**Public Accounts        2008-09**

----

**Volume 1**

----

Main Financial Statements

----

**Saskatchewan**

----

----

----

----

**2008-09 Public Accounts        Volume 1 — Main Financial Statements**

----

| Contents                                    |
|---------------------------------------------|
| 3                                 |   | Letters of Transmittal |
| 4                                 |   | Introduction to the Public Accounts |
| Financial Statement Discussion and Analysis |
| 9                                 |   | Introduction - Discussion and Analysis |
| 10                                     |   | General Revenue Fund Financial Statements - Discussion and Analysis |
| 25                                     |   | Stabilization Fund - Discussion and Analysis |
| 26                                     |   | Summary Financial Statements - Discussion and Analysis |
| 42                                     |   | Risks and Uncertainties |
| General Revenue Fund Financial Statements   |
| 45                                     |   | Statement of Responsibility |
| 47                                     |   | Auditor’s Report |
| 49                                     |   | Financial Statements |
| 53                                     |   | Notes to the Financial Statements |
| 62                                     |   | Schedules to the Financial Statements |
| Summary Financial Statements                |
| 79                                     |   | Statement of Responsibility |
| 81                                     |   | Auditor’s Report |
| 83                                     |   | Summary Financial Statements |
| 87                                     |   | Notes to the Summary Financial Statements |
| 98                                     |   | Schedules to the Summary Financial Statements |
| Supplementary Information                   |
| 123                                         |   | Growth and Financial Security Fund |
| 124                                         |   | General Revenue Fund - Public Issue Debentures |
| 128                                         |   | General Revenue Fund - Debentures Issued to the Minister of Finance of Canada |
| 129                                         |   | Glossary of Terms |

----

----

----

----

Letters of Transmittal

----

Regina, Saskatchewan        June 2009

*To His Honour        The Honourable Gordon Barnhart        Lieutenant Governor of the Province of Saskatchewan*

Your Honour:

I have the honour to submit the main financial statements of the Government of the Province of Saskatchewan for the fiscal year ended March 31, 2009.

Respectfully submitted,

/s/ Rod Gantefoer

**ROD GANTEFOER***Minister of Finance*

----

Regina, Saskatchewan        June 2009

*The Honourable Rod Gantefoer        Minister of Finance*

We have the honour of presenting the main financial statements of the Government of the Province of Saskatchewan for the fiscal year ended March 31, 2009.

Respectfully submitted,

|                              |                          |
|------------------------------|--------------------------|
| /s/ Doug Matthies            | /s/ Terry Paton          |
|                              |                          |
|                         |                     |
| **DOUG MATTHIES**            | **TERRY PATON**          |
| *Deputy Minister of Finance* | *Provincial Comptroller* |

----

Government of Saskatchewan - 2008-09 Public Accounts   **3**

----

----

Introduction to the Public Accounts 

----

**Introduction**

The 2008-09 Public Accounts of the Government of Saskatchewan are prepared in accordance with the *Financial Administration Act, 1993* and consist of two volumes. 

**Volume 1**

***Financial Statement Discussion and Analysis***provides users of the Government’s main financial statements with an overview of the Government’s performance by presenting comparative financial highlights and variance analysis. 

***General Revenue Fund Financial Statements***account for the financial transactions of the General Revenue Fund (GRF). The GRF is comprised of all Ministries of the Government. This is the fund into which all revenues are paid, unless otherwise provided for by legislation, and from which all expenses are appropriated by the Legislative Assembly.        

***Summary Financial Statements***consolidate the financial transactions of the GRF, Crown corporations, agencies, boards and commissions. These consolidated statements provide an accounting of the full nature and extent of the financial affairs and resources controlled by the Government. 

***Supplementary Information***contains unaudited information on: 

| • | the Growth and Financial Security Fund (*The Growth and Financial Security Fund was established on May 14, 2008 to assist in the achievement of the Government’s long-term objectives by providing for financial security of the Government from year to year and by providing a source of funds for government programs identified as promoting or enhancing the economic development of Saskatchewan*); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | GRF public issue debentures; |
|--------|------------------------------|

| • | GRF debentures issued to the Minister of Finance of Canada; and |
|--------|-----------------------------------------------------------------|

| • | a glossary of terms used throughout. |
|--------|--------------------------------------|

**Volume 2**

Volume 2 contains details on the revenue and expense of the GRF. It also provides details on capital asset acquisitions of the GRF; a listing of suppliers who received $50,000 or more for goods and services and capital assets supplied to the GRF and Revolving Funds during the fiscal year; financial information on the assets, liabilities and residual balances of pension plans and trust funds administered by the Government; a listing        of remissions of taxes and fees; and information on road-use fuel tax accountability.        The Public Accounts are available on the Internet at: http://www.finance.gov.sk.ca/public-accounts/

A Compendium is also available on the Internet at: http://www.finance.gov.sk.ca/public-accounts/ that contains the financial statements of various government agencies, boards, commissions, pension plans, special purpose funds and institutions, as well as Crown corporations which are accountable to Treasury Board. 

----

**4**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Introduction to the Public Accounts 

----

| 1 | Examples of CIC Crown corporations are: SaskEnergy Incorporated, Saskatchewan Power Corporation, Saskatchewan Telecommunications Holding Corporation, Saskatchewan Government Insurance and Saskatchewan Transportation Company. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Examples of Treasury Board Crown corporations are: Agricultural Credit Corporation of Saskatchewan, Liquor and Gaming Authority, and Saskatchewan Crop Insurance Corporation. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **5**

----

----

----

----

**Financial Statement Discussion and Analysis**

----

----

----

----

Financial Statement Discussion and Analysis 

----

**Financial Statement Discussion and Analysis**

The purpose of the Financial Statement Discussion and Analysis is to provide users of the Government’s main financial statements with an overview of the Government’s financial performance as well as the Government’s accountability for the resources entrusted to it. This information should be read in conjunction with the General Revenue Fund and Summary financial statements. The Government is responsible for the        integrity and objectivity of this discussion and analysis. 

**General Revenue Fund (GRF) Financial Statements**

**  How has the Government performed as compared to the Budget Estimates?*

The GRF is the fund where all public monies are deposited to and disbursed from, as authorized by the Legislative Assembly. Exceptions to this principle must be authorized by law. Each year, the Government presents a Budget for the GRF to the Legislative Assembly along with a detailed financial plan for the GRF called the Estimates. The GRF financial statements report on the performance of the Government against the Estimates. As a        result, budget-to-actual analysis on the Government’s revenue and expenses can be found in the GRF section of the Financial Statement Discussion and Analysis. 

**Summary Financial Statements (SFS)**

**   How has the Government performed as a whole?*

The SFS provide an accounting of the full nature and extent of the financial affairs and resources controlled by the Government. The SFS include the financial results of the GRF, Crown corporations, agencies, boards and commissions. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **9**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Financial Highlights**

|                                                                                                              |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
||
||
||
| Revenue                                                                                                           |   |   |   | 9,367  |   |   | 12,325 |   |   | 9,865 |   |
| Expense                                                                                                           |   |   |   | 9,117  |   |   | 10,355 |   |   | 8,583 |   |
| Pre-transfer surplus                                                                                              |   |   |   | 250    |   |   | 1,970 |   |   | 1,282 |   |
| Transfer to the Growth and Financial Security Fund                                                                |   |   |   | (125   | ) |   | (985 | ) |   | -- |   |
| Transfer from the Growth and Financial Security Fund                                                              |   |   |   | 125    |   |   | 1,404 |   |   | -- |   |
| Transfer to the Fiscal Stabilization Fund                                                                         |   |   |   | --     |   |   | -- |   |   | (641 | ) |
| Net transfer from (to) stabilization funds                                                                        |   |   |   | --     |   |   | 419 |   |   | (641 | ) |
| **Surplus**                                                                                                       |   |   |   | 250    |   |   | 2,389 |   |   | 641 |   |
| Financial assets                                                                                                  |   |   |   | --     |   |   | 3,199 |   |   | 3,349 |   |
|      Less:  Government general debt                                            |   |   |   | --     |   |   | 4,145 |   |   | 6,824 |   |
|                 Other Liabilities |   |   |   | --     |   |   | 2,902 |   |   | 2,574 |   |
| Net debt                                                                                                          |   |   |   | --     |   |   | (3,848 | ) |   | (6,049 | ) |
|      Plus:  Non-financial assets                                               |   |   |   | --     |   |   | 2,877 |   |   | 2,689 |   |
| **Accumulated Deficit**                                                                                           |   |   |   | --     |   |   | (971 | ) |   | (3,360 | ) |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| **Growth and Financial Security Fund Balance**                                                                    |   |   |   | 1,634  |   |   | 1,215 |   |   | 1,634 |   |

| 1 | The Budget Estimates do not include a statement of financial position. |
|---|------------------------------------------------------------------------|

| 2 | The Provincial Auditor’s report indicates that, in his opinion, there are certain adjustments required to the General Revenue Fund financial statements. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Surplus**

The 2008-09 General Revenue Fund (GRF) financial statements report a pre-transfer surplus of $1.97 billion. After a $419 million net transfer from the Growth and Financial Security Fund (GFSF), the GRF had a $2.39 billion surplus, $2.14 billion higher than the budgeted surplus of $250 million and a $1.75 billion improvement over the $641 million surplus reported in 2007-08. 

The $1.97 billion pre-transfer surplus was a $1.72 billion improvement over the budgeted pre-transfer surplus of $250 million. This improvement was attributable to higher than budgeted non-renewable resources revenue ($2,339 million) and other own-source revenue ($296 million), including taxation, primarily as the result of higher resource prices and strong economic activity. In addition, transfers from the federal government were        higher than budgeted ($323 million). These increases were partially offset by higher than budgeted expenses ($1,238 million). 

The remainder of the increase in the surplus over budget is the result of a $419 million increase in the net transfer from the GFSF to the GRF. 

**Debt Reduction**

Government general debt at March 31, 2009 is $4.15 billion, a reduction of $2.68 billion from March 31, 2008. This is the largest decrease in debt in Saskatchewan’s history. 

**Stabilization Fund**

The Government’s Growth and Financial Security Fund, established to safeguard Saskatchewan’s future, has a balance of $1.22 billion at March 31, 2009. This is after a $985 million transfer from the GRF, representing half of the GRF’s pre-transfer surplus for the year, and a $1,404 million transfer back to the GRF primarily to reduce the Government’s general debt. 

----

**10**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis

----

**General Revenue Fund Financial Statements**

**Financial Highlights *(continued)***

**Investment in Infrastructure**

The Government invested $1.51 billion in infrastructure during 2008-09. This is the largest capital investment in Saskatchewan’s history. The investment included spending of $428.2 million on schools, universities and child care centres, $379.7 million on health facilities, $369.5 million on highways and $224.8 million on municipal infrastructure. Investments like these help to ensure that Saskatchewan’s infrastructure        is in place to handle the demands of a strong economy and to contribute to the Province’s growth. 

**Income Tax Reduction**

During 2008-09, the Government introduced a significant personal income tax cut by increasing Saskatchewan’s personal tax credit amounts for the 2008 and subsequent taxation years. The basic and spousal tax credit amounts were increased by $4,000 and the child tax credit amount was increased by $2,000 per child. This initiative raised the income threshold at which provincial income tax becomes payable, resulting in an        estimated 80,000 lower income earners that no longer have to pay provincial income tax. In addition, effective July 2008, Saskatchewan’s refundable Low-Income Tax Credit was enhanced to increase benefit levels and expand eligibility. These initiatives reduced 2008-09 income tax revenue by an estimated $334 million. 

**Credit Rating Upgrade**

During 2008-09, the Province received a credit rating upgrade from Standard & Poor’s, moving from an AA to an AA+ rating. Standard & Poor’s noted that the upgrade reflects “strong financial results in fiscal 2008 and a low-and-steady declining debt burden”. This credit upgrade represents an independent validation that the Government is managing the Province’s finances in a responsible way on        behalf of Saskatchewan people. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **11**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Surplus**

The GRF’s annual results for the past ten years were as follows: 

----

----

| * | Since 2004-05, tangible capital assets have been capitalized and expensed over their useful life rather than being fully expensed in the year of acquisition. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Accumulated Deficit**

The accumulated deficit is the sum of all the annual results reported to date by the Government. An accumulated deficit indicates that a government has financed past annual operating deficits by borrowing. In 2008-09, the GRF accumulated deficit declined by $2.39 billion to $971 million. 

The GRF’s accumulated deficit for the past ten years was as follows: 

----

----

| * | Since 2004-05, tangible capital assets have been capitalized and expensed over their useful life rather than being fully expensed in the year of acquisition. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**12**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Revenue**

The GRF’s sources of revenue for 2008-09 were as follows: 

----

----

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **13**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Revenue *(continued)***

In the last five fiscal years, the GRF revenue was derived from the following sources: 

----

----

Total revenue for 2008-09 was $12.33 billion. This was $2.96 billion, or 31.6 per cent, higher than budgeted and $2.46 billion, or 24.9 per cent, higher than 2007-08. The increase in revenue from budget is primarily due to higher non-renewable resource revenue. All other own-source revenue categories, except transfers from Government entities, were also higher than budgeted as the result of strong economic activity. Likewise, the        increase from the previous year is primarily due to higher non-renewable resource revenue and other own-source revenue increases. Taxation revenue was nearly flat due to the tax reduction package that came into effect in July 2008. 

**Taxation revenue**        Taxation revenue was $4.43 billion, $118 million higher than budgeted. The increase was primarily due to higher revenue from Provincial Sales Tax and other consumption taxes, partially offset by lower income tax revenue. Compared to 2007-08, taxation revenue was $13 million higher as revenue increases related to strong economic activity in 2008-09 were almost completely offset by the impact of the tax reduction package. 

*Provincial Sales Tax (PST) revenue* was $191 million higher than budgeted primarily due to substantially higher economic activity than anticipated in the budget. Nominal GDP in 2008 is estimated to have grown by much more than expected, and the value of retail sales and personal expenditures were also substantially higher. Compared to 2007-08, PST revenue was $179 million higher due to significant year-over-year economic        growth. 

*Individual income tax revenue* was $88 million lower than budgeted and $94 million lower than 2007-08 largely as a result of the tax reduction package. The impact of the tax cuts was partially offset by continued taxable income growth in 2008 and 2009 as a result of strong economic growth and the resulting increase in taxable income. 

*Corporation income tax (CIT) revenue* was $25 million lower than budgeted primarily due to downward revisions in federal estimates of the national corporate taxable income base. This resulted in a lower provincial base upon which installment payments are based. The $82 million decrease in CIT revenue from 2007-08 is largely due to the impact of the general CIT rate reduction from 13 per cent to 12 per cent on July 1, 2008.        

----

**14**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Revenue *(continued)***

*Tobacco tax and fuel tax revenue* were both higher than budgeted, consistent with stronger-than-expected economic activity, and both revenue sources also showed increases over 2007-08. 

*Other taxes* were $9 million higher than budgeted but $22 million lower than 2007-08 due to lower general Corporation Capital Tax (CCT). The decline in general CCT revenue is the result of the elimination of the general CCT rate on July 1, 2008 for general and resource corporations. 

**Non-renewable resources revenue**        Non-renewable resources revenue was $4.61 billion, $2.34 billion higher than budgeted and $1.97 billion higher than 2007-08. The increase is due primarily to higher resource prices, particularly potash and oil, as well as record Crown land sales. 

*Oil revenue* was $1.62 billion in 2008-09, $561 million higher than budgeted and $370 million higher than 2007-08. The increase was primarily the result of higher prices received by Saskatchewan producers due to many factors, the largest of which were a lower exchange rate and higher West Texas Intermediate (WTI) oil prices. 

The Canadian dollar averaged 89.5 U.S. cents in 2008-09, 10.0 U.S. cents lower than the budget assumption of 99.5 U.S. cents. In 2007-08, the dollar averaged 97.1 U.S. cents. WTI oil prices averaged 85.94 U.S. dollars per barrel in 2008-09, higher than the budget assumption of 82.36 U.S. dollars. In 2007-08, WTI oil averaged 82.25 U.S. dollars. 

*Potash revenue* was $1.36 billion, $1.01 billion higher than budgeted and $932 million higher than 2007-08. The increase in revenue was largely due to a substantial increase in the 2008 average price. The average mine netback (price) more than doubled from the budget assumption of 203 U.S. dollars per KCl tonne to 425 U.S. dollars per KCl tonne ($332 to $735 per K2O tonne). In 2007, mine netbacks averaged        approximately 165 U.S. dollars per KCl tonne ($287 per K2O tonne). 

*Crown land sales revenue* was $928 million, $736 million higher than budgeted and $509 million higher than 2007-08. Very high oil and gas prices in 2008-09, particularly in the first half of the year, and continued industry interest in existing and emerging oil prospects in Saskatchewan led to highly competitive bidding for Crown petroleum and natural gas rights. As a result, the amount of Crown land sold increased by nearly        80 per cent in 2008-09 and the average price paid per hectare increased from $1,034 in 2007-08 to $1,289 in 2008-09. 

**Transfers from Government entities**        Transfers from Government entities were $851 million in 2008-09, a decrease of $117 million from the budget. A decision was made to forgo the budgeted $185 million regular dividend from the Crown Investments Corporation of Saskatchewan (CIC). This reduction was partially offset by higher dividend revenue, primarily from the Saskatchewan Liquor and Gaming Authority. 

Compared to 2007-08, total transfers increased $198 million largely as a result of a special $365 million CIC dividend in 2008-09 compared to the regular $200 million CIC dividend in 2007-08. 

**Transfers from the federal government**        Federal transfers were $1.71 billion in 2008-09, $323 million higher than budgeted and $106 million higher than 2007-08. The increase is largely the result of the receipt of one-time, lump-sum federal funding for targeted initiatives. As well, the Canada Health Transfer and the Canada Social Transfer funding were higher. 

Saskatchewan received no Equalization payment in 2008-09 compared to a $226 million payment in 2007-08. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **15**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Expense**

Expenses are reported by Ministry in the GRF Statement of Operations. Because the Government’s expense budget for the GRF is organized by Ministry, this best provides a comparison of actual to budget. Schedules to the GRF financial statements also disclose expense by theme and by object which provide information on the purpose for which goods and services have been consumed or acquired. These best allow for comparison from        year to year as programs maintain the same theme and object when the Government undergoes reorganization of Ministries. 

**Expense by Ministry**        The GRF’s expense by Ministry for 2008-09 was as follows: 

----

----

| 1 | Key components of “other” include Corrections, Public Safety and Policing (3%), Finance (3%), Crown Investments Corporation of Saskatchewan (2%) and Environment (2%). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Comparison to Budget*        Total expense was $1.24 billion higher than budget. Key increases occurred in the following Ministries: 

| • | Crown Investments Corporation of Saskatchewan – a $240 million increase for a transfer for federal carbon capture funding; |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| • | Health – a $231 million increase, primarily due to accelerated infrastructure spending and includes costs related to a nursing wage settlement; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Municipal Affairs – a $146 million increase, primarily due to accelerated infrastructure spending; |
|--------|----------------------------------------------------------------------------------------------------------|

| • | Advanced Education, Employment and Labour – a $132 million increase, primarily due to an increase in capital transfer for the Academic Health Sciences Centre; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Agriculture – a $122 million increase, primarily for the introduction of the Saskatchewan Cattle and Hog Support Program and an increase in AgriStability, AgriInvest and Crop Insurance Program costs; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Education – a $121 million increase, primarily due to accelerated infrastructure spending; and |
|--------|------------------------------------------------------------------------------------------------------|

| • | Highways and Infrastructure – a $110 million increase, primarily due to funding for the Saskatoon Circle Drive South project, the Saskatchewan Global Transportation Hub and for other projects within the Urban Highway Connector Program. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Commercial Operations accounted for $86 million of the total expense increase over budget. Ministries with commercial operations are allowed to re-spend the revenues earned through these operations. Accordingly, the budget expense is shown net of revenues in the Estimates. In the Public Accounts, revenues and expenses are reported on a gross basis to provide accountability for these operations. This results in variances between the        budget and actual expense being shown in the Public Accounts. 

The above increases are partially offset by debt servicing costs which were $15 million lower than budget, mainly due to reduced in-year borrowing requirements. 

----

**16**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Expense *(continued)***

**Expense by Theme**

The GRF expense by theme for 2008-09 was as follows: 

----

----

| 1 | Key components of “other” include agriculture (4%), environment and natural resources (4%) and protection of persons and property (4%). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

In the last five fiscal years, the GRF expense by theme was as follows: 

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **17**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Expense *(continued)***

*Comparison to Previous Year*

Total expense was $1.77 billion higher than in 2007-08. Key increases pertain to the following themes: 

| • | Education – a $551 million increase, primarily due to an increase in funding for school operating and Education Property Tax relief, as well as increased funding for accelerated K-12 and Post-secondary capital; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Health – a $472 million increase, primarily due to an increase in funding to the Regional Health Authorities for new long-term care facilities and infrastructure upgrades, health worker compensation, and drug, medical and supply costs; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Environment and natural resources – a $246 million increase, primarily due to the transfer of funding from the federal government to the Crown Investments Corporation of Saskatchewan for Carbon Capture funding; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Community development – a $180 million increase, primarily due to additional municipal infrastructure and operating funding; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| • | Transportation – a $152 million increase, primarily due to additional funding for road and bridge infrastructure, as well as minor increases for winter road maintenance and other operating costs; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Agriculture – a $122 million increase, mainly related to crop insurance premiums as well as cattle and hog support programs in response to livestock industry conditions. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

These increases were partially offset by a $27 million reduction in debt servicing costs, primarily due to lower debt levels and lower long-term borrowing costs. 

----

**18**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Expense *(continued)***

**Expense by Object**

The GRF expense by object for 2008-09 was as follows: 

----

----

In the last five fiscal years, the GRF expense by object was as follows: 

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **19**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Public Debt and Debt Servicing Costs**

**Public Debt**

Public debt consists of gross debt net of sinking funds and includes: 

| • | government general debt, which is debt issued by the GRF to fund government spending; |
|--------|---------------------------------------------------------------------------------------|

| • | Crown corporation general debt, which is debt issued by the GRF and subsequently loaned to a Crown corporation; and |
|--------|---------------------------------------------------------------------------------------------------------------------|

| • | government business enterprise specific debt, which is debt of self-sufficient Crown corporations issued by the GRF specifically on their behalf. The Government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

The Government has undertaken initiatives to significantly reduce the government general debt outstanding and the costs to service this debt. The Government’s debt reduction strategy includes the following components: 

| • | paying down existing debt; |
|--------|----------------------------|

| • | transferring debt borrowed for general government purposes to Crown corporations to meet their borrowing requirements; and |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| • | increasing sinking fund contributions. |
|--------|----------------------------------------|

This strategy has resulted in a $2.67 billion reduction in government general debt during 2008-09. At March 31, 2009, government general debt was $4.15 billion. 

Beginning in 2008-09, the public debt reported on the GRF Statement of Financial Position is presented net of government business enterprise specific debt to comply with Public Sector Accounting Board standards. This change in accounting policy has been retroactively applied. 

The GRF’s public debt for the past ten years was as follows: 

----

----

**20**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Public Debt and Debt Servicing Costs *(continued)***

Since 1999-00, the government general debt reported on the GRF Statement of Financial Position has declined by $3.38 billion from $7.53 billion to $4.15 billion. 

Crown corporation general debt and government business enterprise specific debt have remained relatively constant since 1999-00 and at March 31, 2009 include $2,297.2 million for Saskatchewan Power Corporation, $801.6 million for SaskEnergy Incorporated and $291.4 million for Saskatchewan Telecommunications Holding Corporation. 

**Debt Servicing Costs**

The GRF incurs interest and other costs to service general debt. The amount of these costs is determined by the amount of general debt and the interest rate attached to that debt. The average effective interest rate on gross debt during 2008-09 was 6.8 per cent. 

The Government’s debt reduction strategy has resulted in a decrease in debt servicing costs and an increase in interest revenue. While paying down existing debt reduces the cost of debt servicing, contributing to sinking funds increases interest earnings. 

Net interest cost is calculated as debt servicing costs less interest earnings. It is a measure of the positive impact on the Province’s operations from reducing general debt. 

The GRF has reported the following debt servicing costs and net interest costs over the past ten years: 

----

----

Since 1999-00, both the amount of general debt and the level of interest rates have declined. As a result, the debt servicing costs reported by the GRF have decreased from $799 million in 1999-00 to $520 million in 2008-09. At the same time, interest revenue has increased, resulting in a reduction in net interest costs from $661 million in 1999-00 to $332 million in 2008-09. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **21**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Public Debt and Debt Servicing Costs *(continued)***

**Credit Rating Upgrade**

The improvement in the Government’s finances since 1999-00 has led to a series of upgrades in its credit ratings. One of the world’s leading credit rating agencies is Standard & Poor’s. Its credit rating for the Province of Saskatchewan since 1999-00 is shown below: 

----

----

Saskatchewan holds the 2nd highest possible credit rating from two of the three credit rating agencies and holds the 4th highest rating from the third agency. The credit ratings for all jurisdictions are as follows: 

----

|                              |              |                |           |
|-----------------------------------|-------------------|---------------------|----------------|
| ***Credit Ratings - March 2009*** |              |                |           |
|                              | Moody's Investors |                | Dominion Bond  |
| Jurisdiction                      | Service Inc.      | Standard and Poor's | Rating Service |
| British Columbia                  | Aaa               | AAA                 | AA(high)       |
| Alberta                           | Aaa               | AAA                 | AAA            |
| **Saskatchewan**                  | **Aa1***          | **AA+**             | **AA(low)***   |
| Manitoba                          | Aa1               | AA                  | A(high)        |
| Ontario                           | Aa1               | AA                  | AA             |
| Quebec                            | Aa2               | A+*                 | A(high)        |
| New Brunswick                     | Aa1               | AA-                 | A(high)        |
| Nova Scotia                       | Aa2               | A+*                 | A*             |
| Prince Edward Island              | Aa2               | A*                  | A(low)         |
| Newfoundland                      | Aa2               | A*                  | A              |

----

The rating agencies assign letter ratings to borrowers. The major A bracket categories, in descending order of credit quality, are: AAA/Aaa; AA/Aa; A. The ‘1’, ‘2’, ‘3’, ‘high’, ‘low’, ‘-’, and ‘+’ modifiers show relative standing within the major categories. For example, AAA exceeds AA, Aa1 exceeds Aa2 and AA exceeds AA-. 

*  positive outlook or trend. 

----

**22**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Investment in Infrastructure**

The Government invests in infrastructure in two ways: 

| • | by providing grants to third parties for capital purposes. This includes grants for schools, universities and hospitals; and |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| • | by investing in government-owned capital, such as highways. |
|--------|-------------------------------------------------------------|

During 2008-09, $1.51 billion was invested in infrastructure. The Government’s investment in infrastructure over the past five years is presented below: 

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **23**

----

----

Financial Statement Discussion and Analysis 

----

**General Revenue Fund Financial Statements**

**Net Debt**

Net debt is one measure of the amount of debt that has been left to future generations. It is the difference between the GRF’s liabilities and its financial assets. 

During 2008-09, net debt decreased by $2.20 billion. This decrease can be attributed to the GRF’s surplus of $2.39 billion, partially offset by amounts invested in tangible capital assets and other non-financial assets. 

Since 1999-00, the net debt of the GRF has declined from $7.07 billion to $3.85 billion, as follows: 

----

----

A decreasing net debt is an indicator of increased flexibility over future spending. 

----

**24**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Stabilization Fund**

*The Growth and Financial Security Act* received royal assent on May 14, 2008. At that time, the Growth and Financial Security Fund (GFSF) was created and the balances in the Fiscal Stabilization Fund ($1,529 million) and the Saskatchewan Infrastructure Fund ($105 million) were transferred to the GFSF. 

The Growth and Financial Security Act requires: 

| • | the Government to balance the GRF budget each fiscal year; |
|--------|------------------------------------------------------------|

| • | the annual preparation of four-year financial plans and public debt management plans; and |
|--------|-------------------------------------------------------------------------------------------|

| • | that 50 per cent of the annual surplus in the GRF be transferred to the GFSF. |
|--------|-------------------------------------------------------------------------------|

The stabilization balance for the past five years was as follows: 

----

----

The balance in the GFSF at March 31, 2009 was $1,215 million. This represents a $419 million decrease from the previous year, which is the net result of: 

| • | a transfer to the fund of $985 million, representing 50 per cent of the GRF pre-transfer surplus; and |
|--------|-------------------------------------------------------------------------------------------------------|

| • | a transfer from the fund of $1,404 million, primarily to reduce government general debt. |
|--------|------------------------------------------------------------------------------------------|

----

|                                                                    |
|--------------------------------------------------------------------|
||
||
||
| Opening Balance                                                    |   |   |   | 1,634 |   |
| Transfers from the GRF (50 per cent of GRF pre-transfer surplus)   |   |   |   | 985 |   |
| Transfers to the GRF (Primarily to reduce government general debt) |   |   |   | (1,404 | ) |
| Closing balance                                                    |   |   |   | 1,215 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts   **25**

----

----

Financial Statement Discussion and Analysis 

----

***Summary Financial Statements***

**Financial Highlights**

|                                                 |   |   |   |   |   |   |   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
||
||
| Revenue                                              |   |   |   | 13,589 |   |   | 10,790 |   |
| Expense                                              |   |   |   | 11,306 |   |   | 9,860  |   |
| Surplus from government service organizations        |   |   |   | 2,283  |   |   | 930    |   |
| Income from government business enterprises          |   |   |   | 685    |   |   | 943    |   |
| **Surplus**                                          |   |   |   | 2,968  |   |   | 1,873  |   |
| Financial assets                                     |   |   |   | 9,553  |   |   | 8,974  |   |
|     *Less:* Liabilities          |   |   |   | 13,077 |   |   | 14,847 |   |
| Net debt                                             |   |   |   | (3,524 | )      |   | (5,873 | )      |
|     *Plus:* Non-financial assets |   |   |   | 4,921  |   |   | 4,655  |   |
| **Accumulated Surplus (Deficit)**                    |   |   |   | 1,397  |   |   | (1,218 | )      |

**Reporting Entity**

The Summary Financial Statements (SFS) include the financial activities of organizations controlled by the Government. These organizations are segregated into two classifications, government service organizations (GSOs) and government business enterprises (GBEs). GBEs are self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the        government reporting entity as their principal activity. All other organizations are GSOs. A complete listing of the organizations included in the government reporting entity is provided in schedule 21 of the SFS. 

**Surplus**

*Comparison to Previous Year*

The surplus of $2.97 billion in 2008-09 was $1.10 billion higher than the $1.87 billion surplus reported in 2007-08. 

This increase was primarily due to a $1.35 billion improvement in the net operating results of GSOs. Revenues from GSOs increased in 2008-09 by $2.80 billion, primarily due to increases in non-renewable resources ($1,972 million) and transfers from the federal government ($159 million), as well as a gain on the sale of Saskferco Products Inc. ($680 million). This increase in revenue was partially offset by a $1.45 billion increase        in GSO expenses, primarily in education ($481 million) and health ($378 million). There were also significant increases in community development ($227 million), agriculture ($206 million) and transportation expenses ($156 million). 

There was a $258 million decrease in income from GBEs. This decrease was mainly a result of lower investment returns during the year. 

----

**26**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Financial Highlights *(continued)***

*Comparison to Budget*

The Government prepares a Summary Financial Budget which is based on the entities that are included in the SFS. In this budget, the categorization of organizations is aligned with the Cabinet Committee (CIC Board or Treasury Board) that examines an organization’s budget. There is also a category for Not-for-Profit Insurance organizations which are intended to be actuarially sound over the long-term. As the categorization is        different than that used for reporting purposes in the SFS, actual results are most easily compared to budget based on the annual surplus/deficit. 

|                              |    |    |    |    |    |    |    |    |
|----------------------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|
||
||
||
| **Treasury Board Organizations**       |         |         |         |         |         |         |         |         |
| General Revenue Fund                   |         |         |         | 250          |         |         | 2,389        |         |
| Growth and Financial Security Fund     |         |         |         | --           |         |         | (419         | )            |
| Other Treasury Board Organizations 2   |         |         |         | (203         | )            |         | 23           |         |
|                                   |         |         |         | 47           |         |         | 1,993        |         |
| CIC Board Organizations 2              |         |         |         | (192         | )            |         | 842          |         |
|                                   |         |         |         | (145         | )            |         | 2,835        |         |
| Not-for-Profit Insurance Organizations |         |         |         | 12           |         |         | 133          |         |
| **Surplus (Deficit)**                  |         |         |         | (133         | )            |         | 2,968        |         |

| 1 | Presented on the basis of the Summary Financial Budget. |
|---|---------------------------------------------------------|

| 2 | Net of dividends paid to other government organizations. |
|---|----------------------------------------------------------|

The 2008-09 SFS report a surplus of $2.97 billion. This was a $3.10 billion improvement from the budget deficit of $133 million. 

This improvement was largely due to improved General Revenue Fund (GRF) results, with the GRF and the Growth and Financial Security Fund (GFSF) representing $1.72 billion of the increase. The reasons for this improvement are explained in the GRF financial statement discussion and analysis. 

There was also a $1.03 billion improvement in the surplus of CIC Board organizations, primarily due to a $680 million gain on the sale of Saskferco Products Inc. Additionally, there was a $226 million improvement in the surplus of other Treasury Board organizations and a $121 million improvement in the surplus of not-for-profit insurance organizations. 

**Net Debt**

Net debt is the difference between the liabilities and financial assets reported on the Summary Statement of Financial Position. Net debt is an indicator of the amount of future revenues that will be required to pay for past transactions and events. In 2008-09, the SFS net debt declined by $2.35 billion to $3.52 billion. 

**Accumulated Surplus**

The accumulated surplus or deficit is the sum of all the annual results reported to date by the Government. In 2008-09, for the first time since publication, the SFS reported an accumulated surplus. The accumulated surplus of $1.40 billion represents a $2.62 billion improvement over the $1.22 billion accumulated deficit reported in 2007-08. An accumulated surplus indicates that a government has net resources that can be used to        provide future services. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **27**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Surplus/Deficit**

The SFS have reported the following results over the past ten years: 

----

----

| * | Since 2003-04, tangible capital assets have been capitalized and expensed over their useful life rather than being fully expensed in their year of acquisition. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Accumulated Surplus**

For the first time since its publication, the SFS reported an accumulated surplus. The SFS accumulated surplus (deficit) for the past ten years was as follows: 

----

----

| * | Since 2003-04, tangible capital assets have been capitalized and expensed over their useful life rather than being fully expensed in their year of acquisition. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**28**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Revenue**

The SFS’s sources of revenue for 2008-09 were as follows: 

----

----

In the last five fiscal years, the SFS revenue was derived from the following sources: 

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **29**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Expense**

**Expense by Theme**

The SFS expense by theme for 2008-09 was as follows: 

----

----

| 1 | Key components of “other” include community development (5%), transportation (5%) and protection of persons and property (4%). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

In the last five fiscal years, the SFS expense by theme was as follows: 

----

----

----

**30**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Expense *(continued)***

**Expense by Object**

In addition to reporting expense by theme, the SFS also present expense by object, or major type of expense. 

The SFS expense by object for 2008-09 was as follows: 

----

----

In the last five fiscal years, the SFS expense by object was as follows: 

----

----

----

Government of Saskatchewan - 2008-09 Public Accounts   **31**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Income from Government Business Enterprises**

Government business enterprises are independently managed, profit oriented organizations that are controlled by the Government. The SFS reported the following income from government business enterprises over the past ten years: 

----

----

----

**32**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Public Debt and Debt Charges**

**Public Debt**

Public debt consists of gross debt net of sinking funds and includes: 

| • | general debt, which is: |
|--------|-------------------------|

|   | - | debt issued by the GRF and other government service organizations; and |
|--------|---|------------------------------------------------------------------------|

|   | - | debt issued by government service organizations and subsequently loaned to government business enterprises; and |
|--------|---|-----------------------------------------------------------------------------------------------------------------|

| • | government business enterprise specific debt, which is debt issued by government service organizations specifically on behalf of government business enterprises where the Government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Public debt on the Summary Statement of Financial Position is presented net of government business enterprise specific debt. The SFS’s public debt for the past ten years was as follows: 

----

----

At March 31, 2009, the SFS report public debt of $4.80 billion. Since 1999-00, public debt has declined $3.39 billion, from $8.19 billion to $4.80 billion. 

At March 31, 2009, the government business enterprise specific debt was $3.15 billion. This amount consists primarily of the debt of Saskatchewan Power Corporation, SaskEnergy Incorporated and Saskatchewan Telecommunications Holding Corporation. Government business enterprise specific debt is included in the Investment in (or net assets of) Government Business Enterprises reported on the Summary Statement of Financial Position and        disclosed in Schedule 3 of the SFS. Since 1999-00, government business enterprise specific debt has remained relatively stable, increasing slightly from $2.87 billion to $3.15 billion. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **33**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Public Debt and Debt Charges *(continued)***

**Debt Charges**

The Government incurs interest and other costs to service its public debt. The amount of these costs is determined by the amount of public debt and the interest rate attached to that debt. The average effective interest rate on gross debt during 2008-09 was 6.8 per cent. 

----

----

----

**34**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Net Debt**

Net debt is one measure of the amount of debt that has been left to future generations. It is the difference between the SFS liabilities and its financial assets. 

During 2008-09, net debt decreased by $2.35 billion. This decrease can be attributed to the SFS’s surplus of $2.97 billion, partially offset by amounts invested in tangible capital assets and other non-financial assets. 

Since 1999-00, the net debt of the SFS has declined from $8.42 billion to $3.52 billion, as follows: 

----

----

A decreasing net debt is an indicator of increased flexibility over future spending. 

**Financial Assets**

Financial assets represent the amount of resources that are available to the Government that can be converted to cash to meet obligations or fund operations. In the past five years, the Government’s financial assets were as follows: 

----

----

| 1 | In 2008-09, primarily accounts receivable ($1.11 billion). |
|---|------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **35**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Liabilities**

Liabilities represent the obligations that the Government has to others arising from past transactions or events. In the past five years, the Government’s liabilities were as follows: 

----

----

| 1 | In 2008-09, primarily accounts payable ($2.21 billion). |
|---|---------------------------------------------------------|

From 2004-05 to 2008-09, liabilities decreased by $1.35 billion. This is the net result of a $3.35 billion decrease in public debt, partially offset by a $1.28 billion increase in pension liabilities. Information relating to public debt can be found in more detail in the public debt and debt charges section found on page 33. 

The total pension liability has increased from $4.19 billion in 2004-05 to $5.47 billion in 2008-09. The Teachers’ Superannuation Plan is responsible for $945 million of this increase. The increase is due to pension costs, including interest on the pension liabilities, exceeding payments to the pension plans and retirees. The liabilities are projected to increase until the majority of the plan members are retired around 2014.        In subsequent years, the liabilities will decline as pensions are paid to retired members. 

----

**36**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Non-financial Assets**

The 2008-09 SFS report total non-financial assets of $4.92 billion, which primarily consists of tangible capital assets. 

