LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë...

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Transcript of LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë...

Page 1: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n
Page 2: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Page 3: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

q~ÄäÉ=çÑ=`çåíÉåíëjÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NjÉëë~ÖÉ=cêçã=íÜÉ=`Ü~áê K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OjÉëë~ÖÉ=cêçã=íÜÉ=`bl= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =Pj~å~ÖÉãÉåíÛë=oÉéçêí K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =Q`çêéçê~íÉ=dçîÉêå~åÅÉ K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =R

`çããáëëáçå=jÉãÄÉêë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =Rj~åÇ~íÉ=çÑ=`çããáëëáçå=_ç~êÇ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =S^ééçáåíãÉåí=çÑ=`çããáëëáçå=jÉãÄÉêë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =SoÉëéçåëáÄáäáíáÉë=çÑ=`çããáëëáçå=jÉãÄÉêë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =S^ìÇáí=`çããáííÉÉ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =S^ÅÅçìåí~Äáäáíó=íç=dçîÉêåãÉåí=~åÇ=mìÄäáÅ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =Tj~å~ÖÉãÉåí=qÉ~ã K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =TlêÖ~åáò~íáçå~ä=`Ü~êí K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =U

léÉê~íáçå~ä=oÉîáÉïbñÉÅìíáîÉ=pìãã~êó K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =Vpçãã~áêÉ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NMj~êâÉíáåÖ=~åÇ=jÉêÅÜ~åÇáëáåÖ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NNeìã~å=oÉëçìêÅÉë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NPcáå~åÅá~ä K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NRpçÅá~ä=oÉëéçåëáÄáäáíó=~åÇ=mìÄäáÅ=p~ÑÉíó K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NS^ÅâåçïäÉÇÖãÉåíë K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =NVpí~íáëíáÅë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K OM

oÉí~áä=p~äÉë=Äó=píçêÉë K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =ONpìãã~êó=çÑ=mêçÑáí=~åÇ=bñéÉåëÉ=o~íáçë K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OOfåÅçãÉ=^ääçÅ~íáçå=Ó=vÉ~ê=båÇÉÇ=j~êÅÜ=OMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OPp~äÉë=`çãé~êáëçå=OMMRJOMMN K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OQp~äÉë=Ó=vÉ~ê=båÇÉÇ=j~êÅÜ=PNI=OMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =ORsçäìãÉ=p~äÉë=Ó=cáîÉ=vÉ~êë=båÇÉÇ=j~êÅÜ=OMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OSiáÅÉåëáåÖ= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OT

iáÅÉåÅÉë=áå=bÑÑÉÅí=~í=j~êÅÜ=PNI=OMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OTiáÅÉåÅÉë=áå=bÑÑÉÅí=Ó=cáîÉJóÉ~ê=`çãé~êáëçå K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OUmêÉãáëÉ=iáÅÉåëÉë=fëëìÉÇ=OMMQLOMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =OViáÅÉåÅÉë=kçí=oÉåÉïÉÇLpìêêÉåÇÉêÉÇ=OMMQLOMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =PMmÉêãáíë=fëëìÉÇ=Ó=OMMQLOMMR K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =PN

oÉí~áä=lìíäÉíë= K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K K =PO

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Special Permits Issued

2005 2004 2003 2002 2001

Class I 81 52 37 52 55

Class II 209 218 273 238 238

Total 290 270 310 290 293

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Page 21: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Page 22: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Page 23: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Page 24: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Page 28: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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Spirits and SpiritCoolers

Wine and WineCoolers

Beer

Page 29: LCC Annual Report - Prince Edward Island · q~ÄäÉ=çÑ=`çåíÉåíë jÉëë~ÖÉ=cêçã=íÜÉ=jáåáëíÉê kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk=n

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PRINCE EDWARD ISLAND

LIQUOR CONTROL COMMISSION

FINANCIAL STATEMENTS

MARCH 31, 2005

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STATEMENT 2

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

STATEMENT OF INCOME

FOR THE YEAR ENDED MARCH 31, 2005

2005 2004

SALES $70,967,804 $69,338,560

Less: Provincial Health Tax $12,255,953 $12,004,386Provincial Sales Tax 5,344,399 5,203,060Federal Goods & Services Tax 4,406,805 22,007,157 4,285,882 21,493,328

NET SALES 48,960,647 47,845,232

COST OF GOODS SOLD 28,617,562 27,686,895

GROSS PROFIT 20,343,085 20,158,337

EXPENSES Amortization 916,058 851,781 Insurance and taxes 187,319 191,870 Interest on long-term debt 329,858 337,860 Leases - Note 3 882,997 894,739 Other operating expenses 742,038 728,122 Repairs and maintenance 509,762 494,982 Salaries and benefits - Note 5 6,454,130 6,296,971 Store and office expenses 277,842 314,611 Travel 111,957 101,396 Utilities 624,144 11,036,105 596,905 10,809,237

9,306,980 9,349,100

OTHER INCOME 1,621,313 1,294,107

NET INCOME - Note 1(c) $10,928,293 $10,643,207

(The accompanying notes are an integral part of these financial statements.)

