BCCNP 2018 Annual Report · (Squamish) and Səl ... Anishinabek Nation BCCNP Board and Committees...
Transcript of BCCNP 2018 Annual Report · (Squamish) and Səl ... Anishinabek Nation BCCNP Board and Committees...
BCCNP 2018 Annual ReportINNOVATION IN NURSING REGULATION
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Welcome to the BCCNP 2018 annual reportThe British Columbia College of Nursing Professionals (BCCNP) was established on September 4, 2018, when
the College of Licensed Practical Nurses of BC, the College of Registered Nurses of BC and the College of Reg-
istered Psychiatric Nurses of BC came together to create a single nurse regulator in British Columbia.
This report details regulatory activities for the entirety of 2018, including activities and finances of the former
nursing colleges, as well as BCCNP.
BCCNP acknowledges and respects that the land on which we are located is the unceded territory of
the Coast Salish Peoples, including the territories of the xʷməθkwəy̓əm (Musqueam), Skwxwú7mesh (Squamish) and Səl̓ílwətaʔ/Selilwitulh (Tsleil-Waututh) Nations.
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Message from the Board Chair and Registrar/CEO ..................................................................4
BCCNP Board and Committees .........................................................................................................6
Registrant Snapshot .................................................................................................................................8
Registration ................................................................................................................................................10
Complaints ................................................................................................................................................. 12
Education Program Review .................................................................................................................15
Standards of Practice and Regulatory Practice Support ......................................................16
Quality Assurance ...................................................................................................................................18
Fees and Expenses .................................................................................................................................21
Table of Contents
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Message from the Board Chair and Registrar/CEOWe did it.
On September 4, 2018, the British Columbia College of Nursing Professionals was established as the regulator for
all nurses in B.C. and in so doing, entered an exciting new chapter in health profession regulation. The first of its
kind in our province, BCCNP is forging a bold new path to seek out new and better ways of meeting our mandate to
protect the public.
This accomplishment is the culmination of years of perseverance, collaboration and diligence from the boards of
the legacy colleges, the hard work and dedication of committee members and employees, and the support of gov-
ernment and partners within this province and across the country. Thank you to every individual who contributed to
this achievement. Together, we have turned the vision of a single nurse regulator into a reality.
And now, the work continues. BCCNP was born out of a shared commitment to improve public protection by reduc-
ing regulatory silos among the nursing designations. We continue to see opportunities to strengthen our effective-
ness as a regulator by collaborating with partners provincially, nationally and internationally. In 2018, we did this by:
Contributing to provincial efforts to optimize nursing and health profession regulation
In January 2018, the Chief Nurse Executive and the Ministry of Health’s Nursing Policy Secretariat published a
report outlining the results of a consultation process with nurses and nursing stakeholders and subsequent rec-
ommendations for optimizing nursing practice in B.C. BCCNP provided input during the consultation period, and
continues to work closely with the Nursing Policy Secretariat to implement recommendations.
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Sharing the cost of regulation
The cost of effective regulation continues to climb and is impacting all health profession regulators. One way that
we have been able to reduce costs for our organization and other health regulators is to share some of the services
that we all require to regulate. For example, a number of health regulators have signed on to our IT platform, sig-
nificantly reducing the investment and maintenance for each organization individually. In addition, in preparing to
come together as a single nurse regulator, we designed our office space to enable cohabitation and collaboration
with other health regulators. Six health regulators now share our space—and the cost—of our offices and services,
with the added benefit of increased collaboration due to our proximity. We anticipate more colleges joining us in the
months and years to come.
Collaborating with other Canadian nursing regulators
Nursing regulators across Canada are engaged in the same work and are facing the same challenges, but often work
in silos. The question was not if we should collaborate; instead, it was “why aren’t we already doing this?” In 2018,
we began working with the College and Association of Registered Nurses of Alberta and the College of Nurses of
Ontario to investigate how we could create more consistency and alignment in our regulatory approach, share best
practices and learn from each other in order to fulfill our public protection mandate as effectively and efficiently as
possible.
As we move into 2019, we look forward to continuing to play a role in the evolution of health care regulation.
Sincerely,
Maria Bishop
BCCNP Board Chair
Cynthia Johansen
BCCNP Registrar/CEO
Cynthia Johansen
BCCNP Registrar/CEO
Maria Bishop
BCCNP Board Chair
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Colin Bennett, FCPA, FCMA, LL.D (Hon), CA (Hon) Public board member
Maria Bishop, RPN, BHSc, M.Ed Board chair and registrant board member
Robert Calnan, RN, BScN, M.EdBoard vice chair and registrant board member
Pinder K. Cheema, QCPublic board member
Laurie Dokis, RNRegistrant board member Anishinabek Nation
BCCNP Board and CommitteesBCCNP is governed by the BCCNP Board, an oversight and decision-making body that ensures the college has the
resources, leadership and strategy to meet the duties and objects outlined in the Health Professions Act.
The BCCNP Board consists of eight registrant members (two from each nursing designation) and eight public members.
All members of the first board of the amalgamated college were appointed by the Minister of Health. Over the next three
years, the registrant board members will be succeeded by registrant members elected by BCCNP registrants.
2018 Board activities
The BCCNP Board was appointed on July 26, 2018 and made a number of critical decisions leading up to the
creation of BCCNP on Sept. 4, 2018. Building on the work started by the legacy college boards, the new board
approved the BCCNP bylaws and governing policies, appointed the CEO/Registrar and set fees for the 2019-20
registration year.
BCCNP board members
Janene Erickson, MPHPublic board member Nak’azdli Whut’en
Virginia Gerbrandt, LPNRegistrant board member
David Kruyt, BBA, FCPA, FCMA ICD.DPublic board member
Stanley Marchuk, MN, NP(F), CNeph(c)Registrant board member
Mandeep Kaur Mucina, Ph.D Public board member
Agustin Navarro Jr, PTPublic board member
Ruth Ringland, MN, NP(F) Registrant board member
Yvonne Savard, RPN, RN, BScN, MAED/CIRegistrant board member
Madelon Stevens, LPNRegistrant board member
Sangeeta SubramanianPublic board member
Richard Turner, B.Ed (secondary)Public board member
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BCCNP committees
Committees play a critical role in the work of the college; BCCNP benefits from the service of more than 150 com-
mittee members on an on-going basis. Appointed by the BCCNP Board, registrants and members of the public serve
on two types of committees: regulatory committees and board support committees.
Regulatory committees support the core regulatory functions of the college, and include Registration, Inquiry, Dis-
cipline, Quality Assurance, Education Program Review, Professional Practice and Standards, and Nurse Practitioner
Examinations. Board support committees are dedicated to the core work of the board and include Finance and
Audit, Governance, Nominations and Registrar and CEO Performance and Oversight.
