 


PROVINCE OF BRITISH COLUMBIA 


TEACHERS' PENSIONS FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


4. FUND BALANCE (Continued) 

pensions in payment were granted. The capitalized value of these 
increases was $31,188,789 ($34,172,916 in 1982), which amount was 
transferred from the Inflation Adjustment Account to the Basic 
Account. 

5. ACTUARIAL VALUATION 

According to the Pension (Teachers) Act, an actuarial valuation 
of the assets and liabilities of the Fund is required to be made 
by an Actuary from time to time at intervals of not more than 
five years. The most recent valuation was carried out as at 
December 31, 1980. The actuary advised that the unfunded 
liability would be $1,019,270,000 for basic pension benefits. 

This liability includes the capitalized value of pension indexing 
costs granted up to and including January 1, 1981 which were not 
previously included in the valuations. This represents an 
increase of $471,670,000 since December 31, 1977. The actuary 
stated that the plan "funded ratio" had decreased, but explained 
that this was due mainly to the inclusion of indexing costs for 
the first time and a change in the method of valuing assets. The 
actuary also stated that he did not see the increase in the 
unfunded liability as a threat to the continued payment of 
pensions to current and prospective pensioners nor to the 
financial health of the pension fund. 

The liabilities of the Fund are calculated under the "entry age 
normal" actuarial method. The future contributions required have 
been determined under the "level contribution funding" method. 
This method expresses employer contributions as the constant 
percentage of future payrolls that, together with future employee 
contributions and investment earnings, will finance the benefits 
for all new entrants to the plan to the extent that the unfunaed 
liability is maintained as a constant percentage of future 
payrolls. 

The key actuarial assumptions made in the valuation are as 
follows - 


Salary growth 

Interest on fund assets 
Mortality - active employees - 

- other retired 

Withdrawal 


Retirement 
Retirement age 


12.8% for 1982 and 

5- 1/2% per annum 

6- 1/2% per annum 

1971 Group Annuity Mortality table - 
Males 55% 

Females 70% 

Progressive Annuity table 
rated down for - 

Males 1 year 

Females 2 years 

Graduated select experience, using a 
three year select period - 

Males 110% of select rates 

100% of ultimate races 
Females 95% of select rates 

85% of ultimate rates 
Ultimate experience rates reducea to 
that used for inactive employees 
Select ana ultimate experience using 
a modified three-year select period 
55 - 65 


PUBLIC ACCOUNTS 1982/83 


H 33 


TEACHERS' PENSIONS FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


6. COMPARATIVE FIGURES 

a) Investment Management Services 

Fees for investment management services have been charged to the 
Fund for the first time, in 1982, in accordance with section 39 
of the Financial Administration Act. 

b) 1981 Reclassifications 

Certain 1981 comparative figures on the statement of changes in 
fund balance have been reclassified to conform with the financial 
statement presentation adopted in 1982. These changes have had 
no effect on net increase in fund balance for 1981. 


H 34 


PROVINCE OF BRITISH COLUMBIA 


TEACHERS' PENSIONS FUND 
SCHEDULE 1 


LONG-TERM INVESTMENTS HELD AS AT DECEMBER 31, 1982 


Government of Canada 

Government of Canada Guaranty 

Federal Business Development Bank 

Province of British Columbia 

Province of British Columbia Guaranty 
B. C. Hydro and Power Authority 
B. C. Electric Company 
B. C. Railway Company 
B. C. School Districts Capital Financing 
Authority Serials 

B. C. School Districts Capital Financing 
Authority 

B. C. Municipal Serials 
B. C. Irrigation Districts Serials 
B. C. Irrigation Districts 
B. C. Improvement Districts 
Nechako Improvement District Serial 
B. C. Hospital Improvement District 
Serials 

B. C. Waterworks Districts 
Greater Vancouver Sewerage and Drainage 
District 

Greater Vancouver Sewerage and Drainage 
District Serials 

Municipal Finance Authority of B. C. 

Province of New Brunswick 

Province of Nova Scotia 

Province of Nova Scotia Guaranty 
Nova Scotia Power 

Province of Ontario Guaranty 
Ontario Hydro 

Province of Quebec 

Province of Saskatchewan 

N.H.A. Insured Mortgage 
Bancorp Financial Ltd. 

Term Deposits 

Royal Bank of Canada Swaps 
First City Trust G.I.C. 

Toronto Dominion Bank Swap 


1981 Comparisons 


Par Value 

Book Value 

$ 46,864,000 

$ 38,136,746 

6,000,000 

5,985,822 

2,200,000 

2,200,000 

482,784,000 

653,000 

78,965,000 

478,580,929 

647,213 

78,714,435 

835,000 

829,333 

32,127,000 

36,500 

78,000 

715,500 

984.000 

471.000 

31,962,060 

35,956 

76,190 

714,891 

979,203 

466,526 

140,000 

94,000 

138,894 

93,572 

980,000 

979,955 

194,000 

192,089 

8,000,000 

7,981,325 

3,500,000 

3,500,000 

4,745,000 

4,665,861 

794,000 

778,557 

10,520,000 

10,142,220 

16,900,000 

16,504,132 

6,605,000 

6,592,286 

1,842,303 

1,842,312 

6,039,452 

5.000. 000 

8.000. 000 

6,039,452 

5.000. 000 

8.000. 000 

$ 726,066,755 

$ 711,779,959 


(Exhibit A) 

$ 629,008,547 

$ 623,249,622 


Market Value 
$ 40,343,074 

6,499,800 

2,200,000 

398,577,898 

517,367 

55,111,300 

777,634 

27,925,621 

35,365 

63,886 

493,415 

739,502 

387,237 

128,585 

68,821 

845,348 

176,190 

9,217,600 

3.969.000 
5,112,020 

628,054 

8,962,476 

17,124,500 

6,135,957 

1,494,289 

6,273,968 

5.047.000 

7.816.000 

$ 606,671,907 


$ 394,094,119 


(Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


H 35 


COLLEGE PENSION FUND 


Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1 X4 


AUDITOR'S REPORT 


To the Superannuation Commissioner , Trustee and 

To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the 
College Pension Fund as at 31 August 1982 and the statement 
of changes in fund balance for the year then ended. My 
examination was made in accordance with generally accepted 
auditing standards, and accordingly included such tests and 
other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Fund as at 31 August 1982 and the 
changes in its fund balance for the year then ended in 
accordance with generally accepted accounting principles 
applied on a basis consistent with that of the preceding 
year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
2 February 1983 


H 36 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT A 

COLLEGE PENSION FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT AUGUST 31, 1982 

