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University of Alberta Library 



Public Accounts 

2000-01 


Volume 1 



GOV 
DOC 
CA2 
SA FN 
P711 
2000 / 


2001 : v . 1 
HSS 


Main Financial Statements 





Ex LIBRIS 

UNIVERSITATIS 

ALBERTENSIS 


Public Accounts, 2000-01 


1 


Table of Contents 

Transmittal Letters 


Page 

3 


Introduction to the Public Accounts 

Sources of Additional Information 

Financial Reporting Structure 

General Revenue Fund Financial Statements 
Responsibility for General Revenue Fund Financial Statements . . 

Provincial Auditor's Report 

Statement of Financial Assets, Liabilities, and Accumulated Deficit 
Statement of Revenue, Expenditure, and Accumulated Deficit . . . 

Statement of Cash Flow 

Notes to the Financial Statements 

Schedules to the Financial Statements 

Schedule 1 - Accounts Receivable 

Schedule 2 - Loans to Crown Corporations 

Schedule 3 - Other Loans 

Schedule 4 - Accounts Payable and Accrued Liabilities 

Schedule 5 - Deposits Held 

Schedule 6 - Debt 

Schedule 7 - Sinking Funds 

Schedule 8 - Debt by Maturity 

Schedule 9 - Guaranteed Debt 

Schedule 10 - Revenue 

Schedule 1 1 - Loss on Loans and Investments 

Schedule 12 - Net Change in Non-cash Operating Activities 

Schedule 13 - Investing Activities 

Fiscal Stabilization Fund 

Schedule of Transfers and Accumulated Balance 



4 

4 

5 


9 

11 

12 

13 

14 

15 

23 

23 

24 

25 

25 

26 

27 

28 
29 

31 

32 

32 

33 


37 


Summary Financial Statements 

Responsibility for Summary Financial Statements 41 

Provincial Auditor's Report 43 

Summary Statement of Financial Assets, Liabilities, and Accumulated Deficit 44 

Summary Statement of Revenue, Expenditure, and Accumulated Deficit 45 

Summary Statement of Cash Flow 46 

Notes to the Summary Financial Statements 47 

Schedules to the Summary Financial Statements 

Schedule 1 - Accounts Receivable 56 

Schedule 2 - Loans and Mortgages Receivable 56 

Schedule 3 - Investment in Government Enterprises 58 

Schedule 4 - Other Investments 61 

Schedule 5 - Accounts Payable and Accrued Liabilities 65 

Schedule 6 - Other Liabilities 65 

Schedule 7 - Public Debt 66 

Schedule 8 - Sinking Funds 67 

Schedule 9 - Public Debt by Maturity 68 

Schedule 10 - Guaranteed Debt 70 

Schedule 1 1 - Revenue 72 

Schedule 12 - Gains and Losses on investments 73 

Schedule 13 - Net Change in Non-cash Operating Activities 73 

Schedule 14 - Reporting Entity 74 

General Revenue Fund - Details of Debentures 76 

Glossary of Terms 85 




Public Accounts, 2000-01 


3 


To Her Honour 

The Honourable Lynda Haverstock 

Lieutenant Governor of the Province of Saskatchewan 


May It Please Your Honour: 


The undersigned has the honour to submit herewith the main financial statements of the Government of the Province of 
Saskatchewan for the fiscal year ended March 31 , 2001 . 

Respectfully submitted, 



Eric Cline 

Minister of Finance 

Regina, Saskatchewan 
June 2001 


The Honourable Eric Cline 
Minister of Finance 


We have the honour of presenting herewith the main financial statements of the Government of the Province of 
Saskatchewan for the fiscal year ended March 31 , 2001 . 

Respectfully submitted, 



Paul Boothe Terry Paton 

Deputy Minister of Finance Provincial Comptroller 


Regina, Saskatchewan 
June 2001 


4 


Public Accounts 2000-01 


Introduction to the Public Accounts 

The 2000-01 Public Accounts of the Government of Saskatchewan are organized into two reports: 

Volume 1 contains the General Revenue Fund Financial Statements and the Summary Financial Statements. These 
are the main financial statements of the Government of Saskatchewan. It also contains information on the Fiscal 
Stabilization Fund. 

The General Revenue Fund Financial Statements account for the financial transactions of the General Revenue Fund 
and the Province of Saskatchewan Sinking Funds. All public money is paid into the General Revenue Fund except 
where the Legislative Assembly has directed otherwise. The General Revenue Fund is available for appropriation for 
the public services of Saskatchewan. 

The Summary Financial Statements consolidate the financial transactions of the General Revenue Fund, Crown 
corporations, agencies, boards and commissions. These consolidated statements provide a full accounting of the 
financial affairs and resources of all entities for which the Government is responsible. 

The Fiscal Stabilization Fund was established April 1 , 2000. Its purpose is to stabilize the fiscal position of the 
Government from year to year and to facilitate the accomplishment of long term objectives. 

Volume 1 also contains detailed information on public issue debentures and debentures issued to the Minister of 
Finance of Canada. 

Volume 2 contains the following: 

• details on the revenue and expenditure of the General Revenue Fund; and, 

• other information including financial information on the assets, liabilities and residual balances of superannuation and 
trust funds administered by the Government, and a listing of remissions of taxes and fees. 

Internet Address 

The Public Accounts are available on the Internet at: http://www.gov.sk.ca/finance 

Sources of Additional Information 

Financial Statements Compendium 

This is a two-part report comprised of the financial statements of various government boards, agencies, commissions, 
superannuation funds, special purpose funds and institutions, as well as Crown corporations which are accountable to the 
Treasury Board. 

Annual Reports of Saskatchewan Crown Corporations 

This is a compendium of the financial reports of Crown corporations that are accountable to the Crown Investments 
Corporation. 

Budget Address 

The Government of Saskatchewan presents a budget each year, usually early in the spring. At this time, a document 
containing the Budget Address and budget papers is tabled. 

Saskatchewan Estimates 

The Government’s spending estimates for the year commencing April 1 are presented to the members of the Legislative 
Assembly following presentation of the Budget Address by the Minister of Finance. The Estimates outline the detailed 
estimates of revenue, expenditure, loans, advances, and investments to the Legislative Assembly for approval in the form 
of The Appropriation Act. 

Province of Saskatchewan Mid-Year Financial Report 

This report, released in November, provides an update on the Province’s revenue, expenditure, and surplus, reflecting 
economic changes and other developments to the mid-point of the fiscal year. Updates on the Province’s economy, loans, 
investments, and debt are also provided. 


UNIVERSITY LIBRARY 
UNIVERSITY OF ALBERTA 


Public Accounts, 2000-01 


5 


Financial Reporting Structure 



Financial Control and Reporting 
Financial Reporting 

1 Examples of CIC Crown corporations are: SaskEnergy, SaskPower, SaskTei, SGI, and STC. 

2 Examples of Treasury Board Crown corporations are: Agricultural Credit Corporation of Saskatchewan, Saskatchewan Liquor and 
Gaming Authority, Saskatchewan Crop Insurance Corporation and Saskatchewan Property Management Corporation. 






General Revenue Fund 
Financial Statements 




General Revenue Fund 


9 


Responsibility for General Revenue Fund Financial Statements 

The Government is responsible for the General Revenue Fund Financial Statements. The Government maintains a 
system of accounting and administrative controls to ensure that accurate and reliable financial statements are prepared 
and to get reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are 
maintained. 

The Provincial Comptroller prepares these statements following the Government's stated accounting policies and using the 
Government's best estimates and judgement when appropriate. 

The Provincial Auditor expresses an independent opinion on these statements. His report, stating the scope of his audit 
and opinion, appears on the following page. 

Treasury Board approves the General Revenue Fund Financial Statements. The Minister of Finance tables the 
statements in the Legislative Assembly as part of the Public Accounts. The Legislative Assembly refers the Public 
Accounts to the Standing Committee on Public Accounts for review. 

On behalf of the Government of the Province of Saskatchewan. 



Eric Cline 

Minister of Finance 



Paul Boothe 

Deputy Minister of Finance 



Terry Paton 
Provincial Comptroller 


Regina, Saskatchewan 
June 2001 





General Revenue Fund 


11 


Auditor’s Report 

To the Members of the Legislative Assembly 
of Saskatchewan 

These financial statements report transactions and events of the General Revenue Fund only. Significant 
financial activities of the Government occur outside this Fund. Therefore, readers should not use the General 
Revenue Fund’s financial statements to understand and assess the Government’s management of public 
financial affairs and resources as a whole. 

Volume 1 of the Public Accounts includes a more complete set of financial statements. Those statements are 
called the Summary Financial Statements of the Government of Saskatchewan. Their purpose is to report the full 
nature and extent of the financial affairs and resources for which the Government is responsible. Please refer to 
those summary statements to understand and assess the Government’s management of public financial affairs 
and resources as a whole. 

I have audited the statement of financial assets, liabilities, and accumulated deficit of the General Revenue Fund as at 
March 31, 2001 and the statements of revenue, expenditure, and accumulated deficit and cash flow for the year then 
ended. These financial statements are the responsibility of Treasury Board. My responsibility is to express an opinion on 
these financial statements based on my audit. 

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I 
plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material 
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by 
management, as well as evaluating the overall financial statement presentation. 

Reservations 

1 . The financial statements show a liability of $775 million owed to the Fiscal Stabilization Fund and an expenditure of 
$775 million for the current year. However, it is not appropriate to record the $775 million as an expenditure because 
the Fiscal Stabilization Fund must return the $775 million to the General Revenue Fund. The substance of the 
transaction is that the General Revenue Fund owes $775 million to the Fiscal Stabilization Fund and the Fiscal 
Stabilization Fund owes the $775 million back to the General Revenue Fund. In my opinion, instead of recording an 
expenditure of $775 million, the financial statements should record an asset of $775 million owed from the Fiscal 
Stabilization Fund. Had the transaction been properly recorded, financial assets and the surplus for the year would 
increase by $775 million and expenditure and the accumulated deficit would decrease by $775 million. 

2. The General Revenue Fund is responsible for the liabilities of several pension funds. Note 6 indicates those pension 
liabilities are not recorded in these financial statements. In my opinion, pension liabilities should be recorded in the 
financial statements. Had pension liabilities been recorded, liabilities and accumulated deficit would increase by $3,913 
million (2000 - $3,801 million) and expenditure would increase by $1 12 million (2000 - $52 million) and surplus for the 
year would decrease by $1 12 million (2000 - $52 million). 

Opinion 

In my opinion, except for the effects of recording an asset as an expenditure of the current year and the failure to record 
pension liabilities as described in the preceding paragraphs, these financial statements present fairly, in all material 
respects, the financial position of the General Revenue Fund as at March 31, 2001 and the results of its operations and its 
cash flows for the year then ended in accordance with Canadian generally accepted accounting principles for the public 
sector. 



June 5, 2001 Acting Provincial Auditor 


12 


Public Accounts, 2000-01 


General Revenue Fund 

Statement of Financial Assets, Liabilities, and Accumulated Deficit 

As at March 31 , 2001 



(thousands of dollars) 

Schedule 

2001 2000 


Financial Assets 

Cash and temporary investments (note 3) 

$ 

361,328 

$ 

452,222 

Prepaid expenditures 


2,137 


2,185 

1 Accounts receivable 


432,412 


395,342 

Agricultural land held for resale (note 4) 


112,653 


113,940 

Deferred charges 


57,161 


33,251 

Deferred foreign exchange loss 


234,326 


162,074 

2 Loans to Crown corporations 


3,478,962 


3,343,651 

3 Other loans 


37,675 


35,062 

Equity investment in Crown Investments Corporation of Saskatchewan 


1,362,452 


1,362,452 

Total Financial Assets 


6,079,106 


5,900,179 


Liabilities 


4 Accounts payable and accrued liabilities 

5 Deposits held 

Unearned revenue 

6,7&8 Debt 


740,897 

1,391,145 

73,482 

10,884,441 


784,249 

1,242,391 

70,768 

10,871,321 


Total Liabilities 

13,089,965 

12,968,729 

Accumulated Deficit 

$ (7,010,859) 

$ (7,068,550) 


(See accompanying notes) 


Tangible capital assets (note 5) 

Pension liabilities, contingencies, and commitments (notes 6, 10, 11) 
9 Guaranteed debt 


General Revenue Fund 


13 


General Revenue Fund 

Statement of Revenue, Expenditure, and Accumulated Deficit 

For the Year Ended March 31 , 2001 

(thousands of dollars) 

Schedule 

Budget 

2001 

Actual 

2001 


Actual 

2000 

Revenue 

10 Taxation 

$ 3,188,800 S 

3 , 202,234 

$ 

3,222,839 

10 Non-renewable resources 

750,600 

1 , 292,714 


943,150 

10 Transfers from Government entities 

1,194,100 

1 , 055,387 


160,516 

10 Other own-source revenue..... 

307,700 

331,104 


321,602 

10 Transfers from the federal government 

941,200 

872,164 


1,208,825 

Total Revenue 

6,382,400 

6 , 753,603 


5,856,932 

Operating Expenditure 

Executive Branch of Government 

Agriculture and Food... 

248,748 

221,481 


337,797 

Centenary Capital Fund.......... 

30,000 

29,954 


- 

Culture, Youth and Recreation 



6,318 


- 

Economic and Co-operative Development 

59,939 

72,529 


45,655 

Education 

588,461 

581,635 


568,596 

Energy and Mines 

17,024 

18,880 


17,332 

Environment and Resource Management 

116,924 

125,356 


147,392 

- Forest Fire Contingency 

50,000 

3,848 


- 

Executive Council 

7,349 

7,227 


7,136 

Finance 

201,352 

197,911 


186,139 

Health 

1,977,697 

2 , 025,833 


1,955,736 

- Transition Fund 

150,000 

49,817 


- 

Highways and Transportation 

250,044 

273,307 


235,857 

Intergovernmental and Aboriginal Affairs 

34,754 

34,653 


29,153 

Justice 

220,416 

232,207 


228,748 

Labour... 

12,658 

12,637 


11,151 

Municipal Affairs, Culture and Housing 

180,928 

181,060 


178,357 

Post-Secondary Education and Skills Training 

494,066 

528,407 


463,250 

Public Service Commission 

8,211 

8,165 


8,570 

Saskatchewan Municipal Board 

975 

901 


988 

Saskatchewan Property Management Corporation 

22,017 

22,017 


34,851 

Saskatchewan Research Council 

8,677 

9,172 


8,012 

Saskatchewan Water Corporation 

9,444 

9,444 


4,893 

Social Services 

575,258 

578,574 


577,886 

Women's Secretariat 

1,169 

1,150 


1,193 

Legislative Branch of Government 

Chief Electoral Officer 

893 

1,187 


6,757 

Conflict of Interest Commissioner 

122 

90 


79 

Information and Privacy Commissioner 

105 

85 


55 

Legislative Assembly........ 

16,098 

15,737 


15,070 

Ombudsman and Children's Advocate 

2,559 

2,540 


2,269 

Provincial Auditor 

4,698 

4,698 


4,442 

Total Operating Expenditure (note 9) 

5,290,586 

5 , 256,820 


5,077,364 

Operating Surplus 

1,091,814 

1 , 496,783 


779,568 

Finance - Servicing the Debt (note 8)... 

(677,400) 

( 664 , 092 ) 


(696,089) 

Transfer to the Fiscal Stabilization Fund. 

(405,000) 

( 775 , 000 ) 


- 

Surplus for the Year... 

9,414 

57,691 


83,479 

Accumulated deficit, beginning of year... 

(7,068,550) 

( 7 , 068 , 550 ) 


(7,152,029) 

Accumulated Deficit, End of Year (note 7) 

S (7,059,136) $ 

( 7 , 010 , 859 ) 

$ 

(7,068,550) 


(See accompanying notes) 


14 


Public Accounts, 2000-0 1 


General Revenue Fund 

Statement of Cash Flow 

For the Year Ended March 31 , 2001 


(thousands of dollars) 

Schedule 


2001 


2000 

Operating Activities 





Surplus for the year 

$ 

57,691 

$ 

83,479 

Add (deduct) non-cash items 





Amortization of foreign exchange gains and losses 


14,095 


5,973 

1 1 Loss on loans and investments 


(779) 


1,009 

12 Net change in non-cash operating activities 


(101,570) 


(223,155) 

Earnings retained in sinking funds 


(36,256) 


(22,955) 

Cash (Used for) Operating Activities 


(66,819) 


(155,649) 

Investing Activities 





13 Loan Advances 


(495,314) 


(139,466) 

13 Loan Repayments 


672,002 


270,906 

13 Sinking funds' contributions received from Crown corporations 


24,583 


27,430 

1 3 Contributions made to sinking funds 


(77,252) 


(73,157) 

13 Other 


1,286 


1,423 

Cash Provided by Investing Activities 


125,305 


87,136 

Financing Activities 





Proceeds from debt 


1,940,265 


1,435,488 

Repayment of debt 


(2,238,399) 


(1,580,121) 

Increase in deposits held 


148,754 


330,320 

Cash (Used for) Provided by Financing Activities 


(149,380) 


185,687 

(Decrease) Increase in Cash and Temporary Investments 


(90,894) 


117,174 

Cash and temporary investments, beginning of year 


452,222 


335,048 

Cash and Temporary Investments, End of Year 

S 

361,328 

$ 

452,222 


(See accompanying notes) 


General Revenue Fund 


15 


General Revenue Fund 

Notes to the Financial Statements 

For the Year Ended March 31 , 2001 

1. Significant Accounting Policies 

These financial statements are prepared using accounting principles appropriate for the public sector and reflect the following 
significant accounting policies: 

a) Reporting entity 

The General Revenue Fund is the general fund which receives all revenues unless otherwise specified by law. Spending from the 
General Revenue Fund is appropriated by the Legislative Assembly. 

Other government entities such as special purpose funds, Crown corporations, and other agencies, report separately in other financial 
statements. Only financial transactions to or from these other entities are included in the General Revenue Fund. The net 
expenditures/recoveries for revolving funds’ operations are charged to expenditure. 

The Government’s summary financial statements which include the financial activities of the General Revenue Fund and other 
government entities are provided separately. 

b) Basis of accounting 

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

Revenue 

Except for corporate and personal income taxes which are recorded when received from the federal government, revenues are 
recorded on the accrual basis. 

Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are 
met. 

Expenditure 

Expenditures are recorded on the accrual basis except for pension costs which are recorded on the cash basis, and include the cost of 
tangible capital assets and inventories received during the year. 

Government transfers are recognized as expenditures in the period during which the transfer is authorized and any eligibility criteria 

are met. 

Transfers to and from the Fiscal Stabilization Fund 

Transfers to and from the Fiscal Stabilization Fund are included in the determination of surplus for the year. 

Assets 

Financial assets are those assets on hand at the end of an accounting period which could provide resources to discharge existing 
liabilities or finance future operations. 

Temporary investments are recorded at the lower of cost or market. 

Agricultural land held for resale is valued at the lower of cost or net realizable value, on an aggregate basis. 

Deferred charges include issue costs and net discounts or premiums incurred on the issue of long-term debt. They are recorded at 
cost and amortized on a straight line basis over the remaining life of the debt issue. 

Deferred foreign exchange loss includes unrealized foreign exchange gains and losses resulting from conversion of debt and sinking 
funds’ investments held for general government purposes in a foreign currency, to the Canadian dollar equivalent at March 31 . 
Unrealized foreign exchange gains and losses are amortized on a straight line basis over the remaining life of the debt issue. Realized 
foreign exchange gains or losses, resulting from transactions for general government purposes, are included in servicing the debt. 

Loans to Crown corporations and Other loans generally have fixed repayment terms and are interest bearing. Short-term loans to 
Crown corporations are recorded at par; all other loans are recorded at cost. Interest received on these loans is netted against interest 
paid on money borrowed for these loans. 


16 


Public Accounts, 2000-01 


General Revenue Fund 

Notes to the Financial Statements 


Equity investment in Crown Investments Corporation of Saskatchewan is an advance to the corporation to form its equity 
capitalization and is recorded at cost. 

Where there has been a loss in value that is other than a temporary decline, loans and equity investments are written down to 
recognize the loss. 

Tangible capital assets and inventories , except for agricultural land held for resale, are recorded as an expenditure in the period 
acquired. 

Liabilities 

Reported liabilities include obligations to outside organizations and individuals as a result of transactions and events occurring prior to 
year end. They are the result of financial obligations to repay borrowings or to pay for goods and services acquired prior to year end, 
and of revenue, received or receivable, where goods or services will be delivered in the future. 

Unearned revenue consists mainly of revenue for Crown mineral leases and motor vehicle fees that will be earned in a subsequent 
fiscal year. 

Debt is issued for general government purposes and for Crown corporations. All debt is recorded at par. 

Premiums, discounts, and issue costs incurred on debt issued for general government purposes are recorded as deferred charges and 
amortized on a straight line basis over the remaining life of the debt issue. 

Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund 
balances where applicable. The General Revenue Fund is reimbursed by Crown corporations for all sinking fund contributions made 
on debt incurred on their behalf. Premiums and discounts on long-term investments within the sinking fund are amortized by the type 
of security on a constant yield basis. 

