2013 WCB ANNUAL REPORT
22 2013 WCB ANNUAL REPORT
FINANCIALREPORT2013 WCB ANNUAL REPORT 23
Management’s Responsibility for Financial InformationThe consolidated financial statements of the WCB were prepared by management, which is responsible for theintegrity and fairness of the data presented, including significant accounting judgments and estimates. Thisresponsibility includes selecting appropriate accounting principles consistent with International Financial ReportingStandards. Financial information contained elsewhere in this annual report conforms to these financial statements.Management believes the system of internal controls, review procedures and established policies provide reasonableassurance that relevant and reliable financial information is produced and that assets are properly safeguarded.Management also believes that the WCB’s operations are conducted in conformity with the law and with a highstandard of business conduct. The internal auditor performs periodic audits designed to test the adequacy andconsistency of the WCB’s internal controls.The Board of Directors is responsible for overseeing management in the performance of its financial reportingresponsibilities and approved the financial statements and other financial information included in this annual reporton March 17, 2014.The Audit Committee assists the Board of Directors in its responsibilities. This Committee reviews and recommendsapproval of the consolidated financial statements and annual report. Internal and external auditors and actuarieshave unlimited access to the Audit Committee. The Committee reviews the financial statements and the othercontents of the annual report with management and the external auditors, and reports to the Board of Directors priorto their approval for publication.The Chief Actuary of the WCB completed an actuarial valuation of the benefit liabilities included in the financialstatements of the WCB and reported thereon in accordance with accepted actuarial practices. The firm of EcklerLtd. has been appointed as a peer reviewer to the WCB. The Chief Actuary’s opinion on the valuation of the benefitliabilities is provided on page 31. Eckler Ltd.’s actuarial review is provided on page 32.Grant Thornton LLP, independent auditors appointed as a sub-agent to the Provincial Auditor General, has performedan independent audit of the consolidated financial statements of the WCB in accordance with Canadian generallyaccepted auditing standards. Their Auditors’ Report, on page 33, outlines the scope of this independent audit andincludes their opinion expressed on the 2013 consolidated financial statements.Winston MaharajPresident and CEOMarch 17, 201424 2013 WCB ANNUAL REPORTLorena B. Trann, CMA, FCMAChief Financial Officer
2013 Management Discussion and AnalysisAs an integral part of the annual report, the management discussion and analysis provides further insights into theoperations and financial position of the WCB and should be read in conjunction with the consolidated financialstatements and supporting notes.2013 ResultsIn 2013, positive results in investment returns produced an operating surplus of 78 million ( 67 million overbudget). After recording unbudgeted gains on the WCB pension plan, total comprehensive income was 100 million.Investment returns were 13.6 per cent, resulting in 158 million of income ( 94 million over budget). Premiumrevenues of 266 million were 17 million under budget due to lower revenues from self-insured employers.The 2013 cost of claims of 268 million were 12 million over budget as a result of a change in actuarial basis for thebenefit liability.Other comprehensive income of 22 million was experienced, an outcome of recording a gain on the WCBpension plan.The WCB’s accident fund reserve increased from 338 million to 416 million, exceeding the accident fund reservetarget level (calculated at 357 million for 2013). The WCB is fully funded with a funding ratio of 134.0 per centversus target of 130.0 per cent.2013 WCB ANNUAL REPORT 25
RevenueThe WCB’s revenue is derived from two sources: premium revenue and investment income.Premium RevenuePremium revenue is the largest revenue stream for the WCB. Premium revenue was 266 million in 2013 ( 277million in 2012), versus the budget of 283 million. The final average assessment rate per 100 of assessable payrollwas 1.50 (budget, 1.50).Premiums are derived from Class E and self-insured employers: 2013 Class E employers’ premiums were 246 million, up two per cent from 2012 due to increased assessablepayrolls. 2013 self-insured employers’ premiums, which are calculated based on claim costs incurred, were 20 million( 37 million in 2012), decreasing as a result of improved claims experience in 2013.The chart below shows the components of the 2013 premium revenue:Premium Revenues20.12013245.737.320120240.250100Class E Employers26 2013 WCB ANNUAL REPORT150Self-Insured Employers200250300