1982 1981 


ASSETS 


Cash 

Contributions receivable 

Accrued interest on investments 

Investments (Note 2(b)) 

Short-term 

Long-term (Note 3 and Schedule 1) 


$ 887,042 

1,037,797 
2,255,396 

36,500,000 

37,357,263 

$ 78,037,498 


$ 1,444,794 

1,438,970 
1,383,761 

17,600,671 

37,782,363 

$ 59,650,559 


LIABILITY AND FUND BALANCE 


LIABILITY 

Accounts payable 

FUND BALANCE (Exhibit B) (Note 4) 
Basic account 

Inflation adjustment account 


$ 4,186 

74,138,672 

3,894,640 

78,033,312 

$ 78,037,498 


$ 4,108 

57,765,814 

1,880,637 

59,646,451 

$ 59,650,559 


The five accompanying notes are an integral part of these financial statements. 
APPROVED BY: 


l\J l 

Jolvi liV. Cook, Acting Superannuation Commissioner, Trustee 



C. Webster, C-rA'. ," Comptroller, Superannuation Commission 


PUBLIC ACCOUNTS 1982/83 


H 37 


COLLEGE PENSION FUND 
STATEMENT OF CHANGES IN FUND BALANCE 


EXHIBIT B 


FOR THE YEAR ENDED AUGUST 31, 1982 


FUND BALANCE INCREASED BY: 

Contributions - 
Employees: 

Basic 

Inflation adjustment 

Voluntary 

Arrears 


Employer: 

Basic 

Inflation adjustment 
Arrears 


Transfers from other funds 

Income from investments 

Losses on sale of investments 
(Note 2 (b) and 3) 


FUND BALANCE DECREASED BY: 

Superannuation allowance payments: 
Contributory 

Inflation adjustment supplements (Note A) 


Refunds 

Transfers to other funds 

Pensioners' medical premiums - matching portion 

Administration expenses 
Pension Booklet printing expense 


NET INCREASE IN FUND BALANCE 
FUND BALANCE AT BEGINNING OF YEAR 


1982 

1981 

$ A , 95A , 517 
919,077 
3,515 

719 

$ A, 276, 023 
706, 17A 
8 ,8A6 

5,877,828 

A , 991, 0A3 

A ,95A , 517 
919,077 

1, A38 

A, 276, 023 
706, 17A 

5,875,032 

A, 982, 197 

122, 2A0 

605,971 

8,679,157 

5,865,290 

(A26 , 108) 

- 

20,128,1A9 

16, AAA , 501 


9A9.56A 

771,297 

57 , 9A8 

- 

1,007,512 

771,297 

658,071 

567, A79 

- 

17,961 

11,383 

6,772 

AA , AA2 

35,952 

19,880 

- 

1,7A1,288 

1 , 399 , A61 

18,386,861 

15 ,0A5 ,0A0 

59 ,6A6, A51 

AA ,601, All 

$ 78,033,312 

$ 59,6A6,A5i 


FUND BALANCE AT END OF YEAR (Exhibit A) 


H 38 


PROVINCE OF BRITISH COLUMBIA 


COLLEGE PENSION FUND 
NOTES TO FINANCIAL STATEMENTS 
AUGUST 31, 1982 


1. DESCRIPTION OF THE COLLEGE PENSION PLAN 

a) General 

The plan is a defined benefit pension plan, whereby benefits are not 
directly linked to contributions. The plan is open to full-time faculty 
members of a college or college council in British Columbia, other faculty 
members whose application has been approved by the employer, and full-time 
senior administrative employees who are required by the employer to become 
a contributor. Full-time faculty members may apply within one month of 
date of appointment to be exempted from contributing to the plan. 

b) Retirement Benefits 

Members are eligible for unreduced benefits 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 and at age 65 with less than 10 years 
contributory service. Reduced pensions are 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 a pension of 2 % per year of service up to a maximum of 
7035 prior to age 65 of the average salary earned in the five highest 
earning years before retirement. At age 65, date of death or disability, 
there is a reduction in the formula as a result of the integration with 
the Canada Pension Plan (the CPP offset). Reference should be made to the 
plan text for a more detailed description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit are 
entitled to a deferred pension benefit. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 


2. SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Fund as at 
August 31, 1982 and the changes in Fund balance for the year then ended 
and do not purport to show the adequacy of the Fund to meet the 
obligations of the pension plan. While the statements have been prepared 
on a full accrual basis, no provision has been made for future pension 
benefits accrued to date under the terms of the plan. The results of the 
latest actuarial valuation of the plan are described in Note 5 below. 

b) Investment Valuation 

Long-term investments include bonds issued or guaranteed by Canada or a 
Province. They are carried at the lower of cost and par value, with 
"cost" defined as acquisition costs adjusted as follows: 

(i) Premiums are written off in the year of acquisition. 

(ii) Discounts on single maturity bonds are amortized over 
the term of the bonds. 


PUBLIC ACCOUNTS 1982/83 


H 39 


COLLEGE PENSION FUND 
NOTES TO FINANCIAL STATEMENTS 
AUGUST 31, 1982 

2. SIGNIFICANT ACCOUNTING POLICIES (continued) 

(iii) Discounts on serial bonds are recognized as income when 
redemptions occur. 

Short-term investments are carried at cost. 

Gains and losses on disposal of investments are recognized as they occur. 


3. LONG-TERM INVESTMENTS 


Long-term investments held at the end of the year are as follows: 


1982 1981 

$ $ 


Book Value 
Par Value 
Market Value 


37,357,263 

37,919,000 

26,295,466 


37,782,363 

38,199,000 

22,388,883 


For more details see Schedule I. 


The difference between the book value and the market value of the 
investments is not considered to be a permanent reduction of the Fund 
balance available for payment of pension benefits and therefore has not 
been provided for as at August 31, 1982, since it is generally expected 
that Fund investments will be held to maturity. During the year, certain 
investments were disposed of in order to improve the yield of the Fund, 
resulting in book losses aggregating $426,108. It is anticipated that 
future increased interest earnings from re-investment will more than 
offset these losses. 


4. FUND BALANCE 

The fund balance is made up of a Basic Account and an Inflation Adjustment 
Account. The Inflation Adjustment Account was created in 198U to finance 
the payment of cost of living supplementary allowances. These allowances 
are adjusted each January 1st and are related to the annual increase in 
the Consumer Price Index as at each previous September 30th, but may be 
limited by the availability of funds in the Inflation Adjustment Account 
to provide the capitalized value of the increases. The Inflation 
Adjustment Account includes contributions by employees and employers each 
at the rate of 1% of salary, less refunds to former contributors, the 
interest income therefrom, and the interest income on Basic Account funds 
attributed to the payment of pensions in excess of the rate assumed by the 
actuary. During 1981 excess interest earnings of $420,836 were 
transferred from the Basic Account to the Inflation Adjustment Account. 
Effective January 1, 1982, supplementary allowances at the rate of 12.535% 
of the basic life time portion of pensions in payment were granted. The 
capitalized value of these increases was $573,410, which amount was 
transferred from the Inflation Adjustment Account to the Basic Account. 

