sah financial statements 2015

Financial Statements of

Year ended March 31, 2015

KPMG LLP Telephone (705) 949-5811 111 Elgin Street, PO Box 578 Fax (705) 949-0911 Sault Ste. Marie ON P6A 5M6 Internet www.kpmg.ca

KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

INDEPENDENT AUDITORS’ REPORT

To the Members of Sault Area Hospital

We have audited the accompanying financial statements of Sault Area Hospital, which comprise the statement of financial position as at March 31, 2015, the statements of operations, changes in net assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Sault Area Hospital as at March 31, 2015, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Other Matter

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in Schedule of Operations is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Chartered Professional Accountants, Licensed Public Accountants

June 11, 2015

Sault Ste Marie, Canada

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SAULT AREA HOSPITAL Statement of Financial Position March 31, 2015, with comparative information for 2014

2015 2014

Assets Current assets:

Cash $ 25,982,513 $ 25,200,351 Accounts receivable (note 2) 7,659,324 12,944,497 Inventories 1,218,135 1,142,748 Prepaid expenses 970,041 515,051

35,830,013 39,802,647 Long-term receivables (note 3) 200,000 500,000

Restricted investments (note 4) 4,642,603 4,021,955

Capital assets (note 5) 316,067,144 326,404,196

$ 356,739,760 $ 370,728,798

Liabilities, Deferred Capital Contributions and Deficiency in Assets Current liabilities:

Accounts payable and accrued liabilities (note 7) $ 46,733,253 $ 43,230,927 Current portion of long-term obligations (note 8) 6,402,915 5,360,590

53,136,168 48,591,517 Deferred capital contributions (note 9) 106,745,795 114,859,228 Long-term obligations:

Long-term debt (note 8) 219,467,883 226,010,796 Employee future benefits (note 10) 7,984,600 7,884,800

227,452,483 233,895,596

Total liabilities 387,334,446 397,346,341 Deficiency in net assets (30,594,686) (26,617,543) Contingencies (note 13) Commitments (note 14)

$ 356,739,760 $ 370,728,798

See accompanying notes to financial statements. Approved by the Board:

______________________________ Director ______________________________ Director

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SAULT AREA HOSPITAL Statement of Operations Year ended March 31, 2015, with comparative information for 2014

2015 2014

Revenue: Ministry of Health and Long-Term Care (“MOHLTC”):

LHIN based allocation $ 138,692,252 $ 139,502,925 One-time hospital grants 10,075,539 9,380,111 Cancer Care Ontario funding 15,288,163 12,012,532

164,055,954 160,895,568 Other revenue:

Patient revenue 9,345,027 8,753,023 Differential and co-payment 3,059,484 2,875,409 Recoveries and miscellaneous 9,592,057 11,417,306 Amortization of deferred capital contributions - equipment 4,804,131 4,748,708

190,856,653 188,690,014

Expenses: Compensation and benefits 122,596,923 115,834,827 Supplies and other 24,321,168 27,047,814 Medical staff remuneration 14,817,534 14,462,549 Medical and surgical supplies 12,177,962 12,498,274 Drugs and medical gases 9,287,411 8,959,296 Amortization of capital assets - equipment 6,284,082 6,394,808 Interest 192,286 1,104,520 Rental and lease of equipment 736,096 713,523 Bad debts 142,550 77,947

190,556,012 187,093,558

Excess of revenue over expenses from Hospital operations 300,641 1,596,456

Working capital relief funding – 14,822,100

MOHLTC PCOP reconciliation adjustment – 6,517,681

Excess of revenue over expenses before undernoted 300,641 22,936,237

Interest and amortization of building and service equipment and deferred contributions:

Recovery of interest and principal on long-term obligation 21,038,083 20,858,392

Interest on long-term obligation (18,472,650) (18,457,297) Amortization of deferred capital contributions 1,046,063 1,049,175 Amortization of building and service equipment (7,889,280) (7,574,605)

Excess (deficiency) of revenue over expenses $ (3,977,143) $ 18,811,902

See accompanying notes to financial statements.