**Tangible Capital Assets**

The Statement of Financial Position reports the net book value of tangible capital assets held by government service organizations, and does not include the capital assets held by government business enterprises. The capital assets held by government business enterprises are included in the Investment in (or net assets of) Government Business Enterprises reported on the Statement of Financial Position and disclosed in Schedule 3 of        the SFS. The net book value of capital assets of government service organizations in the past five years is as follows: 

----

----

The net book value represents the original cost of capital assets net of accumulated amortization and any write-down in value. The net book value of capital assets held by the Government has steadily increased over the last five years indicating an increase in the future service potential of the Government’s capital assets. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **37**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Assessment of Financial Condition**

**Sustainability**

Sustainability is the degree to which a government can maintain its existing financial obligations without increasing its debt or tax burden. 

*Net Debt to Total Revenue*

One measure of a government’s sustainability is the ratio of net debt to total revenue. Net debt provides a measure of the future revenue that is required to pay for past transactions and events. A net debt to revenue ratio that is decreasing indicates improved sustainability. 

----

----

When expressed as a percentage of total revenue, the Government’s net debt has declined from 127.1 per cent to 25.9 per cent of total revenue since 1999-00. The reduction in this ratio indicates that the Government’s annual revenue has been sufficient to not only pay for current transactions and events, but also to pay off a portion of past deficits. 

*Public Debt to the Province’s Gross Domestic Product*

In addition to looking at the absolute level of debt, credit rating agencies often look at government public debt in comparison to the Province’s gross domestic product (GDP). GDP is a measure of the size of the Province’s economy, so it provides a measure of how much debt the Government can afford to carry. If this ratio decreases, the Government’s public debt is becoming less onerous on the economy, which is an        indication of sustainability. 

----

**38**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Assessment of Financial Condition *(continued)***

----

----

When expressed as a percentage of the Province’s GDP, the Government’s general debt has declined from 26.5 per cent to 7.2 per cent of GDP since 1999-00. This reflects both a growing economy and declining debt levels and that the level of public debt has become less onerous on the economy. In particular, the ratio has decreased from 14.5 per cent in 2007-08 to 7.2 per cent in 2008-09. Such a significant reduction        increases the Government’s flexibility. 

**Flexibility**

Flexibility is the degree to which a government can change its debt or tax burden and still meet its existing financial obligations. 

*Debt Charges to Total Revenue*

A debt charges to revenue ratio, often referred to as the interest bite, indicates the proportion of provincial revenue that is required to pay interest charges on public debt and therefore, is not available to pay for program costs. A decreasing ratio means that there is more money left to provide government services. 

----

----

Over the last ten years, the interest bite has decreased. In 2008-09, the Government spent approximately 5.9 cents of each dollar of revenue on debt charges on public debt, compared to 15.5 cents in 1999-00. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **39**

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Assessment of Financial Condition *(continued)***

*Own-source Revenue to the Province’s Gross Domestic Product*

This ratio measures the extent to which the Government is taking income out of the economy, either through taxation or user fees. An increase in this ratio indicates that the Government’s own-source revenues are growing faster than the economy, reducing the Government’s flexibility to increase revenues without slowing the growth of the provincial economy. 

----

----

Own-source revenue as a percentage of GDP has remained relatively stable. This indicates that the Government’s flexibility is largely unchanged over the last ten years. 

----

**40**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Financial Statement Discussion and Analysis 

----

**Summary Financial Statements**

**Assessment of Financial Condition *(continued)***

**Vulnerability**

Vulnerability is the degree to which a government is dependent on sources of funding outside of its control or is exposed to risks that could impair its ability to meet its existing financial obligations. 

*Transfers from the Federal Government to Total Revenue*

Transfers from the federal government as a percentage of total revenue is an indicator of the degree of vulnerability the Government has as a result of reliance on the federal government for revenues. Generally, if the ratio is decreasing, the Province is less reliant on federal transfers to fund its programs, resulting in lower vulnerability. 

For the past ten years, the percentage of total revenue attributable to transfers from the federal government was as follows: 

----

----

In 2008-09, 14.5 per cent of the Government’s revenue came from transfers from the federal government, with the remainder coming from Saskatchewan sources. This is slightly lower than last year indicating an improved ability of the Government to fund essential programs and services from own-source revenues, decreasing vulnerability to changes in federal transfers which are beyond its control. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **41**

----

----

Financial Statement Discussion and Analysis 

----

**Risks and Uncertainties**

The Government is subject to risks and uncertainties that arise from variables which the Government can not directly control. These risks and uncertainties include: 

| • | changes in economic factors such as economic growth, commodity and non-renewable resource prices, inflation, interest rates, population growth, personal income and retail sales; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | financial risks including interest rate risk, foreign exchange rate risk, credit risk and liquidity risk; |
|--------|-----------------------------------------------------------------------------------------------------------|

| • | changes in transfers from the federal government; |
|--------|---------------------------------------------------|

| • | utilization of Government services, such as crop insurance, health care and social services; |
|--------|----------------------------------------------------------------------------------------------|

| • | other unforeseen developments including natural and other disasters, changes in environmental liabilities and legal obligations; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| • | changes in accounting standards. |
|--------|----------------------------------|

The Government has implemented strategies that limit its exposure to such risks and uncertainties. The key component of this fiscal management plan is *The Growth and Financial Security Act* (the Act), legislation that provides a fiscal framework to ensure balanced budgets and the appropriate use of surplus revenues. 

The Act imposes discipline into the budgetary process and reduces risk to external events by requiring annual program reviews and the tabling of balanced budgets and debt management plans, yet the fiscal framework has the flexibility to respond to sudden and rapid changes in factors beyond Government’s influence or control. Specifically, the Act: 

| • | requires a four year financial plan, with balanced budgets each year, to be prepared annually; |
|--------|------------------------------------------------------------------------------------------------|

| • | requires a four year debt management plan to be prepared annually; |
|--------|--------------------------------------------------------------------|

| • | requires actual revenue in each fiscal year to be greater than actual expense; |
|--------|--------------------------------------------------------------------------------|

| • | requires deficits to be fully offset in the following fiscal year; |
|--------|--------------------------------------------------------------------|

| • | establishes the Growth and Financial Security Fund to assist in providing for financial security from year to year and to provide a source of funds available for use for promoting or enhancing the economic development of Saskatchewan; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | requires 50 per cent of any GRF pre-transfer surplus to be transferred to the Growth and Financial Security Fund; |
|--------|-------------------------------------------------------------------------------------------------------------------|

| • | requires the remaining 50 per cent of any GRF pre-transfer surplus to be applied to the Debt Retirement Fund; and |
|--------|-------------------------------------------------------------------------------------------------------------------|

| • | contains provisions for extraordinary events, such as natural or other disasters, that lead to unanticipated spending or reduced revenues. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

In addition, recognizing that Saskatchewan is heavily reliant on non-renewable resources and external events, Government takes a prudent approach in developing its budget assumptions for macroeconomic variables and non-renewable resource prices. Government makes use of a number of forecasts from national forecasting agencies and banks, private industry and private sector analysts when developing the underlying assumptions to fiscal        forecasts both at budget and throughout the fiscal year. 

The fiscal impact of changes in the underlying economic assumptions, including non-renewable resource prices, are estimated on a regular basis in order to quantify the risk associated with each forecast assumption. By understanding the size of the risk inherent in the fiscal projections, Government is better able to make sound financial decisions. 

Finally, the Government requires regular fiscal updates during the fiscal year. These updates are based on the continual monitoring of monthly financial results and current economic conditions, as well as the early identification of potential spending pressures. The Government publishes quarterly reports that contain revised fiscal and economic forecasts so that Saskatchewan residents are well-informed as to the Government’s        current fiscal position and the risks and uncertainties associated with the Government’s fiscal plan. 

Risk management specific to public debt is discussed in note 3 of the GRF financial statements and note 3 of the SFS. 

----

**42**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

# General Revenue Fund Financial Statements 

----

----

----

----

----

General Revenue Fund

----

**Responsibility for the General Revenue Fund Financial Statements**

The Government is responsible for the General Revenue Fund Financial Statements. The Government maintains a system of accounting and administrative controls to ensure that accurate and reliable financial statements are prepared and to obtain reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained. 

The Provincial Comptroller prepares these statements in accordance with the Government’s stated accounting policies and using the Government’s best estimates and judgement when appropriate. 

The Provincial Auditor expresses an independent opinion on these statements. His report, which appears on the following page, provides the scope of his audit and states his opinion. 

Treasury Board approves the General Revenue Fund Financial Statements. The statements are tabled in the Legislative Assembly as part of the Public Accounts and referred to the Standing Committee on Public Accounts for review. 

On behalf of the Government of the Province of Saskatchewan. 

/s/ Rod Gantefoer

**ROD GANTEFOER***Minister of Finance*

/s/ Doug Matthies

**DOUG MATTHIES***Deputy Minister of Finance*

/s/ Terry Paton

**TERRY PATON***Provincial Comptroller*

Regina, Saskatchewan        June 2009

----

Government of Saskatchewan - 2008-09 Public Accounts   **45**

----

----

----

----

----

General Revenue Fund 

----

**Auditor’s Report**

To the Members of the Legislative Assembly of Saskatchewan 

**These financial statements report transactions and events of the General Revenue Fund only. Significant financial activities of the Government occur outside this Fund. Readers should not use the General Revenue Fund’s financial statements to understand and assess the Government’s management of public financial affairs and resources as a whole; rather they should use the *Summary Financial Statements* of the        Government of Saskatchewan *(Summary Financial Statements)*.**

**Volume 1 of the Public Accounts includes the *Summary Financial Statements*. These statements report the full nature and extent of the financial affairs and resources for which the Government is responsible.**

I have audited the statement of financial position of the General Revenue Fund as at March 31, 2009 and the statements of operations, accumulated deficit, change in net debt, and cash flow for the year then ended. These financial statements are the responsibility of Treasury Board. My responsibility is to express an opinion on these financial statements based on my audit. 

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and        significant estimates made by management, as well as evaluating the overall financial statement presentation. 

| 1. | The Government through the General Revenue Fund is responsible for the liabilities of several pension plans. Notes 1 and 4 state that the pension liabilities are not recorded in these financial statements. Canadian generally accepted accounting principles for the public sector require that the pension liabilities be recorded in the financial statements. Had pension liabilities been recorded, liabilities and                accumulated deficit would increase by $5,442 million (2008 — $5,088 million) as at March 31, 2009 and, for the year, expenses would increase by $355 million (2008 — $429 million), and surplus would decrease by the same amounts. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The Government records transactions between the General Revenue Fund and the Growth and Financial Security Fund (GFSF) (2008 – Fiscal Stabilization Fund) as revenue or expense of the General Revenue Fund. The substance of the transactions between the General Revenue Fund and these Funds is the amounts that the General Revenue Fund owes or has paid to these Funds must be repaid by these Funds to the General                Revenue Fund. Canadian generally accepted accounting principles for the public sector do not allow the General Revenue Fund to record changes in the amounts due or paid to these Funds as revenue or expense of the General Revenue Fund. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The financial statements show an expense (as transfer to the GFSF) of $985 million (2008 — $641 million) and a revenue (as transfer from the GFSF) of $1,404 million (2008 – nil) for an annual net transfer of $419 million. It is not appropriate to record an expense because the GFSF must return all amounts to the General Revenue Fund. Also, it is not appropriate to record a revenue for it is only the                amount the GFSF has returned to the General Revenue Fund in the year. Instead of recording an expense or a revenue, the financial statements should record an asset equal to the amount it owed or paid to the GFSF. Had the Government properly recorded these transactions, financial assets would increase by $1,215 million (2008 — $1,634 million) and accumulated deficit would decrease by the same amount as at March 31, 2009 and, for the year, the net transfer from the GFSF                would decrease by $419 million (2008 — the transfer to the Fiscal Stabilization Fund would decrease by $641 million), and the surplus would decrease by $419 million (2008 – increase by $641 million). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **47**

----

----

General Revenue Fund 

----

In my opinion, except for the effects of not recording pension liabilities and recording the amounts that the General Revenue Fund has paid to the GFSF as expense and revenue of the General Revenue Fund as described in the preceding paragraphs, these financial statements present fairly, in all material respects, the financial position of the General Revenue Fund as at March 31, 2009 and the results of its operations, the changes in        its net debt, and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. 

/s/ Fred Wendel

**FRED WENDEL, CMA, CA***Provincial Auditor*

Regina, Saskatchewan        June 5, 2009

----

**48**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Statement of Financial Position**As at March 31, 2009*(thousands of dollars)*

|                                                                    |   |   |   | 2009       |   |   | 2008       |   |
|-------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|
||
| **Financial Assets**                                                    |   |   |   |       |   |   |       |   |
| Cash and temporary investments *(note 2)*                               |   |   |   | 575,895    |   |   | 821,475    |   |
| Accounts receivable *(schedule 1)*                                      |   |   |   | 915,389    |   |   | 736,377    |   |
| Deferred charges                                                        |   |   |   | 14,166     |   |   | 19,236     |   |
| Loans to Crown corporations *(schedule 2)*                              |   |   |   | 520,229    |   |   | 461,161    |   |
| Other loans *(schedule 3)*                                              |   |   |   | 122,454    |   |   | 129,635    |   |
| Equity investment in Crown Investments Corporation of Saskatchewan      |   |   |   | 1,051,152  |   |   | 1,181,152  |   |
| **Total Financial Assets**                                              |   |   |   | 3,199,285  |   |   | 3,349,036  |   |
| **Liabilities**                                                         |   |   |   |       |   |   |       |   |
| Accounts payable and accrued liabilities *(schedule 4)*                 |   |   |   | 1,721,516  |   |   | 1,653,449  |   |
| Deposits held *(schedule 5)*                                            |   |   |   | 594,355    |   |   | 385,388    |   |
| Unearned revenue                                                        |   |   |   | 76,454     |   |   | 72,823     |   |
| Public debt                                                             |   |   |   |       |   |   |       |   |
|    Government general debt *(note 3)(schedule 6)*        |   |   |   | 4,145,286  |   |   | 6,824,323  |   |
|    Crown corporation general debt *(note 3)(schedule 6)* |   |   |   | 520,229    |   |   | 461,161    |   |
| Unamortized foreign exchange (loss) gain                                |   |   |   | (10,503    | )      |   | 606        |   |
| **Total Liabilities**                                                   |   |   |   | 7,047,337  |   |   | 9,397,750  |   |
| **Net Debt**                                                            |   |   |   | (3,848,052 | )      |   | (6,048,714 | )      |
| **Non-financial Assets**                                                |   |   |   |       |   |   |       |   |
| Prepaid expenses                                                        |   |   |   | 6,902      |   |   | 6,685      |   |
| Inventories held for consumption                                        |   |   |   | 97,345     |   |   | 85,269     |   |
| Tangible capital assets *(schedule 9)*                                  |   |   |   | 2,772,877  |   |   | 2,596,969  |   |
| **Total Non-financial Assets**                                          |   |   |   | 2,877,124  |   |   | 2,688,923  |   |
| **Accumulated Deficit**                                                 |   |   |   | (970,928   | )      |   | (3,359,791 | )      |

Retirement benefits *(note 4)*        Contingencies *(note 5)*        Contractual obligations *(note 6)*        Guaranteed debt *(note 5)(schedule 8)**The accompanying notes and schedules are an integral part of these financial statements.*

----

Government of Saskatchewan - 2008-09 Public Accounts   **49**

----

----

General Revenue Fund 

----

**Statement of Operations**For the Year Ended March 31, 2009*(thousands of dollars)*

|                                                                  |   |   | 2009   |        | 2008   |   |
|-----------------------------------------------------------------------|--------|--------|--------|-------------|--------|--------|
||
| **Revenue**                                                           |   |   |   | *(note 12)* |   |   |   |   |   | (Restated) |   |
| Taxation                                                              |   |   |   | 4,312,800   |   |   | 4,430,995 |   |   | 4,418,243 |   |
| Non-renewable resources                                               |   |   |   | 2,273,100   |   |   | 4,612,408 |   |   | 2,640,346 |   |
| Transfers from Government entities                                    |   |   |   | 968,400     |   |   | 851,216 |   |   | 653,154 |   |
| Other own-source revenue                                              |   |   |   | 426,700     |   |   | 721,489 |   |   | 551,374 |   |
| Transfers from the federal government                                 |   |   |   | 1,385,500   |   |   | 1,708,964 |   |   | 1,602,561 |   |
| **Total Revenue***(schedule 10)*                                      |   |   |   | 9,366,500   |   |   | 12,325,072 |   |   | 9,865,678 |   |
| **Expense**                                                           |   |   |   |        |   |   |   |   |   |   |   |
| **Executive Branch of Government**                                    |   |   |   |        |   |   |   |   |   |   |   |
| Advanced Education, Employment and Labour                             |   |   |   | 761,014     |   |   | 893,291 |   |   | 685,163 |   |
| Agriculture                                                           |   |   |   | 302,805     |   |   | 424,396 |   |   | 302,197 |   |
| Corrections, Public Safety and Policing                               |   |   |   | 291,878     |   |   | 315,083 |   |   | 305,417 |   |
| Crown Investments Corporation of Saskatchewan                         |   |   |   | --          |   |   | 240,000 |   |   | -- |   |
| Education                                                             |   |   |   | 1,186,314   |   |   | 1,307,461 |   |   | 959,951 |   |
| Energy and Resources                                                  |   |   |   | 38,551      |   |   | 37,946 |   |   | 56,268 |   |
| Enterprise and Innovation                                             |   |   |   | 60,131      |   |   | 54,618 |   |   | 54,040 |   |
| Enterprise Saskatchewan                                               |   |   |   | --          |   |   | 6,087 |   |   | -- |   |
| Environment                                                           |   |   |   | 186,167     |   |   | 177,129 |   |   | 174,921 |   |
| Executive Council                                                     |   |   |   | 8,716       |   |   | 8,293 |   |   | 12,562 |   |
| Finance                                                               |   |   |   | 298,534     |   |   | 290,832 |   |   | 284,463 |   |
| Finance - debt servicing *(schedule 11)*                              |   |   |   | 535,000     |   |   | 520,181 |   |   | 546,718 |   |
| First Nations and Métis Relations                              |   |   |   | 70,336      |   |   | 86,526 |   |   | 70,958 |   |
| Government Services                                                   |   |   |   | 13,450      |   |   | 12,738 |   |   | 8,654 |   |
| Government Services - commercial operations *(schedule 12)*           |   |   |   | --          |   |   | 81,180 |   |   | 70,312 |   |
| Health                                                                |   |   |   | 3,745,333   |   |   | 3,976,241 |   |   | 3,504,333 |   |
| Highways and Infrastructure                                           |   |   |   | 372,090     |   |   | 482,400 |   |   | 353,684 |   |
| Highways and Infrastructure - commercial operations *(schedule 12)*   |   |   |   | --          |   |   | 2,892 |   |   | 6,542 |   |
| Information Technology Office                                         |   |   |   | 5,401       |   |   | 5,384 |   |   | 5,362 |   |
| Information Technology Office - commercial operations *(schedule 12)* |   |   |   | --          |   |   | 1,630 |   |   | 27 |   |
| Intergovernmental Affairs                                             |   |   |   | 3,538       |   |   | 3,519 |   |   | 2,757 |   |
| Justice and Attorney General                                          |   |   |   | 129,542     |   |   | 135,648 |   |   | 129,189 |   |
| Municipal Affairs                                                     |   |   |   | 251,220     |   |   | 397,388 |   |   | 214,871 |   |
| Office of the Provincial Secretary                                    |   |   |   | 4,153       |   |   | 4,401 |   |   | 2,750 |   |
| Public Service Commission                                             |   |   |   | 36,621      |   |   | 35,182 |   |   | 39,234 |   |
| Saskatchewan Research Council                                         |   |   |   | 12,082      |   |   | 12,082 |   |   | 8,992 |   |
| Social Services                                                       |   |   |   | 631,446     |   |   | 676,604 |   |   | 615,032 |   |
| Tourism, Parks, Culture and Sport                                     |   |   |   | 136,858     |   |   | 130,726 |   |   | 125,309 |   |
| **Legislative Branch of Government**                                  |   |   |   |        |   |   |   |   |   |   |   |
| Chief Electoral Officer                                               |   |   |   | 1,071       |   |   | 1,166 |   |   | 10,852 |   |
| Children's Advocate                                                   |   |   |   | 1,531       |   |   | 1,529 |   |   | 1,624 |   |
| Conflict of Interest Commissioner                                     |   |   |   | 151         |   |   | 145 |   |   | 136 |   |
| Information and Privacy Commissioner                                  |   |   |   | 822         |   |   | 812 |   |   | 675 |   |
| Legislative Assembly                                                  |   |   |   | 22,931      |   |   | 22,429 |   |   | 21,389 |   |
| Ombudsman                                                             |   |   |   | 2,068       |   |   | 2,085 |   |   | 1,911 |   |
| Provincial Auditor                                                    |   |   |   | 7,126       |   |   | 7,115 |   |   | 6,516 |   |
| Total Expense *(schedules 13 and 14)*                                 |   |   |   | 9,116,880   |   |   | 10,355,139 |   |   | 8,582,809 |   |
| Pre-transfer Surplus                                                  |   |   |   | 249,620     |   |   | 1,969,933 |   |   | 1,282,869 |   |
| Transfer to the Growth and Financial Security Fund                    |   |   |   | (124,810    | )      |   | (984,967 | ) |   | -- |   |
| Transfer from the Growth and Financial Security Fund                  |   |   |   | 125,190     |   |   | 1,403,897 |   |   | -- |   |
| Transfer to the Fiscal Stabilization Fund                             |   |   |   | --          |   |   | -- |   |   | (641,434 | ) |
| **Surplus**                                                           |   |   |   | 250,000     |   |   | 2,388,863 |   |   | 641,435 |   |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

**50**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Statement of Accumulated Deficit**For the Year Ended March 31, 2009*(thousands of dollars)*

|                                   |   |   | 2009   |       | 2008   |   |
|----------------------------------------|--------|--------|--------|------------|--------|--------|
||
| Accumulated deficit, beginning of year |   |   |   | (3,359,791 | )      |   | (3,359,791 | ) |   | (4,001,226 | ) |
| Surplus                                |   |   |   | 250,000    |   |   | 2,388,863 |   |   | 641,435 |   |
| **Accumulated Deficit, End of Year**   |   |   |   | (3,109,791 | )      |   | (970,928 | ) |   | (3,359,791 | ) |

**Statement of Change in Net Debt**For the Year Ended March 31, 2009*(thousands of dollars)*

|                                                |   |   | 2009   |       | 2008   |   |
|-----------------------------------------------------|--------|--------|--------|------------|--------|--------|
||
||
| **Surplus**                                         |   |   |   | 250,000    |   |   | 2,388,863 |   |   | 641,435 |   |
| **Tangible Capital Assets**                         |   |   |   |       |   |   |   |   |   |   |   |
| Acquisitions *(schedule 9)*                         |   |   |   | (364,551   | )      |   | (349,349 | ) |   | (284,657 | ) |
| Amortization *(schedule 9)*                         |   |   |   | 151,114    |   |   | 151,521 |   |   | 146,621 |   |
| Net loss on disposal                                |   |   |   | --         |   |   | 5,153 |   |   | 931 |   |
| Proceeds on disposal                                |   |   |   | --         |   |   | 7,082 |   |   | 6,765 |   |
| Write downs *(schedule 9)*                          |   |   |   | --         |   |   | 11,026 |   |   | 1,499 |   |
| **Net Acquisition of Tangible Capital Assets**      |   |   |   | (213,437   | )      |   | (174,567 | ) |   | (128,841 | ) |
| **Other Non-financial Assets**                      |   |   |   |       |   |   |   |   |   |   |   |
| Net acquisition of prepaid expenses                 |   |   |   | --         |   |   | (217 | ) |   | (386 | ) |
| Net acquisition of inventories held for consumption |   |   |   | --         |   |   | (12,076 | ) |   | (10,643 | ) |
| **Net Acquisition of Other Non-financial Assets**   |   |   |   | --         |   |   | (12,293 | ) |   | (11,029 | ) |
| **Decrease in net debt**                            |   |   |   | 36,563     |   |   | 2,202,003 |   |   | 501,565 |   |
| Net debt, beginning of year                         |   |   |   | (6,048,714 | )      |   | (6,048,714 | ) |   | (6,445,669 | ) |
| Adjustment to net debt *(note 11)*                  |   |   |   | --         |   |   | -- |   |   | (103,447 | ) |
| Transfers from government organizations             |   |   |   | --         |   |   | (1,341 | ) |   | (1,163 | ) |
| **Net Debt, End of Year**                           |   |   |   | (6,012,151 | )      |   | (3,848,052 | ) |   | (6,048,714 | ) |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

Government of Saskatchewan - 2008-09 Public Accounts   **51**

----

----

General Revenue Fund 

----

**Statement of Cash Flow**For the Year Ended March 31, 2009*(thousands of dollars)*

|                                                               |   |   |   | 2009       |   |   | 2008     |   |
|--------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|----------|--------|
||
| **Operating Activities**                                           |   |   |   |       |   |   |     |   |
| Surplus                                                            |   |   |   | 2,388,863  |   |   | 641,435  |   |
| Non-cash items included in surplus *(schedule 15)*                 |   |   |   | 94,061     |   |   | 111,831  |   |
| Net change in non-cash operating activities *(schedule 16)*        |   |   |   | (114,537   | )      |   | 228,384  |   |
| **Cash Provided by Operating Activities**                          |   |   |   | 2,368,387  |   |   | 981,650  |   |
| **Capital Activities**                                             |   |   |   |       |   |   |     |   |
| Acquisition of tangible capital assets *(schedule 9)*              |   |   |   | (349,349   | )      |   | (284,657 | )      |
| Proceeds on disposal of tangible capital assets                    |   |   |   | 7,082      |   |   | 6,765    |   |
| **Cash Used for Capital Activities**                               |   |   |   | (342,267   | )      |   | (277,892 | )      |
| **Investing Activities**                                           |   |   |   |       |   |   |     |   |
| Loan advances                                                      |   |   |   | (376,804   | )      |   | (310,898 | )      |
| Loan repayments                                                    |   |   |   | 332,835    |   |   | 96,125   |   |
| Sinking fund contributions for general debt                        |   |   |   | (1,913,015 | )      |   | (96,415  | )      |
| Sinking fund contributions for Crown corporation general debt      |   |   |   | 20,261     |   |   | 28,522   |   |
| Sinking fund redemptions for general debt                          |   |   |   | 81,635     |   |   | --       |   |
| Sinking fund redemptions for Crown corporation general debt        |   |   |   | (32,793    | )      |   | --       |   |
| Equity investment in Crown Investments Corporation of Saskatchewan |   |   |   | 130,000    |   |   | --       |   |
| **Cash Used for Investing Activities***(schedule 17)*              |   |   |   | (1,757,881 | )      |   | (282,666 | )      |
| **Financing Activities**                                           |   |   |   |       |   |   |     |   |
| Proceeds from general debt                                         |   |   |   | 32,005     |   |   | 558,138  |   |
| Repayment of general debt                                          |   |   |   | (754,791   | )      |   | (646,719 | )      |
| Increase in deposits held                                          |   |   |   | 208,967    |   |   | 74,495   |   |
| **Cash Used for Financing Activities**                             |   |   |   | (513,819   | )      |   | (14,086  | )      |
| **(Decrease) Increase in Cash and Temporary Investments**          |   |   |   | (245,580   | )      |   | 407,006  |   |
| Cash and temporary investments, beginning of year                  |   |   |   | 821,475    |   |   | 414,469  |   |
| **Cash and Temporary Investments, End of Year**                    |   |   |   | 575,895    |   |   | 821,475  |   |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

**52**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**As at March 31, 2009 

**1.     Significant Accounting Policies**

**a)     Basis of accounting**

These financial statements are prepared in accordance with generally accepted accounting principles for the public sector, as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants, with the following exceptions: 

| • | transfers to and from the Growth and Financial Security Fund (2008 — transfers to and from the Fiscal Stabilization Fund) are included in the determination of surplus for the year; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | pension liabilities are not recorded in the financial statements. The General Revenue Fund accounts for defined benefit pension obligations on a cash basis. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

**b)     Reporting entity**

The General Revenue Fund is the general fund which receives all revenues unless otherwise specified by law. Spending from the General Revenue Fund is appropriated by the Legislative Assembly. 

Other government entities such as special purpose funds, government business enterprises, and other Crown corporations and agencies report separately in other financial statements. Only financial transactions to or from these other entities are included in the General Revenue Fund. The net expenses/recoveries for revolving funds’ operations are charged to expense. 

Government business enterprises are self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity. 

The Government’s Summary financial statements which include the financial activities of the General Revenue Fund and other government entities are provided separately. 

**c)     Specific accounting policies**

**Financial assets**

Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. 

*Temporary investments* are recorded at the lower of cost or market. 

*Deferred charges* include issue costs and net discounts or premiums incurred on the issue of general debt and related derivative instruments. They are recorded at cost and amortized on a straight-line basis over the remaining life of the debt issue. 

*Loans to Crown corporations* and *Other loans* generally have fixed repayment terms and are interest bearing. Promissory notes issued by Crown corporations are recorded at par; all other loans are recorded at cost. Loans to Crown corporations are presented net of amounts Crown corporations have contributed to sinking funds and net of government business enterprise specific debt. 

*Equity investment in Crown Investments Corporation of Saskatchewan* is an advance to the corporation to form its equity capitalization and is recorded at cost. 

Where there has been a loss in value that is other than a temporary decline, loans and equity investments are written down to recognize the loss. 

**Liabilities**

Liabilities are present obligations to individuals and organizations outside of the General Revenue Fund arising from transactions and events occurring prior to year-end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. They consist of obligations to provide authorized transfers where any eligibility criteria have been met, to repay borrowings, to pay for goods and        services acquired prior to year-end and to deliver goods or services in the future, where payment has been received. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **53**

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**1.    Significant Accounting Policies *(continued)***

*Unearned revenue* consists mainly of revenue for Crown mineral leases and motor vehicle fees that will be earned in a subsequent fiscal year. 

*Public debt* is recorded at par and is comprised of: 

| • | *Government general debt* which is debt issued by the General Revenue Fund to fund government spending; |
|--------|---------------------------------------------------------------------------------------------------------|

| • | *Crown corporation general debt* which is debt issued by the General Revenue Fund and subsequently loaned to a Crown corporation; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| • | *Government business enterprise specific debt* which is debt issued by the General Revenue Fund specifically on behalf of government business enterprises where the government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. Government business enterprises for which the government issues debt specifically are listed in schedule 6. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

On the Statement of Financial Position, public debt is presented net of government business enterprise specific debt. Debt servicing costs on the Statement of Operations are presented net of reimbursements of interest for government business enterprise specific debt. 

Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. The General Revenue Fund is reimbursed by Crown corporations for all sinking fund contributions made on debt incurred on their behalf. Premiums and discounts on long-term investments within these sinking funds are amortized on a constant yield basis. 

Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. 

Premiums, discounts and issue costs incurred on general debt are recorded as deferred charges. Discounts, premiums and commissions on government business enterprise specific debt are netted against reimbursements by these entities. 

*Unamortized foreign exchange gain or loss* includes unrealized foreign exchange gains and losses resulting from conversion of general debt and sinking fund investments held in a foreign currency to the Canadian dollar equivalent at March 31. Unrealized foreign exchange gains and losses are amortized on a straight-line basis over the remaining life of the debt issue. Realized foreign exchange gains and losses resulting from        general debt transactions are included in debt servicing costs. 

*Guaranteed debt* includes guarantees by the Minister of Finance made through specific agreements or legislation to pay all or part of the principal and/or interest on a debt obligation in the event of default by the borrower. Loss provisions on guaranteed debt are recorded as a liability and an expense when it is likely that a loss will occur. The amount of the loss provision represents the best estimate of future payments net        of recoveries. 

**Non-financial assets**

Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed in the normal course of operations and are not for sale in the normal course of operations. 

*Inventories held for consumption* are recorded at cost and are expensed as they are consumed. 

*Tangible capital assets* are recorded at cost which includes all amounts directly attributable to the acquisition, construction, development or betterment of the asset but does not include interest. Tangible capital assets are generally amortized on a straight-line basis over the estimated useful life of each asset. 

**Revenue**

Revenues are recorded on the accrual basis. For corporate and individual income taxes, cash received from the federal government is used as the basis for estimating the tax revenue. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met. 

**Expense**

Expenses are recorded on the accrual basis, except for defined benefit pension plan costs which are recorded on the cash basis. Government transfers are recognized as expenses in the period during which the transfer is authorized and any eligibility criteria are met. 

----

**54**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**1.    Significant Accounting Policies *(continued)***

**d)    Measurement uncertainty**

Measurement uncertainty is uncertainty in the determination of the amount at which an item is recognized or disclosed in financial statements. Such uncertainty exists when there is a variance between the recognized or disclosed amount and another reasonably possible amount. 

Measurement uncertainty that may be material to these financial statements exists: 

| • | in corporate and individual income tax revenue totalling $2,436.2 million (2008 — $2,611.9 million) because final tax assessments may differ from initial estimates on which cash payments are based; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in oil and natural gas non-renewable resource revenue totalling $1,742.0 million (2008 — $1,380.0 million) because of price and production sensitivities in the royalty revenue structures; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in potash non-renewable resource revenue totaling $1,364.5 million (2008 — $432.8 million) because actual operating profits may differ from initial estimates; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in the Canada Health Transfer and Canada Social Transfer revenue totalling $1,161.8 million (2008 — $1,064.7 million) because of changes in the economic and demographic conditions in the Province and the country; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in the disclosure of liabilities for defined benefit pension plans of $5,442.3 million (2008 — $5,087.8 million) because actual experience may differ from actuarial estimations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

While best estimates are used to report items, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require a material change in the amounts recognized or disclosed. 

**2.    Temporary Investments**

The temporary investments are recorded at $895.7 million (2008 — $666.4 million), consist of investment grade money market securities and are generally for less than 30 days. Due to the short-term nature, market value approximates cost. 

**3.    Risk Management of Public Debt**

Funds are borrowed in both domestic and foreign capital markets by issuing Province of Saskatchewan securities. This borrowing activity finances Government operations and the activities of Crown corporations. These transactions result in exposure to four types of risk: interest rate risk, foreign exchange rate risk, credit risk and liquidity risk. 

To manage these risks, a preference for fixed rate Canadian dollar denominated debt is maintained. Where market conditions dictate that other forms of debt are more attractive, opportunities are identified to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract, the value of which is based on the value of another asset or index. 

*Interest rate risk* is the risk that debt servicing costs will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominantly fixed rates of interest rather than at floating rates of interest. 

Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. Opportunities are sought to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. There are interest rate swaps on a notional value of debt of $66.0 million (2008 — $66.0 million). At March 31, 2009, 88.0 per        cent (2008 — 88.8 per cent) of the gross debt effectively carried a rate of interest that was fixed for greater than a one year period. 

Gross debt includes floating rate debt of $1,330.4 million (2008 — $1,297.0 million). A one percentage point increase in interest rates would decrease the surplus by $12.9 million in 2009-10. 

*Foreign exchange rate risk* is the risk that debt servicing costs will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, opportunities are sought to effectively convert it into Canadian dollar debt through the use of a cross        currency swap. At March 31, 2009, 96.9 per cent (2008 — 97.6 per cent) of the gross debt is effectively denominated in Canadian dollars. 

The following foreign-denominated items have been hedged to Canadian dollars using cross currency swaps: 

| • | debentures totalling 1,225.0 million U.S. dollars (2008 — 1,225.0 million) fully hedged to $1,619.3 million Canadian (2008 — $1,619.3 million); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | debentures totalling 300.0 million Swiss francs (2008 — 300.0 million) fully hedged to $274.7 million Canadian (2008 — $274.7 million); and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **55**

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**3.    Risk Management of Public Debt *(continued)***

| • | interest payments on debentures of 275.0 million U.S. dollars (2008 - 275.0 million) hedged to Canadian dollars at an exchange rate of 1.2325 (2008 - 1.2325). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

In total, there are cross currency swaps on a notional value of debt of $2,507.5 million (2008 — $2,507.5 million). The effectiveness of these hedges is assessed on an ongoing basis by monitoring the credit ratings of the counterparties to the hedges. 

*Credit risk* is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties that have good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31, 2009, 100 per cent (2008 — 100 per cent) of        counterparties held a Standard and Poor’s credit rating of A or higher. 

*Liquidity risk* is a risk that financial commitments will not be met over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity. 

**4.    Retirement Benefits**

The Government sponsors several defined benefit pension plans and a defined contribution pension plan. 

Pension fund assets of government sponsored defined benefit and defined contribution pension plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans. 

**Defined benefit plans**

Defined benefit plans provide benefits based on length of service and pensionable earnings. A typical defined benefit plan provides pensions equal to 2.0 per cent of a member’s average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their plan. Pensions and contribution rates are integrated with the Canada Pension        Plan. 

The two main plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan (STC), Anti-TB League Employees Superannuation Plan (ATB) and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. Obligations for allowances        payable to members of the former Members of the Legislative Assembly Superannuation Fund (MLA) are part of the General Revenue Fund. 

Actuarial valuations are performed at least triennially. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates and short-term forecasts. Estimates vary        based on the individual plan. 

The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. 

The Government is required to match member current service contributions for all plans except the PSSP and Judges. Separate pension funds are maintained for all plans except the PSSP and the MLA. The PSSP member contributions are deposited into the General Revenue Fund. All pension obligations arising under the PSSP and the MLA are paid from the General Revenue Fund. 

