Corporate

Workplace Safety & Prevention Services 2012 Annual Report 35 December 31, 2012 Workplace Safety & Prevention Services Notes to Financial Statements 23. Related Party Transactions The Association subleases its premises from Centre for Health & Safety Innovation (CHSI) and pays their proportionate rental area share of the operating costs. Any surplus (deficiency) in CHSI will be shared by the members based on their proportionate rentable areas (see also Note 6). During the year, CHSI charged rental and operating costs of $2,777,763 (2011 – $2,782,549). 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. 2012 2011 Trade accounts receivable $ 2,900 $ 2,100 Trade accounts payable $ 9,1 6 7 $ – During the year, the Association charged CHSI bookkeeping and information technology service fees of $34,800 (2011 – $34,800). This amount is measured at the exchange amount (the amount of consideration agreed to by the related parties). 24. Funding and Net Assets The WSIB's "Designated Entity Surplus Recovery Policy" dated July 28, 2010 was adopted by the Association and remains in effect as directed by the Ministry of Labour. The policy states that the Association's operations are not to result in a deficit position at the end of any fiscal year. The amount of accumulated surplus that can be retained by the Association shall not exceed 6% of the current year's total revenue. Any amount in excess of this 6% cap will be offset through reductions of funding transfers in the following year with the exception of the directive from WSIB as disclosed in Note 18. Surplus funds are to be used to support the Association's commitment to enhance health and safety in Ontario workplaces and align with the Association's mission, vision and function. The Association will disclose the expected use of the surplus funds to the WSIB / MOL in advance of committing their use and will report on the use of those funds once approval to utilize the funds has been granted by the WSIB / MOL. 25. Economic Dependence The Association is dependent on the MOL (2011 – WSIB) for funding the cost of operations.

• Cover