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STATEMENT 3

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED MARCH 31, 2005

2005 2004 Cash provided by (used for):

OPERATING ACTIVITIESNet income for the year $10,928,293 $10,643,207 Amounts charged against income not requiring an outlay of cash: Amortization 916,058 851,781 Loss (Gain) on disposal of capital assets - (30,170)

11,844,351 11,464,818 Changes in non-cash working capital: (Increase) Decrease in accounts receivable (102,361) 1,398 (Increase) Decrease in inventories 26,415 82,458 (Increase) Decrease in prepaid expenses 13,603 46,399 Increase (Decrease) in accounts payable 817,166 21,226 Net cash provided by operating activities 12,599,174 11,616,299

FINANCING ACTIVITIESCash payments to Provincial Treasury (11,450,993) (10,967,542)Loans from Province 300,000 1,205,000 Debenture repayment (772,411) (632,465)Net cash used for financing activities (11,923,404) (10,395,007)

INVESTING ACTIVITIESAcquisition of capital assets (208,670) (1,233,949)Proceeds on disposition of capital assets - 30,170

(208,670) (1,203,779)

Increase in cash 467,100 17,513 Cash at beginning of year 854,889 837,376 Cash at end of year $ 1,321,989 $ 854,889

(The accompanying notes are an integral part of these financial statements.)

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PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2005

1. Summary of significant accounting policies

(a) Capital AssetsCapital assets are stated at cost less accumulated amortization. Amortizationof buildings, furniture and equipment and leasehold improvements arecalculated on a straight-line basis at the rates indicated in Note 2.

(b) InventoriesInventories are valued at the lower of first-in, first-out cost and net realizablevalue.

(c) Net IncomeAll net income of the Commission accrues directly to the Province. Transfersof net income are made to the Operating Fund on a continuing basis as excesscash becomes available.

2. Capital Assets

2005 2004Amortization Accumulated Net Book Net Book Rate Cost Amortization Value Value

Land $ 85,537 $ - $ 85,537 $ 85,537Buildings 5% 4,316,134 2,836,787 1,479,347 1,447,890Equipment 10 & 20% 1,237,669 1,146,997 90,672 139,092Vehicles 30% 100,850 45,382 55,468 85,722Leasehold Improvements 10% 3,952,905 2,108,828 1,844,077 2,195,972Financial Information System 20% 1,953,994 1,214,353 739,641 1,047,917

$11,647,089 $7,352,347 $4,294,742 $5,002,130

3. Leases

The Prince Edward Island Liquor Control Commission leases various pieces ofcomputer hardware and software as well as 13 retail outlets which have maturitydates between fiscal 2006 and 2018. Future minimum lease payments are as follows:

Fiscal Years Amount2006 $ 712,4182007 526,7082008 440,5222009 375,5272010 352,0242011-2018 1,634,344

$4,041,543

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PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2005

4. Debentures Payable - Province of Prince Edward Island

Balance Less Current Long TermMarch 31, 2005 Portion Liability

CornwallRepayable in equal annual installmentsof $35,184 including interest @ 6.75%per annum, maturing December 10, 2006. $ 63,835 $ 30,875 $ 32,960

StratfordRepayable in equal annual installmentsof $40,415 including interest @ 7.375%per annum, maturing February 10, 2007. 72,692 35,054 37,638

Borden-Carleton Repayable in equal annual installmentsof $37,442 including interest @ 5.74%per annum, maturing January 21, 2008. 100,565 31,669 68,896

KensingtonRepayable in equal annual installmentsof $49,143 including interest @ 6.70%per annum, maturing November 8, 2009. 203,126 35,534 167,592

North RusticoRepayable in equal annual installmentsof $38,936 including interest @ 6.79%per annum, maturing March 24, 2010. 160,547 28,035 132,512

Charlottetown (Oak Tree)Repayable in equal annual installmentsof $197,398 including interest @ 6.79%per annum, maturing March 24, 2010. 813,942 142,131 671,811

CardiganRepayable in equal annual installmentsof $55,381 including interest @ 6.40%per annum, maturing February 16, 2011. 268,941 38,170 230,771

Summerside (Waterfront)Repayable in equal annual installmentsof $88,042 including interest @ 6.77%per annum, maturing July 18, 2011. 478,314 55,660 422,654

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PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2005

™ Debentures Payable - Province of Prince Edward Island (continued)

Balance Less Current Long TermMarch 31, 2005 Portion Liability

Financial Information SystemRepayable in equal annual installmentsof $195,599 including interest @ 6.57%per annum, maturing March 28, 2012. 1,070,126 125,291 944,835

Wood IslandsRepayable in equal annual installmentsof $33,052 including interest @ 5.85%per annum, maturing November 27, 2012. 206,467 20,973 185,494

Charlottetown (Queen Street)Repayable in equal annual installmentsof $60,016 including interest @ 5.61%per annum, maturing August 1, 2013. 415,229 36,722 378,507

TignishRepayable in equal annual installmentsof $99,684 including interest @ 5.40%per annum, maturing January 9, 2014. 696,086 62,096 633,990

Charlottetown (Head Office)Repayable in equal annual installmentsof $38,889 including interest @ 5.02%per annum, maturing March 7, 2015. 300,000 23,829 276,171

$4,849,870 $666,039 $4,183,831

The total principal repayment for the next five years is as follows:

2006 $ 666,0392007 708,7402008 678,6032009 684,2082010 727,857Total $3,465,447

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PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

MARCH 31, 2005

5. Pension and Other Employee Benefits

Employees of the Prince Edward Island Liquor Control Commission are members ofthe Prince Edward Island Civil Service Superannuation Plan. Other employee benefitsand the employer's share of the plan benefits plus any additional future actuarialliabilities are assumed by the Province of P.E.I. and are not reflected in theCommission's financial statements.

6. Fair Value of Financial Instruments

The fair value of the Commission’s cash, accounts receivable, accounts payable andaccruals, debentures payable and due to the Province approximates their carryingamounts.

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