----

**56**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**4.    Retirement Benefits (continued)**

Information on the defined benefit plans is as follows: 

|                                                                              |   |       |   |       |   |
|-----------------------------------------------------------------------------------|--------|------------|--------|------------|--------|
||
||
| Plan status                                                                       |   | closed     |   | closed     |   | closed | 1 | n/a |   | n/a |   |
| Member contribution rate *(percentage of salary)*                                 |   | 7.85       |   | 7.00-9.00  | 2      | 5.00-9.00 | 2 | n/a |   | n/a |   |
| Number of active members                                                          |   | 2,255      |   | 1,007      |   | 59 |   | 3,321 |   | 3,879 |   |
| Average age of active members *(years)*                                           |   | 54.6       |   | 55.8       |   | 57.3 |   | 55.0 |   | 54.9 |   |
| Number of former members entitled to deferred                                     |   |       |   |       |   |   |   |   |   |   |   |
|     pension benefits                                          |   | 4,780      |   | 104        |   | 12 |   | 4,896 |   | 4,993 |   |
| Number of superannuates and surviving spouses                                     |   | 11,109     |   | 5,715      |   | 2,330 |   | 19,154 |   | 18,946 |   |
| Actuarial valuation date                                                          |   | June 30/07 |   | Dec. 31/08 |   | Various |   | n/a |   | n/a |   |
| Long-term assumptions used                                                        |   |       |   |       |   |   |   |   |   |   |   |
|     Rate of compensation increase *(percentage)*              |   | 3.50       |   | 3.50       |   | 3.50 |   | n/a |   | n/a |   |
|     Expected rate of return on plan assets *(percentage)*     |   | 6.90       |   | n/a        |   | 5.75-6.00 |   | n/a |   | n/a |   |
|     Discount rate *(percentage)*                              |   | 5.00       |   | 5.25       |   | 4.40-5.40 |   | n/a |   | n/a |   |
|     Inflation rate *(percentage)*                             |   | 2.50       |   | 2.50       |   | 2.50 |   | n/a |   | n/a |   |
|     Expected average remaining service life *(years)*         |   | 3.7        |   | 1.5        |   | 1.5-8.0 |   | n/a |   | n/a |   |
|     Post-retirement index *(percentage of annual increase in* |   |       |   |       |   |   |   |   |   |   |   |
|         *Consumer Price Index)*           |   | 80         |   | 70         |   | 70-75 |   | n/a |   | n/a |   |

| 1 | Judges is open to new membership; all other plans are closed. |
|---|---------------------------------------------------------------|

| 2 | Contribution rate varies based on age upon joining the plan. |
|---|--------------------------------------------------------------|

----

Based on the latest actuarial valuations, extrapolated to March 31, 2009, the present value of accrued pension benefits and the market related value of pension fund assets are shown in the table below: 

|                                      |    |      |   |      |   |
|-------------------------------------------|--------------|-----------|--------|-----------|--------|
||
||
| Accrued benefit obligation,               |         |      |   |      |   |   |   |   |   |   |   |
|     beginning of year |         | 4,981,380 |   | 1,909,437 |   | 323,970 |   | 7,214,787 |   | 7,010,426 |   |
| Current period benefit cost               |         | 46,836    |   | 14,749    |   | 4,462 |   | 66,047 |   | >74,751 |   |
| Plan amendment                            |         | --        |   | --        |   | 2,339 |   | 2,339 |   | -- |   |
| Interest cost                             |         | 271,638   |   | 88,391    |   | 14,653 |   | 374,682 |   | 397,103 |   |
| Actuarial losses (gains)                  |         | 74,190    |   | (44,713   | )      | (3,358 | ) | 26,119 |   | 161,120 |   |
| Benefit payments                          |         | (308,245  | )      | (111,883  | )      | (21,914 | ) | (442,042 | ) | (428,613 | ) |
| Accrued Benefit Obligation, End of Year   |         | 5,065,799 |   | 1,855,981 |   | 320,152 |   | 7,241,932 |   | 7,214,787 |   |
| Plan assets, beginning of year            |         | 1,429,723 |   | --        |   | 206,934 |   | 1,636,657 |   | 1,587,597 |   |
| Employer contributions                    |         | 58,945    |   | 108,134   |   | 5,765 |   | 172,844 |   | 141,831 |   |
| Employee contributions                    |         | 13,064    |   | 3,749     |   | 496 |   | 17,309 |   | 19,061 |   |
| Return on plan assets                     |         | 90,851    |   | --        |   | 8,203 |   | 99,054 |   | 128,704 |   |
| Actuarial gains (losses)                  |         | 5,069     |   | --        |   | (2,001 | ) | 3,068 |   | 188,077 |   |
| Benefit payments                          |         | (308,245  | )      | (111,883  | )      | (21,914 | ) | (442,042 | ) | (428,613 | ) |
| Plan Assets, End of Year 2                |         | 1,289,407 |   | --        |   | 197,483 |   | 1,486,890 |   | 1,636,657 |   |
|                                      |         | 3,776,392 |   | 1,855,981 |   | 122,669 |   | 5,755,042 |   | 5,578,130 |   |
| Unamortized estimation adjustments 3      |         | (276,334  | )      | (28,913   | )      | (7,480 | ) | (312,727 | ) | (490,323 | ) |
| Total Pension Liabilities 4               |         | 3,500,058 |   | 1,827,068 |   | 115,189 |   | 5,442,315 |   | 5,087,807 |   |

| 1 | The TSP accrued benefit obligation includes a liability of $25.8 million (2008 — $29.6 million) relating to the TSP disability provision. The TSP had a negative actual rate of return on plan assets of 12.9 per cent (2008 – positive 0.7 per cent). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | At March 31, 2009, the market value of plan investments was $1,328.6 million (2008 — $1,750.7 million). Of this amount 42.5 per cent (2008 — 42.6 per cent) was invested in fixed income securities and 42.2 per cent (2008 — 45.6 per cent) in equity investments. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Unamortized estimation adjustments are amortized against the net obligation over periods ranging from 3.7 to 5.7 years for the TSP, from 1.5 to 7.7 years for the PSSP, and from 1.5 to 10.0 years for the other plans. These represent the expected average remaining service life of active plan members at the time the estimation adjustments arose. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Changes in assumptions can result in significantly higher or lower estimates of pension liabilities. A one percentage point decrease in the discount rate would result in a $603.1 million and $209.4 million increase in the pension liabilities for the TSP and the PSSP respectively, and a one percentage point increase would result in a $497.5 million and $174.9 million decrease in the pension liabilities for the                TSP and the PSSP respectively. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **57**

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**4.     Retirement Benefits *(continued)***

**Defined contribution plans**

Defined contribution plans provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. 

The Government sponsors the Public Employees Pension Plan (PEPP), a multi-employer defined contribution plan. Employers are required to provide contributions at specific rates for employee current service. The General Revenue Fund has fully funded its share of contributions. The General Revenue Fund also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP), sponsored by the Saskatchewan Teachers’ Federation.        

Information on the defined contribution plans to which the General Revenue Fund contributes is as follows: 

|                                             |    |      |   |        |
|-------------------------------------------------------|--------------|-----------|--------|--------|
||
||
| Plan status                                           |         | open      |   | n/a    |   | n/a |   | n/a |   |
| Member contribution rate *(percentage of salary)*     |         | 5.00-9.00 | 2      | n/a    |   | n/a |   | n/a |   |
| Government contribution rate *(percentage of salary)* |         | 6.00-9.00 | 2      | n/a    |   | n/a |   | n/a |   |
| Number of active members, all employers               |         | 31,532    |   | n/a    |   | 31,532 |   | 31,263 |   |
| General Revenue Fund participation                    |         |      |   |   |   |   |   |   |   |
| Number of active members                              |         | 16,542    |   | n/a    |   | 16,542 |   | 16,197 |   |
| Member contributions *(thousands of dollars)*         |         | 47,756    |   | n/a    |   | 47,756 |   | 47,486 |   |
| Government contributions *(thousands of dollars)*     |         | 51,623    |   | 46,150 |   | 97,773 |   | 92,698 |  |

| 1 | The STRP is a contributory defined benefit pension plan. The Government contributes an amount which is set through provincial negotiations. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Contribution rate varies based on employee group. |
|---|---------------------------------------------------|

----

**Pension expense**

Pensions are accounted for on a cash basis. The pension liabilities are not recorded in the financial statements. 

|                       |   |    |   |    |        |
|----------------------------|--------|---------|--------|---------|--------|
||
| Defined benefit plans      |   | 172,844 |   | 141,831 |   |
| Defined contribution plans |   | 97,773  |   | 92,698  |   |
| Total Pension Expense      |   | 270,617 |   | 234,529 |   |

**5.    Contingencies**

**Guaranteed debt**

The Minister of Finance has guaranteed the debt of others of $20.3 million (2008 — $25.2 million). Schedule 8 provides a listing of guaranteed debt. 

**Lawsuits**

Up to $36.2 million may be paid depending on the outcome of lawsuits in progress. 

**Crop insurance liability**

The Saskatchewan Crop Insurance Corporation administers the federal/provincial Crop Insurance Program. Premiums for the program are paid by the General Revenue Fund, the federal government and producers. A portion of the premiums are required to be paid to reinsurance funds established by the Province and the federal government. In certain circumstances, the reinsurance funds pay benefits to the Corporation. 

In any year, where crop insurance indemnities exceed net premiums and any crop insurance fund balance, the shortfall is derived from one or both of the Crop Reinsurance Fund of Saskatchewan and the Crop Reinsurance Fund of Canada for Saskatchewan. 

----

**58**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**5.     Contingencies *(continued)***

At March 31, 2009 the Crop Reinsurance Fund of Saskatchewan had a deficiency of $3.3 million (2008 — $72.3 million). Crop insurance premiums are actuarially set to cover indemnities over the long-term. In the event that the deficiency in the Saskatchewan reinsurance fund cannot be recovered from future premiums, the General Revenue Fund is required to pay the deficiency. 

**6.    Contractual Obligations**

Significant contractual obligations include: 

| • | contracts for highway improvement, $147.6 million over two years; |
|--------|-------------------------------------------------------------------|

| • | capital grant projects, over the next 15 years, $39.8 million; |
|--------|----------------------------------------------------------------|

| • | construction contracts, $44.9 million over five years; |
|--------|--------------------------------------------------------|

| • | aerial fleet renewal, for fire suppression, $31.4 million over two years; |
|--------|---------------------------------------------------------------------------|

| • | Building Communities Program agreements, $31.4 million over three years; |
|--------|--------------------------------------------------------------------------|

| • | computer service agreements, $59.8 million over five years; |
|--------|-------------------------------------------------------------|

| • | vehicle and machinery purchases, $7.6 million; |
|--------|------------------------------------------------|

| • | treaty land entitlement agreements valued at approximately $13.6 million over five years; rural municipality and school division tax loss compensation of approximately $13.0 million as land achieves reserve status over the course of the agreements; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | research and development projects for agriculture technology and opportunities in the agri-food industry, $28.5 million over five years; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| • | Saskatchewan Association of Rehabilitation Centres, for beverage container collection and recycling, $21.7 million; |
|--------|---------------------------------------------------------------------------------------------------------------------|

| • | projects to expand innovation and enhance the competitive ability of the Saskatchewan economy, $9.4 million over four years; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| • | Go Green environmental projects, $12.7 million over five years; and |
|--------|---------------------------------------------------------------------|

| • | operating and capital lease obligations as follows: |
|--------|-----------------------------------------------------|

|   |   |   |                          |   |   |   |    |   |   |    |   |
|--------|--------|--------|-------------------------------|--------|--------|--------|---------|--------|--------|---------|--------|
||
|   |   |   | Future minimum lease payments |   |   |   |    |   |   |    |   |
|   |   |   | 2009-10                       |   |   |   | 36,621  |   |   | 12,009  |   |
|   |   |   | 2010-11                       |   |   |   | 32,719  |   |   | 11,446  |   |
|   |   |   | 2011-12                       |   |   |   | 28,549  |   |   | 9,646   |   |
|   |   |   | 2012-13                       |   |   |   | 24,511  |   |   | 6,521   |   |
|   |   |   | 2013-14                       |   |   |   | 20,870  |   |   | 1,801   |   |
|   |   |   | Thereafter                    |   |   |   | 65,070  |   |   | 6,124   |   |
|   |   |   |                          |   |   |   | 208,340 |   |   | 47,547  |   |
|   |   |   | Interest and executory costs  |   |   |   | --      |   |   | (20,429 | )      |
|   |   |   | Total Lease Obligations       |   |   |   | 208,340 |   |   | 27,118  |   |

**7.    Related Party Transactions**

Included in these financial statements are transactions with various Saskatchewan Crown corporations, agencies, boards, and commissions related to the General Revenue Fund by virtue of common control by the Government of Saskatchewan. 

Transactions include transfers to related parties of $3,735.1 million (2008 — $2,980.9 million). 

Routine operating transactions with related parties are recorded at the rates charged by those organizations and are settled on normal trade terms. These transactions include: 

| • | payments to Saskatchewan Telecommunications Holding Corporation of approximately $26.2 million (2008 — $27.6 million); and, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| • | taxation and non-renewable resource revenue received from related parties during 2008-09 of approximately $88.5 million (2007-08 — $83.3 million). In addition, Saskatchewan Provincial Sales Tax and Fuel Tax are received from related parties on all taxable purchases. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Amounts due to or from related parties are described separately in these financial statements. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **59**

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**8.    Trust Funds**

Trust assets are administered but not owned by the Government and the Government has no equity in the funds. 

Trust fund assets held and administered by the General Revenue Fund are as follows: 

|                                        |   |   |   |      |   |   |      |   |
|---------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|
||
| Pension plans                               |   |   |   | 6,781,544 |   |   | 7,993,766 |   |
| Public Guardian and Trustee of Saskatchewan |   |   |   | 140,575   |   |   | 154,451   |   |
| Other                                       |   |   |   | 45,917    |   |   | 37,338    |   |
| Total Trust Fund Assets 1                   |   |   |   | 6,968,036 |   |   | 8,185,555 |   |
|                                        |   |   |   |      |   |   |      |   |

| 1 | Amounts are based on the latest financial statements of the funds closest to March 31, 2009, where available. |
|---|---------------------------------------------------------------------------------------------------------------|

----

**9.    Debt Retirement Fund**

This fund was established pursuant to *The Growth and Financial Security Act* and is an accounting of the surpluses of the General Revenue Fund commencing April 1, 2008. 

|                                    |   |   |   |    |   |   |      |   |
|-----------------------------------------|--------|--------|--------|---------|--------|--------|-----------|--------|
||
| Debt Retirement Fund, beginning of year |   |   |   | --      |   |   | --        |   |
| Surplus for the year                    |   |   |   | 250,000 |   |   | 2,388,863 |   |
| Debt Retirement Fund, End of Year       |   |   |   | 250,000 |   |   | 2,388,863 |   |

**10.    Change in Accounting Policy**

During 2008-09, the Government made a change in accounting policy to comply with the recommendations of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants for long-term debt. On the Statement of Financial Position, public debt and loans to Crown corporations are now presented net of government business enterprise specific debt. Additionally, reimbursements of interest from Crown corporation general        debt are no longer netted against debt servicing costs. The Government has retroactively restated comparative figures for this change in accounting policy. The effect of this restatement in the current and prior periods is: 

| • | a decrease in loans to Crown corporations and a decrease in public debt of $3,036.0 million (2008 — $2,933.2 million); and |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| • | an increase in interest revenue and an increase in debt servicing costs of $26.0 million (2008 — $18.5 million). |
|--------|------------------------------------------------------------------------------------------------------------------------|

**11.    Adjustment to Net Debt**

During 2008-09, it was determined that agricultural land held for resale, previously presented as a financial asset, is more appropriately classified as tangible capital assets because this land is not expected to be sold within the next year. This change has been applied retroactively with restatement. As a result, net debt at April 1, 2007 has increased by $103.4 million. The effect of this restatement is a $86.3 million (2008        — $99.0 million) decrease in agriculture land held for resale and a corresponding increase in tangible capital assets. 

**12.    Budget Figures**

Certain of the 2009 budget revenue figures have been reclassified to conform with the presentation of actual figures. The reclassification is a result of: 

| • | corporation capital tax being split into two components. Resource surcharge has been moved to non-renewable resources and the remaining component of corporation capital tax has been included with other taxes; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | liquor consumption tax being moved from sales tax to other taxes. |
|--------|-------------------------------------------------------------------|

----

**60**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

**Notes to the Financial Statements**

**12.     Budget Figures *(continued)***

The information below reconciles the 2009 budget presented in the Statement of Operations and schedule 10 to the 2008-09 Estimates approved by the Legislative Assembly: 

|                                        |   |   |   |      |
|---------------------------------------------|--------|--------|--------|-----------|
||
||
| **Taxation**                                |   |   |   |      |   |   |   |   |   |   |   |
|     Corporation capital |   |   |   | 444,100   |   |   | (444,100 | ) |   | -- |   |
|     Provincial sales    |   |   |   | 979,800   |   |   | (61,800 | ) |   | 918,000 |   |
|     Other               |   |   |   | 109,500   |   |   | 139,700 |   |   | 249,200 |   |
| Total Taxation                              |   |   |   | 4,679,000 |   |   | (366,200 | ) |   | 4,312,800 |   |
| **Non-renewable Resources**                 |   |   |   |      |   |   |   |   |   |   |   |
|     Resource surcharge  |   |   |   | --        |   |   | 366,200 |   |   | 366,200 |   |
| Total Non-renewable Resources               |   |   |   | 1,906,900 |   |   | 366,200 |   |   | 2,273,100 |   |

**13.    Comparative Figures**

Certain of the 2008 figures have been reclassified to conform with the current year presentation. With regard to expenses, the figures are reported on the same basis as the Estimates for the prior year. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **61**

----

----

General Revenue Fund 

----

| **Accounts Receivable**As at March 31, 2009*(thousands of dollars)* |   |   |   |    |   | **Schedule 1** |    |
|---------------------------------------------------------------------|--------|--------|--------|---------|--------|----------------|---------|
||
| Taxation                                                            |   |   |   | 186,478 |   |           | 191,757 |   |
| Non-renewable resources                                             |   |   |   | 405,862 |   |           | 230,618 |   |
| Transfers from Government entities                                  |   |   |   | 135,155 |   |           | 141,252 |   |
| Other own-source revenue                                            |   |   |   | 90,096  |   |           | 78,008  |   |
| Transfers from the federal government                               |   |   |   | 95,477  |   |           | 91,267  |   |
| Other                                                               |   |   |   | 59,409  |   |           | 62,641  |   |
|                                                                |   |   |   | 972,477 |   |           | 795,543 |   |
| Provision for loss                                                  |   |   |   | (57,088 | )      |           | (59,166 | ) |
| **Total Accounts Receivable 1**                                     |   |   |   | 915,389 |   |           | 736,377 |   |

| 1 | Accounts receivable include $147.4 million due from related parties (2008 — $146.0 million). |
|---|----------------------------------------------------------------------------------------------------|

| **Loans to Crown Corporations**As at March 31, 2009*(thousands of dollars)* |   |   |   |                                     |       |                                                           |    |   |   |    |   | Schedule 2 |    |
|-----------------------------------------------------------------------------|--------|--------|--------|------------------------------------------|------------|----------------------------------------------------------------|---------|--------|--------|---------|--------|------------|---------|
||
| **Promissory Notes**                                                        |   |   |   |                                     |       |                                                           |    |   |   |    |   |       |    |   |
| Municipal Financing Corporation of Saskatchewan                             |   |   |   |                                     |       |                                                           |    |   |   | 1,062   |   |       | --      |   |
| Saskatchewan Opportunities Corporation                                      |   |   |   |                                     |       |                                                           |    |   |   | 13,859  |   |       | 31,844  |   |
| Saskatchewan Power Corporation                                              |   |   |   |                                     |       |                                                           |    |   |   | 40,000  |   |       | 165,000 |   |
| Saskatchewan Telecommunications Holding Corporation                         |   |   |   |                                     |       |                                                           |    |   |   | 28,900  |   |       | --      |   |
| Saskatchewan Water Corporation                                              |   |   |   |                                     |       |                                                           |    |   |   | 17,876  |   |       | 19,358  |   |
| SaskEnergy Incorporated                                                     |   |   |   |                                     |       |                                                           |    |   |   | 52,500  |   |       | 100,500 |   |
| **Total Promissory Notes**                                                  |   |   |   |                                     |       |                                                           |    |   |   | 154,197 |   |       | 316,702 |   |
|                                                                        |   |   |   |                                     |       |                                                           |    |   |   |    |   |       |    |   |
|                                                                        |   |   |   | **Principal                Outstanding** | ** ** | **Sinking                    Fund Equity***(schedule  7)* |    |   |   |    |   |       |         |
| **Long-term Loans**                                                         |   |   |   |                                     |       |                                                           |    |   |   |    |   |       |    |   |
| Information Services Corporation of Saskatchewan                            |   |   |   | 13,547                                   |       |                                                           | --      |   |   | 13,547  |   |       | 13,547  |   |
| Investment Saskatchewan Inc.                                                |   |   |   | --                                       |       |                                                           | --      |   |   | --      |   |       | 3,919   |   |
| Saskatchewan Crop Insurance Corporation                                     |   |   |   | 50,000                                   |       |                                                           | (47,947 | )      |   | 2,053   |   |       | 72,158  |   |
| Saskatchewan Housing Corporation                                            |   |   |   | 52,004                                   |       |                                                           | (18,792 | )      |   | 33,212  |   |       | 34,075  |   |
| Saskatchewan Opportunities Corporation                                      |   |   |   | 23,684                                   |       |                                                           | --      |   |   | 23,684  |   |       | --      |   |
| Saskatchewan Power Corporation                                              |   |   |   | 100,000                                  |       |                                                           | --      |   |   | 100,000 |   |       | --      |   |
| Saskatchewan Water Corporation                                              |   |   |   | 25,707                                   |       |                                                           | (2,171  | )      |   | 23,536  |   |       | 20,760  |   |
| SaskEnergy Incorporated                                                     |   |   |   | 170,000                                  |       |                                                           | --      |   |   | 170,000 |   |       | --      |   |
| **Total Long-term Loans**                                                   |   |   |   | 434,942                                  |       |                                                           | (68,910 | )      |   | 366,032 |   |       | 144,459 |   |
| **Total Loans to Crown Corporations 1**                                     |   |   |   |                                     |       |                                                           |    |   |   | 520,229 |   |       | 461,161 |   |
|                                                                        |   |   |   |                                     |       |                                                           |    |   |   |    |   |       |    |   |

| 1 | Loans to Crown corporations are presented net of government business enterprise specific debt of $3,036.0 million (2008 — $2,933.2 million) (note 10) (schedule 6). |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**62**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Other Loans**As at March 31, 2009*(thousands of dollars)* |   |   |   |   |   |   |    |   |   |   |   | Schedule 3 |    |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|------------|---------|
||
| **Advanced Education, Employment and Labour**               |   |   |   |   |   |   |    |   |   |   |   |       |    |   |
| Saskatchewan Student Aid Fund                               |   |   |   |   |   |   | 94,904  |   |   |   |   |       | 101,624 |   |
| **Agriculture**                                             |   |   |   |   |   |   |    |   |   |   |   |       |    |   |
| Agricultural Credit Corporation of Saskatchewan             |   |   |   |   |   |   | 7,750   |   |   |   |   |       | 7,750   |   |
| Short-term hog loans                                        |   |   |   | 16,280 |   |   |    |   |   | 14,638 |   |       |    |   |
|     Provision for loss                  |   |   |   | (8,734 | )      |   | 7,546   |   |   | (8,103 | )      |       | 6,535   |   |
| **First Nations and Métis Relations**                |   |   |   |   |   |   |    |   |   |   |   |       |    |   |
| Economic development loans                                  |   |   |   | 3,393  |   |   |    |   |   | 4,022  |   |       |    |   |
|     Provision for loss                  |   |   |   | (1,763 | )      |   | 1,630   |   |   | (1,622 | )      |       | 2,400   |   |
| **Enterprise and Innovation**                               |   |   |   |   |   |   |    |   |   |   |   |       |    |   |
| Economic development loans                                  |   |   |   | 10,714 |   |   |    |   |   | 11,031 |   |       |    |   |
|     Provision for loss                  |   |   |   | (2,861 | )      |   | 7,853   |   |   | (2,945 | )      |       | 8,086   |   |
| **Other**                                                   |   |   |   |   |   |   | 2,771   |   |   |   |   |       | 3,240   |   |
| **Total Other Loans**                                       |   |   |   |   |   |   | 122,454 |   |   |   |   |       | 129,635 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts   **63**

----

----

General Revenue Fund 

----

| **Accounts Payable and Accrued Liabilities**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   | **Schedule 4** |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|----------------|--------|
||
|                                                                                     |   |   |   |      |   |   |           |   |
| Personal services                                                                        |   |   |   | 67,492    |   |   | 66,725         |   |
| Transfers                                                                                |   |   |   |      |   |   |           |   |
|     Capital                                                          |   |   |   | 323,721   |   |   | 117,325        |   |
|     Operating                                                        |   |   |   | 358,615   |   |   | 200,402        |   |
| Goods and services                                                                       |   |   |   | 116,372   |   |   | 139,016        |   |
| Accrued interest                                                                         |   |   |   | 131,646   |   |   | 137,500        |   |
| Transfers to the federal government                                                      |   |   |   | 163,089   |   |   | 228,533        |   |
| Equalization and Canada Health and Social Transfer repayable to the federal              |   |   |   |      |   |   |           |   |
|     government                                                       |   |   |   | 304,276   |   |   | 341,690        |   |
| Tangible capital assets                                                                  |   |   |   | 50,871    |   |   | 33,225         |   |
| Other                                                                                    |   |   |   | 205,434   |   |   | 389,033        |   |
| **Total Accounts Payable and Accrued Liabilities 1**                                     |   |   |   | 1,721,516 |   |   | 1,653,449      |   |

| 1 | Includes $222.9 million payable to related parties (2008 — $400.8 million) and $475.1 million payable to the federal government (2008 — $573.5 million). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Deposits Held**As at March 31, 2009*(thousands of dollars)*  |   |   |   |    |   |   | **Schedule 5** |   |
|----------------------------------------------------------------|--------|--------|--------|---------|--------|--------|----------------|--------|
||
| **Deposits held on behalf of government entities and others**  |   |   |   |    |   |   |           |   |
| Cattle Marketing Deductions Fund                               |   |   |   | 6,285   |   |   | 6,001          |   |
| Enterprise Saskatchewan                                        |   |   |   | 14,515  |   |   | --             |   |
| Extended Health Care Plans                                     |   |   |   | 14,647  |   |   | 1,872          |   |
| Liquor and Gaming Authority                                    |   |   |   | 45,330  |   |   | 48,328         |   |
| New Crops Insurance Program                                    |   |   |   | 6,507   |   |   | 6,342          |   |
| Public Employees' Dental Plan                                  |   |   |   | 24,587  |   |   | 2,186          |   |
| Public Employees' Pension Plan                                 |   |   |   | 6,835   |   |   | 7,057          |   |
| Queen's Bench Court Accounts                                   |   |   |   | 8,517   |   |   | 7,589          |   |
| Saskatchewan Agricultural Stabilization Fund                   |   |   |   | 12,186  |   |   | 6,499          |   |
| Saskatchewan Apprenticeship and Trade Certification Commission |   |   |   | 5,220   |   |   | 3,088          |   |
| Saskatchewan Crop Insurance Corporation                        |   |   |   | 328,299 |   |   | 155,452        |   |
| Saskatchewan Health Information Network                        |   |   |   | 13,894  |   |   | 21,905         |   |
| Saskatchewan Student Aid Fund                                  |   |   |   | 32,188  |   |   | 41,035         |   |
| School Division Tax Loss Compensation Fund                     |   |   |   | 6,974   |   |   | 6,274          |   |
| Teachers' Superannuation Commission                            |   |   |   | 4,002   |   |   | 5,045          |   |
| Transportation Partnerships Fund                               |   |   |   | 6,785   |   |   | 9,917          |   |
| Other                                                          |   |   |   | 35,507  |   |   | 28,827         |   |
| **Conditional receipts**                                       |   |   |   | 22,077  |   |   | 27,971         |   |
| **Total Deposits Held**                                        |   |   |   | 594,355 |   |   | 385,388        |   |

----

**64**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Public Debt**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      | **Schedule 6** |   |
|-------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|----------------|--------|
||
||
|                                                        |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |           |   |   |   |
| **Government**                                              |   |   |   | 4,145,286 |   |   | --        |   |   | 4,145,286 |   |   | 6,824,323 |   |   | --        |           |   | 6,824,323 |   |
| **Crown Corporation**                                       |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |           |   |   |   |
| Information Services Corporation of                         |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |           |   |   |   |
|     Saskatchewan                        |   |   |   | 13,547    |   |   | --        |   |   | 13,547    |   |   | 13,547    |   |   | --        |           |   | 13,547 |   |
| Investment Saskatchewan Inc.                                |   |   |   | --        |   |   | --        |   |   | --        |   |   | 3,919     |   |   | --        |           |   | 3,919 |   |
| Municipal Financing Corporation of                          |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |           |   |   |   |
|     Saskatchewan                        |   |   |   | 1,062     |   |   | 37,266    |   |   | 38,328    |   |   | --        |   |   | 25,764    |           |   | 25,764 |   |
| Saskatchewan Crop Insurance Corporation                     |   |   |   | 2,053     |   |   | --        |   |   | 2,053     |   |   | 72,158    |   |   | --        |           |   | 72,158 |   |
| Saskatchewan Housing Corporation                            |   |   |   | 33,212    |   |   | --        |   |   | 33,212    |   |   | 34,075    |   |   | --        |           |   | 34,075 |   |
| Saskatchewan Opportunities Corporation                      |   |   |   | 37,543    |   |   | --        |   |   | 37,543    |   |   | 31,844    |   |   | --        |           |   | 31,844 |   |
| Saskatchewan Power Corporation                              |   |   |   | 140,000   |   |   | 2,157,215 |   |   | 2,297,215 |   |   | 165,000   |   |   | 2,008,311 |           |   | 2,173,311 |   |
| Saskatchewan Telecommunications                             |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |           |   |   |   |
|     Holding Corporation                 |   |   |   | 28,900    |   |   | 262,468   |   |   | 291,368   |   |   | --        |   |   | 289,698   |           |   | 289,698 |   |
| Saskatchewan Water Corporation                              |   |   |   | 41,412    |   |   | --        |   |   | 41,412    |   |   | 40,118    |   |   | --        |           |   | 40,118 |   |
| SaskEnergy Incorporated                                     |   |   |   | 222,500   |   |   | 579,092   |   |   | 801,592   |   |   | 100,500   |   |   | 609,394   |           |   | 709,894 |   |
| **Total Crown Corporation2**                                |   |   |   | 520,229   |   |   | 3,036,041 |   |   | 3,556,270 |   |   | 461,161   |   |   | 2,933,167 |           |   | 3,394,328 |   |
| **Public Debt 3 4**                                         |   |   |   | 4,665,515 |   |   | 3,036,041 |   |   | 7,701,556 |   |   | 7,285,484 |   |   | 2,933,167 |           |   | 10,218,651 |   |

| 1 | General debt and government business enterprise specific debt are net of sinking funds. |
|---|-----------------------------------------------------------------------------------------|

| 2 | On the Statement of Financial Position, public debt is presented net of government business enterprise specific debt of $3,036.0 million (2008 — $2,933.2 million) (note 10). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Public debt repayable in U.S. dollars of 64.2 million (2008 — 78.6 million) has been restated to $80.9 million Canadian (2008 — $80.8 million) at the exchange rate in effect at March 31, 2009 of 1.2602 (2008 — 1.0279).                Public debt is comprised of gross debt and sinking funds as follows: |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                |   |   |   |       |   |
|--------|--------|--------|-----------------------------------------------------|--------|--------|--------|------------|--------|
||
||
|   |   |   |                                                |   |   |   |       |   |   |   |   |   |   |   |
|   |   |   | **Government**                                      |   |   |   | 7,109,217  |   |   | (2,963,931 | ) |   | 4,145,286 |   |
|   |   |   | **Crown Corporation**                               |   |   |   |       |   |   |   |   |   |   |   |
|   |   |   | Information Services Corporation of Saskatchewan    |   |   |   | 13,547     |   |   | -- |   |   | 13,547 |   |
|   |   |   | Investment Saskatchewan Inc.                        |   |   |   | --         |   |   | -- |   |   | -- |   |
|   |   |   | Municipal Financing Corporation of Saskatchewan     |   |   |   | 39,092     |   |   | (764 | ) |   | 38,328 |   |
|   |   |   | Saskatchewan Crop Insurance Corporation             |   |   |   | 50,000     |   |   | (47,947 | ) |   | 2,053 |   |
|   |   |   | Saskatchewan Housing Corporation                    |   |   |   | 52,004     |   |   | (18,792 | ) |   | 33,212 |   |
|   |   |   | Saskatchewan Opportunities Corporation              |   |   |   | 37,543     |   |   | -- |   |   | 37,543 |   |
|   |   |   | Saskatchewan Power Corporation                      |   |   |   | 2,515,488  |   |   | (218,273 | ) |   | 2,297,215 |   |
|   |   |   | Saskatchewan Telecommunications Holding Corporation |   |   |   | 355,500    |   |   | (64,132 | ) |   | 291,368 |   |
|   |   |   | Saskatchewan Water Corporation                      |   |   |   | 43,583     |   |   | (2,171 | ) |   | 41,412 |   |
|   |   |   | SaskEnergy Incorporated                             |   |   |   | 849,819    |   |   | (48,227 | ) |   | 801,592 |   |
|   |   |   | **Total Crown Corporation**                         |   |   |   | 3,956,576  |   |   | (400,306 | ) |   | 3,556,270 |   |
|   |   |   | **Public Debt**                                     |   |   |   | 11,065,793 |   |   | (3,364,237 | ) |   | 7,701,556 |   |

|   | a | The average effective interest rate on gross debt during 2008-09 was 6.8 per cent (2007-08 — 6.7 per cent), and includes the impact of foreign exchange and the amortization of any premiums and discounts associated with the debentures. The average term to maturity of gross debt outstanding at March 31, 2009 is 12.0 years (2008 — 11.5 years).                 Gross debt includes Canada Pension Plan debentures of $745.1 million (2008 — $798.5 million). These debentures are callable in whole or in part before maturity, on six business days prior notice, at the option of the Minister of Finance of Saskatchewan. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **65**

----

----

General Revenue Fund 

----

| **Public Debt *(continued)*** |   |   |                                                                                                                                                                                                                                                                                                                                                                      | **Schedule 6** |   |
|-------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|
||
||
|                          |   |   | **Year of Maturity**                                                                                                                                                                                                                                                                                                                                                      |           |   |   |   |   |   |   |   |
|                          |   |   |                                                                                                                                                                                                                                                                                                                                                                      |           |   |   |   |   |   |   |   |
|                          |   |   | Short-term promissory notes                                                                                                                                                                                                                                                                                                                                               |           |   |   | 154,197 |   |   | 430,000 |   |
|                          |   |   | 2008-09                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | -- |   |   | 614,478 |   |
|                          |   |   | 2009-10                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | 932,763 |   |   | 933,394 |   |
|                          |   |   | 2010-11                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | 649,250 |   |   | 650,974 |   |
|                          |   |   | 2011-12                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | 261,646 |   |   | 265,387 |   |
|                          |   |   | 2012-13                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | 1,162,942 |   |   | 1,165,892 |   |
|                          |   |   | 2013-14                                                                                                                                                                                                                                                                                                                                                                   |           |   |   | 803,363 |   |   | -- |   |
|                          |   |   | 6-10 years                                                                                                                                                                                                                                                                                                                                                                |           |   |   | 1,983,628 |   |   | 2,755,686 |   |
|                          |   |   | Thereafter                                                                                                                                                                                                                                                                                                                                                                |           |   |   | 5,118,004 |   |   | 4,762,098 |   |
|                          |   |   | Gross Debt a                                                                                                                                                                                                                                                                                                                                                              |           |   |   | 11,065,793 |   |   | 11,577,909 |   |
|                          |   |   | Sinking Funds                                                                                                                                                                                                                                                                                                                                                             |           |   |   | (3,364,237 | ) |   | (1,359,258 | ) |
|                          |   |   | Public Debt                                                                                                                                                                                                                                                                                                                                                               |           |   |   | 7,701,556 |   |   | 10,218,651 |   |
|                          |   |   | a        Gross debt includes debentures of $130.5 million (2008 - $210.5 million) that provide the holder with a choice of dates on which the debt matures. The year of maturity           reflects the earliest possible date of maturity rther than maximum term to maturity. |           |

----

**66**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Sinking Funds**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |      |   |   |   |   |   | **Schedule 7** |   |
|---------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|--------|----------------|--------|
||
||
| **Government**                                                |   |   |   | 994,048   |   |   | 1,892,754 |   |   | 78,723 |   |   | (48,842        | )      |   | 47,248 |   |   | 2,963,931 |   |
| **Crown Corporation**                                         |   |   |   |      |   |   |      |   |   |   |   |   |           |   |   |   |   |   |   |   |
| Municipal Financing Corporation of Saskatchewan               |   |   |   | 466       |   |   | 262       |   |   | 36     |   |   | --             |   |   | -- |   |   | 764 |   |
| Saskatchewan Crop Insurance Corporation                       |   |   |   | 27,842    |   |   | 18,600    |   |   | 1,505  |   |   | --             |   |   | -- |   |   | 47,947 |   |
| Saskatchewan Housing Corporation                              |   |   |   | 48,929    |   |   | 520       |   |   | 2,136  |   |   | (32,793        | )      |   | -- |   |   | 18,792 |   |
| Saskatchewan Power Corporation                                |   |   |   | 186,286   |   |   | 21,222    |   |   | 10,765 |   |   | --             |   |   | -- |   |   | 218,273 |   |
| Saskatchewan Telecommunications Holding                       |   |   |   |      |   |   |      |   |   |   |   |   |           |   |   |   |   |   |   |   |
|    Corporation                                 |   |   |   | 57,681    |   |   | 3,266     |   |   | 3,185  |   |   | --             |   |   | -- |   |   | 64,132 |   |
| Saskatchewan Water Corporation                                |   |   |   | 956       |   |   | 1,141     |   |   | 74     |   |   | --             |   |   | -- |   |   | 2,171 |   |
| SaskEnergy Incorporated                                       |   |   |   | 43,050    |   |   | 5,882     |   |   | 2,400  |   |   | (3,105         | )      |   | -- |   |   | 48,227 |   |
| **Total Crown Corporation**                                   |   |   |   | 365,210   |   |   | 50,893    |   |   | 20,101 |   |   | (35,898        | )      |   | -- |   |   | 400,306 |   |
| **Total Sinking Funds 4**                                     |   |   |   | 1,359,258 |   |   | 1,943,647 |   |   | 98,824 |   |   | (84,740        | )      |   | 47,248 |   |   | 3,364,237 |   |

| 1 | Annual contributions, established by Order in Council, are set at not less than one per cent of debentures outstanding. The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements by debt classification are as follows: |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                   |                                         |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | Total   |    |
|--------------------------------------------------------------------------------------------------------|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|---------|
|             Government general debt        |                                         |   |   | 56,222 |   |   | 55,962 |   |   | 55,222 |   |   | 53,509 |   |   | 44,200 |   |   | 265,115 |    |
|             Crown corporation general debt |                                         |   |   | 3,619  |   |   | 3,619  |   |   | 3,619  |   |   | 3,619  |   |   | 3,619  |   |   | 18,095  |    |
|                                            | Government business enterprise specific debt |   |   |   | 33,204 |   |   | 33,204 |   |   | 31,504 |   |   | 31,504 |   |   | 31,004 |   |    | 160,420 |   |
|                                            | Total Sinking Fund Contributions a           |   |   |   | 93,045 |   |   | 92,785 |   |   | 90,345 |   |   | 88,632 |   |   | 78,823 |   |    | 443,630 |   |

|   | a | Each year includes contributions of 1.0 million U.S. dollars. |
|--------|---|---------------------------------------------------------------|

| 2 | Sinking fund earnings include gains on investment sales of $21.3 million (2008 — losses of $1.0 million). |
|---|-----------------------------------------------------------------------------------------------------------------|

| 3 | The redemption value is based on the market value of the sinking fund units at the date of redemption. |
|---|--------------------------------------------------------------------------------------------------------|

| 4 | The market value of sinking funds at March 31, 2009 is $3,405.6 million (2008 — $1,418.6 million). Total sinking funds by debt classification is as follows: |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                   |                                               |      |   | 2008    |      |   | 2009      |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|-----------|--------|---------|-----------|--------|-----------|-----------|
||
|             Government general debt                                                                                                        |                                               |      |   | 994,048 |      |   | 1,892,754 |      |   | 78,723 |   |   | (48,842 | ) |   | 47,248 |   |   | 2,963,931 |   |
|                                                                                                                                            | Crown corporation general debt                     |      |   |    | 77,727    |   |      | 20,261    |   |   | 3,715 |   |   | (32,793 | ) |   | -- |   |   | 68,910 |   |
|                                                                                                                                            | Total Sinking Funds of General Debt                |      |   |    | 1,071,775 |   |      | 1,913,015 |   |   | 82,438 |   |   | (81,635 | ) |   | 47,248 |   |   | 3,032,841 |   |
|                                                                                                                                            | Government business enterprise specific debt       |      |   |    | 287,483   |   |      | 30,632    |   |   | 16,386 |   |   | (3,105 | ) |   | -- |   |   | 331,396 |   |
|                                                                                                                                            | Total Sinking Funds                                |      |   |    | 1,359,258 |   |      | 1,943,647 |   |   | 98,824 |   |   | (84,740 | ) |   | 47,248 |   |   | 3,364,237 |   |
|                                                                                                                                            | Sinking fund assets have been invested as follows: |      |   |    |      |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                   |                                               |      |   |    |      |   |      |      |   |   |   |   |   |   |   | **2009** |   |   | **2008** |   |
|             Long-term Investments in securities of:                                                                                        |                                               |      |   |    |      |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                  Government of Saskatchewan, coupon interest range 4.5% to 10.3%; maturing in 0.8 to 31.2 years   |                                               | 526,574   |   |    | 441,676   |   |
|                  Government of Canada, coupon interest range 3.8% to 5.0%; maturing in 3.7 to 32.2 years          |                                               | 148,606   |   |    | 26,093    |   |
|                  Other provincial governments, coupon interest range 3.2% to 11.0%; maturing in 3.5 to 35.9 years |                                               | 1,563,200 |   |    | 641,605   |   |
|                  Corporations, coupon interest range 3.9% to 5.1%; maturing in 1.6 to 4.4 years                   |                                               | 168,027   |   |    | --        |   |
|                  Government of the United States, coupon interest 4.5%; maturing in 29.1 years                    |                                               | 31,639    |   |    | 10,333    |   |
|                                                                                                                                            | Cash, short term investments and accrued interesta |      |   |    |      |   |      |      |   |   |   |   |   |   |   |   | 926,191 |   |   | 239,551 |   |
|                                                                                                                                            | Total Sinking Fundsb                               |      |   |    |      |   |      |      |   |   |   |   |   |   |   |   | 3,364,237 |   |   | 1,359,258 |   |

|   | a |  Cash, short term investments and accrued interest are disclosed net of $0.8 million (2008 — $0.9 million) in liabilities. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | b |  Included in total sinking funds are U.S. dollar cash, investments and accrued interest converted to $265.7 million Canadian (2008 — $201.9 million) at the exchange rate in effect at March 31, 2009 of 1.2602 (2008 — 1.0279). |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **67**

----

----

General Revenue Fund 

----

| **Guaranteed Debt**As at March 31, 2009*(thousands of dollars)*     |   |   |   |   |   |   | **Schedule 8** |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------------|--------|
||
| **Crown Corporation**                                               |   |   |   |   |   |   |           |   |
| *The Power Corporation Act*                                         |   |   |   |   |   |   |           |   |
|    Saskatchewan Power savings bonds                  |   |   |   |   |   |   |           |   |
|       Series I - series VIl (matured) |   |   |   | 21     |   |   | 21             |   |
| *The Saskatchewan Development Fund Act*                             |   |   |   |   |   |   |           |   |
|    Guaranteed investments                            |   |   |   | 749    |   |   | 717            |   |
| *The Saskatchewan Telecommunications Act*                           |   |   |   |   |   |   |           |   |
|    Telebonds - series I (matured)                    |   |   |   | 123    |   |   | 124            |   |
| **Total Crown Corporation**                                         |   |   |   | 893    |   |   | 862            |   |
| **Other**                                                           |   |   |   |   |   |   |           |   |
| *The Economic and Co-operative Development Act*                     |   |   |   |   |   |   |           |   |
|    Vanguard Inc.                                     |   |   |   | 1,250  |   |   | 1,250          |   |
| *The Farm Financial Stability Act*                                  |   |   |   |   |   |   |           |   |
|    Breeder associations loan guarantees              |   |   |   | 10,545 |   |   | 12,912         |   |
|    Feeder associations loan guarantees               |   |   |   | 6,101  |   |   | 9,010          |   |
|    Feedlot construction loan guarantees              |   |   |   | 1,453  |   |   | 742            |   |
|    Individual cattle feeder loan guarantees          |   |   |   | 37     |   |   | 379            |   |
| *The Housing and Special-care Homes Act*                            |   |   |   |   |   |   |           |   |
|    Senior citizens' housing                          |   |   |   | --     |   |   | 29             |   |
| *The Student Assistance and Student Aid Fund Act*                   |   |   |   | 26     |   |   | 43             |   |
| **Total Other**                                                     |   |   |   | 19,412 |   |   | 24,365         |   |
| **Total Guaranteed Debt1**                                          |   |   |   | 20,305 |   |   | 25,227         |   |

| 1 | In addition to the amount shown, there is a contingent liability for interest accrued on certain of these items.                Total guaranteed debt is net of a loss provision of $0.6 million (2008 — $0.5 million). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Breeder and Feeder Associations**

The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each cattle association are limited to $6 million under the breeder option. Guarantees for each bison association are        limited to $6 million under both the breeder and feeder options. Guarantees for each sheep association are limited to $4 million under both the breeder and feeder options. 