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SAULT AREA HOSPITAL Statement of Changes in Net Assets Year ended March 31, 2015, with comparative information for 2014

2015 2014

Deficiency in net assets, beginning of year $ (26,617,543) $ (45,429,445) Excess (deficiency) of revenue over expenses (3,977,143) 18,811,902 Deficiency in net assets, end of year $ (30,594,686) $ (26,617,543) See accompanying notes to financial statements.

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SAULT AREA HOSPITAL Statement of Cash Flows Years ended March 31, 2015 with comparative information for 2014

2015 2014

Cash flows from operating activities: Excess (deficiency) of revenue over expenses $ (3,977,143) $ 18,811,902 Items not involving cash:

Amortization of capital assets 14,173,362 13,969,413 Amortization of deferred capital contributions (5,850,194) (5,797,883)

Changes in non-cash working capital balances: Decrease (increase) in accounts receivable 5,285,172 (567,299) Increase in inventories (75,387) (95) Increase in prepaid expenses (454,990) (213,819) Increase (decrease) in accounts payable

and accrued liabilities 3,502,327 (7,539,899) Accrual for employee future benefits 99,800 269,400

12,702,947 18,931,720 Cash flows from capital activities:

Purchase of capital assets (3,955,751) (2,246,278) Disposal of deferred capital contributions (2,764,445) (3,034,894)

(6,720,196) (5,281,172) Cash flows from financing activities:

Additions to long-term debt – 7,108,078 Principal payments on long-term debt (5,500,588) (11,557,417)

(5,500,588) (4,449,339) Cash flows from investing activities:

Net decrease in long-term receivables 300,000 100,000

Increase in cash position 782,163 9,301,209

Cash, beginning of year 25,200,351 15,899,142

Cash, end of year $ 25,982,513 $ 25,200,351


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SAULT AREA HOSPITAL Notes to Financial Statements Year ended March 31, 2015

Sault Area Hospital (the “Hospital”) was incorporated by amended letters patent under the Ontario Business Corporations Act on April 26, 2003.

The Hospital is principally involved in providing health care services to Sault Ste. Marie and the surrounding area. The Hospital is a registered charity under the Income Tax Act and as a result is exempt from income taxes under section 149 of the Income Tax Act.

1. Significant accounting policies:

The financial statements have been prepared by management in accordance with Canadian public sector accounting standards including the 4200 standards for government not-for-profit organizations.

a) Revenue recognition:

The Hospital follows the deferral method of accounting for contributions that include donations and government grants.

The Hospital is primarily funded by the Province of Ontario in accordance with budget arrangements established by the Ministry of Health and Long-Term Care (MOHLTC).

Operating grants are recorded as revenue in the period to which they relate. Grants approved but not received at the end of an accounting period are accrued. Where a portion of a grant relates to a future period, it is deferred and recognized in that subsequent period. These financial statements reflect arrangements with the MOHLTC with respect to the year ended March 31, 2015.

Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Externally restricted contributions are recognized as revenue in the year in which the related expenses are recognized. Contributions restricted for the purchase of capital assets, including restricted cash, are deferred and amortized into revenue on a straight-line basis at a rate corresponding with the amortization rate for the related capital assets.

Revenue from the insurance plans, preferred accommodation and marketed services is recognized when the goods are sold or the service is provided, the amounts can be reasonably estimated and collection is reasonably assured.

b) Inventories:

Inventories are recorded at the lower of average cost and net realizable value. Cost comprises all costs to purchase, convert and any other costs incurred in bringing the inventories to their present location and condition.

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1. Significant accounting policies (continued):

c) Capital assets:

Capital assets are recorded at cost. Assets are amortized over their estimated useful lives using the following rates on a straight-line basis:

Building and improvements 2.5% to 5% Building service equipment 5% to 10% Equipment 5% to 33% Computer equipment 20% to 33% Computer software 10%

Tangible capital assets that are not subject to amortization and received as restricted contributions are recorded at their fair value as a direct increase in net assets at the date of receipt.