In early 2019, the board sought feedback from committee leadership to assess committee operations and effective-
ness in the months immediately following amalgamation. The feedback was positive, particularly regarding BCCNP
staff’s support during the amalgamation. Opportunities for improvement identified include the need to recruit more
public committee members, improve orientation and development opportunities for committee members, refine the
honorarium and expense reimbursement policy and continue evaluating the role of committees versus BCCNP staff.
This work will continue in 2019.
If you would like more information about elections or are interested in serving on a BCCNP committee, please
contact [email protected].
Cultural safety for First Nations and Indigenous people
Systemic racism and discrimination continues to be a problem in many contemporary health care settings, resulting
in inappropriate treatment and barriers to accessing health care for First Nations and Indigenous people.
In 2017, the legacy nursing colleges pledged their commitment to making our health system more culturally safe
for First Nations and Indigenous people by signing the Declaration of Commitment to Cultural Safety and Humility.
BCCNP continues this commitment and is dedicated to integrating cultural safety as we evolve nursing regulation in
British Columbia.
BCCNP BENEFITS FROM THE SERVICE OF OVER
150COMMITTEE MEMBERS ON AN ONGOING BASIS
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Registrant SnapshotRegistrant breakdown as of December 31, 2018
Dec. 31, 2017 Dec. 31, 2018
Registered nurse
Practising 38,312 38,408
RN-certified practice* 1,123 1,195
Provisional 286 318
Non-practising 1,739 1,705
Nurse practitioners
Practising 443 498
Provisional 22 27
Non-practising 29 27
Licensed graduate nurses
Practising 39 27
Non-practising 2 1
Employed student nurses
Practising 872 661
Registered psychiatric nurse
Practising 2,725 2,819
Provisional 7 94
Non-practising 245 226
Employed student psychiatric nurses
Practising 0 6
Licensed practical nurse
Practising 12,587 13,070
Provisional 244 98
Non-practising 370 309
TOTAL 59,045 59,489
*RN-certified practice must have RN practising status. **Totals do not include registrants who have limits and conditions placed on their practice, or have a suspended registration.
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New registrants by initial education in 2018
LPN NP RN RN (C) RPN
BC grad 983 36 1,393 116 4
CA grad 9 9 160 6 0
CA applicant 171 8 555 32 1
IEN 5 1 221 3 1
Total 1,168 54 2,329 157 6*
*RPN numbers reflect applications received from Sept. 4 to Dec. 31, 2018.
DEFINITIONS
BC grad: new graduate of a BC nursing program
CA grad: new graduate in another jurisdiction of Canada
CA applicant: practising nursing professional in another jurisdiction of Canada
IEN: internationally educated nurse
Dual registrants
A small number of B.C. nursing professionals main-
tain registration in more than one nursing designa-
tion. On Dec. 31, 2018, 332 BCCNP registrants held
dual registration.
Dual registrants as of Dec. 31, 2018
LPN and RN 144
LPN and RPN 21
RN and RPN 167
Total 332Top 5 countries of initial education for new internationally educated nurses
South Korea
Australia
United States
India
Philippines
54.3%
22.8%
16.2%
1.9%4.8%
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Registration BCCNP is responsible for setting requirements that must be met before an individual can begin, continue or return
to nursing practice in B.C. This is an important process that helps ensure that only individuals who can practise
safely, ethically and competently can call themselves a nursing professional.
The BCCNP Registration Services team uses a number of tools—such as education and competence assessments,
exams, criminal record checks, previous investigations or conditions on practice and self-disclosures—to assess
applications for registration. Applications from individuals that do not clearly meet requirements are sent to the
Registration Committee, who review the file and either make a decision, or ask for a hearing to meet with the
applicant and gather further evidence.
AVERAGE INITIAL APPLICATIONS
RECEIVED IN 2018
340A MONTH
85 A WEEK
17A DAY
*RPN numbers reflect applications received from Sept. 4 to Dec. 31, 2018.
2018 initial registration applications by designation
2,713
1,149
137
80
RPN*
LPN
NP
RN
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2018 Registration Committee decisions
Following review of an application, the Registration Committee either makes a decision, or asks for a hearing to
meet with the applicant and gather further evidence.
Registration Committee outcomes by designation
Application
Type*
Registration
granted
Granted with
terms/limits
Refused with
requirements
Refused
registration
LPN 0 1 152 0
RN 32 3 121 4
RPN 2 1 7 2
Total 34 5 280 6
*No NP applications were reviewed by the Registration Committee in 2018
2018 Registration Committee hearing outcomes• 1 RN hearing was conducted for competence and good character. The applicant was refused registration.
• 1 LPN hearing was conducted in May 2018 for character. The applicant was granted registration.
94%
5.2%
0.8%
Fitness to practice
Competence
Good character
Refused registration decisions based on unmet requirement
In 2018, the Registration Committee refused registra-
tion to 286 applicants due to unmet requirements.
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ComplaintsBCCNP investigates complaints about nursing professionals to ensure the public is protected from incompetent,
unethical or impaired nursing practice, and that nurses do not practise unless they can do so safely. As the health-
care environment evolves, the number and complexity of complaints BCCNP receives continues to increase.
When BCCNP receives a complaint about the conduct or competence of a nursing professional in B.C., the Inquiry
and Discipline team acts under the authority of the Registrar, Inquiry Committee and the Discipline Committee to
investigate and attempt to resolve the complaint.
Summary of complaints and resolutions in 2018 LPN NP/RN RPN
Written complaints received 120 272 26
Investigations completed/resolved 64 265 25
Complaints/investigations carried forward to 2019 56 7 1
Written complaints received by designation
In 2018, BCCNP received a total of 418 “written complaints,”
which means enough information was available from the com-
plainant and witnesses in order to investigate the claim.
RPN
RN/NP
LPN
120
272
26
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Investigation outcomes
Once an investigation is complete, the Inquiry Committee reviews the complaint and the evidence to direct an
appropriate outcome. In 2018, the committee reviewed 354 cases with the following outcomes:
Investigation outcomes LPN RN/NP RPN Total
Consent agreements 36 88 16 140
Inquiry Committee Hearings (s. 39.1 Orders) 0 2 0 2
Registrar dismissal 14 92 1 107
No further action required 10 26 7 43
Letter of expectation 0 17 1 18
Other action (former registrants — not practising) 4 40 0 44
Total 64 265 25 354
Action taken: Consent agreements
Of the 354 investigations concluded in 2018, 140 resulted in consent agreements. A consent agreement is a legal
agreement between a registrant and BCCNP (approved by the Inquiry Committee or Registrar) that outlines the ac-
tion the registrant has agreed to take to address the issue or issues identified during the investigation process.