In this connection, the comparative figures for 1981 for the Basic Account 
have been reduced and for the Inflation Adjustment Account increased by an 
amount of $385,766 to reflect the transfer of excess interest earnings in 
the period October 1, 1980 to August 31, 1981. The former cost of living 
supplements were consolidated into the contributory allowance amount as at 
January 1, 1982. The comparative figures have been restated accordingly. 


H 40 


PROVINCE OF BRITISH COLUMBIA 


COLLEGE PENSION FUND 
NOTES TO FINANCIAL STATEMENTS 
AUGUST 31, 1982 


5. ACTUARIAL VALUATION 

According to the Pension (College) Act, an actuarial valuation of the 
assets and liabilities of the Fund is required to be made by an Actuary 
upon request by the Superannuation Commissioner. 

The most recent valuation was carried out as at August 31, 1981. The 
valuation indicated an unfunded liability in respect of basic pension 
benefits of approximately $45,422,000 as of August 31, 1981, compared to 
$12,290,000 as of August 31, 1976, the date of the previous valuation. The 
increase in the unfunded liability was caused mainly by inadequacies in the 
statutory contribution rates, combined with growth in the covered 
membership and actual salary increases greater than those assumed by the 
Actuary in the previous valuation. Liabilities of the fund are calculated 
under the "entry age normal" actuarial method, applied on an aggregate 
basis. 

The actuary did not see the increase of $33,132,000 in the unfunded 
liability as a threat to the continued payment of benefits to current or 
prospective pensioners nor to the financial health of the pension fund 
provided his recommendations to raise statutory contribution rates by 
adopting the level contribution funding method were adopted. Level 
contribution funding expresses employer contributions as the constant 
percentage of future payrolls that, together with future employee 
contributions and investment earnings, will finance the benefits for all 
new entrants to the plan to the extent that the unfunded liability is 
maintained as a constant percentage of future payrolls. 

The key actuarial assumptions made in the valuation may be tabulated as 
follows - 


Salary growth 

Interest on fund assets 

Mortality - active employees 


- other retired 


Withdrawal 


Retirement 
Retirement age 


5- 1/2% per annum 

6- 1/2% per annum 

1971 Group Annuity Mortality table - 
Males 55% 

Females 70% 

Progressive Annuity table 
rated down for - 

Males 1 year 

Females 2 years 

Graduated select experience, using a 
three year select period - 
Males 100% 

Females 90% 

Ultimate experience rates reduced to 
that used for inactive employees - 
Males 125% 

Females 100% 

Graduated observed experience based 
on 1976-81 experience 
55 - 65 


LONG-TERM INVESTMENTS HELD AS AT AUGUST 31, 1982 


PUBLIC ACCOUNTS 1982/83 


H 41 


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LONG-TERM INVESTMENTS HELD AS AT AUGUST 31, 1982 


H 42 


PROVINCE OF BRITISH COLUMBIA 


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COLLEGE PENSION FUND 


PUBLIC ACCOUNTS 1982/83 


H 43 


o o 

u 

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H 44 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Directors, British Columbia Railway Company, and 


To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the 
British Columbia Railway Company Pension Fund as at 31 December 
1982 and the statement of changes in fund balance for the year 
then ended. My examination was made in accordance with generally 
accepted auditing standards, and accordingly included such tests 
and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Fund as at 31 December 1982 and the 
changes in its fund balance for the year then ended in accordance 
with generally accepted accounting principles applied on a basis 
consistent with that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
25 May 1983 


PUBLIC ACCOUNTS 1982/83 


H 45 


EXHIBIT A 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT DECEMBER 31, 1982 


ASSETS 


Cash 

Contributions receivable 

Accrued interest on investments 

Investments (Notes (2b) and 3) 
Short-term 

Long-term (Schedule 1) 


1982 1981 


$ 1,793,508 

545,309 
2,237,377 

32,196,680 

45,694,673 

$ 82,467,547 


$ 1,561,648 

894,381 
1,793,455 

20,348,077 

42,224,197 

$ 66,821,758 


LIABILITY AND FUND BALANCE 


Accounts payable: 

Investment management fees 
Pensions 


Fund Balance (Exhibit B) 

Pension fund basic account 

Employee voluntary contributions account 


$ 46,685 $ 

7,470 8,606 


54,155 

8,606 

82,114,813 

298,579 

66, 583,283 

229,869 

82,413,392 

66,813,152 

$ 82,467,547 

$ 66,821,758 


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





Jobtyw. Cook, F.C.I.A. 


Superannuation Commissioner, Trustee 



C. Webster, C«-AT', Comptroller, Superannuation Commission 


H 46 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT B 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
STATEMENT OF CHANGES IN FUND BALANCE 
FOR THE YEAR ENDED DECEMBER 31, 1982 


1982 1981 


FUND BALANCE INCREASED BY: 

Employee contributions 
Regular and arrears 
Voluntary 


Employer contributions 
Current 

Amortization of unfunded liability (Note 4) 


Income from investments (Note 2) 

Losses on sale of investments (Notes 2(b) and 3) 


FUND BALANCE DECREASED BY: 
Pension payments 
Refunds 

Investment management fees 


NET INCREASE IN FUND BALANCE 
FUND BALANCE AT BEGINNING OF YEAR 


$ 3,205,648 $ 3,096,824 

41,770 46,144 


3,247,418 

3,142,968 

4,553,241 

972,000 

4,885,948 

568,000 

5,525,241 

5,453,948 

8,861,532 

7,085,654 

(46,024) 

(430,167) 

17,588,167 

15,252,403 


1,148,697 

926,592 

792,545 

1,020,707 

46,685 

- 

1,987,927 

1,947,299 

15,600,240 

13,305,104 

66,813,152 

53,508,048 

$ 82,413,392 

$ 66,813,152 


FUND BALANCE AT END OF YEAR (Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


H 47 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


1. DESCRIPTION OF THE BRITISH COLUMBIA RAILWAY COMPANY PENSION PLAN 

a) General 

The plan is a defined benefit pension plan, whereby benefits are not 
directly linked to contributions. All eligible employees are required to 
enrol. 

b) Retirement Benefits 

Members are eligible for unreauced benefits if they retire at age 60 or 
later with a minimum of 25 years contributory service or at age 65. 