----

**68**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Tangible Capital Assets**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |    |   |   |    |   |   |   |   |   |      |   |   |      |   | **Schedule 9** |      |
|-------------------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|-----------|--------|--------|-----------|--------|----------------|-----------|
||
||
||
| Opening Net Book Value of                                               |   |   |   |      |   |   |    |   |   |    |   |   |   |   |   |      |   |   |      |   |           |      |   |
|      Tangible Capital Assets1 2                |   |   |   | 722,295   |   |   | 74,884  |   |   | 160,930 |   |   | 32,656 |   |   | 1,606,204 |   |   | 2,596,969 |   |           | 2,466,965 |   |
| Opening cost                                                            |   |   |   | 1,073,649 |   |   | 132,282 |   |   | 230,178 |   |   | 88,639 |   |   | 3,179,272 |   |   | 4,704,020 |   |           | 4,460,242 |   |
| Acquisitions                                                            |   |   |   | 67,917    |   |   | 19,899  |   |   | 39,157  |   |   | 3,691  |   |   | 218,685   |   |   | 349,349   |   |           | 284,657   |   |
| Transfers                                                               |   |   |   | (1,790    | )      |   | 22      |   |   | --      |   |   | --     |   |   | 3,131     |   |   | 1,363     |   |           | 1,197     |   |
| Write downs                                                             |   |   |   | (12,562   | )      |   | --      |   |   | --      |   |   | --     |   |   | --        |   |   | (12,562   | )      |           | (2,854    | ) |
| Disposals                                                               |   |   |   | (6,958    | )      |   | (2,736  | )      |   | (10,391 | )      |   | (78    | )      |   | (36,702   | )      |   | (56,865   | )      |           | (39,222   | ) |
| Closing cost3                                                           |   |   |   | 1,120,256 |   |   | 149,467 |   |   | 258,944 |   |   | 92,252 |   |   | 3,364,386 |   |   | 4,985,305 |   |           | 4,704,020 |   |
| Opening accumulated amortization                                        |   |   |   | 351,354   |   |   | 57,398  |   |   | 69,248  |   |   | 55,983 |   |   | 1,573,068 |   |   | 2,107,051 |   |           | 1,993,277 |   |
| Annual amortization                                                     |   |   |   | 25,569    |   |   | 6,217   |   |   | 15,283  |   |   | 7,168  |   |   | 97,284    |   |   | 151,521   |   |           | 146,621   |   |
| Transfers                                                               |   |   |   | --        |   |   | 22      |   |   | --      |   |   | --     |   |   | --        |   |   | 22        |   |           | 34        |   |
| Write downs                                                             |   |   |   | (1,536    | )      |   | --      |   |   | --      |   |   | --     |   |   | --        |   |   | (1,536    | )      |           | (1,355    | ) |
| Disposals                                                               |   |   |   | (1,742    | )      |   | (2,183  | )      |   | (6,815  | )      |   | (71    | )      |   | (33,819   | )      |   | (44,630   | )      |           | (31,526   | ) |
| Closing accumulated amortization                                        |   |   |   | 373,645   |   |   | 61,454  |   |   | 77,716  |   |   | 63,080 |   |   | 1,636,533 |   |   | 2,212,428 |   |           | 2,107,051 |   |
| **Closing Net Book Value of**                                           |   |   |   |      |   |   |    |   |   |    |   |   |   |   |   |      |   |   |      |   |           |      |   |
|      **Tangible Capital Assets2**              |   |   |   | 746,611   |   |   | 88,013  |   |   | 181,228 |   |   | 29,172 |   |   | 1,727,853 |   |   | 2,772,877 |   |           | 2,596,969 |   |

| 1 | Opening net book value of tangible capital assets has been restated to include an additional $99.0 million (2008 — $103.4 million) of land and improvements *(note 11)*. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Net book value of tangible capital assets does not include:                •  works of art and historical treasures such as the Legislative Building; and                 •  intangible assets and items inherited by right of the Crown such as Crown lands, forests, water and mineral resources which are not recognized in these financial statements. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Closing cost includes work-in-progress of $119.5 million (2008 — $96.1 million). |
|---|----------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **69**

----

----

General Revenue Fund 

----

| **Revenue**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |       |   | Schedule 10 |      |
|----------------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|------------|--------|-------------|-----------|
||
||
| **Taxation**                                                         |   |   |   |      |   |   |       |   |        |      |   |
| Corporation income                                                   |   |   |   | 616,500   |   |   | 591,930    |   |        | 673,641   |   |
| Fuel                                                                 |   |   |   | 413,300   |   |   | 429,162    |   |        | 406,434   |   |
| Individual income                                                    |   |   |   | 1,932,000 |   |   | 1,844,226  |   |        | 1,938,258 |   |
| Provincial sales                                                     |   |   |   | 918,000   |   |   | 1,108,628  |   |        | 929,865   |   |
| Tobacco                                                              |   |   |   | 183,800   |   |   | 199,072    |   |        | 190,412   |   |
| Other                                                                |   |   |   | 249,200   |   |   | 257,977    |   |        | 279,633   |   |
| Total Taxation                                                       |   |   |   | 4,312,800 |   |   | 4,430,995  |   |        | 4,418,243 |   |
| **Non-renewable Resources**                                          |   |   |   |      |   |   |       |   |        |      |   |
| Crown land sales                                                     |   |   |   | 192,500   |   |   | 928,245    |   |        | 419,062   |   |
| Natural gas                                                          |   |   |   | 118,000   |   |   | 125,922    |   |        | 133,780   |   |
| Oil                                                                  |   |   |   | 1,054,600 |   |   | 1,616,071  |   |        | 1,246,205 |   |
| Potash                                                               |   |   |   | 352,600   |   |   | 1,364,463  |   |        | 432,770   |   |
| Resource surcharge                                                   |   |   |   | 366,200   |   |   | 458,299    |   |        | 315,230   |   |
| Other                                                                |   |   |   | 189,200   |   |   | 119,408    |   |        | 93,299    |   |
| Total Non-renewable Resources                                        |   |   |   | 2,273,100 |   |   | 4,612,408  |   |        | 2,640,346 |   |
| **Transfers from Government Entities**                               |   |   |   |      |   |   |       |   |        |      |   |
| Crown Investments Corporation of Saskatchewan                        |   |   |   | 185,000   |   |   | --         |   |        | 200,000   |   |
|     - Special dividend                           |   |   |   | 365,000   |   |   | 365,000    |   |        | --        |   |
| Liquor and Gaming Authority                                          |   |   |   | 383,600   |   |   | 446,652    |   |        | 399,531   |   |
| Other enterprises and funds                                          |   |   |   | 34,800    |   |   | 39,564     |   |        | 53,623    |   |
| Total Transfers from Government Entities                             |   |   |   | 968,400   |   |   | 851,216    |   |        | 653,154   |   |
| **Other Own-source Revenue**                                         |   |   |   |      |   |   |       |   |        |      |   |
| Fines, forfeits, and penalties                                       |   |   |   | 10,200    |   |   | 11,448     |   |        | 11,225    |   |
| Interest, premium, discount, and exchange                            |   |   |   | 92,400    |   |   | 187,957    |   |        | 120,502   |   |
| Motor vehicle fees                                                   |   |   |   | 141,500   |   |   | 151,143    |   |        | 140,631   |   |
| Other licences and permits                                           |   |   |   | 34,700    |   |   | 36,607     |   |        | 35,927    |   |
| Sales, services, and service fees                                    |   |   |   | 91,100    |   |   | 101,885    |   |        | 94,936    |   |
| Transfers from other governments                                     |   |   |   | 16,800    |   |   | 15,010     |   |        | 15,107    |   |
| Commercial operations *(schedule 12)*                                |   |   |   | --        |   |   | 86,567     |   |        | 78,664    |   |
| Other                                                                |   |   |   | 40,000    |   |   | 130,872    |   |        | 54,382    |   |
| Total Other Own-source Revenue                                       |   |   |   | 426,700   |   |   | 721,489    |   |        | 551,374   |   |
| **Total Own-source Revenue**                                         |   |   |   | 7,981,000 |   |   | 10,616,108 |   |        | 8,263,117 |   |
| **Transfers from the Federal Government**                            |   |   |   |      |   |   |       |   |        |      |   |
| Canada Health Transfer                                               |   |   |   | 810,900   |   |   | 823,496    |   |        | 739,648   |   |
| Canada Social Transfer                                               |   |   |   | 335,000   |   |   | 338,301    |   |        | 325,098   |   |
| Equalization                                                         |   |   |   | --        |   |   | --         |   |        | 226,146   |   |
| Other                                                                |   |   |   | 239,600   |   |   | 547,167    |   |        | 311,669   |   |
| **Total Transfers from the Federal Government**                      |   |   |   | 1,385,500 |   |   | 1,708,964  |   |        | 1,602,561 |   |
| **Total Revenue**                                                    |   |   |   | 9,366,500 |   |   | 12,325,072 |   |        | 9,865,678 |   |

----

**70**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Debt Servicing**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |     |   | Schedule 11 |     |
|-----------------------------------------------------------------------------|--------|--------|--------|----------|--------|-------------|----------|
||
|                                                                        |   |   |   |     |   |        |     |   |
| Total interest costs                                                        |   |   |   | 738,369  |   |        | 789,742  |   |
| Interest reimbursed for government business enterprise specific debt        |   |   |   | (229,133 | )      |        | (250,508 | ) |
| Net foreign exchange loss                                                   |   |   |   | 5,526    |   |        | 1,598    |   |
| Other costs                                                                 |   |   |   | 5,419    |   |        | 5,886    |   |
| **Total Debt Servicing**                                                    |   |   |   | 520,181  |   |        | 546,718  |   |

| **Commercial Operations**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |   |   |   |   |   | Schedule 12 |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|
||
||
| **Commercial Operations Revenue1**                                                 |   |   |   |   |   |   |   |   |        |   |   |
| Recovery from external sources                                                     |   |   |   |   |   |   |   |   |        |   |   |
|     Government Services                                        |   |   |   | 71,031 |   |   | 81,836 |   |        | 71,776 |   |
|     Highways and Infrastructure                                |   |   |   | 4,000  |   |   | 3,402  |   |        | 7,105  |   |
|     Information Technology Office                              |   |   |   | 1,349  |   |   | 1,630  |   |        | 65     |   |
| Recovery of overhead costs2                                                        |   |   |   |   |   |   |   |   |        |   |   |
|     Highways and Infrastructure                                |   |   |   | --     |   |   | (301   | )      |        | (282   | ) |
| Commercial Operations Revenue *(schedule 10)*                                      |   |   |   | 76,380 |   |   | 86,567 |   |        | 78,664 |   |
| **Commercial Operations Expense**                                                  |   |   |   |   |   |   |   |   |        |   |   |
|     Government Services                                        |   |   |   | 71,031 |   |   | 81,180 |   |        | 70,312 |   |
|     Highways and Infrastructure                                |   |   |   | 4,000  |   |   | 2,892  |   |        | 6,542  |   |
|     Information Technology Office                              |   |   |   | 1,349  |   |   | 1,630  |   |        | 27     |   |
| Commercial Operations Expense                                                      |   |   |   | 76,380 |   |   | 85,702 |   |        | 76,881 |   |
| **Net Results**                                                                    |   |   |   |   |   |   |   |   |        |   |   |
|     Government Services                                        |   |   |   | --     |   |   | 656    |   |        | 1,464  |   |
|     Highways and Infrastructure                                |   |   |   | --     |   |   | 209    |   |        | 281    |   |
|     Information Technology Office                              |   |   |   | --     |   |   | --     |   |        | 38     |   |
| **Net Results**                                                                    |   |   |   | --     |   |   | 865    |   |        | 1,783  |   |

| 1 | With the approval of the Lieutenant Governor in Council, revenues from commercial type activities may be used to pay for the related costs without requiring an appropriation. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Where a portion of the revenue collected relates to the recovery of overhead costs (e.g. employee benefit cost) paid for by another ministry, the revenue is included in sales, services and service fees. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts   **71**

----

----

General Revenue Fund 

----

| **Expense by Theme**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   | **Schedule 13** |      |
|-------------------------------------------------------------------------------|--------|--------|--------|------------|--------|-----------------|-----------|
||
|                                                                          |   |   |   |       |   |            |      |   |
| Agriculture                                                                   |   |   |   | 424,396    |   |            | 302,197   |   |
| Community development                                                         |   |   |   | 495,618    |   |            | 315,743   |   |
| Debt servicing *(schedule 11)*                                                |   |   |   | 520,181    |   |            | 546,718   |   |
| Economic development                                                          |   |   |   | 177,121    |   |            | 171,235   |   |
| Education                                                                     |   |   |   | 2,112,986  |   |            | 1,562,319 |   |
| Environment and natural resources                                             |   |   |   | 424,020    |   |            | 178,334   |   |
| Health                                                                        |   |   |   | 3,976,241  |   |            | 3,504,333 |   |
| Protection of persons and property                                            |   |   |   | 395,326    |   |            | 387,952   |   |
| Social services and assistance                                                |   |   |   | 790,263    |   |            | 732,521   |   |
| Transportation                                                                |   |   |   | 543,722    |   |            | 392,175   |   |
| Other                                                                         |   |   |   | 495,265    |   |            | 489,282   |   |
| **Total Expense**                                                             |   |   |   | 10,355,139 |   |            | 8,582,809 |   |

| **Expense by Object**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   | **Schedule 14** |      |
|--------------------------------------------------------------------------------|--------|--------|--------|------------|--------|-----------------|-----------|
||
|                                                                           |   |   |   |       |   |            |      |   |
| Personal services                                                              |   |   |   | 743,172    |   |            | 716,694   |   |
| Transfers                                                                      |   |   |   |       |   |            |      |   |
|     Capital *(schedule 18)*                                |   |   |   | 1,165,625  |   |            | 266,660   |   |
|     Operating                                              |   |   |   | 6,903,227  |   |            | 6,063,150 |   |
| Goods and services                                                             |   |   |   | 588,767    |   |            | 534,689   |   |
| Debt servicing *(schedule 11)*                                                 |   |   |   | 520,181    |   |            | 546,718   |   |
| Amortization of tangible capital assets *(schedule 9)*                         |   |   |   | 151,521    |   |            | 146,621   |   |
| Other                                                                          |   |   |   | 282,646    |   |            | 308,277   |   |
| **Total Expense**                                                              |   |   |   | 10,355,139 |   |            | 8,582,809 |   |

----

**72**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Non-cash Items Included in Surplus**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |    |   | **Schedule 15** |    |
|-------------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|-----------------|---------|
||
||
| Amortization of tangible capital assets *(schedule 9)*                                          |   |   |   | 151,521 |   |            | 146,621 |   |
| Net loss on disposal of tangible capital assets                                                 |   |   |   | 5,153   |   |            | 931     |   |
| Amortization of foreign exchange loss                                                           |   |   |   | 5,526   |   |            | 1,598   |   |
| Net loss on loans and investments                                                               |   |   |   | 899     |   |            | 8,203   |   |
| Write downs of tangible capital assets *(schedule 9)*                                           |   |   |   | 11,026  |   |            | 1,499   |   |
| Net gain on transfer of tangible capital assets                                                 |   |   |   | (1,341  | )      |            | (1,163  | ) |
| Earnings retained in sinking funds                                                              |   |   |   | (78,723 | )      |            | (45,858 | ) |
| **Total Non-cash Items Included in Surplus**                                                    |   |   |   | 94,061  |   |            | 111,831 |   |

| **Net Change in Non-cash Operating Activities**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |     |   | **Schedule 16** |    |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|--------|-----------------|---------|
||
||
| Increase in accounts reveivable                                                                          |   |   |   | (179,012 | )      |            | (36,179 | ) |
| Decrease in deferred charges                                                                             |   |   |   | 5,070    |   |            | 3,099   |   |
| Increase in accounts payable and accrued liabilities                                                     |   |   |   | 68,067   |   |            | 269,190 |   |
| Increase in unearned revenue                                                                             |   |   |   | 3,631    |   |            | 3,303   |   |
| Increase in prepaid expenses                                                                             |   |   |   | (217     | )      |            | (386    | ) |
| Increase in inventories held for consumption                                                             |   |   |   | (12,076  | )      |            | (10,643 | ) |
| **Net Change in Non-cash Operating Activities**                                                          |   |   |   | (114,537 | )      |            | 228,384 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts   **73**

----

----

General Revenue Fund 

----

| **Investing Activities**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |      |   |   |     |   | Schedule 17 |    |
|-----------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|-----------|--------|--------|----------|--------|-------------|---------|
||
||
||
| **Loans**                                                                         |   |   |   |       |   |   |      |   |   |     |   |        |    |   |
| Information Services Corporation of Saskatchewan                                  |   |   |   | 3,919      |   |   | --        |   |   | 11,000   |   |        | --      |   |
| Investment Saskatchewan Inc.                                                      |   |   |   | --         |   |   | --        |   |   | 7,000    |   |        | --      |   |
| Municipal Financing Corporation of Saskatchewan                                   |   |   |   | --         |   |   | 1,062     |   |   | 4,946    |   |        | --      |   |
| Saskatchewan Crop Insurance Corporation                                           |   |   |   | 50,000     |   |   | --        |   |   | 15,800   |   |        | --      |   |
| Saskatchewan Housing Corporation                                                  |   |   |   | 31,000     |   |   | --        |   |   | --       |   |        | --      |   |
| Saskatchewan Opportunities Corporation                                            |   |   |   | 17,985     |   |   | 23,684    |   |   | --       |   |        | 13,844  |   |
| Saskatchewan Power Corporation                                                    |   |   |   | 125,000    |   |   | 100,000   |   |   | --       |   |        | 165,000 |   |
| Saskatchewan Telecommunications Holding Corporation                               |   |   |   | --         |   |   | 28,900    |   |   | --       |   |        | --      |   |
| Saskatchewan Water Corporation                                                    |   |   |   | 2,491      |   |   | 5,000     |   |   | 1,496    |   |        | 7,600   |   |
| SaskEnergy Incorporated                                                           |   |   |   | 48,000     |   |   | 170,000   |   |   | --       |   |        | 60,500  |   |
| Other                                                                             |   |   |   | 54,440     |   |   | 48,158    |   |   | 55,883   |   |        | 63,954  |   |
| **Total Loan Receipts and Disbursements**                                         |   |   |   | 332,835    |   |   | 376,804   |   |   | 96,125   |   |        | 310,898 |   |
| **Sinking Funds***(schedule 7)*                                                   |   |   |   |       |   |   |      |   |   |     |   |        |    |   |
| Contributions                                                                     |   |   |   | 20,261     |   |   | 1,913,015 |   |   | 28,522   |   |        | 96,415  |   |
| Redemptions                                                                       |   |   |   | 81,635     |   |   | 32,793    |   |   | --       |   |        | --      |   |
| **Sinking Fund Receipts and Disbursements**                                       |   |   |   | 101,896    |   |   | 1,945,808 |   |   | 28,522   |   |        | 96,415  |   |
| **Equity investment in Crown Investments**                                        |   |   |   |       |   |   |      |   |   |     |   |        |    |   |
|     **Corporation of Saskatchewan**                           |   |   |   | 130,000    |   |   | --        |   |   | --       |   |        | --      |   |
| **Total Receipts and Disbursements**                                              |   |   |   | 564,731    |   |   | 2,322,612 |   |   | 124,647  |   |        | 407,313 |   |
| **Net Disbursements**                                                             |   |   |   | (1,757,881 | )      |   |      |   |   | (282,666 | )      |        |    |   |

----

**74**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

General Revenue Fund 

----

| **Capital Investment**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |    |   |   |      |   |   |      |   | Schedule 18 |    |
|---------------------------------------------------------------------------------|--------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|-------------|---------|
||
||
||
| **Executive Branch of Government**                                              |   |   |   |    |   |   |      |   |   |      |   |        |    |   |
| Advanced Education, Employment and Labour                                       |   |   |   | 4,135   |   |   | 162,718   |   |   | 166,853   |   |        | 23,911  |   |
| Agriculture                                                                     |   |   |   | 163     |   |   | --        |   |   | 163       |   |        | 86      |   |
| Corrections, Public Safety and Policing                                         |   |   |   | 19,848  |   |   | --        |   |   | 19,848    |   |        | 31,703  |   |
| Education                                                                       |   |   |   | --      |   |   | 261,330   |   |   | 261,330   |   |        | 41,269  |   |
| Energy and Resources                                                            |   |   |   | 366     |   |   | 1,180     |   |   | 1,546     |   |        | 49      |   |
| Environment                                                                     |   |   |   | 22,057  |   |   | 2,689     |   |   | 24,746    |   |        | 15,672  |   |
| Finance                                                                         |   |   |   | 422     |   |   | --        |   |   | 422       |   |        | 1,012   |   |
| First Nations and Métis Relations                                        |   |   |   | --      |   |   | --        |   |   | --        |   |        | 422     |   |
| Government Services                                                             |   |   |   | 28,181  |   |   | --        |   |   | 28,181    |   |        | 28,242  |   |
| Health                                                                          |   |   |   | 28,925  |   |   | 350,748   |   |   | 379,673   |   |        | 101,115 |   |
| Highways and Infrastructure                                                     |   |   |   | 231,749 |   |   | 137,724   |   |   | 369,473   |   |        | 190,066 |   |
| Information Technology Office                                                   |   |   |   | 160     |   |   | --        |   |   | 160       |   |        | 52      |   |
| Justice and Attorney General                                                    |   |   |   | 4,590   |   |   | --        |   |   | 4,590     |   |        | 3,749   |   |
| Municipal Affairs                                                               |   |   |   | --      |   |   | 224,775   |   |   | 224,775   |   |        | 75,176  |   |
| Public Service Commission                                                       |   |   |   | 1,905   |   |   | --        |   |   | 1,905     |   |        | --      |   |
| Social Services                                                                 |   |   |   | 1,107   |   |   | 2,450     |   |   | 3,557     |   |        | 766     |   |
| Tourism, Parks, Culture and Sport                                               |   |   |   | 5,617   |   |   | 22,011    |   |   | 27,628    |   |        | 37,957  |   |
| **Legislative Branch of Government**                                            |   |   |   |    |   |   |      |   |   |      |   |        |    |   |
| Chief Electoral Officer                                                         |   |   |   | --      |   |   | --        |   |   | --        |   |        | 59      |   |
| Legislative Assembly                                                            |   |   |   | 124     |   |   | --        |   |   | 124       |   |        | 11      |   |
| **Total Capital Investment**                                                    |   |   |   | 349,349 |   |   | 1,165,625 |   |   | 1,514,974 |   |        | 551,317 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts   **75**

----

----

----

----

----

# Summary Financial Statements 

----

----

----

----

----

----

Summary Financial Statements

----

**Responsibility for the Summary Financial Statements**

The Government is responsible for the Summary Financial Statements. The Government maintains a system of accounting and administrative controls to ensure that accurate and reliable financial statements are prepared and to obtain reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are maintained. 

The Provincial Comptroller prepares these statements in accordance with generally accepted accounting principles for the public sector, using the Government’s best estimates and judgement when appropriate. He uses information from the accounts of the General Revenue Fund, Crown corporations and other government organizations to prepare these statements. 

The Provincial Auditor expresses an independent opinion on these statements. His report, which appears on the following page, provides the scope of his audit and states his opinion. 

Treasury Board approves the Summary Financial Statements. The statements are tabled in the Legislative Assembly as part of the Public Accounts and referred to the Standing Committee on Public Accounts for review. 

On behalf of the Government of the Province of Saskatchewan. 

/s/ Rod Gantefoer

**ROD GANTEFOER***Minister of Finance*

/s/ Doug Matthies

**DOUG MATTHIES***Deputy Minister of Finance*

/s/ Terry Paton

**TERRY PATON***Provincial Comptroller*

Regina, Saskatchewan        June 2009

----

Government of Saskatchewan - 2008-09 Public Accounts   **79**

----

----

----

----

----

Summary Financial Statements

----

**Auditor’s Report**

To the Members of the Legislative Assembly of Saskatchewan 

I have audited the summary statement of financial position of the Government of Saskatchewan as at March 31, 2009 and the summary statements of operations, accumulated surplus, change in net debt, and cash flow for the year then ended. These financial statements are the responsibility of Treasury Board. My responsibility is to express an opinion on these financial statements based on my audit. 

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and        significant estimates made by management, as well as evaluating the overall financial statement presentation. 

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Government of Saskatchewan as at March 31, 2009 and the results of its operations, the changes in its net debt and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. 

/s/ Fred Wendel

**FRED WENDEL, CMA, CA***Provincial Auditor*

Regina, Saskatchewan        June 5, 2009

----

Government of Saskatchewan - 2008-09 Public Accounts   **81**

----

----

----

----

----

Summary Financial Statements

----

| **Summary Statement of Financial Position**As at March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |       |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|
||
||
| **Financial Assets**                                                                    |   |   |   |       |   |   |       |   |
| Cash and temporary investments *(note 2)*                                               |   |   |   | 3,831,588  |   |   | 3,695,270  |   |
| Accounts receivable *(schedule 1)*                                                      |   |   |   | 1,108,261  |   |   | 912,913    |   |
| Inventories held for resale                                                             |   |   |   | 34,531     |   |   | 23,486     |   |
| Deferred charges                                                                        |   |   |   | 23,129     |   |   | 29,014     |   |
| Loans receivable *(schedule 2)*                                                         |   |   |   | 532,370    |   |   | 394,143    |   |
| Investment in government business enterprises *(schedule 3)*                            |   |   |   | 3,101,020  |   |   | 3,396,341  |   |
| Other investments *(schedule 4)*                                                        |   |   |   | 922,533    |   |   | 522,428    |   |
| **Total Financial Assets**                                                              |   |   |   | 9,553,432  |   |   | 8,973,595  |   |
| **Liabilities**                                                                         |   |   |   |       |   |   |       |   |
| Accounts payable and accrued liabilities *(schedule 5)*                                 |   |   |   | 2,205,581  |   |   | 1,770,007  |   |
| Other liabilities *(schedule 6)*                                                        |   |   |   | 360,761    |   |   | 321,693    |   |
| Unearned revenue *(schedule 7)*                                                         |   |   |   | 250,968    |   |   | 245,388    |   |
| Public debt *(note 3)(schedule 8)*                                                      |   |   |   | 4,795,588  |   |   | 7,421,444  |   |
| Unamortized foreign exchange (loss) gain                                                |   |   |   | (10,503    | )      |   | 606        |   |
| Pension liabilities *(note 4)(schedule 11)*                                             |   |   |   | 5,474,984  |   |   | 5,087,807  |   |
| **Total Liabilities**                                                                   |   |   |   | 13,077,379 |   |   | 14,846,945 |   |
| **Net Debt**                                                                            |   |   |   | (3,523,947 | )      |   | (5,873,350 | )      |
| **Non-financial Assets**                                                                |   |   |   |       |   |   |       |   |
| Prepaid expenses                                                                        |   |   |   | 31,069     |   |   | 30,412     |   |
| Inventories held for consumption                                                        |   |   |   | 109,312    |   |   | 108,585    |   |
| Tangible capital assets *(schedule 12)*                                                 |   |   |   | 4,780,446  |   |   | 4,516,287  |   |
| **Total Non-financial Assets**                                                          |   |   |   | 4,920,827  |   |   | 4,655,284  |   |
| **Accumulated Surplus (Deficit)**                                                       |   |   |   | 1,396,880  |   |   | (1,218,066 | )      |

Contingencies *(note 5)*        Contractual obligations *(note 6)*        Guaranteed debt *(note 5)(schedule 10)**The accompanying notes and schedules are an integral part of these financial statements.*

----

Government of Saskatchewan - 2008-09 Public Accounts   **83**

----

----

Summary Financial Statements 

----

| **Summary Statement of Operations**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |       |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|
||
||
| **Revenue**                                                                                  |   |   |   |       |   |   |       |   |
| Taxation                                                                                     |   |   |   | 4,432,684  |   |   | 4,419,663  |   |
| Non-renewable resources                                                                      |   |   |   | 4,612,408  |   |   | 2,640,346  |   |
| Other own-source revenue                                                                     |   |   |   | 2,577,795  |   |   | 1,922,759  |   |
| Transfers from the federal government                                                        |   |   |   | 1,966,192  |   |   | 1,807,331  |   |
| **Total Revenue***(schedule 13)*                                                             |   |   |   | 13,589,079 |   |   | 10,790,099 |   |
| **Expense**                                                                                  |   |   |   |       |   |   |       |   |
| Agriculture                                                                                  |   |   |   | 726,661    |   |   | 520,400    |   |
| Community development                                                                        |   |   |   | 575,463    |   |   | 348,181    |   |
| Debt charges *(schedule 14)*                                                                 |   |   |   | 804,432    |   |   | 820,821    |   |
| Economic development                                                                         |   |   |   | 229,168    |   |   | 258,161    |   |
| Education                                                                                    |   |   |   | 2,267,852  |   |   | 1,787,008  |   |
| Environment and natural resources                                                            |   |   |   | 270,003    |   |   | 240,404    |   |
| Health                                                                                       |   |   |   | 4,029,312  |   |   | 3,650,982  |   |
| Protection of persons and property                                                           |   |   |   | 444,114    |   |   | 433,491    |   |
| Social services and assistance                                                               |   |   |   | 928,851    |   |   | 899,963    |   |
| Transportation                                                                               |   |   |   | 573,631    |   |   | 417,544    |   |
| Other                                                                                        |   |   |   | 456,875    |   |   | 483,410    |   |
| **Total Expense***(schedule 15)*                                                             |   |   |   | 11,306,362 |   |   | 9,860,365  |   |
| Surplus from government service organizations                                                |   |   |   | 2,282,717  |   |   | 929,734    |   |
| Income from government business enterprises *(schedule 3)*                                   |   |   |   | 685,313    |   |   | 943,566    |   |
| **Surplus***(schedule 16)*                                                                   |   |   |   | 2,968,030  |   |   | 1,873,300  |   |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

**84**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

| **Summary Statement of Accumulated Surplus**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |       |   |   |       |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
||
||
||
| Accumulated deficit, beginning of year                                                                |   |   |   | (1,218,066 | )      |   | (1,218,066 | )      |   | (3,083,092 | )      |
| Adjustment to accumulated deficit *(note 12)*                                                         |   |   |   | --         |   |   | --         |   |   | 121,086    |   |
| Surplus (deficit)                                                                                     |   |   |   | (133,197   | )      |   | 2,968,030  |   |   | 1,873,300  |   |
| Other comprehensive loss *(schedule 3)*                                                               |   |   |   | --         |   |   | (353,084   | )      |   | (129,360   | )      |
| **Accumulated Surplus (Deficit), End of Year**                                                        |   |   |   | (1,351,263 | )      |   | 1,396,880  |   |   | (1,218,066 | )      |

| **Summary Statement of Change in Net Debt**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |       |   |   |       |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
||
||
||
| **Surplus (Deficit)**                                                                                |   |   |   | (133,197   | )      |   | 2,968,030  |   |   | 1,873,300  |   |
| **Tangible Capital Assets**                                                                          |   |   |   |       |   |   |       |   |   |       |   |
| Acquisitions *(schedule 12)*                                                                         |   |   |   | (712,057   | )      |   | (626,596   | )      |   | (548,290   | )      |
| Amortization *(schedule 12)*                                                                         |   |   |   | 305,149    |   |   | 323,438    |   |   | 316,641    |   |
| Increase in tangible capital assets *(note 10)*                                                      |   |   |   | --         |   |   | --         |   |   | (78,819    | )      |
| Proceeds on disposal                                                                                 |   |   |   | --         |   |   | 17,997     |   |   | 14,998     |   |
| Write downs *(schedule 12)*                                                                          |   |   |   | --         |   |   | 16,101     |   |   | 8,961      |   |
| Net loss (gain) on disposal *(schedule 18)*                                                          |   |   |   | --         |   |   | 4,901      |   |   | (3,560     | )      |
| **Net Acquisition of Tangible Capital Assets**                                                       |   |   |   | (406,908   | )      |   | (264,159   | )      |   | (290,069   | )      |
| **Other Non-financial Assets**                                                                       |   |   |   |       |   |   |       |   |   |       |   |
| Net acquisition of prepaid expenses                                                                  |   |   |   | --         |   |   | (657       | )      |   | (4,584     | )      |
| Net acquisition of inventories held for consumption                                                  |   |   |   | --         |   |   | (727       | )      |   | (12,344    | )      |
| **Net Acquisition of Other Non-financial Assets**                                                    |   |   |   | --         |   |   | (1,384     | )      |   | (16,928    | )      |
| **Decrease (increase) in net debt**                                                                  |   |   |   | (540,105   | )      |   | 2,702,487  |   |   | 1,566,303  |   |
| Net debt, beginning of year                                                                          |   |   |   | (5,873,350 | )      |   | (5,873,350 | )      |   | (7,318,138 | )      |
| Adjustment to net debt *(note 11)*                                                                   |   |   |   | --         |   |   | --         |   |   | (113,241   | )      |
| Adjustment to accumulated deficit *(note 12)*                                                        |   |   |   | --         |   |   | --         |   |   | 121,086    |   |
| Other comprehensive loss *(schedule 3)*                                                              |   |   |   | --         |   |   | (353,084   | )      |   | (129,360   | )      |
| **Net Debt, End of Year**                                                                            |   |   |   | (6,413,455 | )      |   | (3,523,947 | )      |   | (5,873,350 | )      |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

Government of Saskatchewan - 2008-09 Public Accounts   **85**

----

----

Summary Financial Statements 

----

| **Summary Statement of Cash Flow**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |      |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|-----------|--------|
||
||
| **Operating Activities**                                                                    |   |   |   |       |   |   |      |   |
| Surplus                                                                                     |   |   |   | 2,968,030  |   |   | 1,873,300 |   |
| Deduct non-cash items                                                                       |   |   |   |       |   |   |      |   |
|   Income from government business enterprises *(schedule 3)*                      |   |   |   | (685,313   | )      |   | (943,566  | )      |
|   Other non-cash items included in surplus *(schedule 18)*                        |   |   |   | (480,237   | )      |   | (65,448   | )      |
| Net change in non-cash operating activities *(schedule 19)*                                 |   |   |   | 626,439    |   |   | 341,453   |   |
| Dividends received from government business enterprises *(schedule 3)*                      |   |   |   | 656,004    |   |   | 644,612   |   |
| Dividends received from other investments                                                   |   |   |   | 68,303     |   |   | 32,000    |   |
| **Cash Provided by Operating Activities**                                                   |   |   |   | 3,153,226  |   |   | 1,882,351 |   |
| **Capital Activities**                                                                      |   |   |   |       |   |   |      |   |
| Acquisition of tangible capital assets *(schedule 12)*                                      |   |   |   | (626,596   | )      |   | (548,290  | )      |
| Adjustment to tangible capital assets *(note 10)*                                           |   |   |   | --         |   |   | (78,819   | )      |
| Proceeds on disposal of tangible capital assets                                             |   |   |   | 17,997     |   |   | 14,998    |   |
| **Cash Used for Capital Activities**                                                        |   |   |   | (608,599   | )      |   | (612,111  | )      |
| **Investing Activities**                                                                    |   |   |   |       |   |   |      |   |
| Decrease in other assets held for resale                                                    |   |   |   | --         |   |   | 23,362    |   |
| Net increase in loans receivable                                                            |   |   |   | (135,292   | )      |   | (204,237  | )      |
| Increase in equity advances to government business enterprises                              |   |   |   | (29,805    | )      |   | --        |   |
| Transfer of net assets from government business enterprises                                 |   |   |   | 1,351      |   |   | --        |   |
| Acquisition of other investments                                                            |   |   |   | (611,027   | )      |   | (167,012  | )      |
| Disposition of other investments                                                            |   |   |   | 887,449    |   |   | 560,925   |   |
| Adjustment to other investments *(note 10)*                                                 |   |   |   | --         |   |   | 41,810    |   |
| Contributions made to sinking funds *(schedule 9)*                                          |   |   |   | (1,943,647 | )      |   | (128,549  | )      |
| Sinking fund contributions received from                                                    |   |   |   |       |   |   |      |   |
|   government business enterprises *(schedule 9)*                                  |   |   |   | 30,632     |   |   | 32,134    |   |
| Sinking fund redemptions *(schedule 9)*                                                     |   |   |   | 81,635     |   |   | --        |   |
| **Cash (Used for) Provided by Investing Activities**                                        |   |   |   | (1,718,704 | )      |   | 158,433   |   |
| **Financing Activities**                                                                    |   |   |   |       |   |   |      |   |
| Proceeds from public debt                                                                   |   |   |   | 36,993     |   |   | 607,259   |   |
| Repayment of public debt                                                                    |   |   |   | (765,666   | )      |   | (659,682  | )      |
| Increase in other liabilities                                                               |   |   |   | 39,068     |   |   | 103,810   |   |
| **Cash (Used for) Provided by Financing Activities**                                        |   |   |   | (689,605   | )      |   | 51,387    |   |
| **Increase in cash and temporary investments**                                              |   |   |   | 136,318    |   |   | 1,480,060 |   |
| Cash and temporary investments, beginning of year                                           |   |   |   | 3,695,270  |   |   | 2,215,210 |   |
| **Cash and Temporary Investments, End of Year**                                             |   |   |   | 3,831,588  |   |   | 3,695,270 |   |

*The accompanying notes and schedules are an integral part of these financial statements.*

----

**86**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

**Notes to the Summary Financial Statements**As at March 31, 2009 

**1.   Significant Accounting Policies**

**a)     Basis of accounting**

These Summary financial statements are prepared in accordance with generally accepted accounting principles for the public sector, as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. 