Consent agreement action (by most significant) LPN NP/RN RPN
Cancellation of registration 0 1 0
Suspension of registration (may have limits and conditions on practice upon return) 0 15 1
Limits and conditions on nursing practice 9 26 3
Voluntary relinquishment of registration 1 1 1
Reprimand 2 16 5
Education and regulatory practice consultation 18 15 6
Medical monitoring or counselling 6 5 0
Agreement not to repeat 0 9 0
Total 36 88 16
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Interim action to protect the public
In most cases, BCCNP manages potential risk during an investigation by reaching an agree-
ment with the registrant that limits how or whether they can practise during investigation.
Sometimes an agreement cannot be reached. In rare, urgent circumstances where there is
evidence of a serious ongoing threat to patient safety, the Inquiry Committee can limit or
suspend a nurse’s registration while a complaint is being investigated, or pending a discipline
hearing (Section 35 of the Health Professions Act).
Monitored cases as of Dec. 31, 2018
Once a registrant has entered into a consent agreement or an order has been imposed by
the Inquiry Committee or Discipline Committee, BCCNP monitors their compliance with any
required remedial actions, limits and conditions. Any activity that demonstrates a registrant
may not be in compliance with their consent agreement or order is shared with the Inquiry
Committee for consideration and further investigation as necessary.
2018 citations and discipline hearings
Following the investigation of a complaint, a citation may be issued for a discipline hearing. Most often this hap-
pens when:
1. The Inquiry Committee determines there is enough evi-
dence to conclude there is a concern impacting practice,
but the registrant denies the allegations; or
2. The registrant is unwilling to enter an agreement to rem-
edy the matter, despite admitting that the allegation took
place.
During a discipline hearing, a panel of three Discipline Committee members hear from witnesses and review evidence
to determine what, if any, intervention by the regulator is required to ensure public safety. If a consent agreement is
signed prior to the hearing, the hearing does not take place.
2018 Citations and Hearings LPN NP/RN RPN
Citations directed by Inquiry Committee
1 8 0
Discipline Committee hearings commenced
0 2 0
RPN
RN/NP
LPN
1
3
3
RPN
RN/NP
LPN 163131
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Education Program Review Education is the foundation of safe and eth-
ical nursing practice. BCCNP reviews and
recognizes nursing education programs in
B.C. to ensure they meet the standards and
indicators outlined by the board, and produce
graduates capable of meeting the entry level
competencies for the nursing designations.
Only applicants from board-recognized nursing
programs (or equivalents in other jurisdictions)
can seek registration from BCCNP.
Education Program Review Committee Standing Panels review nursing education programs and qualifying courses
required for registration and make recommendations to the board regarding recognition length and any terms and
conditions of recognition.
Once recognized, education programs undergo regular review. Education programs submit a self-assessment report that
demonstrates how they are meeting the standards and indicators, which is confirmed by a site visit and subsequent
report by contracted representatives of BCCNP.
Program/Course TypeCurrently
RecognizedReviewed in
2018
Certified practice courses 5 2
Nurse practitioner education program 3 0
Licensed practical nurse education program 36 12
Psychiatric nurse education program 4 0
Registered nurse baccalaureate program 30 6
Registered nurse qualifying courses 10 0
Total 88 20
Education
is the
foundation of
safe and ethical
nursing practice.
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Standards of Practice and Regulatory Practice Support BCCNP is responsible for setting the standards, limits and conditions for nursing practice to protect the public
within the current realities of the health care system. In undertaking this work, BCCNP Policy collaborates with the
BCCNP Board, the Professional Practice and Standards Committee, government, other health regulators, employ-
ers, academic institutions, registrants and other stakeholders. Practice Consultation and Regulatory Learning are
responsible for translating new and existing regulatory requirements to registrants, students, employers and other
stakeholders so they can understand and apply them in their practice.
Policy
In 2018, following the amalgamation of the three legacy nursing colleges, existing policy work was reviewed with the
goal of harmonizing standards where appropriate while respecting individual designations. The harmonization of
four practice standards—Privacy and Confidentiality, Duty to Provide Care, Duty to Report and Documentation—is
expected to be complete by mid-2019.
Collaboration with external stakeholders on a number of provincial-level policy initiatives including opioid agonist
therapy, scope of practice optimization and medical assistance in dying also took place throughout 2018.
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Practice Support and Regulatory Learning
Practice Support assists registrants and other stakeholders to understand and apply the standards of practice and
other regulatory requirements. Regulatory Learning at BCCNP develops resources including web content, conceptual
graphics and presentations.
During a practice support consultation, nurses with expertise in nursing regulation support application of BCCNP’s
standards, limits and conditions in the health care environment. In 2018, Practice Support provided more than 2,600
consultations.
Top 3 consultation subjects by designationRank LPN NP RN RPN
1 Scope of practice Scope of practice Professional standards Scope of practice
2 Self-employed nurse Prescribing Scope of practice Medication administration
3 Medication administration Duty to provide care Medication administration Professional standards
In 2018,
Practice Support
provided more
than 2,600
consultations.
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Quality AssuranceBCCNP’s Quality Assurance (QA) program is designed to promote high practice standards and ensure that the
public receives competent and ethical nursing care. Nurses undertake activities and meet requirements—which
can include self-assessment, peer review, jurisprudence and minimum practice hours—that ensure they continue to
meet the professional expectations outlined in the BCCNP standards of practice.
When BCCNP was established in September 2018, the three distinct quality assurance or continuing competence
programs of the former colleges continued. Work to harmonize requirements in the QA program for all designations
has begun, with full implementation expected by 2021.
Licensed practical nurses
2018 jurisprudence exam cohort participation as of Dec. 31, 2018
Jurisprudence education helps licensed practical nurses to understand
the legislation, regulation, bylaws and standards relevant to their practice.
The jurisprudence exam provides evidence that LPNs can apply that
knowledge. Registrants selected for jurisprudence are required to suc-
cessfully complete the exam with a score of at least 70%.
Of the 5,079 LPNs selected for jurisprudence in 2018, over 95%
successfully completed the requirement.
Please note: The jurisprudence requirement will be discontinued in April
2019 due to QA harmonization efforts. Deferred
Outstanding QA Requirements
Completed
4,840
239
41
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Registered nurses and nurse practitioners
Multisource feedback (MSF) is a formal feedback process based on the BCCNP professional standards. Selected
registrants complete a self-assessment, and then invite colleagues to complete a corresponding assessment of
their practice. Registrants complete MSF every five years—or as determined by the QA Committee—as part of their
ongoing quality assurance requirements. This is in addition to the annual personal practice review declaration that
all RNs and NPs make as part of the renewal process.
Of the 7,824 registrants selected to participate in the
2018 MSF cohort 72%, completed their MSF by the May
deadline. An additional 13% of the cohort met the QA
requirement through alternate activities as directed by
the QA Committee. Any registrants who deferred or had
an outstanding QA requirement were brought forward
into the 2019 cohort.