Reduced pensions are available between age 55 and 65 with a minimum of 10 
years of contributory service. 

The plan provides a pension of 2% per year of service prior to age 65 up 
to a maximum of 70% of the average salary earned in the five highest 
earning years of any period of 10 consecutive years. At age 65 there is a 
reduction in the formula as a result of the integration with the Canada 
Pension Plan. Reference should be made to the plan text for a more 
detailed description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit having 
contributed to the fund for a minimum of 10 years are entitled to a 
deferred pension benefit. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 

2. SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Fund as at 
December 31, 1982 and the changes in Fund balance for the year then ended 
and do not purport to show the adequacy of the Fund to meet the 
obligations of the pension plan. While the statements have been prepared 
on a full accrual basis, no provision has been made for future pension 
benefits accrued to date under the terms of the plan. The results of the 
latest actuarial valuation of the plan are described in Note 4 below. 

b) Investment Valuation 

Long-term investments include bonds issued or guaranteed by Canada or a 
Province and bank deposits purchased with a term in excess of one year. 
They are carried at the lower of cost and par value, with "cost" definea 
as acquisition costs adjusted as follows: 

(i) Premiums are written off in the year of acquisition. 


H 48 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 


(ii) Discounts on serial bonds are recognized as income when 
redemptions occur. 

(iii) Discounts on single maturity bonds are amortized over the 
term of the bonds. 

Short-term investments include deposits with chartered banks and other 
approved financial institutions. They are carried at cost of acquisition. 


Gains and losses on disposal of investments are recognized as they occur. 

3. LONG-TERM INVESTMENTS 


Long-term investments held at the end of the year are as follows: 


1982 1981 

$ $ 


Book Value 
Par Value 
Market Value 


43,694,673 

46,277,000 

39,276,353 


42,224,197 

42,804,000 

28,182,970 


For more details see Schedule 1. 


The difference between the book value and market value of the 
investments is not considered to be a permanent reduction of the Fund 
balance available for payment of pension benefits and therefore has not 
been provided for, since it is generally expected that Fund investments 
will be held to maturity. However, during the year certain investments 
were disposed of in order to improve the yield to the Fund, resulting in 
book losses aggregating $46,024. It is anticipated that future increased 
interest earnings from reinvestment will more than offset these losses. 


4. ACTUARIAL VALUATION 

An actuarial valuation of the assets and liabilities of the Fund is 
required to be made by an Actuary every three years. A valuation was 
carried out as at December 31, 1981. The valuation disclosed that the 
Fund had unfunded liabilities of $8,557,000 ($6,756,000-1978 valuation). 

Liabilities of the fund are calculated under the "attained age" actuarial 
cost method. 

The Actuary recommended and the British Columbia Railway Company is making 
payments of $972,000 per annum to amortize the unfunded liabilities over a 
period of 21 years commencing January 1, 1982. Accordingly, current 
employer contributions are 8.7% of salary. 


PUBLIC ACCOUNTS 1982/83 


H 49 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 


4. ACTUARIAL VALUATION 

NOTES TO FINANCIAL STATEMENTS 

DECEMBER 31, 1982 

(Continued) 


The key actuarial assumptions made in the valuation are as follows - 


Salary growth 

11 1/2% per annum 1982-86 

8 1/2% per annum 1987-91 


5 3/4% per annum 1992 and later 
Interest rate on fund assets - 12 1/2% per annum 1982-86 



9 1/2% per annum 1987-91 

6 1/4% per annum 1992 and later 

Mortality 

All members 

1971 Male and Female Group Annuity 
Mortality Table 

Withdrawal 

Graduated observed ultimate experience 
of B. C. Railway. 

Retirement 

Graduated observed experience of B. C. 
Railway. 


BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
SCHEDULE 1 (Page 1 of 3) 

LONG-TERM INVESTMENTS HELD AS AT DECEMBER 31. 1982 


H 50 


PROVINCE OF BRITISH COLUMBIA 


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BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
SCHEDULE 1 (Page 2 of 3) 

LONG-TERM INVESTMENTS HELD AS AT DECEMBER 31, 1982 


PUBLIC ACCOUNTS 1982/83 


H 51 


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BRITISH COLUMBIA RAILWAY COMPANY PENSION FUND 
SCHEDULE 1 (Page 3 of 3) 

LONG-TERM INVESTMENTS HELD AS AT DECEMBER 31, 1982 


H 52 


PROVINCE OF BRITISH COLUMBIA 


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PUBLIC ACCOUNTS 1982/83 


H 53 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION FUND 



1 075 West Georgia Street 
Vancouver, British Columbia V6E3G1 
(604) 682-471 1 Telex: 04-507740 


May 6, 1983 


AUDITORS' REPORT 


Superannuation Commissioner, 

Province of British Columbia: 

We have examined the balance sheet of the British Columbia Hydro and Power 
Authority Pension Plan as at December 31, 1982 and the statement of changes in 
fund balance for the year then ended. Our examination was made in accordance 
with generally accepted auditing standards, and accordingly included such tests 
and other procedures as we considered necessary in the circumstances. The 
Minister of Finance of the Province of British Columbia has confirmed to us that 
the securities representing the Fund's investments were held for safekeeping by 
him as at December 31, 1982. 

In our opinion, these financial statements present fairly the financial position 
of the Plan as at December 31, 1982 and the changes in fund balance for the year 
then ended in accordance with the provisions of the Plan and generally accepted 
accounting principles applied on a basis consistent with that of the preceding 
year . 