Debt issues and sinking funds’ investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange 
rate in effect at March 31. 

Interest, discounts, premiums and commissions on money borrowed for Crown corporations and others are netted against 
reimbursements by these entities. 

Pension liabilities are not recorded in the financial statements. The General Revenue Fund accounts for pension payments on a 
cash basis. 

Guaranteed debt includes guarantees of the Government made through specific agreements or legislation to repay promissory notes, 
bank loans, lines of credit, mortgages and other securities. Loss provisions on guaranteed debt are recorded when it is likely that a 
loss will occur. The amount of the loss provision represents Government's best estimate of future payments less recoveries. The loss 
provision is recorded as a liability and an expenditure in the year determined and is adjusted as necessary to ensure it equals the 
expected payout of the guarantee. 

2. Measurement Uncertainty 


Uncertainty in the determination of the amount at which an item is recognized in financial statements is known as measurement 
uncertainty. Such uncertainty exists when there is a variance between the recognized amount and another reasonably possible 
amount. 

Measurement uncertainty exists in these financial statements in the accrual of non-renewable resource royalties, and the federal 
government’s Equalization and the Canada Health and Social Transfer. The uncertainty arises from factors such as price and 
production sensitivities in the royalty structures, and the effect on transfers from the federal government of changes in economic and 
demographic conditions in the Province and the country. Management considers that it is reasonably possible that changes in future 
conditions in the near term could require a material change in the amounts recognized. Near term is defined as a period of time not to 
exceed one year from the date of the financial statements. 


General Revenue Fund 


17 


General Revenue Fund 

Notes to the Financial Statements 


3. Cash and Temporary Investments 

The market value of cash and temporary investments is $361.6 million (2000 - $452.6 million). Temporary investments are generally 
for less than 30 days, and have an average effective interest rate of 5.00 per cent. 

4. Agricultural Land Held For Resale 

The estimated net realizable value of the agricultural land held for resale at March 31, 2001 is $202.2 million (2000 - $212.4 million). 

5. Tangible Capital Assets 

Tangible capital assets are recorded as an expenditure in the year acquired and are not included in the Statement of Financial Assets, 
Liabilities, and Accumulated Deficit. These assets are a key component in the delivery of government programs and provide on-going 
value to the public. 

Tangible capital assets are valued at historical cost. Ail costs directly attributable to the acquisition, construction, development or 
betterment of the tangible capital assets are included. 

Amortization is calculated using the straight line method based on the estimated useful life of each asset. 

During the current year, the entity acquired tangible capital assets for use by the entity costing $21.8 million (2000 - $22.2 million). 

The net book value of $40.1 million (2000 - $36.0 million) represents the cost of tangible capital assets less an estimate of the portion 
of the assets used in the delivery of services. 

The following table includes assets held for use by the entity and does not include assets acquired by right, heritage assets and assets 
available for public use. 

The Saskatchewan Property Management Corporation (SPMC) also acquires tangible capital assets for use by the entity in its day to 
day operations. SPMC manages most of the buildings and land used by the entity in the provision of services to the public. These 
assets are reported separately in the financial statements of SPMC. 


(thousands of dollars) 





2001 



2000 


Machinery & 
Equipment 

Computer 

Hardware 

Computer 

Software 

Office 
Furniture & 
Equipment 

Other 

Total 

Total 

Estimated useful life 

10 years 

3 years 

3 years 

5-10 years 

3 years - 
Indefinite 



Opening cost . 

Additions . . 

Disposals 

. . $ 14,709 
2,380 
(1,187) 

$ 23,666 
11,490 
(8,147) 

$ 3,963 

2,023 
(1,398) 

$ 7,680 

2,791 
(305) 

$ 11,988 
3,111 
(174) 

$ 62,006 
21,795 
(11,211) 

$ 58,433 
22,182 
(18,609) 

Closing cost of tangible capital assets 

15,902 

27,009 

4,588 

10,166 

14,925 

72,590 

62,006 

Opening accumulated amortization . . 

Annual amortization 

Write-downs 

Disposals 

7,007 

1 ,663 

(1,138) 

12,237 

9,907 

(7,007) 

1,964 

1,812 

(1,226) 

2,184 

1,215 

(263) 

2,588 

1,726 

(159) 

25,980 

16,323 

(9,793) 

25,238 

16,057 

(15,315) 

Closing accumulated amortization 

7,532 

15,137 

2,550 

3,136 

4,155 

32,510 

25,980 

Net Book Value of Tangible Capital 
Assets 

$ 8,370 

$ 1 1 ,872 

$ 2,038 

$ 7,030 

$ 10,770 

$ 40,080 

$ 36,026 


18 


Public Accounts, 2000-01 


General Revenue Fund 

Notes to the Financial Statements 


6. Pension Liabilities 

The Government of Saskatchewan sponsors several defined benefit and defined contribution pension plans for a significant number of 
its employees and for members of the Legislative Assembly. 

Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income 
securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is 
insignificant for all plans. 

Defined benefit pension plans 

Defined benefit pension plans provide benefits based on length of service and pensionable earnings. A typical defined benefit 
pension plan provides pensions equal to 2 per cent of a member's average five years highest salary, multiplied by the years of service 
to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their pension plan. 

Pensions and contribution rates are integrated with the Canada Pension Plan. 

The two main plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans 
include Members of the Legislative Assembly Superannuation Plan (MLA), Judges of the Provincial Court Superannuation Plan 
(Judges), Saskatchewan Transportation Company Employees Superannuation Plan, Anti-TB League Employees Superannuation Plan 
and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. 

Actuarial valuations are performed at least triennially. These valuations are extrapolated by an actuary when a valuation is not done in 
the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, 
wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates 
and short-term forecasts. The long-term inflation rate is estimated at 3.25 per cent. Other estimates vary based on the individual plan. 
The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued 
at market related values based on actual market values averaged over a four year period. In the periods between valuations, the 
actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. 

The TSP provides inflation protection equal to 80 per cent of the annual increase in the Consumer Price Index. Other plans provide 
inflation indexing at the discretion of the Lieutenant Governor in Council. 

The Government is required to match member current service contributions for all plans except Judges and the PSSP. Separate 
pension funds are maintained for all plans except the PSSP. PSSP member contributions are deposited into the General Revenue 
Fund. All pension obligations arising under the PSSP are paid from the General Revenue Fund. 

Information on the defined benefit pension plans follows: 



TSP 

PSSP 

2001 

All Others 

Total 

2000 

Total 

Plan status 

closed 

closed 

closed 1 

n/a 

n/a 

Member contribution rate, percentage of salary 

7.85 

b 

CO 

o 

ro 

5.0-9.0 2 

n/a 

n/a 

Number of active members 

6,177 

2,192 

92 

8,461 

8,869 

Average age of active members, years 

49.3 

51.4 

54.8 

49.9 

48.6 

Former members entitled to deferred pension benefits 

6,994 

157 

11 

7,162 

16,555 

Number of superannuates and surviving spouses 

9,042 

5,706 

1,881 

16,629 

16,543 

Member contributions (thousands of dollars) 

$ 23,000 

$ 6,245 

$ 382 

$ 29,627 

$ 28,646 

Government contributions (thousands of dollars) 

50,000 

- 

4,803 

54,803 

94,802 

Benefits paid (thousands of dollars) 

208,385 

91,977 

6,568 

306,930 

291,762 


fudges is open to new membership, all other plans are closed. 
Contribution rate varies based on age upon joining the plan. 


General Revenue Fund 


19 


General Revenue Fund 

Notes to the Financial Statements 


Based on the latest actuarial valuation, extrapolated to March 31 , 2001 , the present value of accrued pension benefits and the market 
related value of pension fund assets are shown in the table below: 


(thousands of dollars) 


Actuarial Accrued Pension Unamortized 

Valuation Benefit Fund Net Estimation Pension Pension 

Plan Name Date Obligation Assets Obligation Adjustments 1 Liabilities Liabilities 

TSP 2 Jun. 30/99 $3,601,000 $ 1,605,000 $ 1,996,000 $ 565,028 $2,561,028 $2,508,353 

PSSP Sept. 30/99 1,526,619 - 1,526,619 (241,811) 1,284,808 1,230,486 

Others Various 201,922 121,642 80,280 (13,469) 66,811 62,207 

Total $5,329,541 $ 1,726,642 $3,602,899 $ 309,748 $3,912,647 $3,801,046 


Amortized to income over 1 to 13 years (2000, 1 to 13 years), the estimated average remaining service life of active plan members at the time the 
estimation adjustment arises. 

2 The TSP accrued benefit obligation includes a liability of $67.0 million (2000 - $63.0 million) relating to the TSP disability provision. 

At March 31 , 2001 the market value of plan investments was $2.0 billion (2000 - $2.0 billion). Of this amount, 42.4 per cent (2000 - 
47.9 per cent), was invested in fixed income securities and 52.7 per cent (2000 - 48.4 per cent) in equity investments. 

Defined contribution pension plans 

Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a 
percentage of salary. 

The Government sponsors the Public Employees Pension Plan (PEPP), a multi-employer defined contribution pension plan. 
Employers are required to match employee current service contributions to this plan. The General Revenue Fund has fully funded its 
share. The General Revenue Fund also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP), sponsored by the 
Saskatchewan Teachers’ Federation. 

Information on the defined contribution pension plans to which the General Revenue Fund contributes follows: 



PEPP 

2001 

STRP 

Total 

2000 

Total 

Plan status 

...... open 

n/a 

n/a 

n/a 

Member contribution rate, percentage of salary 

5.0-5.75 1 

n/a 

n/a 

n/a 

Number of active members, all employers . . . 

27,888 

n/a 

27,888 

26,963 

General Revenue Fund participation: 

Number of active members 

14,303 

n/a 

14,303 

13,364 

Number of inactive members 

6,054 

n/a 

6,054 

5,446 

Member contributions (thousands of dollars) 

$ 24,065 

n/a 

$ 24,065 

$ 22,282 

Government contributions (thousands of dollars) 

23,810 

$ 23,797 

47,607 

41,594 


1 Contribution rate varies based on employee group. 


Pension expenditure 

The entity accounts for pensions on a cash basis. The pension liabilities are not recorded in the financial statements. 

7. Reserves 

The accumulated deficit of $7,010.9 million consists of an unallocated deficit component of $7,022.8 million and the Environmental 
Protection Reserve of $11.9 million. The Environmental Protection Reserve was created to provide contingency funding to mitigate 
unforeseen environmental problems related to uranium milling. The reserve is maintained at its March 31, 1992 balance. 


Public Accounts, 2000-01 


20 


General Revenue Fund 

Notes to the Financial Statements 

8. Debt Servicing Costs 

(thousands of dollars) 

2001 2000 

Total interest costs $ 1,020,168 $ 1,064,266 

Less interest reimbursed from Crown corporations and others (378,116) (381,339) 

Other costs 22,040 13,162 

Total Debt Servicing Costs $ 664,092 $ 696,089 


9. Operating Expenditure by Function and by Object 

Operating expenditure by function is reported as follows: 

(thousands of dollars) 

2001 2000 

Agriculture $ 219,235 $ 336,082 

Community development 147,507 121,341 

Economic development 115,000 77,940 

Education 1,069,811 982,525 

Environment and natural resources 132,766 145,016 

Health 2,075,650 1,955,736 

Protection of persons and property 240,299 238,013 

Social services and assistance 683,648 673,610 

Transportation 299,199 269,252 

Other 273,705 277,849 

Total Operating Expenditure $ 5,256,820 $ 5,077,364 


Operating expenditure by object is reported as follows: 

(thousands of dollars) 

2001 2000 

Personal services $ 478,425 $ 461,710 

Travel 35,172 32,425 

Transfers: 

Government entities 1,849,311 1,861,366 

Other 2,236,593 2,083,611 

Supplier payments 471,030 456,190 

Other 186,289 182,062 

Total Operating Expenditure $ 5,256,820 $ 5,077,364 


10. Contingencies 

a) Guaranteed debt 

At March 31 , 2001 , $312.0 million (2000 - $349.0 million) in loans were guaranteed by the Minister of Finance. Schedule 9 provides a 
listing of guaranteed debt. 

b) Lawsuits 

Up to $45.9 million may be paid, depending on the outcome of lawsuits in progress. 


General Revenue Fund 


21 


General Revenue Fund 

Notes to the Financial Statements 


c) Indian and Northern Affairs Canada 

The Government pays for certain social services provided to status Indians and submits claims to the federal government for the cost 
of these services. The Government believes these costs are the responsibility of the federal government and believes they are fully 
reimbursable. However, the federal government denies responsibility for a portion of these costs. 

The Government is unable to determine whether or not the outstanding amounts will be reimbursed. The Government will account for 
any recovery resulting from the resolution of this contingency at the time of settlement. No provision for such a recovery has been 
made in these financial statements. 

11. Commitments 

Major financial commitments include: 

• treaty land entitlement agreement commitments valued at approximately $85.9 million over ten years; rural municipality and school 
division tax loss compensation of approximately $15.1 million as land achieves reserve status over the course of the agreements; 

• research and development projects for new agriculture technology and opportunities in the agri-food industry, $15.0 million over five 
years; 

• Weyerhaeuser Canada Ltd. agreement for road maintenance and construction, term indefinite, five year estimate of commitment, 
$22.7 million; 

• Mistik Management agreement for road reconstruction, term indefinite, five year estimate of commitment, $2.9 million; 

• capital grant projects, over the next four years, $75.3 million; 

• contracts for highway improvement, $78.5 million; 

• computer service agreements, $13.3 million over two years; 

• capital costs associated with the construction of the CLS Synchrotron Facility, $7.0 million; 

• projects to expand innovation and enhance the competitive ability of the Saskatchewan economy, $10.7 million, over three years; 
and, 

• an agreement with the Saskatchewan Medical Association for $17.2 million over two years, for recruitment, retention and continuing 
medical education initiatives for physicians. 

Included are commitments for agriculture $15.0 million, education $40.9 million, health $55.3 million, transportation $104.1 million, 
community development $101.0 million, economic development $17.7 million, social services and assistance $7.6 million and other 
$2.0 million. 

12. Related Party Transactions 

Included in these financial statements are transactions with various Saskatchewan Crown corporations, agencies, boards, and 
commissions related to the General Revenue Fund by virtue of common control by the Government of Saskatchewan. 

Routine operating transactions with related parties are recorded at the rates charged by those organizations and are settled on normal 
trade terms. These transactions include: 

• payments to related parties, made from the entity during the year, of approximately $97.6 million (2000 - $96.0 million) to 
Saskatchewan Property Management Corporation, and $18.6 million (2000 - $17.7 million) to Saskatchewan Telecommunications 
Holding Corporation; 

• taxation and non-renewable resource revenue received from related parties during 2000-01 of approximately $56.0 million (2000 - 
$48.9 million). In addition, Saskatchewan Education and Health Tax and Fuel Tax are received from related parties on all taxable 
purchases. 

Other transactions with related parties and amounts due to or from them are described separately in these financial statements. 


22 


Public Accounts, 2000-01 


General Revenue Fund 

Notes to the Financial Statements 


13. Trust Funds 

Trust funds are property held and administered on behalf of beneficiaries. Trust assets are not owned by the Government and the 
Government has no equity in the funds. Therefore, trust funds are not included in the reporting entity. 

Fund balances held and administered by the General Revenue Fund at March 31, 2001, were as follows: 


(thousands of dollars) 



2001 

2000 

Superannuation funds and pension plans 1 

Public Trustee's Trust Account 

$5,821,892 

135,357 

$ 5,516,573 
143,860 

Other trusts 

35,957 

33,164 

Total 

$ 5,993,206 

$ 5,693,597 


’The balance reflects the latest financial statements of the funds and plans closest to March 31 , 2001 . 


14. Comparative Figures 

Certain of the 2000 figures have been reclassified to conform with the current year presentation. With regard to expenditures, the 
figures are reported on the same basis as the Estimates for the prior year. 

15. Debt Reduction Account 


This account was established pursuant to The Balanced Budget Act. The Debt Reduction Account is an accounting of 
the accumulated surpluses of the General Revenue Fund commencing April 1, 1995. 


(thousands of dollars) 



Budget 


Actual 

Debt reduction account, beginning of year 

Reduction in accumulated deficit for the year 

$ 571,951 

9,414 

$ 

571,951 

57,691 

Debt Reduction Account, End of Year 

$ 581,365 

$ 

629,642 


General Revenue Fund 


23 


General Revenue Fund 

Schedules to the Financial Statements 

For the Year Ended March 31 , 2001 

Schedule 1 - Accounts Receivable 





(thousands of dollars) 






2001 

2000 

Taxation 




$ 

146,589 $ 

130,398 

Non-renewable resources 





119,852 

103,577 

Transfers from Government entities. 





74,822 

28,436 

Other own-source revenue.. 





60,340 

56,773 

Transfers from the federal government. 





35,998 

78,622 

Other accounts receivable 





50,818 

45,369 






488,419 

443,175 

Less: Provisions for losses 





56,007 

47,833 

Total Accounts Receivable 




S 

432,412 $ 

395,342 

Accounts Receivable include $76.6 million due from related parties (2000 - $28.9 million). 




Schedule 2 - Loans to Crown Corporations 












(thousands of dollars) 






2001 

2000 

Short-term Loans 







Information Services Corporation of Saskatchewan 




$ 

20,246 $ 

6,930 

Saskatchewan Opportunities Corporation.... 





32,065 

16,706 

Saskatchewan Telecommunications Holding Corporation 





- 

1,000 

Saskatchewan Water Corporation 





1,823 

18,586 

SaskEnergy Incorporated 





241,000 

13,700 

Total Short-term Loans 





295,134 

56,922 


Principal 


Less Sinking 





Outstanding 


Fund Equity 




Long-term Loans 







Agricultural Credit Corporation of Saskatchewan $ 

66,951 

$ 

7,116 


59,835 

77,894 

Crown Investments Corporation of Saskatchewan 

276,195 


232,992 


43,203 

58,656 

Municipal Financing Corporation of Saskatchewan 

59,575 


- 


59,575 

87,491 

Saskatchewan Housing Corporation 

157,106 


949 


156,157 

174,051 

Saskatchewan Opportunities Corporation 

120,000 


1,813 


118,187 

109,137 

Saskatchewan Power Corporation 

1,797,698 


87,539 


1,710,159 

1,671,536 

Saskatchewan Telecommunications Holding Corporation 

461,852 


24,406 


437,446 

386,298 

Saskatchewan Water Corporation..... 

39,612 


2,832 


36,780 

37,843 

SaskEnergy Incorporated 

574,187 


1 1 ,701 


562,486 

683,823 

Total Long-term Loans $ 

3,553,176 

$ 

369,348 


3,183,828 

3,286,729 

Total Loans to Crown Corporations 




$ 

3,478,962 $ 

3,343,651 


24 


Public Accounts, 2000-01 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 3 - Other Loans 


(thousands of dollars) 



2001 


2000 


Agriculture and Food 

Agri-Food Equity Fund 

$ 

17,825 

$ 

11,970 

Short-term Hog Loans 

S 6,030 

$ 

11,235 


Less: Provision for Loss 

1,209 

4,821 

2,314 

8,921 

Economic and Co-operative Development 

Economic Development Loans 

3,794 


4,045 


Less: Provision for Loss 

2,395 

1,399 

2,462 

1,583 

Hudson Bay Mining and Smelting Co. Ltd 

Northern Economic Development 

3,237 

2,513 

2,764 

2,663 

Less: Provision for Loss 

733 

2,504 

592 

2,172 

Small Business Loans Association 

7,941 


6,739 


Less: Provision for Loss 

1 ,522 

6,419 

1,400 

5,339 

Finance 

T reasury Advances 


1,337 


1,230 

Other 


857 


1,184 

Total Other Loans 

$ 

37,675 

$ 

35,062 


General Revenue Fund 


25 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 4 - Accounts Payable and Accrued Liabilities 


(thousands of dollars) 




2001 


2000 

Personal services 

S 

34,210 

$ 

26,100 

Travel 


3,540 


3,224 

Transfers 


273,396 


309,229 

Supplier payments 


73,745 


51,710 

Accrued interest 


178,530 


204,764 

Transfers payable to the federal government 


21,588 


32,897 

Other accounts payable and accrued liabilities 


155,888 


156,325 

Total Accounts Payable and Accrued Liabilities 

$ 

740,897 

$ 

784,249 


Total includes $107.3 million payable to related parties (2000 - $199.5 million) and $51 .1 million payable to the federal 
government (2000 - $50.6 million). 


Schedule 5 - Deposits Held 


(thousands of dollars) 




2001 


2000 

Deposits held on behalf of Government entities and others 

Agri-Food Equity Fund. 

$ 

2,278 

$ 

976 

Agri-Food Innovation Fund 


14,578 


17,031 

Canada-Saskatchewan Adjustment Program 


2,391 


- 

Cattle Marketing Deductions Fund... 


3,248 


3,436 

Crop Reinsurance Fund of Saskatchewan 


102,959 


88,960 

Extended Health Care Plans 


5,597 


4,329 

Fiscal Stabilization Fund 


775,000 


- 

Fish and Wildlife Development Fund 


4,276 


3,704 

Liquor and Gaming Authority 


12,925 


673,570 

New Crops Insurance Program.. 


