Page 56 - SIGA Annual Report 2013

Basic HTML Version

Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2013
56
16. OTHER EXPENSES
March 31, 2013
March 31, 2012
Other
$ 1,620,534
$ 1,669,364
Departmental supplies
1,290,262
1,058,327
Travel and sustenance
1,088,643
743,300
Uniforms and laundering
781,361
826,120
Staff training
659,538
510,432
Equipment lease
541,987
689,718
Equipment repairs
526,220
366,053
Printing
453,991
1,036,158
$ 6,962,536
$ 6,899,472
17. FINANCE COSTS
March 31, 2013
March 31, 2012
Interest on long-term debt
$ 3,843,982
$ 4,165,164
Interest on finance lease obligations
5,488,565
5,609,720
$ 9,332,547
$ 9,774,884
The weighted average capitalization rate on funds borrowed generally is 6.58% per annum (2012 – 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 $3,622,657 in fiscal 2013 (2012 – $3,620,339).
19. CAPITAL DISCLOSURES
SIGA’s objectives when managing capital are to ensure adequate capital to support the operations and growth strategies of
the Corporation.
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 four 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.