30,772COLLEAGUES PROVIDED FEEDBACK
NP onsite peer review
Nurse practitioners undergo an onsite peer review within the first two years of practice or as determined by the QA
Committee. A peer assessor reviews the NP’s recent client documentation against indicators based on NP scope
of practice and entry level competencies, and identifies professional development opportunities and strategies for
improvement. In some cases, the Quality Assurance Committee will also make recommendations to further support
the NP’s professional development.
2018 MSF Cohort participation as of Dec. 31, 2018
54 NP ONSITE REVIEWS
COMPLETED IN 2018
5,634
1,006
604
437
143
Outstanding QA requirement for 2019
Left practice/did not renew
Deferred participation
Met QA requirements as requested by QA committee
Completed MSF
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Registered psychiatric nurses
Previously, RPNs were expected to complete and submit an Annual Continuing Competence Review form to their
former college between Sept. 1 and Oct. 31. This requirement was discontinued in 2018 as part of harmonization
efforts.
In fall 2018, BCCNP notified RPNs that every practising and provisional RPN registrant will now be required to
complete a number of quality assurance activities throughout the year and make an annual personal practice review
declaration as a condition of renewing their registration. Registrants need to:
• Complete a confidential self-assessment of their practice using applicable BCCNP standards of practice;
• Seek and receive peer feedback (if they were engaged in practice during the previous year);
• Develop and implement a learning plan; and
• Evaluate the impact of their learning plan on their practice.
Controlled drugs and substances prescription program
Nurse practitioners who meet the BCCNP prescribing standards, limits and conditions can prescribe, compound,
administer and dispense controlled drugs and substances (CDS). Since June 2017, an NP can also take specialized
training through the BC Centre on Substance Use to prescribe opioid agonist treatment, such as methadone. The
Quality Assurance team facilitates NP access to duplicate prescription pads and monitors PharmaNet data to
identify trends and issues. NP prescribing is also reviewed during the registrant’s on-site review year.
In 2018, 219 NPs were authorized to prescribe CDS and 59 NPs were able to prescribe opioid agonist treatment.
219CDS PRESCRIBERS
59 OPIOID AGONIST
TREATMENT PRESCRIBERS
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Fees and ExpensesBCCNP operates on a not-for-profit basis, and collects registration fees from registrants to fund our work. For more
detailed information regarding BCCNP’s finances, we encourage you to review the 2018 BCCNP financial statements.
Practising registration fees (Sept. 4, 2018)
The following fees were in effect from the date BCCNP was established (Sept. 4, 2018) to Dec. 31, 2018 for LPNs, and
until Feb. 28, 2019 for NPs, RNs and RPNs to align with each designation’s existing renewal cycle. Registration fees
paid to the previous nursing colleges were honoured and registration was transferred seamlessly to BCCNP.
Fee breakdown (Sept. 4, 2018)
2018 practising registrant fees LPN NP RN RPN
BCCNP Registration $350 $649.70 $448.95 $448.95
CNPS liability protection (RN and NP only)* n/a* $89.78 $35.70 $0.00**
Association (RN and NP only)*** n/a $110.55 $110.55 n/a
Total fee $350.00 $850.03 $595.20 $448.95
*LPN liability protection fees are included in the BCCNP registration fee. GST is included in the CNPS fee for NPs and RNs.
**CNPS liability protection coverage for RPNs started on Nov. 1, 2018. RPN CNPS fees for the remainder of the 2018-19 registration year were paid for with proceeds from the sale of the CRPNBC building.
***The association fee is collected on behalf of the Association of Registered Nurses of BC under the current fee collection agreement, which expires on Dec. 31, 2019.
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College amalgamation costs
Each of the legacy colleges—CLPNBC, CRNBC, and
CRPNBC—incurred incremental costs to plan and
prepare for amalgamating to a single nurse regulator.
Amalgamation costs represent total amalgamation costs
incurred during the year by the legacy colleges, and
then subsequently by BCCNP. This includes:
• Consultation for the amalgamation
• Amalgamation of certain IT systems
• Revisions to bylaws and related register changes
• Initial regulatory and operational process re-engineering
• Transition steering committee support
• CEO search support
• Branding and initial website development
• Project management and project office space
• Governance and change management supports
• Costs related to developing new employment
contracts and payroll costs due to staff changes
arising directly from the amalgamation
Professional liability/liability insurance
The amount noted for professional liability/liability
insurance includes payment to CNPS on behalf of
RPNs, as well as fees for LPN liability insurance, and
RN/NP insurance management and commercial general
liability insurance. CNPS fees paid by RNs and NPs are
not noted here, as these funds were transferred directly
to CNPS.
Where registrant fees and savings went in 2018 (in 000s)
$8,009
$4,083
$4,020
$3,565$3,565
$2,987
$2,410
$1,551
$535
$481
Policy & Practice
Strategy & Governance (includes Executive Office)
Quality Assurance
Professional liability protection/liability insurance
Education Program Review
Inquiry & Discipline
Registration
Facilities
College amalgamation
Corporate Services
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BCCNP 2018 F I N A N C I A L S T A T E M E N T S
British Columbia College of Nursing ProfessionalsConsolidated Financial StatementsFor the year ended December 31, 2018
British Columbia College of Nursing ProfessionalsConsolidated Financial StatementsFor the year ended December 31, 2018
Contents
Independent Auditor's Report 2
Consolidated Financial Statements
Statement of Financial Position 4
Statement of Operations 5
Statement of Changes in Net Assets 6
Statement of Cash Flows 7
Notes to Financial Statements 9 - 20
Independent Auditor's Report
To the Registrants of the British Columbia College of Nursing Professionals
Opinion
We have audited the consolidated financial statements of the British Columbia College ofNursing Professionals (the “College”) which comprise the consolidated Statement of FinancialPosition as at December 31, 2018 and the consolidated Statements of Operations, Changes in NetAssets, and Cash Flows for the year then ended, and notes to the consolidated financialstatements, including a summary of significant accounting policies.
In our opinion, the College’s consolidated financial statements present fairly, in all materialrespects, the consolidated financial position of the College as at December 31, 2018 and itsresults of operations, changes in net assets and cash flows for the year then ended in accordancewith Canadian accounting standards for not-for-profit organizations.