Construction in progress is not amortized until construction is complete and the facilities are placed into use.

d) Contributed services:

A substantial number of volunteers contribute a significant amount of their time each year. Because of the difficulty of determining the fair value, contributed services are not recognized in the financial statements.

e) Employee future benefits:

The Hospital accrues its obligations for employee benefit plans. The cost of non-pension post-retirement and post-employment benefits earned by employees is actuarially determined using the projected benefit method pro-rated on service and management’s best estimate of retirement ages of employees and expected health care costs

Actuarial gains (losses) on the accrued benefit obligation arise from changes in actuarial assumptions used to determine the accrued benefit obligation. The net accumulated actuarial gains (losses) are amortized over the average remaining service period of active employees. The average remaining service period of the active employees covered by the employee benefit plan is 11 years.

Past service costs arising from plan amendments are recognized immediately in the period the plan amendments occur.

The Hospital is an employer member of the Health Care of Ontario Pension Plan (the “Plan”), which is a multi-employer, defined benefit pension plan. The Hospital has adopted defined contribution plan accounting principles for this Plan because insufficient information is available to apply defined benefit plan accounting principles. The Hospital records as pension expense the current service cost, amortization of past service costs and interest costs related to the future employer contributions to the Plan for past employee service.

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1. Significant accounting policies (continued):

f) Use of estimates:

The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the carrying amount of capital assets; valuation of receivables, inventories; and obligations related to employee future benefits. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in operations in the year in which they are known.

g) Financial instruments

Financial instruments are recorded at fair value on initial recognition. Derivative instruments and equity instruments that are quoted in an active market are reported at fair value. All other financial instruments are subsequently recorded at cost or amortized cost unless management has elected to carry the instruments at fair value. Management has elected to record all investments at fair value as they are managed and evaluated on a fair value basis.

Unrealized changes in fair value are recognized in the statement of remeasurement gains and losses until they are realized, when they are transferred to the statement of operations.

Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight-line method.

All financial assets are assessed for impairment on an annual basis. When a decline is determined to be other than temporary, the amount of the loss is reported in the statement of operations and any unrealized gain is adjusted through the statement of remeasurement gains and losses.

When the asset is sold, the unrealized gains and losses previously recognized in the statement of remeasurement gains and losses are reversed and recognized in the statement of operations.

Long-term debt is recorded at cost.

h) Funding adjustments:

The Hospital receives grants from the MOHLTC and the North East Local Health Integration Network (NELHIN) for specific services. Pursuant to the related agreements, if the Hospital does not meet specified levels of activity, the MOHLTC or NELHIN is entitled to seek refunds. Should any amounts become refundable, the refunds would be charged to operations in the period in which the refund is determined to be payable. Should programs and activities incur a deficit, the Hospital records any recoveries thereon in the period in which collection is received.

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2. Accounts receivable:

2015 2014

North East Local Health Integration Network/ Ministry of Health and Long-Term Care $ 3,909,322 $ 8,222,870

Patients and clients 1,799,647 2,029,292 Cancer Care Ontario 6,781 89,340 Canada Revenue Agency 474,129 808,489 Current portion of long-term receivables 300,000 200,000 Other 1,277,746 2,089,382

7,767,625 13,439,373

Less allowance for doubtful accounts (108,301) (494,876)

$ 7,659,324 $ 12,944,497

3. Long term receivables:

2015 2014

Physician loans receivable $ 500,000 $ 700,000 Less current portion (300,000) (200,000)

Balance, end of year $ 200,000 $ 500,000

4. Restricted investments:

Restricted investments reflect the investment of unused contributions received from the Province of Ontario and other sources, restricted for the new Hospital, and interest earned on those contributions.

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5. Capital assets:

Accumulated Net book 2015 Cost Amortization Value

Land $ 1,901,214 $ – $ 1,901,214 Building 315,343,988 32,190,922 283,153,066 Building improvements 6,444 2,247 4,197 Building service equipment 31,449 (14,447) 17,002 Equipment 68,559,014 46,748,593 21,810,421 Computer software 16,056,604 9,977,971 6,078,633 Computer equipment 3,301,869 2,989,953 311,916 Construction in progress 2,790,695 – 2,790,695

$ 407,991,277 $ 91,924,133 $ 316,067,144

Accumulated Net book 2014 Cost Amortization Value

Land $ 1,901,214 $ – $ 1,901,214 Building 315,343,988 24,307,310 291,036,678 Building improvements 6,444 1,601 4,843 Building service equipment 31,449 8,779 22,670 Equipment 65,997,589 42,462,091 23,535,498 Computer software 16,057,515 8,746,476 7,311,039 Computer equipment 3,301,869 2,879,236 422,633 Construction in progress 2,169,621 – 2,169,621

$ 404,809,689 $ 78,405,493 $ 326,404,196

6. Operating credit facility:

The operating credit facility is authorized to a maximum of $15,000,000 (2014 - $15,000,000), is repayable on demand, has interest calculated at bank prime minus 0.75% and is secured by a borrowing resolution. At March 31, 2015, the Hospital had $15,000,000 (2014 - $15,000,000) available on this credit facility.

