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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/30/22 Saskatchewan Province Of 18-K 3/31/22 5:4.9M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size
1: 18-K Annual Report by a Foreign Government or Political HTML 36K
Subdivision
2: EX-99.1 Miscellaneous Exhibit HTML 1.33M
3: EX-99.2 Miscellaneous Exhibit HTML 1.50M
4: EX-99.4 Miscellaneous Exhibit HTML 184K
5: EX-99.5 Miscellaneous Exhibit HTML 311K
| EX-99.2 |
Exhibit 99.2
2021-22 Public Accounts of Saskatchewan
Volume 1
Contents
| 3 |
Letters of Transmittal | |
| 4 |
Introduction to the Public Accounts | |
| Financial Statement Discussion and Analysis | ||
| 7 |
Highlights | |
| 13 |
Assessment of Fiscal Health | |
| 18 |
Details | |
| 37 |
Risks and Uncertainties | |
| Summary Financial Statements | ||
| 41 |
Responsibility for the Summary Financial Statements | |
| 43 |
Independent Auditor’s Report | |
| 45 |
Statement of Financial Position | |
| 46 |
Statement of Operations | |
| 47 |
Statement of Accumulated Deficit | |
| 47 |
Statement of Change in Net Debt | |
| 48 |
Statement of Cash Flow | |
| 49 |
Notes to the Financial Statements | |
| Schedules to the Financial Statements | ||
| 62 |
Accounts Receivable | |
| 63 |
Loans Receivable | |
| 64 |
Investment in Government Business Enterprises | |
| 66 |
Other Investments | |
| 67 |
Accounts Payable and Accrued Liabilities | |
| 67 |
Unearned Revenue | |
| 68 |
Pension Liabilities | |
| 69 |
Public Debt | |
| 71 |
Sinking Funds | |
| 72 |
Obligations Under Long-Term Financing Arrangements | |
| 73 |
Other Liabilities | |
| 74 |
Tangible Capital Assets | |
| 75 |
Inventories Held for Consumption | |
| 76 |
Revenue | |
| 77 |
Expense by Object | |
| 77 |
Financing Charges | |
| 78 |
Segmented Reporting | |
| 80 |
Supplemental Cash Flow Information | |
| 81 |
Government Reporting Entity | |
| 84 |
Glossary of Terms | |
Letters of Transmittal
Regina, Saskatchewan
June 2022
To His Honour
The Honourable Russell B. Mirasty
Lieutenant Governor of Saskatchewan
Your Honour:
I have the honour to submit Volume 1 of the Public Accounts of the Government of Saskatchewan for the fiscal year ended March 31, 2022.
Respectfully submitted,
DONNA HARPAUER
Deputy Premier and
Minister of Finance
Regina, Saskatchewan
June 2022
The Honourable Donna Harpauer
Deputy Premier and
Minister of Finance
We have the honour to present Volume 1 of the Public Accounts of the Government of Saskatchewan for the fiscal year ended March 31, 2022.
Respectfully submitted,
|
| |
| RUPEN PANDYA | TERRY PATON | |
| Deputy Minister of Finance | Provincial Comptroller | |
Government of Saskatchewan Public Accounts 2021-22 3
Introduction to the Public Accounts
Introduction to the Public Accounts
The 2021-22 Public Accounts of the Government of Saskatchewan (the Government) are prepared in accordance with the Financial Administration Act, 1993 and consist of two volumes. The Government is responsible for the integrity and objectivity of the information presented in these two volumes.
Volume 1
Financial Statement Discussion and Analysis provides users of the Government’s Summary Financial Statements with an overview of the Government’s performance by presenting comparative financial highlights and variance analysis. The information in the financial statement discussion and analysis should be read in conjunction with the Summary Financial Statements.
Summary Financial Statements provide an accounting of the full nature and extent of the financial affairs and resources of the Government. This includes the financial results of the General Revenue Fund, Crown corporations, boards and other entities controlled by the Government. A listing of all entities controlled by the Government, collectively referred to as the government reporting entity, is provided in schedule 19 of the Summary Financial Statements.
Volume 2
Volume 2 contains the following unaudited financial information:
| • | General Revenue Fund schedules and details; |
| • | General Revenue Fund capital asset acquisitions schedule and details; |
| • | revolving fund expenditure details; |
| • | summary listing of payees who provided goods and services and capital assets of $50,000 or more to the General Revenue Fund and revolving funds during the fiscal year; |
| • | assets, liabilities and residual balances of pension plans and trust funds administered by the Government; |
| • | remissions of taxes and fees; and |
| • | road-use fuel tax accountability revenues and expenditures. |
The Public Accounts, including the Compendiums, are available on the Government of Saskatchewan’s website.
The Compendium of Financial Statements contains the financial statements of various government agencies, boards, commissions, pension plans, special purpose funds and institutions, as well as Crown corporations which are accountable to Treasury Board.
The Compendium of Payee Details contains the payee details of all Summary Financial Statement entities, except Crown Investments Corporation of Saskatchewan and its subsidiaries.
In addition, the financial statements and payee details of Crown corporations and wholly-owned subsidiaries that are accountable to the Crown Investments Corporation of Saskatchewan (CIC) Board can be found on CIC’s website.
4 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Financial Statement Discussion and Analysis
Financial Statement Discussion and Analysis
Highlights
Introduction
The Financial Statement Discussion and Analysis (FSD&A) provides an overview of the Government’s financial performance and information to report on the Government’s accountability for the resources entrusted to it. The FSD&A is intended to assist users of the Summary Financial Statements (SFS) in their assessment of the Government’s fiscal health. The Government is responsible for the integrity and objectivity of this discussion and analysis.
This information should be read in conjunction with the SFS which include the financial activities of all government-controlled entities, collectively referred to as the government reporting entity. A complete listing of the public sector entities included in the government reporting entity is provided in schedule 19 of the SFS.
Financial Results
In 2021-22, the Government reported a deficit of $1.47 billion, $341 million greater than the deficit reported in the prior year, but $1.14 billion less than the budgeted deficit. Post-COVID economic recovery together with a significant improvement in natural resources revenue mostly offset the negative impact that province-wide drought conditions had on the Government’s fiscal results for the year.
Overall revenue was greater than both the prior year and budget with a $3.61 billion and $3.66 billion increase over the prior year and budget respectively. Revenue increased across all sources except for net income from Government Business Enterprises (GBEs) with significant increases in non-renewable resources and taxation revenues resulting primarily from the post-COVID economic recovery and recent global events upward pressure on commodity prices.
Total expenses for the year was higher than both the prior year and budget with a $3.95 billion and $2.52 billion increase over the prior year and budget respectively. Agriculture expense saw the most significant increase over both prior year and budget as drought conditions across the province resulted in record crop insurance claim payouts for poor crop quality and low yields. Health expense increased over both prior year and budget due to continued spending on COVID-related operating and other costs. There was also a budgeted increase in pension expense, primarily for changes in actuarial assumptions, that significantly impacted the year-over-year increase in total expenses.
The Government continued to invest in the Province’s infrastructure, with significant investment in electricity generation, transmission and distribution assets, in communication networks as well as in investments through the Saskatchewan Capital Plan. The $2.39 billion capital investment during 2022 will provide stimulus funding to strengthen the post-COVID economy, help the Government meet the challenges of a growing province and improve safety.
The Government’s overall financial position as at March 31, 2022 is an accumulated deficit of $2.83 billion.
Government of Saskatchewan Public Accounts 2021-22 7
Financial Statement Discussion and Analysis
Highlights
At a Glance
Financial Results
(millions of dollars)
| 2022 | 2021 | Increase (Decrease) from |
||||||||||||||||||
| Budget | Actual | Actual | Budget | 2021 Actual |
||||||||||||||||
| Revenue |
14,478 | 18,136 | 14,524 | 3,658 | 3,612 | |||||||||||||||
| Expense |
17,089 | 19,604 | 15,651 | 2,515 | 3,954 | |||||||||||||||
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| Deficit |
(2,611 | ) | (1,468 | ) | (1,127 | ) | (1,143 | ) | 341 | |||||||||||
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| Net Debt |
(16,755 | ) | (15,488 | ) | (13,683 | ) | (1,267 | ) | 1,805 | |||||||||||
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| Accumulated Deficit |
(3,979 | ) | (2,832 | ) | (1,368 | ) | (1,146 | ) | 1,465 | |||||||||||
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Totals may not add due to rounding.
8 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Highlights
(Deficit) Surplus
The (deficit) surplus represents the amount by which (expense exceeds revenue) revenue exceeds expense for the fiscal period.
| (Deficit) Surplus
(millions of dollars)
|
The 2022 SFS report a deficit of $1.47 billion, $341 million greater than the $1.13 billion deficit reported in the previous year. The year-over-year increase in deficit is mainly attributable to an overall increase in expenses offset partially by an overall increase in revenue. Notable increases in expenses are experienced in the agriculture, health, education, environment and natural resources and protection of persons and property themes. All revenue categories except for net income from GBEs increased over the prior year. Notable increases in revenue include non-renewable resources and taxation revenues.
Compared to the budget, the deficit is $1.14 billion lower than expected. The improvement over budget is mainly attributable to higher-than-budgeted revenue offset partially by higher-than-budgeted expenses. All revenue categories are greater-than-budgeted except for net income from GBEs. Agriculture, health, protection of persons and property and transportation expense themes exceeded budget while all other expense themes are less-than-budgeted. |
Accumulated (Deficit) Surplus
An accumulated (deficit) surplus represents a government’s reported net economic (shortfall) resources. An accumulated (deficit) surplus indicates that a government (requires) has additional resources to provide future services.
| Accumulated (Deficit) Surplus
(billions of dollars)
|
At March 31, 2022, the Government reported an accumulated deficit of $2.83 billion, a $1.46 billion increase from the previous year’s accumulated deficit. The accumulated deficit is $1.15 billion lower than budgeted. The increase over the prior year is mainly due to the $1.47 billion deficit. The decrease from budget is mainly the result of the lower-than-budgeted deficit. |
Government of Saskatchewan Public Accounts 2021-22 9
Financial Statement Discussion and Analysis
Highlights
Net Debt
Net debt provides a measure of the future revenue that is required to pay for past transactions and events.
| Net Debt
(billions of dollars)
|
The net debt at March 31, 2022 is $15.49 billion, an increase of $1.81 billion over the prior year. This year- over-year increase is primarily due to the deficit and net acquisition of tangible capital assets reported in the current year.
Net debt is $1.27 billion less than budgeted, primarily due to the lower- than-expected deficit reported in the current year. |
The net debt of the SFS is:
| • | the accumulated (deficit) surplus, representing the extent to which past (expenses) revenues have exceeded past (revenue) expenses; and |
| • | the investment in non-financial assets, primarily representing the Government’s investment in highways and health care and educational facilities. |
Net Debt Components
(millions of dollars)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||||||||||||||||||
| Accumulated (deficit) surplus |
2,449 | 3,469 | 3,074 | 1,495 | 372 | 176 | 155 | (191 | ) | (1,368 | ) | (2,832 | ) | |||||||||||||||||||||||||||
| Investment in non-financial assets |
(7,558 | ) | (8,085 | ) | (8,626 | ) | (9,394 | ) | (10,564 | ) | (11,464 | ) | (11,984 | ) | (12,098 | ) | (12,315 | ) | (12,656 | ) | ||||||||||||||||||||
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| Net Debt |
(5,109 | ) | (4,615 | ) | (5,552 | ) | (7,899 | ) | (10,192 | ) | (11,288 | ) | (11,829 | ) | (12,289 | ) | (13,683 | ) | (15,488 | ) | ||||||||||||||||||||
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Totals may not add due to rounding.
10 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Highlights
Investment in Infrastructure
The Government invests in infrastructure by:
| • | investing in government-owned capital; and |
| • | providing transfers to third parties, including municipalities and universities, for capital purposes. |
| Investment in Infrastructure
(billions of dollars)
|
During 2021-22, the Government invested $2.39 billion in government- owned infrastructure: $1.44 billion for GBEs to build new and maintain existing infrastructure; and $949 million to meet the capital requirements of government service organizations (GSOs). In addition, $443 million was provided to third parties to fund their capital needs.
Investment in government-owned infrastructure is down from the average of the previous nine years of $2.82 billion and is $274 million less than budgeted. |
Impact of COVID-19 Pandemic
During 2021-22, the provincial state of emergency and public health measures related to the COVID-19 pandemic were lifted. The global outlook tied to the pandemic continues to be uncertain, particularly with the challenges of new variants, inflationary pressures and supply chain disruptions. While Saskatchewan showed a strong recovery from the economic fallout of the pandemic, the impact of COVID-19 is ongoing and its effect on future results cannot be reasonably determined at this time.
Government of Saskatchewan Public Accounts 2021-22 11
Financial Statement Discussion and Analysis
Highlights
Credit Rating
| Credit Ratings – March 2022 |
|
The Province obtains a credit | ||||||||
| Rating Agency1 | ||||||||||
| Jurisdiction |
Moody’s Investors Service Inc. |
Standard & Poor’s |
DBRS Morningstar | |||||||
| British Columbia |
Aaa | AA+ | AA (high) | |||||||
| Alberta |
Aa3 | A | AA (low) | |||||||
| Saskatchewan |
Aa1 | AA | AA (low) | |||||||
| Manitoba |
Aa2 | A+ | A(high) | |||||||
| Ontario |
Aa3 | A+ | AA (low) | |||||||
| Quebec |
Aa2 | AA- | AA (low) | |||||||
| New Brunswick |
Aa2 | A+ | A(high) | |||||||
| Nova Scotia |
Aa2 | AA- | A(high) | |||||||
| Prince Edward Island |
Aa2 | A | A | |||||||
| Newfoundland & Labrador |
A1 (neg) | A(neg) | A(low) | |||||||
Ratings reflect the latest credit ratings available at March 31, 2022.
| 1 | The rating agencies assign letter ratings to borrowers. The major A bracket categories, in descending order of credit quality, are: AAA/Aaa; AA/Aa; A. The ‘1’, ‘2’, ‘3’, ‘high’, ‘low’, ‘-’, and ‘+’ modifiers show relative standing within the major categories with (pos)/(neg) representing a positive/negative outlook or trend. For example, AAA exceeds AA, Aa1 exceeds Aa2 and AA exceeds AA-. |
12 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Assessment of Fiscal Health
A government’s fiscal management can be gauged through an assessment of its fiscal health in the context of the overall economic and financial environment. Fiscal health describes a government’s ability to meet its existing financial obligations, both with respect to its service commitments to the public and its financial commitments to creditors, employees and others. The assessment of the Government’s fiscal health considers the three elements of sustainability, flexibility and vulnerability on the basis of the following indicators:
Sustainability
| • | Accumulated (deficit) surplus to the Province’s GDP |
| • | Net debt to the Province’s GDP |
| • | Net debt to total revenue |
| • | Net debt per capita |
Flexibility
| • | Financing charges to total revenue |
| • | Own-source revenue to the Province’s GDP |
Vulnerability
| • | Non-renewable resources revenue to total expense |
| • | Transfers from the federal government to total revenue |
| • | Foreign currency debt to net debt |
Sustainability
Sustainability is the degree to which a government can maintain its existing level of spending and meet its existing debt obligations.
| Accumulated (Deficit) Surplus to the Province’s GDP
(per cent)
The accumulated (deficit) surplus measures the sum of all current and prior years’ operating results. Gross domestic product (GDP) is a measure of the value of the goods and services produced during a year, indicating the size of the provincial economy. GDP reflects the latest figures available for the current and prior years based on the data produced by Statistics Canada. The indicator takes a long-term view of government finances. The trend of accumulated (deficit) surplus as a percentage of GDP indicates whether the accumulated (deficit) surplus is changing faster or slower than the growth or decline in the economy and provides insight into the Government’s fiscal strategy in the context of the economy. |
The decrease in this ratio from 2014 to 2017 was mainly a result of market-driven variables, such as low oil prices. The return to relatively stable ratios from 2018 to 2020 reflects the revenue stability and cost control measures introduced in the 2017-18 budget. A decline in this ratio in 2021 was primarily due to the adverse effect of the COVID-19 pandemic on government operations and the economy, negatively impacting both the accumulated deficit and the Province’s GDP. A further decline in this ratio in 2022 reflects the record drought-related crop insurance claim payouts that adversely impacted the accumulated deficit. Although there was an overall improvement in the economy, with increases in non-renewable resources and taxation revenues, the Province’s GDP growth did not keep up with the increase in the accumulated deficit. |
Government of Saskatchewan Public Accounts 2021-22 13
Financial Statement Discussion and Analysis
Assessment of Fiscal Health
Sustainability (continued)
| Net Debt to the Province’s GDP
(per cent)
Net debt is the difference between a government’s financial assets and liabilities and represents the future revenue that is required to pay for past transactions and events. Net debt as a percentage of the Province’s GDP provides a measure of the level of financial demands placed on the economy by the Government’s spending and taxation policies. A lower net debt to GDP ratio is desired and indicates higher sustainability. |
The rise in this ratio from 2015 to 2017 is mainly a result of market-driven variables, such as low oil prices, together with the Government’s continued investment in infrastructure. The return to relatively stable ratios from 2018 to 2020 reflects the revenue stability measures introduced in the -2017-18 budget and a strengthening provincial economy over this period of time. A rise in this ratio in 2021 was primarily due to the adverse effect of the COVID-19 pandemic on government operations and the economy, negatively impacting both net debt and the Province’s GDP. The ratio continued to rise in 2022. Although there was an overall improvement in the economy, the Province’s GDP growth did not keep up with the increase in net debt. |
| Net Debt to Total Revenue
(per cent)
Another measure of a government’s sustainability is net debt as a percentage of total revenue. Net debt provides a measure of the future revenue that is required to pay for past transactions and events. A lower net debt to revenue ratio indicates higher sustainability, as less time is required to eliminate net debt. |
Over the last ten years, the Government’s net debt as a percentage of total revenue has increased from 35.7 per cent in 2013 to 85.4 per cent in 2022. The fall in revenue tied to low oil and potash prices in 2016 and 2017 increased this upward trend, however, responsible spending, efforts to reduce reliance on non-renewable resource revenues as well as more favorable non-renewable resource revenues slowed this upward trend from 2018 to 2020. A rise in this ratio in 2021 was primarily due the adverse effect of the COVID-19 pandemic on government operations and the economy, negatively impacting both net debt and total revenues. A decrease in this ratio in 2022 is primarily due to an overall improvement in the economy resulting in an increase in total revenue that exceeded the increase in net debt. |
14 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Assessment of Fiscal Health
Sustainability (continued)
| Net Debt per Capita
(thousands of dollars)
Figures are based on Statistics Canada first quarter estimates representing the population at January 1 of each year.
Net debt per capita represents the net debt attributable to each Saskatchewan resident. A rise in this ratio indicates an increase in the debt burden per resident has grown. |
The overall increase in this ratio over the last ten years was a result of an increase in net debt that exceeds the growth in the Province’s population over the same period. The increase over the period between 2015 and 2017 was mainly a result of market-driven variables, such as low oil prices, together with the Government’s investment in infrastructure. The return to relatively stable ratios from 2018 to 2020 reflects the revenue stability measures introduced in the 2017-18 budget and a strengthening provincial economy over much this period. A rise in this ratio in 2021 was primarily due to the adverse effect of the COVID-19 pandemic on government operations and the economy, negatively impacting net debt. A further increase in this ratio in 2022 reflects the record drought-related crop insurance claims that adversely impacted net debt. An overall improvement in the economy with increases in non-renewable resources and taxation revenues, only partially offset this impact on net debt. |
Flexibility
Flexibility is the extent to which a government has room to maneuver in terms of increasing its debt or tax burden on the economy.
| Financing Charges to Total Revenue
(per cent)
A financing charges to total revenue ratio, often referred to as the interest bite, indicates the proportion of provincial revenue that is required to pay interest charges on general debt and therefore is not available to pay for essential public services and programs. A lower ratio means that there is more money available to provide government services. |
Between 2013 and 2020 this ratio was relatively consistent. A rise in this ratio in 2021 was due to both an increase in interest costs tied to COVID-related borrowing and a decrease in total revenue tied to the adverse impact of the COVID-19 pandemic on the provincial economy. In 2022, this ratio returned to pre-pandemic levels with an increase in total revenue relative to the increase in interest costs on general debt. In 2022, the Government spent approximately 4.0 cents of each dollar of revenue on financing charges on general debt. |
Government of Saskatchewan Public Accounts 2021-22 15
Financial Statement Discussion and Analysis
Assessment of Fiscal Health
Flexibility (continued)
| Own-Source Revenue to the Province’s GDP
(per cent)
This ratio measures the extent to which the Government is taking income out of the provincial economy, through taxation, non-renewable resources revenue or user fees. An increase in this ratio indicates that the Government’s own-source revenue is growing faster than the economy, reducing the Government’s flexibility to increase revenue without slowing the growth of the provincial economy. |
Own-source revenue as a percentage of GDP remained relatively constant between 2013 and 2021 indicating that the Government had not significantly changed its demands on the provincial economy over this time. This constant ratio indicated that the Government’s flexibility was relatively unchanged over that period. In 2022, the significant increase in own-source revenue, largely from insurance, relative to the Province’s GDP growth pushed this ratio up, decreasing the Government’s flexibility to increase own-source revenue without impacting the economy. |
Vulnerability
Vulnerability is the extent to which a government is dependent on, or exposed to, risks associated with sources of funding outside its control.
| Non-Renewable Resources Revenue to Total Expense
(per cent)
Non-renewable resources revenue is affected by price and sales factors which are beyond a government’s direct control. Non-renewable resources revenue as a percentage of total expense is therefore an indicator of how vulnerable the Province is as a result of its dependence on non-renewable resources revenue to fund its expenses. |
In Saskatchewan, non-renewable resources revenue is an important but volatile source of revenue.