Basis for Opinion
We conducted our audit in accordance with Canadian generally-accepted auditing standards. Ourresponsibilities under those standards are further described in the Auditor's Responsibilities forthe Audit of the Financial Statements section of this report. We are independent of the Collegein accordance with the ethical requirements that are relevant to this audit of the consolidatedfinancial statements in Canada and we have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises theinformation included in the Annual Report, but does not include the consolidated financialstatements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information andwe do not express any for of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is toread the other information and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If, based on the work we have performed, weconclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the ConsolidatedFinancial Statements
Management is responsible for the preparation and fair presentation of the consolidatedfinancial statements in accordance with Canadian accounting standards for not-for-profitorganizations, and for such internal control as management determines is necessary to enablethe preparation of financial statements that are free from material misstatement whether dueto fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theCollege’s ability to continue as a going concern, disclosing, as applicable, matters related togoing concern and using the going concern basis of accounting unless management either intendsto liquidate the College, or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the College’s financial reportingprocess.
2
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financialstatements as a whole are free from material misstatement whether due to fraud or error, andto issue an auditor's report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with Canadiangenerally-accepted auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users takenon the basis of these consolidated financial statements. As part of an audit in accordance withCanadian generally-accepted auditing standards we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financialstatements whether due to fraud or error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. But not for the purpose ofexpressing an opinion on the effectiveness of the College’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the College’sability to continue as a going concern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor's report to the related disclosures in theconsolidated financial statements or, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the College to cease tocontinue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financialstatements, including the disclosures, and whether the consolidated financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
Other Matter
We draw attention to Note 2 to the consolidated financial statements in which management ofthe British Columbia College of Nursing Professionals describes and explains that combinedcomparative financial information is presented at December 31, 2017 and for the year thenended. This comparative financial information is presented by management in order to providecontext to readers in understanding the amalgamation transaction which occurred on September4, 2018 to combine the assets and obligation of the College of Registered Nurses of BritishColumbia, the College of Licensed Practical Nurses of B.C., and the College of RegisteredPsychiatric Nurses of B.C. We were not engaged to report on the restated comparativeinformation, and as such, it is unaudited.
Chartered Professional Accountants
Vancouver, British ColumbiaApril 25, 2019
3
British Columbia College of Nursing Professionals Consolidated Statement of Financial Position
December 31 2018 2017
(Note 2)Assets
Current Cash and cash equivalents (Note 3) $ 7,837,847 $ 14,265,260Short-term investments (Note 4) 457,666 358,869Accounts receivable (Note 5) 251,747 1,631,984Government grant receivable (Note 6) - 115,813Leasehold inducement receivable (Note 7) 3,100,797 -Prepaid expenses 921,434 984,030
12,569,491 17,355,956Investments (Note 4) 10,585,305 13,486,186Tangible capital assets (Note 8) 11,282,830 648,052Intangible capital assets (Note 9) 1,033,065 1,414,402
$ 35,470,691 $ 32,904,596
Liabilities and Net Assets
Liabilities
CurrentAccounts payable and accrued liabilities $ 2,659,656 $ 1,583,250Accrued employment benefits 705,867 420,144Deferred revenue and deposits 13,436,526 11,375,775Deferred government grant (Note 6) 619,090 -Capital leases payable current portion (Note 10) 38,268 28,335
17,459,407 13,407,504
Capital leases payable (Note 10) 161,670 -
Deferred lease inducements (Note 7) 3,352,374 113,640
3,514,044 113,640
20,973,451 13,521,144
Net AssetsEquity in tangible and intangible capital assets 8,763,583 1,920,479Unrestricted 5,773,657 17,462,973
14,497,240 19,383,452
$ 35,470,691 $ 32,904,596
Contingent liability (Note 16)Commitments (Note 19)
The accompanying notes are an integral part of these financial statements.4
British Columbia College of Nursing ProfessionalsConsolidated Statement of Operations
December 31 2018 2017
(Note 2)
RevenueRegistration $ 23,868,001 $ 19,699,794Credentials processing 1,105,351 1,177,520Examinations 544,206 436,871Investment income (Note 11) 163,356 874,445Sundry 65,132 54,748
25,746,046 22,243,378
ExpensesAmortization of tangible and intangible capital assets 1,311,872 998,915Communications and people 2,026,777 1,855,414Capital lease interest 1,031 648Executive office 1,620,839 1,672,990Operations 8,233,675 7,010,674Regulatory compliance 8,065,765 7,137,674Regulatory policy 4,539,217 4,454,156Strategy and governance 789,133 822,167
26,588,309 23,952,638
Deficiency of revenue over expenses before other items (842,263) (1,709,260)
Other revenues (expenses)Amalgamation costs (Note 12) (4,083,138) (1,120,429)Gain on disposal of tangible capital asset (Note 8) 574,005 10,067,529Registrant insurance and professional liability protection (534,816) (498,938)Revenue from other sources (Note 13) - 224,960
Total other revenues (expenses) (4,043,949) 8,673,122
Excess (deficiency) of revenue over expenses for the year $ (4,886,212) $ 6,964,462
The accompanying notes are an integral part of these financial statements.5
British Columbia College of Nursing ProfessionalsConsolidated Statement of Changes in Net Assets
Equity in Intangibleand Tangible
For the year ended December 31 Unrestricted Capital Assets 2018 2017
(Note 2)
Balance, beginning of year $ 17,462,973 $ 1,920,479 $19,383,452 $ 12,418,520Excess (deficiency) of revenues over expense (4,832,181) (54,031) (4,886,212) 6,964,462Proceeds on disposal of tangible capital assets 1,742,218 (1,742,218) - -Purchase of tangible capital assets (11,505,601) 11,505,601 - -New capital leases 212,604 (212,604) - -Capital lease principle repayments (19,655) 19,655 - -Additions of intangible capital assets (279,841) 279,841 - -New lease inducements 2,953,140 (2,953,140) - -
Balance, end of year $ 5,733,657 $ 8,763,583 $14,497,240 $ 19,383,452
The accompanying notes are an integral part of these consolidated financial statements.6
British Columbia College of Nursing Professionals Consolidated Statement of Cash Flows
For the year ended December 31 2018 2017
(Note 2)
Cash flows from operating activities:Excess (deficiency) of revenues over expenses $ (4,886,212) $ 6,964,462Items not affecting cash
Amortization of tangible capital assets 642,627 339,040Amortization of intangible capital assets 669,245 659,875Unrealized investment (gains) losses (Note 11) 879,116 (226,704)Gain on disposal of tangible capital assets (Note 8) (574,005) (10,067,529)Amortization of deferred lease inducements 202,814 (32,372)Amortization of rent-free lease period (Note 7) 400,063 -
(2,666,352) (2,363,228)
Changes in non-cash working capital itemsAccounts receivable, net of lease inducements 317,130 658,082Prepaid expenses (337,467) 89,025Accounts payable and accrued liabilities 1,163,502 (2,964,385)Accrued employment benefits 285,723 (40,222)Deferred revenue, deposits and grants 2,737,358 173,604
$ 1,499,894 4,447,124
Cash flows from investing activitiesDisposal of investments 1,922,968 885,893Purchase of tangible capital assets (11,292,997) (40,355)Purchase of intangible capital assets (279,841) (848,730)Proceeds on disposal of intangible capital assets - 642,168Lease inducements received - 129,717Proceeds on disposal of tangible capital assets (Note 8) 1,742,218 11,118,849
(7,907,652) 11,887,542
Cash flows from financing activityCapital lease principal repayments (19,655) (13,800)
(19,655) (13,800)
Net change in cash and cash equivalents (6,427,413) 7,426,618
Cash and cash equivalents, beginning of year 14,265,260 6,838,642
Cash and cash equivalents, end of year $ 7,837,847 $ 14,265,260
The accompanying notes are an integral part of these financial statements.7
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
1. Nature of Operations and Summary of Significant Accounting Policies
(a) Nature and Purpose of the College
On September 4, 2018, British Columbia College of Nursing Professionals (“BCCNP”)began as a newly amalgamated entity established under the Health Professions Act ofBritish Columbia (“HPA”). BCCNP is designated as the regulatory body for nurses inBritish Columbia under the HPA and is a not-for-profit corporation and, as such, isexempt from income tax. BCCNP’s sole purpose is the protection of the public throughthe regulation of nurses in BC.