Chartered Accountants 


M 


H 54 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION PLAN 
BALANCE SHEET 


Year ended Decemper 31 



1982 

1981 

ASSETS 




Cash 


$ 

746,414 

$ 

1,399,938 

Contributions receivable 



3,011,773 


4,746,936 

Accrued interest 



9,435,563 


8,411,207 

Investments: 

Short-term (Note 3) 

Long-term (Note 4) 



82,123,251 
264 , 156,947 


66,991,256 

232,879,556 



$ 

359,473,^48 

$ 

314,428,903 

LIABILITIES AND FUND 

BALANCE , 




Accounts payable: 

Administration and investment 
management expenses 

Pensions 


$ 

243,956 

18,687 

$ 

120,539 

42,415 




262,643 


162,954 

Fund balance: 

Pension account - amount available for payment of 
pensions in effect 

Compulsory contributions account 

Additional voluntary contributions account 
Employer matching contributions account 

Index pension account 

Index reserve account 

Reserve account 


99,941,524 

103,505,352 

1,253,475 

103,505,352 

20,660,872 

2,801,638 

27,543,092 


83,739,605 
94,900,090 
1,068,738 
94,900,090 
16,574 ,083 
(11,691,264) 
34,774,607 


359,211,305 

314,265,949 

$ 359,473,948 

$ 314,428,903 


APPROVED BY: 



PUBLIC ACCOUNTS 1982/83 


H 55 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION PLAN 
STATEMENT OF CHANGES IN FUND BALANCE 
FOR THE YEAR ENOED DECEMBER 31, 1982 


FUND BALANCE INCREASED BY 

Employee Contributions 
Basic pension 
Indexed pension 
Additional voluntary 
Reinstatement 

Employer matching contributions 
basic pension 
indexed pension 

'oluntary contributions transferred under 
clause 12 

Payment by B.C. Hydro in respect of- 
Actuarial deficiency (Note 2) 

Past service liability 

Indexed pensions additional (Note 5) 

Payment by Metro Transit Operating 
Company for indexing costs 

Transfers from other funds 

Interest on investments 


FUND BALANCE DECREASED BY 

Basic pension payments 

Indexed pension payments 

Employee contributions refundea 

Transfers to oth°r funds (Note 6) 

Administration, investment management 
and audit expenses 


INCREASE IN FUND BALANCE 

FUND BALANCE AT BEGINNING OF YEAR 


Year enaed 

December 31 

1962 

1981 

$ 15,019,833 

3,907,623 

421 , 798 

$ 13,540,260 

3,278,30 1 
363,255 
13,120 

15,019,833 

3,907,623 

13,540,260 

3,276,301 

69,463 

67,679 

3,061,000 

98,450 

5,606,169 

3,061,000 
393,800 
1,348,7 31 

666,963 

- 

255,559 

142,850 

37,990,699 

30,999,391 

86,027,213 

70,027,148 

11,004,402 

9,074,058 

3,450,745 

2,289,931 

1,689,530 

2,999,313 

24,672,189 

27,625 

264,991 

141,501 

41,061,857 

14,532,628 

44,945,356 

55,494,520 

314,265,949 

258,771,429 

$ 359,211,305 

$ 314,265,949. 


FUND BALANCE AT END OF YEAR 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION PLAN 
NOTES TO FINANCIAL STATEMENTS 
AS AT DECEMBER 31, 1982 


FINANCIAL STATEMENTS 

The financial statements show only the position of the Plan as at 
December 31, 1982 and the changes in the Fund balance for the year 
then ended and do not purport to show the adequacy of the Fund to 
meet the obligations of the Plan. 


ACTUARIAL VALUATION 

A preliminary actuarial report, dated May 4, 1983, prepared as of 
December 31, 1982 indicated an accrued actuarial deficit in the plan 
as of that date of approximately $75,000,000. Of this deficit, B.C. 
Hydro is funding approximately $45,000,000 by payments of $3,U6l,00Q 
per annum until 1999 and $1,200,000 per annum until 1997. Funding 
of the balance will be arranged after receipt of the final actuarial 
report and the actuary's recommendation. 


SHORT-TERM INVESTMENTS 

Short-term investments are recorded at cost, and comprise deposits 
with and notes of banks and other financial institutions which 
mature within twelve months from December 31, 1982. Interest 
accrued on these investments is included in the caption accrued 
interest on the balance sheet at December 31, 1982. 


LONG-TERM INVESTMENTS 


1982 1981 


At cost, after amortization of discounts 
Par value 
Market value 

Excess of cost over market value 


$264,156,947 
$266,204,500 
$235,273,397 
$ 28,883,550 


$232,879,556 
$234,879,000 
$152,544,490 
$ 80,335,066 


The market value of the Plan's investments at December 31, 1982 is 
$28,883,550 less than amortized cost. As there is no permanent 
impairment in the value of the investments, and the intention is to 
hold the investments until maturity when they will be redeemed at par, 
these investments have not been written down to recognize tne 
difference between the investments' carrying value and market value. 


PUBLIC ACCOUNTS 1982/83 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION PLAN 
NOTES TO FINANCIAL STATEMENTS 
AS AT DECEMBER 31, 1982 


INDEXED PENSIONS 

Indexing payments to pensioners are funded by specific compulsory 
employer and employee contributions each at the rate of 1.6% of plan 
earnings and a certain portion of interest earned in excess of 
actuarial expectations. Supplements are added annually at each 
January 1. Each supplement is related to the consumer price index 
increase, but may be limited by the amount of funos available each 
year for the purpose. As at January 1, 1983 funds were available to 
provide an increase equal to the full amount of the consumer price 
index increase of 10.355%. 

B.C. Hydro has assumed responsibility for the liabilities resulting 
from the old indexing formula, wnich amounted to approximately 
$15,500,000. This amount is being funded by a payment of $4,710,000 
in March 1982 and subsequent quarterly payments ef approximately 
$300,000 until 1997. In 1981, B.C. Hydro made an additional 
contribution of $1,348,731 for the difference between indexed 
contributions from October 1, 1980 to December 31, 1980 at 1.6% of 
plan earnings and actual contributions at 0.5% of plan earnings. 


SEPARATION OF PASSENGER TRANSPORTATION EMPLOYEES 

Urban passenger transportation services were transferred from British 
Columbia Hydro and Power Authority to Metro Transit Operating Company 
as of April 1, 1980. A total of approximately 3,000 employees were 
transferred to the Metro Transit Operating Company at various dates 
from April 1980 to June 1981. Previously, intefurban passenger 
transportation services were transferred to Pacific Coach 
Lines Limited involving approximately 240 employees. 

The Lieutenant Governor in Council issued regulations whereby the 
pension rights, including appropriate pension funds, were to be 
transferred from the fund to the Public Service Superannuation Fund. 
In this connection, $20,919,000 par value of investments were 
transferred at $20,868,669 book value plus $320,039 accrued interest 
and $3,483,480 cash in settlement of the $24,672,189 transfer amount 
as at May 6, 1982. Assets of approximately $2,400,000 are still to 
be transferred in respect of the Pacific Coach Lines Limited 
employees. 


BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PENSION PLAN 


H 58 


PROVINCE OF BRITISH COLUMBIA 


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PUBLIC ACCOUNTS 1982/83 


H 59 


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H 60 


PROVINCE OF BRITISH COLUMBIA 


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H 61 


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Accrued interest on investments $9,435,563 as shown on the Balance Sneet, includes accrued interest on bank accounts of $18 034 
short-term investments of $2,403,168. ’ 


H 62 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Directors, British Columbia Hydro and Power Authority, and 

To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the 
British Columbia Power Commission Superannuation Fund as at 
31 December 1982 and the statement of changes in fund balance for 
the year then ended. My examination was made in accordance with 
generally accepted auditing standards, and accordingly included 
such tests and other procedures as I considered necessary in the 
circumstances . 