28,630 


27,214 

Oil and Gas Environmental Fund 


2,545 


2,407 

Public Employees Dental Fund 


9,222 


7,630 

Public Employees Pension Plan 


5,714 


9,193 

Queen's Bench Court Accounts 


9,614 


10,002 

Saskatchewan Agricultural Stabilization Fund 


56,242 


95,000 

Saskatchewan Crop insurance Corporation 


262,346 


218,203 

Saskatchewan Grain Car Corporation 


11,659 


9,625 

Saskatchewan Health Information Network..... 


2,007 


1,403 

Saskatchewan Student Aid Fund 


57,136 


44,405 

School Division Tax Loss Compensation Fund 


3,096 


2,875 

Teachers' Superannuation Commission.. 


4,171 


3,135 

Transportation Partnership Fund 


2,973 


1,724 

Other 


10,175 


1 1 ,429 

Conditional Receipts.. 


2,363 


6,140 

Total Deposits Held 

S 

1 , 391,145 

$ 

1,242,391 


26 


Public Accounts, 2000-01 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 6 - Debt 



(thousands of dollars) 



2001 



2000 


Promissory 

Notes 

Debentures 

Less 

Sinking 

Funds 1 

Debt 

Debt 

Crown Corporation Purposes 

Agricultural Credit Corporation 
of Saskatchewan 

$ - S 

66,951 $ 

7,116 S 

59,835 $ 

77,894 

Crown Investments Corporation 
of Saskatchewan 

. 

276,195 

232,992 

43,203 

58,656 

Information Services Corporation 
of Saskatchewan 

20,246 

. 

. 

20,246 

6,930 

Municipal Financing Corporation 
of Saskatchewan 


59,575 


59,575 

87,491 

Saskatchewan Housing Corporation 



157,106 

949 

156,157 

174,051 

Saskatchewan Opportunities Corporation 

32,065 

120,000 

1,813 

150,252 

125,843 

Saskatchewan Power Corporation 



1,797,698 

87,539 

1,710,159 

1,671,536 

Saskatchewan Telecommunications 

Holding Corporation 


461,852 

24,406 

437,446 

387,298 

Saskatchewan Water Corporation 

1 ,823 

39,612 

2,832 

38,603 

56,429 

SaskEnergy Incorporated 

241,000 

574,187 

11,701 

803,486 

697,523 

Total Crown Corporation Purposes 

295,134 

3,553,176 

369,348 

3,478,962 

3,343,651 

General Government Purposes 

337,966 

7,574,789 

507,276 

7,405,479 

7,527,670 

Debt 2 

S 633,100 $ 

11,127,965 $ 

876,624 $ 

10,884,441 $ 

10,871,321 


Debt repayable in foreign currency has been restated in Canadian dollar equivalents. 

See Schedule 7 for information on sinking funds. 

2 See Schedule 8 for information on debt by maturity. 


General Revenue Fund 


27 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 7 - Sinking Funds 


(thousands of dollars) 




2000 



2001 






Sinking 

Funds Contributions 

Less 

Earnings Redemptions 

Currency 

Adjustment 


Sinking 

Funds 

Crown Corporation Purposes 










Agricultural Credit Corporation of 










Saskatchewan. 

■ $ 

157,657 $ 

6,000 $ 

7,104 $ 

163,645 

$ 

- 

$ 

7,116 

Crown Investments Corporation of 










Saskatchewan 


217,539 

- 

15,453 

- 


- 


232,992 

Saskatchewan Housing Corporation 


322 

585 

42 

- 


- 


949 

Saskatchewan Opportunities Corporation. 


863 

850 

100 

- 


- 


1,813 

Saskatchewan Power Corporation 


104,171 

8,801 

7,921 

37,043 


3,689 


87,539 

Saskatchewan Telecommunications 










Holding Corporation 


61,857 

3,176 

4,294 

46,551 


1,630 


24,406 

Saskatchewan Water Corporation... 


2,361 

302 

169 

- 


- 


2,832 

SaskEnergy Incorporated..... 


49,327 

4,869 

3,426 

45,921 


- 


11,701 

Total Crown Corporation Purposes 


594,097 

24,583 

38,509 

293,160 


5,319 


369,348 

General Government Purposes 


402,480 

52,669 

36,256 

- 


15,871 


507,276 

Total Sinking Funds 

$ 

996,577 $ 

77,252 $ 

74,765 $ 

293,160 

S 

21,190 

$ 

876,624 

The market value of sinking funds at March 31 , 2001 is $890.3 million (2000 - $994.0 million). 






Sinking Fund earnings include gains on investment sales of $7.5 million (2000 - 1 

loss of $5.6 million). 





Annual contributions, when established by Order in Council, are set at not less than one per cent of debentures 



outstanding. The redemption value is based on the market value of the sinking fund units at the date of redemption. 



The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund 



requirements are: 

















( thousands of dollars) 



2002 

2003 

2004 

2005 


2006 


Total 

! Contributions....... 

.$ 

79,528 $ 

79,528 $ 

79,528 $ 

75,873 

$ 

66,313 

$ 

380,770 

j Less recoverable from Crown 










corporations 


18,429 

18,429 

18,429 

17,641 


17,390 


90,318 

General Government Purposes 

$ 

61,099 $ 

61,099 $ 

61,099 $ 

58,232 

$ 

48,923 

$ 

290,452 

: Sinking Fund assets are as follows: 







(thousands of dollars) 








2001 


2000 

j Long-term Investments 










Province of Saskatchewan securities, coupon interest range, 5.50% to 10.25%; 

range of term to 





maturity, 2.3 to 27.9 years 






$ 

370,036 

$ 

556,826 

j Government of Canada securities, coupon interest range, 5.0% to 6.5%; range of term to 






maturity, 2.4 to 28.2 years 







43,291 


23,949 

Other provincial governments' securities, coupon interest range, 5.25% to 10.25%; range of 






term to maturity, 2.7 to 38.3 years 







275,634 


238,448 

Government of the United States securities, coupon interest rate, 6.25%; term to maturity, 29.1 





years 







17,558 


- 

| Other, coupon interest rate 8.3%; term to maturity, 15.4 years 





12,951 


- 

Cash, short term investments and accrued interest 






157,154 


177,354 

Total Sinking Funds 






$ 

876,624 

$ 

996,577 


rShort term investments include $135.7 million (2000 - ^66^5 million) Province of Saskatchewan securities. 

i Gash, short term investments and accrued interest are disclosed net of $7.9 million in liabilities (2000 - $3.8 million). 

; Included are U.S. dollar cash, investments and accrued interest converted to $289.6 million Canadian (2000 - $225.9 million) 
at the exchange rate in effect at March 31 , 2001 , 1 .5774 (March 31 , 2000, 1 .4535). 


28 


Public Accounts, 2000-01 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 8 - Debt by Maturity 



(thousands of dollars) 

Year of 

Maturity 




2001 



2000 



Canadian 

Dollar 

Debt 


U. S. Dollar 

Debt 
(CDN $) 

Total 
(CDN $) 

Average 

Coupon 

Rate 

Total 
(CDN $) 

Average 

Coupon 

Rate 

Short-term promissory notes 

$ 

633,100 

$ 

- $ 

633,100 

5.01% $ 

360,000 

5.12% 

2000-01 


- 


- 

- 


1,290,994 

9.29% 

2001-02 


777,985 



777,985 

8.82% 

862,141 

8.48% 

2002-03 


396,350 


- 

396,350 

10.18% 

772,250 

10.90% 

2003-04 


459,971 


78,870 

538,841 

8.06% 

572,135 

7.76% 

2004-05 


1,325,744 



1 ,325,744 

8.97% 

1,722,483 

8.03% 

2005-06 


903,928 


- 

903,928 

7.05% 

- 

- 

1 - 5 years 


4,497,078 


78,870 

4,575,948 


5,580,003 


6-10 years 


2,827,438 


306,016 

3,133,454 

7.26% 

2,631,257 

7.70% 

11-15 years 


1,037,332 


788,700 

1,826,032 

8.70% 

1,853,843 

8.84% 

16-20 years 


123,711 


788,700 

912,411 

8.90% 

49,995 

6.46% 

21-25 years 


430,000 


473,220 

903,220 

8.86% 

1,417,800 

9.10% 

26-30 years 


410,000 


- 

410,000 

5.64% 

335,000 

7.18% 


$ 

9,325,559 

$ 

2,435,506 

11,761,065 


11,867,898 


Less: Sinking funds 





876,624 


996,577 


Debt 




$ 

10,884,441 

$ 

10,871,321 



The average effective interest rate of the debt is 8.66% (2000 - 8.79%), and includes the impact of foreign exchange and the 
amortization of any premiums and discounts associated with the debentures. 


The debt has an average term to maturity of 8.89 years (March 31 , 2000 - 8.29 years). 

The debentures in U.S. dollars have been converted to Canadian dollars at the exchange rate in effect at March 31 , 2001 
(1.5774) and March 31, 2000 (1.4535). 

Debt includes Canada Pension Plan debentures of $1,329.3 million (2000 - $1,340.8 million) at a weighted average interest 
rate of 10.99 percent, ranging from 5.97 per cent to 17.51 percent. $109.6 million (2000 - $87.1 million) of this amount 
is payable within one year. These debentures are redeemable in whole or in part before maturity, on six months prior notice, 
at the option of the Minister of Finance of Canada. They are also callable in whole or in part before maturity, on 
30 days prior notice, at the option of the Minister of Finance of Saskatchewan. 

Debt includes debentures of $822.8 million (2000 - $1 ,066.5 million) redeemable annually at the option of the holder or any 
time on the death of the holder. $71.0 million of this amount is payable within one year. 

Included in debt are the following amounts: 

- debentures totalling 22.5 billion yen (2000 - 22.5 billion) which have been fully hedged to $259.2 million Canadian 
(2000 - $259.2 million). 

- debentures totalling 750.0 million U.S. dollars (2000 - 750.0 million) which have been fully hedged to $1,037.0 million Canadian 
(2000 -$1,037.0 million). 

- debentures totalling 200.0 million Deutschemarks (2000 - 200.0 million) which have been fully hedged to $154.1 million 
Canadian (2000 - $154.1 million). 

- debentures totalling 200.0 million Swiss francs (2000 - 400.0 million) which have been fully hedged to $145.4 million 
Canadian (2000 - $292.0 million). 


General Revenue Fund 


29 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 9 - Guaranteed Debt 


(thousands of dollars) 



2001 


2000 

(Restated) 

Crown Corporations 

The Municipal Financing Corporation Act 

Guaranteed debentures 

$ 2,500 

$ 

3,500 

The Power Corporation Act 

National Trust Company 

12,007 


13,860 

Luscar Ltd 

25,105 


26,957 

Saskatchewan Power savings bonds 

Series 1 - series VII (matured) 

100 


127 

The Saskatchewan Development Fund Act 

Guaranteed investments 

1 ,272 


1,499 

The Saskatchewan Telecommunications Act 

Telebonds - series 1 (matured) 

164 


182 

Total Crown Corporations 

41,148 


46,125 

Other 

The Community Bonds Act. 

1 ,744 


1,746 

The Farm Financial Stability Act 

Breeder associations loan guarantees... 

15,970 


15,210 

Feeder associations loan guarantees..... 

15,560 


14,824 

Agricultural Income Disaster Assistance Program 

53 


- 

The Government Organization Act 

The Saskatchewan Roughriders Football Club..... 

1 ,260 


1,360 

The Housing and Special-care Homes Act 

Senior citizens' housing 

125 


159 

The Student Assistance and Student Aid Fund Act 

314 


325 

The Industry and Commerce Development Act 

Saskferco Products Inc. 

142,797 


150,568 

The NewGrade Energy Inc. Act 

NewGrade Energy Inc. 

93,038 


118,723 

Total Other 

270,861 


302,915 

Total Guaranteed! Debt 

$ 312,009 

$ 

349,040 


In addition to the amount shown, there is a contingent liability for interest accrued on certain of these items. 
Total guaranteed debt is net of a loss provision of $1 .0 million (2000 - $0.8 million). 

See page 30 for additional information. 


30 


Public Accounts, 2000-01 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 9 (continued) - Guaranteed Debt 


National Trust Company 

The government is contingently liable for payments on certain leased mining equipment, which was assumed by the 
purchaser of a mining operation. The lease expires in 2004. 

Luscar Ltd. 

The Government has guaranteed a $45 million promissory note issued by Luscar Ltd. to finance the purchase of a 
dragline from Saskatchewan Power Corporation. The note is due in 2003. The amount recorded is net of $19.9 million 
(2000 - $18.0 million) for Luscar Ltd.'s equity in a sinking fund administered by the Minister of Finance. 

Breeder and Feeder Associations 

The Government provides guarantees to lenders who make loans to production associations. The Government 
guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus 
accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each production 
association are limited to $4 million under the breeder cattle option and $4 million under the feeder cattle option. 

Saskferco Products Inc. 

The Government has guaranteed certain medium term notes issued by Saskferco to finance the construction of a nitrogen 
based fertilizer plant located near Belle Plaine. This guarantee pertains to debt denominated in U.S. dollars. Thus, the 
amount of the guarantee is influenced by changes in the value of the U.S. dollar relative to the Canadian dollar. 

The amount recorded is net of $1 19.1 million (2000 - $1 14.0 million) for Saskferco's equity in a sinking fund. 

NewGrade Energy Inc. (NewGrade) 

The Government has guaranteed certain long-term debt of NewGrade to a maximum of $360 million. A significant 
portion of this guarantee relates to U.S. dollar denominated debt. Thus, the amount of the guarantee is influenced by 
changes in the value of the U.S. dollar relative to the Canadian dollar. 


General Revenue Fund 


31 


General Revenue Fund 

Schedules to the Financial Statements 






Schedule 10 - Revenue 









(thousands of dollars) 



Budget 

Actual 


Actual 



2001 

2001 


2000 

Taxation 

Corporation capital. 

.... $ 

291,100 $ 

342,242 

$ 

293,351 

Corporation income 


297,600 

333,299 


277,226 

Fuel 


347,600 

345,136 


369,010 

Individual income 


1,247,000 

1 ,255,409 


1,446,169 

Sales 


815,200 

736,563 


660,314 

Tobacco 


124,600 

122,012 


123,866 

Other 


65,700 

67,573 


52,903 

Total Taxes 


3,188,800 

3,202,234 


3,222,839 

Non-renewable Resources 

Natural gas 


66,500 

239,305 


91,784 

Oil 


447,400 

799,049 


640,097 

Potash 


195,200 

199,296 


169,452 

Other 


41,500 

55,064 


41,817 

Total Non-renewable Resources 


750,600 

1,292,714 


943,150 

Transfers from Government Entities 

Crown investments Corporation of Saskatchewan 


150,000 



125,000 

L iquor and Gaming Authority - Net Income 


310,400 

316,412 


- 

Liquor and Gaming Authority - Retained Earnings 


695,400 

699,800 


- 

Other enterprises and funds.... 


38,300 

39,175 


35,516 

Total Transfers from Government Entities 


1,194,100 

1,055,387 


160,516 

Other Own-source Revenue 

Fines, forfeits, and penalties...... 


14,200 

12,732 


11,701 

Interest, premium, discount, and exchange. 


36,200 

55,458 


34,914 

Motor vehicle fees 


112,400 

113,844 


113,300 

Other licences and permits 


41 ,700 

42,011 


46,446 

Sales, services, and service fees 


71,400 

73,735 


89,327 

Transfers from other governments 


19,400 

15,970 


12,077 

Other... 


12,400 

17,354 


13,837 

Total Other Own-source Revenue 


307,700 

331,104 


321,602 

Total Own-Source Revenue 


5,441,200 

5,881,439 


4,648,107 

Transfers from the Federal Government 

Canada Health and Social Transfer......... 


494,600 

552,378 


556,282 

Equalization 


335,900 

175,247 


541,598 

Other 


110,700 

144,539 


110,945 

Total Transfers from the Federal Government 


941,200 

872,164 


1,208,825 

Total Revenue 

$ 

6,382,400 $ 

6,753,603 

$ 

5,856,932 


32 


Public Accounts, 2000-01 


General Revenue Fund 

Schedules to the Financial Statements 


Schedule 11 - Loss on Loans and Investments 


(thousands of dollars) 




2001 


2000 

Other loans 

Loss on sale of land 

$ 

(779) 

$ 

863 

146 

Total Loss on Loans and Investments 

S 

(779) 

$ 

1,009 


Schedule 12 - Net Change in Non-cash Operating Activities 


(thousands of dollars) 




2001 


2000 

Decrease (Increase) in prepaid expenses 

(Increase) in accounts receivable 

(Increase) Decrease in deferred charges 

(Decrease) in accounts payable and accrued liabilities 

Increase in unearned revenue 

S 

48 

(37,070) 

(23,910) 

(43,352) 

2,714 

$ 

(139) 

(91,175) 

2,823 

(134,899) 

235 

Net Change in Non-cash Operating Activities 

$ 

(101,570) 

$ 

(223,155) 


General Revenue Fund 


33 


General Revenue Fund 

Schedules to the Financial Statements 

Schedule 13 - Investing Activities 



(thousands of dollars) 


2001 

Receipts Disbursements 

Receipts 

2000 

Disbursements 

Loans 

Agricultural Credit Corporation of Saskatchewan... $ 

168,600 

s - $ 

- 

$ 

Crown Investments Corporation of Saskatchewan 

- 

- 

25,000 

- 

Information Services Corporation of Saskatchewan 

- 

13,316 

- 

6,930 

Municipal Financing Corporation of Saskatchewan 

27,916 

- 

- 

7,824 

Saskatchewan Housing Corporation 

27,603 

10,336 

46,140 

41,668 

Saskatchewan Opportunities Corporation 

- 

25,359 

26,789 

50,000 

Saskatchewan Power Corporation 

54,703 

- 

128,715 

- 

Saskatchewan Telecommunications Holding Corporation 

89,693 

90,000 

33,196 

1,000 

Saskatchewan Water Corporation 

17,355 

- 

559 

7,706 

SaskEnergy Incorporated 

272,934 

341,271 

- 

8,800 

Other......... 

13,198 

15,032 

10,507 

15,538 

Total Loan Receipts and Disbursements 

672,002 

495,314 

270,906 

139,466 

Sinking Funds Contributions 

24,583 

77,252 

27,430 

73,157 

Other 

1,357 

71 

1,488 

65 

Total Receipts and Disbursements 

697,942 

572,637 

299,824 

212,688 

Net Receipts $ 

125,305 

$ 

87,136 




Fiscal Stabilization Fund 
(unaudited) 









Fiscal Stabilization Fund 


37 


Fiscal Stabilization Fund 

Schedule of Transfers and Accumulated Balance 

For the Year Ended March 31 , 2001 
(unaudited) 


(thousands of dollars) 




Budget 

2001 


Actual 

2001 

Balance, beginning of year 

Transfer from the General Revenue Fund. 

$ 

405,000 

$ 

775,000 

Balance, End of Year 

$ 

405,000 

$ 

775,000 


The Fiscal Stabilization Fund (Fund) was established April 1, 2000, by The Fiscal Stabilization Fund Act. 

Its purpose is to stabilize the fiscal position of the Government to facilitate long-term planning. 

Stabilization occurs through transfers between the Fund and the General Revenue Fund (GRF), as approved 
from time to time by Treasury Board. 

Transfers to the Fund from the GRF are statutory disbursements. 

Amounts transferred to the GRF from the Fund are available for expenditure subsequent to receiving 
required approval from the Legislative Assembly. 




Summary Financial Statements 






Summary Financial Statements 


41 


Government of Saskatchewan 

Responsibility for Summary Financial Statements 

The Government is responsible for the Summary Financial Statements. The Government maintains a system of 
accounting and administrative controls to ensure that accurate and reliable financial statements are prepared and to get 
reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained. 

The Provincial Comptroller prepares these statements following the Government's stated accounting policies and using 
the Government's best estimates and judgement when appropriate. He uses information from the accounts of the 
General Revenue Fund, Crown corporations, agencies, and other funds to prepare these statements. 

The Provincial Auditor expresses an independent opinion on these statements. His report states the scope of his audit 
and opinion and appears on the following page. 

Treasury Board approves the Summary Financial Statements. The Minister of Finance tables the statements in the 
Legislative Assembly as part of the Public Accounts. The Legislative Assembly refers the Public Accounts to the 
Standing Committee on Public Accounts for review. 

On behalf of the Government of the Province of Saskatchewan. 



Eric Cline 

Minister of Finance 



Paul Boothe 

Deputy Minister of Finance 



Terry Paton 
Provincial Comptroller 


Regina, Saskatchewan 
June 2001 


This page left blank intentionally 




Summary Financial Statements 


43 


Auditor’s Report 

To the Members of the Legislative Assembly 
of Saskatchewan 


I have audited the summary statement of financial assets, liabilities, and accumulated deficit of the Government of 
Saskatchewan as at March 31, 2001 and the summary statements of revenue, expenditure, and accumulated deficit and of 
cash flow for the year then ended. These financial statements are the responsibility of Treasury Board. My responsibility is 
to express an opinion on these financial statements based on my audit 

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I 
plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material 
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by 
management, as well as evaluating the overall financial statement presentation. 