Prior to September 4, 2018, nurses in British Columbia were regulated by threeseparate entities: the College of Licensed Practical Nurses of British Columbia("CLPNBC"), the College of Registered Psychiatric Nurses of British Columbia("CRPNBC"), and the College of Registered Nurses of British Columbia ("CRNBC"). As partof the amalgamation the three legacy colleges' assets and obligations were combinedinto the operations of BCCNP.
The BCCNP Board (the “Board”) is the governing body for BCCNP and consists of 16members. The composition and powers of the Board and the duties of its members arestated in the HPA and in the BCCNP Bylaws.
In order to facilitate collaboration and to manage costs, the College has entered intocost sharing arrangements with other health profession regulatory colleges with thesame mandate. These arrangements include a shared office space, shared IT systemand related supports, shared projects and shared services.
(b) Basis of Accounting
The consolidated financial statements have been prepared using Canadian accountingstandards for not-for-profit organizations ("ASNPO").
These consolidated financial statements include the accounts of BCCNP and 0359289BC Ltd. (formerly CRNBC Captive Insurance Corporation), a wholly owned subsidiary.Balances and transactions between BCCNP and 0359289 BC Ltd. have been eliminatedon consolidation.
8
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
1. Nature of Operations and Summary of Significant Accounting Policies - Continued
(c) Revenue Recognition
Revenue is recognized as it is earned in accordance with the following:
- Registration fee revenues are recognized as revenue in the period that correspondsto the registration year to which they relate. Registration fees collected for thefollowing registration year are deferred as appropriate.
- Credentials processing revenue is recognized as revenue in the year the completedapplication is submitted for review.
- Examination fees received are deferred and recognized as revenue in the year theapplicant completes the exam.
- Consulting services are recognized when the service is performed, the revenue canbe reasonably measured and collection can be reasonably assured.
- BCCNP has entered into various cost sharing agreements. Where BCCNP acts as anagent, the revenue earned on the cost sharing transactions is recognized on a netbasis against the costs incurred.
- Sub-lease revenue is recognized over the term of the lease. This revenue is nettedagainst the related expenses within Operations.
- Lease inducements are deferred and amortized over the lease term as a reductionof annual lease expense.
(d) Use of Estimates
The preparation of consolidated financial statements requires management to makeestimates and assumptions that affect the amounts reported in the consolidatedfinancial statements and accompanying notes. Significant estimates included in thesefinancial statements are the estimate of useful lives of tangible capital assets andintangible capital assets for calculating amortization and the allocation of salary andbenefit expense to the appropriate programs. Actual results could differ frommanagement's best estimates as additional information becomes available in thefuture.
(e) Financial Instruments
Financial instruments are recorded at fair value when acquired or issued. All bonds,notes and shares have been designated to be in the fair value category, with gains andlosses reported in operations. All other financial instruments are reported at cost oramortized cost less impairment, if applicable. Financial assets are tested forimpairment when changes in circumstances indicate the asset could be impaired.Transaction costs on the acquisition, sale or issue of financial instruments areexpensed for those items re-measured at fair value at each statement of financialposition date and charged to the financial instrument for those measured at amortizedcost.
9
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
1. Nature of Operations and Summary of Significant Accounting Policies - Continued
(f) Tangible Capital Assets
Purchased tangible capital assets are recorded at cost less accumulated amortization.Amortization is computed on a straight-line basis over the estimated useful life of theassets as follows:
Office furniture and equipment - 15 yearsElectronic equipment - 5-15 yearsComputer equipment - 3 yearsEquipment under capital lease - Over lease termLeasehold improvements - Over lease term
(g) Intangible Capital Assets
Intangible capital assets represents internally customized software and otherpurchased software. Intangible capital assets are recorded at cost less accumulatedamortization. Amortization is computed on a straight-line basis over the 2-5 yearestimated useful life of the assets.
(h) Leases
Leases are classified as capital or operating leases. A lease that transfers substantiallyall of the benefits and risks incidental to the ownership of property is classified as acapital lease. At the inception of a capital lease, an asset and an obligation arerecorded at an amount equal to the lesser of the present value of the minimum leasepayments and the property's fair value at the beginning of the lease. Assets recordedunder capital leases are amortized on a basis that is similar to other assets. All otherleases are accounted for as operating leases; wherein, rental payments are expensedas incurred or where lease obligations exist, payments are expensed on a straight-linebasis over the length of the operating lease term, unless another systematic basis ismore representative.
(i) Allocation of Salaries and Benefits
Salaries and benefits are allocated proportionately on the basis of time spent by eachemployee on the BCCNP's various program areas.
(j) Cash and Cash Equivalents
Cash and cash equivalents include investments having a maturity date of three monthsor less from the date of purchase.
(k) Employment Benefits
BCCNP accrues all earned but unpaid cash entitlements for severance pay, sick leave,vacation pay and other employment related benefits. Such benefits do not accumulateover the long term.
10
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
2. Unifying the Nursing Profession Regulation
Since 2016, the three nursing colleges across British Columbia, in cooperation with theMinistry of Health of British Columbia, had been working towards the creation of BCCNP, anew nursing body that replaced these existing colleges. The colleges involved in thecreation of BCCNP were:
- College of Registered Psychiatric Nurses of B.C. (“CRPNBC”) - a regulatory body forpsychiatric nurses in BC established under the Health Professions Act (RSBC 1996)with the most recent fiscal yearend of February 28, 2018.
- College of Licensed Practical Nurses of B.C.(“CLPNBC”) – a regulatory body forLicensed Practical Nurses in BC established under the Health Professions Act (RSBC1996) with the most recent fiscal yearend of December 31, 2017.
