Page 57 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
55
16. OTHER EXPENSES
March 31,
March 31,
2012
2011
Other
$ 1,669,364
$ 1,547,055
Departmental supplies
1,058,327
1,102,791
Printing
1,036,158
966,270
Uniforms and laundering
826,120
944,969
Travel and sustenance
743,300
787,784
Equipment lease
689,718
733,567
Staff training
510,432
571,625
Equipment repairs
366,053
417,421
$ 6,899,472
$ 7,071,482
17. FINANCE COSTS
March 31,
March 31,
2012
2011
Interest on long-term debt
$ 4,165,164
$ 4,384,830
Interest on finance lease obligations
5,609,720
5,340,174
$ 9,774,884
$ 9,725,004
The weighted average capitalization rate on funds borrowed generally is 6.58% per annum (2011 – 6.58 % per annum).
18. EMPLOYEE BENEFITS
Effective April 1, 1997, SIGA established a pension plan for employees. The plan is a defined contribution plan administered
by Great West Life. Substantially all of SIGA’s full-time employees participate in the plan. SIGA’s financial obligation is limited
to matching the required amounts contributed by employees, 6% of salary, which totalled $3,620,339 in fiscal 2012
(2011 – $3,705,265).
19. CAPITAL DISCLOSURES
SIGA’s objectives when managing capital are to ensure adequate capital to support the operations and growth strategies of the
Corporation, and to ensure adequate returns to the shareholders.
SIGA funds its capital requirements through the $5,000,000 capital reserve from SLGA, internal operating activities and debt. SIGA
also has an available line of credit of $2,000,000 at a financial institution (Note 11).
SIGA limits the amount of risk in proportion to its capital. The initial financing option of the Dakota Dunes, Living Sky, and Painted
Hand casino projects (“casino projects”) was limited to variable rate loans. SIGA entered into three interest rate swap agreements
to exchange the variable rate debt instruments to fixed rate loans to mitigate fluctuations in interest rates. SIGA also performs
environmental scanning to determine if any factors have the potential to change the capital structure of the organization. Risk
management reports are presented to the Audit and Finance Committee and Board of Directors on a quarterly basis.