**b)     Government reporting entity**

The government reporting entity consists of organizations controlled by the Government. These government entities are segregated into two classifications. Entities that are self-sufficient and have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity are classified as *government business enterprises*. All other        government entities are *government service organizations.*

A listing of the organizations included in the government reporting entity is provided in schedule 21. Unless otherwise noted, the financial activities of all subsidiaries of these organizations have also been included. 

Trust funds are administered but not controlled by the Government and therefore are excluded from the government reporting entity. 

**c)   Government partnerships**

The Government has entered into various partnerships where there is a contractual arrangement between the Government and one or more partners outside the government reporting entity and where these partners share, on an equitable basis, the significant risks and benefits associated with operating the partnership. 

**d)   Method of consolidation**

*Government service organizations* are consolidated after adjustment to a basis consistent with the accounting policies described in note 1(e). Significant inter-organization balances and transactions are eliminated. Government service organizations in which a non-controlling interest exists are proportionately consolidated. 

*Government business enterprises* are accounted for by the modified equity method. Using this method, the Government’s investment in government business enterprises, which is initially recorded at cost, is adjusted annually to include the Government’s proportionate share of net earnings or losses and certain other net equity changes of the enterprise without adjustment to conform with the accounting policies        described in note 1(e). With the exception of dividends declared by March 31, inter-organization balances and transactions are not eliminated. 

*Government partnerships* are proportionately consolidated after adjustment to a basis consistent with the accounting policies described in note 1(e), and are disclosed in note 7. Significant inter-organization balances and transactions are eliminated. 

Financial results of government organizations whose fiscal year-ends are other than March 31 are adjusted for transactions having a significant impact on these financial statements. 

**e)   Specific accounting policies**

**Financial assets**

Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. 

*Temporary investments* are recorded at the lower of cost or market. 

*Inventories held for resale* are valued at the lower of cost and net realizable value. 

*Deferred charges* include issue costs and net discounts or premiums incurred on the issue of debt and related derivative instruments. They are recorded at cost and amortized on a straight-line basis over the remaining life of the debt issue. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **87**

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**1.   Significant Accounting Policies *(continued)***

*Loans receivable* are initially recorded at cost. Where there has been a loss in value that is other than a temporary decline, the loan is written down to recognize the loss. Interest is recognized on the accrual basis except when collection is uncertain it is recorded on the cash basis. 

*Other investments* are accounted for by various methods as described below and are written down to their fair value when there is evidence of a permanent decline in value. 

|   | *Equities* are investments in shares of private or public companies. Investments that are subject to significant influence but in which the Government has less than a controlling interest are accounted for by the modified equity method. Using this method, the Government’s investment, which is initially recorded at cost, is adjusted annually for the Government’s share of the investee’s net                earnings or losses and is reduced by dividends and partnership distributions received from these investments. Investments that are not subject to significant influence are recorded at cost, and dividends from these shares are recorded as income when receivable.*Pooled investment funds* are recorded at market value.                All other investments are recorded at amortized cost. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liabilities**

Liabilities are present obligations to individuals and organizations outside the government reporting entity as a result of transactions and events occurring prior to year-end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. They consist of obligations to provide authorized transfers where any eligibility criteria have been met, to repay borrowings, to pay for goods        and services acquired prior to year-end and to deliver goods or services in the future where payment has been received. 

*Unearned revenue* includes externally restricted funding from the federal government and other organizations and individuals. 

*Public debt* is recorded at par, and is comprised of general debt of government service organizations and government business enterprises. General debt of government business enterprises has been transferred from general debt of government service organizations. On the Statement of Financial Position, public debt is presented net of government business enterprise specific debt. 

Premiums, discounts and issue costs are recorded as deferred charges. 

Certain debenture issues require contributions to a sinking fund. These obligations are recorded at principal less sinking fund balances where applicable. Premiums and discounts on long-term investments within these sinking funds are amortized on a constant yield basis. 

Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. 

*Unamortized foreign exchange gain or loss* includes unrealized foreign exchange gains and losses resulting from the conversion of debentures due and sinking funds held in a foreign currency to the Canadian dollar equivalent at the exchange rate in effect at March 31. Unrealized foreign exchange gains and losses are amortized on a straight-line basis over the remaining life of the debt issue. Realized foreign exchange gains and        losses are included in the surplus or deficit. 

*Pension liabilities* are calculated using the projected benefit method prorated on services, except as otherwise disclosed in note 4. Pension fund assets are valued at market related values. Changes in the pension liabilities that result from estimation adjustments due to experience gains and losses and changes in actuarial assumptions are amortized on a straight-line basis over the expected average remaining service life of        the related employee group. Gains or losses resulting from plan amendments are recognized in the period of the plan amendment. 

*Guaranteed debt* includes guarantees of the Government made through specific agreements or legislation to pay all or part of the principal or interest on a debt obligation in the event of default by the borrower. Loss provisions on guaranteed debt are recorded as a liability and an expense when it is likely that a loss will occur. The amount of the loss provision represents the Government’s best estimate of future        payments net of recoveries. 

----

**88**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

**Notes to the Summary Financial Statements**

**1.   Significant Accounting Policies *(continued)***

**Non-financial assets**

Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed in the normal course of operations and are not for sale in the normal course of operations.

*Inventories held for consumption* are recorded at cost and are expensed as they are consumed.

*Tangible capital assets* are recorded at cost and include all amounts directly attributable to the acquisition, construction, development or betterment of the asset. Tangible capital assets are generally amortized on a straight-line basis over the estimated useful life of each asset. 

**Revenue**

Revenues are recorded on the accrual basis. For corporate and individual income taxes, cash received from the federal government is used as the basis for estimating the tax revenue. Government transfers are recognized as revenue in the period during which the transfer is authorized and any eligibility criteria are met.

**Expense**

Expenses are recorded on the accrual basis. Government transfers are recognized as expenses in the period during which the transfer is authorized and any eligibility criteria are met.

**f)   Measurement uncertainty**

Uncertainty in the determination of the amount at which an item is recognized or disclosed in financial statements is known as measurement uncertainty. Such uncertainty exists when there is a variance between the recognized or disclosed amount and another reasonably possible amount.

Measurement uncertainty, disclosed in aggregate for government service organizations and government business enterprises, that may be material to these financial statements exists: 

| • | in pension obligations of $5,391.5 million (2008 — $5,029.1 million), insurance claims obligations of $2,260.9 million (2008 — $2,147.6 million) and environmental obligations of $186.2 million (2008 — $122.2 million) because actual experience may differ significantly from actuarial or historical estimations and assumptions; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in corporate and individual income taxation revenue totalling $2,436.2 million (2008 — $2,611.9 million) because final tax assessments may differ from initial estimates on which cash payments are based; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in oil and natural gas non-renewable resource revenue totalling $1,742.0 million (2008 — $1,380.0 million) because of price and production sensitivities in the royalty revenue structures; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in potash non-renewable resource revenue totalling $1,364.5 million (2008 — $432.8 million) because actual operating profits may differ from initial estimates; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in the Canada Health Transfer and Canada Social Transfer revenue totalling $1,161.8 million (2008 — $1,064.7 million) because of changes in economic and demographic conditions in the Province and the country; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | in unbilled utility revenue of $103.0 million (2008 — $136.1 million) because actual usage may differ from estimated usage. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

While best estimates are used for reporting items subject to measurement uncertainty, it is reasonably possible that changes in future conditions, occurring within one fiscal year, could require a material change in the amounts recognized or disclosed. 

**2.   Temporary Investments**

Temporary investments are recorded at $3,408.8 million (2008 — $3,170.1 million — restated) and are for less than one year. Due to their short-term nature, market value approximates cost. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **89**

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**3.   Risk Management of Public Debt**

The Government borrows funds in both domestic and foreign capital markets by issuing Government of Saskatchewan securities. As a result, the Government is exposed to four types of risk: interest rate risk, foreign exchange rate risk, credit risk and liquidity risk. 

To manage these risks, the Government maintains a preference for fixed rate Canadian dollar denominated debt. Where market conditions dictate that other forms of debt are more attractive, the Government seeks opportunities to use derivative financial instruments to reduce these risks. A derivative financial instrument is a contract, the value of which is based on the value of        another asset or index. 

*Interest rate risk* is the risk that the Government’s debt charges will increase due to changes in interest rates. This risk is managed by issuing debt securities at predominantly fixed rates of interest rather than at floating rates of interest. 

Floating rate debt is defined as the sum of floating rate debentures, short-term promissory notes, fixed rate debt maturing within one year and Saskatchewan Savings Bonds. The Government seeks opportunities to effectively convert floating rate debt into fixed rate debt through the use of interest rate swaps. The Government has interest rate swaps on a notional value of debt of        $78.9 million (2008 — $80.1 million). At March 31, 2009, 87.7 per cent (2008 — 88.6 per cent) of the Government’s gross debt effectively carried a rate of interest that was fixed for greater than a one-year period. 

Public debt includes floating rate debt of $1,384.6 million (2008 — $1,355.5 million). A one percentage point increase in interest rates would decrease the surplus by $13.9 million in 2009-10. 

*Foreign exchange rate risk* is the risk that the Government’s debt charges will increase due to a decline in the value of the Canadian dollar relative to other currencies. This risk is managed by maintaining a preference for issuing debt that is denominated in Canadian dollars. Where debt has been issued in foreign currencies, the Government seeks opportunities to        effectively convert it into Canadian dollar debt through the use of cross currency swaps and foreign currency forward exchange contracts. At March 31, 2009, 96.9 per cent (2008 — 97.3 per cent) of the Government’s gross debt is effectively denominated in Canadian dollars. 

The following foreign-denominated items have been hedged to Canadian dollars using cross currency swaps: 

| • | debentures totalling 1,225.0 million U.S. dollars (2008 - 1,225.0 million) fully hedged to $1,619.3 million Canadian (2008 - $1,619.3 million); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | debentures totalling 300.0 million Swiss francs (2008 — 300.0 million) fully hedged to $274.7 million Canadian (2008 - $274.7 million); and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | interest payments on debentures of 275.0 million U.S. dollars (2008 — 275.0 million) hedged to Canadian dollars at an exchange rate of 1.2325 (2008 — 1.2325). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

In total, the Government has cross currency swaps on a notional value of debt of $2,507.5 million (2008 — $2,507.5 million). The effectiveness of these hedges is assessed on an ongoing basis by monitoring the credit ratings of the counterparties to the hedges. 

*Credit risk* is the risk that a loss may occur from the failure of another party to meet its obligations under a derivative financial instrument contract. This risk is managed by dealing only with counterparties that have good credit ratings and by establishing limits on individual counterparty exposures and monitoring those exposures on a regular basis. At March 31,        2009, 100 per cent (2008 — 100 per cent) of the Government’s counterparties held a Standard and Poor’s credit rating of A or better. 

*Liquidity risk* is the risk that the Government will not be able to meet its financial commitments over the short-term. This risk is managed by distributing debt maturities over many years, maintaining sinking funds on long-term debt issues and maintaining adequate cash reserves and short-term borrowing programs as contingent sources of liquidity. 

**4.   Retirement Benefits**

The Government sponsors several defined benefit and defined contribution pension plans. The Government also participates in a joint defined benefit pension plan. 

*Defined benefit plans* provide benefits based on length of service and pensionable earnings. A typical defined benefit plan provides pensions equal to 2.0 per cent of a member’s average five years highest salary, multiplied by the years of service to a maximum of 35 years. Members contribute a percentage of salary, which may vary based on age, to their plan. Pensions        and contribution rates are integrated with the Canada Pension Plan. 

----

**90**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

**Notes to the Summary Financial Statements**

**4.    Retirement Benefits *(continued)***

Actuarial valuations are performed at least triennially. An actuary extrapolates these valuations when a valuation is not done in the current fiscal year. Valuations are based on a number of assumptions about future events, such as inflation rates, interest rates, wage and salary increases and employee turnover and mortality. These assumptions reflect estimates of expected long-term rates and short-term forecasts. Estimates vary        based on the individual plan. 

The accrued benefit obligation is determined using the projected benefit method prorated on services. Pension fund assets are valued at market related values based on the actual market values averaged over a four year period. In the periods between valuations, the actuary estimates the market related value of pension fund assets using expected long-term rates of return for the individual plans. 

*Joint defined benefit plans* are governed by a formal agreement between the joint sponsors (i.e., employer and plan members), which establishes that the joint sponsors have shared control over the plan. Funding contributions are shared mutually between the employer and plan members. The sponsors share, on an equitable basis, the significant risks of each plan. Accordingly, the Government accounts for only its portion of the        plan. Plan assets and surpluses are restricted for member benefits or certain other purposes set out in the agreement. Plan benefits are determined on the same basis as defined benefit plans. 

The accrued benefit obligation is determined using the projected accrued benefit actuarial cost method. Pension fund assets are valued at market related values by averaging the difference between the net investment income on a market value basis and the expected investment income determined by the actuary, over a five year period. 

*Defined contribution plans* provide pensions based on accumulated contributions and investment earnings. Employees contribute a percentage of salary. The Government provides contributions at specified rates for employee current service. 

Pension fund assets of government sponsored defined benefit and defined contribution plans are invested in fixed income securities, equities, real estate and short-term monetary items. The investment in Government of Saskatchewan securities is insignificant for all plans. 

**Government Service Organizations**

**a)   Defined benefit plans and joint defined benefit plan**

The two main defined benefit plans are the Teachers’ Superannuation Plan (TSP) and the Public Service Superannuation Plan (PSSP). Other plans include Judges of the Provincial Court Superannuation Plan (Judges), Saskatchewan Transportation Company Employees Superannuation Plan (STC), Anti-TB League Employees Superannuation Plan (ATB) and the Saskatchewan Pension Annuity Fund, an annuity underwriting operation. Defined benefits        are also payable to members of the former Members of the Legislative Assembly Superannuation Fund (MLA).

The Government is required to match member current service contributions for all plans except the PSSP and Judges. Separate pension funds are maintained for all plans except the PSSP and the MLA, for which member contributions are received and pension obligations are paid directly by the Government.

The Government also participates in the Saskatchewan Healthcare Employees’ Pension Plan (SHEPP), a joint defined benefit plan for employees of the Regional Health Authorities. The Government contributes to the plan at the ratio of 1.12 to 1 of employee contributions. Any actuarially determined deficiency is the responsibility of participating employers and employees in the ratio of 1.12 to 1. The Government’s        participating employer contributions for the SHEPP represents approximately 92 per cent of the total employer contributions to the plan. 

----

Government of Saskatchewan - 2008-09 Public Accounts   **91**

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**4.   Retirement Benefits *(continued)***

Information on the defined benefit plans and the joint defined benefit plan of government service organizations is as follows:

|                                                                                |   |       |   |       |    |      |    |       |    |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|------------|--------|------------|---------|-----------|---------|------------|---------|--------|--------|--------|--------|
||
||
||
| Plan status                                                                         |   | closed     |   | closed     |    | closed    |  1 | open       |    | n/a    |   | n/a    |   |
| Member contribution rate *(percentage of salary)*                                   |   | 7.85       |   | 7.00-9.00  |  2 | 5.00-9.00 |  2 | 5.85-7.35  |  2 | n/a    |   | n/a    |   |
| Number of active members                                                            |   | 2,255      |   | 1,007      |    | 59        |    | 32,287     |    | 35,608 |   | 35,309 |   |
| Average age of active members *(years)*                                             |   | 54.6       |   | 55.8       |    | 57.3      |    | 45.4       |    | 46.3   |   | 46.4   |   |
| Number of former members entitled to deferred                                       |   |       |   |       |    |      |    |       |    |   |   |   |   |
|     pension benefits                                            |   | 4,780      |   | 104        |    | 12        |    | 1,424      |    | 6,320  |   | 6,426  |   |
| Number of superannuates and surviving spouses                                       |   | 11,109     |   | 5,715      |    | 2,330     |    | 10,018     |    | 29,172 |   | 28,383 |   |
| Actuarial valuation date                                                            |   | June 30/07 |   | Dec. 31/08 |    | Various   |    | Dec. 31/07 |    | n/a    |   | n/a    |   |
| Long-term assumptions used                                                          |   |       |   |       |    |      |    |       |    |   |   |   |   |
|     Rate of compensation increase *(percentage)*                |   | 3.50       |   | 3.50       |    | 3.50      |    | 3.75       |    | n/a    |   | n/a    |   |
|     Expected rate of return on plan assets *(percentage)*       |   | 6.90       |   | n/a        |    | 5.75-6.00 |    | 6.50       |    | n/a    |   | n/a    |   |
|     Discount rate *(percentage)*                                |   | 5.00       |   | 5.25       |    | 4.40-5.40 |    | 6.50       |    | n/a    |   | n/a    |   |
|     Inflation rate *(percentage)*                               |   | 2.50       |   | 2.50       |    | 2.50      |    | 2.75       |    | n/a    |   | n/a    |   |
|     Expected average remaining service life *(years)*           |   | 3.7        |   | 1.5        |    | 1.5-8.0   |    | 11.4       |    | n/a    |   | n/a    |   |
|     Post-retirement index *(percentage of annual*               |   |       |   |       |    |      |    |       |    |   |   |   |   |
|         *increase in Consumer Price Index)* |   | 80         |   | 70         |    | 70-75     |    | Ad hoc     |    | n/a    |   | n/a    |   |

| 1 | Judges is open to new membership; all other plans are closed. |
|---|---------------------------------------------------------------|

| 2 | Contribution rate varies based on age upon joining the plan. |
|---|--------------------------------------------------------------|

----

**b)   Defined contribution plans**

The two main multi-employer defined contribution plans sponsored by the Government are the Public Employees Pension Plan (PEPP) and the Capital Pension Plan (Capital). The Government provides contributions to the plans at specified rates for employee current service. The Government also contributes to the Saskatchewan Teachers’ Retirement Plan (STRP), sponsored by the Saskatchewan Teachers’ Federation and to the Regina        Civic Employees’ Superannuation and Benefit Plan (RCESP). The Government has fully funded its share of contributions to the defined contribution plans. 

Information on the defined contribution plans of government service organizations is as follows: 

|                                                                            |   |      |   |      |   |       |   |   |   |    |   |    |   |
|---------------------------------------------------------------------------------|--------|-----------|--------|-----------|--------|------------|--------|--------|--------|---------|--------|---------|--------|
||
||
||
||
| Plan status                                                                     |   | open      |   | open      |   | open       |   | n/a    |   | n/a     |   | n/a     |   |
| Member contribution rate *(percentage of salary)* 3                        |   | 5.00-9.00 |   | 5.00-7.00 |   | 7.85-13.11 |   | n/a    |   | n/a     |   | n/a     |   |
| Government contribution rate *(percentage of salary)* 3                    |   | 5.00-9.00 |   | 5.50-7.00 |   | 7.85-13.11 |   | n/a    |   | n/a     |   | n/a     |   |
| Government service organization participation                                   |   |      |   |      |   |       |   |   |   |    |   |    |   |
|      Number of active members                          |   | 20,935    |   | 742       |   | 1,444      |   | n/a    |   | 23,121  |   | 22,950  |   |
|      Member contributions *(thousands of dollars)*     |   | 61,918    |   | 2,450     |   | 8,249      |   | n/a    |   | 72,617  |   | 69,822  |   |
|      Government contributions *(thousands of dollars)* |   | 66,224    |   | 3,067     |   | 8,462      |   | 46,150 |   | 123,903 |   | 116,027 |   |

| 1 | Certain employees of a Regional Health Authority participate in the RCESP, a multi-employer defined benefit plan. All costs, including costs of any actuarially determined deficiency, are equally shared by the employees and employers. At December 31, 2008, audited financial statements for the plan reported an accrued benefit obligation of $937.4 million (2007 — $797.9 million) and pension fund                assets at market value of $685.5 million (2007 — $843.8 million). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The STRP is a contributory defined benefit pension plan. The Government contributes an amount which is set through provincial negotiations. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Contribution rate varies based on employee group. |
|---|---------------------------------------------------|

----

**92**  Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

**Notes to the Summary Financial Statements**

**4.   Retirement Benefits *(continued)***

**c)   Pension expense**

Pension expense for government service organizations is primarily allocated to education expense, health expense and other expense. Pension interest expense is included in debt charges. The total pension expense of government service organizations includes the following:

|                                                                                                   |   |    |   |    |   |
|--------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|
||
| Defined benefit plans                                                                                  |   |    |   |    |   |
|      Current period benefit cost                                              |   | 66,047  |   | 74,751  |   |
|      Plan amendment                                                           |   | 2,339   |   | --      |   |
|      Amortization of estimation adjustments                                   |   | 200,647 |   | 246,305 |   |
|      Employee contributions                                                   |   | (17,309 | )      | (19,061 | )      |
|      Cost of financing unfunded pension obligation (pension interest expense) |   | 275,628 |   | 268,399 |   |
| Pension expense, defined benefit plans                                                                 |   | 527,352 |   | 570,394 |   |
| Other plans                                                                                            |   |    |   |    |   |
|      Pension expense, joint defined benefit plan                              |   | 110,423 |   | 46,598  |   |
|      Pension expense, defined contribution plans                              |   | 123,903 |   | 116,027 |   |
| Total Pension Expense                                                                                  |   | 761,678 |   | 733,019 |   |

**Government Business Enterprises**

**a)   Defined benefit plans**

There are additional employee pension plans of government business enterprises which are accounted for in the investment in government business enterprises. The two main defined benefit plans of government business enterprises are the Power Corporation Superannuation Plan (SaskPower) and the Saskatchewan Telecommunications Pension Plan (SaskTel). Other plans include the Saskatchewan Government Insurance Superannuation Plan, the        Liquor Board Superannuation Plan, and the Pension Plan for Employees of the Saskatchewan Workers’ Compensation Board.

The Government contributes the amount necessary to fund the payment of pension benefits. 

Information on the defined benefit plans of government business enterprises is as follows: 

|                                                                                    |   |        |   |       |   |      |   |    |   |    |   |
|-----------------------------------------------------------------------------------------|--------|-------------|--------|------------|--------|-----------|--------|---------|--------|---------|--------|
||
||
||
| Plan status                                                                             |   | closed      |   | closed     |   | closed    |   | n/a     |   | n/a     |   |
| Number of active members                                                                |   | 424         |   | 155        |   | 81        |   | 660     |   | 798     |   |
| Number of former members, superannuates and surviving spouses                           |   | 1,735       |   | 2,077      |   | 438       |   | 4,250   |   | 4,177   |   |
| Member contributions *(thousands of dollars)*                                           |   | 1,560       |   | 749        |   | 287       |   | 2,596   |   | 3,500   |   |
| Government contributions *(thousands of dollars)*                                       |   | 463         |   | 29,599     |   | 730       |   | 30,792  |   | 41,616  |   |
| Benefits paid *(thousands of dollars)*                                                  |   | 44,146      |   | 63,273     |   | 7,691     |   | 115,110 |   | 110,930 |   |
| Actuarial valuation date                                                                |   | Sept. 30/08 |   | Dec. 31/07 |   | Various   |   | n/a     |   | n/a     |   |
| Long-term assumptions used                                                              |   |        |   |       |   |      |   |    |   |    |   |
|      Rate of compensation increase *(percentage)*              |   | 3.50        |   | 3.00       |   | 3.25-3.50 |   | n/a     |   | n/a     |   |
|      Expected rate of return on plan assets *(percentage)*     |   | 6.75        |   | 6.75       |   | 6.25-6.75 |   | n/a     |   | n/a     |   |
|      Discount rate *(percentage)*                              |   | 6.25        |   | 7.50       |   | 6.75-7.50 |   | n/a     |   | n/a     |   |
|      Inflation rate *(percentage)*                             |   | 2.50        |   | 2.50       |   | 2.25-2.50 |   | n/a     |   | n/a     |   |
|      Post-retirement index *(percentage of annual increase in* |   |        |   |       |   |      |   |    |   |    |   |
|         *Consumer Price Index)*                 |   | 70          |   | 100        |   | 50-70     |   | n/a     |   | n/a     |   |

----

Government of Saskatchewan - 2008-09 Public Accounts   **93**

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**4.   Retirement Benefits *(continued)***

Based on the latest actuarial valuation for SaskPower at September 30, 2008 and extrapolations for other plans to December 31, 2008, the present value of accrued pension benefits and the market value of pension fund assets are shown in the table below: 

|                             |   |     |   |    |   |    |   |      |   |      |   |
|----------------------------------|--------|----------|--------|---------|--------|---------|--------|-----------|--------|-----------|--------|
||
||
||
| Accrued benefit obligation       |   | 804,639  |   | 826,770 |   | 109,612 |   | 1,741,021 |   | 1,970,417 |   |
| Fair value of plan assets 1 |   | 698,415  |   | 844,548 |   | 77,931  |   | 1,620,894 |   | 1,977,105 |   |
| Plan Deficit (Surplus)           |   | 106,224  |   | (17,778 | )      | 31,681  |   | 120,127   |   | (6,688    | )      |
| Unamortized amounts 2       |   | (123,285 | )      | (73,740 | )      | (6,597  | )      | (203,622  | )      | (52,966   | )      |
| Valuation allowance              |   | --       |   | --      |   | --      |   | --        |   | 964       |   |
| Pension (Assets) Liabilities     |   | (17,061  | )      | (91,518 | )      | 25,084  |   | (83,495   | )      | (58,690   | )      |

| 1 | At December 31, 2008, 36.1 per cent (2007 — 31.4 per cent) of pension plan assets were invested in fixed income securities and 55.8 per cent (2007 — 57.7 per cent) in equity investments. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Includes unamortized transitional assets, unamortized actuarial gains (losses) and unamortized past service costs. SaskTel’s amounts are amortized against the plan surplus over the average remaining life of retired members of 22 years. SaskPower and the other plans’ amounts are amortized against the plan deficit (surplus) over periods ranging from 1.4 to 3.0 years, which is the expected average                remaining service life of active plan members at the time the amounts arose. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**b)    Defined contribution plans**

Information on the defined contribution plans of government business enterprises is as follows: 

|                                                                      |   |      |   |      |   |   |   |   |   |
|---------------------------------------------------------------------------|--------|-----------|--------|-----------|--------|--------|--------|--------|--------|
||
||
||
| Plan status                                                               |   | open      |   | open      |   | n/a    |   | n/a    |   |
| Member contribution rate *(percentage of salary)* 1                  |   | 4.00-7.00 |   | 4.00-5.50 |   | n/a    |   | n/a    |   |
| Government contribution rate *(percentage of salary)* 1              |   | 6.00-7.00 |   | 5.50-6.00 |   | n/a    |   | n/a    |   |
| Government business enterprise participation                              |   |      |   |      |   |   |   |   |   |
|     Number of active members                          |   | 9,806     |   | 2,721     |   | 12,527 |   | 12,339 |   |
|     Government contributions *(thousands of dollars)* |   | 34,517    |   | 6,830     |   | 41,347 |   | 41,157 |   |

| 1 | Contribution rate varies based on employee group. |
|---|---------------------------------------------------|

----

**c)   Pension expense**

Pension expense and pension interest expense for government business enterprises are included in income from government business enterprises. The pension expense is $6.8 million (2008 — $40.0 million) for the defined benefit plans and $41.3 million (2008 — $41.2 million) for the defined contribution plans. 

**d)   Other future benefit plans**

Other future benefit plans of government business enterprises include a defined benefit severance plan, a supplementary superannuation plan, two defined benefit service recognition plans, a defined benefit retiring allowance plan, and a voluntary early retirement plan. The accrued benefit liability is $83.1 million (2008 — $84.0 million), and the benefit expense is $13.6 million (2008 — $20.3 million). 

**5.   Contingencies**

**Guaranteed debt**

The Government has guaranteed the debt of others of $26.6 million (2008 — $33.4 million). Schedule 10 provides a listing of guaranteed debt. 

**Lawsuits**

Up to $36.2 million may be paid depending on the outcome of lawsuits in progress. 5. Contingencies (continued) 

----

**94**Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements

----

**Notes to the Summary Financial Statements**

**5.   Contingencies *(continued)***

**Other**

The Government has issued a $31.4 million letter of credit as security for outstanding insurance claims. Since being issued, an estimate of $12.5 million has been recorded as the likely cost related to this letter of credit. 

**6.   Contractual Obligations**

Significant contractual obligations include: 

| • | forward purchase agreements of approximately $6,194.3 million for power over the next 19 years, $1,496.0 million for future minimum coal deliveries valued at current prices over the next 15 years and $94.9 million for natural gas purchase agreements over the next two years; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | contracts for the construction and acquisition of tangible capital assets of $1,324.7 million; |
|--------|------------------------------------------------------------------------------------------------|

| • | agreements to provide housing subsidies and transfers of $94.2 million over the next five years; |
|--------|--------------------------------------------------------------------------------------------------|

| • | computer service agreements of $75.7 million over the next four years; |
|--------|------------------------------------------------------------------------|

| • | capital grant projects of $74.0 million over the next 15 years; |
|--------|-----------------------------------------------------------------|

| • | agreements to provide loss of income subsidies to previous purveyors of gaming services of $56.3 million over the next 18 years; |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| • | projects to expand innovation and enhance the competitive ability of the Saskatchewan economy of $32.0 million over the next four years; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| • | agreements for the renewal of the Government’s fire suppression aerial fleet of $31.4 million over the next three years; |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| • | research and development projects for agriculture technology and opportunities in the agri-food industry of $27.2 million over the next five years; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| • | agreements to provide beverage container collection and recycling fees of $21.7 million; |
|--------|------------------------------------------------------------------------------------------|

| • | treaty land entitlement agreements valued at approximately $13.6 million over the next five years, and rural municipality and school division tax loss compensation of approximately $13.0 million as land achieves reserve status over the course of the agreements; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | other contractual obligations of $71.5 million, which consist of $67.6 million for government service organizations and $3.9 million for government business enterprises; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | operating and capital lease obligations as follows: |
|--------|-----------------------------------------------------|

|   |                          |   |   |    |   |   |    |   |
|--------|-------------------------------|--------|--------|---------|--------|--------|---------|--------|
||
|   | Future minimum lease payments |   |   |    |   |   |    |   |
|   | 2009-10                       |   |   | 88,422  |   |   | 15,034  |   |
|   | 2010-11                       |   |   | 79,520  |   |   | 14,233  |   |
|   | 2011-12                       |   |   | 63,474  |   |   | 12,157  |   |
|   | 2012-13                       |   |   | 54,464  |   |   | 8,879   |   |
|   | 2013-14                       |   |   | 41,518  |   |   | 5,581   |   |
|   | Thereafter                    |   |   | 72,157  |   |   | 21,904  |   |
|   |                          |   |   | 399,555 |   |   | 77,788  |   |
|   | Interest and executory costs  |   |   | --      |   |   | (33,462 | )      |
|   | Total Lease Obligations       |   |   | 399,555 |   |   | 44,326  |   |

|   | 1 | Total operating lease obligations include $255.8 million for government service organizations and $143.8 million for government business enterprises. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2 | Total capital lease obligations include $36.5 million for government service organizations (schedule 6) and $7.8 million for government business enterprises. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

**7.   Government Partnerships**

The Government has entered into various contractual arrangements with parties outside the government reporting entity that result in shared control of certain organizations. The Government’s holdings in government partnerships include: 

| • | a 60 per cent interest in Apex Investment Limited Partnership, which invests in a variety of industries in the prairie region of Canada; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| • | a 50 per cent interest in Meadow Lake Pulp Limited Partnership (MLPLP), which operated a pulp mill near Meadow Lake; |
|--------|----------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts **95**

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**7.   Government Partnerships *(continued)***

| • | a 45.5 per cent interest in Saskatchewan Entrepreneurial Fund Joint Venture, which assists with the development and growth of small business in the province; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a 33.3 per cent interest in Foragen Technologies Limited Partnership, a venture capital fund which provides seed capital to technology corporations; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | shared control of Prairie Diagnostic Services Inc., which provides veterinary diagnostic services to veterinary and livestock industries in the province. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

The remaining assets of MLPLP were sold during 2007-08 and it was placed into receivership. The Government continues to hold its partnership interest in MLPLP and expects, as the senior secured creditor, that it will be paid any remaining cash upon being wound up. 

The Government’s pro-rata share of its government partnerships is as follows: 

|                                                              |   |   |   |   |   |   |    |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|
||
|                                                              |   |   |   |   |   |   |    |   |
| Financial assets                                                  |   |   |   | 39,923 |   |   | 32,026  |   |
| Liabilities                                                       |   |   |   | 6,806  |   |   | 7,175   |   |
| Net assets                                                        |   |   |   | 33,117 |   |   | 24,851  |   |
| Non-financial assets                                              |   |   |   | 903    |   |   | 1,030   |   |
| Accumulated surplus                                               |   |   |   | 34,020 |   |   | 25,881  |   |
| Revenue                                                           |   |   |   | 3,103  |   |   | 33,630  |   |
| Expense                                                           |   |   |   | 1,830  |   |   | 31,848  |   |
| Surplus                                                           |   |   |   | 1,273  |   |   | 1,782   |   |
| Recovery of partnership interest                                  |   |   |   | 181    |   |   | 1,165   |   |
| Accumulated partnership earnings, beginning of year               |   |   |   | 7,077  |   |   | 21,439  |   |
| Decrease in accumulated partnership earnings, beginning of year 1 |   |   |   | --     |   |   | (17,309 | )      |
| Accumulated partnership earnings, end of year                     |   |   |   | 8,531  |   |   | 7,077   |   |
| Equity advances from government organizations                     |   |   |   | 25,489 |   |   | 18,804  |   |
| Accumulated surplus                                               |   |   |   | 34,020 |   |   | 25,881  |   |

| 1 | The 2007-08 decrease in accumulated partnership earnings, beginning of year consists of $9.3 million reclassified from other investments and proceeds of $8.0 million on the disposition of assets held for sale. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**8.   Non-controlling Interest**

Certain government service organizations are controlled by the Government, but also have ownership by individuals or organizations outside of the government reporting entity; that is, they have a non-controlling interest. The following non-controlling interests, amounting to $19.1 million (2008 — $27.5 million) in accumulated surplus, have been excluded from these financial statements: 

| • | 37.1 per cent (2008 - 37.1 per cent) of Big Sky Farms Inc., and |
|--------|-----------------------------------------------------------------|

| • | 49.2 per cent (2008 - 49.2 per cent) of Prairie Ventures Limited Partnership. |
|--------|-------------------------------------------------------------------------------|

Both of these entities are subsidiaries of Investment Saskatchewan Inc. 

**9.   Trust Funds**

Trust fund assets held and administered by the Government are as follows: 

|                                        |   |   |   |      |   |   |       |   |
|---------------------------------------------|--------|--------|--------|-----------|--------|--------|------------|--------|
||
||
| Pension plans                               |   |   |   | 9,157,725 |   |   | 10,911,540 |   |
| Public Guardian and Trustee of Saskatchewan |   |   |   | 140,575   |   |   | 154,451    |   |
| Other                                       |   |   |   | 218,784   |   |   | 211,041    |   |
| Total Trust Fund Assets 1                   |   |   |   | 9,517,084 |   |   | 11,277,032 |   |

| 1 | Amounts are based on the latest financial statements of the funds closest to March 31, 2009, where available. |
|---|---------------------------------------------------------------------------------------------------------------|

----

**96**Government of Saskatchewan - 2008-09 Public Accounts

----

----

Summary Financial Statements 

----

**Notes to the Summary Financial Statements**

**10.   Accounting Change**

During 2008-09, it was determined that certain debt of government business enterprises was not borrowed specifically on their behalf. Loans receivable, public debt, interest revenue and debt charges related to this general debt of government business enterprises had been presented on a net basis in error. The Government has retroactively restated the comparative figures. The effect of this restatement on the Summary Statement of        Financial Position is an increase in loans receivable and public debt of $392.5 million (2008 — $265.5 million) and on the Summary Statement of Operations is an increase in interest revenue and debt charges of $7.9 million (2008 — $2.2 million). In the disclosure of public debt *(schedule 8)* $392.5 million (2008 — $265.5 million) has been reclassified from government business enterprise specific debt to general debt. 