- College of Registered Nurses of B.C. (“CRNBC”) – a regulatory body for registerednurses, nurse practitioners and licensed graduate nurses in BC established under theHealth Professions Act (RSBC 1996) with the most recent fiscal yearend of February28, 2018.
Legislation to unify the legacy colleges was enacted on September 4, 2018. Under thislegislation, the legacy colleges were amalgamated and continued as BCCNP.
As there is no identified acquirer in the amalgamation of the three legacy colleges, thepooling of interest method has been used to combine the assets, obligations, and operationsof the legacy colleges. Under this method, the financial statements of CRPNBC, CLPNBC,and CRNBC were combined to form the current year figures and comparative figures as ifthe three colleges had been combined from inception.
Although the financial statements for each of the legacy colleges as at their respective yearends were audited, the combined comparative figures are unaudited.
The following table summarizes the assets, liabilities, net assets and operations of each ofthe legacy colleges which were amalgamated on September 4, 2018 and formed BCCNP.
CRPNBC CLPNBC CRNBC
Elimination ofinter-entity
balances
Total as atSeptember 4,
2018
Total assets $ 3,085,793 $ 3,676,714 $ 33,385,446 $ 388,100 $ 40,536,053Total liabilities 1,399,354 2,764,084 20,069,025 388,100 24,620,563Total net assets 1,686,439 912,630 13,316,421 - 15,915,490Excess of expenses
over revenue (671,858) (822,911) (1,962,957) - (3,457,726)
11
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
3. Cash and Cash Equivalents
Cash and cash equivalents are comprised of the following:2018 2017
Cash $ 2,930,478 $ 9,037,855Cash equivalents 4,907,369 5,227,405
$ 7,837,847 $ 14,265,260
Cash is held in bank and investment accounts at a Canadian credit union and at a Canadianinvestment brokerage. Cash equivalents consist of money market funds which areredeemable at any time.
4. Investments2018 2017
Government bonds $ 2,464,140 $ 2,714,577Corporate bonds and notes 1,905,717 1,777,805Equities 6,673,114 9,352,673
11,042,971 13,845,055Less short-term investments 457,666 358,869
Long-term investments $10,585,305 $ 13,486,186
Government bonds consist of provincial and municipal bonds and bear interest ranging from2.20 to 3.70% (2017 - 2.10 to 3.70%) with maturities ranging from June 2019 to September2025. Corporate bonds and notes bear interest ranging from 2.20% to 4.89% (2017 - 2.20% to4.89%) and have maturities ranging from July 2019 to August 2026. Equities consist ofCanadian, U.S. and global publicly traded shares.
5. Accounts Receivable2018 2017
Accounts receivable $ 162,648 $ 1,434,694Government remittances recoverable 89,099 194,728Income taxes recoverable - 2,562
$ 251,747 $ 1,631,984
12
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
6. Contributions from the BC Ministry of Health – Nursing Community Assessment Service
BCCNP received grants from the British Columbia Ministry of Health in April 2017 and March2018 for $1.4 million each. These grants are to support the operations of a NursingCommunity Assessment Service delivered through BCCNP. The net grant revenue recognizedin 2018 was $723,393 (2017 - $1,020,850) and offset the operating losses of this operation.At December 31, 2018, $619,090 (2017 - $115,813 receivable) of the grant revenue has beendeferred to cover future operating expenses.
7. Deferred Lease Inducements
BCCNP entered into lease agreements for two office spaces. As part of these leaseagreements, the landlord provided financial inducements to support investments in tenantimprovements to the office space, as well as providing free-rent periods and staggeredlease increases. At December 31, 2018 BCCNP had $3,100,797 (2017 – nil) in outstandinglease inducements and related GST to be collected from the landlord of its office. In 2018$69,106 (2017 - $32,372) of lease inducements were amortized and offset against therelated lease expenses. At December 31, 2018, $3,352,374 (2017 - $113,640) ofunamortized lease inducements remained to offset against future lease expenses. Theunamortized balance will be amortized to income on a straight-line basis until the end ofMarch 2033.
8. Tangible Capital Assets2018 2017
Accumulated Net Book Net BookCost Amortization Value Value
Land $ - $ - $ - $ 150,300Building - - - 139,532Office furniture 1,670,803 (37,129) 1,633,674 111,194Equipment 1,822,282 (98,513) 1,723,769 22,963Leased equipment 212,604 (12,885) 199,719 16,176Leasehold improvements 7,904,074 (178,406) 7,725,668 207,887
$11,609,763 $ (326,933) $11,282,830 $ 648,052
13
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
8. Tangible Capital Assets (Continued)
On September 14, 2018 the legacy CRPNBC office was sold for proceeds of $855,571,resulting in a gain of $574,005.
On December 22, 2017, the legacy office space of CRNBC was sold and a lease agreementwas entered into at that time. The $400,063 value of the lease was recorded as part of thegain of the building, with a resulting total gain of $10,067,529. The proceeds of the sale ofthe building was $12,005,496, net of closing costs and a GST recovery on reinstatement ofan election to recover GST ITC on the building sale.
The remaining facilities-related assets for the legacy CRPNBC and CRNBC offices weredisposed of. The value of leasehold improvements and assets of the legacy CLPNBC leasedspace were written down to their net realizable value, considering the lease rate for thesub-tenant agreement in-place at December 31, 2018, and included in amortization.
9. Intangible Capital Assets2018 2017
Cost $ 4,955,925 $ 4,828,137Accumulated amortization (3,922,860) (3,413,735)
$ 1,033,065 $ 1,414,402
Intangible capital assets are comprised of an information technology system which wasconfigured and customized for BCCNP's purpose as well as purchased software.
14
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
10. Capital Leases Payable
BCCNP has entered into various lease agreements for office equipment at interests ratesranging from 1.75% to 12.25%
2018 2017
Obligations under capital lease $ 199,938 $ 28,335Less current portion of capital lease payments (38,268) (28,335)
$ 161,670 $ -
BCCNP's total payment obligations are as follows:
Total Payment Principal
2019 $ 41,992 $ 41,8782020 $ 41,992 $ 38,4362021 $ 41,992 $ 38,6252022 $ 41,992 $ 38,8392023 $ 41,992 $ 39,0802024 $ 3,296 $ 3,080
11. Investment Income
2018 2017
Interest and dividend revenue $ 461,463 $ 403,822Realized gain on sale of investments 581,009 243,919Unrealized gain (loss) from changes in fair value (879,116) 226,704
$ 163,356 $ 874,445
15
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
12. Amalgamation Costs
Each of the legacy colleges, CRPNBC, CLPNBC, and CRNBC, incurred certain incrementalcosts in order to plan and prepare for amalgamating. Amalgamation costs recorded on thestatement of operations represent total amalgamation costs incurred during the year by thelegacy colleges, and then subsequently by BCCNP. These costs include spending on theinitial business case and consultation for the amalgamation, the amalgamation of certain ITsystems, revisions to bylaws and related register changes, initial regulatory and operationalprocess reengineering, transition steering committee support, CEO search support,branding and initial website development, project management and project office space,and governance and change management supports. Costs related to developing newemployment contracts and payroll costs due to staff changes arising directly from theamalgamation were also included.
