2004 Crown Investments Corporation of Saskatchewan Annual Report

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GovernanceSubsidiary Crown Corporation Governance InitiativesCIC’s initiatives in this area are directed atstrengthening the governance, performance andaccountability of its subsidiary Crown corporationboards.The objective is to help the boards fulfilltheir responsibilities for overseeing and directingthe management of Crown corporations.Director DevelopmentSince 1998, CIC has sponsored a comprehensivetraining program for the directors of its subsidiaryCrown corporations. In 2004, CIC delivered oneorientation and two regular training sessions.The orientation session was intended for recentlyappointed directors. It provided an introductionto the role and primary duties of boards and anoverview of best governance practices. Topicsaddressed included: techniques and processesto support effective decision-making; thecharacteristics of high-functioning boards; board,director and CEO evaluation practices; boardrenewal strategies; the legal responsibilities andliabilities of directors; strategic and successionplanning; and a review of corporate governancetrends.The first regular training session focused on bestpractices of boards and ways to enhance board anddirector performance. The second regular sessionaddressed current developments in Canadiancorporate governance standards, and highlightedthe board’s role in promoting an ethical corporateculture.In addition to the orientation and training sessions,CIC distributed several topical publications relatedto corporate governance as part of its Directors’Reading Program.Accountability and TransparencyCIC has developed tools to assist Crown boardsin evaluating and enhancing overall boardperformance, as well as the performance of chairs,committees and individual directors. All Crownboards annually evaluate some aspect of board ordirector performance. The evaluations assist theboards in identifying areas for improvement, gapsin skill sets on the board, and individual or collectiveprofessional development needs.CIC has encouraged the Crowns to improvetheir disclosure and reporting practices in theirannual reports. Since 2002, the Crown boardshave included in the annual report a corporategovernance statement that describes andbenchmarks their governance practices to the TSXCorporate Governance Guidelines.Board RenewalTo perform effectively, boards must have the rightmix of backgrounds and skill sets, as well as anytraining required to augment their capabilities.In 2004, several new directors were appointedto CIC’s subsidiary Crown boards, bringing freshperspectives, diverse backgrounds and newskills to boardroom deliberations. This includedthe appointment of more youth and aboriginalmembers. There is now youth and aboriginalrepresentation on each board.Communicating Shareholder ExpectationsThe open exchange of shareholder expectationsand views with its subsidiary Crown boardsremains a priority for CIC. In 2004, senior CICofficials held four meetings, and the Minister ofCrown Management Board met once, with Crownboard chairs to discuss issues of mutual interest.Subsidiary Crown board chairs continued to submitregular reports to the CIC Board highlighting majorCrown board activities and significant corporateinitiatives and risks.Audit Committees – The New Regulatory RegimeCIC established an Ad Hoc Committee of AuditCommittee Chairs in 2004. The purpose of thecommittee is to review recent governanceand regulatory developments related to auditcommittee functions and auditor oversight, andto recommend adoption of new standards. TheAd Hoc Committee is expected to present itsrecommendations to CIC later in 2005.C I C28
Strategic Direction and Performance ReportingThe Crown Sector Strategic PlanThe Crown Sector Strategic Plan provides a guiding vision for the Crown sector. It defines the Crown sector’sprimary business purposes, common business values, and strategic business objectives. CIC assumes theleadership role in the development of the Crown Sector Strategic Plan. The Plan’s objective is to articulateshareholder expectations and to provide long-term direction. This facilitates long-term planning and thedevelopment of strategies within individual Crown corporations that are aligned with the shareholder’soverall strategic direction.Performance Reporting Using the “Balanced Scorecard”CIC uses a widely accepted performance management system known as the Balanced Scorecard. This system isused to establish, communicate and report on key corporate performance targets in a standardized and conciseformat. CIC provides its Board with quarterly progress reports on its performance relative to targets. The CICBalanced Scorecard contains four perspectives which are described as follows:PerspectiveLeadership and FinancialPublic PurposeCustomers and StakeholdersInnovation and GrowthDescriptionThis perspective highlights CIC’s value in leading Saskatchewan’s Crown sector,through its articulation of a business vision and strategy for the sector. CIC does thisby establishing financial frameworks and performance management objectives andby providing corporate governance guidance and support to the Crowns and theirBoards of Directors.This perspective highlights those initiatives undertaken by CIC to support thegovernment’s public purpose objectives for the Crown sector, such as low utilitycost, youth employment and a green and prosperous economy.This perspective challenges CIC to maintain excellent relationships with itsstakeholders, particularly with CIC’s Board of Directors, and to understand and assessemerging issues by providing professional and timely advice and guidance.This perspective focuses on developing internal employee and organizationalstrengths (including creativity, application of skills and expertise, and continuousimprovement), information technology and decision-making capabilities.Did You Know?SGI, SaskTel and SaskEnergy have partnerships with more than 700 Saskatchewanbusinesses to deliver insurance, phone, and natural gas service to Saskatchewanpeople.29 C I C
Page 2 and 3: 2004 Financial HighlightsCrown Sect
Page 4 and 5: Table Of Contents2004 HighlightsLet
Page 6 and 7: Chair’s MessageSaskatchewan’s C
Page 8 and 9: Corporate ProfileCIC is the financi
Page 10 and 11: Corporate ProfileCIC ManagementThe
Page 12 and 13: Corporate ProfileFinancial and Publ
Page 14 and 15: Corporate ProfileCIC’s Holdings20
Page 16 and 17: Corporate ProfileSASKATCHEWAN GOVER
Page 18 and 19: Corporate ProfileSaskatchewan Telec
Page 21: Policy and ProgramsUtility Bundle C
Page 24 and 25: Policy and ProgramsCommitment to Gr
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Page 30: GovernanceFor the purposes of this
Page 35 and 36: Strategic Direction and Performance
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Page 43 and 44: MANAGEMENT’S DISCUSSION AND ANALY
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Page 68 and 69: Consolidated Statement of Financial
Page 70 and 71: Consolidated Statement of Cash Flow
Page 72 and 73: Notes to Consolidated Financial Sta
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Notes to Consolidated Financial Sta
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Non-Consolidated Statement of Finan
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Non-Consolidated Statement of Cash
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Notes to Non-Consolidated Financial
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Pat AtkinsonMinisterPrinted in Sask
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2004 Crown Investments Corporation of Saskatchewan Annual Report

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