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7. Accounts payable and accrued liabilities:

Accounts payable and accrued liabilities consist of:

2015 2014

Trade payables $ 4,558,245 5,205,104 Salaries and deductions payable 6,239,895 5,770,990 Accrued vacation and sick time payable 7,320,004 7,267,938 Accrued liabilities 18,056,242 16,246,306 Other liabilities 10,558,867 8,740,589

Balance, end of year $ 46,733,253 43,230,927

Included in salary and deductions payable are $1,421,987 (2014 - $1,304,353) relating to government remittances.

8. Long-term obligations:

2015 2014

Hospital Obligation, due October 13, 2040, monthly payments of $1,633,445, interest only until September 2011 at 8.59%, thereafter monthly payments of $1,620,276 including principal and interest at 7.74% secured by the Hospital Development Agreement $ 218,041,502 $ 220,664,607

Long-term credit facility, due August 5, 2015, variable principal payment at bank prime less 0.25%, secured by borrowing resolution 693,917 833,917

Long-term credit facility, due January 25, 2017, monthly principal repayment of $63,670 and interest at bank prime less 0.75%, secured by borrowing resolution 1,400,742 2,164,784

Term loan, due January 9, 2018 interest at 2.13%, payable $158,789 monthly including interest 5,234,637 7,008,078

Revolving term loans, with varying maturities ranging from May 16, 2012 to January 13, 2016, interest only payments at bank prime less 0.25%, secured by borrowing resolution 500,000 700,000

225,870,798 231,371,386

Current portion of long-term obligations (6,402,915) (5,360,590)

$ 219,467,883 $ 226,010,796

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8. Long-term obligations (continued):

The revolving term loan facility of $500,000 is repayable 48 months from the date of draw down.

The Hospital has an available $1million term facility which is not drawn upon at March 31, 2015 (2014 - $1,400,000). The Hospital can access this facility with multiple draws which are repayable quarterly after each draw over a period of four years. Interest can be at a fixed rate or variable rate at the time of the draw. The facility is secured by a borrowing resolution.

Principal due within each of the next five years on the long-term debt is as follows:

2016 $ 5,848,998 2017 5,787,740 2018 5,118,306 2019 3,845,298 2020 3,857,024 Thereafter 201,413,432

$ 225,870,798

Hospital Obligation:

The financial statements reflect an obligation associated with the construction of the hospital which will be fully extinguished in October 2040. On August 7, 2007, the Hospital entered into a Development Accountability Agreement with the MOHLTC to support the implementation of the Sault Area Hospital Project. The funding of the total construction costs and related obligation are shared between the MOHLTC at approximately 90% and the Hospital at approximately 10%. The Hospital paid its full obligation at substantial completion in October 2010 and the MOHLTC’s obligation, consisting of principal and interest, is to be paid over the remaining term which ends October 2040. Annual funding from the MOHLTC is conditional upon an appropriation of funds by the Legislature of Ontario in the fiscal year in which the payment becomes due.

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9. Deferred capital contributions:

Deferred capital contributions represent the unamortized amount received for the purchase of capital assets and consist of the following:

2015 2014

Hospital development $ 4,642,603 $ 4,021,955 Capital assets 102,103,192 110,837,273

$ 106,745,795 $ 114,859,228

The changes in the deferred contributions balance are as follows:

Hospital development:

2015 2014

Balance, beginning of year $ 4,021,955 $ 2,450,188

Income 56,905 41,874 Contributions received 563,743 2,100,000 Used for hospital development – (570,107)

Balance, end of year $ 4,642,603 $ 4,021,955

Capital assets:

2015 2014

Balance, beginning of year $ 110,837,273 $ 121,724,301

Additional contributions 18,273,638 17,703,109 Amounts recognized in revenue (21,038,083) (20,858,392) Less amounts amortized to revenue (5,850,194) (5,797,883) Less transfers and disposals (119,442) (1,933,862)

Balance, end of year $ 102,103,192 $ 110,837,273

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10. Employee future benefits:

The Hospital provides extended health care, dental and semi-private benefits to certain employees.