A decline in this ratio in 2021 was primarily due to the adverse effect of the COVID-19 pandemic on the economy and government operations. In 2022, this ratio increased due to an overall improvement in the economy and a corresponding increase in all categories of non-renewable resources revenue, with the largest increases in potash, oil and natural gas and resource surcharges. This is an indicator that the Government is reliant on renewable resources revenue to fund its expenses. |
16 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Assessment of Fiscal Health
Vulnerability (continued)
| Transfers from the Federal Government to Total Revenue
(per cent)
The Government does not control the amount of federal transfers that it receives each year. Transfers from the federal government as a percentage of total revenue is therefore an indicator of the degree of vulnerability the Government has as a result of reliance on the federal government for revenue. Generally, a decreasing ratio indicates that a government is less reliant on federal transfers to fund its programs, making it less vulnerable. |
In 2022, 19.1 per cent of the Government’s revenue came from transfers from the federal government with the remainder coming from Saskatchewan sources. Between 2013 and 2020, the Government’s ability to fund essential programs and services from own-source revenue has remained fairly stable with the exception of significant one-time infrastructure transfers from the federal government received during 2017. An increase in this ratio in 2021 was primarily due to the adverse impact of the COVID-19 pandemic on the economy and the resulting support received from the federal government. In 2022, the decrease in this ratio is primarily due to a significant increase in own-source revenue, mainly from non-renewable resources and taxation, relative to the increase in transfers from the federal government. | |
|
Foreign Currency Debt to Net Debt
The ratio of foreign currency debt to net debt is an indicator of the degree of vulnerability a government has to currency rate fluctuations. Where the Government holds debt that is issued in foreign currencies it often uses cross-currency swaps, a hedging strategy, to effectively convert this debt to Canadian dollar debt. At March 31, 2022, this ratio is nil due to the Government’s hedging strategies. Over the last ten years, exposure to currency rate fluctuations on foreign currency debt has been minimal. Decreasing this exposure through the use of hedging activities mitigates the risk of debt and financing charges changing due to changes in foreign currency rates. |
Government of Saskatchewan Public Accounts 2021-22 17
Financial Statement Discussion and Analysis
Details
Revenue
Total revenue was $18.14 billion in 2022, 19.1 per cent of which represents transfers from the federal government and the remaining 80.9 per cent own-source revenue.
| Revenue by Source – 2022 ($18.14 billion)
(per cent)
|
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|
Revenue by Source – Percentage of Total Revenue
(per cent)
* In 2022, key components of “other own-source revenue” include fees (6%), insurance (4%), investment income (1%), and transfers from other governments (1%). |
18 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Revenue by Source – Comparison to Budget and Prior Year
(billions of dollars)
* In 2022 Actual, key components of “other own-source revenue” include fees ($1.21 billion), insurance ($744 million), investment income ($93 million), and transfers from other governments ($89 million). |
Total revenue of $18.14 billion in 2022 represents a year-over-year and an actual-to-budget increase of $3.61 billion, or 24.9 per cent, and $3.66 billion, or 25.3 per cent, respectively. This increase over prior year and budget primarily resulted from increases in all revenue sources except net income from GBEs. The most notable increases are in non-renewable resources and taxation revenues. |
Government of Saskatchewan Public Accounts 2021-22 19
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Taxation Revenue – Comparison to Budget and Prior Year
(billions of dollars)
* In 2022 Actual, key components of “other” include fuel ($495 million) and tobacco ($180 million). |
Taxation revenue was $8.20 billion in 2022, an increase of $1.32 billion, or 19.2 per cent, from 2021 and $964 million, or 13.3 per cent, from budget. The increases from prior year and budget are largely due to increases in, and higher than expected, corporation and individual income taxes, provincial sales tax and fuel tax. Those increases are slightly offset by decreases in, and lower than expected, property tax and tobacco tax. |
Individual income tax
The year-over-year and actual-to-budget increases are primarily due to:
| • | a large positive prior-year adjustment due to stronger prior year taxpayer assessments; and |
| • | increased taxable income due to high compensation growth. |
These increases are partially offset by:
| • | the first full year impact of the Saskatchewan Home Renovation Tax Credit; and |
| • | indexation of the tax system for 2021. |
Provincial sales tax
The year-over-year and actual-to-budget increases are primarily due to:
| • | a continuation of the post-COVID economic recovery and corresponding improvement in the sales tax base, reflecting GDP growth, increased business investment, retail sales growth and increased household consumption; and |
| • | a lower adjustment for Saskatchewan Low Income Tax Credit payments. |
Corporation income tax
The year-over-year and actual-to-budget increases are primarily due to:
| • | stronger 2020 taxpayer assessments, resulting in a large positive prior year adjustment; and |
| • | an improvement in the federal tax base forecast; partially offset by |
| • | the first full year impact of the temporary 0 per cent small business tax rate. |
Property tax
The year-over-year and actual-to-budget decreases are primarily due to:
| • | lower assessment growth and an increase in property tax abatements. |
20 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Revenue (continued)
Other tax (including fuel, tobacco and other miscellaneous tax)
The year-over-year and actual-to-budget increases are primarily due to:
| • | an increase in fuel tax revenue, primarily due to increased consumption, partially offset by higher First Nations rebates and commercial refunds; |
| • | an increase in insurance premiums tax, primarily due to growth in the value of insured property; |
| • | an increase in Corporation Capital Tax, primarily reflecting higher payments from financial institutions; and |
| • | an increase in Cannabis Excise Tax, reflecting increased consumption. |
These increases are partially offset by:
| • | a decrease in tobacco tax as a result of reduced consumption, net of a decline in First Nations rebates. |
Government of Saskatchewan Public Accounts 2021-22 21
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Non-Renewable Resources Revenue – Comparison to Budget and Prior Year
(millions of dollars)
|
In 2022, non-renewable resources revenue was $2.92 billion, an increase of $1.81 billion, or 163.6 per cent, over 2021 and a $1.59 billion, or 119.8 per cent, increase when compared to budget. There is a year-over-year and actual-to-budget increase in all non-renewable resources revenue categories with the most significant increases in potash, oil and natural gas and resource surcharge. |
Potash
The year-over-year and actual-to-budget increases are primarily due to:
| • | the average mine netback price increasing from $390 per K2O tonne in 2021 and $396 per K2O tonne at budget to $683 per K2O tonne in 2022. |
This increase is partially offset by:
| • | a decrease in sales volume from 14.1 million K2O tonnes in the prior year and 14.3 million K2O tonnes at budget to 13.8 million K2O tonnes in 2022; and |
| • | a higher average exchange rate. |
Oil & natural gas
The year-over-year and actual-to-budget increases are primarily due to:
| • | a higher average Canadian dollar well-head oil price in Saskatchewan of $77.54 per barrel in 2022, compared to $36.54 per barrel in the prior year and $49.31 at budget. This increase in the average Canadian dollar well-head oil price is due to: |
| • | a higher average U.S. dollar West Texas Intermediate (WTI) oil price; and |
| • | a lower average light-heavy oil blend differential; partially offset by |
| • | a higher average exchange rate. |
| • | an increase in oil production compared to the prior year and budget |
Resource surcharge
The year-over-year and actual-to-budget increases are primarily due to:
| • | an increase from the potash sector, primarily due to higher average prices; |
| • | an increase from the oil and gas sector, mainly reflecting higher WTI oil prices; and |
| • | an increase from the uranium sector, primarily due to the impact of the temporary COVID-related closure of mines in the prior year and higher-than-budgeted prices. |
Other non-renewable resources (including crown land sales and other miscellaneous non-renewable resources)
The year-over-year increase is primarily due to:
| • | an increase in uranium revenue resulting from COVID-related temporary mine shutdowns in the prior year; |
| • | an increase in gold royalties; and |
| • | an increase in crown land sales due to an increase in both hectares sold and the average price per hectare, with subsurface mineral rights sales and WTI oil prices both increasing. |
The actual-to-budget increase is primarily due to:
| • | an increase in crown land sales primarily reflecting higher-than-budgeted subsurface mineral rights sales. |
22 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Net Income from GBEs – Comparison to Budget and Prior Year
(millions of dollars)
|
Net income from GBEs was $838 million in 2022, a decrease of $440 million, or 34.5 per cent, from 2021 and $62 million, or 6.8 per cent, from budget. The decrease from prior year is due to a decrease in the insurance and financing and utility sectors, offset partially by an increase in the liquor and gaming sector. The decrease from budget is due to a decrease in the insurance and financing sector, mostly offset by better-than-expected results in the utilities and liquor and gaming sectors. |
Liquor and gaming
The year-over-year increase is primarily a result of:
| • | the re-opening of casinos and video lottery terminals (VLTs) as COVID-related public health measures were lifted. |
This year-over-year increase was partially offset by:
| • | a decrease in liquor sales. |
The increase over budget is primarily due to:
| • | higher-than-expected liquor sales and VLT profits. |
Utility
The year-over-year decrease is primarily due to:
| • | an increase in fuel and purchased power costs from lower cost hydro production being replaced with more expensive fuel sources and increased generation volumes; |
| • | higher federal carbon charges due to lower hydro generation combined with a carbon capture and storage facility being offline for unplanned maintenance; |
| • | a favorable ruling in the prior year by an arbitration panel in relation to a contractual dispute at SaskPower resulting in a cash award; |
| • | lower customer capital contributions due to a large capital project being completed; |
| • | an increase in capital related costs for ongoing capital expenditure, particularly for the expansion of the province’s 5G network; and |
| • | greater natural gas operating and maintenance expenses primarily due to higher transportation cost, growing demand resulting in more natural gas imports from Alberta and increasing fuel prices. |
These year-over-year decreases are partially offset by:
| • | an increase in electricity sales, including export sales to the Alberta market, largely attributed to the improved economic conditions as the province recovers from the pandemic; |
| • | an increased margin on natural gas sales resulting from favorable year-over-year market value adjustments; |
| • | an increase in funding for power grid renewal; |
| • | an increase in natural gas transportation and storage revenue primarily due to a rate increase and a return of transportation contracting to pre-pandemic levels; and |
Government of Saskatchewan Public Accounts 2021-22 23
Financial Statement Discussion and Analysis
Details
Revenue (continued)
Utility (continued)
| • | a favorable litigation ruling in the current year related to SaskEnergy’s head office building. |
The increase over budget is primarily due to:
| • | higher-than-budgeted natural gas sales revenue, mainly attributable to greater-than-expected increases in prices; and |
| • | unbudgeted favorable market value adjustments on future natural gas purchase contracts. |
Insurance and financing
The decrease over prior year is primarily due to:
| • | a decrease from the strong investment returns reported in the prior year that captured the rebound in equity markets following the onset of COVID; and |
| • | a return to pre-COVID underwriting results across most lines of business. The most significant decline was for auto insurance resulting primarily from increases in both claim frequency and severity as COVID restrictions were eased and more vehicles were on the roads. The cost of increased claims was partially offset by an increase in premium revenue from a higher number of licensed vehicles. |
These year-over-year decreases are partially offset by:
| • | a lower rebate paid to the motoring public of Saskatchewan in the current year compared to the prior year. |
The decrease over budget is primarily due to:
| • | poorer-than-expected underwriting results primarily due to a large storm that occurred in Regina in August 2021, for which there was a partial reinsurance recovery; |
| • | greater-than-expected workers’ compensation claim costs tied to an actuarial increase in benefits liability; |
| • | an unbudgeted rebate paid to motoring public of Saskatchewan; and |
| • | lower-than-anticipated investment income due to uncertainty in world markets and increasing interest rates. |
These decreases over budget are partially offset by:
| • | lower-than-anticipated costs associated with operational growth and corporate transformation at Saskatchewan Government Insurance and Saskatchewan Auto Fund. |
24 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Other Own-Source Revenue – Comparison to Budget and Prior Year
(billions of dollars)
|
Other own-source revenue was $2.72 billion in 2022, an increase of $594 million, or 28.0 per cent, over 2021 and $613 million, or 29.1 per cent, when compared to budget. A significant portion of the year-over-year and actual-to-budget increases are due to increased insurance revenue resulting from reinsurance recoveries on drought-related crop insurance claims. |
Fees
The year-over-year and actual-to-budget increases were due to:
| • | an increase in healthcare fees as a result of increased utilization of services post-COVID; and |
| • | increased recoverable costs for fire suppression activities; partially offset by |
| • | decreased fees earned by school divisions primarily from the impact of COVID-19 restrictions on extracurricular activities and facility rentals. |
In addition, there was:
| • | a year-over-year increase in 911 fees reflecting a new fee structure; and |
| • | higher-than-budgeted forestry revenue, reflecting an unbudgeted rise in lumber prices and high market demand; |
Insurance
The year-over-year and actual-to-budget increases are due to:
| • | a reinsurance recovery due to increased crop insurance losses related to drought-related claims; and |
| • | increased crop insurance premiums due to increased prices and acres insured by producers. |
Investment Income
The year-over-year decrease is due to:
| • | weak market performance in the public employees’ benefit plans compared to the strong earnings in the prior year; and |
| • | lower sinking fund earnings, primarily the result of changes in interest rates. |
The increase from budget was nominal.
Other (including transfers from other governments and miscellaneous)
The year-over-year and actual-to-budget increases were due to:
| • | increased donations of COVID-19 test kits and personal protective equipment from the federal government; and |
| • | an increase in recoveries, primarily related to drug plan product listing agreements and physician repayments. |
The increase over budget was additionally impacted by:
| • | higher-than-budgeted lottery sales; and |
| • | unbudgeted grants-in-lieu of property taxes. |
Government of Saskatchewan Public Accounts 2021-22 25
Financial Statement Discussion and Analysis
Details
Revenue (continued)
| Transfers from the Federal Government – Comparison to Budget and Prior Year
(billions of dollars)
|
Federal transfers were $3.46 billion in 2022, an increase of $326 million, or 10.4 per cent, over 2021 and $551 million, or 18.9 per cent, when compared to budget. The year-over-year increase is mainly due to a new Drought Response Initiative for livestock producers and increased funding for the Accelerated Sites Closure Program, partially offset by an overall decrease in COVID-related funding. The actual-to-budget increase is mainly due to unbudgeted COVID-related funding and the new Drought Response Initiative. |
Canadian Health Transfer
The year-over-year increase is primarily due to:
| • | a legislated annual increase in the national allocation equal to the greater of 3 per cent and the three-year moving average of the Canadian nominal GDP growth rate with an adjustment for changes in Saskatchewan’s share of the national population. |
The increase from budget was nominal.
Canadian Social Transfer
The year-over-year increase is primarily due to:
| • | a legislated 3 per cent annual increase in the national allocation with an adjustment made for changes in Saskatchewan’s share of the national population. |
The increase from budget was nominal.
Other transfers from the federal government
The year-over-year and actual-to-budget increases are primarily due to:
| • | an unbudgeted new Drought Response Initiative to compensate livestock producers; |
| • | a budgeted increase in funding for the Accelerated Site Closure Program for the |
| reclamation of inactive oil wells. Although there was a year-over-year increase in projects completed, completions were less-than-budgeted; |
| • | an unbudgeted increase in federal disaster assistance funding; |
| • | new, unbudgeted funding for Saskatchewan’s share of the Early Learning and Child Care agreements; and |
| • | an unbudgeted increase in federal contributions to crop insurance premiums, mainly the result of increased insured acres and higher prices. |
These increases were partially offset by:
| • | a net decrease in funding for COVID-related health, safety and financial support measures, for which there was a decrease related to: |
| • | a budgeted decrease for 2021 funding: |
| • | Saskatchewan’s share of the Safe Restart Agreement and Safe Return to Class Fund; and |
| • | the Saskatchewan Temporary Wage Supplement program; partially offset by |
| • | an unbudgeted increase for 2022 funding for Saskatchewan’s share of the: |
| • | Helping our Health Systems Recover program; |
| • | Canada Community-Building Fund to help communities recover from the pandemic; |
| • | Canada’s Safe Long-term Care Fund to improve infection detection and control; and |
| • | Canada’s COVID-19 Immunization Plan for vaccine rollout support. |
| • | a year-over-year decrease for one-time funding received in the prior year for the federal Fiscal Stabilization Program; and |
| • | less-than-budgeted infrastructure funding due to slower-than-expected progress on projects. |
26 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Expense
Total expense was $19.60 billion in 2022, 70.2 per cent of which represents spending in the health, education and agriculture sectors. The SFS report expense by theme and by object, or major type of expense such as salaries and benefits, transfers and operating costs.
| Expense by Theme – 2022 ($19.60 billion)
(per cent)
|
||
|
Expense by Theme – Percentage of Total Expense
(per cent)
* In 2022, key components of “other” include financing charges (4%), community development (4%), transportation (3%), economic development (3%), general government (2%) and environment and natural resources (2%). |
Government of Saskatchewan Public Accounts 2021-22 27
Financial Statement Discussion and Analysis
Details
Expense (continued)
| Expense by Theme – Comparison to Budget and Prior Year
(billions of dollars)
|
Total expense was $19.60 billion in 2022. This represents an increase of $3.95 billion, or 25.3 per cent, over the prior year and $2.52 billion, or 14.7 per cent, over budget. The most notable increase over both prior year and budget is in the agriculture theme. Drought conditions across the province created unfavorable crop conditions that resulted in record crop insurance claim payouts for poor crop quality and yields. |
| * | In 2022 Actual, key components of “other” include financing charges ($718 million), community development ($683 million), transportation ($633 million), economic development ($521 million), general government ($464 million) and environment and natural resources ($403 million). |
Health
The year-over-year and actual-to-budget (both unless otherwise specified) increases are primarily due to:
| • | incremental COVID-related operating costs primarily comprised of: |
| • | compensation of health care workers, mainly for increase in overtime and sick leave usage; |
| • | a year-over-year increase in spending on physician services, including contracted services to 3rd party medical providers, due to an increase in surgical and ICU volumes; |
| • | contracted staff, mainly for contact tracing, testing and vaccination program delivery; |
| • | medical and lab supplies; and |
| • | unbudgeted rental of facilities to house vaccine delivery and testing. |
| • | the utilization and distribution of federally donated COVID test kits; |
| • | additional spending in the Saskatchewan Prescription Drug Program due to increase in price and utilization and pharmacy delivered COVID vaccinations; |
| • | a general increase in health care wages due to an increase in the average hourly rate of compensation and the utilization of sick leave; and |
| • | the budgeted reclassification of College of Medicine costs from the education to the health theme to better reflect the nature of spending. |
These increases were partially offset by:
| • | unbudgeted savings from COVID-related service slowdowns where there were temporarily lower utilization rates for certain services. |
28 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Expense (continued)
Education
The year-over-year increase is primarily due to:
| • | an increase in pension costs for Teacher’s Superannuation Plan (TSP) primarily due to prior year gains being fully amortized and new losses arising from changes in actuarial assumptions, including lower interest rates; |
| • | increased spending related to the new Canada-wide Early Learning and Child Care agreements; |
| • | increased costs in school divisions related to additional teaching and caretaking staff upon the return to classrooms, as well as purchases of personal protective equipment and other COVID-related safety equipment; and |
| • | increased funding to universities and colleges to improve long-term sustainability and support growth. |
These increases were partially offset by:
| • | the budgeted reclassification of College of Medicine costs from the education to the health theme to better reflect the nature of spending; and |
| • | a reduction in spending related to Saskatchewan’s child care component of the federal Safe Restart Agreement. |
The decrease from budget is mainly attributed to:
| • | lower-than-budgeted spending in K-12 schools associated with reduced fundraising activities due to COVID, reduced spending on preventative maintenance and renewal, part of which resulted from lower-than-budgeted federal funding; |
| • | lower-than-budgeted Labour Market Agreement program costs due to reduced uptake; and |
| • | lower-than-expected pension costs for TSP related to losses from the change in the interest rate assumption. |
These decreases were partially offset by:
| • | unbudgeted spending related to the new Canada-wide Early Learning and Child Care agreements. |
Agriculture
The year-over-year and actual-to-budget increases are primarily due to:
| • | drought conditions across the province during 2021-22, resulting in a significant increase in crop insurance indemnities paid to producers; |
| • | relief payments to livestock producers under the new federal-provincial Drought Response Initiative; |
| • | increased payments under the Wildlife Damage Compensation program due to higher crop prices; and |
| • | increased AgriStability benefits as a result of updated forecasts including changes made to the benefit calculation. |
These increases were partially offset by:
| • | decreased livestock price insurance indemnities paid to producers due to a more stable cattle market. |
Social services and assistance
The year-over-year increase is primarily due to:
| • | increased spending in various disability and child and family programs to address utilization pressures, provide other service enhancements, and increase funding to community-based organizations; |
| • | increased utilization of the Saskatchewan Assured Income for Disability program; and |
| • | increased social housing maintenance and utility costs. |
These increases were mostly offset by:
| • | lower combined utilization of Saskatchewan Assistance Program, Transitional Employment Allowance, Saskatchewan Income Support and Rental Housing Supplements; and |
| • | decreased COVID-related costs for the hotel isolation program. |
The decrease from budget is primarily due to:
| • | a decrease in income assistance mainly due to lower-than-budgeted utilization and average payments; |
| • | lower-than-budgeted expenses related to community-based organization recoveries for disability services, along with delayed construction of a third safety net home; and |
| • | lower-than-budgeted social housing costs due to lower-than-expected uptake in housing projects and increased vacancies. |
Government of Saskatchewan Public Accounts 2021-22 29
Financial Statement Discussion and Analysis
Details
Expense (continued)
Protection of persons and property
The year-over-year and actual-to-budget increases are primarily due to:
| • | COVID-related expenses including: |
| • | operating pressures in custody and court services resulting from utilization and COVID-19 protocols; and |
| • | an increase related to the COVID-19 response, including the COVID-19 Provincial Emergency Operations Centre. |
| • | increased costs associated with a higher-than-normal fire season; and |
| • | increased RCMP costs, primarily due to settlement of a new collective bargaining agreement. |
Other expense themes (including financing charges, community development, transportation, economic development, general government, and environment and natural resources)
The year-over-year increase is primarily due to:
| • | an increase in pension costs for the Public Service Superannuation Plan (PSSP) primarily due to prior year gains being fully amortized and new losses arising from changes in actuarial assumptions, including lower interest rates; |
| • | increased infrastructure funding to municipalities through the Investing in Canada Infrastructure Program; |
| • | an increase in the cost of highways primarily related to winter maintenance and additional amortization on completed projects; and |
| • | a one-time prior year recovery of the contaminated sites provision resulting from a change in measurement to align with industry practices and regulations. |
These increases were partially offset by:
| • | a net decrease in COVID-related economic stimulus measures primarily provided in the prior year related to the: |
| • | Municipal Economic Enhancement Program; |
| • | Safe Restart Agreement; |
| • | Small Business Emergency Payment Program; |
| • | Saskatchewan Temporary Wage Supplement Program; |
| • | Saskatchewan tourism sector support; and |
| • | Emergency Pandemic Support for First Nations and Metis organizations in response to closure of gaming establishments. |
partially offset by increases in funding for ongoing programs, including the:
| • | Accelerated Site Closure Program spending for the reclamation of inactive wells; |
| • | Saskatchewan Economic Recovery Rebate; and |
| • | a one-time pandemic recovery top-up in funding to communities through the federal Canada Community-Building Fund. |
| • | the administration of the 2020 general election in the prior year; |
| • | decreased spending under New Building Canada Fund as construction projects are finalized; and |
| • | a decrease in financing charges attributed to a decrease in pension related financing costs where there were lower interest rates and pension obligation balances in the TSP and PSSP, almost fully offset by increased borrowing requirements. |
The decrease from budget is primarily due to:
| • | several budgeted waste management projects being deferred to next year; |
| • | lower-than-anticipated activity for the Accelerated Site Closure Program; |
| • | a decrease in pension costs for the PSSP primarily due to losses being lower than estimated for the change in the interest rate assumption and plan experience differences; |
| • | lower-than-expected financing charges primarily due to lower-than-anticipated borrowing and related interest rates and lower pension obligation balances with a higher return on TSP assets; and |
| • | unbudgeted changes in public employee benefit plans’ insurance provisions. |
These decreases from budget were partially offset by:
| • | greater-than-expected highway winter maintenance costs; and |
| • | greater-than expected COVID-related support measures primarily comprised of the: |
| • | Saskatchewan Economic Recovery Rebate; |
| • | unbudgeted additional funding to municipalities under the Canada Community-Building Fund intended to assist communities to recover from the pandemic; and |
| • | Small Business Emergency Payment Program. |
30 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Expense (continued)
Expense by Object – 2022 ($19.60 billion)
(per cent)
| * | Transfers are provided to third parties for salaries, capital and other costs. |
| ** | The key component of “other” is amortization of capital assets. |
Expense by Object – Percentage of Total Expense
(per cent)
| * | Transfers are provided to third parties for salaries, capital and other costs. |
| ** | The key component of “other” is amortization of capital assets. |
| Expense by Object
(billions of dollars)
|
The most significant change is a $2.69 billion increase in operating costs, primarily due to record crop insurance claims resulting from drought conditions experienced across the province. |
| * | Transfers are provided to third parties for salaries, capital and other costs. |
| ** | The key component of “other” is amortization of capital assets. |
Government of Saskatchewan Public Accounts 2021-22 31
Financial Statement Discussion and Analysis
Details
Expense (continued)
| Financing Charges
(millions of dollars)
|
Financing charges have increased in recent years mainly due to an increase in debt financing for the replacement of aging infrastructure as well as for the building of new capacity to meet the demands of the province’s growing population.
The average effective interest rate on gross debt during 2022 was 3.1 percent (2021 – 3.5 per cent). Pension interest expense is a function of the unfunded pension liability and the interest rates that are based on the Government’s borrowing rates. The unfunded pension liability during 2022 was 2.6 per cent (2021 – 2.8 per cent). Interest on P3 obligations, ranging from 3.1 to 3.5 per cent, reflects the Government’s cost of borrowing at the date the P3 contract was signed. |
| * | In 2016, the inclusion of an additional three months of operations of certain GBEs contributed approximately $120 million to GBE financing charges. |
The Statement of Operations reports financing charges that the Government incurs related to its general debt, unfunded pension liability and obligations under long-term financing arrangements (P3 obligations) but does not include government business enterprise (GBE) financing charges. GBE financing charges are included in the net income from GBEs reported on the Statement of Operations and disclosed in schedule 3 of the SFS. For general debt, financing charges are determined by the amount of general debt and the interest rate attached to that debt.