In my opinion, these summary financial statements present fairly, in all material respects, the financial position of the 
Government of Saskatchewan as at March 31 , 2001 and the results of its operations and its cash flows for the year then 
ended in accordance with Canadian generally accepted accounting principles for governments. 


Regina, Saskatchewan 
June 5, 2001 



Acting Provincial Auditor 


44 


Public Accounts, 2000-01 


Government of Saskatchewan 

Summary Statement of Financial Assets, Liabilities, and Accumulated Deficit 

As at March 31 , 2001 


(thousands of dollars) 

Schedule 

2001 

2000 

(Restated) 

Financial Assets 

Cash and temporary investments (note 2) 

Prepaid expenditures 

1 Accounts receivable 

Inventories held for resale 

Land held for resale (note 3) 

Deferred charges 

Deferred foreign exchange loss 

2 Loans and mortgages receivable 

3 Investment in government enterprises 

4 Other investments 

$ 884,053 $ 

23,387 

660,989 

6,587 

128,894 

65,947 

234,326 

142,229 

2,458,377 

851,331 

794,687 

15,978 

802,262 

5,729 

130,980 

42,480 

162,074 

159,679 

3,055,582 

747,150 

Total Financial Assets 

5,456,120 

5,916,601 


Liabilities 


5 Accounts payable and accrued liabilities. 

6 Other liabilities 

Unearned revenue 

7,8 & 9 Public debt 

Pension liabilities (note 6) 


1,156,684 

60,404 

212,378 

8,032,557 

3,912,647 


1 ,449,609 
721,535 
192,496 
8,176,819 
3,801,046 


Total Liabilities 


13,374,670 

14,341,505 

Accumulated Deficit 

$ 

(7,918,550) 

$ (8,424,904) 


(See accompanying notes) 


Tangible capital assets (note 4) 

Contingencies and commitments (notes 1 1 and 12) 
10 Guaranteed debt 


Summary Financial Statements 



45 

Government of Saskatchewan 

Summary Statement of Revenue, Expenditure, and Accumulated Deficit 

For the Year Ended March 31 , 2001 

(thousands of dollars) 

Schedule 


2001 

2000 

(Restated) 

Revenue 

11 Taxation 

11 Non-renewable resources 

1 1 Other own-source revenue 

1 1 T ransfers from the federal government 

$ 

3,203,256 $ 

1,292,714 

923,743 

1,028,823 

3,223,784 

943,150 

908,981 

1,553,575 

Total Revenue 


6,448,536 

6,629,490 

Expenditure 

Agriculture 

Community development 

Debt charges (note 8) 

Economic development 

Education 

Environment and natural resources 

Health 

Protection of persons and property 

Social services and assistance 

Transportation. 

Other 


321,524 

176,106 

947,229 

127,328 

1,018,884 

148,558 

2,223,259 

265,584 

782,481 

302,904 

292,401 

692,655 

158,324 

1,025,709 

89,162 

901,587 

168,439 

2,173,774 

261,910 

785,054 

273,232 

255,620 

Total Expenditure (note 9) 


6,606,258 

6,785,466 

Deficit from government service organizations 

3 Income from government enterprises 


(157,722) 

664,076 

(155,976) 

574,414 

Surplus for the Year 

Accumulated deficit, beginning of year 


506,354 

(8,424,904) 

418,438 

(8,843,342) 

Accumulated Deficit, End of Year (note 7) 

S 

(7,918,550) $ 

(8,424,904) 


(See accompanying notes) 


46 


Public Accounts, 2000-01 


Government of Saskatchewan 
Summary Statement of Cash Flow 

For the Year Ended March 31 , 2001 


(thousands of dollars) 


Schedule 


2001 


2000 

(Restated) 

Operating Activities 

Surplus for the year 

$ 

506,354 

$ 

418,438 

Add (deduct) non-cash items 

3 Income from government enterprises 

Amortization of foreign exchange gains and losses 

12 Gain on investments 

Provision for (reduction of) loan/mortgage losses 

Dividends received from investments 

3 Dividends received from government enterprises 

13 Net change in non-cash operating activities 


(664,076) 

14,095 

(69,950) 

2,513 

761 

1,261,281 

(163,504) 


(574,414) 

5,973 

(31,821) 

(14,958) 

3,211 

172,464 

(164,580) 

Cash Provided by (Used for) Operating Activities 


887,474 


(185,687) 


Investing Activities 

Disposal of land held for resale 

Net decrease in loans and mortgages receivable 

Acquisition of other investments 

Disposition of other investments 

Increase in other investments, beginning of year (note 15) 
Cash (Used for) Provided by Investing Activities 


2,086 

2,013 

14,937 

36,604 

(87,053) 

(66,672) 

52,060 

112,050 

- 

(26,235) 

(17,970) 

57,760 


Financing Activities 

Proceeds from public debt 

Repayment of public debt 

Increase in public debt, beginning of year (note 15). 
(Decrease) increase in pension and other liabilities. 


1,423,242 

(1,653,850) 

(549,530) 


1 ,349,994 
(1,424,144) 
89,932 
373,253 


Cash (Used for) Provided by Financing Activities 


(780,138) 


389,035 

Increase in cash and temporary investments 

Cash and temporary investments, beginning of year 


89,366 

794,687 


261,108 

533,579 

Cash and Temporary Investments, End of Year 

$ 

884,053 

$ 

794,687 


(See accompanying notes) 


Summary Financial Statements 


47 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

For the Year Ended March 31 , 2001 

1. Significant Accounting Policies 

These Summary Financial Statements are prepared using accounting principles appropriate for government and reflect the following 
significant accounting policies: 

a) Reporting entity 

These financial statements report the financial activities of organizations which are accountable for the administration of their financial 
affairs and resources either to a Minister of the Government or directly to the Legislative Assembly and which are owned or controlled 
by the Government. 

Trusts administered by the Government are excluded from the reporting entity. 

A listing of organizations included in the reporting entity is provided in schedule 14. Unless otherwise noted, the financial activities of 
all subsidiaries of these organizations have also been included. 

b) Method of consolidation 

The accounts of all government organizations, except those designated as government enterprises, are consolidated after adjusting 
them to a basis consistent with the accounting policies described in note 1(c). These organizations are referred to as government 
service organizations. Significant inter-organization accounts and transactions are eliminated. 

Government enterprises are defined as self-sufficient organizations that have the financial and operating authority to sell goods and 
services to individuals and non-government organizations as their principal activity. 

Government enterprises are recorded using the modified equity method. The Government's investment, which is initially recorded at 
cost, is adjusted annually to include the net earnings/losses and other net equity changes of the enterprise without adjusting them to 
conform with the accounting policies described below, inter-organization accounts and transactions are not eliminated. 

Financial results of government organizations whose fiscal year-ends are not March 31 are not adjusted unless the effect of such an 
adjustment would be significant to the consolidated operating results. 

c) Basis of accounting 

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

Revenue 

Revenues are recorded on the accrual basis except for receipts from the federal government for corporate and personal income taxes, 
which are recorded on the cash basis. Government transfers are recognized as revenue in the period during which the transfer is 
authorized and any eligibility criteria are met. 

Expenditure 

Expenditures are recorded on the accrual basis and include the cost of tangible capital assets and inventories of supplies acquired 
during the year. Government transfers are recognized as expenditures in the period during which the transfer is authorized and any 
eligibility criteria are met. 

Assets 

Financial assets are those assets on hand at the end of an accounting period which could provide resources to discharge existing 
iiabilities or finance future operations. 

Temporary investments are recorded at cost which approximates market value. 

Inventories held for resale are recorded at the lower of cost and net realizable value. Inventories of supplies are recorded as an 
expenditure in the period acquired. 

Land held for resale is valued at the lower of cost or net realizable value, on an aggregate basis. 

Deferred charges include issue costs and net discounts or premiums incurred on the issue of long-term debt. They are recorded at 
cost and amortized on a straight line basis over the remaining life of the debt issue. 


48 


Public Accounts, 2000-01 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

Deferred foreign exchange loss includes net unrealized foreign exchange gains and losses resulting from the conversion of 
debentures due and sinking funds held in a foreign currency to the Canadian dollar equivalent at the exchange rate in effect at 
March 31 . Realized foreign exchange gains and losses are included in the surplus or deficit for the year. Unrealized foreign exchange 
gains and losses are amortized on a straight line basis over the remaining life of the debt issue. 

Loans and mortgages receivable are initially recorded at cost. Where there has been a loss in value that is other than a temporary 
decline, the loan or mortgage is written down to recognize the loss. Interest is recognized on the accrual basis except in some cases 
where collection is uncertain. In these cases, interest is recorded on the cash basis. 

Other investments are made up of equity investments, portfolio investments, bonds, debentures and other advances, and property 
holdings. Equity investments include government business partnerships. Other investments are accounted for by various methods as 
described below and are written down to their fair value when there is evidence of a permanent decline in their value. 

Equity investments exist when the Government holds shares of private or public companies and exercises significant influence but has 
less than a controlling interest or when the Government has shared control, as in government business partnerships. These 
investments are accounted for by the modified equity method. Using this method, the carrying value of the investment is adjusted for 
the Government's share of the investee's net earnings or losses and is reduced by dividends and partnership distributions received 
from these investments. 

Government business partnerships are equity investments where there is a contractual arrangement between the Government and a 
party outside the reporting entity and where the partners share on an equitable basis the significant risks and benefits associated with 
operating the partnership. The partnership is a self-sufficient organization that has the financial and operating authority to sell goods 
and services to individuals and non-government organizations as its principal activity. Government business partnerships are 
recorded using the modified equity method. 

Portfolio investments exist when the Government holds shares of private or public companies and the Government does not exercise 
significant influence. Portfolio investments are recorded at cost and dividends from these shares are recorded as income when 
receivable. 

Bonds, debentures and other advances are recorded at amortized cost. 

Tangible capital assets held by government service organizations are recorded as an expenditure in the period acquired. Capital 
assets held by government enterprises, as disclosed on schedule 3, are generally recorded at cost and amortized on a straight line 
basis over the estimated productive life of each asset. 

Liabilities 

Reported liabilities include obligations to outside organizations and individuals as a result of transactions and events occurring prior to 
year end. They are the result of financial obligations to repay borrowing or to pay for goods and services acquired prior to year end, 
and of revenue, received or receivable, where goods or services will be delivered in the future. 

Unearned revenue is revenue that will be earned in a subsequent fiscal year and includes revenue for Crown mineral leases, licence 
and service fees and restricted funding from the federal government and other organizations. 

Public debt consists of promissory notes, debentures and bank indebtedness of government service organizations which are recorded 
net of amounts reimbursable from government enterprises. Public debt is recorded at par. Premiums, discounts and issue costs are 
recorded as deferred charges and are amortized on a straight line basis over the remaining life of the debt issue. 

Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund 
balances where applicable. Premiums and discounts on long-term investments within the sinking fund are amortized by the type of 
security on a constant yield basis. 

Debt issues and sinking funds’ investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange 
rate in effect at March 31. 

Where borrowing is used to finance loans to government enterprises, all expenses are charged directly to government enterprises. 

Pension liabilities are calculated using the projected benefit method prorated on services. Pension fund assets are valued at market 
related values. Changes in the pension liabilities as a result of estimation adjustments due to experience gains and losses and 
changes in actuarial assumptions are amortized on a straight line basis over the expected average remaining service life of the related 
employee group. Gains or losses as a result of plan amendments are recognized in the period of the plan amendment. 

Guaranteed debt includes guarantees of the Government made through specific agreements or legislation to repay promissory notes, 
bank loans, lines of credit, mortgages and other securities. Loss provisions on guaranteed debt are recorded when it is likely that a 
loss will occur. The amount of the loss provision represents the Government's best estimate of future payments less recoveries. The 
loss provision is recorded as a liability and an expenditure in the year determined and is adjusted as necessary to ensure it equals the 
expected payout of the guarantee. 


Summary Financial Statements 


49 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

2. Cash and Temporary Investments 

Temporary investments are generally for less than 30 days and have an average effective interest rate of 5.0 per cent. 


3. Land Held for Resale 

The estimated net realizable value of the Government’s land held for resale at March 31, 2001 is $218.4 million (2000 - $229.4 million). 

4. Tangible Capital Assets 

The Government has a significant investment in tangible capital assets that have a useful life of greater than one year. For 
government service organizations, tangible capital assets are recorded as an expenditure in the period acquired and are not included 
in the Statement of Financial Assets, Liabilities, and Accumulated Deficit. These assets are a key component in the delivery of 
government programs and provide on-going value to the public. 

In the current year, government service organizations acquired tangible capital assets costing $168.6 million (2000 - $191.3 million). 
The following table includes the tangible capital assets held by government service organizations and does not include assets 
acquired by right, heritage assets and certain assets available for public use. 


(thousands of dollars) 

2001 2000 


Machinery & 

Capital 




Land Buildings Equipment 

Vehicles Leases 

Other 1 

Total 

Total 


Estimated useful life Indefinite 3-60 years 1-40 years 3-20 years Varies 1-50 years 

Opening cost $76,980 $2,094,186 $709,390 $148,168 $67,970 $141,177 $3,237,871 $2,532,876 

Adjustment to opening cost 

(note 15) - - - - - - - 562,751 

Reclassification 2 - 10,872 52,639 (78,757) 5,175 10,071 

Additions 1,019 44,051 59,186 8,282 627 55,404 168,569 191,250 

Write-downs (39) (33,921) (790) - - (5,078) (39,828) (533) 

Disposals (169) (1,940) (27,312) (6,784) (4.277) (12,341) (52,823) (48,473) 


Closing cost of tangible 

capital assets 77,791 2,113,248 793.113 70,909 69,495 189,233 3,313,789 3,237,871 

Opening accumulated 

amortization - 682,345 474,160 75,437 40,031 57,952 1,329,925 953,899 

Adjustment to opening 
accumulated amortization 

(note 15) - - - - - - - 267,015 

Reclassification 2 - - 22,024 (33,089) 3,419 7,646 

Annual amortization - 74,307 67,465 5,802 3,985 16,503 168,062 151,876 

Write-downs.... - (30,801) (659) - - (1,268) (32,728) (465) 

Disposals - (5,739) (20,601) (5,041) (4,016) (11,512) (46,909) (42,400) 

Closing accumulated 

amortization - 720,112 542,389 43.109 43,419 69,321 1,418,350 1,329,925 

Net Book Value of Tangible 

Capital Assets $77,791 $1,393,136 $250,724 $27,800 $26,076 $119,912 $1,895,439 $1,907,946 


Includes construction in progress, computer software, furniture and office equipment, aircraft and other tangible capital assets. 
Includes the reclassification of construction in progress completed during the period. 


50 


Public Accounts, 2000-01 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

5. Measurement Uncertainty 

Uncertainty in the determination of the amount at which an item is recognized in financial statements is known as measurement 
uncertainty. Such uncertainty exists when there is a variance between the recognized amount and another reasonably possible 
amount. 

Measurement uncertainty exists in these financial statements in the accrual of pension obligations, non-renewable resources royalties, 
site restoration obligations, accident claims obligations, the federal government’s Equalization and Canada Health and Social Transfer 
payments, and in the valuation of loans where repayment is contingent upon an organization’s cash flows. The uncertainty arises from 
factors such as the effect on accrued pension obligations of actual experience compared to actuarial estimations and assumptions; the 
effect on accrued royalties of price and production sensitivities in the royalty structures; the effect on site restoration obligations of 
actual experience compared to historical estimations and assumptions; the effect on accrued accident claims obligations of actual 
experience compared to actuarial estimations and assumptions; the effect on transfers from the federal government of changes in 
economic and demographic conditions in the Province and the country; and the effect of commodity prices on cash flows. 

Management considers that it is reasonably possible that changes in future conditions in the near term could require a material change 
in the amounts recognized. Near term is defined as a period of time not to exceed one year from the date of the financial statements. 

6. Pension Liabilities 

The Government of Saskatchewan sponsors several defined benefit and defined contribution pension plans for a significant number of 
its employees and for members of the Legislative Assembly. 

Defined benefit pension plans provide benefits based on length of service and pensionable earnings. A typical defined benefit 
pension plan provides pensions equal to 2 per cent of a member's average five years highest salary, multiplied by the years of service 
to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their pension plan. 

Pensions and contribution rates are integrated with the Canada Pension Plan. 

Actuarial valuations are performed at least triennially. These valuations are extrapolated by an actuary when a valuation is not done in 
the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, 
wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates 
and short-term forecasts. The long-term inflation rate is estimated between 2.6 and 3.75 per cent. Other estimates vary based on the 
individual plan. 

The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued 
at market related values based on actual market values averaged over a four year period. In the periods between valuations, the 
actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. 

Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a 
percentage of salary. The Government matches employee current service contributions. 

Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income 
securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is 
insignificant for all plans. 

a) Government Service Organizations 

Defined benefit pension plans 

The two main plans of government service organizations are the Teachers’ Superannuation Plan (TSP) and the Public Service 
Superannuation Plan (PSSP). Other plans include Members of the Legislative Assembly Superannuation Plan (MLA), Judges of the 
Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan, Anti-TB 
League Employees Superannuation Plan and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. 

The TSP provides inflation protection equal to 80 per cent of the annual increase in the Consumer Price Index. Other plans provide 
inflation indexing at the discretion of the Lieutenant Governor in Council. 

The Government is required to match member current service contributions for all plans except Judges and the PSSP. Separate 
pension funds are maintained for all plans except the PSSP. PSSP member contributions are deposited into the General Revenue 
Fund. All pension obligations arising under the PSSP are paid from the General Revenue Fund. 


Summary Financial Statements 


51 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

Information on the defined benefit pension plans of government service organizations follows: 


2001 2000 



TSP 

PSSP 

Others 

Total 

Total 

Plan status 

.... closed 

closed 

closed 1 

n/a 


n/a 

Member contribution rate, percentage of salary 

7.85 

7.0-9.0 2 

5.0-9.Q 2 

n/a 


n/a 

Number of active members 

6,177 

2,192 

92 

8,461 

8 

,869 

Average age of active members, years 

49.3 

51.4 

54.8 

49.9 

48.6 

Former members entitled to deferred pension benefits 

6,994 

157 

11 

7,162 

16 

,555 

Number of superannuates and surviving spouses 

9,042 

5,706 

1,881 

16,629 

16 

,543 

Member contributions (thousands of dollars) 

.... $ 23,000 $ 

6,245 $ 382 $ 29,627 

$ 28 

,646 

Government contributions (thousands of dollars) 

50,000 

- 

4,803 

54,803 

94 

,802 

Benefits paid (thousands of dollars) 

208,385 

91,977 

6,568 

306,930 

291 

,762 


1 Judges is open to new membership, all other plans are closed. 

2 Contribution rate varies based on age upon joining the plan. 


Based on the latest actuarial valuation, extrapolated to March 31, 2001, the present value of accrued pension benefits and the market 
related value of pension fund assets are shown in the table below: 


(thousands of dollars) 


Actuarial Accrued Pension Unamortized Recorded Recorded 

Valuation Benefit Fund Net Estimation Pension Pension 

Plan Name Date Obligation Assets Obligation Adjustments 1 Liabilities Liabilities 

TSP 2 . . . Jun. 30/99 $ 3,601,000 $ 1,605,000 $ 1,996,000 $ 565,028 $ 2,561,028 $ 2,508,353 

PSSP Sept. 30/99 1,526,619 - 1,526,619 (241,811) 1,284,808 1,230,486 

Others. Various 201,922 121,642 80,280 (13,469) 66,811 62,207 

Total $ 5.329.541 S 1,726.642 $ 3.602.899 $ 309.748 $ 3.912,647 $ 3.801.046 


1 Amortized to income over 1-13 years, the estimated average remaining service life of active plan members at the time the 
estimation adjustment arises. 

2 The TSP accrued benefit obligation includes a liability of $67.0 million (2000 - $63.0 million) relating to the TSP disability provision. 

At March 31 , 2001 , the market value of plan investments was $2.0 billion (2000 - $2.0 billion). Of this amount, 42.4 per cent 
(2000 - 47.9 per cent), was invested in fixed income securities and 52.7 per cent (2000 - 48.4 per cent) in equity investments. 

Defined contribution pension plans 

The two main multi-employer defined contribution pension plans sponsored by the Government are the Public Employees Pension 
Plan (REPP) and the Capital Pension Plan (Capital). The Government matches employee current service contributions to these plans. 
The Government also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP), sponsored by the Saskatchewan 
Teachers’ Federation. The Government has fully funded its share of contributions to the defined contribution plans. 


Information on the defined contribution pension plans of government service organizations follows: 



200' 

Government Sponsored 
PEPP Capital 

1 

STRP 

Total 

2000 

Total 

Plan status . . . . 

open 

open 

n/a 

n/a 

n/a 

Member contribution rate, percentage of salary . 

5.0-5.75 1 

5.5 

n/a 

n/a 

n/a 

Government Service Organization participation: 

Number of active members 

19,534 

589 

n/a 

20,123 

19,133 

Number of inactive members . 

