Operations & FINANCIAL STATEMENTS

Kellie Skelhorn, MBA, CPA-CMA
Chief Operating Officer, Associate Registrar

It was another good but eventful year for the operations of the College. We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.

After 10 years at Bayer’s Road, the College moved to new premises at 175 Western Parkway in Hammonds Plains. Staying put was not a real option: we had outgrown the space which itself required a substantial refresh. We secured a 13-year lease on new and purpose-built space, with rental rates locked in at less per square foot than previous premises. The move came in on time and on budget and we are delighted with our bright new offices.

We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.


We enjoyed an entirely clean audit, the results of which reflect that the books and financial systems of the College are sound and in good shape.


The financial statements are accurate but require some explanation, as they somewhat flatter our actual position in two respects.

The significant operating surplus is largely a function of costly hearings that were anticipated to take place in 2019 but have been pushed into 2020.

Our investment income is primarily an accounting rather than cash gain. The reported gain of $422,000 reflects a moment in time comparison from December 31, 2018 to December 31, 2019 of the market value of investments in our reserve fund. Consideration should be given to timing, as markets had dipped in late 2018 and rebounded during 2019. As such, our statement essentially reflects a trough to peak growth in market value. The two-year return of 5% is a more reasonable reflection of our return.

With respect to our Reserve Fund, based on legal and tax advice, we have targeted maintaining reserves of 60% of annual budget. We were pleased to be at target at the end of 2019. Our investments are made under the oversight of the Finance and Audit Committee. The fund balances investment in equities and fixed income instruments, in keeping with our policy for socially responsible investing.

A word about 2020: since December 31, 2019, the outbreak of COVID-19 and related global responses have caused material disruptions to businesses around the world, leading to an economic slowdown. At the time of writing this report, the fair value of the College’s investments during 2020 had declined by approximately $600,000. The pandemic has certainly underscored the need to have our Reserve.

Financial Statements

Report of the Independent
Auditor on the Summary
Financial Statements


Grant Thornton LLP
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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, 2019, 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, 2019.

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 27, 2020.

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 27, 2020

Chartered Professional Accountants


2019 Financial Statements
Summary Financial Statements

College of Physicians & Surgeons of Nova Scotia
Summary statement of financial position
December 31

20192018
Assets
Current
 Cash, short term investments and other assets$6,476,329$ 5,663,054
Investments4,052,9834,274,713
Capital assets1,079,064296,550
$11,608,376$10,234,317
Liabilities
Current
 Payables and accruals$ 5,872,562$ 5,521,853
Net Assets
Internally restricted

4,052,983

4,274,713
Unrestricted1,682,831437,751
$ 11,608,376$ 10,234,317

College of Physicians & Surgeons of Nova Scotia
Summary statement of operations
Year ended December 31

UnrestrictedReserve and
Capital & Speical Projects Fund
20192018
Revenues$6,496,438$503,270$6,999,708$5,770,433
Expenditures5,976,3585,976,3585,524,173
Excess of revenues over expenditures$520,080$503,270$1,023,350$246,260

College of Physicians & Surgeons of Nova Scotia
Summary statement of changes in net assets
Year ended December 31

Internally restrictedUnrestricted20192018
ReserveCapital & Special ProjectsTotalTotal
Net assets, beginning of year$3,181,178$1,093,535$437,751$4,712,464$4,466,204
Transfers during the year452,714(1,177,714)725,000
Excess of revenues over expenditures418,94984,321520,0801,023,350246,260
Net assets, end of year$4,052,841$142$1,682,831$5,735,814$4,712,464

College of Physicians & Surgeons of Nova Scotia
Summary statement of cash flows
Year ended December 31

20192018
Increase (decrease) in cash and cash equivalents
 Operating$416,254$ 177,454
 Investing(285,289)(394,955)
Net (decrease) increase in cash and cash equivalents130,965(217,501)
Cash and cash equivalents
 Beginning of year66,315283,816
 End of year$197,280$66,315

College of Physicians & Surgeons of Nova Scotia
Note to summary financial statements
December 31, 2019

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, 2019, 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.