32 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Financial Assets
Financial assets represent the amount of resources available to the Government that can be converted to cash to meet obligations or fund operations.
| Financial Assets
(billions of dollars)
|
From 2018 to 2022, financial assets increased by $3.26 billion. This was primarily a result of a $1.41 billion increase in investment in GBEs and a $1.20 billion increase in cash and temporary investments. |
| * | At March 31, 2022, primarily accounts receivable ($2.29 billion), loans receivable ($553 million) and other investments ($467 million). |
Liabilities
Liabilities represent the obligations the Government has to others arising from past transactions or events.
| Liabilities
(billions of dollars)
|
From 2018 to 2022, liabilities increased by $7.46 billion. This was primarily a result of a $8.35 billion increase in general debt. |
| * | At March 31, 2022, primarily accounts payable and accrued liabilities ($3.15 billion). |
Government of Saskatchewan Public Accounts 2021-22 33
Financial Statement Discussion and Analysis
Details
Liabilities (continued)
| Public Debt
(billions of dollars)
|
At March 31, 2022, the SFS report general debt of $17.61 billion and GBE specific debt of $9.63 billion. General debt, after several years of little change, has increased over the past seven years. Until 2021, these increases helped to finance the replacement of aging infrastructure as well as build new capacity to meet the demands of a growing population in the Province. Over the past two years, the increase primarily is a combination of COVID-related economic stimulus spending on infrastructure and borrowing to cover COVID-related revenue shortfalls and incremental expenses. |
Public debt consists of gross debt net of sinking funds and includes:
| • | general debt, which is: |
| • | debt issued by the General Revenue Fund (GRF) and other government service organizations (GSOs); and |
| • | debt issued by the GRF and subsequently loaned to GBEs; and |
| • | GBE specific debt, which is debt issued by GBEs or debt issued by the GRF specifically on behalf of GBEs where the Government expects to realize the receivables from the GBEs and settle the external debt simultaneously. |
The general debt on the Statement of Financial Position does not include GBE specific debt. GBE specific debt is included in the Investment in GBEs reported on the Statement of Financial Position and disclosed in schedule 8 of the SFS.
| Pension Liabilities
(billions of dollars)
|
At March 31, 2022, the SFS report pension liabilities of $6.43 billion, a decrease of $34 million since 2013. Pension liability increases up to 2016 represent the amount by which pension costs, including interest on the pension liabilities and actuarial adjustments, exceeded payments to the pension plans and retirees. This was primarily a result of a decline in interest rates over the same period of time, where small fluctuations in interest rates had a significant impact on the pension liability. Since 2016, the pension liability has decreased by $1.49 billion as payments have begun to exceed the pension costs. |
Pension liabilities represent the future obligations for the Government’s defined benefit pension plans. The pension liability fluctuates with changes in actuarial assumptions such as interest rates and life expectancy. The Government limited its pension exposure over 40 years ago when it closed the main defined benefit plans to new members and introduced defined contribution plans. There is no liability exposure for the Government under defined contribution plans.
34 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Details
Liabilities (continued)
| Obligations under Long-Term Financing Arrangements
(billions of dollars)
|
The Government is party to four P3 arrangements (as disclosed in schedule 10 of the SFS). All four P3 projects have been complete and operational since 2020. |
Obligations under long-term financing arrangements represent the Government’s liability for public private partnerships (P3s). P3 obligations increase as the related assets are built (percentage of completion basis), and are reduced as payments are made to the P3 partner.
Non-Financial Assets
Non-financial assets typically represent resources that the Government can use to provide services in the future. Non-financial assets primarily consist of capital assets but also include inventories held for consumption and prepaid expenses.
| Net Book Value of Capital Assets
(billions of dollars)
The Statement of Financial Position reports a net book value of capital assets recognized by government service organizations (GSOs) of $12.32 billion and does not include the capital assets recognized by GBEs. Capital assets recognized by GBEs total $16.38 billion at March 31, 2022 and are included in the investment in GBEs reported on the Statement of Financial Position and disclosed in schedule 3 of the SFS. The net book value represents the original cost of capital assets net of accumulated amortization, disposals and write-downs in value. |
The net book value of capital assets recognized by the Government has steadily increased over the last five years indicating that the Government has been acquiring new, or replacing existing, capital assets.
Acquisition of capital assets in 2022 was $2.39 billion, $1.44 billion acquired by GBEs and $949 million by GSOs. The investment in capital assets made by GSOs is primarily in the transportation, health and education sectors mainly for road, bridge and water management assets ($472 million) and land, buildings and improvements ($281 million). The GBEs continued to replace aging infrastructure and invest in capital projects to meet the demand for growth, and improve safety. |
Government of Saskatchewan Public Accounts 2021-22 35
Financial Statement Discussion and Analysis
Details
Cash Flow
The Statement of Cash Flow reports on the sources and uses of cash and temporary investments during the year. During the year, the Government’s overall cash position increased by $193 million, from $2.86 billion in 2021 to $3.06 billion in 2022.
| Sources of Cash
(billions of dollars)
|
The primary source of cash is $8.20 billion from taxation. Another significant source of cash is $3.15 billion in proceeds from general debt. |
| Uses of Cash
(billions of dollars)
|
The most significant use of cash is $7.73 billion for salaries and benefits largely for frontline service providers in the health and education sectors. Another significant use of cash is $5.40 billion for transfers. |
36 Government of Saskatchewan Public Accounts 2021-22
Financial Statement Discussion and Analysis
Risks and Uncertainties
The Government is subject to risks and uncertainties that arise from variables which the Government cannot directly control. These risks and uncertainties include:
| • | changes in economic factors such as economic growth or decline, commodity and non-renewable resource prices, inflation, interest rates, marketplace competition, trade barriers, population change, personal income and retail sales; |
| • | exposure to interest rate risk, foreign exchange rate risk, price risk, credit risk and liquidity risk (see note 3 of the SFS); |
| • | changes in transfers from the federal government; |
| • | utilization of government services, such as insurance, health care and social services; |
| • | volatility in the pension liability due to external factors such as interest rates and actuarially determined assumptions of future events; |
| • | other unforeseen developments including unusual weather patterns and natural and other disasters; |
| • | criminal or malicious attacks, both cyber and physical in nature, potentially resulting in business interruption, privacy breach and loss of, or damage to, information, facilities and equipment; |
| • | identification and quantification of environmental liabilities; |
| • | supply chain disruptions and other factors that could hinder the safe delivery of products and services; |
| • | outcomes from litigation, arbitration and negotiations with third parties; |
| • | changes in reported results where actual experience may differ from initial estimates as discussed in note 2 of the SFS; and |
| • | changes in accounting standards. |
Recognizing that Saskatchewan is reliant on the revenue from non-renewable resources and that the Province’s
financial results can be influenced by other external factors, the Government takes a prudent approach in developing its budget assumptions for macroeconomic variables and non-renewable resources prices. The Government uses a number of forecasts from national forecasting agencies and banks, private industry and private sector analysts when developing the underlying assumptions for fiscal forecasts both on budget day and throughout the fiscal year.
The fiscal impact of changes in the underlying economic assumptions, including non-renewable resources prices, are estimated on a regular basis to quantify the risk associated with each forecast assumption. By understanding the size of the risk inherent in the fiscal projections, the Government is better able to make sound financial decisions.
Finally, for the Government to meet its challenges of growth and remain competitive where it operates in a competitive environment, attention is directed towards maintaining and investing in the Province’s infrastructure to support the steady growth the Province has been experiencing and to allow for continued growth in the future.
The COVID-19 pandemic caused material disruption to businesses and resulted in an economic slowdown. COVID-19 increases the risks and uncertainties to the Government’s financial position and operations. While Saskatchewan continues to show a strong recovery from the economic fallout of the pandemic, the impact of COVID-19 is ongoing and its effect on future results cannot be reasonably determined at this time.
Government of Saskatchewan Public Accounts 2021-22 37
Summary Financial Statements
Summary Financial Statements
Responsibility for the 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 obtain reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained.
The Provincial Comptroller prepares these statements in accordance with generally accepted accounting principles for the public sector, using the Government’s best estimates and judgement when appropriate. He uses information from the accounts of the General Revenue Fund, Crown corporations and other government organizations to prepare these statements.
The Provincial Auditor expresses an independent opinion on these statements. Her report, which appears on the following page, provides the scope of her audit and states her opinion.
Treasury Board approves the Summary Financial Statements. The statements are tabled in the Legislative Assembly as part of the Public Accounts and referred to the Standing Committee on Public Accounts for review.
On behalf of the Government of the Province of Saskatchewan.
|
| DONNA HARPAUER |
| Deputy Premier and |
| Minister of Finance |
|
| RUPEN PANDYA |
| Deputy Minister of Finance |
|
| TERRY PATON |
| Provincial Comptroller |
| Regina, Saskatchewan |
| June 2022 |
Government of Saskatchewan Public Accounts 2021-22 41
Summary Financial Statements
Independent Auditor’s Report
To the Members of the Legislative Assembly of Saskatchewan
Opinion
We have audited the consolidated financial statements of the Government of Saskatchewan, which comprise the Statement of Financial Position as at March 31, 2022, and the Statements of Operations, Accumulated Deficit, Change in Net Debt, and Cash Flow for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Government of Saskatchewan as at March 31, 2022, and the consolidated results of its operations, the consolidated changes in its net debt, and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Government of Saskatchewan in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises the information included in Public Accounts 2021-22 Volume 1 Summary Financial Statements, but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or any knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor’s report. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards for Treasury Board’s approval, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Government of Saskatchewan’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Government of Saskatchewan either intends to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Government of Saskatchewan’s financial reporting process.
Government of Saskatchewan Public Accounts 2021-22 43
Summary Financial Statements
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
| Ø | Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| Ø | Obtain an understanding of internal control relevant to the audit 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 Government of Saskatchewan’s internal control. |
| Ø | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
| Ø | Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Government of Saskatchewan’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Government of Saskatchewan to cease to continue as a going concern. |
| Ø | Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
| Ø | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Government of Saskatchewan to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the consolidated financial statement audit. We are solely responsible for the auditor’s opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control identified during the audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
| ||||
| Regina, Saskatchewan | TARA CLEMETT, CPA, CA, CISA | |||
| June 16, 2022 | Provincial Auditor | |||
| Office of the Provincial Auditor |
44 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Statement of Financial Position
As at March 31, 2022
(thousands of dollars)
| 2022 | 2021 | |||||||
| Financial Assets |
||||||||
| Cash and temporary investments |
3,055,314 | 2,862,621 | ||||||
| Accounts receivable (schedule 1 ) |
2,287,343 | 1,754,866 | ||||||
| Loans receivable (schedule 2 ) |
553,467 | 503,773 | ||||||
| Investment in government business enterprises (schedule 3 ) |
7,692,148 | 7,466,716 | ||||||
| Other investments (schedule 4 ) |
467,085 | 410,731 | ||||||
| Other financial assets |
3,869 | 4,895 | ||||||
|
|
|
|
|
|||||
| Total Financial Assets |
14,059,226 | 13,003,602 | ||||||
|
|
|
|
|
|||||
| Liabilities |
||||||||
| Accounts payable and accrued liabilities (schedule 5 ) |
3,145,238 | 3,148,937 | ||||||
| Unearned revenue (schedule 6 ) |
437,403 | 527,204 | ||||||
| Pension liabilities (note 4 )(schedule 7 ) |
6,433,849 | 6,575,845 | ||||||
| General debt (schedule 8 ) |
17,608,220 | 14,481,477 | ||||||
| Obligations under long-term financing arrangements (schedule 10 ) |
1,407,407 | 1,440,677 | ||||||
| Other liabilities (schedule 11 ) |
515,288 | 512,154 | ||||||
|
|
|
|
|
|||||
| Total Liabilities |
29,547,405 | 26,686,294 | ||||||
|
|
|
|
|
|||||
| Net Debt |
(15,488,179 | ) | (13,682,692 | ) | ||||
|
|
|
|
|
|||||
| Non-Financial Assets |
||||||||
| Tangible capital assets (schedule 12 ) |
12,318,579 | 12,017,273 | ||||||
| Inventories held for consumption (schedule 13 ) |
268,619 | 236,787 | ||||||
| Prepaid expenses |
68,724 | 60,991 | ||||||
|
|
|
|
|
|||||
| Total Non-Financial Assets |
12,655,922 | 12,315,051 | ||||||
|
|
|
|
|
|||||
| Accumulated Deficit |
(2,832,257 | ) | (1,367,641 | ) | ||||
|
|
|
|
|
|||||
Contractual rights and obligations (note 6 )
Contingencies (note 7 )
The accompanying notes and schedules are an integral part of these financial statements.
Government of Saskatchewan Public Accounts 2021-22 45
Summary Financial Statements
Statement of Operations
For the Year Ended March 31, 2022
(thousands of dollars)
| 2022 | 2021 | |||||||||||
| Budget | Actual | Actual | ||||||||||
| Revenue |
||||||||||||
| Taxation |
7,238,000 | 8,202,263 | 6,881,974 | |||||||||
| Non-renewable resources |
1,328,500 | 2,919,999 | 1,107,774 | |||||||||
| Net income from government business enterprises (schedule 3 ) |
899,200 | 837,651 | 1,278,141 | |||||||||
| Other own-source |
2,104,100 | 2,717,124 | 2,122,951 | |||||||||
| Transfers from the federal government |
2,908,500 | 3,459,134 | 3,133,069 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Revenue (schedule 14) |
14,478,300 | 18,136,171 | 14,523,909 | |||||||||
|
|
|
|
|
|
|
|||||||
| Expense |
||||||||||||
| Health |
6,535,300 | 6,882,972 | 6,338,063 | |||||||||
| Education |
3,753,200 | 3,685,349 | 3,276,875 | |||||||||
| Agriculture |
879,300 | 3,194,351 | 525,934 | |||||||||
| Social services and assistance |
1,556,700 | 1,458,370 | 1,448,377 | |||||||||
| Protection of persons and property |
845,100 | 961,343 | 819,709 | |||||||||
| Financing charges (schedule 16 ) |
755,000 | 718,206 | 720,829 | |||||||||
| Community development |
690,400 | 682,889 | 792,587 | |||||||||
| Transportation |
607,700 | 633,494 | 616,853 | |||||||||
| Economic development |
527,000 | 520,774 | 477,746 | |||||||||
| General government |
524,600 | 463,599 | 379,395 | |||||||||
| Environment and natural resources |
414,900 | 403,120 | 254,574 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Expense (schedule 15) |
17,089,200 | 19,604,467 | 15,650,942 | |||||||||
|
|
|
|
|
|
|
|||||||
| Deficit |
(2,610,900 | ) | (1,468,296 | ) | (1,127,033 | ) | ||||||
|
|
|
|
|
|
|
|||||||
The accompanying notes and schedules are an integral part of these financial statements.
46 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Statement of Accumulated Deficit
For the Year Ended March 31, 2022
(thousands of dollars)
| 2022 | 2021 | |||||||||||
| Budget | Actual | Actual | ||||||||||
| Accumulated deficit, beginning of year |
(1,367,641 | ) | (1,367,641 | ) | (191,317 | ) | ||||||
| Adjustment to accumulated deficit (note 8) |
— | (87,770 | ) | (32,392 | ) | |||||||
| Deficit |
(2,610,900 | ) | (1,468,296 | ) | (1,127,033 | ) | ||||||
| Other comprehensive income (loss) (schedule 3) |
— | 91,450 | (16,899 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Accumulated Deficit, End of Year |
(3,978,541 | ) | (2,832,257 | ) | (1,367,641 | ) | ||||||
|
|
|
|
|
|
|
|||||||
Statement of Change in Net Debt
For the Year Ended March 31, 2022
(thousands of dollars)
| 2022 | 2021 | |||||||||||
| Budget | Actual | Actual | ||||||||||
| Deficit |
(2,610,900 | ) | (1,468,296 | ) | (1,127,033 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Tangible Capital Assets (schedule 12) |
||||||||||||
| Acquisitions |
(1,089,900 | ) | (948,554 | ) | (837,101 | ) | ||||||
| Amortization |
628,100 | 641,530 | 630,206 | |||||||||
| Disposals |
— | 7,148 | 8,350 | |||||||||
| Write-downs |
— | 2,505 | 6,676 | |||||||||
| Adjustments |
— | (3,935 | ) | 33,392 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Acquisition of Tangible Capital Assets |
(461,800 | ) | (301,306 | ) | (158,477 | ) | ||||||
| Net Acquisition of Other Non-Financial assets |
— | (39,565 | ) | (59,010 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Increase in Net Debt from Operations |
(3,072,700 | ) | (1,809,167 | ) | (1,344,520 | ) | ||||||
| Adjustment to accumulated deficit (note 8) |
— | (87,770 | ) | (32,392 | ) | |||||||
| Other comprehensive income (loss) (schedule 3) |
— | 91,450 | (16,899 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Increase in Net Debt |
(3,072,700 | ) | (1,805,487 | ) | (1,393,811 | ) | ||||||
| Net debt, beginning of year |
(13,682,692 | ) | (13,682,692 | ) | (12,288,881 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Debt, End of Year |
(16,755,392 | ) | (15,488,179 | ) | (13,682,692 | ) | ||||||
|
|
|
|
|
|
|
|||||||
The accompanying notes and schedules are an integral part of these financial statements.
Government of Saskatchewan Public Accounts 2021-22 47
Summary Financial Statements
Statement of Cash Flow
For the Year Ended March 31, 2022
(thousands of dollars)
| 2022 | 2021 | |||||||
| Operating Activities |
||||||||
| Deficit |
(1,468,296 | ) | (1,127,033 | ) | ||||
| Non-cash items included in the deficit |
||||||||
| Net income from government business enterprises (schedule 3) |
(837,651 | ) | (1,278,141 | ) | ||||
| Other non-cash items included in the deficit (schedule 18) |
632,733 | 580,321 | ||||||
| Net change in non-cash operating activities (schedule 18) |
(942,951 | ) | (115,558 | ) | ||||
| Dividends received from government business enterprises (schedule 3) |
665,369 | 638,579 | ||||||
|
|
|
|
|
|||||
| Cash Used for Operating Activities |
(1,950,796 | ) | (1,301,832 | ) | ||||
|
|
|
|
|
|||||
| Capital Activities |
||||||||
| Acquisition of tangible capital assets (schedule 12) |
(948,554 | ) | (837,101 | ) | ||||
| Proceeds on disposal of tangible capital assets |
8,057 | 8,366 | ||||||
|
|
|
|
|
|||||
| Cash Used for Capital Activities |
(940,497 | ) | (828,735 | ) | ||||
|
|
|
|
|
|||||
| Investing Activities |
||||||||
| Net increase in loans receivable |
(55,036 | ) | (42,541 | ) | ||||
| Repayment of (increase in) equity advances to government business enterprises |
38,300 | (4,000 | ) | |||||
| Acquisition of other investments |
(188,481 | ) | (57,335 | ) | ||||
| Disposition of other investments |
146,543 | 74,343 | ||||||
| Sinking fund contributions for general debt (schedule 9) |
(196,701 | ) | (165,084 | ) | ||||
| Sinking fund redemptions for general debt (schedule 9) |
10,717 | 320,924 | ||||||
|
|
|
|
|
|||||
| Cash (Used for) Provided by Investing Activities |
(244,658 | ) | 126,307 | |||||
|
|
|
|
|
|||||
| Financing Activities |
||||||||
| Proceeds from general debt |
3,389,299 | 3,542,792 | ||||||
| Repayment of general debt |
(54,680 | ) | (1,366,433 | ) | ||||
| Decrease in obligations under long-term financing arrangements |
(33,270 | ) | (31,664 | ) | ||||
| Increase (decrease) in other liabilities1 |
27,295 | (14,295 | ) | |||||
|
|
|
|
|
|||||
| Cash Provided by Financing Activities |
3,328,644 | 2,130,400 | ||||||
|
|
|
|
|
|||||
| Increase in cash and temporary investments |
192,693 | 126,140 | ||||||
| Cash and temporary investments, beginning of year |
2,862,621 | 2,736,481 | ||||||
|
|
|
|
|
|||||
| Cash and Temporary Investments, End of Year 2 3 |
3,055,314 | 2,862,621 | ||||||
|
|
|
|
|
|||||
| 1 | Excludes the changes in unamortized debt related costs, which are classified as operating activities. |
| 2 | Comprised of: |
| 2022 | 2021 | |||||||
| Cash |
1,327,429 | 1,530,649 | ||||||
| Temporary investments |
1,727,885 | 1,331,972 | ||||||
|
|
|
|
|
|||||
| Cash and Temporary Investments, End of Year |
3,055,314 | 2,862,621 | ||||||
|
|
|
|
|
|||||
| 3 | Includes $10.4 million (2021 - $9.0 million - restated) segregated as a result of restrictions in agreements with external parties. |
The accompanying notes and schedules are an integral part of these financial statements.
48 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
1. Significant Accounting Policies
Basis of accounting
These Summary financial statements are prepared in accordance with Canadian public sector accounting standards issued by the Public Sector Accounting Board.
Government reporting entity
The government reporting entity consists of public sector entities (entities), which include government service organizations, government business enterprises and partnerships.
Government service organizations and government business enterprises are entities controlled by the Government. Controlled entities that are self-sufficient and have the financial and operating authority to sell goods and services to individuals and other organizations outside the government reporting entity as their principal activity are classified as government business enterprises. All other controlled entities are government service organizations.
A partnership exists when the Government has entered into a contractual arrangement with one or more partners outside the government reporting entity where these partners share control of governance decisions and, on an equitable basis, share the significant risks and benefits associated with operating the partnership.
A listing of the entities included in the government reporting entity is provided in schedule 19. Unless otherwise noted, the financial activities of all subsidiaries of these entities have also been included.
Trust funds
Trust funds consist of property conveyed or assigned to the Government, as trustee, by agreement or statute to administer on behalf of beneficiaries. Because trust funds are administered but not controlled by the Government, the funds are excluded from the government reporting entity and disclosed in note 5.
Method of consolidation
Government service organizations are consolidated after adjustment to a basis consistent with the accounting policies described in this note. Inter-entity balances and transactions, other than expensed provincial sales tax, are eliminated. Government service organizations in which a non-controlling interest exists are proportionately consolidated.
Government business enterprises are recorded using the modified equity method based on their results prepared in accordance with International Financial Reporting Standards. Using this method, the Government’s investment in government business enterprises, which is initially recorded at cost, is adjusted annually to include the Government’s proportionate share of net earnings or losses and certain other net equity changes of government business enterprises without adjustment to the accounting policies described in this note. With the exception of dividends and unrealized inter-entity gains and losses, inter-entity balances and transactions are not eliminated.
Partnerships are proportionately consolidated, at the ownership share disclosed in schedule 19, after adjustment to a basis consistent with the accounting policies described in this note. Inter-entity balances and transactions, other than expensed provincial sales tax, are eliminated.
Financial results of entities with fiscal year ends other than March 31 are adjusted for transactions occurring on or before March 31 that have a significant impact on these financial statements.
Specific accounting policies
Financial assets
Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations.
Temporary investments have terms to maturity of less than one year and due to their short-term nature, cost approximates market value.
Accounts receivable are initially recorded at cost. A valuation allowance is recognized when collection is uncertain.
Government of Saskatchewan Public Accounts 2021-22 49
Summary Financial Statements
Notes to the Financial Statements
1. Significant Accounting Policies (continued)
Loans receivable are initially recorded at cost. Where there has been a loss in value that is other than a temporary decline, the loan is written down to recognize the loss.
Other investments are recorded at cost, with the exception of pooled investment funds, which are recorded at market value. Investments recorded at cost are written down to market value when there is evidence of a permanent decline in value.
Other financial assets include inventories and other assets held for sale, which are valued at the lower of cost and net realizable value.
Liabilities
Liabilities are present obligations resulting from transactions and events occurring prior to year end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. Contingencies, including loss provisions on guaranteed debt, are recorded when it is likely that a liability exists and the amount can be reasonably estimated.
