Page 52 - 2009_2010_Annual_Report

Basic HTML Version

Saskatchewan Indian Gaming Authority
NOTES TO THE FINANCIAL STATEMENTS
|
Year Ended March 31, 2010
50
14. COMMITMENTS (CONTINUED)
SLOT MACHINES
The Casino Operating Agreement requires SLGA to supply slot machines and the slot management system to SIGA for use in its
casinos and for SIGA to reimburse to SLGA the cost of these machines over the estimated useful life of the equipment. Included
in expenses is $13,370,013 (2009 – $13,107,879) for reimbursement of the purchase of slot machines and the slot machine
management system. SIGA estimates total costs over the next five years, based on the machines currently in use, as follows:
2011
$ 9,183,480
2012
7,787,391
2013
5,022,634
2014
1,892,350
2015
301,035
LETTERS OF CREDIT
During the year, SIGA entered into two letters of credit with First Nations Bank of Canada, $52,500 payable to the City of
Swift Current, and $200,000 payable to the City of Yorkton.
OTHER
The Casino Operating Agreement requires SIGA, upon receiving direction from SLGA, to pay to Indigenous Gaming Regulators
Inc. (“IGR”) the amount of IGR’s annual operating budget. SLGA has directed SIGA to pay IGR $3,232,128 for 2010-2011
(2009-2010 – $2,911,824).
SIGA entered into an agreement with Saskatoon Prairieland Park Corporation (“SPPC”) regarding the maintenance of a certain level
of SPPC’s income when SPPC closed its casino. SIGA agreed to pay SPPC $2,600,000 annually for 30 years payable in monthly
instalments of $216,667. SIGA’s obligation under this agreement was effective August 10, 2007.
15. RELATED PARTY TRANSACTIONS
Significant related parties to SIGA include the FSIN, holder of the Class A membership in SIGA, and entities related to the FSIN
(including Saskatchewan Indian Institute of Technologies, National Indian Financial Corporation, the First Nations University of
Canada and Indigenous Gaming Regulators Inc.). Related parties also include the Tribal Councils of Saskatchewan (and their related
entities) that hold Class B memberships in SIGA. These transactions were made in the normal course of business and have been
recorded at exchange amounts agreed upon between the parties.
The following are balances outstanding with related parties at March 31, 2010 with comparison to the previous year:
2010
2009
Accounts receivable
$ 116,332
$ 41,343
Accounts payable and accrued liabilities
4,250
162,458