Information about the Hospital’s benefit plan is as follows:

2015 2014

Accrued benefit obligation $ 8,654,200 $ 7,630,700 Unamortized actuarial gains (losses) (669,600) 254,100

Employee future benefit liability $ 7,984,600 $ 7,884,800

The significant actuarial assumptions adopted in estimating the Hospital’s accrued benefit obligations are as follows:

Discount rate 3.0% Dental benefits cost escalation 4.0% Medical benefits costs escalation - extended health care 7.8%

Included in compensation and benefits on the statement of operations, is an amount of $99,800 (2014 - $269,400) regarding employee future benefits and is comprised of:

2015 2014

Current service cost $ 343,000 $ 378,300 Interest cost 308,200 318,500 Amortization of actuarial losses (11,700) 70,700

639,500 767,500

Less payments made (539,700) (498,100)

$ 99,800 $ 269,400

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11. Pension plan:

Employees of the Hospital are eligible to be members of the Hospitals of Ontario Pension Plan (the “Plan”) which is a multi-employer defined benefit pension plan. Contributions to the Plan made during the year on behalf of the employees amounted to $7,748,319 (2014 - $7,438,397) and are included in the statement of operations.

12. Economic interest:

The Hospital has an economic interest in the Sault Area Hospital Foundation. The Foundation was established to solicit funds on behalf of the Hospital. All of the Foundation’s net assets must be provided to the Hospital or used for the Hospital's benefit. The Foundation has net assets totaling $5,276,506 (2014 - $4,853,975) for the benefit of the Hospital.

13. Contingencies:

(a) Legal matters and litigation:

The Hospital is involved in certain legal matters, litigation and disputes, the outcomes of which are not presently determinable. The loss, if any, from these contingencies will be accounted for in the periods in which the matters are resolved. Management is of the opinion that these matters are mitigated.

(b) Employment matters:

During the normal course of operation, the Hospital is involved in certain employment related negotiations and has recorded accruals based on management’s estimate of potential settlement amounts where these amounts are reasonably determinable.

14. Commitments:

The Hospital signed an agreement with Hospital Infrastructure Partners (Sault), to build, maintain and finance the new Sault Area Hospital facility. Construction commenced in August 2007 with substantial completion on October 13, 2010 at which time the 30 year agreement commenced.

For the term of the agreement variable monthly payments in excess of $300,000 will be paid to cover facility maintenance and various lifecycle costs. A portion of the payments are indexed and escalate as per the agreement.

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15. Other votes and other funding sources:

The Hospital administers a number of independent programs on behalf of the MOHLTC and other agencies. These programs which provide separate and distinct funding for specific mandates and expenditures are limited to the amount of grant provided. Grants are recognized for specified levels of activity and any amounts to be returned to the Ministry are reflected in current liabilities. Expenditures in excess of the grants provided are the responsibility of the Hospital.

The Hospital participated in a physician recruitment program in partnership with the City of Sault Ste. Marie and the Group Health Centre. The net expenditure for the year represents the Hospital’s contribution to administrative costs of this program.

French Language Services provided revenues of $135,868 (2014 - $142,374) with offsetting expenses of $135,868 (2014 - $142,374).

16. Financial risks and concentration of credit risk:

(a) Credit risk:

Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss. The Hospital is exposed to credit risk with respect to accounts receivable and other investments.

The Hospital assesses, on a continuous basis, accounts receivable and provides for any amounts that are not collectible in the allowance for doubtful accounts. The maximum exposure to credit risk of the Hospital at March 31, 2015 is the carrying value of these assets.

