Full report - SGI Canada
Full report - SGI Canada
Full report - SGI Canada
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
INDEPendenT AUdiTors’ <strong>report</strong><br />
Consolidated sTatement of financial position<br />
To the Members of the Legislative Assembly<br />
Province of Saskatchewan<br />
We have audited the accompanying consolidated financial statements of Saskatchewan Government<br />
Insurance (“the Entity”), which are comprised of the consolidated statement of financial position as at<br />
December 31, 2010, and the consolidated statements of operations, comprehensive income, changes in<br />
Province of Saskatchewan’s equity, and cash flows for the year then ended, and a summary of significant<br />
accounting policies and other explanatory information.<br />
Management’s Responsibility for the Consolidated Financial Statements<br />
Management is responsible for the preparation and fair presentation of these consolidated financial<br />
statements in accordance with Canadian generally accepted accounting principles, and for such internal<br />
control as management determines is necessary to enable the preparation of consolidated financial<br />
statements that are free from material misstatement, whether due to fraud or error.<br />
Auditor’s Responsibility<br />
Our responsibility is to express an opinion on these consolidated financial statements based on our<br />
audit. We conducted our audit in accordance with Canadian generally accepted auditing standards.<br />
Those standards require that we comply with ethical requirements and plan and perform an audit to<br />
obtain reasonable assurance about whether the consolidated financial statements are free from material<br />
misstatement.<br />
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures<br />
in the consolidated financial statements. The procedures selected depend on our judgment, including<br />
the assessment of the risks of material misstatement of the consolidated financial statements, whether<br />
due to fraud or error. In making those risk assessments, we consider internal control relevant to the<br />
Entity’s preparation and fair presentation of the consolidated financial statements in order to design audit<br />
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on<br />
the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of<br />
accounting policies used and the reasonableness of accounting estimates made by management, as well<br />
as evaluating the overall presentation of the consolidated financial statements.<br />
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our<br />
audit opinion.<br />
Opinion<br />
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial<br />
position of Saskatchewan Government Insurance as at December 31, 2010, and the results of its<br />
operations and its cash flows for the year then ended in accordance with Canadian generally accepted<br />
accounting principles.<br />
December 31 2010 2009<br />
(thousands of $)<br />
Assets<br />
Cash and cash equivalents (note 3) $ 27,809 $ 16,920<br />
Accounts receivable (note 4) 127,479 125,334<br />
Deferred policy acquisition costs 56,204 52,412<br />
Reinsurers’ share of unearned premiums 9,835 9,480<br />
Future income taxes (note 12) 1,782 1,406<br />
Investments (note 5) 591,219 579,730<br />
Unpaid claims recoverable from reinsurers 44,132 29,626<br />
Property, plant and equipment (note 6) 11,121 8,746<br />
Other assets (note 7) 3,234 3,783<br />
$ 872,815 $ 827,437<br />
Liabilities<br />
Accounts payable and accrued liabilities $ 29,292 $ 39,476<br />
Dividend payable 15,462 22,199<br />
Premium taxes payable 18,856 17,474<br />
Amounts due to reinsurers 5,960 4,578<br />
Unearned reinsurance commissions 3,183 3,051<br />
Unearned premiums 242,497 218,893<br />
Provision for unpaid claims (note 8) 316,820 293,575<br />
632,070 599,246<br />
Non-controlling interest 2,428 1,879<br />
Province of Saskatchewan’s equity<br />
Equity advances (note 9) 80,000 80,000<br />
Retained earnings 131,315 126,479<br />
Accumulated other comprehensive income 27,002 19,833<br />
238,317 226,312<br />
$ 872,815 $ 827,437<br />
Commitments and contingencies (note 21)<br />
(see accompanying notes)<br />
Chartered Accountants<br />
Regina, <strong>Canada</strong><br />
On behalf of the Board:<br />
February 24, 2011<br />
Warren Sproule, Q.C.<br />
Chair Person, Board of Directors<br />
Howard Crofts<br />
Director<br />
60 | 2010 INDEPENDENT AUDITORS’ REPORT CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2010 | 61
Change language