In my opinion, these financial statements present fairly the 
financial position of the Fund as at 31 December 1982 and the 
changes in its fund balance for the year then ended in accordance 
with generally accepted accounting principles applied on a basis 
consistent with that of the preceding year. 



Erma" Morrison , F.C.A 
Auditor General 


Victoria, British Columbia 
20 April 1983 



PUBLIC ACCOUNTS 1982/83 


H 63 


BRITISH COLUMBIA POWER COMMISSION 

SUPERANNUATION FUND 



STATEMENT OF FINANCIAL 

POSITION 



AS AT DECEMBER 31, 

, 1982 




1982 


1981 

ASSETS 




Cash 

$ 640,570 

$ 

585,467 

Contributions receivable 

10,100 


11,238 

Accrued interest on investments 

552,932 


517 , 282 

Investments (Note 2(b)) 




Short-term 

4,000,000 


2,435,57 6 

Long-term (Note 3 and Schedule 1) 

21,858,379 


22,422,163 


$ 27,061,981 

$ 

25,971,726 


LIABILITY AND FUND BALANCE 

LIABILITY 

Accounts payable $ 41,502 $ 31,716 

FUND BALANCE (Exhibit B) 

Contributory pensions account - amount 


available for payment of pensions in force 
Special reserve account (Note 5) 
Undistributed interest account 
Members and employees contributory account 
Members and employees voluntary account 
Employer contributory account 
Unclaimed monies account 


The five accompanying notes are an integral 
APPROVED BY: 


7,991,171 

7,775,994 

151,479 

151,479 

7,672,166 

6,668,150 

5,443,114 

5,515,821 

314,649 

307,959 

5,443,114 

5,515,821 

4,786 

4,786 

27,020,479 

25,940,010 

$ 27,061,981 

$ 25,971,726 


of these financial statements. 



Johfn/W. Cook, F.C.I.A., Acting Superannuation Commissioner, 


Trustee 



C. Webster, C^ArrT' Comptroller, Superannuation Commission 


H 64 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 

EXHIBIT B 

STATEMENT OF CHANGES IN FUND 

BALANCE 


FOR THE YEAR ENDED DECEMBER 

31, 1982 



1982 

1981 




FUND BALANCE INCREASED BY: 

Employee contributions: 

Regular 

$ 17,999 

$ 43,931 

Voluntary 

483 

3,511 

Reinstatement 

- 

236 


18,482 

47,678 

Employer matching contributions 

17,999 

43,931 

Matching transfer of voluntary to regular 

1,313 

- 

Income from investments 

2,433,917 

2,315,521 

Losses on sales of investments (Notes 2(b) and 3) 

(188,887) 

- 


2,282,826 

2,407,130 

FUND BALANCE DECREASED BY: 

Superannuation allowance payments: 

Contributory 

869,473 

814,268 

Cost of living supplements (Note 4) 

276,711 

169,276 

Refunds 

5,422 

59,879 

Transfers to other funds 

30,918 

36,531 

Administration expenses 

11,692 

17,256 

Investment management fees 

8,141 

- 


1,202,357 

1,097,210 

NET INCREASE IN FUND BALANCE 

1,080,469 

1,309,920 

FUND BALANCE AT BEGINNING OF YEAR 

25,940,010 

24,630,090 

FUND BALANCE AT END OF YEAR (Exhibit A) 

$ 27,020,479 

$ 25,940,010 


PUBLIC ACCOUNTS 1982/83 


H 65 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


1. DESCRIPTION OF THE BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION PLAN 

a) General 

The plan is a defined benefit plan, whereby benefits are not directly 
linked to contributions, except that certain benefit options are 
calculated by reference to the "money purchase" tables. All members of 
the plan are former employees of the British Columbia Power Commission, 
which became a part of British Columbia Hydro and Power Authority at its 
inception in 1963. Most members have deferred pension rights, as they 
now contribute to the British Columbia Hydro and Power Authority Pension 
Fund. 

b) Retirement Benefits 

Members are eligible for unreduced benefits if they retire at age 50 and 
the sum of the member's age and years of service is not less than 65. 

The "half to the widow" plan benefit option is calculated on the 2% 
formula, while guarantee and joint life options are calculated on the 
money purchase formula. 

The 2% formula is based on 2% per year of service up to a maximum of 70% 
of the average salary earned in any consecutive period of 10 years 
during which the salary was highest. There is a reduction in the 
formula as a result of the integration with the Canada Pension Plan. 

The money purchase plan is based on the total amount of the member's 
contributions, the matching employer contributions, plus the accumulated 
interest on these contributions. 

Reference should be made to the plan text for a more detailed 
description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit having 
contributed to the fund for a minimum of ten years are entitled to a 
deferred pension benefit. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 

2. SIGNIFICANT ACCOUNTING POLICIES 
a) General Information 

These financial statements show only the position of the Fund as at 
December 31, 1982 and the changes in Fund balance for the year then 
ended and do not purport to show the adequacy of the Fund to meet the 
obligations of the pension plan. While the statements have been 
prepared on a full accrual basis, no provision has been made for future 
pension benefits accrued to date under the terms of the plan. The 
results of the latest actuarial valuation of the plan are described in 
Note 5 below. 


H 66 


PROVINCE OF BRITISH COLUMBIA 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
DECEMBER 31, 1982 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 
b) Investment Valuation 

Long-term investments include bonds issued or guaranteed by Canada or a 
Province. Long-term investments are carried at the lower of cost and 
par value, with "cost" defined as acquisition costs adjusted as follows: 

(i) Premiums are written off in year of acquisition. 

(ii) Discounts on single maturity bonds are amortized over the term 
of the bonds. 

(iii) Discounts on serial bonds are recognized as income when 
redemptions occur. 

Short-term investments include deposits in chartered banks and other 
approved financial institutions. They are carried at cost of 
acquisition. 

Gains and losses on disposal of investments are recognized as they 
occur. 

3. LONG-TERM INVESTMENTS 

Long-term investments held at the end of the year are as follows: 


1982 1981 
$ $ 

Book Value 21,858,379 22,422,163 
Par Value 22,171,900 22,643,600 
Market Value 17,023,216 13,292,453 


For more details see Schedule I. 