During 2007-08, the Government acquired a controlling interest in Big Sky Farms Inc. (Big Sky) and, accordingly, has proportionately consolidated its 62.9 per cent ownership interest through Big Sky’s parent company, Investment Saskatchewan Inc. Prior to owning a controlling interest, the Government accounted for its investment in Big Sky using the modified equity method. 

The net effect of these accounting changes on the comparative figures is as follows: 

|                                                  |   |   |   |    |   |   |     |   |   |     |   |
|-------------------------------------------------------|--------|--------|--------|---------|--------|--------|----------|--------|--------|----------|--------|
||
||
| Financial assets                                      |   |   |   |    |   |   |     |   |   |     |   |
|      Loans receivable        |   |   |   | 265,500 |   |   | --       |   |   | 265,500  |   |
|      Other investments       |   |   |   | --      |   |   | (41,810  | )      |   | (41,810  | )      |
|      Other                   |   |   |   | --      |   |   | 6,963    |   |   | 6,963    |   |
| Liabilities                                           |   |   |   |    |   |   |     |   |   |     |   |
|      Public debt             |   |   |   | 265,500 |   |   | 46,479   |   |   | 311,979  |   |
|      Other                   |   |   |   | --      |   |   | 19,965   |   |   | 19,965   |   |
| Net debt                                              |   |   |   | --      |   |   | (101,291 | )      |   | (101,291 | )      |
| Non-financial assets                                  |   |   |   |    |   |   |     |   |   |     |   |
|      Tangible capital assets |   |   |   | --      |   |   | 78,819   |   |   | 78,819   |   |
|      Other                   |   |   |   |    |   |   | 22,472   |   |   | 22,472   |   |
| Accumulated deficit                                   |   |   |   | --      |   |   | --       |   |   | --       |   |

**11.   Adjustment to Net Debt**

During 2008-09, it was determined that land held for resale is more appropriately classified as tangible capital assets because this land is not expected to be sold within the next year. This change has been applied retroactively with restatement. As a result, net debt at April 1, 2007 has increased by $113.2 million. The effect of this restatement is a $93.3 million (2008 — $108.8 million) decrease in inventories held for        resale and a corresponding increase in tangible capital assets. 

**12.   Adjustment to Accumulated Deficit**

During 2007-08, adjustments of $121.1 million were made to the accumulated deficit. Various government business enterprises adopted new standards of accounting for financial instruments recommended by the Canadian Institute of Chartered Accountants, resulting in an increase in investment in government business enterprises of $121.1 million and a corresponding decrease in the accumulated deficit. 

**13.   Comparative Figures**

Certain 2008 comparative figures have been reclassified to conform with the current year’s presentation. 

----

Government of Saskatchewan - 2008-09 Public Accounts **97**

----

----

Summary Financial Statements 

----

| **Accounts Receivable**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   | Schedule 1 |    |
|---------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|---------|
||
||
| Taxation                                                            |   |   |   | 186,908   |   |       | 192,210 |   |
| Non-renewable resources                                             |   |   |   | 405,874   |   |       | 230,618 |   |
| Other own-source revenue                                            |   |   |   | 482,780   |   |       | 465,290 |   |
| Transfers from the federal government                               |   |   |   | 108,856   |   |       | 101,577 |   |
|                                                                |   |   |   | 1,184,418 |   |       | 989,695 |   |
| Provision for loss                                                  |   |   |   | (76,157   | )      |       | (76,782 | ) |
| **Total Accounts Receivable**                                       |   |   |   | 1,108,261 |   |       | 912,913 |   |

| **Loans Receivable**As at March 31, 2009*(thousands of dollars)* |   |   |   |    |   | Schedule 2 |    |
|------------------------------------------------------------------|--------|--------|--------|---------|--------|------------|---------|
||
||
| Government business enterprises                                  |   |   |   | 392,462 |   |       | 265,500 |   |
| Student loans                                                    |   |   |   | 129,125 |   |       | 135,416 |   |
| Agricultural loans                                               |   |   |   | 58,248  |   |       | 43,541  |   |
| Other                                                            |   |   |   | 25,244  |   |       | 25,330  |   |
|                                                             |   |   |   | 605,079 |   |       | 469,787 |   |
| Provision for loss                                               |   |   |   | (72,709 | )      |       | (75,644 | ) |
| **Total Loans Receivable**                                       |   |   |   | 532,370 |   |       | 394,143 |   |

**Government Business Enterprises**

Loans to government business enterprises are presented net of government business enterprise specific debt of $3.0 billion (2008 — $2.9 billion). The 2008 amounts have been restated as disclosed in note 10. 

*SaskEnergy Incorporated*

The Government has $222.5 million (2008 — $100.5 million) in loans receivable from SaskEnergy Incorporated. Of this, $170.0 million (2008 — nil) is repayable over terms not exceeding 32 years and bears interest at rates between 4.5 and 4.9 per cent. The remaining $52.5 million (2008 — $100.5 million) is repayable on demand at a floating rate of interest. 

*Saskatchewan Power Corporation*

The Government has $140.0 million (2008 — $165.0 million) in loans receivable from Saskatchewan Power Corporation. Of this, $100.0 million (2008 — nil) is repayable over a term not exceeding 32 years and bears interest at 4.8 per cent. The remaining $40.0 million (2008 — $165.0 million) is repayable on demand at a floating rate of interest. 

*Other government business enterprise loans*

The Government has $30.0 million (2008 — nil) in loans receivable from other government business enterprises. The loans are repayable on demand at a floating rate of interest. 

----

**98**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

**Loans Receivable*****(continued)*                                                                                                                                                                      Schedule 2**

**Student Loans**

The program operates under the authority of *The Student Assistance and Student Aid Fund Act, 1985*. Loans are interest-free until the discontinuance of full-time studies or graduation. Interest rates are prescribed by the Government. Student bursaries, study grants and other varieties of loan forgiveness are available to students who meet specific criteria. 

The administration and delivery of the federal and provincial student loans programs is integrated. The Government approves applications for both provincial and federal loans, external agencies are contracted to disburse, administer and collect loans, and the federal government is responsible for collection of loans in default. 

Student loans approved between August 1996 and July 2001 are lender-financed, disbursed, managed and collected by a bank. The Government retained responsibility for loan approval during this period, and pays a risk premium of 5.0 per cent to the bank when loans become repayable. 

A loss provision of $45.6 million (2008 — $50.5 million) has been recorded on these loans. 

**Agricultural Loans**

*Short-term cattle loan program*        The Government holds $19.3 million (2008 — nil) in loans under the Short-term cattle loan program. These loans are repayable over terms not exceeding four years at a floating rate of interest between 0.7 and 2.8 per cent. The loans are secured by general security agreements. The program operates under *The Agricultural Credit Corporation of Saskatchewan Act.* A loss provision of $2.9 million (2008 — nil) has been recorded on these loans. 

*Capital loan program*        The Government holds $17.7 million (2008 — $23.1 million) in loans under the Capital loan program. These loans are repayable over terms not exceeding 25 years and bear interest at rates between 5.0 and 13.5 per cent (2008 — 5.0 and 13.5 per cent). Security on individual loans varies and may include mortgages on real property, security agreements and guarantees. The program operates under *The Agricultural Credit Corporation of Saskatchewan Act*. A loss provision of $3.4        million (2008 — $4.6 million) has been recorded on these loans. 

*Short-term hog loan program*        The Government holds $12.8 million (2008 — $11.5 million) in loans under the Short-term hog loan program. These loans are repayable over terms not exceeding five years at a floating rate of interest between 0.7 and 2.8 per cent (2008 — 3.3 to 4.6 per cent). The loans are secured by general security agreements. The program operates under *The Farm Financial Stability Act*. A loss provision of $8.7 million (2008 — $8.1 million) has been recorded on these loans.        

*Other agricultural loans*        The Government holds $8.5 million (2008 — $8.9 million) in loans under various other agricultural loan programs. The interest on these loans ranges from 5.0 to 10.5 per cent (2008 — 5.0 to 10.5 per cent). Generally, the loans are secured by promissory notes and, where applicable, by guarantees or general security arrangements. A loss provision of $6.5 million (2008 — $6.9 million) has been recorded on these loans. 

**Other**

The Government’s loan portfolio also consists of numerous other loans at various interest rates with maturities not exceeding 17 years. Security on the loans may include promissory notes or charges against residential property. A loss provision of $5.6 million (2008 — $5.5 million) has been recorded on these loans. 

----

Government of Saskatchewan - 2008-09 Public Accounts **99**

----

----

Summary Financial Statements 

----

| **Investment in Government Business Enterprises**As at March 31, 2009*(thousands of dollars)* |
|-----------------------------------------------------------------------------------------------|
||
| **Assets**                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and temporary investments                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Due from government organizations                                     |   |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|     Other                                                                 |   |   |   | 4,192 |   |   | 5,835 |   |   | 3,808 |   |   | 12,299 |   |   | 1,561 |   |
| Accounts receivable                                                                           |   |   |   | 162,714 |   |   | 180,557 |   |   | 91,375 |   |   | 98,528 |   |   | 149,473 |   |
| Inventories                                                                                   |   |   |   | 250,502 |   |   | 146,764 |   |   | 8,521 |   |   | -- |   |   | 3,585 |   |
| Prepaid expenses                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Paid to government organizations                                      |   |   |   | -- |   |   | -- |   |   | -- |   |   | 7,598 |   |   | 13,791 |   |
|     Other                                                                 |   |   |   | -- |   |   | 7,540 |   |   | 18,462 |   |   | 76,416 |   |   | 8,603 |   |
| Long-term investments                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     In government organizations                                           |   |   |   | -- |   |   | -- |   |   | -- |   |   | 7,910 |   |   | 18,972 |   |
|     Other                                                                 |   |   |   | 27,490 |   |   | 31,154 |   |   | 2,471 |   |   | 499,373 |   |   | 1,091,029 |   |
| Capital assets                                                                                |   |   |   | 1,008,279 |   |   | 3,901,435 |   |   | 936,723 |   |   | 9,336 |   |   | 52,874 |   |
| Sinking funds *(schedule 8)*                                                                  |   |   |   | 47,523 |   |   | 212,232 |   |   | 62,540 |   |   | -- |   |   | -- |   |
| Other assets                                                                                  |   |   |   | 59,444 |   |   | 34,643 |   |   | 236,850 |   |   | 5,885 |   |   | 2,775 |   |
| **Total Assets**                                                                              |   |   |   | 1,560,144 |   |   | 4,520,160 |   |   | 1,360,750 |   |   | 717,345 |   |   | 1,342,663 |   |
| **Liabilities**                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Due to government organizations                                       |   |   |   | 8,926 |   |   | 59,685 |   |   | 4,460 |   |   | 25,015 |   |   | 30,637 |   |
|     Other                                                                 |   |   |   | 126,705 |   |   | 156,928 |   |   | 108,500 |   |   | 19,568 |   |   | 21,982 |   |
| Dividends payable to government organizations                                                 |   |   |   | 6,132 |   |   | 7,440 |   |   | 26,612 |   |   | 7,407 |   |   | -- |   |
| Gross debt *(schedule 8)*                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Owing to government organizations                                     |   |   |   | 911,019 |   |   | 2,494,913 |   |   | 355,821 |   |   | -- |   |   | -- |   |
|     Other                                                                 |   |   |   | 5,835 |   |   | 83,401 |   |   | 6,982 |   |   | -- |   |   | -- |   |
| Unearned revenue                                                                              |   |   |   | -- |   |   | -- |   |   | 64,227 |   |   | 198,557 |   |   | 282,467 |   |
| Unpaid insurance claims                                                                       |   |   |   | -- |   |   | -- |   |   | -- |   |   | 287,103 |   |   | 899,390 |   |
| Other liabilities                                                                             |   |   |   | 69,297 |   |   | 189,249 |   |   | 9,006 |   |   | 1,862 |   |   | -- |   |
| **Total Liabilities**                                                                         |   |   |   | 1,127,914 |   |   | 2,991,616 |   |   | 575,608 |   |   | 539,512 |   |   | 1,234,476 |   |
| **Net Assets**                                                                                |   |   |   | 432,230 |   |   | 1,528,544 |   |   | 785,142 |   |   | 177,833 |   |   | 108,187 |   |
| **Revenue**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From government organizations                                                                 |   |   |   | 21,605 |   |   | 40,474 |   |   | 79,359 |   |   | -- |   |   | 4,626 |   |
| Other                                                                                         |   |   |   | 1,295,118 |   |   | 1,558,636 |   |   | 1,063,260 |   |   | 358,430 |   |   | 634,048 |   |
| **Total Revenue**                                                                             |   |   |   | 1,316,723 |   |   | 1,599,110 |   |   | 1,142,619 |   |   | 358,430 |   |   | 638,674 |   |
| **Expense**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Paid and owing to government organizations                                                    |   |   |   | 60,969 |   |   | 257,862 |   |   | 112,330 |   |   | 14,280 |   |   | 49,094 |   |
| Other                                                                                         |   |   |   | 1,226,563 |   |   | 1,277,783 |   |   | 906,831 |   |   | 303,799 |   |   | 632,203 |   |
| **Total Expense 5**                                                                           |   |   |   | 1,287,532 |   |   | 1,535,645 |   |   | 1,019,161 |   |   | 318,079 |   |   | 681,297 |   |
| Income (loss) before non-recurring items                                                      |   |   |   | 29,191 |   |   | 63,465 |   |   | 123,458 |   |   | 40,351 |   |   | (42,623 | ) |
| Non-recurring items                                                                           |   |   |   | -- |   |   | -- |   |   | (2,080 | ) |   | -- |   |   | (68 | ) |
| **Net Income (Loss)**                                                                         |   |   |   | 29,191 |   |   | 63,465 |   |   | 121,378 |   |   | 40,351 |   |   | (42,691 | ) |
| Retained earnings, beginning of year                                                          |   |   |   | 379,204 |   |   | 853,008 |   |   | 492,660 |   |   | 94,028 |   |   | 172,000 |   |
| Effect of prior period adjustment *(note 12)*                                                 |   |   |   | (1,799 | ) |   | (465 | ) |   | -- |   |   | -- |   |   | -- |   |
| Transfer of net assets to government organizations                                            |   |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
| Dividends to government organizations                                                         |   |   |   | (42,900 | ) |   | (46,007 | ) |   | (78,896 | ) |   | (26,228 | ) |   | -- |   |
| Retained earnings, end of year                                                                |   |   |   | 363,696 |   |   | 870,001 |   |   | 535,142 |   |   | 108,151 |   |   | 129,309 |   |
| Equity advances from government organizations                                                 |   |   |   | 71,531 |   |   | 659,993 |   |   | 250,000 |   |   | 80,000 |   |   | -- |   |
| Accumulated other comprehensive (loss) income 6                                               |   |   |   | (2,997 | ) |   | (1,450 | ) |   | -- |   |   | (10,318 | ) |   | (21,122 | ) |
| **Net Assets**                                                                                |   |   |   | 432,230 |   |   | 1,528,544 |   |   | 785,142 |   |   | 177,833 |   |   | 108,187 |   |

| 1 | Net assets are restricted as disclosed on page 102. |
|---|-----------------------------------------------------|

| 2 | During 2008-09, the year-end of the Saskatchewan Gaming Corporation (SGC) was changed from March 31 to December 31. Accordingly, the results reported represent nine months of operations ending December 31, 2008. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Saskatchewan Government Growth Fund Management Corporation (SGGF) was dissolved during 2008-09 and its net assets were transferred to Crown Investments Corporation of Saskatchewan. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Adjustments include: |
|---|----------------------|

|   | • | reclassifying dividends paid by March 31, 2009; |
|--------|--------|-------------------------------------------------|

|   | • | reversing losses recognized by government business enterprises on transactions with government organizations; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | • | transferring SGGF’s net assets on dissolution. |
|--------|--------|------------------------------------------------------|

| 5 | Total expense includes debt charges, net of sinking fund earnings, of $222.8 million (2008 — $243.8 million). Interest in the amount of $219.8 million (2008 — $239.7 million) was paid to government organizations. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Accumulated other comprehensive (loss) income consists primarily of market value adjustments on investments and includes a $353.1 million other comprehensive loss (2008 — $129.4 million other comprehensive loss and $116.7 million adjustment to the accumulated deficit — note 12). The other comprehensive loss consists of $396.1 million (2008 — $3.8 million) net unrealized loss and $43.0 million                net realized loss (2008 — $125.6 million net realized gain) recognized in net income. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**100**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   | Schedule 3 |       |
|--------|-----------|--------|--------|----------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|------------|--------|------------|------------|
||
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |        |    |   |   |       |   |       |       |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | --        |   |   | 39,645   |   |   | --      |   |   | 1,646  |   |   | --     |   |   | --      |   |   | 41,291     |   |       | 46,461     |   |
|   | 56,343    |   |   | 5,251    |   |   | 23,780  |   |   | --     |   |   | 1,484  |   |   | (54,373 | )      |   | 60,180     |   |       | 176,574    |   |
|   | 25,720    |   |   | 44,492   |   |   | 918     |   |   | 1,105  |   |   | 72     |   |   | (72     | )      |   | 754,882    |   |       | 723,060    |   |
|   | --        |   |   | 26,059   |   |   | 276     |   |   | --     |   |   | --     |   |   | --      |   |   | 435,707    |   |       | 382,037    |   |
|   | --        |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | 21,389     |   |       | 19,735     |   |
|   | 175       |   |   | 606      |   |   | 205     |   |   | --     |   |   | --     |   |   | --      |   |   | 112,007    |   |       | 112,525    |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | 10,354    |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | 37,236     |   |       | 17,694     |   |
|   | 1,052,437 |   |   | --       |   |   | --      |   |   | 48,851 |   |   | 39     |   |   | (39     | )      |   | 2,752,805  |   |       | 2,967,282  |   |
|   | 17,105    |   |   | 55,433   |   |   | 56,858  |   |   | --     |   |   | --     |   |   | --      |   |   | 6,038,043  |   |       | 5,865,175  |   |
|   | --        |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | 755     |   |   | 323,050    |   |       | 337,114    |   |
|   | 8,589     |   |   | --       |   |   | --      |   |   | 64     |   |   | --     |   |   | 804     |   |   | 349,054    |   |       | 230,069    |   |
|   | 1,170,723 |   |   | 171,486  |   |   | 82,037  |   |   | 51,666 |   |   | 1,595  |   |   | (52,925 | )      |   | 10,925,644 |   |       | 10,877,726 |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | 9,106     |   |   | --       |   |   | 5,801   |   |   | --     |   |   | --     |   |   | --      |   |   | 143,630    |   |       | 143,541    |   |
|   | 12,504    |   |   | 19,954   |   |   | 8,896   |   |   | 393    |   |   | 244    |   |   | (244    | )      |   | 475,430    |   |       | 488,036    |   |
|   | --        |   |   | 113,709  |   |   | 5,298   |   |   | --     |   |   | --     |   |   | (52,889 | )      |   | 113,709    |   |       | 138,477    |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | --        |   |   | --       |   |   | --      |   |   | 37,275 |   |   | --     |   |   | 755     |   |   | 3,799,783  |   |       | 3,640,205  |   |
|   | --        |   |   | --       |   |   | 20,618  |   |   | --     |   |   | --     |   |   | --      |   |   | 116,836    |   |       | 125,116    |   |
|   | --        |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | 545,251    |   |       | 504,339    |   |
|   | 969,545   |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | 2,156,038  |   |       | 2,064,915  |   |
|   | 158,921   |   |   | 37,823   |   |   | 7,789   |   |   | --     |   |   | --     |   |   | --      |   |   | 473,947    |   |       | 376,756    |   |
|   | 1,150,076 |   |   | 171,486  |   |   | 48,402  |   |   | 37,668 |   |   | 244    |   |   | (52,378 | )      |   | 7,824,624  |   |       | 7,481,385  |   |
|   | 20,647    |   |   | --       |   |   | 33,635  |   |   | 13,998 |   |   | 1,351  |   |   | (547    | )      |   | 3,101,020  |   |       | 3,396,341  |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | 20,991    |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | 167,055    |   |       | 169,600    |   |
|   | 239,984   |   |   | 966,411  |   |   | 105,158 |   |   | 2,221  |   |   | 467    |   |   | (342    | )      |   | 6,223,391  |   |       | 6,077,989  |   |
|   | 260,975   |   |   | 966,411  |   |   | 105,158 |   |   | 2,221  |   |   | 467    |   |   | (342    | )      |   | 6,390,446  |   |       | 6,247,589  |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | 13,508    |   |   | --       |   |   | 19,151  |   |   | 1,290  |   |   | --     |   |   | 94      |   |   | 528,578    |   |       | 487,049    |   |
|   | 236,580   |   |   | 519,882  |   |   | 66,856  |   |   | 25     |   |   | 1,409  |   |   | 2,676   |   |   | 5,174,607  |   |       | 4,815,222  |   |
|   | 250,088   |   |   | 519,882  |   |   | 86,007  |   |   | 1,315  |   |   | 1,409  |   |   | 2,770   |   |   | 5,703,185  |   |       | 5,302,271  |   |
|   | 10,887    |   |   | 446,529  |   |   | 19,151  |   |   | 906    |   |   | (942   | )      |   | (3,112  | )      |   | 687,261    |   |       | 945,318    |   |
|   | --        |   |   | --       |   |   | --      |   |   | --     |   |   | 200    |   |   | --      |   |   | (1,948     | )      |       | (1,752     | ) |
|   | 10,887    |   |   | 446,529  |   |   | 19,151  |   |   | 906    |   |   | (742   | )      |   | (3,112  | )      |   | 685,313    |   |       | 943,566    |   |
|   | 156,309   |   |   | 61       |   |   | --      |   |   | 13,092 |   |   | 2,092  |   |   | 1,707   |   |   | 2,164,161  |   |       | 1,860,849  |   |
|   | --        |   |   | 62       |   |   | --      |   |   | --     |   |   | --     |   |   | 2,202   |   |   | --         |   |       | 4,358      |   |
|   |      |   |   |     |   |   |    |   |   |   |   |   |   |   |   |    |   |   |       |   |       |       |   |
|   | --        |   |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | (1,350  | )      |   | (1,350     | )      |       | --         |   |
|   | --        |   |   | (446,652 | )      |   | (15,321 | )      |   | --     |   |   | --     |   |   | --      |   |   | (656,004   | )      |       | (644,612   | ) |
|   | 167,196   |   |   | --       |   |   | 3,830   |   |   | 13,998 |   |   | 1,350  |   |   | (553    | )      |   | 2,192,120  |   |       | 2,164,161  |   |
|   | --        |   |   | --       |   |   | 29,805  |   |   | --     |   |   | 1      |   |   | 6       |   |   | 1,091,336  |   |       | 1,061,532  |   |
|   | (146,549  | )      |   | --       |   |   | --      |   |   | --     |   |   | --     |   |   | --      |   |   | (182,436   | )      |       | 170,648    |   |
|   | 20,647    |   |   | --       |   |   | 33,635  |   |   | 13,998 |   |   | 1,351  |   |   | (547    | )      |   | 3,101,020  |   |       | 3,396,341  |   |

----

Government of Saskatchewan - 2008-09 Public Accounts **101**

----

----

Summary Financial Statements 

----

**Investment in Government Business Enterprises*****(continued)*                                                                                                 Schedule 3**

**SaskEnergy Incorporated (SaskEnergy)**

SaskEnergy promotes, transports, stores and distributes natural gas in Saskatchewan. 

**Saskatchewan Power Corporation (SaskPower)**

SaskPower generates, purchases, transmits, distributes and sells electricity and related products and services. 

**Saskatchewan Telecommunications Holding Corporation (SaskTel)**

SaskTel markets and supplies a range of voice, data, internet, wireless, text, image and entertainment products, systems and services. Through interconnection agreements, SaskTel is part of the national and global communications network. 

**Saskatchewan Government Insurance (SGI) and Saskatchewan Auto Fund (Auto Fund)**

SGI’s competitive general insurance business, SGI CANADA, offers a comprehensive line of home, tenant, farm, automobile extension and commercial coverages. 

The Auto Fund, the provincial compulsory vehicle insurance program, is administered by SGI on behalf of the Government. Any net assets of the Auto Fund are held on behalf of Saskatchewan’s motoring public and cannot be used for any other purpose. 

**Workers’ Compensation Board (Saskatchewan) (WCB)**

WCB provides workers’ compensation insurance to Saskatchewan workers and employers. Any net assets of the WCB cannot be used for any other purpose. 

**Liquor and Gaming Authority (SLGA)**

SLGA’s main functions are to control the manufacture and distribution of beverage alcohol throughout the Province, to oversee the licensing of all establishments selling alcohol in the Province and to maintain the integrity of all licensed gaming while ensuring maximum benefit to Saskatchewan charities. 

**Saskatchewan Gaming Corporation (SGC)**

SGC manages and operates Casino Regina and Casino Moose Jaw. 

**Municipal Financing Corporation of Saskatchewan (MFC)**

MFC assists municipalities in financing their capital requirements. 

**Saskatchewan Government Growth Fund Management Corporation (SGGF)**

SGGF was a participant in the federal government’s Immigrant Investor Program to acquire lower cost capital for commercial investment in Saskatchewan. Investment funds were raised through seven subsidiary fund companies and are managed by Crown Capital Partners Inc., a fund manager. A significant number of subscribers have yet to complete their subscription requirements and the funds will require management for at least the        next three years. SGGF was dissolved March 31, 2009 by order-in-council and all assets and liabilities were transferred to Crown Investments Corporation of Saskatchewan. 

----

**102**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Other Investments**As at March 31, 2009*(thousands of dollars)* |   |   |   |    |   | Schedule 4 |    |
|-------------------------------------------------------------------|--------|--------|--------|---------|--------|------------|---------|
||
||
| Equities                                                          |   |   |   |    |   |       |    |   |
| *Subject to significant influence*                                |   |   |   |    |   |       |    |   |
|     Meadow Lake OSB Limited Partnership       |   |   |   | 27,700  |   |       | 28,734  |   |
|     Saskferco Products Inc.                   |   |   |   | --      |   |       | 134,708 |   |
|     Other                                     |   |   |   | 27,557  |   |       | 19,958  |   |
| *Other*                                                           |   |   |   |    |   |       |    |   |
|     Wave Energy Ltd.                          |   |   |   | 11,999  |   |       | --      |   |
|     Premium Brands Income Fund                |   |   |   | 10,171  |   |       | 10,759  |   |
|     Other                                     |   |   |   | 84,355  |   |       | 72,430  |   |
|                                                              |   |   |   | 161,782 |   |       | 266,589 |   |
| Bonds and debentures                                              |   |   |   | 664,973 |   |       | 150,252 |   |
| Loans and advances                                                |   |   |   | 27,781  |   |       | 43,327  |   |
| Pooled investment funds                                           |   |   |   | 28,742  |   |       | 33,874  |   |
| Other                                                             |   |   |   | 39,255  |   |       | 28,386  |   |
| **Total Other Investments**                                       |   |   |   | 922,533 |   |       | 522,428 |   |

**Equities**

Equities include $117.0 million (2008 — $224.7 million) invested in shares of private companies and $44.8 million (2008 — $41.9 million) invested in Canadian and international equity markets for which the quoted market value is $41.2 million (2008 — $63.9 million). 

*Meadow Lake OSB Limited Partnership (ML OSB)*        The Government is a limited partner in ML OSB, an oriented strand board facility near Meadow Lake. The Government holds a 25 per cent interest in ML OSB. The Government has issued options to purchase its units of ML OSB, which, if exercised, would reduce the Government’s interest to 6.8 per cent. 

*Saskferco Products Inc. (Saskferco)*        During the year, the Government sold its 49.5 per cent interest in Saskferco. The sale resulted in net proceeds of $815.6 million, generating a gain on sale of $679.8 million. 

*Wave Energy Ltd.*        During the year, the Government made a $12.0 million investment in Wave Energy Ltd., a private oil and gas exploration and development company with significant land holdings in Saskatchewan, Alberta, and Montana. 

*Premium Brands Income Fund*        The Government owns units in Premium Brands Income Fund with a quoted market value of $10.0 million (2008 — $17.6 million). Premium Brands Income Fund owns a broad range of leading branded specialty food businesses with manufacturing and distribution facilities located throughout Western Canada, including Yorkton, Saskatchewan. 

**Bonds and Debentures**

Bonds and debentures are comprised of Government of Canada, provincial, municipal and corporate bonds having a market value of $688.2 million (2008 — $152.3 million), and include Government of Saskatchewan securities of $13.8 million (2008 — $5.4 million). 

**Loans and Advances**

Loans and advances include loan agreements between the Government and companies in which the Government holds shares. 

----

Government of Saskatchewan - 2008-09 Public Accounts **103**

----

----

Summary Financial Statements 

----

**Other Investments*****(continued)*                                                                                                                                                                       Schedule 4**

**Pooled Investment Funds**

Pooled investment funds represent the Government’s investment in units of various funds consisting primarily of debt and equities. 

**Other**

Other investments include various fixed rate securities having a market value of $40.2 million (2008 — $28.7 million). 

----

**104**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Accounts Payable and Accrued Liabilities**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   | Schedule 5 |      |
|------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|-----------|
||
||
| Transfers                                                                                |   |   |   |      |   |       |      |   |
|    Operating 1                                                            |   |   |   | 614,524   |   |       | 439,418   |   |
|    Capital                                                                |   |   |   | 295,071   |   |       | 73,314    |   |
| Accrued salaries and benefits                                                            |   |   |   | 417,978   |   |       | 386,972   |   |
| Supplier payments                                                                        |   |   |   | 308,919   |   |       | 300,831   |   |
| Equalization and Canada Health and Social Transfer repayable to the federal              |   |   |   |      |   |       |      |   |
|    government                                                             |   |   |   | 304,276   |   |       | 341,690   |   |
| Accrued interest                                                                         |   |   |   | 135,702   |   |       | 140,250   |   |
| Other                                                                                    |   |   |   | 129,111   |   |       | 87,532    |   |
| **Total Accounts Payable and Accrued Liabilities**                                       |   |   |   | 2,205,581 |   |       | 1,770,007 |   |

| 1 | Includes transfers to the federal government of $287.1 million (2008 - $255.1 million). |
|---|-----------------------------------------------------------------------------------------|

| **Other Liabilities**As at March 31, 2009*(thousands of dollars)*  |   |   |   |    |   | Schedule 6 |    |
|--------------------------------------------------------------------|--------|--------|--------|---------|--------|------------|---------|
||
||
| Environmental                                                      |   |   |   | 133,434 |   |       | 88,185  |   |
| Funds held on behalf of government business enterprises and others |   |   |   |    |   |       |    |   |
|    Liquor and Gaming Authority                      |   |   |   | 45,330  |   |       | 48,328  |   |
|    Other                                            |   |   |   | 58,786  |   |       | 39,453  |   |
| Capital leases *(note 6)*                                          |   |   |   | 36,537  |   |       | 44,976  |   |
| Other                                                              |   |   |   | 86,674  |   |       | 100,751 |   |
| **Total Other Liabilities**                                        |   |   |   | 360,761 |   |       | 321,693 |   |

| **Unearned Revenue**As at March 31, 2009*(thousands of dollars)* |   |   |   |    |   | Schedule 7 |    |
|------------------------------------------------------------------|--------|--------|--------|---------|--------|------------|---------|
||
||
| Housing contributions                                            |   |   |   | 120,626 |   |       | 126,768 |   |
| Motor vehicle licensing fees                                     |   |   |   | 37,416  |   |       | 35,200  |   |
| Health contributions                                             |   |   |   | 35,510  |   |       | 34,653  |   |
| Crown mineral leases                                             |   |   |   | 22,125  |   |       | 20,480  |   |
| Other                                                            |   |   |   | 35,291  |   |       | 28,287  |   |
| **Total Unearned Revenue**                                       |   |   |   | 250,968 |   |       | 245,388 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts **105**

----

----

Summary Financial Statements 

----

| **Public Debt**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   | Schedule 8 |       |
|-------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|------------|------------|
||
||
||
|                                                        |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |       |       |   |
| General Revenue Fund                                        |   |   |   | 4,145,286 |   |   | --        |   |   | 4,145,286 |   |   | 6,824,323 |   |   | --        |   |       | 6,824,323  |   |
| Saskatchewan Power Corporation4                             |   |   |   | 140,000   |   |   | 2,239,746 |   |   | 2,379,746 |   |   | 165,000   |   |   | 2,094,297 |   |       | 2,259,297  |   |
| SaskEnergy Incorporated4                                    |   |   |   | 222,500   |   |   | 585,003   |   |   | 807,503   |   |   | 100,500   |   |   | 616,109   |   |       | 716,609    |   |
| Saskatchewan Telecommunications Holding                     |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |       |       |   |
|    Corporation4                              |   |   |   | 28,900    |   |   | 269,260   |   |   | 298,160   |   |   | --        |   |   | 297,009   |   |       | 297,009    |   |
| Regional Health Authorities                                 |   |   |   | 75,254    |   |   | --        |   |   | 75,254    |   |   | 81,285    |   |   | --        |   |       | 81,285     |   |
| Saskatchewan Housing Corporation                            |   |   |   | 44,365    |   |   | --        |   |   | 44,365    |   |   | 46,222    |   |   | --        |   |       | 46,222     |   |
| Investment Saskatchewan Inc.                                |   |   |   | 41,820    |   |   | --        |   |   | 41,820    |   |   | 44,389    |   |   | --        |   |       | 44,389     |   |
| Saskatchewan Water Corporation                              |   |   |   | 41,412    |   |   | --        |   |   | 41,412    |   |   | 40,118    |   |   | --        |   |       | 40,118     |   |
| Municipal Financing Corporation                             |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |       |       |   |
|    of Saskatchewan4                          |   |   |   | 1,062     |   |   | 37,266    |   |   | 38,328    |   |   | --        |   |   | 25,764    |   |       | 25,764     |   |
| Saskatchewan Opportunities Corporation                      |   |   |   | 37,543    |   |   | --        |   |   | 37,543    |   |   | 31,844    |   |   | --        |   |       | 31,844     |   |
| Saskatchewan Gaming Corporation4                            |   |   |   | --        |   |   | 19,376    |   |   | 19,376    |   |   | --        |   |   | 24,210    |   |       | 24,210     |   |
| Information Services Corporation                            |   |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |       |       |   |
|    of Saskatchewan                           |   |   |   | 13,547    |   |   | --        |   |   | 13,547    |   |   | 13,547    |   |   | --        |   |       | 13,547     |   |
| Saskatchewan Crop Insurance Corporation                     |   |   |   | 2,053     |   |   | --        |   |   | 2,053     |   |   | 72,158    |   |   | --        |   |       | 72,158     |   |
| Other                                                       |   |   |   | 1,846     |   |   | --        |   |   | 1,846     |   |   | 2,058     |   |   | --        |   |       | 2,058      |   |
| **Public Debt1 5**                                          |   |   |   | 4,795,588 |   |   | 3,150,651 |   |   | 7,946,239 |   |   | 7,421,444 |   |   | 3,057,389 |   |       | 10,478,833 |   |

| 1 | On the Statement of Financial Position, public debt is presented net of government business enterprise specific debt of $3,150.7 million (2008 — $3,057.4 million). |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | General debt and government business enterprise specific debt are presented net of sinking funds. |
|---|---------------------------------------------------------------------------------------------------|

| 3 | General debt includes $128.3 million (2008 — $134.1 million) primarily secured by assets with a carrying value of $200.8 million (2008 — $235.9 million). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | General debt of government business enterprises represents amounts transferred from the General Revenue Fund to government business enterprises and recorded as loans receivable *(schedule 2)*. The 2008 amounts have been restated as disclosed in note 10.                Schedule 3 provides information on government business enterprises as presented in their audited financial statements closest to March 31, 2009. Public debt of government business enterprises shown above has been adjusted for transactions occurring from the audited financial statements to March 31, 2009 as follows: |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                |   |   |   |      |   |   |    |   |   |      |   |   |      |   |
|--------|--------|--------|-----------------------------------------------------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|
||
||
||
||
|   |   |   | Saskatchewan Power Corporation                      |   |   |   | 2,366,082 |   |   | 13,664  |   |   | 2,379,746 |   |   | 2,259,297 |   |
|   |   |   | SaskEnergy Incorporated                             |   |   |   | 869,331   |   |   | (61,828 | )      |   | 807,503   |   |   | 716,609   |   |
|   |   |   | Saskatchewan Telecommunications Holding Corporation |   |   |   | 300,263   |   |   | (2,103  | )      |   | 298,160   |   |   | 297,009   |   |
|   |   |   | Municipal Financing Corporation of Saskatchewan     |   |   |   | 37,275    |   |   | 1,053   |   |   | 38,328    |   |   | 25,764    |   |
|   |   |   | Saskatchewan Gaming Corporation                     |   |   |   | 20,618    |   |   | (1,242  | )      |   | 19,376    |   |   | 24,210    |   |
|   |   |   | Total Government Business Enterprises               |   |   |   | 3,593,569 |   |   | (50,456 | )      |   | 3,543,113 |   |   | 3,322,889 |   |

|   | a | Includes gross debt net of sinking funds reported on schedule 3. |
|--------|---|------------------------------------------------------------------|

