Corporate

25 | WSPS.CA/AnnualReport Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2021 (4) 4 Investment in CHSI CHSI is a not-for-profit organization, incorporated under the laws of the Province of Ontario on September 8, 2004, whose purpose is to create a focal point for innovation and applied learning in the prevention of workplace injuries and illnesses and to act as a key resource for employers, employees and others seeking expertise and direction on how to make workplaces safer. CHSI is exempt from income taxes under Section 149(1)(I) of the Income Tax Act (Canada). Up to February 28, 2021, the Corporation was a party to a joint venture with one other organization in CHSI. The Corporation had chosen to use the equity basis to account for its proportionate share of the annual operating results of CHSI up to February 28, 2021. On March 1, 2021, the Corporation became the sole party to the agreement and was determined to control CHSI. As a result, the Corporation controls CHSI as its sole member and it has derecognized its equity investment and recorded a writedown of the investment of $24,765 in the statement of changes in net assets (deficiency). The most recent audited financial statements of CHSI are for the period ending February 28, 2021, audited by another firm of accountants, with a report date of April 27, 2021. In addition, the fiscal year January 1 to December 31, 2020 was audited by the same firm of accountants, with a report date of April 16, 2021. The information below reflects the financial results in the audited financial statements as well as the internal financial information for the period from March 1, 2021 to March 31, 2021, as reported by CHSI's management to compile the April 1, 2020 to March 31, 2021 financial information. 2021 $ 2020 $ Assets 2,482,811 4,174,981 Liabilities 2,688,726 842,122 Net assets (205,915) 3,332,859 Operating results (period from April 1 to March 31) Revenue 1,300,400 4,886,076 Expenses (operating) 4,351,971 5,628,493 Shortfall of revenue over expenses (3,051,571) (742,417) Decrease in net assets (3,051,571) (742,417) Cash flows Operating (2,814,165) (88,702) Investing (403,534) (760,806) Financing 1,661,431 - Decrease in cash during the period (1,556,268) (849,508)

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