Investment IncomeIn 2013, the WCB experienced investment income of 158 million from its investment portfolio ( 100 million in2012). Investment income was budgeted at 64 million for 2013.The investment portfolio is comprised of a variety of asset classes as set by policy. At December 31, 2013, the portfoliohad a market value of 1.4 billion ( 1.2 billion at the end of 2012) and an asset mix of 59 per cent equities and 41 percent fixed income (55 per cent equities and 45 per cent fixed income in 2012).The WCB has engaged a number of professional investment managers. Each of these managers has a mandate as wellas a benchmark rate of return to achieve. The gross returns before expenses by manager mandate and a comparison ofthis result to the benchmark returns are displayed in the following chart:2013 Returns by Manager Mandate13.6%11.4%2.4%Total-2.2%-2.6%3.7%4.1%-0.1%% Return iesEurope,Australasia, Emergingand Far East MarketsEquitiesEquitiesBenchmark IndexThe investment portfolio’s gross rate of return was 13.6 per cent in 2013 (benchmark 11.4 per cent) and 9.7 per centin 2012 (benchmark 8.2 per cent). In 2013, the portfolio benefitted from exposure to equity markets (Canadian, U.S.,EAFE and Emerging Markets), and its allocation to real estate.2013 was a year of significant progress in both equity markets and the global economy. Non-Canadian marketsperformed better than Canada with U.S. equities performing the best; returns were enhanced by the depreciation in theCanadian dollar relative to the U.S. dollar.Bond yields in Canada moved up in 2013, with longer duration bonds being most negatively impacted. Corporate bondswere the best performing sector in 2013.Outlook: Interest rates are expected to rise modestly in 2014, but at a slower pace than the initial movement in 2013.Tapering of bond purchases by the U.S. central bank has been largely discounted by the market. Moderate global growthis expected to continue in 2014, with stock market returns outpacing bonds.2013 WCB ANNUAL REPORT 27
Claim Costs IncurredClaim costs incurred are an estimate of the full costs for compensable injuries that occurred in 2013, together withadjustments to prior years’ estimates. The estimates take into account claims that are in pay, reported but as yetunpaid claims, and unreported claims.Claim costs incurred increased 52 million (24 per cent) to 268 million in 2013 with short term and long termdisability costs and rehabilitation services costs impacted by actuarial adjustments.Short Term Long TermDisability DisabilitySurvivorBenefitsHealthcare RehabilitationBenefitsServicesTotal(in millions of dollars)2013 2012(Decrease) increase84.9 66.2 18.7121.4 70.5 50.910.7 11.8 (1.1)62.4 66.0 (3.6)(11.1) 1.5 (12.6)268.3216.0 52.3Benefit LiabilitiesThe benefit liabilities increased 75 million (8 per cent) in 2013 with short and long term disability increasing 84million and rehabilitation services decreasing 13 million due to actuarial adjustments.Short Term Long TermDisability DisabilitySurvivorBenefitsHealthcare RehabilitationBenefitsServicesTotal(in millions of dollars)2013 2012(Decrease) increase28 2013 WCB ANNUAL REPORT159.9 133.7 26.2461.5 403.6 57.9132.8 135.8 (3.0)273.0 266.9 6.1 9.7 1,036.922.5962.5(12.8) 74.4
Operating ExpensesOperating expenses in 2013 were 2 million under budget at 77 million. Operating expenses increased 7 millionfrom 2012 largely due to employee salary costs and benefits.Components of 2013 Operating Expenses15%3%3%Prevention and otherAmortization of capital assets2%Occupancy costsInformation technology service fees2%2%Communications70%Salaries, employeebenefits and trainingAppeal Commission2%1%Office supplies, services and projectsResearch and WorkplaceInnovation Program grantsOperating IncomeThe operating income of 78 million increased the accident fund reserve to 416 million.Other Comprehensive Income and Total Comprehensive IncomeThe other comprehensive income for 2013 was 22 million. This income is the result of an increase in the pensionplan’s prescribed discount rate for accounting purposes (5.00 per cent at December 31, 2013 versus 4.50 per cent atDecember 31 2012). The 2013 gain decreased accumulated other comprehensive loss to 34 million as at December31, 2013 ( 56 million in 2012).The total comprehensive income for the year was 100 million, versus the budget of 11 million.2013 WCB ANNUAL REPORT 29