Accounts payable and accrued liabilities primarily include obligations to pay for goods and services acquired prior to year end and to provide authorized transfers where eligibility criteria are met. Obligations for contaminated sites are recorded net of any expected recoveries, using the Government’s best estimate of the amount required to remediate sites for which the Government is either directly responsible or has accepted responsibility. Accrued salaries and benefits include other employee future benefits which are recognized in the period the employees provide service.
Unearned revenue includes: government transfers with stipulations that meet the definition of a liability; amounts received in advance of taxes earned and goods or services provided; and contributions restricted for a stipulated purpose pursuant to an agreement with an external party. Amounts are recognized as: stipulations are met; taxes are earned or goods or services are provided; and contributions are used for the stipulated purposes.
Pension liabilities are calculated using the projected benefit method prorated on services, except as otherwise disclosed in note 4. Pension plan assets are valued at market-related values. Changes in pension liabilities resulting from 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. Amortization commences in the year following the determination of the adjustment. Gains or losses resulting from plan amendments are recognized in the period of the plan amendment.
General debt, recorded at par, is debt issued by government service organizations and includes issued amounts subsequently transferred to government business enterprises. Government business enterprise specific debt, which is disclosed separately on schedule 8, is debt issued by, or specifically on behalf of, government business enterprises.
Debenture issues that require contributions to a sinking fund are recorded at principal less sinking fund balances. Premiums and discounts on long-term investments within these sinking funds are amortized on a constant yield basis .
Obligations under long-term financing arrangements, represent the Government’s liability for public private partnership agreements (P3s) through which private sector proponents design, build, finance, operate and maintain certain of the Government’s tangible capital assets. The obligations are recorded on the percentage-of-completion basis over the period of construction of the P3 asset and are reduced by progress and capital payments made to the P3 partner. The percentage of completion is applied to the nominal value of progress payments and the present value of future capital payments, discounted to the date the asset is available for use, using the Government’s borrowing rate for general debt at the time the agreement is signed.
Other liabilities include unamortized debt-related costs, which is comprised of premiums and discounts, debt issue costs and foreign exchange gains and losses. These costs are deferred and amortized on a straight-line basis over the remaining life of the debt issue.
Non-financial assets
Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed and are not for sale in the normal course of operations. Non-financial assets are recorded at cost and expensed as they are consumed.
Inventories held for consumption are recorded at cost and are expensed as they are consumed.
50 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
1. Significant Accounting Policies (continued)
Tangible capital assets include all amounts directly attributable to the acquisition, construction, development or betterment of the asset. During construction, these assets are recorded based on their percentage of completion and are disclosed as work in progress. Amortization is generally on a straight-line basis over the estimated useful life of the asset and commences when the asset is put in service. Intangible assets, items inherited by right of the Crown such as Crown lands, forests, water and mineral resources, works of art and historical treasures are not recognized as assets in these financial statements as an estimate of their future economic benefits cannot be reasonably and verifiably quantified.
Tangible capital assets procured through P3s are valued at the total of the nominal value of progress payments made during or on completion of construction and the present value of the future capital payments, discounted to the date the asset is available for use, using the Government’s borrowing rate for general debt at the time the agreement is signed.
Revenue
Revenue, recorded on the accrual basis, represents economic resources earned by the Government from taxes and other sources that are used to deliver public services.
Taxation revenue is recognized when the tax has been authorized by the legislature and the taxable event occurs. The taxable event differs for each type of tax; for example, taxation revenue is recognized when taxpayers earn income, purchase products and services, or are in possession of real property. Tax concessions are recorded as a reduction in taxation revenue.
For individual and corporation income taxes, cash received from the federal government, adjusted for assessment data from the federal government when it provides a more reliable estimate, is used as the basis for recording the tax revenue.
Non-renewable resources revenue is recognized based on the production, sales or profits generated from the specific non-renewable resource. Oil and natural gas revenue is based primarily on price and production; resource surcharge revenue is based on sales volumes and prices; and potash revenue is based primarily on profits generated.
Transfers from the federal government are recognized as revenue in the period the transfer is authorized and eligibility criteria are met, except when and to the extent that the transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers meeting the definition of a liability are recorded as unearned revenue and recognized as the stipulations are met.
Expense
Expenses, recorded on the accrual basis, represent the Government’s cost to deliver public services and are classified by theme in the Statement of Operations and by object in Schedule 15, while Schedule 17 discloses expense themes by object. Transfers are recognized as expenses in the period the transfer is authorized and eligibility criteria are met.
Expenses classified by theme, which are based on the major functional groupings of activities, are as follows:
The agriculture theme includes expenses to assist and improve the agriculture and food industry through development activities including research, education, regulation and investment in the sector as well as providing direct support to farmers through loans, income stabilization and insurance programs.
The community development theme includes expenses to maintain and develop engaged and vibrant communities, including financial assistance and infrastructure funding to local governments and other authorities, which in turn provide community services. Community development also includes funding directed to specific community services such as sport, culture, arts, and heritage that improve quality of life.
The economic development theme includes expenses to strengthen, expand and diversify Saskatchewan’s economy as well as to promote trade and growth in export markets. The expenses arise from activities such as research, marketing, product development, financing, financial assistance, technology and infrastructure. Economic development also includes the strategic management of Saskatchewan’s non-renewable resources to support future economic activity.
The education theme includes expenses to develop and maintain a quality prekindergarten through post-secondary education system which is designed to impart knowledge and information, including activities that support and encourage ongoing learning and the acquisition of specialized skills as well as providing supports to help students be successful.
The environment and natural resources theme includes expenses to protect and improve the quality of the environment through: the management of fish, wildlife, forests and land; recycling; and the prevention and clean-up of environmental hazards.
Government of Saskatchewan Public Accounts 2021-22 51
Summary Financial Statements
Notes to the Financial Statements
1. Significant Accounting Policies (continued)
The financing charges theme includes expenses associated with general debt including interest, foreign exchange gains and losses, discounts and premiums, fees and commissions. It also includes financing costs related to pension and other employee future benefits liabilities, obligations under long-term financing arrangements such as public private partnerships and capital lease obligations.
The general government theme includes expenses for centralized government services including: government contributions to, and management of, employee benefit plans; property, vehicle and information technology management; the collection of government revenues; the formation of budgetary policy; the preparation and audit of the Government’s public accounts; and the constitutional, political and law enactment aspect of the Government.
The health theme includes expenses to support, maintain and restore the physical and mental health of Saskatchewan residents. Health expense primarily includes: the delivery of health services through acute, emergency, rehabilitative, long-term, community-based, and home-based care; cancer prevention, diagnosis and treatment programs; the prevention and control of infectious diseases; the subsidization of prescription drugs; and the education and promotion of healthy lifestyles.
The protection of persons and property theme includes expenses to promote and ensure the security, safety and protection of residents and property which is mainly achieved through a fair justice system, policing programs and supervision and rehabilitation services for offenders. Protection of persons and property also includes: services that promote, support and enforce safe work practices and employment standards; provincial emergency management through 911 services, public safety, disaster assistance and wildfire management; and victims’ services.
The social services and assistance theme includes expenses to provide financial assistance and services to individuals and families in need because of poverty, abuse, neglect and disability. This includes income support programs, accessible and safe housing, child protection services, adoption services and providing life’s needs to persons with intellectual disabilities.
The transportation theme includes expenses for the development, construction and maintenance of an integrated provincial transportation system using highways, rural roads, bridges, ferry crossings, airstrips and communication networks.
Schedule 19 identifies the entities included in each theme.
New accounting standards
A number of new and amended Canadian public sector accounting standards have been issued but not applied in preparing these financial statements. The Government plans to adopt these new and amended standards on the effective date and is currently analyzing the impact this will have on these financial statements.
Effective April 1, 2022:
PS 3450 Financial Instruments, a new standard establishing guidance on the recognition, measurement, presentation and disclosure of financial instruments, including derivatives.
PS 2601 Foreign Currency Translation, replaces PS 2600 with revised guidance on the recognition, presentation and disclosure of transactions that are denominated in a foreign currency.
PS 1201 Financial Statement Presentation, replaces PS 1200 with revised general reporting principles and standards of presentation and disclosure in government financial statements.
PS 3041 Portfolio Investments, replaces PS 3040 with revised guidance on accounting for, and presentation and disclosure of, portfolio investments.
PS 3280 Asset Retirement Obligations, a new standard establishing guidance on the recognition, measurement, presentation and disclosure of a liability for retirement of a tangible capital asset.
Effective April 1, 2023:
PS 3400 Revenue, a new standard establishing guidance on the recognition, measurement, presentation and disclosure of revenue.
PS 3160 Public Private Partnerships, a new standard establishing guidance on the recognition, measurement and disclosure of public private partnerships arrangements.
52 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
2. Measurement Uncertainty
The use of estimates and assumptions is integral in determining amounts to be recognized and disclosed in financial statements. Uncertainty that exists when there is another reasonably possible amount is known as measurement uncertainty. While best estimates are used for reporting items subject to measurement uncertainty, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require a material change in the amounts recognized or disclosed.
The impact of the COVID-19 pandemic adds an additional level of uncertainty for the measurement of certain amounts recorded in these financial statements, including the valuation of accounts receivable, loans receivable and certain investments.
Measurement uncertainty, disclosed in aggregate for government service organizations and government business enterprises, that may be material to these financial statements exists in the following recorded amounts:
| (thousands of dollars) | 2022 | 2021 | ||||||
| Pension liabilities1a |
6,549,867 | 6,773,508 | ||||||
| Insurance claim obligations1a |
4,458,622 | 4,132,308 | ||||||
| Individual and corporation income taxation revenue1b |
3,888,289 | 2,903,456 | ||||||
| Canada Health and Social transfers revenue1c |
1,808,969 | 1,761,712 | ||||||
| Investments1d |
1,408,748 | 1,221,968 | ||||||
| Potash non-renew able resource revenue1e |
1,266,848 | 421,619 | ||||||
| Oil and natural gas non-renew able resource revenue1f |
1,009,656 | 378,184 | ||||||
| Environmental obligations1g |
719,661 | 719,923 | ||||||
| Resource surchange revenue1h |
539,770 | 263,145 | ||||||
| Provincial Disaster Assistance program receivable1i |
290,005 | 223,400 | ||||||
| Unbilled utility receivable1j |
134,529 | 123,020 | ||||||
| Agricultural income stability program obligations1a |
96,030 | 80,369 | ||||||
| 1 | Uncertainty exists in the valuation of these amounts because: |
| a | actual experience may differ from actuarial or historical estimations; |
| b | final tax assessments may differ from initial economic estimates; |
| c | changes may occur in economic and demographic conditions in the Province and the country; |
| d | certain investments have no active market; |
| e | actual operating profits may differ from initial estimates; |
| f | price and production sensitivities in the royalty revenue structures may exist; |
| g | the existence and extent of contamination and the timing and cost of remediation cannot be reliably estimated in all cases; |
| h | final valuation of resource sales may differ from initial estimates; |
| i | actual settlement payments may differ from initial estimates; and |
| j | actual usage may differ from estimated usage. |
3. Risk Management of Investments and Debt
The Government, collectively through its government service organizations and government business enterprises, invests and borrows in both domestic and foreign capital markets. In doing so, the Government is exposed to interest rate risk, foreign exchange rate risk, price risk, credit risk and liquidity risk.
Interest rate risk is the risk of an unfavorable fluctuation in the Government’s investment income and financing charges due to changes in interest rates.
The Government manages this risk on its investments by setting asset mix guidelines that limit the extent to which interest rates impact the market value of the Government’s fixed income investments, such as bonds and debentures. It is estimated that a one per cent increase in interest rates would increase the Government’s deficit by $140.9 million (2021 - $140.0 million).
The Government manages this risk on its debt by issuing securities at predominantly fixed rates of interest rather than at floating rates of interest. Floating-rate debt primarily refers to floating-rate debentures, short-term promissory notes and fixed-rate debt maturing within one year. The Government seeks opportunities to effectively convert floating-rate debt into fixed-rate debt through the use of interest rate swaps. The Government has interest rate swaps on a notional value of debt of $195.4 million (2021 - $198.9 million). At March 31, 2022, 88.6 per cent (2021- 89.2 per cent) of the Government’s gross debt effectively carried a rate of interest that was fixed for greater than a one-year period.
Government of Saskatchewan Public Accounts 2021-22 53
Summary Financial Statements
Notes to the Financial Statements
3. Risk Management of Investments and Debt (continued)
Public debt includes floating-rate debt of $3,372.8 million (2021- $2,528.6 million). A one percentage point increase in interest rates would have increased the deficit by $33.7 million (2021- $25.3 million).
Foreign exchange rate risk is the risk that the Government’s investment income and financing charges will fluctuate unfavorably with a change in the value of the Canadian dollar relative to other currencies.
The Government manages this risk on its investments by defining maximum limits on exchange rate sensitive assets, such as foreign equities, in investment portfolios. It is estimated that a ten per cent appreciation in the Canadian dollar relative to other currencies would result in a $233.9 million (2021 - $262.1 million - restated) increase in the Government’s deficit.
The Government manages this risk on its debt by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, the Government seeks opportunities to effectively convert it into Canadian dollar debt through the use of cross-currency swaps. At March 31, 2022, 100.0 per cent (2021 - 100.0 per cent) of the Government’s gross debt is effectively denominated in Canadian dollars.
The following foreign denominated items have been hedged to Canadian dollars using cross-currency swaps:
| • | debentures of 300.0 million (2021- 300.0 million) U.S. dollars fully hedged to $384.0 million (2021- $384.0 million) Canadian; |
| • | debentures of 235.0 million (2021- 115.0 million) Euros fully hedged to $354.3 million (2021- $179.8 million) Canadian; and |
| • | debentures totaling 100.0 million (2021- nil) Swiss francs fully hedged to $137.9 million (2021- nil) Canadian. |
In total, the Government has cross-currency swaps on a notional value of debt of $997.7 million (2021- $685.3 million). The effectiveness of these hedges is assessed on an ongoing basis by monitoring the credit ratings of the counterparties to the hedges.
Price risk is the risk that the Government’s return on its investment portfolio will fluctuate unfavourably due to a decline in equity prices in Canadian and global markets.
The Government’s risk, resulting from its investments’ exposure to changes in equity prices, is managed by having geographically and industry diverse investment portfolios. In addition, the Government limits its investment concentration in any one investee or related group of investees to ten per cent of the investee’s share capital and ten per cent of the Government’s investment portfolio.
Credit risk is the risk that the Government may incur a loss from the failure of another party to meet its obligations.
For investments, the Government manages this risk through an investment policy that limits investments to high credit quality (minimum rating is BBB for bonds and debentures and R-1 for short-term investments) as well as limits the maximum exposure with respect to any one issuer.
For debt, the Government manages this risk for derivative financial instrument contracts by dealing only with counterparties that have good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2022, 94.5 per cent (2021- 95.2 per cent) of the notional value of the Government’s derivative financial instrument contracts is held by counterparties with a Standard and Poor’s credit rating of A or better.
Liquidity risk is the risk that the Government will not be able to meet its financial commitments over the short term.
The Government manages this risk on its debt by distributing debt maturities over many years, maintaining sinking funds in which the investment maturities approximate that of the underlying long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity.
54 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
4. Retirement Benefits
The Government sponsors several defined benefit pension plans and a defined contribution pension plan. The Government also participates in a joint defined benefit pension plan.
Defined benefit plans provide benefits based on length of service and pensionable earnings. A typical defined benefit plan provides pensions equal to 2.0 per cent of a member’s average five years’ highest salary, multiplied by the years of service to a maximum of 35 years. Employees contribute a percentage of salary, which may vary based on age, to their plan. Pensions and contribution rates are integrated with the Canada Pension Plan.
Actuarial valuations are performed at least triennially. When a valuation is not done in the current fiscal year an actuary extrapolates the most recent valuation. Valuations and extrapolations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates and short-term forecasts. Estimates vary based on the individual plan.
The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension plan assets are valued at market-related values based on the actual market values averaged over a four-year period.
Joint defined benefit plans are governed by formal agreements between the joint sponsors (i.e., participating employers and plan members) establishing that the joint sponsors have shared control over the plan. Funding contributions and significant risks of the plan are shared on an equitable basis between the joint sponsors. Accordingly, the Government accounts for only its portion of the plan. Plan assets and surpluses are restricted for member benefits or certain other purposes set out in the agreements. Plan benefits are determined on the same basis as defined benefit plans.
The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension plan assets are valued at market-related values by averaging the difference between the net investment income on a market-value basis and the expected investment income, based on expected rate of return on plan assets, over a five-year period.
Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. The Government provides contributions at specified rates for employee current service.
Pension plan assets of government sponsored defined benefit and defined contribution plans are invested in fixed income securities, equities, real estate, pooled investment funds and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans.
Government service organizations
Defined benefit plans and joint defined benefit plan
The two main defined benefit plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan, Anti-TB League Employees Superannuation Plan, and the Pension Plan for the Non-Teaching Employees of the Saskatoon School Division No.13 (PPNTE). Defined benefits are also payable to members of the former Members of the Legislative Assembly Superannuation Fund (MLA).
The Government is required to match employee current service contributions for all plans except the PSSP, Judges and PPNTE. Funding contributions are required for the PPNTE. Separate pension plan assets are maintained for TSP, Judges and PPNTE. For the other plans, employee contributions are received and pension obligations are paid directly by the Government.
The Government also participates in the Saskatchewan Healthcare Employees’ Pension Plan (SHEPP), a joint defined benefit plan for employees of the Saskatchewan Health Authority and certain other Government health entities. The Government participating employers contribute to the plan at the ratio of 1.12 to 1 of employee contributions and any actuarially determined deficiency is the responsibility of participating employers and employees at the same ratio. The Government portion of employer contributions represents approximately 98 per cent of total participating employer contributions to the plan.
Government of Saskatchewan Public Accounts 2021-22 55
Summary Financial Statements
Notes to the Financial Statements
4. Retirement Benefits (continued)
Information on the defined benefit plans and the joint defined benefit plan of government service organizations is as follows:
| 2022 | 2021 | |||||||||||||||||||||||
| TSP | PSSP | Others | SHEPP | Total | Total | |||||||||||||||||||
| Plan status |
closed | closed | closed | 1 | open | n/a | n/a | |||||||||||||||||
| Employee contribution rate (percentage of salary) |
7.85 | 7.00-9.00 | 2 | 5.00-8.10 | 2 | 8.10-10.70 | n/a | n/a | ||||||||||||||||
| Number of active employees |
41 | 12 | 1,104 | 38,906 | 40,063 | 39,603 | ||||||||||||||||||
| Average age of active employees (years) |
67.1 | 65.8 | 47.9 | 43.1 | 43.3 | 44.0 | ||||||||||||||||||
| Number of former employees entitled to deferred pension benefits |
4,638 | 1 | 182 | 2,004 | 6,825 | 7,051 | ||||||||||||||||||
| Number of superannuates and surviving spouses |
10,581 | 4,378 | 617 | 20,731 | 36,307 | 35,876 | ||||||||||||||||||
| Actuarial valuation date |
June 30/21 | Dec. 31/20 | Various | Dec. 31/20 | n/a | n/a | ||||||||||||||||||
| Long-term assumptions used |
||||||||||||||||||||||||
| Rate of compensation increase (percentage) |
2.00 | n/a | 3.00-3.25 | 2.75 | n/a | n/a | ||||||||||||||||||
| Expected rate of return on plan assets (percentage) |
4.10 | n/a | 4.70-6.05 | 6.00 | n/a | n/a | ||||||||||||||||||
| Discount rate (percentage) |
3.00 | 2.90 | 2.60-5.85 | 6.00 | n/a | n/a | ||||||||||||||||||
| Inflation rate (percentage) |
2.00 | 2.00 | 2.00-2.25 | 2.00 | n/a | n/a | ||||||||||||||||||
| Expected average remaining service life (years) |
0.20 | — | 9.00-12.00 | 12.90 | n/a | n/a | ||||||||||||||||||
| Post-retirement index (percentage of annual increase in Consumer Price Index) |
80 | 70 | Various | Ad hoc | n/a | n/a | ||||||||||||||||||
| 1 | Judges and PPNTE are open to new membership; all other plans are closed. |
| 2 | Contribution rate varies based on age upon joining the plan. |
Defined contribution plans
The Government sponsors the Public Employees Pension Plan (PEPP). The Government provides contributions to the plan at specified rates for employee current service. The Government also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP) which is sponsored by the Saskatchewan Teachers’ Federation, as well as the Municipal Employees’ Pension Plan (MEPP) and the Regina Civic Employees’ Superannuation and Benefit Plan (RCESP). The Government has fully funded its share of contributions to the defined contribution plans.
Information on the defined contribution plans of government service organizations is as follows:
| 2022 | 2021 | |||||||||||||||||||||||
| PEPP | STRP 1 | MEPP 2 | RCESP 3 | Total | Total | |||||||||||||||||||
| Government Sponsored |
||||||||||||||||||||||||
| Plan status |
open | open | open | open | n/a | n/a | ||||||||||||||||||
| Employee contribution rate (percentage of salary) |
5.00-9.00 | 4 | 9.50-11.70 | 9.00 | 8.80-13.10 | n/a | n/a | |||||||||||||||||
| Government contribution rate (percentage of salary) |
5.00-11.50 | 4 | 7.25-9.25 | 9.00 | 9.80-14.60 | n/a | n/a | |||||||||||||||||
| Government service organization participation |
||||||||||||||||||||||||
| Number of active employees |
19,253 | 15,472 | 10,089 | 2,271 | 47,085 | 45,980 | ||||||||||||||||||
| Employee contributions (thousands of dollars) |
95,124 | 117,614 | 27,623 | 10,547 | 250,908 | 239,893 | ||||||||||||||||||
| Government contributions (thousands of dollars) |
111,085 | 91,942 | 27,645 | 11,747 | 242,419 | 232,250 | ||||||||||||||||||
| 1 | Teachers employed by Boards of Education after July 1, 1980 participate in the STRP, a contributory defined benefit pension plan. The Government contributes an amount which is set through provincial negotiations. |
| 2 | Certain employees of Boards of Education and Regional Colleges participate in the MEPP, a multi-employer defined benefit plan. All costs, including costs of any actuarially determined deficiency, are equally shared by the employers and employees. At December 31, 2021, audited financial statements for the MEPP reported an accrued benefit obligation of $2,399.5 million (2020 - $2,359.2 million) and plan assets at market value of $3,543.9 million (2020 - $3,198.1 million). The fair value of plan assets declined to $3,396.8 million at March 31, 2022. |
| 3 | Certain employees of the Saskatchewan Health Authority and a Board of Education participate in the RCESP, a multi-employer defined benefit plan. Amended provisions effective January 1, 2016 require the actuarially determined deficiency as at December 31, 2014 to be amortized over a period of no more than 20 years. The pre-amendment deficiency will be funded through participating employer and employee contributions at a rate of 60 per cent and 40 per cent respectively and any future deficits funded on a 50:50 basis. At December 31, 2021, audited financial statements for the RCESP reported an accrued benefit obligation of $1,633.8 million (2020 - $1,570.1 million) and plan assets at market value of $1,835.8 million (2020- $1,718.1 million). The fair value of plan assets declined to $1,742.5 million at March 31, 2022. |
| 4 | Contribution rate varies based on employee group. |
56 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
4. Retirement Benefits (continued)
Pension expense
The total pension expense of government service organizations includes the following:
| (thousands of dollars) | 2022 | 2021 | ||||||
| Defined benefit plans |
||||||||
| Current period benefit cost |
19,894 | 16,878 | ||||||
| Amortization of estimation adjustments |
78,501 | (360,143 | ) | |||||
| Employee contributions |
(4,966 | ) | (4,154 | ) | ||||
| Change in valuation allowance |
4,515 | (469 | ) | |||||
| Pension interest cost (schedule 16) |
169,379 | 188,600 | ||||||
|
|
|
|
|
|||||
| Pension expense (recovery), defined benefit plans |
267,323 | (159,288 | ) | |||||
| Other plans |
||||||||
| Pension expense, joint defined benefit plan |
190,182 | 180,064 | ||||||
| Pension expense, defined contribution plans |
242,419 | 232,250 | ||||||
|
|
|
|
|
|||||
| Total Pension Expense (schedule 17) |
699,924 | 253,026 | ||||||
|
|
|
|
|
|||||
Government business enterprises
Defined benefit plans
There are additional pension plans which are accounted for in the investment in government business enterprises. The two main defined benefit plans of government business enterprises are the Power Corporation Superannuation Plan (SaskPower) and the Saskatchewan Telecommunications Pension Plan (SaskTel). Other plans include the Saskatchewan Government Insurance Superannuation Plan, and the Liquor Board Superannuation Plan.
