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2018 Annual Report / Financial Performance /

Statement of Financial Position

December 31, 2018, with comparative information for 2017
Assets 2018 ($) 2017 ($)

Current assets:

     - Cash 5,689,793 7,400,143
     - Accounts receivable 

(note 3)

Note 3. Accounts receivable

  2018 ($) 2017 ($)
Trade and other receivables 3,383,734 3,834,544
Leasehold inducement receivable: (437,399) (660,480)
  2,946,335 3,174,064
2,946,335 3,174,064
     - Leasehold inducement receivable 

(note 4)

Note 4: Leasehold inducement receivable:

Under the terms of the lease agreement for BCSA’s new corporate head office, in 2018, BCSA was fully reimbursed for costs incurred on leasehold improvements totaling $3,386,985, of which $2,880,790 was recorded as a receivable as at December 31, 2017.

- 2,880,790
     - Prepaid expenses 1,244,295 1,280,232
     - Investments 

(note 5)

Note 5: Investments:

BCSA manages its investment portfolio through a third party investment manager, who invests according to BCSA’s investment policy. Investments are held in short-term bond and Canadian dividend funds.

  2018 ($) 2017 ($)
  Cost Fair value Cost Fair value
Short-term bond fund 24,111,026 24,139,535 - -
Canadian dividend fund 5,649,080 5,735,688 4,350,982 4,941,623
Money market fund - - 24,623,554 24,623,554
  29,760,106 29,875,223 28,974,536 29,565,177
         
      2018 2017
Current portion     5,432,000 6,500,000
Long-term portion     24,443,223 23,065,177
      29,875,223 29,565,177
5,432,000 6,500,000
  15,312,423 21,235,229
Investments 

(note 5)

Note 5: Investments:

BCSA manages its investment portfolio through a third party investment manager, who invests according to BCSA’s investment policy. Investments are held in short-term bond and Canadian dividend funds.

  2018 ($) 2017 ($)
  Cost Fair value Cost Fair value
Short-term bond fund 24,111,026 24,139,535 - -
Canadian dividend fund 5,649,080 5,735,688 4,350,982 4,941,623
Money market fund - - 24,623,554 24,623,554
  29,760,106 29,875,223 28,974,536 29,565,177
         
      2018 2017
Current portion     5,432,000 6,500,000
Long-term portion     24,443,223 23,065,177
      29,875,223 29,565,177
24,443,223 23,065,177
Intangible assets 

(note 6)

Note 6: Intangible assets:

BCSA manages its investment portfolio through a third party investment manager, who invests according to BCSA’s investment policy. Investments are held in short-term bond and Canadian dividend funds.

      2018 2017
  Cost ($) Accumulated amortization ($) Net book value ($) Net book value ($)
Software systems 18,228,483 14,522,360 3,706,123 4,960,081
Safety program software development costs 173,020 173,020 - 17,160
Software systems under development 557,757 - 557,757 506,050
  18,959,260 14,695,380 4,263,880 5,483,291
4,263,880 5,483,291
Property and equipment 

(note 7)

Note 7: Property and equipment:

      2018 ($) 2017 ($)
  Cost Accumulated amortization Net book value Net book value
Computer hardware 5,253,751 3,637,171 1,616,580 1,294,769
Software systems integral to hardware operations 1,229,349 952,181 277,168 ‑
Vehicles 5,241,717 3,680,167 1,561,550 1,390,694
Furniture and equipment 4,749,625 2,540,361 2,209,264 1,075,196
Leasehold improvements 9,201,867 3,627,521 5,574,346 3,540,113
Leased property and equipment 334,740 100,697 234,043 282,450
  26,011,049 14,538,098 11,472,951 7,583,222

Included in property and equipment is work in progress totalling $845,652 (2017 - $3,686,331) which has not been amortized.

In 2018, property and equipment were written down by $15,824 (2017 – nil). The writedown is included as an expense in the statement of operations.

11,472,951 7,583,222
  55,492,477 57,366,919
     
Liabilities and Net Assets 2018 ($) 2017 ($)
Current liabilities:
     - Accounts payable and accrued liabilities 

(note 8)

8. Accounts payable and accrued liabilities:

  2018 ($) 2017 ($)
Trade payables and accruals 1,830,794 3,492,700
Government taxes and remittances 424,135 359,548
Wages and related costs payable 4,804,883 3,959,920
  7,059,812 7,812,168
7,059,812 7,812,168
     - Deferred revenue 16,234,035 15,948,765
     - Current portion of capital lease obligation 

(note 9)

9. Capital lease obligation:

BCSA has capital leases for vehicles with future minimum annual payments as follows:

2019 $73,959
2020 73,959
2021 73,959
2022 43,141
Total minimum lease payments 265,018
Less amount representing interest at 3.99% 18,455
Present value of minimum capital lease payments 246,563
Current portion 65,306
Long-term portion $181,257
65,306 62,756
     - Current portion of deferred leasehold inducements 

(note 10)

10. Deferred leasehold inducements:

In 2018, deferred leasehold inducements relate to leasehold improvements in the currently occupied Vancouver office, with estimated remaining lease term of 118 months.

  2018 ($) 2017 ($)
Deferred leasehold inducements, beginning of year 3,013,189 238,322
Leasehold inducements - Vancouver office 1,374,765 2,880,790
Less amortization recorded net of building occupancy expense (372,422) (105,923)
     
Deferred leasehold inducements, end of year 4,015,532 3,013,189
Current portion 320,030 328,492
     
Long-term portion 3,695,502 2,684,697
320,030 328,492
  23,679,183 24,152,181
Capital lease obligation  181,257 246,564
Deferred leasehold inducements 

(note 10)

10. Deferred leasehold inducements:

In 2018, deferred leasehold inducements relate to leasehold improvements in the currently occupied Vancouver office, with estimated remaining lease term of 118 months.

