The Frontier Health Centre (FHC) is a health clinic controlled by a provincial government. You are senior financial analyst reporting to the Director of Finance. FHC applies the CICA PSA Handbook and does not refer to Sections PS 4200 to PS 4270 as a source of GAAP. Under the accounting policies followed by FHC, it applies Government Transfers, Section PS 3410 as though it was a recipient government.
There were no disposals of tangible capital assets during the year.
Other information (all amounts in thousands):
(a) Grants received is comprised of:
(i) An operating grant of $3,000 per month, repayable in part if the operating expenses for year are less than the amount of the grant.
(ii) A one-time grant of $2,500 from the Town of Saint Anthony. The Town forwarded the funds when the expansion commenced but did not attach any stipulations to the use of the funds.
(iii) A one-time grant of $1,160 from Veterans Services to provide counseling services to discharged soldiers.
FHC has not yet commenced offering this program as it is still recruiting suitable counselors. The agreement with Veterans Services contains a clause requiring the return of monies advanced if the program is not offered.
(iv) A one-time grant of $4,000 from the City of Freeport. The funding was solicited by the Directors of FHC to support the initial startup costs once the expansion is completed. The City remitted the funds shortly after the expansion was started.
(v) A one-time grant of $500 from the provincial government. Under the funding agreement, the money must be used to buy new medical equipment associated with the expansion. As the expansion has not yet been finished, FHC has not taken delivery of the new medical equipment.
(b) In January 2012 the provincial government approved an expansion grant. Construction started in the current fiscal year but is not yet complete. The grant is payable in stages as FHC reports completion of construction milestones certified by the architect. The first such milestone certificate has been received but FHC has not yet filed a claim.
Once the claim is processed, FHC will be eligible for a transfer of $15,000 on account of work completed as at March 15, 2013.
(c) During its 2009 fiscal year, FHC received a multi-year transfer in the amount of $21,300 from the federal government to support specialized cancer care. The grant indicated that it was to fund services to be provided from April 1, 2009 to March 31, 2013. The deferred portion of this grant has been recorded in the accounts.
(d) In March 2013 a senior official of the federal government wrote to the Chief Executive Officer indicating that a FHC has qualified for an unconditional regional development grant of $1,800. The department indicated the funds could not be forwarded immediately as the legislation authorizing these special one-time grants was still in the Senate. The Senate approved the Bill on April 5, 2013, and the Bill received Royal Assent shortly thereafter.
Your Director has asked you to:
(a) Prepare any necessary adjusting entries based on the information provided; and
(b) Prepare a draft statement of financial position, statement of operations and statement of changes in net debt as at March 31, 2013.

  • CreatedJune 09, 2015
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