The Government contributes the amount necessary to fund the payment of pension benefits.
Information on the defined benefit plans of government business enterprises is as follows:
| 2022 | 2021 | |||||||||||||||||||
| SaskPower | SaskTel | Others | Total | Total | ||||||||||||||||
| Plan status |
closed | closed | closed | n/a | n/a | |||||||||||||||
| Number of active employees |
7 | 8 | 1 | 16 | 24 | |||||||||||||||
| Number of former employees, superannuates and surviving spouses |
1,547 | 1,794 | 231 | 3,572 | 3,667 | |||||||||||||||
| Employee contributions (thousands of dollars) |
— | — | 2 | 2 | 2 | |||||||||||||||
| Government contributions (thousands of dollars) |
— | — | 2,522 | 2,522 | 3,597 | |||||||||||||||
| Benefits paid (thousands of dollars) |
58,555 | 63,366 | 5,481 | 127,402 | 133,171 | |||||||||||||||
| Actuarial valuation date |
Dec. 31/19 | Mar. 31/20 | Various | n/a | n/a | |||||||||||||||
| Long-term assumptions used |
||||||||||||||||||||
| Discount rate (percentage) |
3.90 | 3.90 | 3.90-4.10 | n/a | n/a | |||||||||||||||
| Inflation rate (percentage) |
2.00 | 2.25 | 2.00 | n/a | n/a | |||||||||||||||
| Post-retirement index (percentage of annual increase in Consumer Price Index) |
70 | 100 | Various | n/a | n/a | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Government of Saskatchewan Public Accounts 2021-22 57
Summary Financial Statements
Notes to the Financial Statements
4. Retirement Benefits (continued)
Based on the latest actuarial valuation with extrapolations to the government business enterprises’ year ends, the present value of the accrued benefit obligation and the fair value of plan assets are shown in the table below:
| (thousands of dollars) | 2022 | 2021 | ||||||||||||||||||
| SaskPower | SaskTel | Others | Total | Total | ||||||||||||||||
| Accrued benefit obligation |
726,024 | 887,521 | 62,967 | 1,676,512 | 1,891,403 | |||||||||||||||
| Fair value of plan assets |
639,737 | 984,864 | 36,560 | 1,661,161 | 1,733,673 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Plan Deficit (Surplus) |
86,287 | (97,343 | ) | 26,407 | 15,351 | 157,730 | ||||||||||||||
| Valuation allowance |
— | 97,343 | 3,324 | 100,667 | 39,933 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Pension Liabilities |
86,287 | — | 29,731 | 116,018 | 197,663 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Defined contribution plan
Information on government business enterprises’ participation in PEPP is as follows:
| 2022 | 2021 | |||||||
| Plan status |
open | open | ||||||
| Employee contribution rate (percentage of salary) 1 |
4.45-8.60 | 4.45-8.60 | ||||||
| Government contribution rate (percentage of salary) 1 |
5.50-11.00 | 5.50-11.00 | ||||||
| Government business enterprise participation |
||||||||
| Number of active employees |
12,597 | 12,377 | ||||||
| Government contributions (thousands of dollars) |
72,454 | 70,416 | ||||||
| 1 | Contribution rate varies based on employee group. |
Pension expense
Pension expense for government business enterprises is included in net income from government business enterprises. The total pension expense of government business enterprises includes the following:
| (thousands of dollars) | 2022 | 2021 | ||||||
| Defined benefit plans |
5,147 | 7,311 | ||||||
| Defined contribution plan |
72,454 | 70,416 | ||||||
|
|
|
|
|
|||||
| Total Pension Expense |
77,601 | 77,727 | ||||||
|
|
|
|
|
|||||
| Net Pension Gain Included in Other Comprehensive Income |
(84,268 | ) | (7,410 | ) | ||||
|
|
|
|
|
|||||
58 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
5. Trust Funds
Trust fund assets held and administered by the Government are as follows:
| (thousands of dollars) | 2022 | 2021 | ||||||
| (Restated) | ||||||||
| Pension plans and annuity funds |
18,664,455 | 18,256,453 | ||||||
| Employee benefit plans |
713,473 | 681,956 | ||||||
| Public Guardian and Trustee of Saskatchewan |
297,770 | 291,040 | ||||||
| Other |
50,056 | 85,272 | ||||||
|
|
|
|
|
|||||
| Total Trust Fund Assets1 |
19,725,754 | 19,314,721 | ||||||
|
|
|
|
|
|||||
| 1 | Amounts are based on the latest available financial statements of the funds closest to March 31, 2022. |
6. Contractual Rights and Obligations
Contractual Rights
The Government has the following contractual rights reported by the year the amounts are expected to be recognized:
| (thousands of dollars ) | 2022 | 2021 | ||||||||||||||||||||||||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | Total | |||||||||||||||||||||||||
| (Restated) | ||||||||||||||||||||||||||||||||
| Governmental Service Organizations |
||||||||||||||||||||||||||||||||
| Transfers from the federal government |
||||||||||||||||||||||||||||||||
| Operating1 |
438,829 | 343,270 | 373,378 | 397,814 | 77,364 | 103,499 | 1,734,154 | 882,609 | ||||||||||||||||||||||||
| Capital |
171,244 | 232,065 | 262,511 | 169,265 | 95,890 | 37,312 | 968,287 | 1,089,910 | ||||||||||||||||||||||||
| Other own-source revenue |
||||||||||||||||||||||||||||||||
| Fees |
||||||||||||||||||||||||||||||||
| Real property sales and leases |
62,990 | 22,491 | 20,224 | 15,338 | 12,205 | 116,714 | 249,962 | 259,531 | ||||||||||||||||||||||||
| Other fees |
18,689 | 4,746 | 2,288 | 1,751 | 1,038 | 3,377 | 31,889 | 37,737 | ||||||||||||||||||||||||
| Other |
2,000 | — | — | — | — | — | 2,000 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Government Service Organizations |
693,752 | 602,572 | 658,401 | 584,168 | 186,497 | 260,902 | 2,986,292 | 2,269,787 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Government Business Enterprises |
||||||||||||||||||||||||||||||||
| Liquor and gaming sector2 |
72,100 | 83,400 | 85,600 | 87,200 | 88,300 | — | 416,600 | 381,000 | ||||||||||||||||||||||||
| Utility sector |
188,156 | 41,576 | 38,278 | 5,359 | 2,365 | 2,725 | 278,459 | 272,543 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Government Business Enterprises |
260,256 | 124,976 | 123,878 | 92,559 | 90,665 | 2,725 | 695,059 | 653,543 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Contractual Rights3 |
954,008 | 727,548 | 782,279 | 676,727 | 277,162 | 263,627 | 3,681,351 | 2,923,330 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 1 | The contractual rights for federal operating transfer agreements with no expiration date include estimated revenue for up to 10 contract years. Contractual rights beyond this could be significant. |
| 2 | A gaming agreement has an expiration date that extends to 2037; however, amounts for contractual rights beyond 2027 are not included. The contractual rights beyond 2027 for this agreement could be significant. |
| 3 | The Government has contractual rights that could be significant, but are not included in the table above, as the expected revenues cannot be reasonably estimated. These rights include: Canadian Agricultural Partnership, for which transfers from the federal government are based on crop yields each year; private reinsurance agreements, for which insurance recovery revenue arises from catastrophic events (e.g., severe weather); and forest management agreements, for which licensees pay fees based on the cubic meter harvested. |
Government of Saskatchewan Public Accounts 2021-22 59
Summary Financial Statements
Notes to the Financial Statements
6. Contractual Rights and Obligations (continued)
Contractual Obligations
The Government has the following contractual obligations reported by the year the amounts are expected to be recognized:
| (thousands of dollars ) | 2022 | 2021 | ||||||||||||||||||||||||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | Total | |||||||||||||||||||||||||
| Governmental Service Organizations |
||||||||||||||||||||||||||||||||
| Transfers |
||||||||||||||||||||||||||||||||
| Policing |
231,814 | 217,968 | 223,402 | 228,785 | 233,931 | 1,253,718 | 2,389,618 | 2,400,298 | ||||||||||||||||||||||||
| Post secondary education |
433,935 | 411,389 | 410,737 | — | — | — | 1,256,061 | 1,675,177 | ||||||||||||||||||||||||
| Social supports and services |
376,969 | 196,562 | 89,097 | — | — | — | 662,628 | 643,985 | ||||||||||||||||||||||||
| Capital |
252,230 | 119,031 | 75,345 | 33,350 | 5,679 | — | 485,635 | 285,240 | ||||||||||||||||||||||||
| Health and medical services and supports |
127,066 | 64,478 | 58,216 | 51,707 | 51,457 | 94 | 353,018 | 398,048 | ||||||||||||||||||||||||
| Gaming |
54,413 | 65,363 | 73,263 | 76,462 | 81,287 | — | 350,788 | 299,267 | ||||||||||||||||||||||||
| Research and development |
143,441 | 20,728 | 7,387 | 2,899 | 697 | — | 175,152 | 161,935 | ||||||||||||||||||||||||
| Beverage container collection and recycling |
35,536 | 36,554 | — | — | — | — | 72,090 | 107,164 | ||||||||||||||||||||||||
| Other |
71,843 | 40,574 | 7,915 | 6,553 | 3,881 | 4,232 | 134,998 | 167,452 | ||||||||||||||||||||||||
| Operation, maintenance and life cycle rehabilitation payments under P3s |
24,587 | 24,979 | 25,626 | 26,150 | 28,913 | 986,215 | 1,116,470 | 1,155,643 | ||||||||||||||||||||||||
| Service agreements |
||||||||||||||||||||||||||||||||
| Computer |
173,514 | 79,369 | 56,368 | 43,886 | 17,233 | 2,222 | 372,592 | 228,218 | ||||||||||||||||||||||||
| Transportation |
36,335 | 24,789 | 15,607 | 13,020 | 8,121 | 8,628 | 106,500 | 87,131 | ||||||||||||||||||||||||
| Emergency communications |
14,454 | 14,009 | 12,625 | 12,496 | 12,603 | 13,055 | 79,242 | 94,117 | ||||||||||||||||||||||||
| Other |
48,261 | 24,645 | 17,122 | 10,768 | 5,679 | 19,825 | 126,300 | 91,949 | ||||||||||||||||||||||||
| Construction and acquisition of tangible capital assets |
504,857 | 65,228 | 2,990 | 107 | 69 | — | 573,251 | 565,785 | ||||||||||||||||||||||||
| Operating lease agreements |
89,313 | 71,849 | 51,955 | 38,054 | 23,604 | 96,083 | 370,858 | 381,346 | ||||||||||||||||||||||||
| Other |
71,672 | 4,154 | — | — | — | 5,690 | 81,516 | 60,133 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Government Service Organizations1 |
2,690,240 | 1,481,669 | 1,127,655 | 544,237 | 473,154 | 2,389,762 | 8,706,717 | 8,802,888 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Government Business Enterprises |
||||||||||||||||||||||||||||||||
| Forward purchase contracts |
||||||||||||||||||||||||||||||||
| Power |
303,486 | 349,311 | 394,165 | 379,228 | 385,013 | 8,306,767 | 10,117,970 | 9,828,829 | ||||||||||||||||||||||||
| Coal |
247,194 | 255,806 | 206,581 | 72,488 | 73,956 | 133,697 | 989,722 | 1,084,740 | ||||||||||||||||||||||||
| Natural gas |
187,020 | 133,664 | 133,843 | 118,000 | 112,264 | 161,811 | 846,602 | 980,699 | ||||||||||||||||||||||||
| Other |
— | — | — | — | — | — | — | 3,486 | ||||||||||||||||||||||||
| Construction, acquisition and maintenance of capital assets |
1,598,984 | 340,090 | 256,574 | 165,745 | 106,675 | 447,386 | 2,915,454 | 3,744,623 | ||||||||||||||||||||||||
| Service agreements |
125,678 | 13,060 | 8,666 | 7,097 | 5,281 | — | 159,782 | 109,847 | ||||||||||||||||||||||||
| Other |
4,468 | 3,974 | 3,949 | 3,828 | 3,708 | 3,546 | 23,473 | 23,377 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Government Business Enterprises |
2,466,830 | 1,095,905 | 1,003,778 | 746,386 | 686,897 | 9,053,207 | 15,053,003 | 15,775,601 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Contractual Obligations |
5,157,070 | 2,577,574 | 2,131,433 | 1,290,623 | 1,160,051 | 11,442,969 | 23,759,720 | 24,578,489 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 1 | Contractual obligations for government service organizations by theme are as follows: |
| 2022 | 2021 | |||||||
| Protection of persons and property |
2,579,784 | 2,629,475 | ||||||
| Education |
1,680,647 | 2,037,902 | ||||||
| Transportation |
990,339 | 1,114,385 | ||||||
| Health |
902,328 | 943,110 | ||||||
| Community development |
845,727 | 577,778 | ||||||
| Social services and assistance |
728,414 | 708,393 | ||||||
| General government |
596,764 | 388,433 | ||||||
| Environment and natural resources |
232,864 | 245,188 | ||||||
| Agriculture |
95,760 | 94,129 | ||||||
| Economic development |
54,090 | 64,095 | ||||||
|
|
|
|
|
|||||
| 8,706,717 | 8,802,888 | |||||||
|
|
|
|
|
|||||
60 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Notes to the Financial Statements
7. Contingencies
Contingent Assets
The Government has instituted claims against tobacco and opioid manufacturers for the recovery of health care benefits paid as a result of tobacco and opioid consumption and opioid marketing. The amount of the potential recovery cannot be estimated.
Contingent Liabilities
The Government is involved in various legal actions, the outcome of which is not determinable. Up to $107.9 million (2021 - $93.2 million) may be paid depending on the outcome of lawsuits in progress which include aboriginal land claims, claims for damages to persons and property and disputes over taxes and funding.
The Government also has up to $4.8 million (2021 - $11.6 million) in other contingent liabilities that are dependent on environmental remediation and guaranteed debt repayments.
8. Adjustment to Accumulated Deficit
During 2021-22, a liability was recorded for certain salt and fuel storage sites that met the criteria for a liability for remediation of contaminated sites in prior years. The liability was accounted for retroactively without restatement of prior periods and resulted in an increase to accounts payable and accrued liabilities and opening accumulated deficit of $87.8 million.
During 2020-21, there was an increase in the accumulated deficit, beginning of year of $32.4 million as a result of the removal of accumulated provincial sales tax paid on the acquisition of certain tangible capital assets, which resulted in a corresponding decrease to tangible capital assets.
9. Impact of COVID-19 Pandemic
During 2021-22, the provincial state of emergency and public health measures related to the COVID-19 pandemic were lifted. The global outlook tied to the pandemic continues to be uncertain, particularly with the challenges of new variants, inflationary pressures and supply chain disruptions. While Saskatchewan showed a strong recovery from the economic fallout of the pandemic, the impact of COVID-19 is ongoing and its effect on future results cannot be reasonably determined at this time.
10. Comparative Figures
Certain 2021 comparative figures have been reclassified to conform with the current year’s presentation.
Government of Saskatchewan Public Accounts 2021-22 61
Summary Financial Statements
| Accounts Receivable | Schedule 1 | |||||
| As at March 31, 2022 |
| |||||
| (thousands of dollars) | ||||||
| 2022 | 2021 | |||||||
| Taxation |
605,312 | 606,137 | ||||||
| Non-renewable resources |
445,401 | 160,373 | ||||||
| Other own-source |
883,885 | 738,709 | ||||||
| Transfers from the federal government |
557,864 | 431,392 | ||||||
|
|
|
|
|
|||||
| 2,492,462 | 1,936,611 | |||||||
| Provision for loss |
(205,119 | ) | (181,745 | ) | ||||
|
|
|
|
|
|||||
| Total Accounts Receivable |
2,287,343 | 1,754,866 | ||||||
|
|
|
|
|
|||||
62 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Loans Receivable | Schedule 2 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Student loans1 |
390,691 | 332,908 | ||||||
| Loans to government business enterprises2 |
237,431 | 240,768 | ||||||
| Other3 |
16,237 | 15,647 | ||||||
|
|
|
|
|
|||||
| 644,359 | 589,323 | |||||||
| Provision for loss |
(90,892 | ) | (85,550 | ) | ||||
|
|
|
|
|
|||||
| Total Loans Receivable |
553,467 | 503,773 | ||||||
|
|
|
|
|
|||||
| 1 | Student loans are interest free until the discontinuance of full-time studies or graduation. Interest rates are prescribed by the Government and range between 2.7 and 2.9 per cent (2021 - 2.4 and 2.9 per cent). Student grants and other varieties of loan forgiveness are available to students who meet specific criteria. |
The administration and delivery of the federal and provincial student loans programs is integrated. The Government approves applications for both provincial and federal loans. External agencies are contracted to disburse, administer and collect loans, and the federal government is responsible for collection of loans in default.
A loss provision of $78.7 million (2021 - $73.7 million) has been recorded on these loans.