The difference between the book value and market value of the 
investments is not considered to be a permanent reduction of the Fund 
balance available for payment of pension benefits and therefore has 
not been provided for as at December 31, 1982, since it is generally 
expected that Fund investments will be held to maturity. However, 
during the year certain investments were disposed of in order to 
improve the yield to the Fund, resulting in book losses aggregating 
$188,887. It is anticipated that increased interest from reinvestment 
will more than offset these losses. 

4. PRESENT VALUE OF PENSIONS IN FORCE 

The present value of the 365 (347-1981) pensions in force as of 
December 31, 1982 is $9,9 33,605 ($9,248,674-1981). This amount has 
been calculated on a basis consistent with that of previous years, and 
now includes the present value of supplementary allowances, which are 
charged to Undistributed Interest Account. 


PUBLIC ACCOUNTS 1982/83 


H 67 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 


NOTES TO FINANCIAL STATEMENTS 


DECEMBER 31, 1982 


5. ACTUARIAL VALUATION 

According to the regulations applicable to the Fund, an actuarial 
valuation of the sufficiency of the Special Reserve Account of the 
Fund is to be made by an Actuary every three years. The most recent 
valuation was carried out as at December 31, 1981. According to this 
valuation the consulting actuaries have concluded that there are now 
no employees who are expected to benefit from the Special Reserve. 
They have recommended that the Special Reserve Account amounting to 
$131,479 be reduced to nil. The Contributory Pensions Account had an 
actuarial deficiency of $481,000, which the consulting actuaries 
recommended be funded by transfer of $481,000 plus interest from the 
Undistributed Interest Account. 

The key actuarial assumptions made in the valuation may be tabulated 
as follows - 


Salary growth 
Interest on fund assets 
Mortality - all members 


5 1/2% per annum 
7 1/2% per annum 
1949 Annuity Table 
(Projected 10 years) 
63 


Retirement age 


BRITISH COLUMBIA POWER COMMISSION SUPERANNUATION FUND 


H 68 


PROVINCE OF BRITISH COLUMBIA 


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(EXHIBIT A) 


H 72 


PROVINCE OF BRITISH COLUMBIA 


WORKERS’ COMPENSATION BOARD SUPERANNUATION FUND 



Province of 
British Columbia 


Office of the 

Auditor General 

Province of British Columbia 


8 Bastion Square 
Victoria 

British Columbia 
V8V 1X4 


AUDITOR'S REPORT 


To the Directors, Workers' Compensation Board, and 

To the Provincial Secretary and Minister of Government Services 
Province of British Columbia: 


I have examined the statement of financial position of the Workers' 
Compensation Board Superannuation Fund as at 31 March 1983 and the 
statement of changes in fund balance for the year then ended. My 
examination was made in accordance with generally accepted auditing 
standards, and accordingly included such tests and other procedures 
as I considered necessary in the circumstances. 

In my opinion, these financial statements present fairly the 
financial position of the Fund as at 31 March 1983 and the changes 
in its fund balance for the year then ended in accordance with 
generally accepted accounting principles applied on a basis 
consistent with that of the preceding year. 



Erma Morrison, F.C.A 
Auditor General 


Victoria, British Columbia 
29 June 1983 


PUBLIC ACCOUNTS 1982/83 


H 73 


EXHIBIT A 


WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 
STATEMENT OF FINANCIAL POSITION 
AS AT MARCH 31, 1983 


1983 1982 


ASSETS 


Cash 

Contributions receivable 

Accrued interest on investments 

Investments (Note 2(b)) 

Short-term 

Long-term (Note 3 and Schedule 1) 


$ 1,372,868 

1,886,615 

5,575,000 

35,777,925 

$ 44,612,408 


$ 435,278 

407 
986,665 

2,200,000 

32,269,986 

$ 35,892,33 6 


LIABILITY AND FUND BALANCE 


LIABILITY 

Accounts payable 

FUND BALANCE (Exhibit B) (Note 4) 
Basic account 

Inflation adjustment account 


$ 10,130 $ 

43,617,348 35,892,336 


984,930 


44,602,278 

35,892,336 

$ 44,612,408 

$ 35,892,336 


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


APPROVED BY: 


Vp "/va l/J 


Jo^r/i W. Cook, F.C.I.A., Acting Superannuation Commissioner, Trustee 


'AXajl, 

C. Webster, C.A<-f''Comptroller, Superannuation Commission 


H 74 


PROVINCE OF BRITISH COLUMBIA 


EXHIBIT B 


WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 
STATEMENT OF CHANGES IN FUND BALANCE 
FOR THE YEAR ENDED MARCH 31, 1983 


FUND BALANCE INCREASED BY: 

Contributions: 

Member and employee: 

Regular 

Cost of living supplements 
Inflation adjustment 
Voluntary 


Employer: 

Regular 

Cost of living supplements 
Inflation adjustment 
Additional Board contributions 


Transfers from other funds 
Income from investments 


FUND BALANCE DECREASED BY: 

Superannuation allowance payments: 
Contributory 

Cost of living supplements (Note 4) 
Refunds 


NET INCREASE IN FUND BALANCE 
FUND BALANCE AT BEGINNING OF YEAR 


1983 


1982 


$ 2 

,472 

,244 


242 

,273 


226 

,894 


8 

,071 

2 

,949 

,482 

2 

,472, 

,244 


242, 

,273 


226, 

,894 


453, 

,788 

V/J I 

,395, 

,199 


114, 

,943 

4, 

,587, 

,362 


,046, 

,986 

1, 

,311, 

192 


655, 

587 


370, 

265 

2, 

337, 

044 

00 

709, 

942 

35, 

892, 

336 

$ 44, 

602, 

278 


$ 2 

,103, 

,367 


203, 

,817 


9, 

,986 

1 ^ 1 

,317 , 

,170 

2, 

,103, 

,367 


203, 

,817 

K) | 

,307 , 

t— ■ 

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-> 


70, 

,939 

3, 

,424, 

,327 

co 

,119, 

620 


1 

,106, 

,573 


571, 

,062 


541, 

, 137 

2, 

,218, 

,772 

5, 

,900, 

,848 

29, 

,991, 

,488 

$ 35, 

,892, 

,336 


FUND BALANCE AT END OF YEAR (Exhibit A) 


PUBLIC ACCOUNTS 1982/83 


H 75 


WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 
NOTES TO FINANCIAL STATEMENTS 
MARCH 31, 1983 


1. DESCRIPTION OF THE WORKERS' COMPENSATION BOARD SUPERANNUATION PLAN 

a) General 

The plan is a defined benefit plan, whereby benefits are not directly 
linked to contributions. The plan is open to all eligible employees ana 
Boara members of the Workers' Compensation Board. 

b) Retirement Benefits 

Members are eligible for unreduced benefits if they retire at age 55 
with a minimum of 35 years contributory service and 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. 