13. Restitution
In 2017, a former employee of the legacy CLPNBC entity pleaded guilty to a single count oftheft over $5,000. As part of the sentencing process, a restitution order was made by theCourt in favour of a legacy college in the amount of $373,747.
Part of the restitution order has been settled through the sale of real estate property andthe receipt of cash, leaving an outstanding amount due from the restitution order ofapproximately $139,000.
The restitution order is for 10 years and BCCNP will continue to seek to recover anyavailable funds.
Due to the uncertainty of collection, the remaining amount has not been accrued in theseconsolidated financial statements. Any further recoveries will be recorded at the time theyare received.
16
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
14. Municipal Pension Plan
The BCCNP and its employees contribute to the Municipal Pension Plan (a jointly trusteedpension plan). The board of trustees, representing the plan members and employers, isresponsible for administering the plan, including investment of assets and administration ofbenefits. The plan is a multi-employer defined benefit pension plan. Basic pension benefitsare based on a formula. As at December 31, 2017, the plan has about 193,000 activemembers and approximately 90,000 retired members. Active members includeapproximately 38,000 contributors from local governments.
Every three years, an actuarial valuation is performed to assess the financial position of theplan and adequacy of plan funding. The actuary determines an appropriate combinedemployer and member contribution rate to fund the plan. The actuary's calculatedcontribution rate is based on the entry-age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for averagefuture entrants to the plan. This rate is then adjusted to the extent there is amortization ofany funding deficit.
The most recent valuation of the Municipal Pension Plan as at December 31, 2015, indicateda $2.2 million funding surplus for basic pension benefits on a going concern basis. The nextvaluation will be as at December 31, 2018, with results available in the fall of 2019.Employers participating in the plan record their pension expense as the amount of employercontributions made during the fiscal year (defined contribution pension plan accounting).This is because the plan records accrued liabilities and accrued assets for the plan inaggregate, resulting in no consistent and reliable basis for allocating the obligation, assetsand cost to individual employers participating in the plan.
The BCCNP paid $1,138,631 (2017 – $985,517) for employer contributions to the plan infiscal 2018.
15. Income Taxes
Income taxes for 0359298 BC Ltd. for its year ended February 28, 2018 was a recovery of nil(2017 - tax recovery of $2,562), net of refundable taxes.
17
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
16. Contingent Liability
In 2014, the BC Nurses' Union initiated a civil claim against CRNBC, 0359298 BC Ltd. andCRNBC's Registrar/CEO, challenging CRNBC's authority to have made a $1,500,000 grant tothe Association of Registered Nurses of British Columbia, using funds derived from theredemption of preferred shares of its wholly owned subsidiary 0359298 BC Ltd. Thesematters are ongoing and their outcome and an estimate of loss, if any, is not determinable.
BCCNP has also received notification of other claims related to various matters arising inthe ordinary course of its business. These matters are at a preliminary stage and theiroutcome and an estimate of loss, if any, is not determinable. BCCNP has no reason toexpect that the ultimate disposition of any of these matters will have a material adverseimpact on its financial position, results of operations or its ability to carry on any of itsbusiness activities.
17. Related Party Transactions
Pursuant to the Health Professions Act, the BCCNP’s Board has the authority to set its ownremuneration for its members' involvement in the BCCNP. The Board (and those of thelegacy colleges) has approved both an honorarium and employer salary replacement optionfor its members. The total payments for honorarium and salary replacement claims forBoard members was $54,834 (2017 - $62,577).
18
British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
18. Financial Instrument Risks
BCCNP's activities result in exposure to a variety of financial risks including risks related tocredit and market, foreign exchange, interest rate and liquidity. The risks that BCCNP areexposed to this year are consistent with those identified by the legacy colleges in prioryears.
(a) Credit Risk and Market Risk
Credit risk is the risk that BCCNP will incur a loss due to the failure by its debtors tomeet their contractual obligations. Financial instruments that potentially subjectBCCNP to significant concentrations of credit risk consist primarily of cash and cashequivalents, investments and accounts receivable. Market risk is the risk that thevalue of an investment will fluctuate as a result of changes in market prices, whetherthose changes are caused by factors specific to the individual investment or factorsaffecting all securities traded in the market. BCCNP limits its exposure to credit riskby placing its cash and cash equivalents and investments with high credit qualitygovernments, financial institutions and corporations in accordance with investmentpolicies adopted by the Board. Risk and volatility of investment returns are mitigatedthrough the diversification of investments in different geographic regions anddifferent investment vehicles. Balances in accounts receivable are generally forshared services with other similar regulatory bodies and are considered to have a lowrisk of collectability.
(b) Foreign Exchange Risk
Foreign exchange risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in foreign exchange rates. BCCNP limitsits exposure to foreign exchange risk through its investment policy, which sets amaximum percentage of equity investments that can be held in foreign currencies.
(c) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in market interest rates. BCCNP’sprimary exposure to interest rate risk is with its investments. BCCNP maintains adiversified investment portfolio to manage its interest rate exposure. The interestrates and terms of cash and cash equivalents and investments are as disclosed inNotes 3 and 4.
(d) Liquidity Risk
Liquidity risk is the risk that BCCNP will not be able to meet its obligations as theyfall due. BCCNP maintains adequate levels of working capital to ensure all itsobligations can be met when they fall due. Investments are also held in securitiesthat can be liquidated within a few days notice.
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British Columbia College of Nursing ProfessionalsNotes to Consolidated Financial Statements
December 31, 2018
19. Commitments
BCCNP entered into two separate five-year agreements with the Canadian Nurses ProtectiveSociety to provide retroactive and ongoing Professional Liability Protection for BCCNP’spracticing registrants (excluding Licensed Practicing Nurses). The agreement covering thelegacy CRNBC registrants is for approximately $2.1 million per year, expiring in 2021. Theagreement covering the legacy CRPNBC registrants is for approximately $142,000 per year,expiring in 2025. The legacy CLPNBC registrants receive insurance coverage on a claims-made basis through a commercial insurer at approximately $76,000 per year.
BCCNP's total obligations under operating leases for occupied premises, exclusive ofproperty taxes and other occupancy charges and exclusive of contractual recoveries fromthe BCCNP's tenants, are as follows:
2019 $ 1,673,9712020 1,710,8852021 1,664,4112022 1,673,5282023 1,710,4422024 and thereafter 17,568,096
$ 26,001,333
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