----

**106**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

**Public Debt*****(continued)*                                                                                                                                                                                   Schedule 8**

| 5 | Public debt payable in U.S. dollars of 64.2 million (2008 — 78.6 million) has been restated to $80.9 million Canadian (2008 — $80.8 million) at the exchange rate in effect at March 31, 2009 of 1.2602 (2008 — 1.0279). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Public debt is comprised of gross debt and sinking funds as follows: |
|--------|----------------------------------------------------------------------|

|   |   |   |                                                |   |   |   |       |   |   |       |   |   |      |   |
|--------|--------|--------|-----------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
||
||
||
||
|   |   |   | General Revenue Fund                                |   |   |   | 7,109,217  |   |   | (2,963,931 | )      |   | 4,145,286 |   |
|   |   |   | Saskatchewan Power Corporation                      |   |   |   | 2,598,019  |   |   | (218,273   | )      |   | 2,379,746 |   |
|   |   |   | SaskEnergy Incorporated                             |   |   |   | 855,730    |   |   | (48,227    | )      |   | 807,503   |   |
|   |   |   | Saskatchewan Telecommunications Holding Corporation |   |   |   | 362,292    |   |   | (64,132    | )      |   | 298,160   |   |
|   |   |   | Regional Health Authorities                         |   |   |   | 75,254     |   |   | --         |   |   | 75,254    |   |
|   |   |   | Saskatchewan Housing Corporation                    |   |   |   | 63,157     |   |   | (18,792    | )      |   | 44,365    |   |
|   |   |   | Investment Saskatchewan Inc.                        |   |   |   | 41,820     |   |   | --         |   |   | 41,820    |   |
|   |   |   | Saskatchewan Water Corporation                      |   |   |   | 43,583     |   |   | (2,171     | )      |   | 41,412    |   |
|   |   |   | Municipal Financing Corporation of Saskatchewan     |   |   |   | 39,092     |   |   | (764       | )      |   | 38,328    |   |
|   |   |   | Saskatchewan Opportunities Corporation              |   |   |   | 37,543     |   |   | --         |   |   | 37,543    |   |
|   |   |   | Saskatchewan Gaming Corporation                     |   |   |   | 19,376     |   |   | --         |   |   | 19,376    |   |
|   |   |   | Information Services Corporation of Saskatchewan    |   |   |   | 13,547     |   |   | --         |   |   | 13,547    |   |
|   |   |   | Saskatchewan Crop Insurance Corporation             |   |   |   | 50,000     |   |   | (47,947    | )      |   | 2,053     |   |
|   |   |   | Other                                               |   |   |   | 1,846      |   |   | --         |   |   | 1,846     |   |
|   |   |   | Public Debt                                         |   |   |   | 11,310,476 |   |   | (3,364,237 | )      |   | 7,946,239 |   |

|   | a | The average effective interest rate on gross debt during 2008-09 was 6.8 per cent (2007-08 — 6.8 per cent) and includes the impact of foreign exchange and the amortization of any premiums or discounts associated with the debentures. The average term to maturity of gross debt is 11.9 years (2008 — 11.4 years).                Gross debt includes Canada Pension Plan debentures of $745.1 million (2008 — $798.5 million). These debentures are callable in whole or in part before maturity, on six business days prior notice, at the option of the Minister of Finance of Saskatchewan. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Debt principal payment requirements in each of the next five years and thereafter are as follows: |
|--------|---------------------------------------------------------------------------------------------------|

|   |   |   |                        |   |   |   |   |   |   |       |   |   |       |   |
|--------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|
|   |   |   | **Year of Maturity**        |   |   |   |   |   |   | **2009**   |   |   | **2008**   |   |
|   |   |   |                        |   |   |   |   |   |   |       |   |   |       |   |
|   |   |   | Short-term promissory notes |   |   |   |   |   |   | 154,197    |   |   | 430,000    |   |
|   |   |   | 2008-09                     |   |   |   |   |   |   | --         |   |   | 686,024    |   |
|   |   |   | 2009-10                     |   |   |   |   |   |   | 998,431    |   |   | 948,169    |   |
|   |   |   | 2010-11                     |   |   |   |   |   |   | 663,381    |   |   | 666,721    |   |
|   |   |   | 2011-12                     |   |   |   |   |   |   | 273,817    |   |   | 278,223    |   |
|   |   |   | 2012-13                     |   |   |   |   |   |   | 1,173,259  |   |   | 1,178,026  |   |
|   |   |   | 2013-14                     |   |   |   |   |   |   | 814,524    |   |   | --         |   |
|   |   |   | 6-10 years                  |   |   |   |   |   |   | 2,042,232  |   |   | 2,822,851  |   |
|   |   |   | Thereafter                  |   |   |   |   |   |   | 5,190,635  |   |   | 4,828,077  |   |
|   |   |   | Gross debta                 |   |   |   |   |   |   | 11,310,476 |   |   | 11,838,091 |   |
|   |   |   | Sinking funds               |   |   |   |   |   |   | (3,364,237 | )      |   | (1,359,258 | )      |
|   |   |   | Public Debt                 |   |   |   |   |   |   | 7,946,239  |   |   | 10,478,833 |   |

|   | a | Gross debt includes debentures of $130.5 million (2008 — $210.5 million) that provide the holder with a choice of dates on which the debt matures. The year of maturity reflects the earliest possible date of maturity rather than the maximum term to maturity. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts **107**

----

----

Summary Financial Statements 

----

| **Sinking Funds**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |      |   |   |   |   |   |    |   |   | Schedule 9 |   |
|---------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|--------|---------|--------|--------|------------|--------|
||
||
||
| General Revenue Fund                                          |   |   |   | 994,048   |   |   | 1,892,754 |   |   | 78,723 |   |   | (48,842 | )      |   | 47,248     |   |   | 2,963,931 |   |
| Saskatchewan Power Corporation                                |   |   |   | 186,286   |   |   | 21,222    |   |   | 10,765 |   |   | --      |   |   | --         |   |   | 218,273 |   |
| Saskatchewan Telecommunications Holding                       |   |   |   |      |   |   |      |   |   |   |   |   |    |   |   |       |   |   |   |   |
|     Corporation                           |   |   |   | 57,681    |   |   | 3,266     |   |   | 3,185  |   |   | --      |   |   | --         |   |   | 64,132 |   |
| SaskEnergy Incorporated                                       |   |   |   | 43,050    |   |   | 5,882     |   |   | 2,400  |   |   | (3,105  | )      |   | --         |   |   | 48,227 |   |
| Saskatchewan Crop Insurance Corporation                       |   |   |   | 27,842    |   |   | 18,600    |   |   | 1,505  |   |   | --      |   |   | --         |   |   | 47,947 |   |
| Saskatchewan Housing Corporation                              |   |   |   | 48,929    |   |   | 520       |   |   | 2,136  |   |   | (32,793 | )      |   | --         |   |   | 18,792 |   |
| Saskatchewan Water Corporation                                |   |   |   | 956       |   |   | 1,141     |   |   | 74     |   |   | --      |   |   | --         |   |   | 2,171 |   |
| Municipal Financing Corporation of Saskatchewan               |   |   |   | 466       |   |   | 262       |   |   | 36     |   |   | --      |   |   | --         |   |   | 764 |   |
| **Total Sinking Funds4**                                      |   |   |   | 1,359,258 |   |   | 1,943,647 |   |   | 98,824 |   |   | (84,740 | )      |   | 47,248     |   |   | 3,364,237 |   |

| 1 | Annual contributions, established by Order in Council, are set at not less than one per cent of debentures outstanding. The aggregate amount of contributions estimated to be required in each of the next five fiscal years to meet sinking fund requirements by debt classification (see footnote 4) are as follows: |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|--------|--------|--------|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
||
||
|   |   |   | General debta                                |   |   |   | 59,841 |   |   | 59,581 |   |   | 58,841 |   |   | 57,128 |   |   | 47,819 |   |   | 283,210 |   |
|   |   |   | Government business enterprise specific debt |   |   |   | 33,204 |   |   | 33,204 |   |   | 31,504 |   |   | 31,504 |   |   | 31,004 |   |   | 160,420 |   |
|   |   |   | Total Sinking Fund Contributions             |   |   |   | 93,045 |   |   | 92,785 |   |   | 90,345 |   |   | 88,632 |   |   | 78,823 |   |   | 443,630 |   |

|   | a | Each year includes contributions of 1.0 million U.S. dollars. |
|--------|---|---------------------------------------------------------------|

| 2 | Sinking fund earnings include gains on investment sales of $21.3 million (2008 — $1.0 million). |
|---|-------------------------------------------------------------------------------------------------------|

| 3 | The redemption value is based on the market value of the sinking fund units at the date of redemption. |
|---|--------------------------------------------------------------------------------------------------------|

| 4 | The market value of total sinking funds is $3,405.6 million (2008 — $1,418.5 million).                Total sinking funds by debt classification are as follows: |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|--------|--------|--------|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
||
||
|   |   |   | General debta                                |   |   |   | 59,841 |   |   | 59,581 |   |   | 58,841 |   |   | 57,128 |   |   | 47,819 |   |   | 283,210 |   |
|   |   |   | Government business enterprise specific debt |   |   |   | 33,204 |   |   | 33,204 |   |   | 31,504 |   |   | 31,504 |   |   | 31,004 |   |   | 160,420 |   |
|   |   |   | Total Sinking Fund Contributions             |   |   |   | 93,045 |   |   | 92,785 |   |   | 90,345 |   |   | 88,632 |   |   | 78,823 |   |   | 443,630 |   |

|   | Sinking fund assets have been invested as follows: |
|--------|----------------------------------------------------|

|   |   |   |                                                                                                                    |   |   |   |      |   |   |      |   |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|
||
||
|   |   |   | Long-term investments in securities of:                                                                                 |   |   |   |      |   |   |      |   |
|   |   |   |     Governments of other provinces (coupon interest range 3.2% to 11.0%; maturing in 3.5 to 35.9)   |   |   |   | 1,563,200 |   |   | 641,605   |   |
|   |   |   |     Government of Saskatchewan (coupon interest range 4.5% to 10.3%; maturing in 0.8 to 31.2 years) |   |   |   | 526,574   |   |   | 441,676   |   |
|   |   |   |     Corporations (coupon interest range 3.9% to 5.1%; maturing in 1.6 to 4.4 years)                 |   |   |   | 168,027   |   |   | --        |   |
|   |   |   |     Government of Canada (coupon interest range 3.8% to 5.0%; maturing in 3.7 to 32.2 years)        |   |   |   | 148,606   |   |   | 26,093    |   |
|   |   |   |     Government of the United States (coupon interest 4.5%; maturing in 29.1 years)                  |   |   |   | 31,639    |   |   | 10,333    |   |
|   |   |   | Cash, short-term investments and accrued interesta                                                                      |   |   |   | 926,191   |   |   | 239,551   |   |
|   |   |   | Total Sinking Fundsb                                                                                                    |   |   |   | 3,364,237 |   |   | 1,359,258 |   |

|   | a | Cash, short-term investments and accrued interest are disclosed net of $0.8 million (2008 - $0.9 million) in liabilities. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------|

|   | b | Included in total sinking funds are U.S. dollar cash, investments and accrued interest converted to $265.7 million Canadian (2008 — $201.9 million) at the exchange rate in effect at March 31, 2009 of 1.2602 (2008 — 1.0279). |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**108**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Guaranteed Debt**As at March 31, 2009*(thousands of dollars)* |   |   |   |   |   | Schedule 10 |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|-------------|--------|
||
||
| *The Farm Financial Stability Act*                              |   |   |   |   |   |        |   |   |
|    Breeder and Feeder associations               |   |   |   | 16,646 |   |        | 21,922 |   |
| Other                                                           |   |   |   | 9,977  |   |        | 11,480 |   |
| **Total Guaranteed Debt1**                                      |   |   |   | 26,623 |   |        | 33,402 |   |

| 1 | In addition to the amount shown, there is a contingent liability for interest accrued on these items.                 Total guaranteed debt is net of a loss provision of $0.6 million (2008 — $0.8 million). |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Breeder and Feeder Associations**

The Government provides guarantees to lenders who make loans to production associations. The Government guarantees repayment of 25 per cent of the outstanding loan balance at the time of a first default on any advance, plus accrued interest as of the time that payment is to be made on the guarantee. Guarantees for each cattle association are limited to $6 million under the breeder option. Guarantees for each bison association are        limited to $6 million under the feeder and breeder option. Guarantees for each sheep association are limited to $4 million under both the breeder and feeder options. 

----

Government of Saskatchewan - 2008-09 Public Accounts **109**

----

----

Summary Financial Statements 

----

| **Pension Liabilities**As at March 31, 2009*(thousands of dollars)* |   |   |   |      |   |   |      |   |   |    |   |   |      |   | Schedule 11 |      |
|---------------------------------------------------------------------|--------|--------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|-------------|-----------|
||
||
||
| Accrued benefit obligation,                                         |   |   |   |      |   |   |      |   |   |    |   |   |      |   |        |      |   |
|     beginning of year                           |   |   |   | 4,981,380 |   |   | 1,909,437 |   |   | 323,970 |   |   | 7,214,787 |   |        | 7,035,649 |   |
| Current period benefit cost                                         |   |   |   | 46,836    |   |   | 14,749    |   |   | 4,462   |   |   | 66,047    |   |        | 74,751    |   |
| Plan amendment                                                      |   |   |   | --        |   |   | --        |   |   | 2,339   |   |   | 2,339     |   |        | --        |   |
| Interest cost                                                       |   |   |   | 271,638   |   |   | 88,391    |   |   | 14,653  |   |   | 374,682   |   |        | 397,103   |   |
| Actuarial losses (gains)                                            |   |   |   | 74,190    |   |   | (44,713   | )      |   | (3,358  | )      |   | 26,119    |   |        | 161,120   |   |
| Joint defined benefit plan (SHEPP)2                                 |   |   |   | --        |   |   | --        |   |   | 32,669  |   |   | 32,669    |   |        | (25,223   | ) |
| Benefit payments                                                    |   |   |   | (308,245  | )      |   | (111,883  | )      |   | (21,914 | )      |   | (442,042  | )      |        | (428,613  | ) |
| Accrued Benefit Obligation, End of Year                             |   |   |   | 5,065,799 |   |   | 1,855,981 |   |   | 352,821 |   |   | 7,274,601 |   |        | 7,214,787 |   |
| Plan assets, beginning of year                                      |   |   |   | 1,429,723 |   |   | --        |   |   | 206,934 |   |   | 1,636,657 |   |        | 1,587,597 |   |
| Employer contributions                                              |   |   |   | 58,945    |   |   | 108,134   |   |   | 5,765   |   |   | 172,844   |   |        | 141,831   |   |
| Employee contributions                                              |   |   |   | 13,064    |   |   | 3,749     |   |   | 496     |   |   | 17,309    |   |        | 19,061    |   |
| Return on plan assets                                               |   |   |   | 90,851    |   |   | --        |   |   | 8,203   |   |   | 99,054    |   |        | 128,704   |   |
| Actuarial gains (losses)                                            |   |   |   | 5,069     |   |   | --        |   |   | (2,001  | )      |   | 3,068     |   |        | 188,077   |   |
| Benefit payments                                                    |   |   |   | (308,245  | )      |   | (111,883  | )      |   | (21,914 | )      |   | (442,042  | )      |        | (428,613  | ) |
| Plan Assets, End of Year3                                           |   |   |   | 1,289,407 |   |   | --        |   |   | 197,483 |   |   | 1,486,890 |   |        | 1,636,657 |   |
|                                                                |   |   |   | 3,776,392 |   |   | 1,855,981 |   |   | 155,338 |   |   | 5,787,711 |   |        | 5,578,130 |   |
| Unamortized estimation adjustments4                                 |   |   |   | (276,334  | )      |   | (28,913   | )      |   | (7,480  | )      |   | (312,727  | )      |        | (490,323  | ) |
| **Total Pension Liabilities5**                                      |   |   |   | 3,500,058 |   |   | 1,827,068 |   |   | 147,858 |   |   | 5,474,984 |   |        | 5,087,807 |   |

| 1 | The TSP accrued benefit obligation includes a liability of $25.8 million (2008 — $29.6 million) relating to the TSP disability provision. The TSP had a negative actual rate of return on plan assets of 12.9 per cent (2008 — positive 0.7 per cent). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The joint defined benefit plan includes only the Government’s employer portion of the pension liability. At December 31, 2008, the SHEPP had a total accrued benefit obligation of $3,510.2 million (2007 — $2,888.3 million) and pension fund assets of $3,141.7 million (2007 — $3,010.8 million) at market related values and unamortized estimation adjustment losses of $301.3 million (2007 —                gains of $68.1 million). The market value of the pension fund investments was $2,512.8 million (2007 — $3,075.4 million). Of this amount 45.1 per cent (2007 — 39.0 per cent) was invested in fixed income securities and 53.2 per cent (2007 — 56.3 per cent) in equity investments. The plan assets had a negative actual return of 20.0 per cent (2007 — positive 2.0 per cent). The Government and member contributions to the plan totalled $77.8 million (2007                — $71.8 million) and $75.4 million (2007 — $70.0 million) respectively. Benefit payments from the plan totalled $116.3 million (2007 — $104.6 million). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | At March 31, 2009, the market value of defined benefit plan investments was $1,328.6 million (2008 — $1,750.7 million). Of this amount 42.5 per cent (2008 - 42.6 per cent) was invested in fixed income securities and 42.2 per cent (2008 — 45.6 per cent) in equity investments. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Unamortized estimation adjustments are amortized to pension expense over periods ranging from 3.7 to 5.7 years for the TSP, from 1.5 to 7.7 years for the PSSP, and from 1.5 to 10.0 years for the other plans. These represent the expected average remaining service life of active plan members at the time the estimation adjustments arose. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | The total pension liabilities are based on the latest actuarial valuations extrapolated to March 31, 2009 for the defined benefit plans and December 31, 2008 for the joint defined benefit plan. Changes in assumptions can result in significantly higher or lower estimates of pension liabilities. A one percentage point decrease in the discount rate would result in a $603.1 million and $209.4 million                increase in the pension liabilities for the TSP and the PSSP respectively, and a one percentage point increase would result in a $497.5 million and $174.9 million decrease in the pension liabilities for the TSP and the PSSP respectively. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**110**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Tangible Capital Assets**As at March 31, 2009*(thousands of dollars)* |   |   |   |    |   |   |      |   |   |      |   |   |    |   |   |    |   |   |      |   | Schedule 12 |      |
|-------------------------------------------------------------------------|--------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|-------------|-----------|
||
||
||
||
| Opening Net Book Value of                                               |   |   |   |    |   |   |      |   |   |      |   |   |    |   |   |    |   |   |      |   |        |      |   |   |   |   |
|    Tangible Capital Assets1 2                            |   |   |   | 308,364 |   |   | 1,596,930 |   |   | 299,589   |   |   | 189,798 |   |   | 142,309 |   |   | 1,979,297 |   |        | 4,516,287 |   |   | 4,226,218 |   |
| Opening cost                                                            |   |   |   | 329,309 |   |   | 2,897,623 |   |   | 988,836   |   |   | 307,495 |   |   | 398,725 |   |   | 3,682,863 |   |        | 8,604,851 |   |   | 8,041,213 |   |
| Adjustment to cost *(note 10)*                                          |   |   |   | --      |   |   | --        |   |   | --        |   |   | --      |   |   | --      |   |   | --        |   |        | --        |   |   | 105,877 |   |
| Acquisitions                                                            |   |   |   | 9,216   |   |   | 192,023   |   |   | 111,399   |   |   | 41,226  |   |   | 45,305  |   |   | 227,427   |   |        | 626,596   |   |   | 548,290 |   |
| Write downs                                                             |   |   |   | (9,846  | )      |   | (6,569    | )      |   | (3,414    | )      |   | (388    | )      |   | (89     | )      |   | (841      | )      |        | (21,147   | ) |   | (23,968 | ) |
| Disposals                                                               |   |   |   | (7,261  | )      |   | (18,804   | )      |   | (11,653   | )      |   | (12,401 | )      |   | (4,513  | )      |   | (36,724   | )      |        | (91,356   | ) |   | (66,561 | ) |
| Closing cost3                                                           |   |   |   | 321,418 |   |   | 3,064,273 |   |   | 1,085,168 |   |   | 335,932 |   |   | 439,428 |   |   | 3,872,725 |   |        | 9,118,944 |   |   | 8,604,851 |   |
| Opening accumulated amortization                                        |   |   |   | 20,945  |   |   | 1,300,693 |   |   | 689,247   |   |   | 117,697 |   |   | 256,416 |   |   | 1,703,566 |   |        | 4,088,564 |   |   | 3,814,995 |   |
| Adjustment to accumulated                                               |   |   |   |    |   |   |      |   |   |      |   |   |    |   |   |    |   |   |      |   |        |      |   |   |   |   |
|    amortization *(note 10)*                              |   |   |   | --      |   |   | --        |   |   | --        |   |   | --      |   |   | --      |   |   | --        |   |        | --        |   |   | 27,058 |   |
| Annual amortization                                                     |   |   |   | 1,412   |   |   | 101,110   |   |   | 59,101    |   |   | 18,599  |   |   | 38,578  |   |   | 104,638   |   |        | 323,438   |   |   | 316,641 |   |
| Write downs                                                             |   |   |   | --      |   |   | (1,636    | )      |   | (3,020    | )      |   | (257    | )      |   | (89     | )      |   | (44       | )      |        | (5,046    | ) |   | (15,007 | ) |
| Disposals                                                               |   |   |   | --      |   |   | (10,710   | )      |   | (11,303   | )      |   | (8,835  | )      |   | (3,785  | )      |   | (33,825   | )      |        | (68,458   | ) |   | (55,123 | ) |
| Closing accumulated amortization                                        |   |   |   | 22,357  |   |   | 1,389,457 |   |   | 734,025   |   |   | 127,204 |   |   | 291,120 |   |   | 1,774,335 |   |        | 4,338,498 |   |   | 4,088,564 |   |
| **Closing Net Book Value of**                                           |   |   |   |    |   |   |      |   |   |      |   |   |    |   |   |    |   |   |      |   |        |      |   |   |   |   |
|    **Tangible Capital Assets2**                          |   |   |   | 299,061 |   |   | 1,674,816 |   |   | 351,143   |   |   | 208,728 |   |   | 148,308 |   |   | 2,098,390 |   |        | 4,780,446 |   |   | 4,516,287 |   |

| 1 | Opening net book value of tangible capital assets has been restated to include an additional $108.8 million (2008 — $113.2 million) of land and improvements *(note 11)*. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Net book value of tangible capital assets does not include the following: |
|---|---------------------------------------------------------------------------|

|   | • | works of art and historical treasures, such as the Legislative Building; |
|--------|--------|--------------------------------------------------------------------------|

|   | • | items inherited by right of the Crown, such as Crown lands, forests, water and mineral resources, which are not recognized in these financial statements; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | capital assets held by government business enterprises *(schedule 3)*. |
|--------|--------|------------------------------------------------------------------------|

| 3 | Closing cost includes work-in-progress of $285.6 million (2008 — $301.9 million). |
|---|-----------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts **111**

----

----

Summary Financial Statements 

----

| **Revenue**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   | Schedule 13 |       |
|----------------------------------------------------------------------|--------|--------|--------|------------|--------|-------------|------------|
||
||
| **Taxation**                                                         |   |   |   |       |   |        |       |   |
| Individual income                                                    |   |   |   | 1,844,226  |   |        | 1,938,258  |   |
| Provincial sales                                                     |   |   |   | 1,108,628  |   |        | 929,865    |   |
| Corporation income                                                   |   |   |   | 591,930    |   |        | 673,641    |   |
| Fuel                                                                 |   |   |   | 429,162    |   |        | 406,434    |   |
| Tobacco                                                              |   |   |   | 199,072    |   |        | 190,412    |   |
| Other                                                                |   |   |   | 259,666    |   |        | 281,053    |   |
| Total Taxation                                                       |   |   |   | 4,432,684  |   |        | 4,419,663  |   |
| **Non-renewable Resources**                                          |   |   |   |       |   |        |       |   |
| Oil                                                                  |   |   |   | 1,616,071  |   |        | 1,246,205  |   |
| Potash                                                               |   |   |   | 1,364,463  |   |        | 432,770    |   |
| Crown land sales                                                     |   |   |   | 928,245    |   |        | 419,062    |   |
| Resource surcharge                                                   |   |   |   | 458,299    |   |        | 315,230    |   |
| Natural gas                                                          |   |   |   | 125,922    |   |        | 133,780    |   |
| Other                                                                |   |   |   | 119,408    |   |        | 93,299     |   |
| Total Non-renewable Resources                                        |   |   |   | 4,612,408  |   |        | 2,640,346  |   |
| **Other Own-source Revenue**                                         |   |   |   |       |   |        |       |   |
| Investment income                                                    |   |   |   |       |   |        |       |   |
|    Gain on sale of other investments *(schedule 17)*  |   |   |   | 685,266    |   |        | 264,494    |   |
|    Interest and dividends                             |   |   |   | 247,301    |   |        | 231,660    |   |
|    Earnings from equities *(schedule 17)*             |   |   |   | 59,251     |   |        | 74,731     |   |
| Fees                                                                 |   |   |   |       |   |        |       |   |
|    Motor vehicle licensing                            |   |   |   | 151,143    |   |        | 140,631    |   |
|    Health care                                        |   |   |   | 145,269    |   |        | 148,866    |   |
|    Subsidized housing rental                          |   |   |   | 98,683     |   |        | 95,579     |   |
|    Other                                              |   |   |   | 417,480    |   |        | 411,211    |   |
| Insurance                                                            |   |   |   | 230,699    |   |        | 141,720    |   |
| Commodity sales                                                      |   |   |   | 91,633     |   |        | 70,952     |   |
| Other                                                                |   |   |   | 451,070    |   |        | 342,915    |   |
| Total Other Own-source Revenue                                       |   |   |   | 2,577,795  |   |        | 1,922,759  |   |
| **Total Own-source Revenue**                                         |   |   |   | 11,622,887 |   |        | 8,982,768  |   |
| **Transfers from the Federal Government**                            |   |   |   |       |   |        |       |   |
| Canada Health Transfer                                               |   |   |   | 823,496    |   |        | 739,648    |   |
| Canada Social Transfer                                               |   |   |   | 338,301    |   |        | 325,098    |   |
| Crop insurance contributions                                         |   |   |   | 167,888    |   |        | 104,703    |   |
| Housing subsidy                                                      |   |   |   | 66,350     |   |        | 78,850     |   |
| Equalization                                                         |   |   |   | --         |   |        | 226,146    |   |
| Other                                                                |   |   |   | 570,157    |   |        | 332,886    |   |
| **Total Transfers from the Federal Government**                      |   |   |   | 1,966,192  |   |        | 1,807,331  |   |
| **Total Revenue**                                                    |   |   |   | 13,589,079 |   |        | 10,790,099 |   |

----

**112**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Debt Charges**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |      |   | Schedule 14 |      |
|---------------------------------------------------------------------------|--------|--------|--------|-----------|--------|-------------|-----------|
||
||
| Total interest costs                                                      |   |   |   | 1,022,620 |   |        | 1,063,845 |   |
| Interest reimbursed from government business enterprises1                 |   |   |   | (229,133  | )      |        | (250,508  | ) |
| Net foreign exchange loss                                                 |   |   |   | 5,526     |   |        | 1,598     |   |
| Other costs                                                               |   |   |   | 5,419     |   |        | 5,886     |   |
| **Total Debt Charges**                                                    |   |   |   | 804,432   |   |        | 820,821   |   |

| 1 | Interest reimbursed for debt borrowed by the General Revenue Fund specifically on behalf of government business enterprises. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| **Expense by Object**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   | Schedule 15 |      |
|--------------------------------------------------------------------------------|--------|--------|--------|------------|--------|-------------|-----------|
||
||
| Transfers                                                                      |   |   |   |       |   |        |      |   |
|    Operating                                                    |   |   |   | 4,153,458  |   |        | 3,760,005 |   |
|    Capital                                                      |   |   |   | 799,723    |   |        | 182,633   |   |
| Salaries and benefits                                                          |   |   |   | 3,286,619  |   |        | 3,030,430 |   |
| Operating costs                                                                |   |   |   | 1,521,154  |   |        | 1,394,608 |   |
| Debt charges *(schedule 14)*                                                   |   |   |   | 804,432    |   |        | 820,821   |   |
| Amortization of tangible capital assets *(schedule 12)*                        |   |   |   | 323,438    |   |        | 316,641   |   |
| Other                                                                          |   |   |   | 417,538    |   |        | 355,227   |   |
| **Total Expense**                                                              |   |   |   | 11,306,362 |   |        | 9,860,365 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts **113**

----

----

Summary Financial Statements 

----

| **Comparison of Estimated to Actual Results**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |     |   |   |      |   | Schedule 16 |      |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|--------|--------|-----------|--------|-------------|-----------|
||
||
||
| **Treasury Board Organizations**                                                                       |   |   |   |     |   |   |      |   |        |      |   |
| General Revenue Fund                                                                                   |   |   |   | 250,000  |   |   | 2,388,863 |   |        | 641,435   |   |
| Growth and Financial Security Fund2                                                                    |   |   |   | (380     | )      |   | (418,930  | )      |        | --        |   |
| Fiscal Stabilization Fund2                                                                             |   |   |   | --       |   |   | --        |   |        | 641,434   |   |
| Other Treasury Board Organizations3 4                                                                  |   |   |   | (202,926 | )      |   | 23,037    |   |        | (173,358  | ) |
|                                                                                                   |   |   |   | 46,694   |   |   | 1,992,970 |   |        | 1,109,511 |   |
| CIC Board Organizations3 4                                                                             |   |   |   | (192,257 | )      |   | 842,293   |   |        | 517,802   |   |
|                                                                                                   |   |   |   | (145,563 | )      |   | 2,835,263 |   |        | 1,627,313 |   |
| Not-for-Profit Insurance Organizations                                                                 |   |   |   | 12,366   |   |   | 132,767   |   |        | 245,987   |   |
| **Surplus (Deficit)**                                                                                  |   |   |   | (133,197 | )      |   | 2,968,030 |   |        | 1,873,300 |   |

| 1 | Presented on the basis of the summary financial budget. |
|---|---------------------------------------------------------|

| 2 | During 2008-09, the Fiscal Stabilization Fund and the Saskatchewan Infrastructure Fund were wound up and the fund balances were transferred to the Growth and Financial Security Fund. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | During 2008-09, the Saskatchewan Gaming Corporation, which was a Treasury Board organization, became a CIC Board organization. Comparative figures have not been restated. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Net of dividends paid to other government organizations. |
|---|----------------------------------------------------------|

| **Gains and Losses on Other Investments**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |    |   | Schedule 17 |    |
|----------------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|-------------|---------|
||
||
| **Earnings (Losses) from Equities**                                                                |   |   |   |    |   |        |    |   |
| Saskferco Products Inc.                                                                            |   |   |   | 69,404  |   |        | 38,935  |   |
| NewGrade Energy Inc.                                                                               |   |   |   | --      |   |        | 41,371  |   |
| Other                                                                                              |   |   |   | (10,153 | )      |        | (5,575  | ) |
|                                                                                               |   |   |   | 59,251  |   |        | 74,731  |   |
| **Gain on sale of other investments**                                                              |   |   |   |    |   |        |    |   |
| Saskferco Products Inc.                                                                            |   |   |   | 679,776 |   |        | --      |   |
| NewGrade Energy Inc.                                                                               |   |   |   | --      |   |        | 250,091 |   |
| Centennial Foods                                                                                   |   |   |   | --      |   |        | 14,403  |   |
| Other                                                                                              |   |   |   | 5,490   |   |        | --      |   |
|                                                                                               |   |   |   | 685,266 |   |        | 264,494 |   |
| Recovery of (provision for) loss                                                                   |   |   |   | 313     |   |        | (7,870  | ) |
| **Net Gain on Other Investments**                                                                  |   |   |   | 744,830 |   |        | 331,355 |   |

----

**114**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Other Non-cash Items Included in Surplus**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |     |   | Schedule 18 |     |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|--------|-------------|----------|
||
||
| Amortization of tangible capital assets *(schedule 12)*                                               |   |   |   | 323,438  |   |        | 316,641  |   |
| Write downs of tangible capital assets *(schedule 12)*                                                |   |   |   | 16,101   |   |        | 8,961    |   |
| Amortization of foreign exchange loss *(schedule 14)*                                                 |   |   |   | 5,526    |   |        | 1,598    |   |
| Net loss (gain) on disposal of tangible capital assets                                                |   |   |   | 4,901    |   |        | (3,560   | ) |
| Net reduction to provision for loss on loans receivable *(schedule 2)*                                |   |   |   | (2,935   | )      |        | (9,362   | ) |
| Earnings retained in sinking funds *(schedule 9)*                                                     |   |   |   | (82,438  | )      |        | (48,371  | ) |
| Net gain on other investments *(schedule 17)*                                                         |   |   |   | (744,830 | )      |        | (331,355 | ) |
| **Total Other Non-cash Items Included in Surplus**                                                    |   |   |   | (480,237 | )      |        | (65,448  | ) |

| **Net Change in Non-cash Operating Activities**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |     |   | Schedule 19 |    |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|----------|--------|-------------|---------|
||
||
| Increase in accounts receivable                                                                          |   |   |   | (195,348 | )      |        | (53,289 | ) |
| Increase in inventories held for resale                                                                  |   |   |   | (11,045  | )      |        | (21,644 | ) |
| Decrease in deferred charges                                                                             |   |   |   | 5,885    |   |        | 4,414   |   |
| Increase in accounts payable and accrued liabilities                                                     |   |   |   | 435,574  |   |        | 30,855  |   |
| Increase (decrease) in unearned revenue                                                                  |   |   |   | 5,580    |   |        | (5,295  | ) |
| Increase in pension liabilities                                                                          |   |   |   | 387,177  |   |        | 403,340 |   |
| Increase in prepaid expenses                                                                             |   |   |   | (657     | )      |        | (4,584  | ) |
| Increase in inventories held for consumption                                                             |   |   |   | (727     | )      |        | (12,344 | ) |
| **Net Change in Non-cash Operating Activities**                                                          |   |   |   | 626,439  |   |        | 341,453 |   |

----

Government of Saskatchewan - 2008-09 Public Accounts **115**

----

----

Summary Financial Statements 

----

| **Segment Disclosure**For the Year Ended March 31, 2009*(thousands of dollars)* |   |   |   |       |   |   |       |   |
|---------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|
||
||
||
| **Revenue**                                                                     |   |   |   |       |   |   |       |   |
| Taxation                                                                        |   |   |   | 4,432,684  |   |   | 4,419,663  |   |
| Non-renewable resources                                                         |   |   |   | 4,612,408  |   |   | 2,640,346  |   |
| Transfers from government organizations                                         |   |   |   | 365,000    |   |   | 200,000    |   |
| Other own-source revenue                                                        |   |   |   | 1,391,907  |   |   | 1,180,076  |   |
| Transfers from the federal government                                           |   |   |   | 1,798,304  |   |   | 1,702,628  |   |
| **Total Revenue***(schedule 13)*                                                |   |   |   | 12,600,303 |   |   | 10,142,713 |   |
| **Expense**                                                                     |   |   |   |       |   |   |       |   |
| Agriculture                                                                     |   |   |   | 446,107    |   |   | 333,355    |   |
| Community development                                                           |   |   |   | 575,463    |   |   | 348,181    |   |
| Debt charges *(schedule 14)*                                                    |   |   |   | 797,743    |   |   | 814,969    |   |
| Economic development                                                            |   |   |   | 191,272    |   |   | 195,894    |   |
| Education                                                                       |   |   |   | 2,267,852  |   |   | 1,787,008  |   |
| Environment and natural resources                                               |   |   |   | 439,017    |   |   | 197,084    |   |
| Health                                                                          |   |   |   | 4,029,312  |   |   | 3,650,982  |   |
| Protection of persons and property                                              |   |   |   | 401,675    |   |   | 394,777    |   |
| Social services and assistance                                                  |   |   |   | 928,851    |   |   | 899,963    |   |
| Transportation                                                                  |   |   |   | 549,361    |   |   | 394,316    |   |
| Other                                                                           |   |   |   | 427,361    |   |   | 458,486    |   |
| **Total Expense***(schedule 15)*                                                |   |   |   | 11,054,014 |   |   | 9,475,015  |   |
| Surplus (deficit) from government service organizations                         |   |   |   | 1,546,289  |   |   | 667,698    |   |
| Income (loss) from government business enterprises *(schedule 3)*4              |   |   |   | 446,681    |   |   | 441,813    |   |
| **Surplus (deficit)***(schedule 16)*                                            |   |   |   | 1,992,970  |   |   | 1,109,511  |   |

The segments of the Summary financial statements are based on the accountability and control relationships between the Government and the various organizations within the government reporting entity. Schedule 21 identifies the organizations included in each segment. 

| 1 | *Treasury Board organizations* include the General Revenue Fund, Growth and Financial Security Fund and organizations such as Regional Health Authorities and Liquor and Gaming Authority. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | *CIC Board organizations* are agencies that are responsible to the Crown Investment Corporation of Saskatchewan (CIC) and include organizations such as Saskatchewan Power Corporation, Saskatchewan Telecommunications Holding Corporation and Investment Saskatchewan Inc. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | *Not-for-profit insurance organizations* are intended to be actuarially sound over the long-term. They typically adjust their rates to break even over the longer term and include Saskatchewan Auto Fund, Saskatchewan Crop Insurance Corporation, Crop Reinsurance Fund of Saskatchewan and Workers’ Compensation Board (Saskatchewan). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | During 2008-09, the Saskatchewan Gaming Corporation, which was a Treasury Board organization, became a CIC Board organization. Comparative figures have not been restated. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**116**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

|   |   |   |   |      |   |   |    |   |   |    |   |   |    |   |   |     |   |   |     |   |   |       |   | Schedule 20 |       |
|--------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|----------|--------|--------|----------|--------|--------|------------|--------|-------------|------------|
||
||
||
|   |   |   |   |      |   |   |    |   |   |    |   |   |    |   |   |     |   |   |     |   |   |       |   |        |       |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 4,432,684  |   |        | 4,419,663  |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 4,612,408  |   |        | 2,640,346  |   |
|   |   |   |   | 240,000   |   |   | --      |   |   | 151,965 |   |   | 108,023 |   |   | (756,965 | )      |   | (308,023 | )      |   | --         |   |        | --         |   |
|   |   |   |   | 995,636   |   |   | 624,091 |   |   | 194,248 |   |   | 118,592 |   |   | (3,996   | )      |   | --       |   |   | 2,577,795  |   |        | 1,922,759  |   |
|   |   |   |   | --        |   |   | --      |   |   | 167,888 |   |   | 104,703 |   |   | --       |   |   | --       |   |   | 1,966,192  |   |        | 1,807,331  |   |
|   |   |   |   | 1,235,636 |   |   | 624,091 |   |   | 514,101 |   |   | 331,318 |   |   | (760,961 | )      |   | (308,023 | )      |   | 13,589,079 |   |        | 10,790,099 |   |
|   |   |   |   |      |   |   |    |   |   |    |   |   |    |   |   |     |   |   |     |   |   |       |   |        |       |   |
|   |   |   |   | 86,527    |   |   | 46,383  |   |   | 345,992 |   |   | 243,188 |   |   | (151,965 | )      |   | (102,526 | )      |   | 726,661    |   |        | 520,400    |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 575,463    |   |        | 348,181    |   |
|   |   |   |   | 7,147     |   |   | 6,550   |   |   | 3,538   |   |   | 4,799   |   |   | (3,996   | )      |   | (5,497   | )      |   | 804,432    |   |        | 820,821    |   |
|   |   |   |   | 37,896    |   |   | 62,267  |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 229,168    |   |        | 258,161    |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 2,267,852  |   |        | 1,787,008  |   |
|   |   |   |   | 70,986    |   |   | 43,320  |   |   | --      |   |   | --      |   |   | (240,000 | )      |   | --       |   |   | 270,003    |   |        | 240,404    |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 4,029,312  |   |        | 3,650,982  |   |
|   |   |   |   | 42,439    |   |   | 38,714  |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 444,114    |   |        | 433,491    |   |
|   |   |   |   | --        |   |   | --      |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 928,851    |   |        | 899,963    |   |
|   |   |   |   | 24,270    |   |   | 23,228  |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 573,631    |   |        | 417,544    |   |
|   |   |   |   | 29,514    |   |   | 24,924  |   |   | --      |   |   | --      |   |   | --       |   |   | --       |   |   | 456,875    |   |        | 483,410    |   |
|   |   |   |   | 298,779   |   |   | 245,386 |   |   | 349,530 |   |   | 247,987 |   |   | (395,961 | )      |   | (108,023 | )      |   | 11,306,362 |   |        | 9,860,365  |   |
|   |   |   |   | 936,857   |   |   | 378,705 |   |   | 164,571 |   |   | 83,331  |   |   | (365,000 | )      |   | (200,000 | )      |   | 2,282,717  |   |        | 929,734    |   |
|   |   |   |   | 270,436   |   |   | 339,097 |   |   | (31,804 | )      |   | 162,656 |   |   | --       |   |   | --       |   |   | 685,313    |   |        | 943,566    |   |
|   |   |   |   | 1,207,293 |   |   | 717,802 |   |   | 132,767 |   |   | 245,987 |   |   | (365,000 | )      |   | (200,000 | )      |   | 2,968,030  |   |        | 1,873,300  |   |

