Corporate

Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2020 (9) 13 Commitments The Corporation has operating leases for various office premises and equipment with minimum annual payments as follows: $ 2021 104,000 2022 110,000 2023 113,000 2024 113,000 2025 113,000 Thereafter 75,000 628,000 14 Related party transactions The Corporation subleases its premises from CHSI and pays its proportionate share of the operating costs based on rented space. Any surplus/deficiency realized by CHSI will be shared by the members based on their proportionate share of equity (note 4). During the year, CHSI charged rental and operating costs of $2,159,187 (2019 – $2,688,365). Minimum annual rental lease payments are $1,302,000 for fiscal 2021. During the year, the Corporation charged CHSI human resources service fees of $12,000 (2019 – $13,500). These transactions are in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties, and approximates the arm's length equivalent value. 15 Funding and net assets Surplus funds retained by the Corporation must be used to support MLTSD's commitment to enhance health and safety in Ontario workplaces. No surplus funds can be used without written approval from MLTSD. MLTSD will notify the Corporation in writing in a timely manner regarding decisions related to proposed retention of surpluses. The use of surplus funds approved to be retained by the Corporation will be tracked by the Corporation and reported to MLTSD. Any amount not approved to be retained will be recovered by MLTSD. In the current year, MLTSD approved funding in the amount of $25,224,108 (2019 – $30,521,598). Included in current year's funding is $nil (2019 – $302,000) for capital expenditures. The Ministry subsequently reduced funding by $nil (2019 – $1,422,295) and it approved a deficit up to $5,297,488 (2019 – $1,422,295) at the time of the financial statement approval. 16 Economic dependence The Corporation is dependent on MLTSD for funding a significant portion of the cost of operations.  Workplace Safety & Prevention Services  | 32

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