7,965 

12 

n/a 

7,977 

7166 

Member contributions (thousands of dollars) 

$ 32,226 

$ 1,417 

n/a 

$ 33,643 

$ 31,186 

Government contributions (thousands of dollars) . . . . 

31,635 

1,516 

$ 23,797 

56,948 

50,758 


1 Contribution rate varies based on employee group. 


52 


Public Accounts, 2000-01 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

Pension expenditure 

Pension expenditure for government service organizations is reported in the Summary Statement of Revenue, Expenditure, and 
Accumulated Deficit in both education expenditure and other expenditure. Pension interest expenditure is reported in debt charges. 
The total pension related expenditure of government service organizations includes the following: 


(thousands of dollars) 



2001 

2000 

Defined benefit pension plans: 

Current period benefit cost 

Amortization of estimation adjustments 

$ 77,828 $ 

(23,241) 

66,884 

(48,731) 

Employee contributions 

54,587 

(29,627) 

18,153 

(28,646) 

Pension expenditure 

Cost of financinq unfunded pension obliqation (pension interest expenditure) 

24,960 

227,176 

(10,493) 

240,584 

Total pension related expenditure, defined benefit plans 

252,136 

230,091 

Defined contribution pension plans: 

Total pension related expenditure, defined contribution plans 

56,948 

50,758 

Total pension related expenditure 

$ 309,084 $ 

280,849 


b) Government Enterprises 
Defined benefit pension plans 

The two main defined benefit pension plans of government enterprises are the Power Corporation Superannuation Plan (SaskPower) 
and the Saskatchewan Telecommunications Pension Plan (SaskTel). Other pension plans include Saskatchewan Government 
Insurance Superannuation Plan, Liquor Board Superannuation Plan, and the Workers’ Compensation Board Superannuation Plan. 

The Government contributes the amount necessary to fund the payment of pension benefits. 

At December 31, 2000, the market value of plan investments was $1.6 billion (1999 - $1.6 billion). Of this amount, 43.5 per cent 
(1999 - 40.0 per cent) was invested in fixed income securities and 45.6 per cent (1999 - 48.6 per cent) in equity investments. 

Information on the defined benefit pension plans of government enterprises follows: 


2001 2000 



SaskPower 

SaskTel 

Others 

Total 

Total 

Plan status 

closed 

closed 

closed 

n/a 

n/a 

Member contribution rate, percentage of salary 

CD 

o 

CD 

o 

7.0-9.0 1 2 

6.5-9.0 2 

n/a 

n/a 

Number of active members 

691 

854 

176 

1,721 

1,886 

Number of former members, superannuates and surviving spouses . 

1,714 

1,551 

485 

3,750 

3,668 

Member contributions (thousands of dollars) 

$ 1 ,949 

$ 2,858 

$ 432 $ 

5,239 

$ 5,557 

Government contributions (thousands of dollars) 

546 

- 

1,969 

2,515 

1,650 

Benefits paid (thousands of dollars) 

37,949 

42,672 

7,719 

88,340 

79,601 


1 Contribution rate varies based on age upon joining the plan and employee group. 

2 Contribution rate varies based on age upon joining the plan. 


Summary Financial Statements 


53 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

Based on the latest actuarial valuations extrapolated to December 31 , 2000, the present value of accrued pension benefits and the 
market related value of pension fund assets are shown in the table below. 

(thousands of dollars) 



2001 



2000 





(Restated) 

Actuarial 

Accrued Benefit 

Pension 

Pension 


Pension 

Valuation 

Obligation 

Fund 

(Surplus) 


(Surplus) 

Plan Name Date 


Assets 

Liability 


Liability 

SaskPower September 30, 2000 

$ 630,433 

$ 732,474 

$ (102,041) 

$ 

(73,907) 

SaskTel December 31, 1998 

652,308 

807,363 

(155,055) 


(150,118) 

Others Various 

114,443 

99,214 

15,229 


19,546 

Total 

$ 1.397.184 

$ 1.639.051 

$ (241 .867^ 

$ 

(204.479) 

Defined contribution pension plans 






Information on the defined contribution pension plans of government enterprises follows: 






2001 


2000 






(Restated) 



PEPP 

Capital 

Total 

Total 

Plan status 


open 

open 

n/a 

n/a 

Member contribution rate, percentage of salary 


o 

CD 

o 

5.5 

n/a 

n/a 

Number of active members 


7,531 

1 ,976 

9,507 

9,548 

Number of inactive members 


2,401 

59 

2,460 

2,129 

Member contributions (thousands of dollars) 

$ 

15,176 $ 

3,903 $ 19,079 

$ 17,720 

Government contributions (thousands of dollars) 


19,062 

3,798 22,860 

21,395 


1 Contribution rate varies based on employee group. 


Pension expense 

Pension expense and pension interest expense for government enterprises are reported in the Summary Statement of Revenue, 
Expenditure, and Accumulated Deficit as a component of income from government enterprises. 

7. Reserves 

The accumulated deficit of $7,918.6 million consists of an unallocated deficit component of $7,930.5 million and the Environmental 
Protection Reserve of $11.9 million. The Environmental Protection Reserve was created to provide contingency funding to mitigate 
unforeseen environmental problems related to uranium milling. The reserve is maintained at its March 31, 1992 balance. 

8, Debt Charges 


(thousands of dollars) 

2001 2000 

Total interest costs $ 1,217,719 $ 1,305,840 

Less interest reimbursed from Government Enterprises (292,530) (293,293) 

Other costs 22,040 13,162 

Total Debt Charges $ 947.229 $ 1.025.709 


54 


Public Accounts, 2000-01 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

9. Expenditure by Object 

Expenditure by object is reported as follows: 

(thousands of dollars) 
2001 2000 

$ 2,475,557 $ 2,663,937 

1,850,836 1,763,396 

977,632 960,961 

947,229 1,025,709 

168,569 191,250 

186,435 180,213 

Total Expenditure $ 6,606,258 $ 6,785,466 


Transfers 

Salaries and benefits 

Operating costs 

Debt charges 

Tangible capital asset acquisitions 
Other 


10. Comparison of Planned to Actual Results 

A comparison of planned to actual surplus is as follows: 


(thousands of dollars) 




2001 

Planned 

Actual 

2000 

Actual 

General Revenue Fund surplus for the year 

Government enterprises’ income for the year 

Other government service organizations’ surplus for the year 

Dividends received from government organizations included in the surplus figures 

above 

Adjustments to conform to the basis of accounting described in note 1(c) 

$ 

9,414 

$ 57,691 

664,076 
1,096,426 

(1,261,281) 

(50,558) 

$ 83,479 

574,414 
144,271 

(297,464) 

(86,262) 

Surplus for the Year 



$ 506,354 

$ 418,438 


The planned and actual figures are before elimination of inter-organization transactions. 

11. Contingencies 

a) Guaranteed debt 

At March 31, 2001, $386.7 million (2000 - $444.0 million) in loans were guaranteed by the Government. Schedule 10 provides a listing 
of guaranteed debt. 

b) Lawsuits 

Up to $53.3 million may be paid depending on the outcome of lawsuits in progress. 

c) Indian and Northern Affairs Canada 

The Government pays for certain social services provided to status Indians and submits claims to the federal government for the cost 
of these services. The Government believes these costs are the responsibility of the federal government and believes they are fully 
reimbursable. However, the federal government denies responsibility for a portion of these costs. 

The Government is unable to determine whether or not the outstanding amounts will be reimbursed. The Government will account for 
any recovery resulting from the resolution of this contingency at the time of settlement. No provision for such a recovery has been 
made in these financial statements. 

12. Commitments 

Major financial commitments include: 

• forward purchase commitments of $1 ,810 million for coal contracted for future minimum deliveries valued at current prices; 

• forward purchase commitments of approximately $1 ,920 million for power over the next 24 years; 


Summary Financial Statements 


55 


Government of Saskatchewan 

Notes to the Summary Financial Statements 

• treaty land entitlement agreement commitments valued at approximately $85.9 million; 

• other commitments of $81 1 .3 million which include commitments of $28.7 million for agriculture, $14.8 million for community 
development, $42.6 million for economic development, $56.0 million for education, $63.8 million for health, $1 1.9 million for 
protection of persons and property, $127.2 million for social services and assistance, and $104.1 million for transportation; and, 

• capital and operating lease obligations as follows: 


(thousands of dollars) 



Operating 


Capital 

Future minimum lease payments 

2001-02 

$ 48,923 

$ 

12,097 

2002-03 

47,488 


11,773 

2003-04 

41,906 


11,207 

2004-05 

36,596 


10,662 

2005-06 

34,346 


9,257 

Thereafter 

27,308 


43,338 


236,567 


98,334 

Less: Interest and executory costs 

- 


(50,773) 

Total Lease Obligations 

$ 236,567 

$ 

47,561 


Total operating lease obligations include $157.6 million for government service organizations and $79.0 million for government 
enterprises. 

Total capital lease obligations relate entirely to government service organizations (schedule 5). 


13. Trust Funds 

Trust funds are property held and administered on behalf of beneficiaries. Trust assets are not owned by the Government and the 
Government has no equity in the funds. Therefore, trust funds are not included in the reporting entity. 

Fund balances held and administered by the Government at March 31 , 2001 , were as follows: 


(thousands of dollars) 




2001 


2000 

Superannuation funds and pensions plans 1 

Public Trustee’s Trust Account 

Other trusts 

$ 

8,086,125 

135,357 

39,543 

$ 

7,668,218 

143,860 

41,690 

Total Trust Funds 

$ 

8,261,025 

$ 

7,853,768 


1 The balance reflects the latest financial statements of the funds and plans closest to March 31 , 2001 . 


14. Comparative Figures 

Certain of the 2000 comparative figures have been reclassified to conform with the current year’s presentation. 

15. District Health Boards 

The inclusion of the additional 29 District Health Boards in the reporting entity during 1999-2000 resulted in the adjustment of certain 
opening balances for that year. 


56 


Public Accounts, 2000-01 


Government of Saskatchewan 




Schedules to the Summary Financial Statements 




For the Year Ended March 31 , 2001 




Schedule 1 - Accounts Receivable 






(thousands of dollars) 



2001 

2000 

Taxation 

$ 

142,254 $ 

126,662 

Non-renewable resources 


119,715 

103,379 

Transfers from the federal government 


64,506 

284,234 

Leases and farm loans 


12,543 

14,557 

Insurance premiums due from agriculture producers 


6,498 

9,581 

Accrued interest 


4,484 

6,823 

Other 


310,989 

257,026 

Total Accounts Receivable 

$ 

660,989 $ 

802,262 

Schedule 2 - Loans and Mortgages Receivable 






(thousands of dollars) 



2001 

2000 

Agricultural Loans 




Capital loan program 

S 

79,552 $ 

92,687 

Short-term hog loan program 


6,030 

11,235 

Production loan program 


2,526 

3,254 

Counselling and Assistance for Farmers program 


1,832 

2,149 

Livestock cash advance program 


1,517 

2,324 

Other 


749 

1,020 



92,206 

112,669 

Provision for losses 


(37,336) 

(39,449) 



54,870 

73,220 

Student Loans 


9,348 

13,926 

Provision for losses 


(6,430) 

(9,256) 



2,918 

4,670 

Other Loans 


70,604 

63,977 

Provision for losses 


(26,954) 

(23,956) 



43,650 

40,021 

Mortgages 




Cornwall Centre 


36,050 

36,891 

Housing 


4,505 

4,628 

Other 


236 

249 



40,791 

41,768 

Total Loans and Mortgages Receivable 

$ 

142,229 $ 

159,679 


See page 57 for additional information. 


Summary Financial Statements 


57 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 


Schedule 2 (continued) - Loans and Mortgages Receivable 

Capital loan program 

Loans are repayable over terms not exceeding twenty-five years and bear interest at rates between 6.0 per cent and 13.5 per cent. 
Security on individual loans varies and may include mortgages on real property, security agreements and guarantees. The program 
operates under The Agricultural Credit Corporation of Saskatchewan Act. 

Short-term hog loan program 

Loan applications were accepted under this program between January 15, 1999 and July 5, 1999 for hogs marketed between 
November 1, 1998 and May 29, 1999. The loans are repayable, at floating interest rates, in full by March 31, 2003. Penalty interest is 
charged at prime plus 2 per cent. The program operates under The Farm Financial Stability Act. 

Production loan program 

Production loans were disbursed in 1986 bearing interest at 6 per cent repayable in equal principal instalments over a term of three 
years. Amounts in arrears are at prime plus 2 per cent. Program amendments allowed borrowers to reschedule their outstanding 
loans at an average rate of 9.0 per cent. The loans are secured by promissory notes and, where applicable, by guarantees and 
general security agreements. The program operates under The Agricultural Credit Corporation of Saskatchewan Act. 

Counselling and Assistance for Farmers program 

Effective August 1 , 1992, the Government no longer issued new guarantees under this program. Existing guarantees were renewed 
until March 31 , 1995, at which time the program was terminated. The majority of loans are in default, have judgements obtained on 
them and bear interest at 5 per cent. The loans are secured by way of an assignment of security from the original lender. The 
program operates under The Agricultural Credit Corporation of Saskatchewan Act. 

Livestock cash advance program 

Effective August 1 , 1993, clients with livestock cash advances began repaying their loans, bearing interest at the bank prime rate plus 
2 per cent, over a maximum five-year period. Program amendments allowed borrowers to reschedule their outstanding loans at an 
average rate of 9.0 per cent. The loans are secured by promissory notes and, where applicable, by guarantees. The program 
operates under The Agricultural Credit Corporation of Saskatchewan Act. 

Student loans 

The program operates under the authority of The Student Assistance and Student Aid Fund Act, 1985. Loans are interest-free until the 
discontinuance of full-time studies or graduation. Interest rates are prescribed by the Minister of Post-Secondary Education and Skills 
Training. Special incentive loan remission grants, student bursaries and/or study grants are available to students who meet specific 
criteria. 

A Risk Sharing Student Loans Agreement between the Government and a bank was signed in March 1996. This Agreement covers 
loans approved between August 1 , 1996 and July 31 , 2001 . The Government retains responsibility for loan approval. Loans approved 
are lender-financed, disbursed, managed and collected by the bank. The Government pays a risk premium of 5 per cent to the bank 
when loans become repayable. 

An agreement between the Government and a bank that was in effect from October 1 , 1997 to December 31 , 1999, allowed the 
Government to transfer all loans which were not in default, had more than seven monthly payments outstanding and were not receiving 
interest relief. As a part of the agreement, the Government paid a risk premium of 5 per cent to the bank when the loans transferred. 

Cornwall Centre mortgages 

The Government holds two mortgages due jointly from Cadillac Fairview Corporation Limited and 1381052 ONTARIO INC. These 
mortgages mature December 1, 2001 and are repayable in blended monthly installments with mortgage rates of 9.63 per cent and 
1 1 .63 per cent respectively. 

Housing mortgages and loans 

Housing mortgages and loans were provided pursuant to provisions of Section 15 of The Saskatchewan Housing Corporation Act. 

The loans and mortgages are repayable, at various interest rates, over terms not exceeding thirty-five years. Security on the loans and 
mortgages may include promissory notes or charges against residential property. 


58 Public Accounts, 2000-01 


Government of Saskatchewan 







Schedules to the Summary Financial Statements 





Schedule 3 - Investment in Government Enterprises 









Saskatchewan 







Telecom- 

Saskatchewan 




Saskatchewan 

munications 

Liquor 

Saskatchewan 



SaskEnergy 

Power 

Holding 

and Gaming 

Gaming 



Incorporated 

Corporation 

Corporation 

Authority 

Corporation 



Dec. 31, 2000 

Dec. 31, 2000 

Dec. 31, 2000 

Mar. 31, 2001 

Mar. 31, 2001 

Assets 

Cash and temporary investments 







Due from government organizations 

$ 




12,925 


Other 


1,176 

68,266 

(8,737) 

2,707 

14,669 

Accounts receivable 







Due from government organizations 

Other 


178,942 5 

153,144 

103,996 

17,901 

319 

Inventories 



104,870 

10,204 

14,593 

155 

Prepaid expenses 

Long-term investments 


5,057 

1,897 

12,946 

1,813 

474 

In the Province 

Other 


7,493 


81,517 



Capital assets 

Other assets 


1,010,476 

2,878,811 

904,560 

31,818 

32,026 

Due from government organizations 

Other 


77,520 

124,871 

123,696 

557 


Total Assets 


1,280,664 

3,331,859 

1,228,182 

82,314 

47,643 

Liabilities 

Accounts payable and accrued liabilities 







Due to government organizations 


20,438 

50,467 

6,361 



Other 


132,730 

154,414 

94,323 

12,368 

4,841 

Dividends payable to government organizations 

Debt 


7,410 

16,872 

30,297 

46,012 

22,709 

Owing to government organizations 


712,677 

4,816 

1,570,799 

106 

408,415 

5,536 



Other 



20,093 

Unearned revenue 







Received from government organizations 


2,323 





Other 

Unpaid insurance claims 


92,393 

291,395 

26,311 



Other liabilities 




313 

23,934 


Total Liabilities 


972,787 

2,084,053 

571,556 

82,314 

47,643 

Net Assets (Liabilities) 

$ 

307,877 

1,247,806 

656,626 

- 

- 

Revenue 

Revenue from operations 

$ 

505,993 

1,092,528 

764,804 

634,913 

63,342 

Transfers from government organizations 


11,891 

16,024 

14,212 



Total Revenue 


517,884 

1,108,552 

779,016 

634,913 

63,342 

Expenses 

Expenses from operations 


386,102 

87,358 

778,328 

204,526 

652,990 

316,854 

40,633 

Transfers to government organizations 


52,123 

Total Expenses 3 


473,460 

982,854 

705,113 

316,854 

40,633 

Income (loss) before non-recurring items 


44,424 

125,698 

73,903 

318,059 

22,709 

Non-recurring items 4 




23,074 



Net Income (Loss) for the Year 

Retained earnings (deficit) - 


44,424 

125,698 

96,977 

318,059 

22,709 

beginning, as previously reported 


216,322 

531,248 

396,928 

699,094 


Restatement of prior years 





(941) 


Dividends to government organizations 


(24,400) 

(69,133) 

(87,279) 

(1,016,212) 

(22,709) 

Retained earnings (deficit) - end of year 


236,346 

587,813 

406,626 

- 

- 

Equity advances/share capital 


71,531 

659,993 

250,000 



Net Assets (Deficiency) - End of Year 

$ 

307,877 

1,247,806 

656,626 

- 

- 


See page 60 for additional information. 

1 Adjustments include: 

- reclassifying dividends paid by March 31, 2001; and 

- reversing the loss recognized by Municipal Financing Corporation for a premium paid on an exchange of debt with the General Revenue Fund 
and amortizing this same loss over the term of the original debt issues. 

2 Net assets are restricted as disclosed in the narrative portion of this schedule on the pages following. 

3 Total expenses include debt charges, net of sinking fund earnings, of $262.3 million (2000 - $274.2), of which $251.2 million (2000 - $255.2) was paid to 
government organizations. 


Summary Financial Statements 


59 


(thousands of dollars) 


Municipal 
Financing 
Corporation of 
Saskatchewan 

Dec. 31, 2000 

Saskatchewan 

Government 

Insurance 

Dec. 31, 2000 

Saskatchewan 

Auto 

Fund 

Dec. 31, 2000 

Workers’ 

Compensation 

Board 

(Saskatchewan) 2 

Dec. 31, 2000 

Saskatchewan 
Government 
Growth Fund 
Management 
Corporation 
Dec. 31, 2000 

Adjustments 1 

Total 

2001 


Total 

2000 

(Restated) 







12,925 

$ 

673,570 

46,128 

16,051 

80,091 

48,490 

866 

(56,349) 

213,358 


213,851 


2,019 

2,454 




4,473 


6,679 


36,621 

66,335 

18,306 

2,238 


577,802 


421,611 

2,396 






132,218 


113,879 


33,475 

15,874 




71,536 


71,656 


3,726 

9,959 

6,273 



19,958 


15,133 

29,120 

229,448 

589,212 

800,697 

4,590 


1,742,077 


1,630,693 


13,912 

31,450 

27,581 

16 


4,930,650 


4,915,530 






25,532 

352,176 


301,145 

77,644 

335,252 

795,375 

901,347 

7,710 

(30,817) 

8,057,173 


8,363,747 


2,199 

7,974 

23,443 

6,607 




117,489 


125,247 

31 

1 1 ,407 

13,159 

74,821 

867 



498,961 


359,393 


1,770 




(56,349) 


68,721 


19,816 

59,575 





12,596 


2,764,062 


2,758,606 

2,500 







33,051 


38,326 








2,323 


2,473 


92,300 

188,796 





691,195 


667,459 


125,470 

586,848 

599,926 




1,312,244 


1,239,727 


3,502 


83,001 




110,750 


97,118 

64,305 

242,423 

812,246 

764,355 

867 

(43,753) 


5,598,796 

$ 

5,308,165 

13,339 

92,829 

(16,871) 

136,992 

6,843 

12,936 

$ 

2,458,377 

$ 

3,055,582 

6,068 

195,387 

517,839 

217,862 

2,706 


$ 

4,001,442 

$ 

3,641,259 



3,057 

12,585 




57,769 


56,128 

6,068 

195,387 

520,896 

230,447 

2,706 

- 


4,059,211 


3,697,387 

403 

166,607 

445,011 

183,144 

11,219 

2,834 


2,984,125 


2,713,727 

9,788 

7,060 

30,622 

6,607 




398,084 


389,249 

10,191 

173,667 

475,633 

189,751 

11,219 

2,834 


3,382,209 


3,102,976 

(4,123) 

21,720 

45,263 

40,696 

(8,513) 

(2,834) 


677,002 


594,411 

- 



(36,000) 


- 


(12,926) 


(19,997) 

(4,123) 

21,720 

45,263 

4,696 

(8,513) 

(2,834) 


664,076 


574,414 

17,462 

57,657 

(62,134) 

132,296 

15,355 

14,822 


2,019,050 


1,617,100 






941 


- 


- 


(41,548) 






(1,261,281) 


(172,464) 

13,339 

37,829 

(16,871) 

136,992 

6,842 

12,929 


1,421,845 


2,019,050 


55,000 



1 

7 


1,036,532 


1,036,532 

13,339 

92,829 

(16,871) 

136,992 

6,843 

12,936 

$ 

2,458,377 

$ 

3,055,582 


Non-recurring items include: 

- a $14 million gain on sale of one-third of the Government's 2.9% investment in Austar United Communications Limited, an $8 million gain 

on sale of the Government's 29.9% investment in Regional Cable TV (Western) Inc., and a $1 million gain on the deemed disposition of 3% of 
the Government's interest in Soft Tracks Enterprise Ltd. Each investment is held by Saskatchewan Telecommunications Holding Corporation; and 

- $36 million in rebates provided by the Workers' Compensation Board (Saskatchewan) to qualified employers. 