| 2 | The Government has $275.0 million (2021 - $275.0 million) in loans receivable from government business enterprises repayable over 18 to 23 years and bearing interest between 3.9 and 4.8 per cent (2021 - 3.9 and 4.8 per cent). The loans are recorded net of $37.6 million (2021 - $34.2 million) for the government business enterprises’ equity in sinking funds administered by the Government. |
| 3 | Other consists of numerous loans at various interest rates and maturities. Security on other loans varies and may include promissory notes, mortgages on real property, security agreements or guarantees. A loss provision of $12.2 million (2021 - $11.8 million) has been recorded on these loans. |
Government of Saskatchewan Public Accounts 2021-22 63
Summary Financial Statements
Investment in Government Business Enterprises
As at March 31, 2022
(thousands of dollars)
| Utility | ||||||||||||||||||||
| SaskEnergy | SaskPower | SaskTel | SaskWater | Sask Gov’t Insurance |
||||||||||||||||
| Assets |
||||||||||||||||||||
| Cash and cash equivalents |
2,059 | 31,915 | 20,628 | 2,521 | 53,492 | |||||||||||||||
| Accounts receivable |
198,565 | 362,224 | 183,578 | 10,671 | 363,698 | |||||||||||||||
| Inventories and prepaid expenses |
22,294 | 332,990 | 148,338 | 1,221 | 179,367 | |||||||||||||||
| Investments3 |
— | — | — | — | 1,351,320 | |||||||||||||||
| Capital assets |
2,957,220 | 10,649,105 | 2,131,057 | 342,606 | 26,041 | |||||||||||||||
| Intangible assets |
69,178 | 77,420 | 399,879 | — | 3,670 | |||||||||||||||
| Sinking funds |
145,850 | 738,253 | 95,447 | 13,289 | — | |||||||||||||||
| Other assets |
121,529 | 36,970 | 104,603 | 278 | 5,336 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Assets4 |
3,516,695 | 12,228,877 | 3,083,530 | 370,586 | 1,982,924 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities |
||||||||||||||||||||
| Accounts payable and accrued liabilities |
124,738 | 752,648 | 172,666 | 6,081 | 127,172 | |||||||||||||||
| Dividends payable to government entities |
11,276 | 3,200 | 26,467 | 2,191 | 5,000 | |||||||||||||||
| Gross debt |
1,895,390 | 7,094,393 | 1,550,051 | 88,703 | — | |||||||||||||||
| Unearned revenue |
23,973 | 22,069 | 78,162 | 191,720 | 557,577 | |||||||||||||||
| Provision for insurance claims |
— | — | — | — | 740,299 | |||||||||||||||
| Other liabilities7 |
226,724 | 1,397,304 | 62,460 | 3,702 | 23,553 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Liabilities4 |
2,282,101 | 9,269,614 | 1,889,806 | 292,397 | 1,453,601 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Assets (Debt) |
1,234,594 | 2,959,263 | 1,193,724 | 78,189 | 529,323 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Revenue |
||||||||||||||||||||
| Operating |
924,142 | 2,884,894 | 1,301,744 | 65,664 | 1,160,149 | |||||||||||||||
| Investment income |
— | 555 | 7,206 | 97 | 32,316 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Revenue4 |
924,142 | 2,885,449 | 1,308,950 | 65,761 | 1,192,465 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expense |
||||||||||||||||||||
| Operating |
711,868 | 2,479,414 | 1,169,872 | 54,677 | 461,573 | |||||||||||||||
| Insurance claims |
— | — | — | — | 648,508 | |||||||||||||||
| Financing charges5 |
53,996 | 395,312 | 34,644 | 2,432 | 612 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Expense4 |
765,864 | 2,874,726 | 1,204,516 | 57,109 | 1,110,693 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from operations |
158,278 | 10,723 | 104,434 | 8,652 | 81,772 | |||||||||||||||
| Unusual items4 |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income from Government Business Enterprises |
158,278 | 10,723 | 104,434 | 8,652 | 81,772 | |||||||||||||||
| Retained earnings (loss), beginning of year |
1,085,210 | 2,235,231 | 848,866 | 68,173 | 429,160 | |||||||||||||||
| Adjustment to retained earnings (loss)6 |
— | — | — | — | — | |||||||||||||||
| Dividends to government entities |
(21,532 | ) | (3,200 | ) | (93,990 | ) | (6,489 | ) | (57,500 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Retained earnings, end of year |
1,221,956 | 2,242,754 | 859,310 | 70,336 | 453,432 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accumulated other comprehensive income (loss), beginning of year |
(1,520 | ) | 24,931 | 102,666 | (158 | ) | (4,595 | ) | ||||||||||||
| Adjustment to accumulated other comprehensive income (loss)6 |
— | — | — | — | — | |||||||||||||||
| Other comprehensive income (loss) |
(7,373 | ) | 98,578 | (5,252 | ) | (689 | ) | 486 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accumulated other comprehensive income (loss), end of year |
(8,893 | ) | 123,509 | 97,414 | (847 | ) | (4,109 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Equity advances from government entities |
21,531 | 593,000 | 237,000 | 8,700 | 80,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Investment in Government Business Enterprises |
1,234,594 | 2,959,263 | 1,193,724 | 78,189 | 529,323 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1 | Net assets are: |
| a | held on behalf of Saskatchewan’s motoring public and cannot be used for any other purpose; and |
| b | maintained in an injury fund and cannot be used for any other purpose. |
| 2 | Adjustments primarily include: |
| • | the change in the value of Workers’ Compensation Board (Saskatchewan) investment portfolio to reflect market volatility in the first quarter of 2022; and |
| • | the elimination of unrealized inter-entity gains and losses. |
| 3 | Includes bonds and debentures of $2,471.6 million (2021 - $2,355.3 million) that bear interest at rates up to 7.2 per cent (2021 - up to 7.2 per cent) and have maturity dates up to 60.2 years (2021 - up to 56.5 years). |
| 4 | Total assets include $1,149.0 million (2021 - $1,242.1 million) due from or invested in public sector entities (entities); total liabilities include $10,967.7 million (2021 - $10,538.0 million) in gross debt owing to entities and $398.9 million (2021 - $377.0 million) in accounts payable or services due to entities; total revenue includes $445.0 million (2021 - $366.8 million) from entities; total expense includes $833.3 million (2021 - $806.9 million - restated) paid and owing to entities and unusual items include nil (2021 - $2.4 million in expenses to entities). |
| 5 | Financing charges is reported net of sinking fund earnings. Interest in the amount of $353.0 million (2021 - $357.8 million) was paid and owing to entities. |
| 6 | Adjustment for 2020-21 represents the wind-up of a defined benefit pension plan. |
64 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Schedule 3
| 2022 | 2021 | |||||||||||||||||||||||||||||
| Insurance & Financing | Liquor & Gaming | |||||||||||||||||||||||||||||
| Sask Auto Fund1a |
Workers’ Comp.1b |
Municipal Financing Corp. |
Sask Liquor & Gaming Authority |
Sask Gaming Corp. |
Adjustments2 |
Total | Total | |||||||||||||||||||||||
| 17,618 | 46,357 | 382 | 42,795 | 22,299 | — | 240,066 | 504,949 | |||||||||||||||||||||||
| 321,968 | 12,982 | 2,945 | 76,632 | 90 | — | 1,533,353 | 1,412,860 | |||||||||||||||||||||||
| 51,259 | 887 | — | 26,193 | 977 | — | 763,526 | 705,064 | |||||||||||||||||||||||
| 3,237,384 | 2,296,990 | 253,086 | — | — | (84,915 | ) | 7,053,865 | 6,746,058 | ||||||||||||||||||||||
| 51,403 | 9,763 | — | 128,536 | 68,565 | 11,220 | 16,375,516 | 15,914,703 | |||||||||||||||||||||||
| 9,516 | 3,639 | — | 18,899 | — | — | 582,201 | 448,549 | |||||||||||||||||||||||
| — | — | 17,791 | — | — | — | 1,010,630 | 1,114,967 | |||||||||||||||||||||||
| — | — | — | 525 | — | — | 269,241 | 132,586 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 3,689,148 | 2,370,618 | 274,204 | 293,580 | 91,931 | (73,695 | ) | 27,828,398 | 26,979,736 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 191,859 | 18,284 | 1,145 | 23,006 | 16,343 | — | 1,433,942 | 1,448,125 | |||||||||||||||||||||||
| — | — | — | 126,316 | — | — | 174,450 | 166,938 | |||||||||||||||||||||||
| — | — | 254,088 | 89,902 | — | — | 10,972,527 | 10,542,851 | |||||||||||||||||||||||
| 412,663 | — | — | — | — | (33,364 | ) | 1,252,800 | 1,221,073 | ||||||||||||||||||||||
| 2,033,367 | 1,748,964 | — | — | — | — | 4,522,630 | 4,145,787 | |||||||||||||||||||||||
| — | 8,478 | — | 53,697 | 3,983 | — | 1,779,901 | 1,988,246 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 2,637,889 | 1,775,726 | 255,233 | 292,921 | 20,326 | (33,364 | ) | 20,136,250 | 19,513,020 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,051,259 | 594,892 | 18,971 | 659 | 71,605 | (40,331 | ) | 7,692,148 | 7,466,716 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,181,763 | 259,480 | — | 1,068,190 | 77,785 | 38,546 | 8,962,357 | 8,321,997 | |||||||||||||||||||||||
| 108,746 | 254,076 | 8,661 | — | — | (84,915 | ) | 326,742 | 916,978 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,290,509 | 513,556 | 8,661 | 1,068,190 | 77,785 | (46,369 | ) | 9,289,099 | 9,238,975 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 256,517 | 85,823 | 52 | 589,010 | 67,791 | 1,626 | 5,878,223 | 5,489,588 | |||||||||||||||||||||||
| 983,616 | 354,892 | — | — | — | — | 1,987,016 | 1,668,073 | |||||||||||||||||||||||
| — | 192 | 7,518 | 1,803 | 445 | — | 496,954 | 518,173 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,240,133 | 440,907 | 7,570 | 590,813 | 68,236 | 1,626 | 8,362,193 | 7,675,834 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 50,376 | 72,649 | 1,091 | 477,377 | 9,549 | (47,995 | ) | 926,906 | 1,563,141 | ||||||||||||||||||||||
| (89,255) | — | — | — | — | (89,255 | ) | (285,000 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|||||||||||||||
| (38,879) | 72,649 | 1,091 | 477,377 | 9,549 | (47,995 | ) | 837,651 | 1,278,141 | ||||||||||||||||||||||
| 1,090,138 | 522,243 | 17,563 | 1,011 | 46,356 | 7,664 | 6,351,615 | 5,713,279 | |||||||||||||||||||||||
| — | — | — | — | — | — | — | (1,226 | ) | ||||||||||||||||||||||
| — | — | — | (482,658 | ) | — | — | (665,369 | ) | (638,579 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,051,259 | 594,892 | 18,654 | (4,270 | ) | 55,905 | (40,331 | ) | 6,523,897 | 6,351,615 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| — | — | 1,038 | (1,492 | ) | — | — | 120,870 | 136,543 | ||||||||||||||||||||||
| — | — | — | — | — | — | — | 1,226 | |||||||||||||||||||||||
| — | — | (721 | ) | 6,421 | — | — | 91,450 | (16,899 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| — | — | 317 | 4,929 | — | — | 212,320 | 120,870 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| — | — | — | — | 15,700 | — | 955,931 | 994,231 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 1,051,259 | 594,892 | 18,971 | 659 | 71,605 | (40,331 | ) | 7,692,148 | 7,466,716 | ||||||||||||||||||||||
|
|
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|
|||||||||||||||
| 7 | Capital lease obligations, reported in other liabilities above, have the following payment schedule: |
| (thousands of dollars) | 2022 | 2021 | ||||||
| 2021-22 |
— | 199,092 | ||||||
| 2022-23 |
202,400 | 198,681 | ||||||
| 2023-24 |
204,131 | 198,438 | ||||||
| 2024-25 |
193,108 | 191,515 | ||||||
| 2025-26 |
168,701 | 167,864 | ||||||
| 2026-27 |
169,481 | — | ||||||
| Thereafter |
1,173,674 | 1,333,913 | ||||||
|
|
|
|
|
|||||
| 2,111,495 | 2,289,503 | |||||||
| Less interest and executory costs |
(1,058,171 | ) | (1,198,022 | ) | ||||
|
|
|
|
|
|||||
| Leasesa |
1,053,324 | 1,091,481 | ||||||
|
|
|
|
|
|||||
| a | Leases bear interest up to 15.8 per cent (2021 - up to 15.8 per cent) and have expiry dates up to 67.3 years (2021 - up to 31.3 years). |
Government of Saskatchewan Public Accounts 2021-22 65
Summary Financial Statements
| Other Investments | Schedule 4 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Pooled investment funds |
205,518 | 185,372 | ||||||
| Bonds and debentures1 |
126,782 | 134,286 | ||||||
| Other2 |
134,785 | 91,073 | ||||||
|
|
|
|
|
|||||
| Total Other Investments |
467,085 | 410,731 | ||||||
|
|
|
|
|
|||||
| 1 | Bonds and debentures held by the Government have a market value of $126.8 million (2021 - $141.1 million) and include securities of: |
| 2022 | 2021 | |||||||
| Corporations (coupon interest range 1.0 to 6.6 per cent; maturing in 1.7 to 60.3 years) |
70,856 | 47,887 | ||||||
| Governments of other provinces (coupon interest range 1.5 to 4.3 per cent; maturing in 1.9 to 30.7 years) |
28,688 | 49,183 | ||||||
| Government of Canada (coupon interest range 0.5 to 3.0 per cent; maturing in 1.5 to 31.9 years) |
22,302 | 31,409 | ||||||
| Other (coupon interest range 0.3 to 5.4 per cent; maturing in 1.6 to 30.9 years) |
4,936 | 5,807 | ||||||
|
|
|
|
|
|||||
| Total Bonds and Debentures |
126,782 | 134,286 | ||||||
|
|
|
|
|
|||||
| 2 | Other includes $107.4 million (2021 - $70.6 million) in fixed-rate securities with a market value of $112.5 million (2021 - $71.7 million) and $27.4 million (2021 - $20.4 million) in Canadian and international equity market investments with a market value of $160.2 million (2021 - $151.2 million). |
66 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Accounts Payable and Accrued Liabilities | Schedule 5 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Salaries and benefits1 |
1,013,248 | 1,018,584 | ||||||
| Transfers2 |
636,339 | 527,248 | ||||||
| Supplier payments |
421,787 | 375,184 | ||||||
| Federal government repayments3 |
321,882 | 573,706 | ||||||
| Contaminated sites4 |
237,001 | 168,308 | ||||||
| Financing charges |
147,089 | 123,004 | ||||||
| Treaty land entitlement claims |
91,285 | 103,824 | ||||||
| Other |
276,607 | 259,079 | ||||||
|
|
|
|
|
|||||
| Total Accounts Payable and Accrued Liabilities |
3,145,238 | 3,148,937 | ||||||
|
|
|
|
|
|||||
| 1 | Includes accruals for other employee future benefits of $423.2 million (2021 - $414.6 million) mainly for accumulated sick leave, long-term disability and life insurance benefits. |
| 2 | Includes transfers to the federal government of $171.7 million (2021 - $123.9 million) and capital transfers of $119.9 million (2021 - $77.7 million). |
| 3 | Includes amounts repayable for income taxes and Equalization transfers, $16.8 million (2021 - $237.1 million) of which is due within one year. |
| 4 | Includes remediation for: |
Soil Contamination
The Government is responsible for remediation of soil contamination of $97.5 million (2021 - $9.8 million), primarily related to the storage of road salt, asphalt and fuel inventories.
Abandoned mines
The Government is responsible for remediation of certain abandoned uranium and precious and base metal mines on Crown land, where the companies that caused the contamination no longer exist. The contaminated sites liabilities include $53.4 million (2021 - $84.3 million) for the remediation of uranium mines, net of expected recoveries of $11.2 million (2021 - $11.2 million). These sites have building debris, radioactive tailings, acidic water conditions and elevated radiation in exposed waste rock. The contaminated sites liabilities also include $35.4 million (2021 - $30.8 million) related to precious and base metal mines, which have several contaminants in soil, sediment and surface water from waste rock, tailings and concentrates.
Industrial operations
The Government has provided a $50.5 million (2021 - $43.4 million) indemnity for environmental liabilities related to the industrial operations of a chemical plant and pulp mill site. These sites have excessive mercury levels in the soil and excessive contaminants in a landfill waste area, respectively. In 2021, a recovery of $16.0 million was recorded as a result of changes in remediation approach.
| Unearned Revenue | Schedule 6 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Own-source1 |
194,413 | 167,716 | ||||||
| Transfers from the federal government2 |
242,990 | 359,488 | ||||||
|
|
|
|
|
|||||
| Total Unearned Revenue |
437,403 | 527,204 | ||||||
|
|
|
|
|
|||||
| 1 | Includes $69.3 million (2021 - $70.4 million) for motor vehicle licensing fees. |
| 2 | Includes $156.8 million (2021 - $334.1 million) for the reclamation of inactive wells and $76.1 million (2021 - nil) for early learning and child care. |
Government of Saskatchewan Public Accounts 2021-22 67
Summary Financial Statements
| Pension Liabilities | Schedule 7 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) | ||||
| 2022 | 2021 | |||||||||||||||||||
| TSP | PSSP | Others | Total | Total | ||||||||||||||||
| Accrued benefit obligation, beginning of year |
5,092,209 | 1,535,943 | 424,097 | 7,052,249 | 7,149,338 | |||||||||||||||
| Current period benefit cost |
1,707 | — | 18,187 | 19,894 | 16,878 | |||||||||||||||
| Interest cost |
143,634 | 42,917 | 18,064 | 204,615 | 225,577 | |||||||||||||||
| Actuarial (gains) losses |
(117,714 | ) | 6,364 | 2,030 | (109,320 | ) | 123,838 | |||||||||||||
| Benefit payments |
(320,234 | ) | (112,113 | ) | (19,284 | ) | (451,631 | ) | (463,382 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accrued Benefit Obligation, End of Year |
4,799,602 | 1,473,111 | 443,094 | 6,715,807 | 7,052,249 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Plan assets, beginning of year |
211,262 | — | 191,099 | 402,361 | 408,326 | |||||||||||||||
| Employer contributions |
282,134 | 112,114 | 15,071 | 409,319 | 417,188 | |||||||||||||||
| Employee contributions |
660 | 2 | 4,304 | 4,966 | 4,154 | |||||||||||||||
| Return on plan assets1 |
22,665 | (3 | ) | 12,574 | 35,236 | 36,977 | ||||||||||||||
| Actuarial losses |
(4,786 | ) | — | (236 | ) | (5,022 | ) | (902 | ) | |||||||||||
| Benefit payments |
(320,234 | ) | (112,113 | ) | (19,284 | ) | (451,631 | ) | (463,382 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Plan Assets, End of Year2 |
191,701 | — | 203,528 | 395,229 | 402,361 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 4,607,901 | 1,473,111 | 239,566 | 6,320,578 | 6,649,888 | ||||||||||||||||
| Unamortized estimation adjustments3 |
103,090 | (6,364 | ) | 7,788 | 104,514 | (78,285 | ) | |||||||||||||
| Joint defined benefit plan (SHEPP) net asset1 4 |
n/a | n/a | (1,494,067 | ) | (1,494,067 | ) | (1,175,750 | ) | ||||||||||||
| Valuation allowance5 |
— | — | 1,502,824 | 1,502,824 | 1,179,992 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Pension Liabilities6 |
4,710,991 | 1,466,747 | 256,111 | 6,433,849 | 6,575,845 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1 | The actual rate of return on plan assets was 2.4 per cent (2021 - 7.0 per cent) for the TSP and 9.9 per cent (2020 - 11.0 per cent) for the SHEPP. |
| 2 | The market value of plan investments was $412.2 million at March 31, 2022 (2021 - $424.2 million) for the defined benefit plans. |
| 3 | Unamortized estimation adjustments are amortized to pension expense over the expected average remaining service life of the related employee group at the time the estimation adjustments arose and commence in the year following the adjustment as follows: up to 1 year for the TSP; in the year following for the PSSP; up to 12.9 years for the SHEPP; and up to 13.0 years for the other plans. |
| 4 | At December 31, 2021, the SHEPP had a total accrued benefit obligation of $8,162.7 million (2020 - $7,867.3 million), plan assets at market-related values of $9,141.2 million (2020 - $8,454.8 million) and unamortized estimation adjustment losses of $515.5 million (2020 - $588.2 million). The Government portion of employer contributions to the plan totalled $190.2 million (2020 - $180.1 million). Total member contributions were $173.3 million (2020 - $164.1 million) and total benefit payments were $435.6 million (2020 - $389.3 million). The market value of plan investments was $9,719.2 million at December 31, 2021 (2020 - $8,893.7 million). The fair value of these investments declined to $9,318.8 million at March 31, 2022. |
| 5 | The valuation allowance includes $1,494.1 million (2020 - $1,175.8 million) for the SHEPP which reduces the Government portion of the SHEPP pension asset to nil as plan assets and surpluses are restricted for member benefits. |
| 6 | The total pension liabilities are based on the latest actuarial valuations extrapolated to March 31, 2022 for the defined benefit plans and December 31, 2021 for the joint defined benefit plan. Changes in assumptions can result in significantly higher or lower estimates of pension liabilities. A one percentage point decrease in the discount rate would result in a $591.2 million and $151.7 million increase in pension liabilities for the TSP and the PSSP respectively, and a one percentage point increase would result in a $491.5 million and $129.6 million decrease in pension liabilities for the TSP and the PSSP respectively. A one percentage point decrease in the discount rate would result in a $1,159.1 million decrease in the SHEPP pension asset, and a one percentage point increase would result in a $930.5 million increase in the SHEPP pension asset. |
68 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Public Debt | Schedule 8 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) | ||||
| 2022 | 2021 | |||||||||||||||||||||||
| General Debt1 2 |
Government Business Enterprise Specific Debt1 |
Public Debt |
General Debt1 2 |
Government Business Enterprise Specific Debt1 |
Public Debt |
|||||||||||||||||||
| General Revenue Fund |
||||||||||||||||||||||||
| Operating |
9,008,891 | — | 9,008,891 | 7,200,001 | — | 7,200,001 | ||||||||||||||||||
| Saskatchewan Capital Plan3 |
8,048,072 | — | 8,048,072 | 6,690,332 | — | 6,690,332 | ||||||||||||||||||
| Saskatchewan Power Corporation4 |
83,582 | 6,191,803 | 6,275,385 | 84,821 | 6,044,029 | 6,128,850 | ||||||||||||||||||
| SaskEnergy Incorporated4 |
62,663 | 1,656,223 | 1,718,886 | 63,616 | 1,524,631 | 1,588,247 | ||||||||||||||||||
| Saskatchewan Telecommunications Holding Corporation4 |
— | 1,431,803 | 1,431,803 | — | 1,219,973 | 1,219,973 | ||||||||||||||||||
| Municipal Financing Corporation of Saskatchewan4 |
91,186 | 184,746 | 275,932 | 92,331 | 137,687 | 230,018 | ||||||||||||||||||
| Boards of Education |
138,475 | — | 138,475 | 149,961 | — | 149,961 | ||||||||||||||||||
| Liquor and Gaming Authority4 |
— | 89,773 | 89,773 | — | 94,957 | 94,957 | ||||||||||||||||||
| Saskatchewan Water Corporation4 |
— | 74,398 | 74,398 | — | 75,341 | 75,341 | ||||||||||||||||||
| Saskatchewan Health Authority |
60,639 | — | 60,639 | 76,246 | — | 76,246 | ||||||||||||||||||
| Saskatchewan Opportunities Corporation |
48,302 | — | 48,302 | 50,089 | — | 50,089 | ||||||||||||||||||
| Global Transportation Hub Authority |
43,860 | — | 43,860 | 43,910 | — | 43,910 | ||||||||||||||||||
| Water Security Agency |
14,309 | — | 14,309 | 20,025 | — | 20,025 | ||||||||||||||||||
| Health Sector Affiliates |
6,697 | — | 6,697 | 8,476 | — | 8,476 | ||||||||||||||||||
| Other |
1,544 | — | 1,544 | 1,669 | 4,988 | 6,657 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total5 |
17,608,220 | 9,628,746 | 27,236,966 | 14,481,477 | 9,101,606 | 23,583,083 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| 1 | General debt and government business enterprise (GBE) specific debt are presented net of sinking funds (see footnote 5). |
| 2 | General debt includes $20.6 million (2021 - $26.1 million - restated) secured primarily by assets with a carrying value of $102.2 million (2021 - $111.5 million - restated). |
| 3 | General Revenue Fund - Saskatchewan Capital Plan consists of amounts borrowed by the General Revenue Fund to finance investment in capital assets as presented in the Saskatchewan Provincial Budget. |
| 4 | GBE public debt includes both general debt and GBE specific debt. General debt of GBEs represents amounts transferred from the General Revenue Fund and recorded as loans receivable (schedule 2). GBE specific debt represents debt issued by, or specifically on behalf of, GBEs. |
Schedule 3 provides information on GBEs as presented in their audited financial statements closest to March 31, 2022. The public debt reported above is lower than the gross debt, net of sinking funds, reported on schedule 3 by $95.7 million (2021 - $85.5 million) mainly to conform to Canadian public sector accounting standards and for transactions occurring from the audited financial statements to March 31, 2022.
