Page 54 - SIGA_2010-11 Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year Ended March 31, 2011
52
13. COMMITMENTS (CONTINUED)
LETTERS OF CREDIT
SIGA has 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 2011-2012
(2010-2011 – $3,232,128).
SIGA entered into an agreement with Saskatoon Prairieland Park Corporation (“SPPC”) regarding the maintenance of a certain level
of SPPC’s annual 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.
14. 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, First Nations University of Canada, Indigenous Gaming Regulators Inc.,
Saskatchewan Indian Cultural Centre, and Saskatchewan Indian Equity Foundation). 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, 2011 with comparison to the previous year:
2011
2010
Accounts receivable
$
152,469 $
116,332
Accounts payable and accrued liabilities
4,250
Significant transactions with related parties throughout the year are as follows:
2011
Capital lease payments (principal and interest)
$ 6,121,825
Building rent and occupancy
8,001,260
Indigenous Gaming Regulators Inc.
3,257,728
Sponsorship
328,810
Other
2,750
There is also a revenue share agreement regarding ATM revenues that are not included above.
Other transactions with related parties and amounts due to/from them are described separately in these financial statements and the
notes thereto.