The carrying amount of accounts receivable is valued with consideration for an allowance for doubtful accounts. The amount of any related impairment loss is recognized in the consolidated statement of operations. Subsequent recoveries of impairment losses related to accounts receivable are credited to the consolidated statement of operations. The balance of the allowance for doubtful accounts at March 31, 2015 is $108,301 (2014 - $494,876).

As at March 31, 2015, $7,659,324 (2014 - $12,944,497) of accounts receivable were not impaired.

The Hospital follows an investment policy approved by the Board of Directors. The maximum exposure to credit risk of the Hospital at March 31, 2015 is the carrying value of these assets.

There have been no significant changes to the credit risk exposure from 2014.

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16. Financial risks and concentration of credit risk (continued)

(b) Liquidity risk:

Liquidity risk is the risk that the Hospital will be unable to fulfill its obligations on a timely basis or at a reasonable cost. The Hospital manages its liquidity risk by monitoring its operating requirements. The Hospital prepares budget and cash forecasts to ensure it has sufficient funds to fulfill its obligations.

Accounts payable and accrued liabilities are generally due within 60 days of receipt of an invoice.

There have been no significant changes to the liquidity risk exposure from 2014.

17. Adoption of new accounting policy:

The Hospital adopted Public Sector Accounting Board Standard PS 3260 – Liability for Contaminated Sites effective April 1, 2014. Under PS 3260, contaminated sites are defined as the result of contamination being introduced in air, soil, water or sediment of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard. This Standard relates to sites that are not in productive use and sites in productive use where an unexpected event resulted in contamination. The Hospital adopted this standard on a retroactive basis and there were no adjustments as a result of the adoption of this standard.

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SAULT AREA HOSPITAL Schedule of Operations Year ended March 31, 2015, with comparative information for 2014

Hospital Other Other Total Total Operations Votes Funded 2015 2014

Revenue: Ministry of Health and Long-Term Care:

Base funding $ 128,417,120 9,787,350 487,782 138,692,252 139,502,925 One-time hospital grants 10,066,065 9,474 – 10,075,539 9,380,111 Cancer care Ontario funding 15,288,163 – – 15,288,163 12,012,532

153,771,348 9,796,824 487,782 164,055,954 160,895,568

Other revenue: Patient 9,345,027 – – 9,345,027 8,753,023 Differential and co-payment 3,059,484 – – 3,059,484 2,875,409 Recoveries and miscellaneous 9,208,538 235,325 148,194 9,592,057 11,417,306 Amortization of deferred capital contributions 4,803,070 1,061 – 4,804,131 4,748,708

180,187,467 10,033,210 635,976 190,856,653 188,690,014

Expenses: Compensation and benefits 114,317,804 7,717,795 561,324 122,596,923 115,834,827 Supplies and other 22,286,022 1,962,087 73,059 24,321,168 27,047,814 Medical staff remuneration 14,159,030 658,504 – 14,817,534 14,462,549 Medical and surgical supplies 12,172,628 4,716 618 12,177,962 12,498,274 Interest 9,285,479 1,190 742 9,287,411 1,104,520 Drugs and medical gases 6,282,788 1,061 233 6,284,082 8,959,296 Amortization of capital assets 192,286 – – 192,286 6,394,808 Rental and lease of equipment 697,196 38,900 – 736,096 713,523 Bad debts 142,550 – – 142,550 77,947

179,535,783 10,384,253 635,976 190,556,012 187,093,558

Excess (deficiency) of revenue over expenses 651,684 (351,043) – 300,641 1,596,456 Working capital relief funding – – – – 14,822,100 MOHLTC PCOP reconciliation adjustment – – – – 6,517,681

Excess (deficiency) of revenue over expenses before undernoted 651,684 (351,043) – 300,641 22,936,237

Interest and amortization of building and service

equipment and deferred contributions: Recovery of interest and principal on

long-term obligation 21,038,083 – – 21,038,083 20,858,392 Interest on long-term obligation (18,472,650) – – (18,472,650) (18,457,297) Amortization of deferred

capital contributions 1,046,063 – – 1,046,063 1,049,175 Amortization of building and

service equipment (7,889,280) – – (7,889,280) (7,574,605)

Excess (deficiency) of revenue over expenses $ (3,626,100) (351,043) – (3,977,143) 18,811,902


sah financial statements 2015

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