Audit Committee report 2018-19

Audit Committee report 2018-19

The Audit Committee oversees the accuracy of Doctors Nova Scotia’s financial statements by reviewing the effectiveness of accounting policies, internal controls and risk-management practices.

The financial statements were audited by KPMG and no errors or omissions were reported. The Aug. 31, 2019, year-end financial statements were approved by the Audit Committee and the Board of Directors. The statements are prepared in accordance with generally accepted Canadian accounting principles.

The Unrestricted Operating fund has a balance of $2,366,993 ($2,490,650 at Aug. 31, 2018). The operating fund reported a deficit of $155,517 against a budgeted deficit of $435,043 for a positive variance of $279,526. This positive budget variance was made up of the following components…
$  29,628 Revenue – sponsorship funds exceeded budget
$  80,365 Expenses – one departure and two maternity leaves reduced staff costs below budget
$126,697 Investments – unrealized gains from market value adjustments exceeded budget
$  42,836 Depreciation expense – new ERP system from Future Commitments fund deferred to 2020

The association invested $215,625 in capital assets ($348,651 in 2018). This included new boardroom audio visual equipment and electrical improvements, computer hardware and software upgrades, President’s office furniture and initial planning for an ERP system replacement.

In accordance with the current master agreement with the Department of Health and Wellness, Doctors Nova Scotia received $6.572 million in funding toward the cost of Member Benefits (Recruitment and Retention) programs.  This funding was distributed to the various benefit programs as follows…
$4,300,194 – Health & dental (65% of total plan costs; 35% paid by plan members)
$   701,000 – Parental leave
$     73,099 – Professional support
$1,198,000 – Targeted projects
$   299,999 – Benefits administration

Overall, the association has a healthy balance sheet and continues to perform well against targets set annually.

Dr. Mike Wadden
Audit Committee chair

Next steps