LITTLE CURRENT – The Manitoulin Centennial Manor is in a good financial position, in terms of its audited financial report for the year ended 2020, with a healthy surplus and net assets.
“This is a good news audit for us,” stated Pat MacDonald, chair of the Manor board after the board members had been presented with the draft audited financial report for 2020 by Corey Houle, of Freelandt Caldwell Reilly, at its meeting last week.
“The main purpose of my audit is to provide my opinion on the financial statement for 2020 for the Manor so third-party users like the Ministry of Health can rely on the statements themselves,” said Mr. Houle. He pointed out, “obviously COVID-19 was pervasive and affects every line of the statements.” Mr. Houle outlined that in terms of operations, the Manor received an increase in provincial subsidy of $601,000 over 2019. “The reason for this is the province reimbursed $547,000 in funds needed and used by the Manor for COVID-19.” These one-time non-recurring grants were provided for things such as personal protective equipment, supplies, extra cleaning and staff required.
However, “these funds don’t contribute to the bottom line, because this amount is on the expense side.”
Mr. Houle explained resident fees decreased slightly, due to a slight drop in occupancy rates, with the Manor not being able to take in as many new residents due to the pandemic. Municipal requisitions collected were the same during the 2020 year and remain steady, he pointed out.
The Manor usually gets an HST rebate on a yearly basis, however in 2020 this increased to $121,000 (including 2020 and several years prior to that), the board was told.
Overall, the Manor had a surplus of $191,000 in 2020, and total revenues of $5,484,000, said Mr. Houle.
And with $327,786 of accumulated surplus net assets going into 2020, the overall net assets of the Manor was $518,865 at the end of 2020. “This is a nice healthy financial position for the Manor to be in,” said Mr. Houle, adding, “if there is one single number that is the most important in the statements it is that one. It represents the cash that is on hand, after all liabilities are paid for, that you still have that could be used for operations.”
Ms. MacDonald told the Recorder after the meeting the Manor “is probably in the best financial position I’ve seen since I’ve been on the board and that is about 11 years.” She noted, however, that while the Manor had a total of over $518,000 in net assets at the end of 2020, “there are always expenses that come up, such as new furniture we have to buy for the residents’ lounges due to concerns raised by public health that the current chairs could not be wiped down properly because they are fabric. Steam cleaning was suggested, but this would prove to be difficult because of the time it would require and the residents use the lounge daily.”
The Manor board gave its approval to the audited statements presented for 2020.
At the meeting a report was also provided on the financial statements for the Manor provided by Extendicare that show that as of April 30, 2021 the Manor was in a favourable position to its 2021 budget of $211,634.