To the Board of Directors of Canadian Patient Safety Institute
The accompanying summarized financial statements, which comprise the summarized statement of financial position as at March 31, 2018, and the summarized statement of operations for the year then ended, and related notes, are derived from the complete set of audited annual financial statements of Canadian Patient Safety Institute for the year ended March 31, 2018. We expressed an unmodified audit opinion on those financial statements in our report dated June 22, 2018. Those financial statements, and the summarized financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.
The summarized financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summarized financial statements, therefore, is not a substitute for reading the audited financial statements of Canadian Patient Safety Institute.
Management’s Responsibility for the Summarized Financial Statements
Management is responsible for the preparation of a summary of the audited financial statements on the basis described in the notes to the summarized financial statements.
Auditor’s Responsibility
Our responsibility is to express an opinion on the summarized financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard 810, Engagements to Report on Summary Financial Statements.
Opinion
In our opinion, the summarized financial statements derived from the audited financial statements of Canadian Patient Safety Institute for the year ended March 31, 2018 are a fair summary of those financial statements, on the basis described in the notes to the summarized financial statements.
Chartered Professional Accountants
June 28, 2018
| 2018 | 2017 | |
|---|---|---|
| $ | $ | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 2,021,653 | 1,508,212 |
| Accounts receivable | 142,693 | 99,616 |
| Prepaid expenses | 158,600 | 163,942 |
| 2,322,946 | 1,771,770 | |
| Capital assets | 295,201 | 419,759 |
| 2,618,147 | 2,191,529 | |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | 726,123 | 425,491 |
| Deferred government revenue (Note 3) | 579,272 | 492,616 |
| Deferred revenue | 145,260 | 7,500 |
| Deferred rent allowance | 19,962 | 28,834 |
| Deferred lease allowance | 151,418 | 218,715 |
| 1,622,035 | 1,173,156 | |
| Net Assets | ||
| Invested in capital assets | 143,783 | 201,044 |
| Unrestricted assets | 397,082 | 362,082 |
| Internally restricted net assets | 455,247 | 455,247 |
| 996,112 | 1,018,373 | |
| 2,618,147 | 2,191,529 |
| 2018 | 2017 | |
|---|---|---|
| $ | $ | |
| Revenue | ||
| Contributions from Government of Canada (Note 3) | 7,513,343 | 7,649,963 |
| Registration, sponsorships and product sales | 375,370 | 293,646 |
| Other revenues | 29,964 | 21,012 |
| Gain on disposal of assets | 762 | 952 |
| 7,919,439 | 7,965,573 | |
| Program expenses | ||
| National Integrated Patient Safety Strategy | 1,212,132 | 655,346 |
| Safety Improvement and Innovation | 532,665 | 794,680 |
| Strategic Communications | 435,423 | 537,675 |
| Capability Building and Knowledge Translation | 315,725 | 261,384 |
| 2,495,945 | 2,249,085 | |
| Operations expenses | ||
| Salaries, wages and benefits | 3,782,276 | 3,936,001 |
| Other operating costs | 866,000 | 933,320 |
| Professional services | 262,955 | 317,082 |
| Travel and meetings | 212,323 | 202,501 |
| Board of Directors | 176,067 | 146,849 |
| Depreciation | 146,134 | 139,038 |
| 5,445,755 | 5,674,791 | |
| 7,941,700 | 7,923,876 | |
| (Deficiency) excess of revenue over expenses | (22,261) | 41,697 |
Purpose of organization
The Canadian Patient Safety Institute (the “Institute”) was incorporated under the Canada Corporations Act on December 5, 2003, and effective October 1, 2014, continued under the Canada Not-for-Profit Corporations Act. The purpose of the Institute is to address patient safety issues by strengthening system coordination, promoting best practices and providing advice to governments and stakeholders that places patient safety in the broader context of quality improvement in healthcare.
The Institute is exempt from income taxes under Section 149(1)(I) of the Income Tax Act.
Basis of presentation
The summarized financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. The statement of changes in net assets, statement of cash flow and certain note disclosures have been omitted. Reading the summarized financial statements, therefore, is not a substitute for reading the audited financial statements of the Institute.
The Institute is committed to full accountability and transparency in all we do. Our audited financial statements for the year ended March 31, 2018, including all disclosures required by Canadian accounting standards for not-for-profit organizations, can be found on the Institute’s website at www.patientsafetyinstitute.ca.
Contributions from Government of Canada
Funding received for the 2017-2018 fiscal year was the fifth under a five-year contribution agreement with the Government of Canada that provides for total contributions of up to $38,160,000 for the 2014-2018 fiscal years. During the year, the Institute received payments of $7,600,000 (2017 - $7,600,000) from the Government of Canada.
During the year, this contribution agreement was extended by one more year, to provide an additional $7,600,000 for the 2019 fiscal year.
The contribution agreement specifies that the funding must be used for the eligible expenditures under the contribution agreement, or returned to the Government of Canada. Eligible expenditures are determined on a capital expenditure basis. Where funds received in a given year are not fully expended on eligible expenditures, the agreement permits that up to 10% of the current year’s funding can be carried forward to the following year. Of the $7,600,000 in funds received in the year plus the $492,616 carried forward from the 2016-2017 year, the Institute recognized $7,513,343 as revenue, and is holding the remaining $579,272 as deferred revenue to be applied in the 2018-2019 fiscal year. The Institute’s excess of revenue over eligible expenses for Government of Canada purposes was $35,000, as reflected in the increase in net assets other than those invested in capital.
| 2018 | 2017 | |
|---|---|---|
| $ | $ | |
| Adjustment to capital expenditure basis: | ||
| (Deficiency) excess of revenue over expenses | (22,261) | 41,697 |
| Add back depreciation | 146,134 | 139,038 |
| Deduct capital expenditures | (21,576) | (73,439) |
| Reverse amortization of leasehold allowance | (67,297) | (67,296) |
| Add proceeds on disposal of assets | 762 | 952 |
| Reverse gain on disposal of assets | (762) | (952) |
| Net result reported to Government of Canada | 35,000 | 40,000 |
The Institute’s ability to continue operations depends on the Government of Canada providing on-going contributions in accordance with the contribution agreement.