----

Government of Saskatchewan - 2008-09 Public Accounts **117**

----

----

Summary Financial Statements 

----

| **Government Reporting Entity**For the Year Ended March 31, 2009  |   | Schedule 21                                                           |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
|                                                              |   |                                                                  |
| **Government Service Organizations** (Consolidated)               |   |                                                                  |
| Agricultural Credit Corporation of Saskatchewan                   |   |    Parkland Regional College                           |
| Agricultural Implements Board                                     |   |    Southeast Regional College                          |
| Agri-Food Innovation Fund 2                                       |   | Regional Health Authorities                                           |
| Beef Development Board                                            |   |    Cypress Regional Health Authority                   |
| Board of Governors, Uranium City Hospital                         |   |    Five Hills Regional Health Authority                |
| Cattle Marketing Deductions Fund                                  |   |    Heartland Regional Health Authority                 |
| Century Plaza Properties (The Owners: Condominium Corporation     |   |    Keewatin Yatthé Regional Health Authority    |
|    No. 101100609)                                  |   |    Kelsey Trail Regional Health Authority              |
| CIC Apex Equity Holdco Ltd. 5c 6a                                 |   |    Mamawetan Churchill River Regional Health Authority |
| CIC Economic Holdco Ltd. 5c 6a                                    |   |    Prairie North Regional Health Authority             |
| Commercial Revolving Fund                                         |   |    Prince Albert Parkland Regional Health Authority    |
| Community Initiatives Fund                                        |   |    Regina Qu'Appelle Regional Health Authority         |
| Correctional Facilities Industries Revolving Fund                 |   |    Saskatoon Regional Health Authority                 |
| Crop Reinsurance Fund of Saskatchewan 6b                          |   |    Sun Country Regional Health Authority               |
| Crown Investments Corporation of Saskatchewan                     |   |    Sunrise Regional Health Authority                   |
|    (non-consolidated) 5c 6a                        |   | Resource Protection and Development Revolving Fund 2                  |
| Enterprise Saskatchewan 1                                         |   | Saskatchewan Agricultural Stabilization Fund                          |
| Extended Health Care Plan for Certain Other Employees 5c          |   | Saskatchewan Apprenticeship and Trade Certification Commission 5a     |
| First Nations and Metis Fund Inc. 5c 6a                           |   | Saskatchewan Archives Board                                           |
| Fiscal Stabilization Fund 2                                       |   | Saskatchewan Arts Board                                               |
| Fish and Wildlife Development Fund                                |   | Saskatchewan Association of Health Organizations                      |
| General Revenue Fund                                              |   | Saskatchewan Cancer Agency                                            |
| Government House Foundation                                       |   | Saskatchewan Centre of the Arts Fund                                  |
| Gradworks Inc. 5c 6a                                              |   | Saskatchewan Communications Network Corporation                       |
| Growth and Financial Security Fund 1                              |   | Saskatchewan Crop Insurance Corporation 6b                            |
| Health Quality Council                                            |   | Saskatchewan Development Fund Corporation 5c 6a                       |
| Horned Cattle Fund                                                |   | Saskatchewan Grain Car Corporation 5b                                 |
| Individual Cattle Feeder Loan Guarantee Provincial Assurance Fund |   | Saskatchewan Health Information Network                               |
| Information Services Corporation of Saskatchewan 5c 6a            |   | Saskatchewan Health Research Foundation                               |
| Institutional Control Monitoring and Maintenance Fund             |   | Saskatchewan Heritage Foundation                                      |
| Institutional Control Unforeseen Events Fund                      |   | Saskatchewan Housing Corporation 5c                                   |
| Investment Saskatchewan Inc. 5c 6a                                |   | Saskatchewan Impaired Driver Treatment Centre Board of Governors      |
| Law Reform Commission of Saskatchewan                             |   | Saskatchewan Infrastructure Fund 2                                    |
| Livestock Services Revolving Fund                                 |   | Saskatchewan Institute of Applied Science and Technology 5a           |
| Milk Control Board 5c                                             |   | Saskatchewan Labour Market Commission                                 |
| Mistik Forest Management Trust                                    |   | Saskatchewan Legal Aid Commission                                     |
| North Sask Laundry and Support Services Ltd.                      |   | Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation   |
| Northern Revenue Sharing Trust Account 5c                         |   | Saskatchewan Opportunities Corporation 5c 6a                          |
| Oil and Gas Orphan Fund                                           |   | Saskatchewan Research Council                                         |
| Operator Certification Board                                      |   | Saskatchewan Snowmobile Fund                                          |
| Pastures Revolving Fund                                           |   | Saskatchewan Student Aid Fund                                         |
| Prairie Agricultural Machinery Institute                          |   | Saskatchewan Transportation Company 5c 6a                             |
| Public Employees Benefits Agency Revolving Fund                   |   | Saskatchewan Water Corporation 5c 6a                                  |
| Public Employees Dental Fund 5c                                   |   | Saskatchewan Watershed Authority                                      |
| Public Employees Disability Income Fund 5c                        |   | Saskatchewan Western Development Museum                               |
| Public Employees Group Life Insurance Fund 5c                     |   | Sask911 Account                                                       |
| Queen's Printer Revolving Fund                                    |   | Technology Supported Learning Revolving Fund                          |
| Regional Colleges 5a                                              |   | Training Completions Fund                                             |
|    Carlton Trail Regional College                  |   | Transportation Partnerships Fund                                      |
|    Cumberland Regional College                     |   | University of Regina Crown Foundation 3                               |
|    Great Plains College 4                          |   | University of Saskatchewan Crown Foundation 3                         |
|    Northlands College                              |   | Victims' Fund                                                         |
|    North West Regional College                     |   | Water Appeal Board                                                    |

----

**118**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Summary Financial Statements 

----

| **Government Reporting Entity*****(continued)***For the Year Ended March 31, 2009 |   | Schedule 21 |
|-----------------------------------------------------------------------------------|--------|-------------|
|                                                                              |   |        |
| **Government Business Enterprises** (Modified Equity)                             |   |        |
| Liquor and Gaming Authority                                                       |   |        |
| Municipal Financing Corporation of Saskatchewan 5c                                |   |        |
| Saskatchewan Auto Fund 5c 6b                                                      |   |        |
| Saskatchewan Gaming Corporation 5c 6a                                             |   |        |
| Saskatchewan Government Growth Fund Management Corporation 2 5c 6a                |   |        |
| Saskatchewan Government Insurance 5c 6a                                           |   |        |
| Saskatchewan Power Corporation 5c 6a                                              |   |        |
| Saskatchewan Telecommunications Holding Corporation 5c 6a                         |   |        |
| SaskEnergy Incorporated 5c 6a                                                     |   |        |
| Workers' Compensation Board (Saskatchewan) 5c 6b                                  |   |        |

----

| 1 | Organization established during 2008-09. |
|---|------------------------------------------|

| 2 | Organization wound up during 2008-09. |
|---|---------------------------------------|

| 3 | Organization determined to be part of the government reporting entity during 2008-09. |
|---|---------------------------------------------------------------------------------------|

| 4 | Organization formed during 2008-09 from the merger of Cypress Hills Regional College and Prairie West Regional College. |
|---|-------------------------------------------------------------------------------------------------------------------------|

| 5 | The year-ends of certain organizations differ from March 31, 2009: a June 2008; b July 2008; c December 2008. |
|---|---------------------------------------------------------------------------------------------------------------|

| 6 | For segment disclosure *(schedule 20)* certain organizations are classified into categories other than Treasury Board Organizations as follows: a CIC Board Organizations; b Not-for-Profit Insurance Organizations. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts **119**

----

----

----

----

# Supplementary Information (unaudited) 

----

----

----

----

Supplementary Information

----

| **Growth and Financial Security Fund                Schedule of Transfers and Accumulated Balance**For the Year ended March 31, 2009*(thousands of dollars)* |   |   |   |      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|
||
||
||
| Balance, beginning of year                                                                                                                                   |   |   |   | --        |   |   | -- |   |
| Transfer of Fiscal Stabilization Fund Balance                                                                                                                |   |   |   | 1,234,181 |   |   | 1,528,934 |   |
| Transfer of Saskatchewan Infrastructure Fund balance                                                                                                         |   |   |   | 105,090   |   |   | 108,090 |   |
|                                                                                                                                                         |   |   |   | 1,339,271 |   |   | 1,634,024 |   |
| Transfer from the General Revenue Fund                                                                                                                       |   |   |   | 124,810   |   |   | 984,967 |   |
| Transfer to the General Revenue Fund                                                                                                                         |   |   |   | (125,190  | )      |   | (1,403,897 | ) |
| **Balance, End of Year**                                                                                                                                     |   |   |   | 1,338,891 |   |   | 1,215,094 |   |

The Growth and Financial Security Fund (Fund) was established May 14, 2008, by *The Growth and Financial Security Act*. Pursuant to this legislation, the balances of the Fiscal Stabilization Fund and the Saskatchewan Infrastructure Fund were transferred to the Fund. 

The purposes of the Fund are: 

| • | to assist in the achievement of the Province's long-term objectives by providing for financial security of the Government from year to year; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| • | to provide a source of funds that are available for programs that have been identified as promoting or enhancing the economic development of the Province. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

In accordance with *The Growth and Financial Security Act*, the Fund receives 50 per cent of the pre-transfer surplus of the General Revenue Fund (GRF) in any fiscal year. This legislation also permits Treasury Board to approve other transfers between the Fund and the GRF. 

Transfers to the Fund from the GRF are statutory disbursements. Amounts transferred to the GRF from the Fund are available for expenses subsequent to receiving required approval from the Legislative Assembly. 

In accordance with *The Growth and Financial Security Act*, all earnings on the Fund’s investments are credited to the GRF. For 2008-09, this amount was $44.4 million. 

The Fund’s assets have been invested in fixed income securities as follows: 

|                                                                                                                |   |   |   |      |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|
||
| Long-term investments in securities of:                                                                             |   |   |   |           |   |
|    Governments of other provinces (coupon interest range 4.4% to 6.0%; maturing in 2.7 to 4.5 years) |   |   |   | 242,309   |   |
|    Government of Saskatchewan (coupon interest 5.3%; maturing in 3.7 years)                          |   |   |   | 9,091     |   |
|    Canadian chartered banks and other corporations (coupon interest range 4.4% to 7.2%;              |   |   |   |      |   |
|       maturing in 1.2 to 3.9 years)                                                   |   |   |   | 261,150   |   |
| Cash, accounts reveivabel, short-term investments and accrued interest                                              |   |   |   | 702,544   |   |
| Total Growth and Financial Security Fund                                                                            |   |   |   | 1,215,094 |   |

The portfolio investments noted above are accounted for using the cost method. Under this approach, the Fund earned an annualized return of 3.6 per cent for the year ended March 31, 2009. 

The market value of the Fund’s net assets at March 31, 2009 is $1,235.0 million. 

----

Government of Saskatchewan - 2008-09 Public Accounts **123**

----

----

Supplementary Information 

----

**General Revenue Fund - Public Issue Debentures**        As at March 31, 2009 *(dollars)*

| Date of                Issue                                                                                                                                                                                                                                                                                                                                                                                              | Date of                Maturity | Interest                Rate                % | Interest                Payments | Currency | Purpose of                Issue                        | Amount                Outstanding                               | Total Issue                Outstanding | Equity of                Applicable                Sinking Fund | Sinking                Fund                Contribution                2008-09 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|-----------------------------------------------|----------------------------------|----------|--------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Aug. 3/04                                                                                                                                                                                                                                                                                                                                                                                                                 | June 17/09                      | 4.00-5.50                                     | Semiannual                       | Can.     | GRF                                                    | 26,000,000                                                      | 26,000,000                             | 16,572,577                                                      | 15,260,000                                                                     |
| (Canadian medium term note; Extendible at the option of the holder to                June 17, 2019; This note pays interest of 4.00% to June 17, 2009 and 5.50%                thereafter; This book-based note is held in the Canadian Depository for                Securities)                                                                                                                                         |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| July 15/04                                                                                                                                                                                                                                                                                                                                                                                                                | July 15/09                      | 2.50                                          | Annual                           | Can.     | GRF                                                    | 3,810,600                                                       | 3,810,600                              | --                                                              | --                                                                             |
| (Savings Bond; Redeemable annually at the option of the holder or any time                on the death of the holder; The bonds pay a minimum interest rate of 2.10%;                The Province reserves the right to increase the interest rate after                July 14, 2005; Payable at any Saskatchewan branch of a chartered bank,                trust company and the Credit Union Central of Saskatchewan) |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Sept. 24/02                                                                                                                                                                                                                                                                                                                                                                                                               | Sept. 24/09                     | 4.75                                          | Annual                           | Can.     | GRF                Sask Crop                Sask Water | 195,500,000                50,000,000                4,500,000  | 250,000,000                            | 243,456,411                                                     | 208,600,000                                                                    |
| (Euro medium term note; Non-callable; Payable in London)                                                                                                                                                                                                                                                                                                                                                                  |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Nov. 12/99                                                                                                                                                                                                                                                                                                                                                                                                                | Nov. 12/09                      | 6.50                                          | Semiannual                       | Can.     | GRF                                                    | 250,000,000                                                     | 250,000,000                            | 248,137,701                                                     | 216,500,000                                                                    |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                     |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Jan. 18/90                                                                                                                                                                                                                                                                                                                                                                                                                | Jan. 18/10                      | 10.00                                         | Semiannual                       | Can.     | GRF                                                    | 300,000,000                                                     | 300,000,000                            | 299,906,224                                                     | 180,000,000                                                                    |
| (Non-callable; Payable at any Canadian branch of the Royal Bank of                Canada)                                                                                                                                                                                                                                                                                                                                 |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| July 15/05                                                                                                                                                                                                                                                                                                                                                                                                                | July 15/10                      | 2.50                                          | Annual                           | Can.     | GRF                                                    | 7,765,900                                                       | 7,765,900                              | --                                                              | --                                                                             |
| (Savings Bond; Redeemable annually at the option of the holder or any time                on the death of the holder; The bonds pay a minimum interest rate of 2.50%;                The Province reserves the right to increase the interest rate after                July 14, 2006; Payable at any Saskatchewan branch of a chartered bank,                trust company and the Credit Union Central of Saskatchewan) |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Sept. 1/00                                                                                                                                                                                                                                                                                                                                                                                                                | Sept. 1/10                      | 6.15                                          | Semiannual                       | Can.     | GRF                SaskTel                SaskEnergy   | 380,000,000                90,000,000                80,000,000 | 550,000,000                            | 379,733,360                                                     | 325,500,000                                                                    |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                     |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| July 15/06                                                                                                                                                                                                                                                                                                                                                                                                                | July 15/11                      | 4.00                                          | Annual                           | Can.     | GRF                                                    | 51,680,500                                                      | 51,680,500                             | --                                                              | --                                                                             |
| (Savings Bond; Redeemable annually at the option of the holder or any time                on the death of the holder; The bonds pay a minimum interest rate of 4.00%;                The Province reserves the right to increase the interest rate after                July 14, 2007; Payable at any Saskatchewan branch of a chartered bank,                trust company and the Credit Union Central of Saskatchewan) |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| June 10/03                                                                                                                                                                                                                                                                                                                                                                                                                | Sept. 5/11                      | 4.75-5.80                                     | Semiannual                       | Can.     | GRF                                                    | 104,500,000                                                     | 104,500,000                            | 58,435,009                                                      | 51,045,000                                                                     |
| (Canadian medium term note; Extendible at the option of the holder to                September 5, 2033; This note pays interest at 4.75% to September 5,                2011, and 5.80% thereafter; This book-based note is held in the                Canadian Depository for Securities)                                                                                                                                |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| July 15/07                                                                                                                                                                                                                                                                                                                                                                                                                | July 15/12                      | 4.20                                          | Annual                           | Can.     | GRF                                                    | 180,673,800                                                     | 180,673,800                            | --                                                              | --                                                                             |
| (Savings Bond; Redeemable annually at the option of the holder or any time                on the death of the holder; The bonds pay a minimum interest rate of 4.20%;                The Province reserves the right to increase the interest rate after                July 14, 2008; Payable at any Saskatchewan branch of a chartered bank,                trust company and the Credit Union Central of Saskatchewan) |                            |                                          |                             |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                      |                            |                                          |                             |     |                                                   |                                                            |                                   |                                                            |                                                                           |
| Sept. 20/02                                                                                                                                                                                                                                                                                                                                                                                                               | Dec. 3/12                       | 5.25                                          | Semiannual                       | Can.     | GRF                SaskEnergy                          | 300,000,000                50,000,000                           | 350,000,000                            | 265,355,058                                                     | 243,500,000                                                                    |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                     |                            |                                          |                             |     |

----

**124**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Supplementary Information 

----

**General Revenue Fund - Public Issue Debentures*****(continued)***

| Date of                Issue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Date of                Maturity | Interest                Rate                %   | Interest                Payments | Currency                                     | Purpose of                Issue                  | Amount                Outstanding                                                                  | Total Issue                Outstanding | Equity of                Applicable                Sinking Fund | Sinking                Fund                Contribution                2008-09 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|-------------------------------------------------|----------------------------------|----------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Feb. 2/93                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Feb 1/13                        | 7.613                                           | Semiannual                       | Can.                                         | GRF                                              | 568,212,000                                                                              | 568,212,000                            | 483,605,932                                           | 345,682,120                                                                    |
| (The original 8% 400,000,000 U.S. dollar debentures have been swapped                into Canadian dollars at an interest rate of 7.613%; Non-callable; Payable                in New York)                                                                                                                                                                                                                                                                                                                                                                                          |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| June 17/03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | June 17/13                      | 4.75                                            | Annual                           | Can.                                         | GRF                MFC                           | 195,000,000                  5,000,000                                         | 200,000,000                            | 88,782,760                                            | 79,000,000                                                                     |
| (Euro medium term note; Non-callable; Payable in London)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| July 20/93                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | July 15/13                      | 7.375                7.809                7.753 | Semiannual                       | U.S.                Can.                Can. | GRF                SaskPower                GRF  | 50,000,000*                97,147,500                  228,639,500             | 375,787,000                            | 47,176,380*                41,135,421                 | --                3,907,900                                                    |
| (175,000,000 U.S. dollars of the GRF's 225,000,000 U.S. dollar share of the                7.375% debenture issue has been swapped into Canadian dollars at an                interest rate of 7.753%. Interest payments on the remaining 50,000,000 U.S.                dollars have been swapped into Canadian dollars at an interest rate of 7.912%;                SaskPower's 75,000,000 U.S. dollar share of the 7.375% debenture issue                has been swapped into Canadian dollars at an interest rate of 7.809%;                Non-callable; Payable in New York) |                            |                                            |                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| July 15/08                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | July 15/13                      | 2.50                                            | Annual                           | Can.                                         | GRF                                              | 3,310,300                                                                                | 3,310,300                              | --                                                    | --                                                                             |
| (Savings Bond; Redeemable annually at the option of the holder or any time                on the death of the holder; The bonds pay a minimum interest rate of 2.50%;                The Province reserves the right to increase the interest rate after                July 14, 2009; Payable at any Saskatchewan branch of a chartered bank,                trust company and the Credit Union Central of Saskatchewan)                                                                                                                                                            |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Sept. 30/03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Dec. 3/13                       | 4.90                                            | Semiannual                       | Can.                                         | GRF                SaskEnergy                    | 150,000,000                  50,000,000                                        | 200,000,000                            | 11,403,070                                            | 2,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| March 14/91                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | April 10/14                     | 10.25                                           | Semiannual                       | Can.                                         | GRF                                              | 583,916,000                                                                              | 583,916,000                            | 199,334,260                                           | 5,839,160                                                            |
| (Non-callable; Payable at any Canadian branch of the Royal Bank of                Canada)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| June 22/04                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | June 3/14                       | 5.25                                            | Semiannual                       | Can.                                         | GRF                SaskEnergy                    | 250,000,000                  50,000,000                                        | 300,000,000                            | 13,622,396                                            | 3,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| June 3/05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Dec. 3/15                       | 4.25                                            | Semiannual                       | Can.                                         | GRF                SaskEnergy                MFC | 145,000,000                  50,000,000                  5,000,000   | 200,000,000                            | 8,805,251                                             | 2,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depositor                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Nov. 15/05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Jan. 15/16                      | 4.305                                           | Semiannual                       | Can.                                         | GRF                                              | 274,654,700                                                                              | 274,654,700                            | 8,789,410                                             | 2,746,575                                                                      |
| (The original 2.125% 300,000,000 Swiss Franc debentures have been                swapped into Canadian dollars at an interest rate of 4.305%; Non-callable;                Payable in Zurich)                                                                                                                                                                                                                                                                                                                                                                                        |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Aug. 23/06                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Aug. 23/16                      | 4.50                                            | Semiannual                       | Can.                                         | GRF                SaskEnergy                    | 255,000,000                  45,000,000                                        | 300,000,000                            | 6,390,374                                             | 3,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Sept. 17/96                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Sept. 17/16                     | 8.07                                            | Semiannual                       | Can.                                         | GRF                                              | 11,394,000                                                                               | 11,394,000                             | --                                                    | --                                                                             |
| (Canadian medium term serial note; Payable in annual instalments;                 Non-callable; Payable in Regina)                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                            |                                            |                             |                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |                                            |                             |                                         |                                             |                                                                                               |                                   |                                                            |                                                                           |
| Sept. 5/07                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Sept. 5/17                      | 4.65                                            | Semiannual                       | Can.                                         | GRF                SaskEnergy                    | 160,000,000                  40,000,000                                        | 200,000,000                            | 2,061,541                                             | 2,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                            |                             |                                         |

----

Government of Saskatchewan - 2008-09 Public Accounts **125**

----

----

Supplementary Information 

----

**General Revenue Rund - Public Issue Debentures*****(continued)***

| Date of                Issue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Date of                Maturity | Interest                Rate                %                        | Interest                Payments | Currency                                                         | Purpose of                Issue                                         | Amount                Outstanding                                                                                               | Total Issue                Outstanding | Equity of                Applicable                Sinking Fund | Sinking                Fund                Contribution                2008-09 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|----------------------------------------------------------------------|----------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| June 17/04                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | June 17/19                      | 5.50                                                                 | Semiannual                       | Can.                                                             | GRF                                                                     | 33,000,000                                                                                                            | 33,000,000                             | 1,498,464                                             | 330,000                                                    |
| (Canadian medium term note; After June 17, 2014, this note pays interest                at the three month bankers' acceptance rate less 0.245%; Non-callable;                This book-based note is held in the Canadian Depository for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Dec. 20/90                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Dec. 15/20                      | 9.375                9.653                10.08                9.965 | Semiannual                       | U.S.                Can.                Can.                Can. | GRF                GRF                SaskTel                Sask Power | 45,000,000*                65,972,500                  126,600,000                  128,797,500   | 366,370,000                            | 30,823,732*                61,777,496                 | --                    3,753,500        |
| (55,000,000 U.S. dollars of the GRF's 100,000,000 U.S. dollar share of the                9.375% debenture issue has been swapped into Canadian dollars at an                interest rate of 9.653%. Interest payments on the remaining 45,000,000 U.S.                dollars have been swapped into Canadian dollars at an interest rate of                9.653%. SaskTel's 100,000,000 U.S. dollar share of the 9.375% debenture                issue has been swapped into Canadian dollars at an interest rate of 10.08%;                Sask Power's 100,000,000 U.S. dollar share of the 9.375% debenture issue                has been swapped into Canadian dollars at an interest rate of 9.965%;                Non-callable; Payable in New York) |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Feb. 26/91                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Feb. 15/21                      | 9.254                9.125                                           | Semiannual                       | Can.                U.S.                                         | GRF                GRF                                                  | 147,600,000                  80,000,000*                                                                              | 227,600,000                            | 10,713,844                  60,752,658*               | 2,460,000                    --        |
| (120,000,000 U.S. dollars of this debenture issue has been swapped into                Canadian dollars at an interest rate of 9.254%. Interest payments on the                remaining 80,000,000 U.S. dollars have been swapped into Canadian                dollars at an interest rate of 9.254%; Non-callable; Payable in New York)                                                                                                                                                                                                                                                                                                                                                                                                                       |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Feb. 4/92                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Feb. 4/22                       | 9.60                                                                 | Semiannual                       | Can.                                                             | SaskPower                GRF                                            | 240,000,000                  15,000,000                                                                     | 255,000,000                            | 77,296,617                                            | 2,550,000                                                  |
| (Non-callable; Payable at any Canadian branch of the Royal Bank of                Canada)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| July 21/92                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | July 15/22                      | 8.50                8.942                                            | Semiannual                       | U.S.                Can.                                         | GRF                SaskPower                                            | 100,000,000*                256,320,000                                                                               | 356,320,000                            | 72,050,460*                20,313,915                 | 1,016,700**                2,563,200                       |
| (Interest payments on the GRF's 100,000,000 U.S. dollar share of the 8.50%                debenture issue have been swapped into Canadian dollars at an interest                rate of 8.497%; Sask Power's 200,000,000 U.S. dollar share of the 8.50%                debenture issue has been swapped into Canadian dollars at an interest                rate of 8.942%; Non-callable; Payable in New York)                                                                                                                                                                                                                                                                                                                                                  |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| May 30/95                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | May 30/25                       | 8.75                                                                 | Semiannual                       | Can.                                                             | SaskPower                SaskEnergy                                     | 100,000,000                  75,000,000                                                                     | 175,000,000                            | 36,627,245                                            | 1,750,000                                                  |
| (Non-callable; Payable at any Canadian branch of the Royal Bank of                Canada)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Dec. 4/98                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | March 5/29                      | 5.75                                                                 | Semiannual                       | Can.                                                             | GRF                SaskTel                SaskEnergy                    | 250,000,000                  75,000,000                  25,000,000                               | 350,000,000                            | 42,430,496                                            | 3,500,000                                                  |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| March 24/99                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | March 5/29                      | 5.60                                                                 | Semiannual                       | Can.                                                             | SaskTel                SaskEnergy                                       | 35,000,000                  25,000,000                                                                      | 60,000,000                             | 1,902,371                                             | 600,000                                                    |
| (Canadian medium term note; Non-callable; This book-based note is held in the                Canadian Depository for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Jan. 25/00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Jan. 25/30                      | 6.35                                                                 | Semiannual                       | Can.                                                             | GRF                                                                     | 199,995,000                                                                                                           | 199,995,000                            | 22,633,452                                            | 2,000,000                                                  |
| (Canadian medium term note; This book-based note is held in the Canadian                Depository for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Feb. 17/00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Jan. 25/30                      | 6.25                                                                 | Semiannual                       | Can.                                                             | GRF                                                                     | 25,000,000                                                                                                            | 25,000,000                             | 2,934,000                                             | 250,000                                                    |
| (Canadian medium term note; Non-callable; This book-based note is held                in the Canadian Depository for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            |                                                                 |                             |                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                            |                                                                 |                             |                                                             |                                                                    |                                                                                                                            |                                   |                                                            |                                                                           |
| Dec. 10/01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Sept. 5/31                      | 6.40                                                                 | Semiannual                       | Can.                                                             | GRF                SaskPower                SaskEnergy                  | 190,000,000                  300,000,000                  60,000,000                              | 550,000,000                            | 46,387,969                                            | 5,500,000                                                  |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                            |                                                                 |                             |                                                             |

----

**126**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Supplementary Information 

----

**General Revenue Rund - Public Issue Debentures*****(continued)***

| Date of                Issue                                                                                                                                                                                                       | Date of                Maturity | Interest                Rate                % | Interest                Payments | Currency | Purpose of                Issue                        | Amount                Outstanding                                | Total Issue                Outstanding | Equity of                Applicable                Sinking Fund | Sinking                Fund                Contribution                2008-09 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|-----------------------------------------------|----------------------------------|----------|--------------------------------------------------------|------------------------------------------------------------------|----------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| Feb. 13/02                                                                                                                                                                                                                         | Feb. 13/32                      | 6.30                                          | Semiannual                       | Can.     | GRF                                                    | 29,954,000                                                       | 29,954,000                   | 5,694,244                                             | 673,750                                                                        |
| (Canadian medium term note; This book-based note is held in the Canadian                Depository for Securities)                                                                                                                 |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| May 12/03                                                                                                                                                                                                                          | Sept. 5/33                      | 5.80                                          | Semiannual                       | Can.     | GRF                SaskPower                           | 150,000,000                300,000,000                           | 450,000,000                  | 26,106,860                                            | 4,500,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                              |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| Aug. 12/04                                                                                                                                                                                                                         | Sept. 5/35                      | 5.60                                          | Semiannual                       | Can.     | GRF                SaskPower                           | 200,000,000                200,000,000                           | 400,000,000                  | 17,896,160                                            | 4,000,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                 for Securities)                                                                                                                        |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| Feb. 15/05                                                                                                                                                                                                                         | March 5/37                      | 5.00                                          | Semiannual                       | Can.     | SaskEnergy                SaskPower                    | 25,000,000                400,000,000                            | 425,000,000                  | 17,264,551                                            | 4,250,000                                                                      |
| (Non-callable; This book-based note is held in the Canadian Depository                for Securities)                                                                                                                              |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| May 26/06                                                                                                                                                                                                                          | June 1/40                       | 4.75                                          | Semiannual                       | Can.     | GRF                SaskEnergy                SaskPower | 325,000,000                75,000,000                450,000,000 | 850,000,000                  | 8,463,312                                             | 6,000,000                                                                      |
| (This issue was reopened again on April 2, 2008, and an additional                 $250,000,000 of debentures were sold; Non-callable; This book-based note                is held in the Canadian Depository for Securities) |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| Sept. 16/02                                                                                                                                                                                                                        | Sept. 5/42                      | 5.70                                          | Semiannual                       | Can.     | GRF                                                    | 50,000,000                                                       | 50,000,000                   | 3,638,205                                             | 500,000                                                                        |
| (Canadian medium term note; Non-callable; This book-based note is held                in the Canadian Depository for Securities)                                                                                                   |                            |                                          |                             |     |
|                                                                                                                                                                                                                               |                            |                                          |                             |     |                                                   |                                                             |                                   |                                                            |                                                                           |
| Adjustment                                                                                                                                                                                                                         |                            |                                          |                             |     |                                                   |                                                             | 71,555,000*                            | 54,851,000*                                                     | --                                                                             |
| **Total**                                                                                                                                                                                                                          |                            |                                          |                             |     |                                                   |                                                             | 10,166,498,800               | 3,044,760,186                                         | 1,735,777,905                                                                  |

| * | Adjustments to reflect conversion of debentures and related sinking funds quoted in foreign currencies to Canadian dollars using the exchange rate in effect at March 31, 2009 (U.S. $1.2602) |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Sinking fund contributions to U.S. dollar sinking funds are made in U.S. dollars. Contributions are shown at the cost in Canadian dollars to purchase U.S. dollars equal to the contribution amount. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Government of Saskatchewan - 2008-09 Public Accounts **127**

----

----

Supplementary Information 

----

**General Revenue Fund - Debentures Issued to the Minister of Finance of Canada**As at March 31, 2009        (dollars) 

| Date of Issue                            | Date of Maturity        | Interest                Rate % | Amount                Outstanding |
|------------------------------------------|-------------------------|--------------------------------|-----------------------------------|
| **Canada Pension Plan Investment Fund*** |                    |                           |                              |
| April 1989 - March 1990                  | April 2009 - March 2010 | 9.90                           | 101,867,000                       |
| April 1990 - March 1991                  | April 2010 - March 2011 | 10.85                          | 90,318,000                        |
| April 1991 - March 1992                  | April 2011 - March 2012 | 9.92                           | 90,664,000                        |
| April 1992 - March 1993                  | April 2012 - March 2013 | 9.37                           | 62,705,000                        |
| April 1999 - March 2000                  | April 2019 - March 2020 | 6.34                           | 46,335,000                        |
| April 2000 - March 2001                  | April 2020 - March 2021 | 6.54                           | 75,553,000                        |
| April 2002 - March 2003                  | April 2022 - March 2023 | 5.89                           | 41,182,000                        |
| April 2003 - March 2004                  | April 2023 - March 2024 | 5.48                           | 40,189,000                        |
| April 2005 - March 2006                  | April 2015 - March 2036 | 4.63                           | 20,654,000                        |
| April 2006 - March 2007                  | April 2011 - March 2027 | 4.58                           | 99,655,000                        |
| April 2007 - March 2008                  | April 2017 - March 2028 | 4.65                           | 35,491,000                        |
| April 2008 - March 2009                  | April 2013 - March 2039 | 4.49                           | 40,484,000                        |
| **Total**                                |                    |                           | 745,097,000                       |

The average effective interest rate on debentures issued to the Minister of Finance of Canada is 7.55%. 

| * | Canada Pension Plan debentures have a 5-30 year maturity and are callable in whole or in part before maturity, on six business days prior notice at the option of the Minister of Finance of Saskatchewan. Canada Pension Plan debentures are subject in part to annual sinking funds; equity in sinking funds at March 31, 2009, $319,476,711. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**128**Government of Saskatchewan - 2008-09 Public Accounts 

----

----

Supplementary Information 

----

**Glossary of Terms**

**Accrual Accounting**        The method used to prepare the financial statements included in Volume 1 of the Public Accounts. Accrual accounting recognizes financial transactions at the time they occur, regardless of whether any cash is received or paid. 

**Accumulated Surplus (Deficit)**One of the two measures of a government’s financial position (see net debt). The accumulated surplus (deficit) is the amount by which revenues have exceeded expenses (expenses have exceeded revenues) from the beginning of incorporation (1905) plus any adjustments that were charged directly to the accumulated surplus (deficit). It is calculated as the difference between assets and liabilities. 

**Budget**The amount presented in the Estimates and authorized by the Legislative Assembly. 

**Capital Transfer**A grant provided to a third party such as a school board, regional health authority, university or municipality to acquire or develop capital assets. 

**Consolidation**The method used to account for government service organizations in the Summary financial statements in which the accounts are adjusted to the basis of accounting described in note 1e of the Summary financial statements and then combined. Inter-organization balances and transactions are eliminated. 

**Debt**Terms used when describing debt include: 

***Government general debt*** is debt issued by the General Revenue Fund (GRF) to fund Government spending. 

***Crown corporation general debt*** is debt issued by the GRF and subsequently loaned to a Crown corporation. 

***Government business enterprise specific debt*** is debt issued by the GRF specifically on behalf of government business enterprises where the government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. 

***Gross debt*** is borrowings through the issuance of debt instruments such as promissory notes and debentures. 

***Sinking funds*** are funds set aside for the repayment of debt. 

***Public debt*** is gross debt net of sinking funds. 

***General debt*** is public debt net of government business enterprise specific debt. 

***Guaranteed debt*** is the debt of others that the Government has agreed to repay if others default. 

***Total debt*** is public debt plus guaranteed debt. 

**Debt Retirement Fund**The fund, established pursuant to *The Growth and Financial Security Act*, to account for the surpluses of the GRF commencing April 1, 2008. 

**Fiscal Stabilization Fund (FSF)**The fund established to stabilize the fiscal position of the Government and to facilitate long-term planning. The fund was wound up in May 2008 and the balance in the fund was transferred to the Growth and Financial Security Fund. 

**General Revenue Fund (GRF)**The fund into which all revenues are paid, unless otherwise provided for by Legislation, and from which all expenditures are appropriated by the Legislative Assembly. 

**Government Business Enterprises**Self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity. Government business enterprises are recorded in the Summary financial statements using the modified equity method. 

----

Government of Saskatchewan - 2008-09 Public Accounts **129**

----

----

Supplementary Information 

----

**Glossary of Terms*****(continued)***

**Government Partnerships**Investments by the Government where there is a contractual arrangement between the Government and one or more partners outside the government reporting entity and where the partners share, on an equitable basis, the risks and benefits of the partnership. Government partnerships are proportionately consolidated in the Summary financial statements. 

**Government Service Organizations**Those organizations that are controlled by the Government, except those designated as government business enterprises. Government service organizations are consolidated in the Summary financial statements after adjustment to a basis consistent with the accounting policies described in note 1e of the Summary financial statements. 

**Gross Domestic Product (GDP)**The standard measure of the overall size of the economy, the value of all goods and services produced during a period. 

**Growth and Financial Security Fund**The fund established in May of 2008 to assist in the achievement of the Government’s long-term objectives by providing for financial security of the Government from year to year and to provide a source of funds that are to be available for appropriation to be used for government programs identified as promoting or enhancing the economic development of Saskatchewan. The balances in the Fiscal Stabilization Fund and the        Saskatchewan Infrastructure Fund were transferred to the fund upon establishment of the fund in May 2008. 

**Modified Equity**The method by which government business enterprises are accounted for in the Summary financial statements. The Government’s investment, which is originally recorded at cost, is adjusted annually to include the net earnings/losses and other net equity changes of the enterprise/partnership without adjustment to conform with the accounting policies described in note 1e of the Summary financial statements. Inter-organizational        balances and transactions are disclosed but not eliminated. 

**Net Debt**One of the two measures of a government’s financial position (see accumulated surplus/deficit). Net debt is calculated as the difference between financial assets and liabilities. 

**Pension Liability**An actuarial estimate of discounted future payments to be made to retirees under government pension plans, net of plan assets. 

**Saskatchewan Infrastructure Fund (SIF)**The fund established to provide moneys that may be used to support the provision and maintenance of infrastructure in Saskatchewan that achieves the Government’s long-term objectives of: building and improving Saskatchewan communities; building and improving the capacity of social and economic development in Saskatchewan; and meeting the growing needs of Saskatchewan families. The fund was wound up in May 2008 and the        balance in the fund was transferred to the Growth and Financial Security Fund. 

**Summary Financial Statements (SFS)**The statements prepared to account for the full nature and extent of the financial activities of the Government. The SFS includes the financial activities of organizations controlled by the Government. These organizations are segregated into two classifications, government service organizations and government business enterprises, and are collectively referred to as the government reporting entity. Trusts administered by the        Government are excluded from the government reporting entity. 

**Transfer**A transfer of money from a government to an individual, an organization or another government for which the government making the transfer does not: receive any goods or services directly in return, as would occur in a purchase/sale transaction; expect to be repaid in the future, as would be expected in a loan; or expect a financial return, as would be expected in an investment. Major types of transfers include entitlements,        transfers under shared cost agreements and grants. 

----

**130**Government of Saskatchewan - 2008-09 Public Accounts 

----