Canada Blood Service

Canada Blood Services

F/S analysis

1. Synopsis

Field, service, who are we?

* CBS is an national NFP Charitable org that manages the blood supply in all provinces and territories with the exception of Quebec and operates the country's Unrelated Bone Marrow Donor Registry

* A charitable org responsible for recruiting donors and collecting blood at 40 permanent collection sites and more than 1400 blood donor clinics.

* Recruit blood donors, collect blood and process it into the components and products that are administered to hundreds of thousands of patients every year.

Total assets: $552,053

Total Net assets: $49,254

Total Revenue: $878,052

Net Income: $6,120

2. Auditors Opinion

* Unqualified- "these financial statements present fairly in all material respect, the financial position of the corporation...in accordance with with Canadian GAAP"

* Addressed to The Members

* Dated May 31, 2003 except for note 11 which is as of June 13, 2003

* Y/e was March 31, 2003-last audit field date is 2 months after y/e-timely reporting.

* No change in auditing firm: KPMG is the auditing firm for the current and preceding year audit.

3. Major accounting choices....

* Accounting method chosen: Deferral method of accounting for contributions which include donations and government contributions. Operating contributions are recorded in the period in which they relate.

* The value of donated goods and services is not quantified in the F/S as donors are not paid for the blood or plasma collected in Canada.

* Foreign currency transactions of the corporation are translated using the temporal method

* Employee future benefits: the corporation accrues its obligations under employee benefit plans as the employees render the services necessary to earn pension and other post-employment benefits.

4. Income Statement

* Sources of revenues: 3 sources: a) member contributions blood operations b) member contributions fractionation c)Hema Quebec, fractionated product.

* Revenue over 2 year period for 2 sources of member contributions is stable- with a 9.75% increase

* Revenue over 2 year period for Hema Quebec increased at a rate of 38.6% which implies that the increase is very positive for this division.

* In future, Hema-Quebec will hold their own inventory of fractionated products therefore, future financial statements will no longer include revenues generated by Hema Quebec as they will manage their own fractionated Products Program.

* All other sources of revenue are quite stable and any fluctuations that did arise are not of materiality.

Expenses:

* Hema Quebec fractionated products are billed to Hema Quebec at cost for the volume used. As a result, the increase in the cost of $130769 is offset by a corresponding increase in revenue of $130,769 and has not impact on CBS's excess of revenues over expenses (net income).

* Expenses increased by 10.8% versus revenues increase by 10.9% which demonstrates that there CBS only breaks even with a .01% net income before net insurance income is earned.

* Expenses incurred are stable over the 2 year period.

* Net income is mostly earned through insurance income.