5 Included in this amount is a Gas Cost Variance Account of $26.1 million. This account accumulates differences between forecast and actual gas costs, 
expected to be recovered from customers. Subsequent to year end, it was determined that rates would not be sufficiently increased to recover the 
amounts accumulated in the account. Therefore, during 2001, SaskEnergy will absorb the May 31, 2001 balance in the Gas Cost Variance Account of 
approximately $80 million. 


60 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 3 (continued) - Investment in Government Enterprises 

SaskEnergy Incorporated (SaskEnergy) 

SaskEnergy promotes, transports, stores and distributes natural gas in Saskatchewan. 

Saskatchewan Power Corporation (SaskPower) 

SaskPower generates, purchases, transmits, distributes and sells electricity and related products and services. 

Saskatchewan Telecommunications Holding Corporation (SaskTel) 

SaskTel markets and supplies a range of voice, data, Internet, wireless, text and image products, systems and services. Through 
interconnection agreements with other Canadian telecommunication companies, SaskTel is part of the national and global 
communications network. 

Saskatchewan Liquor and Gaming Authority (SLGA) 

SLGA's main functions are to control the manufacturing and distribution of beverage alcohol throughout the Province, to oversee the 
licensing of all establishments selling alcohol in the Province, and to maintain the integrity of all licensed gaming while ensuring 
maximum benefit to Saskatchewan charities. 

Saskatchewan Gaming Corporation (SGC) 

SGC’s mandate is to manage and operate Casino Regina. 

Municipal Financing Corporation of Saskatchewan (MFC) 

MFC assists municipalities in financing their capital requirements. 

Saskatchewan Government Insurance (SGI) & Saskatchewan Auto Fund (Auto Fund) 

SGI's competitive general insurance business, SGI CANADA, offers home, tenant, farm, automobile extension and commercial 
coverages. 

The Auto Fund, the Province's compulsory vehicle insurance program, is administered by SGI on behalf of the Government. Any net 
assets of the Auto Fund are for the future benefit of Saskatchewan's motoring public and are not used for the payment of dividends to 
the General Revenue Fund. 

Workers' Compensation Board (Saskatchewan) (WCB) 

WCB provides workers' compensation insurance to Saskatchewan workers and employers. Any net assets of the WCB cannot be 
used for the payment of dividends to the General Revenue Fund. 

Saskatchewan Government Growth Fund Management Corporation (SGGF) 

SGGF participates in the federal government's Immigrant Investor Program to acquire lower cost capital for investment in 
Saskatchewan on commercial terms. Investment funds are raised through eight subsidiary fund companies and are managed by 
SGGF with the assistance of a fund manager. 

After March 1999, SGGF declined to participate further in the Immigrant Investor Program. The existing fund companies will continue 
to raise capital through existing subscription requirements and will require management by SGGF for at least the next six years. 


Summary Financial Statements 


61 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 4 - Other Investments 


Partnership Interest / 
Voting Percentage 


(thousands of dollars) 

2001 2000 
(Restated) 


Equity Investments 

Government Business Partnerships 

Centennial Foods Partnership 

partnership interest... 

Foragen Technologies Limited Partnership 

35.0% $ 

19,939 $ 

- 

partnership interest... 

NewGrade Energy Snc. 

33.3% 

3,000 

- 

100 (2000 - 100) Class Y participating common shares 

Meadow Lake Pulp Limited Partnership 

50.0% 

(4,804) 

(56,613) 

partnership interest 

50.0% 

(33,629) 

(51,802) 

Other Equity Investments 

Saskferco Products Inc. 




68,449,080 (2000 - 68,449,080) Class B common shares 

49.0% 

106,079 

103,014 

Other........ 


32,088 

16,691 



122,673 

11,290 

Portfolio Investments 

Cameco Corporation 

5,423,123 (2000 - 5,423,123) common shares 

HARO Financial Corporation 

9.8% 

114,898 

114,898 

68,000,000 (2000 - 68,000,000) Class B non-voting common shares 

- 

68,000 

68,000 

Other 


16,878 

12,836 



199,776 

195,734 


Bonds, Debentures and Other Advances 

HARO Financial Corporation 162,666 204,740 

Meadow Lake Pulp Limited Partnership 148,361 148,361 

NewGrade Energy Inc 21,679 18,421 

Other 58,856 53,930 

391,562 425,452 


Property Holdings 137,320 11 4, 674 

Total Other Investments $ 851,331 $ 747,150 


See pages 62-64 for additional information. 


62 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 4 (continued) - Other Investments 


Centennial Foods Partnership (Centennial) 

On August 29, 2000, the Government, through its wholly-owned subsidiary CIC Foods Inc., purchased a 35 per cent interest in 
Centennial. Under the terms of the partnership agreement, Centennial 2000 Inc., which holds a 65 per cent interest in Centennial, 
transferred operating assets and liabilities to the partnership at estimated fair market value, resulting in a net capital contribution of 
$37.1 million. The Government injected cash of $20.0 million for its 35 per cent interest in the partnership. 

These financial statements include the operating results of Centennial from August 29, 2000 to its year end of October 29, 2000. 

Foragen Technologies Limited Partnership (Foragen) 

On October 13, 2000, the Government, through its wholly-owned subsidiary 101012875 Saskatchewan Ltd., entered into a partnership 
agreement with Royal Bank Ventures Inc. and SGF Soquia Inc. The Government owns 33.3 per cent of Foragen and has committed 
to providing $14.0 million in equity to Foragen over the next five years. At December 31 , 2000, the Government had provided $3.0 
million of this commitment. 

NewGrade Energy Inc. (NewGrade) 

The Government owns 50 per cent (1999 - 50 per cent) of the outstanding voting participating shares of NewGrade. The Government 
also holds certain promissory notes due on demand from NewGrade that bear interest at Bank of Montreal prime rate, which was 7.50 
per cent at December 31 , 2000 (1999 - 6.50 per cent). 

In addition, should there be any operating shortfall at the end of any year, the Government will loan NewGrade up to $2.0 million, 
escalated by inflation, in the form of a Subordinated Operations Fee Amount after Consumers’ Co-operative Refineries Limited (CCRL) 
has provided its $2.0 million Subordinated Operations Fee Amount. If these loans do not cover all cash shortfalls, then the 
Government will lend NewGrade up to $4.0 million as a Cash Flow Deficiency Loan on a pro-rata basis with CCRL. If this facility is 
exhausted, the Government will lend NewGrade the remainder to cover any other annual operating shortfalls. These loans, if any, will 
bear interest at CCRL's rate of borrowing. CCRL’s required Cash Flow Deficiency Loans cannot exceed $40.0 million outstanding at 
any time. 

During 2000, the Government provided $3.3 million (1999 - $18.4 million) to NewGrade under these agreements. 

Meadow Lake Pulp Limited Partnership (MLPLP) 

The Government, through its wholly-owned subsidiary CIC Pulp Ltd., owns a 50 per cent (1999 - 50 per cent) interest in MLPLP. 

In addition to its equity interest in MLPLP, the Government has also provided the following loans: 

• Participating Debenture of $99.0 million (1999 - $99.0 million) bearing interest at 11.15 per cent (1999 - 11.15 per cent) 
calculated on October 31 of each year. 

• Term Loan of $20.0 million (1999 - $20.0 million) bearing interest at prime plus 2.0 per cent, which was 9.5 per cent at 
December 31, 2000 (1999 - 8.5 per cent). Interest on this loan is being paid monthly. 

• Contingency Loan of $10.9 million (1999 - $10.9 million) bearing interest at prime plus 1.0 per cent, which was 8.5 per cent at 
December 31 , 2000 (1999 - 7.5 per cent). Any interest outstanding and not paid on October 31 of each year is added to the 
principal balance. 

• Guarantee Advance of $8.0 million (1999 - $8.0 million) bearing interest at prime plus 1.0 per cent, which was 8.5 per cent at 
December 31, 2000 (1999 - 7.5 per cent). 

• Cash Flow Loan of $10.5 million (1999 - $10.5 million) bearing interest at prime plus 1.0 per cent, which was 8.5 per cent at 
December 31 , 2000 (1999 - 7.5 per cent). 

The Government records, as a separate loan (Interest Loan), the accrued interest receivable from the Participating Debenture. 

Interest on the Interest Loan, at 1 1 .15 per cent, is calculated on October 31 of each year and is added to the principal balance 
outstanding on the loan. Interest income earned and forming part of the Interest Loan is recorded as deferred interest income due to 
the uncertainty of collection. The deferred interest income will be recorded as income when payments are received under the cash 
availability formula. 


Summary Financial Statements 


63 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 4 (continued) - Other Investments 


Any payments to be made on the Participating Debenture, the Contingency Loan and the Interest Loan are subject to available cash 
flows as defined in the loan agreements. Payments towards principal outstanding on the Term Loan are due in two equal instalments 
after MLPLP has fully repaid an external bank loan. The Contingency Loan, Term Loan, Participating Debenture and Interest Loan 
mature in 2014. The remaining balance outstanding on the Interest Loan and Participating Debenture on October 31, 2014 shall bear 
interest at a rate equal to the short-term cost of borrowing for the Province of Saskatchewan, which at December 31 , 2000 was 5.63 
per cent (1999 - 5.02 per cent), until paid in full. 

During 2000, the Government continued to work with MLPLP's other major lender to financially restructure MLPLP. This restructuring 
began in 1998 with the Government providing MLPLP with an $8.0 million advance under a bank loan guarantee and providing cash 
flow funding of $5.0 million. Similar to the Participating Debenture and Interest Loan, accrued interest on the Guarantee Advance and 
Cash Flow Loan is deferred due to the uncertainty of collection. Repayment terms will be determined once the financial restructuring 
of MLPLP is complete. 

The total deferred interest is $275.5 million (1999 - $229.7 million). 

Due to the uncertainty of cash flows from MLPLP, the Government’s Participating Debenture is shown net of a provision for loan losses 
of $60.0 million (1999 - $60.0 million). 

Saskferco Products Inc. (Saskferco) 

The Government holds a 49 per cent (1999 - 49 per cent) voting interest in Saskferco. 

Cameco Corporation (Cameco) 

At December 31, 2000, the Government owned 5,423,123 (1999 - 5,423,123) voting common shares of Cameco representing a 9.8 
per cent (1999 - 9.5 per cent) interest. Included in the investment in Cameco is one Class B share which provides the Government 
with the ability to exercise special voting rights with respect to the location of Cameco’s head office. 

The market value of Cameco shares at March 31, 2001 is $169.5 million (2000 - $80.8 million). 

HARO Financial Corporation (HARO) 

To December 31, 2000, the Government had advanced $273.0 million (1999 - $272.7 million) to HARO to finance its ownership 
interest in Crown Life Insurance Company (Crown Life). In 1995, the Government exercised its right to convert $68.0 million of these 
advances into 68,000,000 non-voting, fully participating equity shares of HARO. 

The loan was for an initial five-year term with a maximum of four five-year renewal terms at the option of HARO. In 1998, the 
Government agreed to renew this loan for a second five-year term. Annual interest rates on the loan are fixed at the start of each 
renewal term. For the second five-year term, the interest rate on the loan is 6.64 per cent compounded annually. 

Security for the loan is 100 per cent of HARO's assets, which as of December 31 , 2000 consisted primarily of HARO’s 64.5 per cent 
interest in Crown Life shares. In 1999, the Canada Life Assurance Company acquired most of the insurance operations of Crown Life. 
Although Crown Life's operations have significantly changed as a result of this transaction, it retained approximately $1.4 billion in 
assets and certain insurance operations which will continue to be managed by Crown Life. 

Payment of principal and interest is subject to available cash flow as defined in the loan agreement. Due to collection uncertainty, the 
Government will record interest income when payments are received. HARO made combined payments of $47.4 million during the 
year. Total interest owing to the Government at the end of the year is $146.0 million (1999 - $136.0 million). 

All unpaid principal and interest is due on December 15, 2017. On that date, any amounts outstanding will convert to 100 per cent of 
HARO equity shares. The Government has a unilateral right, prior to December 15, 2017, to convert no less than 25 per cent of the 
loan to either HARO non-voting, HARO voting or Crown Life shares. Any conversion may be subject to regulatory approval. 

Ownership of the 68,000,000 of HARO's Class B non-voting common shares entitles the Government to a maximum of 100 per cent of 
participation rights with respect to dividends and remaining property of HARO on its liquidation or dissolution. Subject to regulatory 
approval, the Government has a unilateral right to exchange at any time the Class B shares for voting shares or HARO's assets. 


64 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 4 (continued) - Other Investments 

Investment in Government Business Partnerships 

The Government has invested in government business partnerships to promote economic growth and provide an economic return. At 
March 31, 2000, the Government's investment in government business partnerships includes Meadow Lake Pulp Limited Partnership 
(MLPLP) and NewGrade Energy Inc. (NewGrade). At March 31, 2001, it also includes Centennial Foods Partnership (Centennial) and 
Foragen Technologies Limited Partnership (Foragen), two new partnerships entered into during the year. Centennial is a value-added 
food manufacturing and food service distribution business that is expanding its processing operations into Saskatchewan. Foragen is 
a venture capital fund which will offer seed capital to technology corporations. MLPLP operates a pulp mill near Meadow Lake and 
NewGrade operates a heavy oil upgrading plant in Regina. The Government holds a 35 per cent share in Centennial, 33.3 per cent 
share in Foragen and 50 per cent share in each of MLPLP and NewGrade. With the exception of Foragen, these investments are 
accounted for using the modified equity method. For 2000-01 only, due to limited activity since the formation of the partnership, 
Foragen is recorded at cost and is not included in the condensed financial information for government business partnerships. 


(thousands of dollars) 




2001 


2000 

(Restated) 

Condensed Financial Information for Government Business Partnerships: 

Assets 

Capital assets 

Other assets 

$ 

303,993 

277,639 

$ 

318,139 

166,801 

Total Assets 


581,632 


484,940 

Liabilities 

Debt 

Owing to government organizations 

Other 

Other liabilities 


515,076 

269,573 

113,647 


466,106 

343,780 

140,438 

Total Liabilities 


898,296 


950,324 

Net Liabilities 

$ 

(316.664) 

$ 

(465.384) 

Operating Results 

Revenue 

Expenses 

$ 

1,236,862 

1,143,887 

$ 

876,405 

890,237 

Net Operating Results for the Year 

Net Operating Deficiency - beginning of year 

Effect of partnership dissolution 


92,975 

(576,261) 


(13,832) 

(523,517) 

(38,912) 

Net Operating Deficiency - end of year 

Equity advances/share capital (net of partnership distributions) 


(483,286) 

166,622 


(576,261) 

110,877 

Net Deficiencv - End of Year 

$ 

(316.664) 

$ 

(465,384) 

Investment in Government Business Partnerships: 

Government's share of accumulated Net Operating Deficiency 

Government's investment 1 

Adjustments 2 

$ 

(241,617) 

88,927 

137,196 

$ 

(288,131) 

64,806 

114,910 

Total Investment in Government Business PartnershiDS 3 

$ 

(15.494) 

$ 

(108,415) 


1 Government’s investment includes the Government's initial investment net of partnership distributions as well as subsequent cash 
injections provided under various terms and conditions. 

2 Adjustments include: 

- elimination of expenditures included in the Government's share of accumulated operating deficiency above and also consolidated 
as part of the operations of Government Service Organizations. 

- recording additional operating expenditures incurred by the Government's subsidiaries through which the Government has made 
these investments. 

3 Total investment in government business partnerships includes: 

Centennial Foods Partnership $ 19,939 $ 

Foragen Technologies Limited Partnership 3,000 

NewGrade Energy Inc (4,804) (56,613) 

Meadow Lake Pulp Limited Partnership (33,629) (51 ,802) 

$ (15.494)~ $ (108,415) 


Summary Financial Statements 


65 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 


Schedule 5 - Accounts Payable and Accrued Liabilities 


(thousands of dollars) 




2001 


2000 

Transfers 

S 

268,134 

$ 

501,792 

Supplier payments 


194,568 


183,144 

Accrued interest 


189,662 


224,666 

Accrued employee benefits 


161,359 


146,948 

Transfers to the federal government 


107,546 


154,980 

Public employee benefit plans claims payable 


62,830 


58,265 

Capital lease obligations (note 12) 


47,561 


51,626 

Other 


125,024 


128,188 

Total Accounts Payable and Accrued Liabilities 

$ 

1,156,684 

$ 

1,449,609 


Schedule 6 - Other Liabilities 


(thousands of dollars) 




2001 


2000 

Funds held on behalf of government enterprises and others 

Saskatchewan Liquor and Gaming Authority 

S 

12,925 

$ 

673,570 

Queen's Bench Court Accounts 


9,614 


10,002 

Public Employees' Pension Plan 


5,714 


9,193 

Teachers' Superannuation Commission 


4,171 


3,135 

Others 


21,078 


20,693 



53,502 


716,593 

Other 


6,902 


4,942 

Total Other Liabilities 

$ 

60,404 

$ 

721,535 


66 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 7 - Public Debt 


(thousands of dollars) 




2001 


2000 



Gross 

Less 





Public 

Sinking 

Public 

Public 



Debt 

Funds 3 

Debt 

Debt 

Government Service Organizations 






General Revenue Fund 1 

$ 

7 , 912,755 $ 

507,276 $ 

7 , 405,479 $ 

7,525,371 

Saskatchewan Housing Corporation 


174,790 

949 

173,841 

192,349 

Saskatchewan Opportunities Corporation 


152,065 

1,813 

150,252 

125,843 

District Health Boards 


124,622 

- 

124,622 

126,551 

Agricultural Credit Corporation of Saskatchewan 


66,951 

7,116 

59,835 

77,894 

Crown Investments Corporation of Saskatchewan 






(non-consolidated) 


276,195 

232,992 

43,203 

58,656 

Saskatchewan Water Corporation 


41,435 

2,832 

38,603 

62,024 

Information Services Corporation of Saskatchewan 


30,246 

- 

30,246 

6,930 

Other 


6,476 

- 

6,476 

1,201 

Debt of Government Service Organizations 


8 , 785,535 

752,978 

8 , 032,557 

8,176,819 

Government Enterprises 






Saskatchewan Power Corporation 


1 , 660,718 

77,217 

1 , 583,501 

1 ,542,426 

SaskEnergy Incorporated 


771,936 

54,443 

717,493 

730,632 

Saskatchewan Telecommunications Holding Corporation 


445,807 

31,856 

413,951 

408,824 

Municipal Financing Corporation of Saskatchewan 


62,075 

- 

62,075 

90,991 

Saskatchewan Gaming Corporation 


20,093 

- 

20,093 

24,059 



2 , 960,629 

163,516 

2 , 797,113 

2,796,932 

Adjustments to March 31 


205,938 

( 39 , 870 ) 

245,808 

84,155 

Debt of Government Enterprises 2 


3 , 166,567 

123,646 

3 , 042,921 

2,881,087 

Total Public Debt 4 

$ 

11 , 952,102 $ 

876,624 $ 

11 , 075,478 $ 

11,057,906 


Debt repayable in foreign currency has been restated in Canadian dollar equivalents. 


1 General Revenue Fund debt is shown net of $3,010.7 million (2000 - $2,843.8 million) reimbursable from government 
enterprises, $468.3 million (2000 - $499.8 million) reimbursable from government service organizations, and $0 
(2000 - $2.3 million) borrowed from other government service organizations. 

2 The debt of government enterprises is as presented in their audited financial statements closest to March 31 , 2001 . The 
balance is adjusted for the net change to March 31 , 2001 . 