The plan provides a pension of 2% per year of service prior to age 65 up 
to a maximum of 70% of the average salary earned in the five highest 
earning years before retirement. At age 65, date of death or disability 
there is a reduction in the formula as a result of the integration with 
the Canada Pension Plan. Reference should be made to the plan text for 
a more detailed description of the benefits. 

c) Termination Benefits 

A terminating employee may choose between leaving accumulated 
contributions on deposit or obtaining a refund. The refund includes 
interest credited. Employees leaving contributions on deposit are 
entitled to a deferrea pension benefit' if they have completed a minimum 
of 10 years contributory service. 

d) Other Benefits 

Disability and Survivor benefits are available under the plan. 

2. SIGNIFICANT ACCOUNTING POLICIES 

a) General Information 

These financial statements show only the position of the Fund as at 
March 31, 1983 and the changes in Fund balance for the year then ended 

and do not purport to show the adequacy of the Fund to meet the 

obligations of the superannuation plan. While the statements have been 

prepared on a full accrual basis, no provision has been made for future 

benefits accrued to date under the terms of the plan. The results of 
the latest actuarial valuation of the plan are described in Note 5 below. 

b) Investment Valuation 

Long-term investments include bonds issued or guaranteed by Canada, a 
Province or municipal authorities and deposits with chartered banks and 
other approved financial institutions purchased with terms in excess of 
one year. These investments are carried at amortized cost, with 
premiums and discounts on bonds being amortized on a straight line oasis 
over the terms of the bonds. In 1982 and prior years, premiums on bonds 
were written off in the year of acquisition. The effects of tnis change 
in the method of adjusting the cost of bonds is not significant to these 
financial statements. 


H 76 


PROVINCE OF BRITISH COLUMBIA 


WORKERS' COMPENSATION BOARO SUPERANNUATION FUND 


NOTES TO FINANCIAL STATEMENTS 


MARCH 31, 1983 


2. SIGNIFICANT ACCOUNTING POLICIES (Continued) 

Short-term investments consist of term deposits in approved financial 
institutions. They are carried at cost. 

3. LONG-TERM INVESTMENTS 

Long-term investments held at the end of tne year are as follows - 


1983 

$ 


1982 

$ 


Book Value 
Par Value 
Market Value 


35,777,925 32,269,986 
37,317,200 33,936,200 
33,875,898 24,281,181 


For more details see Schedule 1. 

The difference between the book value and market value of the 
investments is not considered to be a permanent reduction of the Fund 
balance available for payment of plan benefits and therefore has not 
been provided for as at March 31, 1983, since it is generally expected 
that Fund investments will be held to maturity. 

4 . FUND BALANCE 

The Fund Balance is made up of a Basic Account ana an Inflation 
Adjustment Account. Payment of supplementary allowances, adjusted 
quarterly in relation to the cost of living index, commenced July 1, 
1975. The last quarterly increase was granted January 1, 1983. 

Effective January 1, 1984, allowances will be adjusted each January 1st 
in relation to the annual increase in the consumer price index as at 
each previous September 30th. The increases may be limited by the 
availability of funds in the Inflation Adjustment Account to provide 
their capitalized value. The Inflation Adjustment Account was created 
October 1, 1982 and includes contributions by employees and the employer 
each at the rate of 1% of salary, the interest income earned therefrom, 
and interest income on funds attributed to the payment of pensions in 
excess of the rate assumed by the actuary, less refunds to former 
contributors. The Basic Account consists of all other assets of the 
Fund. The former cost of living supplement contributions were increased 
from 1/2% to 1% of salary effective April 1, 1982 and discontinued 
September 30, 1982. 

5. ACTUARIAL VALUATION 

According to the Workers' Compensation Board Superannuation Plan 
Regulations, an actuarial valuation of the assets and liabilities of the 
Plan is required to be made by an Actuary from time to time at intervals 
of not more than three years. The most recent valuation was carried out 
as at September 30, 1982. This valuation indicated an unfunded 
liability of approximately $24,361,000. This represents a decrease of 
$11,987,000 since the previous valuation as at March 31, 1981. Among 
the factors contributing to this net decrease in the unfunded liability 
were amendments to the pension plan that discontinued automatic future 
pension indexing and a change in the method of valuing assets - reducing 
the unfunded liability by $22,657,000 and $6,436,000 respectively - and 
a change in the method of valuing future pension liabilities by use of 


PUBLIC ACCOUNTS 1982/83 


H 77 


WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 


NOTES TO FINANCIAL STATEMENTS 


MARCH 31, 1983 


5. ACTUARIAL VALUATION (Continued) 

the "entry age normal" actuarial method instead of the "unit credit" 
method - increasing the liability by $4,823,000. 

The key actuarial assumptions made in the valuation are as follows - 


Salary growth 

Interest on fund assets 

Mortality - active employees 


3-1/2% per annum 
6-1/2% per annum 

1971 Group Annuity Mortality table 
reduced to 85% for males 
Progressive Annuity table without 
rating for males and rated down two 
years for females 
Graduated select, ana ultimate 
experience using a three year select 
period 

Graduated observed experience 
55 - 65 


- other retired 


Withdrawal 


Retirement 
Retirement age 


6. COMPARATIVE FIGURES 

Certain 1982 comparative figures on the statements of financial position 
and changes in fund balance have been reclassified to conform with the 
financial statement presentation adopted in 1983. These changes have had 
no effect on the fund balance or net increase in fund balance for 1982. 


LONG-TERM INVESTMENTS HELD AS AT MARCH 31, 


H 78 


PROVINCE OF BRITISH COLUMBIA 


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WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 


PUBLIC ACCOUNTS 1982/83 


H 79 


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Newfoundland & Labrador Hydro May 9, 2002 10.000 12.175 1,125,000 978,593 901,687 43,767 
Newfoundland & Labrador Hydro Sept. 28, 2002 10.000 10.081 350,000 347,961 280,175 288 


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H 80 


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WORKERS' COMPENSATION BOARD SUPERANNUATION FUND 


PUBLIC ACCOUNTS 1982/83 


H 81 


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GOV OOC CA2 BC FC P721 1983-V-3 
BRITISH COLUMBIA 

PUBLIC ACCOUNTS OF BRITISH 
COLUMBIA FOR THE FISCAL YEAR 
SERIAL M2 HOI 75486 GOV PUB 


*0000396 1 9 M57* 


DATE DUE SLIP