Corporate

20  | Workplace Safety & Prevention Services Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2023 4 4 Investment in CHSI Centre for Health & Safety Innovation ("CHSI") is a not-for-profit organization, incorporated under the laws of the Province of Ontario on September 8, 2004, whose purpose is to create a focal point for innovation and applied learning in the prevention of workplace injuries and illnesses and to act as a key resource for employers, employees and others seeking expertise and direction on how to make workplaces safer. CHSI is exempt from income taxes under Section 149(1)(I) of the Income Tax Act (Canada). Up to February 28, 2021, the Corporation was a party to a joint venture with one other organization in CHSI. The Corporation had chosen to use the equity basis to account for its proportionate share of the annual operating results of CHSI up to February 28, 2021. On March 1, 2021, the Corporation became the sole party to the agreement and was determined to control CHSI. As a result, the Corporation controls CHSI as its sole member and it has derecognized its equity investment and recorded a write-down of the investment of $24,765 in the statement of changes in net assets in fiscal 2021. On a go-forward basis, the Corporation has chosen not to consolidate CHSI in these financial statements, and disclose key financial information as follows: The most recent audited financial statements of CHSI are for the period ending December 31, 2022, and were audited by another firm of accountants, with a report date of April 3, 2023. The information below reflects the financial results in the audited financial statements as well as the financial information provided by CHSI management for the period from January 1, 2023 to March 31, 2023, less the period from January 1, 2022 to March 31, 2022. There were no significant transactions of CHSI during January 1, 2023 to March 31, 2023. During the year, the Corporation provided notice on April 28, 2023 to CHSI regarding its intent to withdraw from the CHSI membership agreement. The resignation will take effect on May 28, 2024. 2023 $ 2022 $ Assets 564,175 1,537,465 Liabilities 2,857,442 2,465,748 Net assets (2,293,267) (928,283) Operating results (period from April 1 to March 31) Revenue 3,931,780 1,911,297 Expenditures (operating) 4,549,620 3,372,272 Deficiency of revenue over expenditures (617,840) (1,460,975) Decrease in net assets (617,840) (1,460,975) Cash flows Operating (334,243) (941,137) Investing 223,964 (266,137) Financing (24,827) - Decrease in cash during the period (135,106) (1,207,274)

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