Corporate

Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2017 14 RELATED PARTY TRANSACTIONS The Corporation subleases its premises from CHSI and pays its proportionate share of the operating costs based on rented space. Any surplus (deficiency) in CHSI will be shared by the members based on their proportionate share of equity (note 4). During the period, CHSI charged rental and operating costs of $3,618,193 (2015 – $2,826,040). These transactions are in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties, and approximates the arm's length equivalent value. Minimum annual rental lease payments are as follows: $ 2018 1,353,000 2019 1,421,000 2020 1,421,000 2021 1,302,000 5,497,000 During the period, the Corporation charged CHSI bookkeeping, human resources and information technology service fees of $80,671 (2015 – $72,000). This amount is measured at the exchange amount (the amount of consideration agreed to by the related parties). 15 FUNDING AND NET ASSETS The MOL's surplus investment policy was adopted by the Corporation with an effective date of September 18, 2013. The policy states that the Corporation's operations are not to result in a deficit position at the end of any government fiscal year. The amount of surplus that is eligible to be retained by the Corporation will be a maximum of 6% of the previous year's audited total actual revenue including government transfer payments. Any amount in excess of the 6% maximum amount may be recovered by MOL in the following year through the reduction of transfer payment funding. Surplus funds retained by the Corporation must be used to support MOL's commitment to enhance health and safety in Ontario workplaces. No surplus funds can be used without written approval from MOL. MOL will notify the Corporation in writing in a timely manner regarding decisions related to proposed retention of surpluses. The use of surplus funds approved to be retained by the Corporation will be tracked by the Corporation and reported to MOL. Any amount not approved to be retained will be recovered by MOL. 16 ECONOMIC DEPENDENCE The Corporation is dependent on MOL for funding a significant portion of the cost of operations. CELEBRATING 100 YEARS OF SAFETY IN ONTARIO | 1917-2017 WSPS.CA/AnnualReport 37

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