SIGA_Annual_Report_2015 - page 59

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1. GENERAL INFORMATION
Saskatchewan Indian Gaming Authority Inc. (“SIGA”) is incorporated under the
Non-profit Corporations Act, 1995
of Saskatchewan as a Charitable Corporation. Class A Memberships in SIGA are owned by the Federation of
Saskatchewan Indian Nations (“FSIN”) and each of ten Tribal Councils in Saskatchewan that are recognized by .
the Saskatchewan Indian Gaming Commission of the FSIN, as well as one independent member. The Government
of Saskatchewan and the FSIN completed a Framework Agreement in 2002 that authorizes SIGA to operate
casinos. SIGA operates six casinos in accordance with the 2002 Casino Operating Agreement (“Agreement”) with
Saskatchewan Liquor and Gaming Authority (“SLGA”). SLGA is responsible for the overall conduct and management
of the slot machines in those casinos as required under
The Criminal Code of Canada
. Under the Agreement, SIGA is
entitled to withhold the casinos’ operating expenses, incurred in accordance with the operating policies and directives
approved by SLGA, from slot machine revenues. SIGA is required to deposit the remainder into a trust account for
SLGA in accordance with the procedures and formulas specified in the Agreement as outlined below. Under the
Agreement, SIGA is entitled to recover, in any year, any net loss from the operation of licensed table games and
ancillary operations from the net income earned from the operation of slot machines. The Agreement provides for
SIGA to use any net income from the operation of licensed table games for charitable or religious objects or purposes.
The Agreement expires on June 10, 2027.
The Agreement also provides for SIGA to remit to SLGA the net income from the operation of the slot machines in the
SIGA casinos. More specifically, net income from the operation of slot machines is remitted to SLGA in accordance
with a formula as defined in the Agreement. This formula provides for SIGA to remit to SLGA, on a weekly basis, .
one-half of the amount by which actual slot machine gaming revenue exceeds one-fifty-second of SIGA’s annual
budget. Shortfalls in weekly slot machine gaming revenue as compared to budget are recoverable against future
remittances. The remaining one-half of the amount determined above is remitted to SLGA within one-hundred and
eighty days of the applicable week. Pursuant to the Agreement, if, at the end of any operating year, SIGA has not
been fully reimbursed for amounts to which it is entitled for the operation of casinos, such amounts may be recovered
from future operations. SIGA is allowed to retain $5,000,000 as a capital reserve for the sole purpose of acquiring
capital assets.
Also, under the Agreement, SIGA has granted a first charge security interest on all its present and after acquired
assets to SLGA to secure contractual obligations of SIGA under the Agreement. However, the Agreement requires
that upon joint written request by SIGA and its lenders, SLGA shall postpone such security in favour of the lenders
who require a prior charge relating to funds lent to SIGA for the financing of its operations carried out in accordance
with the Agreement.
On June 11, 2002, the Government of Saskatchewan and the FSIN signed a gaming Framework Agreement
which expires on June 10, 2027. The Government must distribute, in accordance with the provisions of the
Framework Agreement, the income remitted to SLGA. Under the provisions of the 2002 Framework Agreement,
the Government of Saskatchewan, as represented by the Minister responsible for SLGA, is entitled to recover
its proportion of expenses that SLGA determines are not in accordance with the approved operating policies and
directives from the future amounts payable to the First Nations Trust Fund.
Effective for the year ended March 31, 2008 and subsequent years, the Casino Operating Agreement between
SLGA and SIGA was amended to exclude unrealized gains and losses on interest rate swaps from the calculation .
of net Casino profits payable to SLGA.
SIGA was incorporated under the
Non-profit Corporations Act, 1995
and is not subject to income tax under the
provision of paragraph 149(1)(l) of the Income Tax Act (Canada). SIGA pays Goods and Services Tax and Provincial
Sales Tax to government agencies and claims input tax credits on its ancillary operations.
SIGA is a corporation domiciled in Canada. SIGA’s head office is located at 103 Packham Avenue in Saskatoon,
Saskatchewan, Canada, S7N 4K4.
NOTES TO THE
FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2015
1...,49,50,51,52,53,54,55,56,57,58 60,61,62,63,64,65,66,67,68,69,...92
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