Government of Saskatchewan Public Accounts 2021-22 69
Summary Financial Statements
| Public Debt (continued) | Schedule 8 | |||
| 5 | Public debt is comprised of gross debt net of sinking funds as follows: |
| 2022 | ||||||||||||
| Gross | Sinking | Public | ||||||||||
| Debt a | Funds | Debt | ||||||||||
| (schedule 9) | ||||||||||||
| General Revenue Fund |
||||||||||||
| Operating |
9,914,763 | (905,872 | ) | 9,008,891 | ||||||||
| Saskatchewan Capital Plan |
8,504,280 | (456,208 | ) | 8,048,072 | ||||||||
| Saskatchewan Power Corporation |
7,055,519 | (780,134 | ) | 6,275,385 | ||||||||
| SaskEnergy Incorporated |
1,872,513 | (153,627 | ) | 1,718,886 | ||||||||
| Saskatchewan Telecommunications Holding Corporation |
1,532,468 | (100,665 | ) | 1,431,803 | ||||||||
| Municipal Financing Corporation of Saskatchewan |
293,574 | (17,642 | ) | 275,932 | ||||||||
| Boards of Education |
138,475 | — | 138,475 | |||||||||
| Liquor and Gaming Authority |
89,773 | — | 89,773 | |||||||||
| Saskatchewan Water Corporation |
88,418 | (14,020 | ) | 74,398 | ||||||||
| Saskatchewan Health Authority |
60,639 | — | 60,639 | |||||||||
| Saskatchewan Opportunities Corporation |
53,901 | (5,599 | ) | 48,302 | ||||||||
| Global Transportation Hub Authority |
43,860 | — | 43,860 | |||||||||
| Water Security Agency |
14,309 | — | 14,309 | |||||||||
| Health Sector Affiliates |
6,697 | — | 6,697 | |||||||||
| Other |
1,544 | — | 1,544 | |||||||||
|
|
|
|
|
|
|
|||||||
| Public Debt |
29,670,733 | (2,433,767 | ) | 27,236,966 | ||||||||
|
|
|
|
|
|
|
|||||||
| a | The average effective interest rate on gross debt was 3.1 per cent (2021 - 3.5 per cent) and includes the impact of foreign exchange and the amortization of any premiums or discounts associated with the debentures. The average term to maturity of gross debt is 14.8 years (2021 - 15.8 years). |
The payment schedule for gross debt is as follows:
| 2022 | 2021 | |||||||
| Year of Maturity |
||||||||
| Short-term promissory notes |
2,134,088 | 1,509,242 | ||||||
| 2021-22 |
— | 391,043 | ||||||
| 2022-23 |
609,543 | 514,654 | ||||||
| 2023-24 |
878,288 | 879,808 | ||||||
| 2024-25 |
1,318,222 | 1,317,465 | ||||||
| 2025-26 |
1,445,546 | 1,445,771 | ||||||
| 2026-27 |
1,614,819 | — | ||||||
| 6-10 years |
6,736,262 | 5,521,051 | ||||||
| Thereafter |
14,933,965 | 14,284,185 | ||||||
|
|
|
|
|
|||||
| Gross debt a |
29,670,733 | 25,863,219 | ||||||
| Sinking funds |
(2,433,767 | ) | (2,280,136 | ) | ||||
|
|
|
|
|
|||||
| Public Debt |
27,236,966 | 23,583,083 | ||||||
|
|
|
|
|
|||||
| a | Gross debt includes Canada Pension Plan debentures of $635.6 million (2021 - $635.6 million). These debentures are callable in whole or in part before maturity, at the option of the Minister of Finance of Saskatchewan. |
70 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Sinking Funds | Schedule 9 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) | ||||
| 2021 | 2022 | |||||||||||||||||||
| Sinking Funds |
Contributions1 | Earnings2 | Redemptions3 | Sinking Funds |
||||||||||||||||
| General Revenue Fund |
||||||||||||||||||||
| Operating |
848,553 | 53,588 | 14,448 | (10,717 | ) | 905,872 | ||||||||||||||
| Saskatchewan Capital Plan |
309,448 | 139,996 | 6,764 | — | 456,208 | |||||||||||||||
| Saskatchewan Power Corporation4 |
866,623 | 62,463 | 13,929 | (162,881 | ) | 780,134 | ||||||||||||||
| SaskEnergy Incorporated4 |
136,602 | 14,561 | 2,464 | — | 153,627 | |||||||||||||||
| Saskatchewan Telecommunications Holding Corporation4 |
84,919 | 14,150 | 1,596 | — | 100,665 | |||||||||||||||
| Municipal Financing Corporation of Saskatchewan4 |
15,300 | 2,056 | 286 | — | 17,642 | |||||||||||||||
| Saskatchewan Water Corporation4 |
13,551 | 2,250 | 255 | (2,036 | ) | 14,020 | ||||||||||||||
| Saskatchewan Opportunities Corporation |
5,140 | 367 | 92 | — | 5,599 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Sinking Funds5 |
2,280,136 | 289,431 | 39,834 | (175,634 | ) | 2,433,767 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1 | Annual contributions, established by Order in Council, are typically set at a minimum of either one or two per cent of debentures outstanding. The aggregate amount of contributions estimated to be required in each of the next five years and thereafter to meet sinking fund requirements by debt classification (see footnote 5) are as follows: |
| 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | ||||||||||||||||||||||
| General debt |
241,109 | 240,100 | 231,977 | 231,977 | 231,977 | 3,264,372 | 4,441,512 | |||||||||||||||||||||
| Government business enterprise specific debt |
88,908 | 86,227 | 84,604 | 84,424 | 82,157 | 1,401,793 | 1,828,113 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Sinking Fund Contributions |
330,017 | 326,327 | 316,581 | 316,401 | 314,134 | 4,666,165 | 6,269,625 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 2 | Sinking fund earnings include losses on investment sales of $4.4 million (2021 - gains of $12.1 million). |
| 3 | Redemptions are based on the market value of the sinking fund units at the date of redemption. |
| 4 | Schedule 3 provides information on GBEs as presented in their audited financial statements closest to March 31, 2022. The sinking funds reported above differ from the amount included in schedule 3 by $55.5 million (2021 - $2.0 million) mainly to conform to Canadian public sector accounting standards. |
| 5 | Total sinking funds, with a market value of $2,300.5 million (2021 - $2,267.3 million), are segregated by debt classification as follows: |
| 2021 | 2022 | |||||||||||||||||||
| Sinking | Sinking | |||||||||||||||||||
| Funds | Contributions | Earnings | Redemptions | Funds | ||||||||||||||||
| General debt |
1,197,372 | 196,701 | 21,892 | (10,717 | ) | 1,405,248 | ||||||||||||||
| Government business enterprise specific debt |
1,082,764 | 92,730 | 17,942 | (164,917 | ) | 1,028,519 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Sinking Funds |
2,280,136 | 289,431 | 39,834 | (175,634 | ) | 2,433,767 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sinking fund assets have been invested as follows:
| 2022 | 2021 | |||||||
| Long-term investmentsa in securities of: |
||||||||
| Governments of other provinces (coupon interest range 1.8 to 5.9 per cent; maturing in 1.2 to 30.7 years) |
1,014,389 | 910,893 | ||||||
| Government of Canada (coupon interest range 0.3 to 4.0 per cent; maturing in 2.0 to 29.7 years) |
641,377 | 479,017 | ||||||
| Government of Saskatchewan (coupon interest range 2.2 to 6.4 per cent; maturing in 2.2 to 28.2 years) |
343,797 | 313,765 | ||||||
| Cash, short-term investments and accrued interest |
434,204 | 576,461 | ||||||
|
|
|
|
|
|||||
| Total Sinking Funds |
2,433,767 | 2,280,136 | ||||||
|
|
|
|
|
|||||
| a | The average yield to maturity on long-term investments at March 31, 2022 was 2.0 per cent (2021 - 2.1 per cent). |
Government of Saskatchewan Public Accounts 2021-22 71
Summary Financial Statements
| Obligations Under Long-Term Financing Arrangements | Schedule 10 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) | ||||
| Contract End | Discount | |||||||||||||||
| Date | Rate | 2022 | 2021 | |||||||||||||
| Regina Bypass |
October 2049 | 3.10 | % | 819,481 | 838,000 | |||||||||||
| Elementary Schools |
June 2047 | 3.05 | % | 260,920 | 267,603 | |||||||||||
| Saskatchewan Hospital North Battleford |
May 2048 | 3.25 | % | 218,587 | 223,805 | |||||||||||
| Swift Current Long-Term Care Facility |
April 2046 | 3.50 | % | 108,419 | 111,269 | |||||||||||
|
|
|
|
|
|||||||||||||
| Total Obligations Under Long-Term Financing Arrangements |
1,407,407 | 1,440,677 | ||||||||||||||
|
|
|
|
|
|||||||||||||
The payment schedule for public private partnership (P3) financing is as follows:
| 2022 | 2021 | |||||||||||||||
| Future Operation, | ||||||||||||||||
| Maintenance & Life | ||||||||||||||||
| Obligation1 | Cycle Rehabilitation2 | Total | Total | |||||||||||||
| 2021-22 |
— | — | — | 106,832 | ||||||||||||
| 2022-23 |
77,841 | 24,587 | 102,428 | 102,427 | ||||||||||||
| 2023-24 |
77,841 | 24,979 | 102,820 | 102,829 | ||||||||||||
| 2024-25 |
77,841 | 25,626 | 103,467 | 103,481 | ||||||||||||
| 2025-26 |
77,841 | 26,150 | 103,991 | 103,945 | ||||||||||||
| 2026-27 |
77,841 | 28,913 | 106,754 | — | ||||||||||||
| Thereafter |
1,682,872 | 986,215 | 2,669,087 | 2,786,096 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 2,072,077 | 1,116,470 | 3,188,547 | 3,305,610 | |||||||||||||
| Less interest costs |
(664,670 | ) | — | (664,670 | ) | (709,290 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
1,407,407 | 1,116,470 | 2,523,877 | 2,596,320 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 1 | Represents the liability recorded for the capital portion of the project (as reported above). |
| 2 | Represents the contractual obligation (as reported in note 6) for operation, maintenance and life cycle rehabilitation payments for the duration of the contract. Total future payments for these contractual obligations, by project, are as follows: |
| 2022 | 2021 | |||||||
| Regina Bypass |
662,486 | 687,903 | ||||||
| Elementary Schoolsa |
240,308 | 249,986 | ||||||
| Saskatchewan Hospital North Battleford |
142,256 | 144,530 | ||||||
| Swift Current Long-Term Care Facility |
71,420 | 73,224 | ||||||
|
|
|
|
|
|||||
| Total |
1,116,470 | 1,155,643 | ||||||
|
|
|
|
|
|||||
| a | 2021 includes $4.9 million for construction & acquisition of relocatable classrooms. |
72 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Other Liabilities | Schedule 11 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Unamortized debt-related costs1 |
240,396 | 264,557 | ||||||
| Funds held on behalf of others2 |
203,143 | 173,449 | ||||||
| Capital leases3 |
42,782 | 46,242 | ||||||
| Other |
28,967 | 27,906 | ||||||
|
|
|
|
|
|||||
| Total Other Liabilities |
515,288 | 512,154 | ||||||
|
|
|
|
|
|||||
| 1 | Unamortized debt-related costs include: |
| 2022 | 2021 | |||||||
| Net premiuma |
307,296 | 323,421 | ||||||
| Debt issue costsa |
(66,900 | ) | (57,730 | ) | ||||
| Foreign exchange lossb |
— | (1,134 | ) | |||||
|
|
|
|
|
|||||
| Unamortized Debt-related Costs |
240,396 | 264,557 | ||||||
|
|
|
|
|
|||||
| a | Combined net change in net premium and debt issue costs is reported in operating activities on the Statement of Cash Flow as increase in unamortized debt-related costs in net change in non-cash operating activities (schedule 18). |
| b | Net foreign exchange loss is reported in operating activities on the Statement of Cash Flow as an other non-cash item included in deficit (schedule 18). |
| 2 | Includes $41.8 million (2021 - $30.3 million) for government business enterprises. |
| 3 | The payment schedule for capital leases is as follows: |
| 2022 | 2021 | |||||||
| 2021-22 |
— | 13,251 | ||||||
| 2022-23 |
13,252 | 11,555 | ||||||
| 2023-24 |
10,429 | 8,708 | ||||||
| 2024-25 |
7,923 | 6,494 | ||||||
| 2025-26 |
6,502 | 5,550 | ||||||
| 2026-27 |
5,439 | — | ||||||
| Thereafter |
27,403 | 32,709 | ||||||
|
|
|
|
|
|||||
| 70,948 | 78,267 | |||||||
| Less interest and executory costs |
(28,166 | ) | (32,025 | ) | ||||
|
|
|
|
|
|||||
| Capital Leasesa |
42,782 | 46,242 | ||||||
|
|
|
|
|
|||||
| a | Capital leases bear interest at rates up to 13.9 per cent (2021 - up to 13.9 per cent) and have expiry dates up to 10.6 years (2021 - up to 11.6 years). |
Government of Saskatchewan Public Accounts 2021-22 73
Summary Financial Statements
| Tangible Capital Assets | Schedule 12 | |||||
| As at March 31, 2022 | ||||||
| (thousands of dollars) | ||||||
| 2022 | 2021 | |||||||||||||||||||||||
| Land, | Roads, | Office | ||||||||||||||||||||||
| Buildings & | Bridges & | Transportation | Equipment & | |||||||||||||||||||||
| Improve- | Water | & Operating | Information | |||||||||||||||||||||
| ments | Management | Equipment | Technology | Total | Total | |||||||||||||||||||
| Estimated useful life (in years) | 2 - indefinite | 5-100 | 2-40 | 2-25 | ||||||||||||||||||||
| Opening Net Book Value of Tangible Capital Assets |
5,500,508 | 5,674,435 | 542,896 | 299,434 | 12,017,273 | 11,858,796 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Opening cost |
10,003,366 | 8,805,190 | 1,928,902 | 1,068,754 | 21,806,212 | 21,193,246 | ||||||||||||||||||
| Adjustments1 |
(6,468 | ) | 3,308 | 7,949 | 2,024 | 6,813 | (33,392 | ) | ||||||||||||||||
| Acquisitions |
281,047 | 471,522 | 104,735 | 91,250 | 948,554 | 837,101 | ||||||||||||||||||
| Write-downs |
(70 | ) | (2,366 | ) | — | (3,423 | ) | (5,859 | ) | (8,936 | ) | |||||||||||||
| Disposals |
(14,622 | ) | (45,263 | ) | (80,858 | ) | (45,341 | ) | (186,084 | ) | (181,807 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Closing Cost 2 3 |
10,263,253 | 9,232,391 | 1,960,728 | 1,113,264 | 22,569,636 | 21,806,212 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Opening accumulated amortization |
4,502,858 | 3,130,755 | 1,386,006 | 769,320 | 9,788,939 | 9,334,450 | ||||||||||||||||||
| Adjustments1 |
(445 | ) | — | 2,684 | 639 | 2,878 | — | |||||||||||||||||
| Annual amortization |
240,844 | 243,908 | 90,917 | 65,861 | 641,530 | 630,206 | ||||||||||||||||||
| Write-downs |
— | — | — | (3,354 | ) | (3,354 | ) | (2,260 | ) | |||||||||||||||
| Disposals |
(11,468 | ) | (45,263 | ) | (76,946 | ) | (45,259 | ) | (178,936 | ) | (173,457 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Closing Accumulated Amortization |
4,731,789 | 3,329,400 | 1,402,661 | 787,207 | 10,251,057 | 9,788,939 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Closing Net Book Value of Tangible Capital Assets4 |
5,531,464 | 5,902,991 | 558,067 | 326,057 | 12,318,579 | 12,017,273 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tangible capital assets (TCAs) exclude capital assets recognized by government business enterprises (schedule 3).
| 1 | Mainly includes restructuring transactions (2021 - adjustment for PST capitalized in prior years (note 8)). |
| 2 | Includes work in progress of $451.5 million (2021 - $318.4 million). |
| 3 | Includes the Government’s $29.5 million (2021 - $29.5 million) share in the North Central Shared Facility partnership. |
| 4 | Includes TCAs acquired under public private partnerships (P3 TCAs) and leased tangible capital assets (leased TCAs) as follows: |
| 2022 | 2021 | |||||||||||||||||||||||
| Land, | Roads, | Office | ||||||||||||||||||||||
| Buildings & | Bridges & | Transportation | Equipment & | |||||||||||||||||||||
| Improve- | Water | & Operating | Information | |||||||||||||||||||||
| ments | Management | Equipment | Technology | Total | Total | |||||||||||||||||||
| (Restated) | ||||||||||||||||||||||||
| P3 TCAs |
||||||||||||||||||||||||
| Closing cost |
955,400 | 1,572,657 | — | — | 2,528,057 | 2,518,275 | ||||||||||||||||||
| Closing accumulated amortization |
83,631 | 59,670 | — | — | 143,301 | 102,131 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Closing Net Book Value |
871,769 | 1,512,987 | — | — | 2,384,756 | 2,416,144 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Leased TCAs |
||||||||||||||||||||||||
| Closing cost |
48,922 | — | 18,699 | 48,425 | 116,046 | 112,978 | ||||||||||||||||||
| Closing accumulated amortization |
23,964 | — | 8,284 | 42,531 | 74,779 | 68,082 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Closing Net Book Value |
24,958 | — | 10,415 | 5,894 | 41,267 | 44,896 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
74 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Inventories Held for Consumption | Schedule 13 | |||
| As at March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Health supplies and vaccines1 |
126,346 | 97,633 | ||||||
| Highway and road maintenance |
95,055 | 105,105 | ||||||
| Equipment parts and supplies |
30,701 | 21,456 | ||||||
| Other |
16,517 | 12,593 | ||||||
|
|
|
|
|
|||||
| Total Inventories Held for Consumption |
268,619 | 236,787 | ||||||
|
|
|
|
|
|||||
| 1 | The Government received 2,999 thousand (2021 - 233 thousand) COVID-19 vaccines at no cost from the federal government. Of that, 347 thousand (2021 - 29 thousand) remain in inventory at March 31. Due to confidentiality, the price-per-dose of vaccines was not shared. As a result, these vaccines have not been recorded in these financial statements as the fair value cannot be reasonably determined. |
Government of Saskatchewan Public Accounts 2021-22 75
Summary Financial Statements
| Revenue | Schedule 14 | |
| For the Year Ended March 31, 2022 | ||
| (thousands of dollars) |
| 2022 | 2021 | |||||||||||
| Budget | Actual | Actual | ||||||||||
| Own-Source |
||||||||||||
| Taxation |
||||||||||||
| Individual income |
2,420,800 | 2,880,468 | 2,463,322 | |||||||||
| Provincial sales |
2,144,000 | 2,383,003 | 2,100,523 | |||||||||
| Corporation income |
754,600 | 1,007,821 | 440,134 | |||||||||
| Property |
784,800 | 763,791 | 778,967 | |||||||||
| Fuel |
477,900 | 494,657 | 441,696 | |||||||||
| Tobacco |
201,800 | 180,407 | 204,255 | |||||||||
| Other1 |
454,100 | 492,116 | 453,077 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Taxation |
7,238,000 | 8,202,263 | 6,881,974 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-Renewable Resources |
||||||||||||
| Potash |
431,800 | 1,266,848 | 421,619 | |||||||||
| Oil and natural gas |
505,100 | 1,009,656 | 378,184 | |||||||||
| Resource surcharge |
302,600 | 539,770 | 263,145 | |||||||||
| Crown land sales |
9,200 | 22,421 | 6,652 | |||||||||
| Other |
79,800 | 81,304 | 38,174 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Non-Renewable Resources2 |
1,328,500 | 2,919,999 | 1,107,774 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net Income from Government Business Enterprises (schedule 3) |
899,200 | 837,651 | 1,278,141 | |||||||||
|
|
|
|
|
|
|
|||||||
| Other Own-Source |
||||||||||||
| Fees3 |
1,170,000 | 1,205,248 | 1,183,916 | |||||||||
| Insurance |
282,700 | 743,645 | 273,686 | |||||||||
| Investment |
88,400 | 93,168 | 151,067 | |||||||||
| Transfers from other governments |
73,200 | 88,588 | 81,954 | |||||||||
| Miscellaneous4 |
489,800 | 586,475 | 432,328 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Other Own-Source |
2,104,100 | 2,717,124 | 2,122,951 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Own-Source |
11,569,800 | 14,677,037 | 11,390,840 | |||||||||
|
|
|
|
|
|
|
|||||||
| Transfers from the Federal Government |
||||||||||||
| Canada Health Transfer |
1,330,400 | 1,331,290 | 1,296,516 | |||||||||
| Canada Social Transfer |
477,400 | 477,679 | 465,196 | |||||||||
| Other5 |
1,100,700 | 1,650,165 | 1,371,357 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Transfers from the Federal Government |
2,908,500 | 3,459,134 | 3,133,069 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Revenue6 |
14,478,300 | 18,136,171 | 14,523,909 | |||||||||
|
|
|
|
|
|
|
|||||||
| 1 | Includes $168.2 million (2021 - $158.8 million) for corporate capital tax; $167.9 million (2021 - $155.7 million) for insurance premium tax; and $96.3 million (2021 - $93.3 million) for liquor consumption tax. |
| 2 | Includes taxes of $1,188.4 million (2021 - $352.5 million - restated). |
| 3 | Includes $267.7 million (2021 - $250.6 million) for health care; $206.6 million (2021 - $199.3 million) for motor vehicle licensing; $142.3 million (2021 - $150.6 million) for education; $108.0 million (2021 - $106.7 million) for subsidized housing rental; $94.7 million (2021 - $102.8 million) for real property sales and leases; and $68.1 million (2021 - $71.1 million) for management of fish, wildlife, forest and land. |
| 4 | Includes $189.8 million (2021 - $79.6 million) for donations, in which the 2022 revenue primarily represents certain COVID-related inventory received from the federal government at no cost; $77.2 million (2021 - $72.6 million) for lottery profits; and $17.3 million (2021 - $13.1 million) for reversals of prior year expenses. |
| 5 | Includes $267.9 million (2021 - $216.7 million) for crop insurance; $248.8 million (2021 - $181.4 million - restated) for infrastructure; $242.9 million (2021 - $60.9 million) for agricultural income stability; $203.6 million (2021 - $466.2 million) for COVID-related health, safety and financial support measures; $183.4 million (2021 - $65.9 million) for accelerated reclamation of inactive oil and gas wells; $104.0 million (2021 - $99.9 million) for labour market initiatives; $68.5 million (2021 - $13.6 million) for early learning and child care; $66.6 million (2021 - $5.0 million) for provincial disaster assistance; and $49.5 million ($51.4 million) for housing. |
| 6 | Revenue has not been recorded for COVID-19 vaccines received from the federal government at no cost (see schedule 13). |
76 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Expense by Object | Schedule 15 | |||
| For the Year Ended March 31, 2022 | ||||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Salaries and benefits |
7,415,610 | 6,771,234 | ||||||
| Transfers1 |
5,504,692 | 4,894,993 | ||||||
| Operating costs |
5,269,083 | 2,583,112 | ||||||
| Financing charges (schedule 16 ) |
718,206 | 720,829 | ||||||
| Amortization of tangible capital assets (schedule 12 ) |
641,530 | 630,206 | ||||||
| Other |
55,346 | 50,568 | ||||||
|
|
|
|
|
|||||
| Total Expense |
19,604,467 | 15,650,942 | ||||||
|
|
|
|
|
|||||
| 1 | Includes capital transfers of $443.0 million (2021 - $426.4 million). |
| Financing Charges | Schedule 16 | |
| For the Year Ended March 31, 2022 | ||
| (thousands of dollars) |
| 2022 | 2021 | |||||||
| Interest costs |
||||||||
| General debt1 |
503,551 | 480,514 | ||||||
| Pension liabilities (note 4 ) |
169,379 | 188,600 | ||||||
| Obligations under long-term financing arrangements |
44,620 | 45,646 | ||||||
| Other costs |
656 | 6,069 | ||||||
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| Total Financing Charges |
718,206 | 720,829 | ||||||
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| 1 | Interest on general debt is presented net of $385.3 million (2021 - $411.5 million) in interest reimbursed by government business enterprises for debt borrowed by the General Revenue Fund specifically on their behalf. |
Government of Saskatchewan Public Accounts 2021-22 77
Summary Financial Statements
| Segmented Reporting |
| For the Year Ended March 31, 2022 |
| (thousands of dollars) |
| Health | Education | Agriculture | Social Services and Assistance |
|||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Revenue |
||||||||||||||||||||||||||||||||
| Taxation |
— | — | 124,487 | 125,638 | — | — | — | — | ||||||||||||||||||||||||
| Non-renewable resources |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Net income from government business enterprises (schedule 3 ) |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Revenue from government entities |
14,107 | 13,262 | — | — | 3,868 | 4,466 | — | — | ||||||||||||||||||||||||
| Other own-source |
399,874 | 403,533 | 244,131 | 259,987 | 731,313 | 261,082 | 113,831 | 110,107 | ||||||||||||||||||||||||
| Transfers from the federal government |
3,541 | 5,564 | 17,990 | 17,211 | 476,894 | 249,603 | 49,478 | 51,372 | ||||||||||||||||||||||||
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| Total Revenue (schedule 14 ) |
417,522 | 422,359 | 386,608 | 402,836 | 1,212,075 | 515,151 | 163,309 | 161,479 | ||||||||||||||||||||||||
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| Expense |
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| Salaries and benefits3 |
3,863,602 | 3,750,968 | 2,234,897 | 1,849,863 | 64,856 | 64,731 | 174,145 | 166,673 | ||||||||||||||||||||||||
| Transfers |
1,548,492 | 1,337,962 | 770,106 | 749,586 | 502,097 | 198,827 | 1,086,006 | 1,078,432 | ||||||||||||||||||||||||
| Operating costs |
1,317,393 | 1,086,851 | 555,297 | 542,621 | 2,621,297 | 260,493 | 179,130 | 177,825 | ||||||||||||||||||||||||
| Financing charges3 (schedule 16 ) |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Amortization of tangible capital assets (schedule 12 ) |
147,619 | 151,503 | 135,493 | 135,541 | 3,505 | 3,595 | 19,231 | 19,650 | ||||||||||||||||||||||||
| Other |
5,866 | 10,779 | 3,663 | 12,526 | 2,596 | (1,712 | ) | 4,280 | 10,507 | |||||||||||||||||||||||
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| Total expense by segment |
6,882,972 | 6,338,063 | 3,699,456 | 3,290,137 | 3,194,351 | 525,934 | 1,462,792 | 1,453,087 | ||||||||||||||||||||||||
| Eliminations2 |
— | — | (14,107 | ) | (13,262 | ) | — | — | (4,422 | ) | (4,710 | ) | ||||||||||||||||||||
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| Total Expense3 (schedule 15 ) |
6,882,972 | 6,338,063 | 3,685,349 | 3,276,875 | 3,194,351 | 525,934 | 1,458,370 | 1,448,377 | ||||||||||||||||||||||||
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The segments are based on the major functional groupings of activities, or themes, used in the Statement of Operations, which reflects the accountability and reporting framework set out by the Government in the Saskatchewan Provincial Budget. Schedule 19 identifies the entities included in each theme.