3 See Schedule 8 for information on sinking funds. 

4 See Schedule 9 for information on debt by maturity. 


Summary Financial Statements 


67 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 


Schedule 8 - Sinking Funds 


(thousands of dollars) 



2000 



2001 





Sinking 



Less 

Currency 

Sinking 



Funds Contributions 

Earnings Redemptions 

Adjustment 

Funds 

Government Service Organizations 

General Revenue Fund 

Crown Investments Corporation of Saskatchewan 

.. $ 

402,480 $ 

52,669 $ 

36,256 $ 

- 

$ 15,871 $ 

507,276 

(non-consolidated) 


217,539 

- 

15,453 

- 

- 

232,992 

Agricultural Credit Corporation of Saskatchewan 


157,657 

6,000 

7,104 

163,645 

- 

7,116 

Saskatchewan Water Corporation. 


2,361 

302 

169 

- 

- 

2,832 

Saskatchewan Opportunities Corporation 


863 

850 

100 

- 

- 

1,813 

Saskatchewan Housing Corporation 


322 

585 

42 

- 

- 

949 

Sinking Funds of Government Service Organizations 

781,222 

60,406 

59,124 

163,645 

15,871 

752,978 

Government Enterprises 

Saskatchewan Power Corporation 

Saskatchewan Telecommunications Holding 


137,844 

8,610 

6,722 

77,513 

1,554 

77,217 

Corporation........ 


60,086 

3,176 

3,967 

36,023 

650 

31,856 

SaskEnergy Incorporated 


46,133 

4,869 

3,441 

- 

- 

54,443 



244,063 

16,655 

14,130 

113,536 

2,204 

163,516 

Adjustments to March 31 


(28,708) 

2,142 

541 

15,989 

2,144 

(39,870) 

Sinking Funds of Government Enterprises 


' ■ : 355 

18,797 

14,671 

129,525 

4,348 

123,646 

Total Sinking Funds 

$ 

996,577 $ 

79,203 $ 

73,795 $ 

293,170 

$ 20,219 $ 

876,624 


The market value of sinking funds, at March 31 , 2001 , is $890.3 million (2000 - $994.0 million). 

Sinking fund earnings include gains on investment sales of $7.5 million (2000 - losses of $5.6 million). 

Annual contributions, when established by Order in Council, are set at not less than one per cent of debentures outstanding. The redemption value is based on the 

market value of the sinking fund units at the date of redemption. 

The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements are: 

(thousands of dollars) 


Government 


Service Government 

Organizations Enterprises Total 


2001-02 $ 

2002- 03 

2003- 04 

2004- 05 

2005- 06 

62,836 $ 

62,836 

62,836 

59,969 

50,409 

16,692 $ 

16,692 

16,692 

15,904 

15,904 

79,528 

79,528 

79,528 

75,873 

66,313 

$ 

298,886 $ 

81,884 $ 

380,770 

Sinking fund assets have been invested as follows: 


(thousands of dollars) 



2001 

2000 

(Restated) 

Long-term Investments 

Province of Saskatchewan securities; coupon interest range 5.5% to 10.3%; maturing in 2.3 to 27.9 years 

Government of Canada securities; coupon interest range 5.0% to 6.5%; maturing in 2.4 to 28.2 years 

Other provincial governments' securities; coupon interest range 5.3% to 10.3%; maturing in 2.7 to 38.3 years 

Government of the United States securities; coupon interest rate 6.3%; maturing in 29.1 years 

Other long term investments; coupon interest rate 8.3%; maturing in 15.4 years 

Cash, short term investments and accrued interest 

$ 

370,036 $ 
43,291 
275,634 
17,558 
12,951 
157,154 

556,826 

23,949 

238,448 

177,354 

Total Sinking Funds 

$ 

876,624 $ 

996,577 


Short term investments include $135.7 million (2000 - $66.5 million) Province of Saskatchewan securities. 


Cash, short term investments and accrued interest are disclosed net of $7.9 million (2000 - $3.8 million) in liabilities. 

Included are U.S. dollar cash, investments and accrued interest converted to $289.6 million Canadian (2000 - $225.9 million) at the exchange rate in effect at 
March 31, 2001 of 1.5774 (March 31, 2000 - 1.4535). 


68 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 9 - Public Debt by Maturity 


(thousands of dollars) 

Year of 

Maturity 



2001 



2000 



Canadian 

Dollar 

Debt 

U.S. Dollar 

Debt 
(CDN S) 

Total 
(CDN $) 

Average 

Coupon 

Rate 

Total 

(CDN$) 

Average 

Coupon 

Rate 

Government Service Organizations 






Short-term promissory notes 

S 

392,100 S 

- $ 

392,100 

5.01% $ 

345,300 

5.12% 

2000-01 


- 

- 

- 

- 

1,252,122 

10.28% 

2001-02 


791,515 

- 

791,515 

8.42% 

833,594 

8.18% 

2002-03 


385,870 

- 

385,870 

9.96% 

397,617 

9.29% 

2003-04 


374,010 

- 

374,010 

7.41% 

415,846 

7.04% 

2004-05 


1,126,578 

- 

1,126,578 

8.49% 

1,525,847 

7.55% 

2005-06 


721,859 

- 

721,859 

6.30% 

- 


1-5 years 


3,791,932 

- 

3,791,932 


4,770,326 


6-10 years 


2,248,415 

- 

2,248,415 

6.97% 

1,766,771 

7.16% 

11-15 years 


1,082,835 

670,395 

1,753,230 

8.74% 

1,769,789 

8.90% 

16-20 years 


95,998 

473,220 

569,218 

8.74% 

54,755 

6.43% 

21-25 years 


15,000 

157,740 

172,740 

8.60% 

596,400 

9.05% 

Thereafter 


250,000 

- 

250,000 

5.75% 

- 



$ 

7,484,180 $ 

1,301,355 

8,785,535 


8,958,041 


Less: Sinking funds 




(752,978) 


(781,222) 


Debt of Government Service Organizations 



8,032,557 


8,176,819 


Government Enterprises 








Shortterm promissory notes 

$ 

241,000 S 

- $ 

241,000 

5.01% 

14,700 

5.12% 

2000-01 


- 

- 

- 

- 

87,745 

10.86% 

2001-02 


43,579 

- 

43,579 

13.39% 

36,285 

15.21% 

2002-03 


16,529 

- 

16,529 

13.36% 

385,423 

12.50% 

2003-04 


97,280 

78,870 

176,150 

9.35% 

170,030 

9.45% 

2004-05 


205,878 

- 

205,878 

11.52% 

205,966 

11.52% 

2005-06 


189,259 

- 

189,259 

9.88% 

- 

- 

1-5 years 


793,525 

78,870 

872,395 


900,149 


6-10 years 


612,415 

306,015 

918,430 

7.96% 

926,064 

8.73% 

11-15 years 


1 1 ,495 

118,305 

129,800 

7.54% 

109,013 

7.38% 

16-20 years 


35,166 

315,480 

350,646 

9.10% 

- 


21-25 years 


415,000 

315,480 

730,480 

8.92% 

821,400 

9.13% 

Thereafter 


164,816 

- 

164,816 

5.70% 

339,816 

7.26% 


s 

2,032,417 S 

1,134,150 

3,166,567 


3,096,442 


Less: Sinking funds 




(123,646) 


(215,355) 


Debt of Government Enterprises 




3,042,921 


2,881,087 


Total Public Debt 



$ 

11,075,478 

$ 

11,057,906 



See page 69 for additional information. 


Summary Financial Statements 


69 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 9 (continued) - Public Debt by Maturity 

The overall average effective interest rate of public debt is 8.74 per cent (2000 - 8.33 per cent) and the average term to maturity is 8.9 
years (2000 - 8.3 years). The average effective interest rate includes the impact of foreign exchange and the amortization of any 
premiums or discounts associated with the debentures. 

U S. dollar debentures have been converted to Canadian dollars at the exchange rate in effect at March 31, 2001 of 1.5774 
(March 31, 2000- 1.4535). 

The debt of government service organizations includes Canada Pension Plan debentures of $595.1 million (2000 - $612.7 million) at a 
weighted average interest rate of 1 1.05 per cent, ranging from 5.97 per cent to 17.51 per cent. Of this amount, $74.6 million is 
payable within one year. The debt of government enterprises includes Canada Pension Plan debentures of $734.6 million 
(2000 - $728.1 million) at a weighted average interest rate of 10.93 per cent, ranging from 6.57 per cent to 16.10 per cent. Of this 
amount, $35.0 million is payable within one year. These debentures are redeemable in whole or in part before maturity, on six months 
prior notice, at the option of the Minister of Finance of Canada. 

Debt includes debentures of $822.8 million (2000 - $1 ,066.5 million) redeemable annually at the option of the holder or anytime on the 
death of the holder. $71.0 million of this amount is payable within one year. 

Included in total public debt are the following amounts: 

• debentures totalling 22.5 billion yen (2000 - 22.5 billion) fully hedged to $259.2 million Canadian (2000 - $259.2 million). 

• debentures totalling $750.0 million U.S. (2000 - $750.0 million) fully hedged to $1 ,037.0 million Canadian 
(2000 -$1,037.0 million). 

• debentures totalling 200.0 million Deutschmarks (2000 - 200.0 million) fully hedged to $154.1 million Canadian 
(2000 -$154.1 million). 

• debentures totalling 200.0 million Swiss francs (2000 - 400.0 million) fully hedged to $145.4 million Canadian 
(2000 - $292.0 million). 


70 


Public Accounts, 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 10 - Guaranteed Debt 


The Industry and Commerce Development Act 

Saskferco Products Inc S 

The NewGrade Energy Inc. Act 

NewGrade Energy Inc 

Crown Investments Corporation of Saskatchewan (non-consolidated) 

NewGrade Energy Inc 

The Power Corporation Act 

Luscar Ltd 

National Trust Company 

The Farm Financial Stability Act 

The Breeder associations 

The Feeder associations 

Other 

Total Guaranteed Debt $ 

Total guaranteed debt is net of a loss provision of $2.2 million (2000 - $0.8 million). 

In addition to the amount shown, there is a contingent liability for interest accrued on these items. 
See page 71 for additional information. 


(thousands of dollars) 
2001 2000 
(Restated) 


142,797 

$ 

150,568 

93,038 


118,723 

71,021 


90,691 

25,105 

12,007 


26,957 

13,860 

15,970 

15,560 

11,173 


15,210 

14,824 

13,140 

386,671 

$ 

443,973 


Summary Financial Statements 


71 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 10 (continued) - Guaranteed Debt 

Saskferco Products Inc. (Saskferco) 

The Government has guaranteed certain medium-term notes issued by Saskferco to finance the construction of a nitrogen based 
fertilizer plant located near Belle Plains. 

This guarantee pertains to debt denominated in U S. dollars. Thus, the amount of the guarantee is influenced by changes in the value 
of the LJ.S. dollar relative to the Canadian dollar. The amount recorded is net of $119.1 million (2000 - $1 14.0 million) for Saskferco’s 
equity in a sinking fund. 

NewGrade Energy Inc. (NewGrade) 

The Government has indemnified the Government of Canada for its guarantee of NewGrade’s long-term debt, to a maximum of $275 
million. At March 31, 2001, the Government’s guarantee is $71.0 million (2000 - $90.7 million). 

The Government has also guaranteed certain long-term debt of NewGrade to a maximum of $360 million. A significant portion of this 
guarantee relates to U.S. denominated debt. Thus, the amount of the guarantee is influenced by changes in the value of the LJ.S. 
dollar relative to the Canadian dollar. At March 31 , 2001 , the Government’s guarantee is $93.0 million (2000 - $1 1 8.7 million). 

Luscar Ltd. 

The Government has guaranteed a $45 million promissory note issued by Luscar Ltd. to finance the purchase of a dragline from 
Saskatchewan Power Corporation. The note is due in 2003. The amount recorded is net of $19.9 million (2000 - $18.0 million) for 
Luscar Ltd’s equity in a sinking fund administered by the Minister of Finance. 

National Trust Company 

The Government is contingently liable for payments on certain leased mining equipment, which was assumed by the purchaser of a 
mining operation. The lease expires in 2004. 

Breeder and Feeder Associations 

The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment 
of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that 
payment is to be made on the guarantee. Guarantees for each production association are limited to $4 million under both the breeder 
cattle and feeder cattle options. 

Other 

Other includes guarantees under $10 million. 


72 


Public Accounts, 2000-01 


Government of Saskatchewan 




Schedules to the Summary Financial Statements 




Schedule 11 - Revenue 






(thousands of dollars) 



2001 

2000 

Taxation 




Individual income 

S 

1,255,409 $ 

1,446,169 

Sales 


736,563 

660,314 

Fuel 


345,136 

369,010 

Corporation capital 


342,242 

293,351 

Corporation income 


333,299 

277,226 

Tobacco 


122,012 

123,866 

Other 


68,595 

53,848 

Total Taxation 


3,203,256 

3,223,784 

Non-renewable Resources 




Oil 


799,049 

640,097 

Natural gas 


239,305 

91,784 

Potash 


199,296 

169,452 

Other 


55,064 

41,817 

Total Non-renewable Resources 


1,292,714 

943,150 

Other Own-source Revenue 




Fees/permits/licenses 


484,321 

507,977 

Interest and dividends 


114,223 

94,527 

Equity investments 


73,493 

7,954 

Insurance 


69,635 

85,528 

Gain on sale of investments 


- 

26,367 

Other 


182,071 

186,628 

Total Other Own-source Revenue 


923,743 

908,981 

Total Own-source Revenue 


5,419,713 

5,075,915 

Transfers from the Federal Government 




Canada Health and Social Transfer 


552,378 

556,282 

Equalization 


175,247 

541,598 

Crop insurance premium contributions 


78,925 

70,104 

Housing subsidy 


55,126 

63,880 

Other 


167,147 

321,711 

Total Transfers from the Federal Government 


1,028,823 

1,553,575 

Total Revenue 

$ 

6,448,536 $ 

6,629,490 


Summary Financial Statements 


73 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 

Schedule 12 - Gains and Losses on Investments 


(thousands of dollars) 




2001 


2000 

Gain (Loss) on Sale of Investments 

Saskfor MacMillan Limited Partnership 

Western Canadian Beef Packers Inc 

$ 

- 

$ 

30,241 

(3,874) 

Net Gain on Sale of Investments 


- 


26,367 


Earnings (Losses) from Equity Investments 

NewGrade Energy Inc 

Meadow Lake Pulp Limited Partnership 

Saskferco Products Inc 

Saskfor MacMillan Limited Partnership 

Centennial Foods Partnership 

Other 


51,809 

1,020 

17,712 

10,605 

3,065 

(2,191) 

- 

3,038 

(61) 

- 

968 

(4,518) 


Net Earnings from Equity Investments 


73,493 


7,954 

Provision for Investment Losses 


(3,543) 


(2,500) 

Net Gain on Investments 

$ 

69,950 

$ 

31,821 


Schedule 13 - Net Change in Non-cash Operating Activities 


(thousands of dollars) 



2001 

2000 

Decrease (increase) in prepaid expenditures 

Decrease (increase) in accounts receivable 

Decrease (increase) in inventories held for resale 

Decrease (increase) in deferred charges 

Increase (decrease) in accounts payable and accrued liabilities 

Increase (decrease) in unearned revenue 

$ 

(7,409) $ 

141,273 
(858) 

(23,467) 

(292,925) 

19,882 

(473) 

(312,577) 

512 

7,925 

117,417 

22,616 

Net Change in Non-cash Operating Activities 

$ 

(163,504) $ 

(164,580) 


74 


Public Accounts 2000-01 


Government of Saskatchewan 

Schedules to the Summary Financial Statements 


Schedule 14 - Reporting Entity 

Government Service Organizations (Consolidated) 

Agricultural Credit Corporation of Saskatchewan 

Agricultural Implements Board 

Agri-Food Equity Fund 

Agri-Food Innovation Fund 

Associated Entities Fund 

Big Game Damage Compensation Fund 2 

Board of Governors, Uranium City Hospital 

Carlton Trail Regional College 

Cattle Marketing Deductions Fund 

CIC Industrial Interests Inc. 

Commercial Revolving Fund 
Correctional Facilities Industries Revolving Fund 
Correspondence School Revolving Fund 
Crop Reinsurance Fund of Saskatchewan 
Crown Investments Corporation of Saskatchewan 
(non-consolidated) 

Cumberland Regional College 
Cypress Hills Regional College 
District Health Boards 
Extended Health Care Plan 

Extended Health Care Plan for Certain Other Employees 

Fiscal Stabilization Fund 1 

Fish and Wildlife Development Fund 

General Revenue Fund 

Health Services Utilization and Research Commission 
Highways Revolving Fund 
Horned Cattle Fund 

Information Services Corporation of Saskatchewan 4 

Law Reform Commission of Saskatchewan 

Learning Resources Distribution Centre Revolving Fund 

Livestock Services Revolving Fund 

Milk Control Board 

North West Regional College 

Northern Revenue Sharing Trust Account 

Northlands College 

Oil and Gas Environmental Fund 

Operator Certification Board 1 

Parkland Regional College 

Pastures Revolving Fund 5 

Prairie Agricultural Machinery Institute 

Prairie West Regional College 

Public Employees Benefits Agency Revolving Fund 

Public Employees Dental Fund 

Public Employees Disability Income Fund 

Public Employees Group Life Insurance Fund 

Queen's Printer Revolving Fund 

Resource Protection and Development Revolving Fund 


Saskatchewan Agricultural Stabilization Fund 
Saskatchewan Apprenticeship and Trade Certification Commission 
Saskatchewan Archives Board 
Saskatchewan Arts Board 
Saskatchewan Cancer Foundation 
Saskatchewan Centre of the Arts Fund 
Saskatchewan Communications Network Corporation 
Saskatchewan Crop Insurance Corporation 
Saskatchewan Development Fund Corporation 
Saskatchewan Grain Car Corporation 
Saskatchewan Health Information Network 
Saskatchewan Heritage Foundation 
Saskatchewan Housing Corporation 
Saskatchewan Indian Regional College 2 
Saskatchewan Institute of Applied Science and Technology 
Saskatchewan Legal Aid Commission 
Saskatchewan Lotteries Trust Fund For Sport, Culture and 
Recreation 

Saskatchewan Opportunities Corporation 

Saskatchewan Property Management Corporation 

Saskatchewan Research Council 

Saskatchewan Student Aid Fund 

Saskatchewan Transportation Company 

Saskatchewan Water Corporation 

Saskatchewan Western Development Museum 

Saskatchewan Wetland Conservation Corporation 

Sask911 Account 

Southeast Regional College 

St. Louis Alcoholism Rehabilitation Centre 

Training Completions Fund 3 

Transportation Partnerships Fund 

Victims' Fund 

Water Appeal Board 

Government Enterprises (Modified Equity Method) 

Municipal Financing Corporation of Saskatchewan 
Saskatchewan Auto Fund 
Saskatchewan Gaming Corporation 
Saskatchewan Government Growth Fund Management 
Corporation 

Saskatchewan Government Insurance 

Saskatchewan Liquor and Gaming Authority 

Saskatchewan Power Corporation 

Saskatchewan Telecommunications Holding Corporation 

SaskEnergy Incorporated 

Workers' Compensation Board (Saskatchewan) 


1 Organization established during 2000-01. 

2 Organization wound-up during 2000-01. 

3 Organization determined to be in reporting entity during 2000-01 . 

4 Name changed from Saskatchewan Land Information Services Corporation during 2000-01. 

5 Name changed from Conservation and Development Revolving Fund during 2000-01. 


General Revenue Fund - Details of Debentures 
(unaudited) 


76 


Public Accounts, 2000-01 


General Revenue Fund 

Public Issue Debentures 

As at March 31 , 2001 

Interest 

Date of Date of Rate Interest Purpose of 

Issue Maturity % Payments Currency Issue 

Amount 

Outstanding 

Total Issue 
Outstanding 

Equity of 
Applicable 
Sinking Fund 

Sinking Fund 
Contribution 

2000-01 

April 10/91 April 10/01 10.57 Annual Can. GRF 

(The original issue of 7.125% 200,000,000 Swiss Franc debentures has 
been swapped into Canadian dollars with an effective cost of funds of 
10.57%; Non-callable; Payable in Zurich) 

145,360,000 

145,360,000 

... 


March 28/91 June 1/01 10.75 Semiannual Can. GRF 

(Non-callable; Payable at any Canadian branch of the Royal Bank of 

Canada) 

150,000,000 

150,000,000 

... 


