Operations 2022
The College is now a hybrid workplace, with staff dividing their week working from home and in-office. The College Council has now returned to in-person meetings. Committee meetings are at the discretion of the chair, depending on the length of time and the nature of matters under consideration.
We enjoyed another clean audit, with an unmodified opinion from our auditors for 2022. The financial statements, approved by the College’s Council, reflect another unusual year, with a focus on inflation and unrest in the healthcare system. These will be realities that we will continue to face in 2023.
The financial statements approved by the College’s Council reflect another unusual year, with a focus on inflation and unrest in the healthcare system.
The deficit of $525,500 for 2022 reflects the inflationary reality and market volatility facing businesses and individuals in a post-pandemic world. The deficit is derived from an unrestricted fund deficit of $70,623 ($114,787 surplus in 2021) and a combined investment income and a decrease in the fair market value of our investments for a deficit of $454,877 ($515,606 surplus in 2021) in the reserve fund. This overall deficit is largely an accounting deficit and not a cash flow deficit.
It is important to note that although there was an operational deficit in 2022, revenues and expenses performed better than budgeted. An operational deficit of $310,814 had been budgeted for 2022.
Update on Investments
In keeping with accounting and tax advice, the reserve maintains a target of 60% of our annual budget. Investments will always ebb and flow and decreases in fair market value are expected. Our reserve fund took a hit with dipping markets in 2022, but we remain near our target. Significant increases in fair market value were seen in 2021 and were not expected to continue. We are confident that our reserve will recover over time.
One of our objectives, included in the College’s Statement of Investment policy and Goals policy, is to ensure investments are in accordance with socially responsible investing. Our investment philosophy is continuously under the review of the Finance and Audit Committee and is defined presently as follows: To invest funds in a responsible manner with a specific focus on Socially Responsible Investing (SRI), with direct investments in the following areas excluded: gambling, tobacco, alcohol, cannabis, and weapons.
We continue to ensure our investments are invested to promote the short and long-term sustainability of our operations. Preservation of principal is the overriding consideration in investment decisions.
2022 Financial Statements
Report of the Independent Auditor on the Summary Financial Statements
To the members of the College of Physicians & Surgeons of Nova Scotia
Opinion
The summary financial statements, which comprise the summary statement of financial position as at December 31, 2022, and the summary statements of operations, changes in net assets and cash flows for the year then ended, and related note, are derived from the audited financial statements of the College of Physicians and Surgeons of Nova Scotia for the year ended December 31, 2022.
In our opinion, the accompanying summary financial statements are a fair summary of the audited financial statements, in accordance with the criteria disclosed in Note 1.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor’s report thereon.
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated March 3, 2023.
Management’s Responsibility for the Summary Financial Statements
Management is responsible for the preparation of the summary financial statements in accordance with the criteria disclosed in Note 1.
Auditor’s Responsibility
Our responsibility is to express an opinion on whether the summary financial statements are a fair summary of the audited financial statements based on our procedures, which were conducted in accordance with the Canadian Auditing Standard (CAS) 810, Engagements to Report on Summary Financial Statements.
Halifax, Canada
March 3, 2023
Chartered Professional Accountants
Grant Thornton LLP
Nova Centre, North Tower
Suite 1000, 1675 Grafton Street
Halifax, NS, B3J 0E9
T +1 902 421 1734
F +1 902 420 1068
GrantThornton.ca
Summary Statement of Financial Position | December 31, 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current | ||||
| Cash, short term investments and other assets | $7,562,079 | $7,338,181 | ||
| Investments | 4,423,812 | 4,878,689 | ||
| Capital Assests | 742,624 | 790,224 | ||
| $12,728,515 | $13,007,094 | |||
| LIABILITIES | ||||
| Current | ||||
| Payables and accruals | $6,434,916 | $6,187,995 | ||
| NET ASSETS | ||||
| Internally restricted | 4,423,812 | 4,878,689 | ||
| Unrestricted | 1,869,787 | 1,940,410 | ||
| $12,728,515 | $13,007,094 | |||
Summary Statement of Operations | December 31, 2022
| Unrestricted | Reserve Fund | 2022 Total | 2021 Total | |
|---|---|---|---|---|
| Revenues | $6,838,640 | $(454,877) | $6,383,763 | $7,168,917 |
| Expenditures | 6,909,263 | - | 6,909,263 | 6,538,524 |
| Excess (deficiency) of revenues over expenditures | $(70,623) | $(454,877) | $(525,500) | $630,393 |
Summary Statement of Changes in Net Assets | December 31, 2022
| Unrestricted | Reserve Fund | 2022 Total | 2021 Total | |
|---|---|---|---|---|
| Net assets, beginning of year | $1,940,410 | $4,878,689 | $6,819,099 | $6,188,706 |
| Excess (definciency) of revenues over expenditures | (70,623) | (454,877) | (525,500) | 630,393 |
| Net assets, end of year | $1,869,787 | $4,423,812 | $6,293,599 | $6,819,099 |
Summary Statement of Cash Flows | December 31, 2022
| 2022 | 2021 | |
|---|---|---|
| Increase (decrease) in cash and cash equivalents | ||
| Operating | $200,383 | $278,006 |
| Investing | (180,991) | (170,021) |
| Net increase in cash and cash equivalents | 19,392 | 107,985 |
| Cash and cash equivalents | ||
| Beginning of year | 304,103 | 196,118 |
| End of Year | $323,495 | $304,103 |
Note to Summary Financial Statements
1. Basis of presentation
These summary financial statements of the College of Physicians and Surgeons of Nova Scotia are derived from the complete financial statements as at and for the year ended December 31, 2022, prepared in accordance with Canadian accounting standards for not-for-profit organizations, of the College of Physicians and Surgeons of Nova Scotia.
Management is responsible for the preparation of the summary financial statements. The summary financial statements are comprised of the summary statement of financial position and the summary statements of operations changes in net assets and cash flows, and do not include any other schedules, a summary of significant accounting policies or the notes to the financial statements. The summary statements of financial position, operations, changes in net assets and cash flows are presented with the same amounts as the audited financial statements, but certain balances have been combined and all note referencing has been removed.
The preparation of these summary financial statements requires management to determine the information that needs to be reflected in them so that they represent a fair summary of the complete financial statements.
The summary financial statements contain the information from the complete financial statements dealing with matters having a pervasive or otherwise significant effect on the summary financial statements. The full set of annual audited financial statements is available on the College of Physicians & Surgeons of Nova Scotia’s website.