| 1 | Other includes the economic development, general government and environment and natural resources segments. Revenue of the general government segment includes all public monies paid into the General Revenue Fund as well as net income from government business enterprises, which are used to support activities across all segments. |
| 2 | Represents eliminations for inter-entity transactions that occur across segments. |
| 3 | Includes a total of $699.9 million (2021 - $253.0 million) for pension expense as follows: |
| Health | Education | Other | Total | |||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Salaries and benefits |
206,454 | 196,783 | 215,524 | (127,682 | ) | 108,567 | (4,675 | ) | 530,545 | 64,426 | ||||||||||||||||||||||
| Financing charges (schedule 16 ) |
— | — | — | — | 169,379 | 188,600 | 169,379 | 188,600 | ||||||||||||||||||||||||
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| Total pension expense (recovery) (note 4 ) |
206,454 | 196,783 | 215,524 | (127,682 | ) | 277,946 | 183,925 | 699,924 | 253,026 | |||||||||||||||||||||||
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78 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
Schedule 17
| Protection of Persons | Community | |||||||||||||||||||||||||||||||||||||||||||||
| and Property | Development | Transportation | Other1 | Eliminations2 | Total | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
| — | — | 3,507 | 4,809 | — | — | 8,074,269 | 6,751,527 | — | — | 8,202,263 | 6,881,974 | |||||||||||||||||||||||||||||||||||
| — | — | — | — | — | — | 2,919,999 | 1,107,774 | — | — | 2,919,999 | 1,107,774 | |||||||||||||||||||||||||||||||||||
| — | — | — | — | — | — | 837,651 | 1,278,141 | — | — | 837,651 | 1,278,141 | |||||||||||||||||||||||||||||||||||
| — | 240 | — | — | — | — | 40,755 | 34,138 | (58,730 | ) | (52,106 | ) | — | — | |||||||||||||||||||||||||||||||||
| 82,713 | 62,693 | 96,927 | 105,655 | 10,277 | 5,178 | 1,038,058 | 914,716 | — | — | 2,717,124 | 2,122,951 | |||||||||||||||||||||||||||||||||||
| 15,395 | 4,378 | 5,202 | 1,846 | — | — | 2,890,634 | 2,803,095 | — | — | 3,459,134 | 3,133,069 | |||||||||||||||||||||||||||||||||||
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| 98,108 | 67,311 | 105,636 | 112,310 | 10,277 | 5,178 | 15,801,366 | 12,889,391 | (58,730 | ) | (52,106 | ) | 18,136,171 | 14,523,909 | |||||||||||||||||||||||||||||||||
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| 374,938 | 349,439 | 31,841 | 33,769 | 83,828 | 79,627 | 587,503 | 476,164 | — | — | 7,415,610 | 6,771,234 | |||||||||||||||||||||||||||||||||||
| 300,781 | 264,627 | 616,099 | 721,003 | 126,102 | 136,790 | 579,516 | 425,384 | (24,507 | ) | (17,618 | ) | 5,504,692 | 4,894,993 | |||||||||||||||||||||||||||||||||
| 256,053 | 181,681 | 33,256 | 36,269 | 193,549 | 180,617 | 123,478 | 127,289 | (10,370 | ) | (10,534 | ) | 5,269,083 | 2,583,112 | |||||||||||||||||||||||||||||||||
| — | — | — | — | — | — | 722,074 | 725,295 | (3,868 | ) | (4,466 | ) | 718,206 | 720,829 | |||||||||||||||||||||||||||||||||
| 21,414 | 19,391 | 7,787 | 7,419 | 238,280 | 222,408 | 68,201 | 70,699 | — | — | 641,530 | 630,206 | |||||||||||||||||||||||||||||||||||
| 8,157 | 4,571 | 682 | 454 | 1,307 | 1,024 | 28,795 | 12,419 | — | — | 55,346 | 50,568 | |||||||||||||||||||||||||||||||||||
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| 961,343 | 819,709 | 689,665 | 798,914 | 643,066 | 620,466 | 2,109,567 | 1,837,250 | (38,745 | ) | (32,618 | ) | 19,604,467 | 15,650,942 | |||||||||||||||||||||||||||||||||
| — | — | (6,776 | ) | (6,327 | ) | (9,572 | ) | (3,613 | ) | (3,868 | ) | (4,706 | ) | 38,745 | 32,618 | — | — | |||||||||||||||||||||||||||||
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| 961,343 | 819,709 | 682,889 | 792,587 | 633,494 | 616,853 | 2,105,699 | 1,832,544 | — | — | 19,604,467 | 15,650,942 | |||||||||||||||||||||||||||||||||||
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Government of Saskatchewan Public Accounts 2021-22 79
Summary Financial Statements
| Supplemental Cash Flow Information | Schedule 18 | |||
| For the Year Ended March 31, 2022 | ||||
| (thousands of dollars) | ||||
| 2022 | 2021 | |||||||
| Other Non-Cash Items Included in the Deficit |
||||||||
| Amortization of tangible capital assets (schedule 12) |
641,530 | 630,206 | ||||||
| Write-downs of tangible capital assets (schedule 12) |
2,505 | 6,676 | ||||||
| Net gain on disposal of tangible capital assets |
(909 | ) | (16 | ) | ||||
| Net (gain) loss on adjustments to tangible capital assets (schedule 12) |
(3,935 | ) | 1,000 | |||||
| Net increase to provision for loss on accounts receivable and loans receivable |
28,716 | 30,810 | ||||||
| Net gain on other investments1 |
(14,416 | ) | (39,508 | ) | ||||
| Earnings retained in sinking funds (schedule 9) |
(21,892 | ) | (49,981 | ) | ||||
| Net foreign exchange loss |
1,134 | 1,134 | ||||||
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| Total Other Non-Cash Items Included in the Deficit |
632,733 | 580,321 | ||||||
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| Net Change in Non-Cash Operating Activities |
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| Increase in accounts receivable |
(555,851 | ) | (112,231 | ) | ||||
| Decrease in other financial assets |
1,026 | 8 | ||||||
| (Decrease) increase in accounts payable and accrued liabilities2 |
(91,469 | ) | 145,545 | |||||
| (Decrease) increase in unearned revenue |
(89,801 | ) | 347,504 | |||||
| Decrease in pension liabilities |
(141,996 | ) | (576,476 | ) | ||||
| (Decrease) increase in unamortized debt-related costs |
(25,295 | ) | 139,102 | |||||
| Increase in inventories held for consumption |
(31,832 | ) | (53,883 | ) | ||||
| Increase in prepaid expenses |
(7,733 | ) | (5,127 | ) | ||||
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| Net Change in Non-Cash Operating Activities |
(942,951 | ) | (115,558 | ) | ||||
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| 1 | Net gain on other investments consists of: |
| 2022 | 2021 | |||||||
| Income from equities and pooled funds |
(14,067 | ) | (31,245 | ) | ||||
| Gain on sale of bonds and equities |
(239 | ) | (8,218 | ) | ||||
| Amortization of bond premiums and discounts |
(110 | ) | (45 | ) | ||||
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| Net gain on other investments |
(14,416 | ) | (39,508 | ) | ||||
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| 2 | Excludes the adjustment to accumulated deficit which increased the contaminated sites liability at April 1, 2022 by $87.8 million (note 8) |
Other Supplemental Information
| 2022 | 2021 | |||||||
| Cash interest paid during the year1 |
533,668 | 367,157 | ||||||
| Cash interest received during the year |
40,421 | 43,464 | ||||||
| 1 | Includes debt-related issuance costs, primarily consisting of net premiums of $6.3 million (2021 - $165.1 million) on debt issued during the year, which partially offset the amount of cash interest paid. |
80 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
| Government Reporting Entity | Schedule 19 | |
| For the Year Ended March 31, 2022 |
The government reporting entity consists of public sector entities (entities) classified as government service organizations, government business enterprises and partnerships. The listing below reports the entities under these classifications segregated by segments which are based on functional groupings of activities, or themes.
Government Service Organizations (Consolidated) and Partnerships (Proportionately Consolidated)
| Agriculture |
| Agricultural Credit Corporation of Saskatchewan Crop Reinsurance Fund of Saskatchewan |
| Livestock Services Revolving Fund |
| Ministry of Agriculture |
| Pastures Revolving Fund Prairie Agricultural Machinery Institute |
| Prairie Diagnostic Services Inc. (partnership - organization under shared control) 1a |
| Saskatchewan Agricultural Stabilization Fund |
| Saskatchewan Crop Insurance Corporation |
| Community Development |
| Community Initiatives Fund |
| Government House Foundation |
| Ministry of Education 2b |
| Ministry of Government Relations 2a |
| Ministry of Parks, Culture and Sport 2a |
| Northern Municipal Trust Account 1d |
| Provincial Archives of Saskatchewan |
| Provincial Capital Commission |
| Saskatchewan Arts Board |
| Saskatchewan Centre of the Arts Fund |
| Saskatchewan Heritage Foundation |
| Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation |
| Saskatchewan Snowmobile Fund Western Development Museum Fund |
| Economic Development 3 |
|
Creative Saskatchewan |
| CIC Asset Management Inc. 2a |
| First Nations and Métis Fund Inc. 5 |
| Global Transportation Hub Authority |
| Innovation Saskatchewan |
| Ministry of Energy and Resources Ministry of Environment 2b |
| Ministry of Finance 2b |
| Ministry of Immigration and Career Training 2b |
| Ministry of SaskBuilds and Procurement 2b |
| Ministry of Trade and Export Development |
| Saskatchewan Health Research Foundation |
| Saskatchewan Immigrant Investor Fund Inc. 5 |
| Saskatchewan Opportunities Corporation |
| Saskatchewan Research Council 2a |
| SaskBuilds Corporation Tourism Saskatchewan |
| Education |
| Battlefords First Nations Joint Board of Education (partnership - organization under shared control) 1c |
| Boards of Education 1c |
| Chinook School Division No. 211 |
| Christ the Teacher Roman Catholic Separate School Division No. 212 |
| Conseil des écoles fransaskoises no. 310 Creighton School Division No. 111 |
| Good Spirit School Division No. 204 |
| Holy Family Roman Catholic Separate School Division No. 140 |
| Holy Trinity Roman Catholic Separate School Division No. 22 |
| Horizon School Division No. 205 |
| Ile-a-la Crosse School Division No. 112 |
| Light of Christ Roman Catholic Separate School Division No. 16 |
| Living Sky School Division No. 202 |
| Lloydminster Roman Catholic Separate School Division No. 89 |
| Lloydminster School Division No. 99 |
| North East School Division No. 200 |
| Northern Lights School Division No. 113 |
| Northwest School Division No. 203 |
| Prairie South School Division No. 210 |
| Prairie Spirit School Division No. 206 |
| Prairie Valley School Division No. 208 |
| Prince Albert Roman Catholic Separate School Division No. 6 |
| Regina Roman Catholic Separate School Division No. 81 Regina School Division No. 4 Saskatchewan Rivers School Division No. 119 |
| Saskatoon School Division No. 13 |
| South East Cornerstone School Division No. 209 |
| St. Paul’s Roman Catholic Separate School Division No. 20 |
| Sun West School Division No. 207 |
| Ministry of Advanced Education 2a |
| Ministry of Education 2a |
| Ministry of Immigration and Career Training 2a |
| North Central Shared Facility (partnership - 72.9 per cent interest in assets and 69.7 per cent interest in operations under shared control)1c |
| Regional Colleges 1b |
| Carlton Trail College |
| Cumberland College |
| Great Plains College |
| North West College |
| Northlands College |
| Parkland College |
| Southeast College |
| Saskatchewan Apprenticeship and Trade Certification Commission 1b |
Government of Saskatchewan Public Accounts 2021-22 81
Summary Financial Statements
| Government Reporting Entity (continued) | Schedule 19 |
| Education (continued) |
| Saskatchewan Polytechnic 1b |
| Saskatchewan Professional Teachers Regulatory Board 1c |
| Saskatchewan Student Aid Fund |
| Training Completions Fund |
| Environment and Natural Resources 3 |
|
Commercial Revolving Fund |
| CIC Asset Management Inc. 2b |
| Fish and Wildlife Development Fund |
| Forest Management Funds |
| Carrier Forest Management Trust Fund |
| Crown Agricultural Land Forest Fund |
| Dunkley Forest Renewal Trust |
| Island Forests Management Fund |
| L&M Forest Management Trust Fund |
| Meadow Lake OSB Forest Management Trust Fund |
| Mee-Toos Forest Management Fund Trust |
| Mistik Forest Management Trust |
| North Central Trust Fund |
| Park Land Forests Management Fund |
| Sakaw Forest Renewal Trust Fund |
| Weyerhaeuser Forest Renewal Trust Fund |
| Impacted Sites Fund |
| Institutional Control Monitoring and Maintenance Fund |
| Institutional Control Unforeseen Events Fund |
| Ministry of Environment 2a |
| Ministry of Parks, Culture and Sport 2b |
| Oil and Gas Orphan Fund |
| Operator Certification Board |
| Saskatchewan Research Council 2b |
| Saskatchewan Technology Fund |
| Water Security Agency |
| General Government 3 |
| Century Plaza Condominium Corporation |
| Crown Investments Corporation of Saskatchewan (separate) |
| Extended Health Care Plan for Certain Other Employees 1d |
| Extended Health Care Plan for Certain Other Retired Employees 1d |
| Legislative Assembly and its Officers 2a |
| Ministry of Finance 2a |
| Ministry of Government Relations 2b |
| Ministry of Highways 2b |
| Ministry of Justice and Attorney General 2b |
| Ministry of Parks, Culture and Sport 2b |
| Ministry of SaskBuilds and Procurement 2a |
| Office of Executive Council |
| Public Employees Benefits Agency Revolving Fund |
| Public Employees Dental Fund 1d |
| Public Employees Disability Income Fund 1d |
| Public Employees Group Life Insurance Fund 1d |
| Public Service Commission |
| Queen’s Printer Revolving Fund |
| School Division Tax Loss Compensation Fund |
| Health |
| eHealth Saskatchewan |
| Health Quality Council |
| Health Sector Affiliates |
| All Nations’ Health Hospital Inc. |
| Bethany Pioneer Village Inc. |
| Circle Drive Special Care Home Inc. |
| Cupar and District Nursing Home Inc. |
| Duck Lake and District Nursing Home Inc. |
| Foyer St. Joseph Nursing Home Inc. |
| Jubilee Residences Inc. |
| Lakeview Pioneer Lodge Inc. |
| Lumsden & District Heritage Home Inc. |
| Lutheran Sunset Home of Saskatoon |
| Mennonite Nursing Homes Incorporated |
| Mont St. Joseph Home Inc. |
| Oliver Lodge |
| Providence Place for Holistic Health Inc. |
| Radville Marian Health Centre Inc. |
| Raymore Community Health and Social Centre |
| Salvation Army - William Booth Special Care Home |
| Santa Maria Senior Citizens Home Inc. |
| Saskatoon Convalescent Home |
| Sherbrooke Community Society Inc. |
| Société Joseph Breton Inc. |
| Spruce Manor Special Care Home Incorporated |
| St. Ann’s Senior Citizens Village Corporation |
| St. Anthony’s Hospital |
| St. Joseph’s Hospital (Grey Nuns) of Gravelbourg |
| St. Joseph’s Hospital of Estevan |
| St. Joseph’s Integrated Health Centre of Macklin Inc. |
| St. Paul Lutheran Home of Melville |
| St. Peter’s Hospital, Melville |
| Strasbourg and District Health Centre Corp. |
| Sunnyside Adventist Care Centre |
| The Border-Line Housing Company (1975) Inc. |
| The Qu’Appelle Diocesan Housing Company |
| The Regina Lutheran Housing Corporation |
| Ukrainian Sisters of St. Joseph of Saskatoon |
| Warman Mennonite Special Care Home Inc. |
| Ministry of Health |
| Saskatchewan Association of Health Organizations Inc. |
| Saskatchewan Cancer Agency |
| Saskatchewan Health Authority |
| Saskatchewan Impaired Driver Treatment Centre Board of Governors |
82 Government of Saskatchewan Public Accounts 2021-22
Summary Financial Statements
|
Government Reporting Entity (continued) |
Schedule 19 |
Protection of Persons and Property
Correctional Facilities Industries Revolving Fund
Criminal Property Forfeiture Fund
Financial and Consumer Affairs Authority of Saskatchewan
Firearms Secretariat 4
Integrated Justice Services
Law Reform Commission of Saskatchewan
Legislative Assembly and its Officers 2b
Ministry of Corrections, Policing and Public Safety
Ministry of Government Relations 2b
Ministry of Justice and Attorney General 2a
Ministry of Labour Relations and Workplace Safety
Saskatchewan Public Safety Agency
Sask911 Account
Victims’ Fund
Social Services and Assistance
Ministry of Government Relations 2b
Ministry of Parks, Culture and Sport 2b
Ministry of Social Services
Saskatchewan Housing Corporation 1d
Saskatchewan Legal Aid Commission
Transportation
Ministry of Government Relations 2b
Ministry of Highways 2a
Transportation Partnerships Fund
Government Business Enterprises (Modified Equity)
Utility 3
Saskatchewan Power Corporation
Saskatchewan Telecommunications Holding Corporation
Saskatchewan Water Corporation
SaskEnergy Incorporated
Insurance & Financing 3
Municipal Financing Corporation of Saskatchewan 1d
Saskatchewan Auto Fund
Saskatchewan Government Insurance
Workers’ Compensation Board (Saskatchewan) 1d
Liquor & Gaming 3
Liquor and Gaming Authority
Saskatchewan Gaming Corporation
| 1 | The year-ends of certain entities differ from March 31, 2022: a April 30, 2021; b June 30, 2021; c August 31, 2021; d December 31, 2021. |
| 2 | Activities are allocated across more than one theme: a primary activity; b secondary activity. |
| 3 | Included in Other for segment disclosure (schedule 17). |
| 4 | Established during 2021-22. |
| 5 | Entity amalgamated with CIC Asset Management Inc. during 2021-22. |
Government of Saskatchewan Public Accounts 2021-22 83
Glossary of Terms
Glossary of Terms
Accumulated (Deficit): The amount by which expense has exceeded revenue from the beginning of provincial incorporation (1905) plus any adjustments that were charged directly to the accumulated deficit. It is calculated as the difference between total assets and liabilities.
Accumulated Surplus: The amount by which revenue has exceeded expense from the beginning of provincial incorporation (1905) plus any adjustments that were charged directly to the accumulated surplus. It is calculated as the difference between total assets and liabilities.
Amortization: A systematic process of allocating an amount to revenue or expense over a period of time. Capital assets are amortized to expense over their expected remaining economic life. Actuarial gains and losses, such as those experienced by pension plans, are also amortized.
Amortized Cost: The initial cost of a security adjusted for the cumulative amortization of any purchase premium or discount, less any principal repayments.
Canada Health Transfer: A federal transfer provided, on an equal per capita cash basis, to jurisdictions in support of health care.
Canada Social Transfer: A federal transfer provided, on an equal per capita cash basis, to jurisdictions in support of post-secondary education, social services and assistance, early childhood development, early learning and childcare.
Capital Asset: An asset with physical substance held by the Government that has an economic life extending beyond one year, to be used on a continuing basis and is not for sale in the ordinary course of operations.
Capital Transfer: A grant provided to a third party, such as a university or municipality, to acquire or develop capital assets.
Consolidation: The method used to account for government service organizations (GSOs) in the Summary Financial Statements (SFS) in which the accounts of GSOs are adjusted to the basis of accounting described in note 1 of the SFS and then combined with other GSOs and partnerships. Inter-entity balances and transactions are eliminated.
Contingency: A possible right to economic resources, or an obligation that may result in future sacrifice of economic benefits, arising from existing conditions or situations involving uncertainty.
Contractual Obligation: An obligation to others that will become a liability in the future when the terms of contracts or agreements are met.
Contractual Right: A right to economic resources that will result in both an asset and revenue in the future when the terms of contracts or agreements are met.
Debenture: A certificate of indebtedness where the issuer promises to pay interest and repay principal by a maturity date. It is usually unsecured, meaning there are no liens or pledges on any specific assets.
Debt: An obligation incurred through the issuance of debt instruments. Terms used when describing debt include:
Gross debt is borrowings through the issuance of debt instruments such as promissory notes and debentures.
Sinking funds are funds set aside for the repayment of debt.
Public debt is gross debt net of sinking funds.
General debt is public debt net of loans to Crown corporations for GBE specific debt.
Government business enterprise (GBE) specific debt is debt issued by GBEs or debt issued by the General Revenue Fund (GRF) specifically on behalf of a GBE where the government expects to realize the receivable from the GBE and settle the external debt simultaneously.
Guaranteed debt is the debt of others that the Government has agreed to repay if others default.
Deficit: The amount by which expense exceeds revenue for a fiscal period.
Derivative: A contract in which the value is based on the performance of an underlying financial asset, index or other investment. It does not require an initial investment and is settled at a future date.
84 Government of Saskatchewan Public Accounts 2021-22
Glossary of Terms
Financial Asset: An asset that can be used to discharge existing liabilities or finance future operations and is not for consumption in the normal course of operations.
Financial Instrument: Any contract that gives rise to a financial asset of one party and a financial liability or equity instrument of another party.
Financing Charges: Costs associated with general debt, pension liabilities, obligations under long-term financing arrangements such as public private partnerships, and capital lease obligations. Financing charges include interest, foreign exchange gains and losses, discounts, fees and commissions.
Fixed Rate: An interest rate that remains fixed either for an entire term or part of a term.
Floating Rate: An interest rate that changes on a periodic basis.
General Revenue Fund (GRF): The primary operational account for the Government through which all provincial monies under the direct authority of the Legislative Assembly are collected and disbursed.
Government Business Enterprise (GBE): An entity that is controlled by the Government, is self-sufficient and has the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as its principal activity. GBEs are recorded in the SFS using the modified equity method.
Government Reporting Entity: A set of entities that are either controlled by the Government (government service organizations and government business enterprises) or subject to shared control (partnerships). Trusts administered by the Government are excluded from the government reporting entity.
Government Service Organization (GSO): An entity that is controlled by the Government, except those designated as GBEs. GSOs are consolidated in the SFS.
Gross Domestic Product (GDP): The standard measure of the overall size of an economy, the value of all goods and services produced during a given period.
Hedge: A strategy to minimize the risk of loss on an asset (or liability) from market fluctuations such as interest rate or foreign exchange rate changes. This is accomplished by entering into offsetting commitments with the expectation that a future change in the value of the hedging instrument will offset the change in the value of the asset (or liability).
Modified Equity: The method used to account for GBEs in the SFS. 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 GBE.
Net Debt: The difference between liabilities and financial assets and represents the future revenue required to pay for past transactions or events.
Net Foreign Exchange Gain (Loss): Potential gains and losses arise on foreign currency denominated monetary items when the exchange rate fluctuates. The net foreign exchange gain (loss) represents the portion of this potential gain (loss) that has not been included in the accumulated deficit or surplus to date, but rather will be recognized over the remaining life of the monetary item.
Net Realizable Value: The selling price of an asset less any costs incurred to make the sale.
Non-Financial Asset: An asset that is acquired, constructed or developed and does not normally provide resources to discharge existing liabilities.
Other Comprehensive Income (Loss) (OCI): OCI includes certain unrealized gains and losses of GBEs that are excluded from the deficit or surplus but recognized as a change in net debt and accumulated deficit or surplus during the period.
Partnership: A contractual arrangement between the Government and one or more partners outside the government reporting entity where the partners share, on an equitable basis, the risks and benefits of the arrangement. Partnerships are proportionately consolidated in the SFS.
Pension Liability: An actuarial estimate of discounted future payments to be made to retirees under the Government’s pension plans, net of plan assets.
Government of Saskatchewan Public Accounts 2021-22 85
Glossary of Terms
Premium/Discount: The amount by which the selling price of a security is greater or less than its par or face value.
Present Value: The current value of one or more future cash payments, determined by discounting the future cash payments using interest rates.
Proportionate Consolidation: The method used to account for partnerships in the SFS in which the accounts of partnerships are adjusted to the basis of accounting described in note 1 of the SFS and then the Government’s proportionate share are combined with other GSOs and partnerships. Inter-entity balances and transactions are eliminated.
Public Private Partnership (P3): A long-term contractual arrangement between the Government and a private sector contractor to deliver public infrastructure. Under such contractual arrangements, a private contractor: provides some or all of the financing for the project; designs and builds the project, often providing operations and maintenance for the project; and receives payments over an extended period of time. The liabilities arising from P3 arrangements are classified in the SFS as obligations under long-term financing arrangements.
Related Party: A related party exists when one party has the ability to exercise control or shared control over the other. Two or more parties are related when they are subject to common control or shared control. Related parties also include key management personnel, their close family members and organizations controlled by, or under shared control of, any of these individuals.
Remediation: The improvement of a contaminated site to prevent, minimize or mitigate damage to human health or the environment.
Restructuring Transaction: A transfer of an integrated set of assets and/or liabilities, together with related program or operating responsibilities without consideration based primarily on the fair value of the individual assets and liabilities transferred.
Segment: A distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to help users of the SFS identify the resources allocated to support the major activities of a government.
Subsidiary: An organization that is wholly-owned or controlled by another organization.
Summary Financial Statements (SFS): The statements prepared to account for the full nature and extent of the financial activities of the Government.
Surplus: The amount by which revenue exceeds expense for a fiscal period.
Transfer: A transfer of money from a government to an individual, an organization or another government for which the government making the transfer does not: receive any goods or services directly in return, as would occur in a purchase/sale transaction; expect to be repaid, as would be expected in a loan; or expect a financial return, as would be expected in an investment.
86 Government of Saskatchewan Public Accounts 2021-22
| This ‘18-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 4/1/23 | None on these Dates | |||
| Filed on: | 12/30/22 | |||
| 6/16/22 | ||||
| 4/1/22 | ||||
| For Period end: | 3/31/22 | |||
| 12/31/21 | ||||
| 8/31/21 | ||||
| 6/30/21 | ||||
| 4/30/21 | ||||
| 1/1/16 | ||||
| 12/31/14 | ||||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/03/22 Saskatchewan Province Of 424B2 1:11M Donnelley … Solutions/FA |