March 28/91 June 1/01 8.75 Semiannual Can. CIC 

(Non-callable; Payable at any Canadian branch of the Royal Bank of 

Canada) 

101,168,000 

101,168,000 

86,761,167 


July 15/96 July 15/01 5.50 Annual Can. GRF 

(Savings bond; Redeemable annually at the option of the holder or 
any time on the death of the holder; The Province reserves the right to 
increase the interest rate after July 14, 1997; Payable at any 

Saskatchewan branch of a chartered bank, trust company and the 

Credit Union Central of Saskatchewan) 

70,957,700 

70,957,700 



Oct. 10/96 Oct. 10/01 6.125 Semiannual Can. GRF 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

200,000,000 

200,000,000 

" 


July 15/97 July 15/02 4.00 Annual Can. GRF 

(Savings bond; Redeemable annually at the option of the holder or 
any time on the death of the holder; The Province reserves the right to 
increase the interest rate after July 14, 1998; Payable at any 

Saskatchewan branch of a chartered bank, trust company and the 

Credit Union Central of Saskatchewan) 

34,096,900 

34,096,900 



July 29/92 July 29/02 8.75 Semiannual Can. GRF 

(The original 6.04% 5,000,000,000 Japanese Yen loan has been 
converted by forward contract to Canadian dollars resulting in an 
all-in-cost of 8.75%; Non-callable; Payable in Tokyo) 

47,700,000 

47,700,000 



Sept. 30/92 Sept. 30/02 8.21 Semiannual Can. GRF 

(The original 6% 5,000,000,000 Japanese Yen loan has been converted 
by forward contract to Canadian dollars resulting in an all-in-cost of 

8.21%; Non-callable; Payable in Tokyo) 

49,613,664 

49,613,664 



Feb. 12/93 Feb. 12/03 9.055 Semiannual Can. CIC 

154,107,820 

154,107,820 

146,231,243 

... 


(The original 200,000,000 Deutschemark issue carried interest at 11% 
paid annually for two years and a floating interest rate paid semi-annually 
for the remaining term of the debentures; Principal and interest payments 
have been converted by forward contract to Canadian dollars with an 
all-in-cost of 9.055%; Non-callable; Payable in Frankfurt/Main, Zurich, 
London, Luxembourg) 


Details of Debentures 


77 


General Revenue Fund 
Public Issue Debentures 


Date of 

Issue 

Date of 
Maturity 

Interest 

Rate 

% 

Interest 

Payments 

Currency 

Purpose of 
Issue 

Amount 

Outstanding 

Total Issue 
Outstanding 

Equity of 
Applicable 
Sinking Fund 

Sinking Fund 
Contribution 
2000-01 

July 20/93 

July 15/03 

6.625 

Semiannual 

U.S. 

GRF 

SaskPower.... 

191,850,000 

50,000,000* 

241,850,000 

20,566,564 
4,713,494 * 

2,225,850 

741,950 


(The General Revenue Fund $150,000,000 U.S. share of this debenture 
issue has been swapped into Canadian dollars with an effective 
interest rate of 8.32%; Non-callable; Payable in New York) 


July 15/98 July 15/03 5.00 Annual Can. GRF 76,887,900 76,887,900 

(Savings bond; Redeemable annually at the option of the holder or 
any time on the death of the holder; The Province reserves the right to 
increase the interest rate after July 14, 1999; Payable at any 
Saskatchewan branch of a chartered bank, trust company and the 
Credit Union Central of Saskatchewan) 

Aug. 31/93 Aug. 31/03 8.20 Semiannual Can. GRF. 31,040,865 31,040,865 

(The original 5.2% 2,500,000,000 Japanese Yen loan has been 
swapped into Canadian dollars with an effective interest rate of 8.2%; 

Non-callable; Payable in Tokyo) 

March 1/01 March 1/04 5.00-6.80 Semiannual Can. SOCO 50,000,000 50,000,000 

(Canadian medium term note; If not redeemed by the holder on 
March 1 , 2004, this note matures on March 1 , 201 1 ; This note pays 
interest of 5% to March 1 , 2004 and 6.8% thereafter; This book-based 
note is held in the Canadian Depository for Securities) 

May 10/94 May 10/04 8.82 Semiannual Can. GRF 67,1 16,600 67,116,600 

(The original 4.48% 5,000,000,000 Japanese Yen loan has been 
swapped into Canadian dollars with an effective interest rate of 8.82%; 

Non-callabie; Payable in Tokyo) 

June 22/99 June 17/04 5.50-5.75 Semiannual Can. SOCO 25,000,000 25,000,000 

(Canadian medium term note; If not redeemed by the holder on 
June 17, 2004, this note matures on June 17, 2019; This note pays 
interest of 5.50% to June 17, 2004 and 5.75% thereafter; This 
book-based note is held in the Canadian Depository for Securities) 

July 15/99 July 15/04 5.00 Annual Can. GRF 150,394,500 150,394,500 

(Savings bond; Redeemable annually at the option of the holder or any 
time on the death of the holder; The Province reserves the right to 
increase the interest rate after July 14, 2000; Payable at any 
Saskatchewan branch of a chartered bank, trust company and the 
Credit Union Central of Saskatchewan) 

July 26/94 July 15/04 Van Semiannual Can. GRF 553,094,588 553,094,588 44,604,512 5,935,600 

(The original 8% $400,000,000 U.S. debentures have been swapped 
into Canadian dollars; $200,000,000 at 9.83%, $127,587,285 at 4.98% 
and $72,412,715 at 4.982%; Payable in New York) 

Aug. 16/94 Aug. 16/04 9.5 Semiannual Can. GRF 300,000,000 300,000,000 23,490,162 3,000,000 

(Non-callable; Payable at any Canadian branch of the Royal Bank of 
Canada) 


78 


Public Accounts, 2000-01 


General Revenue Fund 
Public Issue Debentures 


Date of 

Issue 

Date of 
Maturity 

Interest 

Rate 

% 

Interest 

Payments 

Currency 

Purpose of 
Issue 

Amount 

Outstanding 

Total Issue 
Outstanding 

Equity of 
Applicable 
Sinking Fund 

Sinking Fund 
Contribution 

2000-01 

Dec. 30/86 

Dec. 30/04 

9.625 

Semiannual 

Can. 

SaskPower.... 

SaskEnergy... 

89.300.000 

10.700.000 

100,000,000 




(Non-callable; Payable at any Canadian branch of the Royal Bank of 
Canada) 


Feb. 17/00 Jan. 25/05 6.10-6.25 Semiannual Can. SOCO 25,000,000 25,000,000 254,355 250,000 

(Canadian medium term note; If not redeemed by the holder on 
January 25, 2005, this note matures on January 25, 2030; This note 
pays interest at 6.10% to January 25, 2005 and 6.25% thereafter; This 
book-based note is held in the Canadian Depository for Securities) 

July 15/00 July 15/05 5.75 Annual Can. GRF 490,493,800 490,493,800 

(Savings Bond; Redeemable annually at the option of the holder or any 
time on the death of the holder; The Province reserves the right to 
increase the interest rate after July 14, 2001 ; Payable at any 
Saskatchewan branch of a chartered bank, trust company and the 
Credit Union Central of Saskatchewan) 

Dec. 19/95 Dec. 19/05 7.50 Semiannual Can. GRF 

SaskWater.. 

SaskEnergy 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

March 24/99 March 5/06 5.00-5.60 Semiannual Can. SaskTel 

SaskEnergy 

(Canadian medium term note; If not redeemed by the holder on 
March 5, 2006, this note matures on March 5, 2029; This note pays 
interest at 5% to March 5, 2006 and 5.6% thereafter; This book-based 
note is held in the Canadian Depository for Securities) 

Oct. 27/00 June 1/06 6.00 Semiannual Can. GRF 240,000,000 

SOCO 10,000,000 250,000,000 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

Aug. 23/96 Aug. 23/06 7.846 Semiannual Can. GRF 63,684,000 63,684,000 

(The original 3.451% 5,000,000,000 Japanese Yen loan has been 
converted by forward contract to Canadian dollars resulting in an 
all-in-cost of 7.846%; Non-callable; Payable in Tokyo) 

Jan. 25/00 Jan. 25/07 6.35 Semiannual Can. GRF 30,000,000 30,000,000 305,226 300,000 

(Canadian medium term note; Extendible at the option of the holder to 
January 25, 2030; This book-based note is held in the Canadian 
Depository for Securities) 


.... 218,200,000 
6,800,000 

75.000. 000 

35.000. 000 

... 25,000,000 


300,000,000 18,371,063 3,084,000 


60,000,000 


Details of Debentures 


79 


General Revenue Fund 
Public Issue Debentures 


Interest Equity of Sinking Fund 

Date of Date of Rate Interest Purpose of Amount Total Issue Applicable Contribution 

Issue Maturity % Payments Currency Issue Outstanding Outstanding Sinking Fund 2000-01 


Jan. 25/00 Jan. 25/07 5.49-6.35 Semiannual Can. GRF 

(Canadian medium term note; Extendible at the option of the holder to 

January 25, 2030; The original note paid interest at 6.20% to January 25, 
2007, and 6.35% thereafter; This has been swapped into an obligation 
paying 5.49% to January 25, 2007, and 6.35% thereafter; This 
book-based note is held in the Canadian Depository for Securities) 

120,000,000 

120,000,000 

1,220,904 

1,200,000 

March 9/00 March 9/07 6.25 Semiannual Can. GRF 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

250,000,000 

250,000,000 



May 15/97 May 15/07 6.65 Semiannual Can. SaskEnergy... 

(Canadian medium term note; Non-callable; This book-based note is 
held in the Canadian Depository for Securities) 

30,000,000 

30,000,000 

1,031,156 

300,000 

March 2/83 March 1/08 9.00 Annual Can. SaskEnergy... 

(Non-callable; Payable in London and Toronto) 

50,000,000 

50,000,000 

— 

... 

March 15/93 March 15/08 7.125 Semiannual U.S. SaskPower. .. 

(Non-callable; Payable in New York) 

194,000,000 

194,000,000 * 

21,155,878 * 

2,998,852 

Nov. 28/97 May 28/08 5.50 Semiannual Can. SOCO 

(Canadian medium term note; Non-callable; This book-based note is 
held in the Canadian Depository for Securities) 

20,000,000 

20,000,000 

687,437 

200,000 

Feb. 26/98 June 2/08 5.50 Semiannual Can. GRF 

SOCO 

SaskEnergy... 
Sask Housing 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

328,500,000 

40.000. 000 

25.000. 000 
6,500,000 

400,000,000 

8,716,335 

4,000,000 

Nov. 12/99 Nov. 12/09 6.50 Semiannual Can. GRF 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

250,000,000 

250,000,000 

2,572,665 

2,500,000 

Jan. 18/90 Jan. 18/10 10.00 Semiannual Can. GRF 

(Non-callable; Payable at any Canadian branch of the Royal Bank of 

Canada) 

300,000,000 

300,000,000 

54,287,484 

3,000,000 

Sept. 1/00 Sept. 1/10 6.15 Semiannual Can. GRF 

SaskTel 

SaskEnergy... 

(Non-callable; This book-based note is held in the Canadian Depository 
for Securities) 

380,000,000 

90.000. 000 

80.000. 000 

550,000,000 

... 

... 

Feb. 2/93 Feb. 1/13 8.00 Semiannual U.S. GRF (Can$)... 

GRF 

292,060,000 

200,000,000* 

492,060,000 

6,046,952 
38,446,306 * 

5,979,600 


(Non-callable; $200,000,000 of the U.S. $400,000,000 debenture 
issue has been swapped to Canadian dollars with an effective interest 
rate of 7.25%; Payable in New York) 


80 


Public Accounts, 2000-01 


General Revenue Fund 

Public Issue Debentures 

Interest 

Date of Date of Rate Interest 

Issue Maturity % Payments Currency 

Purpose of 
Issue 

Amount 

Outstanding 

Total Issue 
Outstanding 

Equity of 
Applicable 
Sinking Fund 

Sinking Fund 
Contribution 
2000-01 

July 20/93 July 15/13 7.375 Semiannual U.S. 

(Non-callable; Payable in New York) 

GRF 

SaskPower.... 

225,000,000 

75,000,000 

300,000,000 * 

28,280,963 * 

4,419,300 ** 

March 14/91 April 10/14 10.25 Semiannual Can. GRF 

(Non-callable; Payable at any Canadian branch of the Royal Bank of 

Canada) 

583,916,000 

583,916,000 

82,860,039 

5,839,160 

Dec. 1/65 Dec. 1/15 5.125 Semiannual Can. GRF 

U. of S 

(Payable in blended semi-annual payments of principal and interest 
totalling $76,399.60; Payable in whole or in part any time prior to 

December 1, 2015, without penalty; Payable in Ottawa) 

1,239,089 

346,729 

1,585,818 

... 

... 

Sept. 17/96 Sept. 17/16 7.93 Semiannual Can. SaskWater 

(Canadian medium term serial note; Payable in annual instalments; 
Non-callable; Payable in Regina) 

17,812,000 

17,812,000 



Dec. 20/90 Dec. 15/20 9.375 Semiannual U.S. 

(Non-callable; Payable in New York) 

GRF 

SaskPower.... 

SaskTel 

100,000,000 

100,000,000 

100,000,000 

300,000,000 * 

28,961,837 * 

3,070,300 ** 

Feb. 26/91 Feb. 15/21 9.125 Semiannual U.S. 

(Non-callable; Payable in New York) 

GRF 

200,000,000 

200,000,000 * 

28,608,554 * 

2,999,880 ** 

Feb. 4/92 Feb. 4/22 9.60 Semiannual Can. 

(Non-callable; Payable at any Canadian branch of the Royal 
Canada) 

SaskPower.... 

SaskWater 

Bank of 

240,000,000 

15,000,000 

255,000,000 

31,276,096 

2,550,000 

July 21/92 July 15/22 8.50 Semiannual U.S. 

(Non-callable; Payable in New York) 

GRF 

SaskPower.... 

100,000,000 

200,000,000 

300,000,000 * 

33,434,103 * 

4,408,500 ** 

May 30/95 May 30/25 8.75 Semiannual Can. 

(Non-callable; Payable at any Canadian branch of the Royal 
Canada) 

SaskPower.... 
SaskEnergy... 
Bank of 

100,000,000 

75,000,000 

175,000,000 

11,101,059 

1,750,000 

Dec. 4/98 March 5/29 5.75 Semiannual Can. 

GRF 

SaskTel 

SaskEnergy... 

250,000,000 

75.000. 000 

25.000. 000 

350,000,000 

4,599,799 

3,500,000 


(Non-callable; This issue was reopened on June 14, 2000 and an 
additional $250,000,000 debentures were sold; This book-based note is 
held in the Canadian Depository for Securities) 


Details of Debentures 


81 


General Revenue Fund 

Public Issue Debentures 

Interest 

Date of Date of Rate Interest 

Issue Maturity % Payments Currency 

Purpose of 
Issue 

Amount 

Outstanding 

Total Issue 
Outstanding 

Equity of 
Applicable 
Sinking Fund 

Sinking Fund 
Contribution 
2000-01 

* Adjustment to reflect conversion of debentures and related sinking 
funds quoted in foreign currencies to Canadian dollars using the 
exchange rate in effect at March 31 , 2001 (U.S. $1 .5774) 


891,505,600 

106,011,295 


Various debentures issued to finance union hospital debt 



9,798,445,755 

154,851 

834,596,648 

64,252,992 

Total 



$9,798,600,606 

$834,596,648 

$64,252,992 


** Sinking fund contributions to U.S. dollar sinking funds are made in U.S. dollars. Contributions for general government purposes are shown 
at the cost in Canadian dollars to purchase U.S. dollars equal to the contribution amount. Contributions for Crown corporation purposes are 
converted to Canadian dollars at the U.S./Canadian exchange rate at the date the contribution was made. 


82 


Public Accounts, 2000-01 


General Revenue Fund 

Debentures Issued to the Minister of Finance of Canada 

As at March 31 , 2001 




Date of Issue 

Date of Maturity 

Interest 

Rate % 


Amount 

Outstanding 

Canada Pension Plan Investment Fund* 

April 1981 - March 1982 

April 2001 - March 2002 

15.43 

$ 

109,647,000 

April 1982 - March 1983 

April 2002 - March 2003 

14.67 


110,084,000 

April 1983 - March 1984 

April 2003 - March 2004 

11.60 


109,328,000 

April 1984- March 1985 

April 2004 - March 2005 

13.37 


104,274,000 

April 1985 - March 1986 

April 2005 - March 2006 

11.48 


112,507,000 

April 1986 - March 1987 

April 2006 - March 2007 

9.61 


133,709,000 

April 1987 - March 1988 

April 2007 - March 2008 

9.61 


88,333,000 

April 1 988 - March 1 989 

April 2008 - March 2009 

10.08 


93,932,000 

April 1989 - March 1990 

April 2009- March 2010 ** 

9.90 


101,867,000 

April 1990 - March 1991 

April 2010 -March 2011 ** 

10.85 


90,318,000 

April 1991 - March 1992 

April 2011 - March 2012 ** 

9.92 


90,664,000 

April 1992 - March 1993 

April 201 2 -March 2013 ** 

9.37 


62,705,000 

April 1999 - March 2000 

April 2019 -March 2020 ** 

6.34 


46,335,000 

April 2000 - March 2001 

April 2020 - March 2021 ** 

6.54 


75,553,000 

The Municipal Development Loan Fund 

1965 - 1967 

2005 - 2007 

5.38 


1,329,256,000 

21,923 

Agricultural Service Centres Loan Agreement 

1984 - 1985 

2003 - 2004 

12.28 


85,996 

Total 



s 

1,329,363,919 


* Canada Pension Debentures have a 20 year maturity and are redeemable in whole or in part before maturity, on six 
months prior notice at the option of the Minister of Finance of Canada. These debentures are callable in whole or in part 
before maturity, on 30 days prior notice at the option of the Minister of Finance of Saskatchewan. 

** Subject in part to annual sinking funds; equity in sinking funds at March 31 , 2001 , $42,027,225. 


Glossary of Terms 






Glossary of Terms 


85 


Glossary of Terms 

Accrual Accounting 

The method of accounting used to prepare the financial 
statements. This is the method of accounting recommended 
by the Public Sector Accounting and Auditing Board of the 
Canadian Institute of Chartered Accountants. Accrual 
accounting recognizes financial transactions at the time they 
occur, regardless of whether any cash is received or paid. 

Accumulated Deficit 

The amount by which expenditures have exceeded revenues 
from the beginning of incorporation (1905). It is the sum of all 
annua! deficits and surpluses plus any adjustments that were 
charged directly to the accumulated deficit. 

Budget 

The amount presented in the Estimates. 

Consolidation 

The method used to account for government service 
organizations in the Summary Financial Statements. The 
accounts are adjusted to the basis of accounting used by the 
General Revenue Fund and then added together. Inter-entity 
transactions are eliminated. 

Debt 

The term “debt” is used in a number of ways. 

• Debt (GRF) - the total debt issued for general government 
purposes and for Crown corporations, net of sinking funds; 

• Total Debt (GRF) - the total debt issued for general 
government purposes and for Crown corporations, net of 
sinking funds, plus guaranteed debt; 

• Public Debt (SFS) - the debt of government service 
organizations, net of sinking funds; 

• Total Public Debt (SFS) - the debt of government service 
organizations and government enterprises, net of sinking 
funds. 

• Guaranteed Debt - the debt of Crown corporations and 
others that the Government has agreed to repay if they are 
unable to do so; and, 

• Sinking Funds - the amount of money which has been set 
aside for the repayment of debt. 

Debt Reduction Account 

This account is established pursuant to The Balanced Budget 
Act. The Debt Reduction Account is an accounting of the 
accumulated surpluses of the General Revenue Fund 
commencing April 1, 1995. 

Fiscal Stabilization Fund (FSF) 

The fund established to stabilize the fiscal position of the 
Government to facilitate long term planning. Stabilization 
occurs through transfers between the FSF and the GRF. 


General Revenue Fund (GRF) 

The fund into which all revenues are paid, unless otherwise 
provided for by Legislation, and from which all expenditures 
are appropriated by the Legislative Assembly. 

General Revenue Fund Financial 
Statements 

The financial statements prepared to account for the moneys 
appropriated by the Legislative Assembly. 

Government Enterprises 

Government organizations that have the financial and 
operating authority to carry on a business. This includes 
contracting in their own name, and selling goods and services 
to individuals and non-government organizations as their 
principal activity and source of revenue. Government 
enterprises are recorded in the Summary Financial Statements 
using the modified equity method. 

Government Service Organizations 

Those organizations that are accountable to government and 
either owned or controlled by government, and are not 
government enterprises. Government service organizations 
are consolidated in the Summary Financial Statements after 
adjusting them to a basis consistent with the accounting 
policies of the GRF. 

Modified Equity 

The method by which government enterprises are included in 
the Summary Financial Statements. The Government’s 
investment, which is originally recorded at cost, is adjusted 
annually to include the net earnings/losses and other net 
equity changes of the enterprise without adjusting them to 
conform with the accounting policies of the GRF. Inter- 
organizational transactions are not eliminated. 

Pension Liability 

An actuarial estimate of discounted future payments to be 
made to retirees under Government pension plans, net of plan 
assets. 

Summary Financial Statements Reporting 
Entity 

The Summary Financial Statements reporting entity includes 
the financial activities of organizations which are accountable 
for the administration of their financial affairs and resources 
either to a Minister of the Government or directly to the 
Legislative Assembly and which are owned or controlled by the 
Government. Trusts administered by the Government are 
excluded from the reporting entity. 

Summary Financial Statements (SFS) 

The statements prepared to account for the full nature and 
extent of the financial activities authorized by the Legislative 
Assembly and administered through government departments, 
special funds, agencies and enterprises.