  2018 ($) 2017 ($)
Deferred leasehold inducements, beginning of year 3,013,189 238,322
Leasehold inducements - Vancouver office 1,374,765 2,880,790
Less amortization recorded net of building occupancy expense (372,422) (105,923)
     
Deferred leasehold inducements, end of year 4,015,532 3,013,189
Current portion 320,030 328,492
     
Long-term portion 3,695,502 2,684,697
3,695,502 2,684,697
Accrued employee future benefits 

(note 11(b))

11. Accrued employee future benefits

  1. Public Service Pension Plan:

    BCSA and its permanent employees contribute to the Public Service Pension Plan, a jointly trusteed pension plan. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including asset investment and plan administration. The pension plan is a multi-employer contributory defined benefit pension plan with 62,000 active members and 48,000 retired members as at March 31, 2018.

    Every three years, an actuarial valuation is performed to assess the financial position of the plan and the adequacy of the plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary’s calculated contribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate is then adjusted to the extent there is amortization of any funding deficit.

    The latest valuation as at March 31, 2017 indicated a $1.9 billion surplus for basic pension benefits on a going concern basis. The next valuation will be as at March 31, 2020.

    Employer contributions to the Public Service Pension Plan during the year were $3,240,380 (2017 ‑ $3,063,120).

  2. Defined Supplemental Retirement Benefit Plan:

    Under the collective agreement and terms of employment, BCSA accrues a provision for a Defined Supplemental Retirement Benefit Plan as employees render the services required to earn that benefit. Employees eligible to receive a benefit from the Public Service Pension Plan upon retirement and who have completed 20 years of service with BCSA are entitled to an additional benefit from the Defined Supplemental Retirement Benefit Plan. The additional benefit is calculated as one to three month's salary, based on the number of years of service between the employee’s 20th and 30th year with BCSA (maximum).

    BCSA accrues the cost of these employee future benefits over the periods in which the employees earn the benefit. The cost of employee future benefits is actuarially determined using the projected benefit method pro-rated on service and includes, but is not limited to, management estimate of future salary increases, the retirement age and date of employees and the discount rate. The discount rate used is based on market rates as at the measurement date. Actuarial gains (losses) arise from changes in actuarial assumptions used to determine the accrued benefit obligation. Past service costs from plan amendments and net actuarial gains or losses are recognized in the statement of changes in net assets in the period they occur.

    The latest full actuarial valuation was at December 31, 2016. A full actuarial valuation is performed every three years. Extrapolations of the last valuation are performed by the actuary in years where a full valuation is not performed.

    The following is the reconciliation of the accrued employee future benefits liability:

      2018 ($) 2017 ($)
    Accrued employee future benefits, beginning of year 670,238 719,321
    Current service cost 63,648 59,049
    Interest cost 22,118 25,896
    Benefits paid (291,629) (77,110)
    Actuarial loss (gain) 164,947 (56,918)
    Accrued employee future benefits, end of year 629,322 670,238
    The expense for the plan is comprised of the following:    
      2018 ($) 2017 ($)
    Current service cost 63,648 59,049
    Interest cost 22,118 25,896
    Retirement benefit plan expense 85,766 84,945
  3. Defined Supplemental Retirement Benefit Plan (continued):

    The significant actuarial assumptions adopted in measuring the accrued benefit obligation are as follows:

      2018 ($) 2017 ($)
    Accrued employee future benefits, beginning of year 670,238 719,321
    Discount rate 3.80% 3.30%
    Rate of compensation increase 3.10% 3.10%

    The accrued benefit obligation is not funded as funding is provided when benefits are paid. Accordingly, there are no plan assets.

629,322 670,238
Asset retirement obligation 

(note 12)

Note 12. Asset retirement obligation:

In accordance with the lease agreement, BCSA is required to restore the leased space for its Vancouver office to its original condition at the end of the lease term. BCSA has recorded an asset retirement obligation amount of $83,238 as at December 31, 2018 (2017 – nil).

83,238 -
  28,268,502 27,753,680
Net assets:    
     - Investment in property, equipment and intangible assets 15,490,268 12,757,194
     - Internally restricted:    
            Education reserve 429,122 232,860
            Capital reserve 5,432,000 6,500,000
     - Unrestricted operating reserve 5,872,585 10,123,185
  27,223,975 29,613,239
Commitments 

(note 16)

Note 16. Commitments:

  1. Operating leases:

    BCSA leases office space with future minimum annual payments as follows:

    2019 $2,079,384
    2020 2,028,447
    2021 1,808,827
    2022 1,729,000
    Thereafter 9,485,845
      $17,131,503
  2. Line of credit:

    BCSA has an undrawn credit facility with a maximum borrowing capacity of $2,000,000. This can be drawn at the greater of the prime lending rate and the 30 day Bankers’ Acceptance CDOR rate plus 0.625%.

   
Contingencies 

(note 17)

Note 17. Contingencies:

In the ordinary course of operations, BCSA may be contingently liable for litigation and claims with customers, suppliers and employees. Specific claims have been brought against BCSA, the outcome of which is indeterminable at this time. Liabilities on any litigation are recognized in the financial statements when the outcome becomes reasonably determinable. In management’s judgment, no material exposure exists on the eventual settlement of any existing litigation.

   
  55,492,477 57,366,919

Download the full 2018 Annual Report

For full Independent Auditors' Report, financial statements and accompanying notes.

Download

Annual Report Home

Financial Performance
Statement of Operations
Statement of Changes in Net Assets
Statements of Cash Flows

 

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