Balance SheetThe 2013 funding ratio (ratio of total assets to total liabilities) was 134.0 per cent (126.6 per cent in 2012) whichexceeded the target ratio of 130.0 per cent. This ratio is one measure of the financial strength of the WCB, as anyamount over 100 per cent indicates the WCB is fully funded.The accident fund reserve was 416 million ( 338 million in 2012), which exceeded the target balance of 357 millionset by the WCB’s Funding Policy. The 2014 – 2018 Five Year Plan financials incorporate reductions to the averagepremium rate in order to dispose of the excess reserves.Risk managementOn an annual basis, the WCB identifies and assesses key corporate risks, and implements mitigation strategies tomanage these risks, which are embedded in the strategic planning and budgeting cycles.Corporate risks are monitored and updated on a regular basis to reflect changes in the organization’s risk profile. Themost significant risks identified in 2013 are shown in the corporate risk profile below.Low risk1. System integrity2. Stakeholder confidence3. Prevention strategy4. Funding5. Fraud and program abuse6. Organizational agility7. Claim costs8. Workplace injuries and illnesses9. Organizational capacity10. Security and business interruption30 2013 WCB ANNUAL REPORTMedium riskMedium high riskHigh risk
Actuarial Opinionwith respect to Future Benefit Liabilities of the Workers Compensation Board of Manitobabased on an actuarial valuation as at December 31, 2013I have completed an actuarial valuation as at December 31, 2013 of the benefit liabilities for insured and self-insuredemployers under The Workers Compensation Act of Manitoba as amended to the valuation date. The purpose of thisvaluation was to estimate the liabilities of the WCB with respect to injuries that occurred on or before the valuationdate for inclusion in the 2013 financial statements which are prepared in accordance with International FinancialReporting Standards.My estimate of the liabilities as at December 31, 2013 is 1,037.0 million. This includes provisions for claims arisingfrom specific long latent occupational diseases.I reviewed the data and have performed tests to confirm their reasonableness and consistency with that used in theprior valuation.The assumptions used are consistent with those of the prior valuation. The discount rate used is 6.0 per cent. Theinflation assumptions are 3.0 per cent for inflation linked benefits, and 4.0 per cent for wage linked benefits and6.5 per cent for healthcare benefits and are unchanged from the previous valuation. The mortality assumption fordisability and survivor benefits and life insurance benefits is the Manitoba Life Table 2000-02 which is the same aswas used in the prior valuation.The assumptions and methods used in the valuation, as described in my report, are based on the current practices andadministrative procedures of the WCB and on historical claims experience.In my opinion, the data on which the valuation is based are sufficient and reliable for the purpose of the valuation.In my opinion, the assumptions are appropriate for the purpose of the valuation.In my opinion, the methods employed in the valuation are appropriate for the purpose of the valuation.In my opinion, the amount of the benefit liabilities makes appropriate provision for all personal injury compensationobligations and the financial statements fairly present the results of the valuation.This report has been prepared, and my opinions given, in accordance with accepted actuarial practice in Canada.Respectfully submitted,Michael Williams, Fellow, Canadian Institute of ActuariesChief Actuary, WCBFebruary 25, 20142013 WCB ANNUAL REPORT 31
Actuarial Reviewwith respect to the Valuation of the Future Benefit Liabilities of the Workers Compensation Board of Manitobaas at December 31, 2013We have reviewed the actuarial valuation as at December 31, 2013 of the benefit liabilities for insured and self-insuredemployers under The Workers Compensation Act of Manitoba as amended to the valuation date. The valuation wasperformed by the Chief Actuary of the Workers Compensation Board of Manitoba. The purpose of the valuation was toestimate the liabilities of the WCB with respect to injuries that occurred on or before the valuation date for inclusionin the 2013 financial statements.We have performed such tests of the data used, the assumptions made and the calculation models underlying thevaluation as we considered necessary.The valuation determined benefit liabilities as at December 31, 2013 to be 1,037.0 million. This includes provisionsfor claims arising from specific long latent occupational diseases and for the future cost of administering claims. Inour opinion, this amount constitutes an appropriate provision for benefit liabilities as at December 31, 2013.Our review has been conducted, and our opinion given, in accordance with accepted actuarial practice in Canada.Respectfully submitted,Eckler Ltd.32 Richard Border, Fellow, Canadian Institute of ActuariesAndrew Kulyk, Fellow, Canadian Institute of ActuariesFebruary 25, 2014February 25, 20142013 WCB ANNUAL REPORT
Independent Auditors’ ReportTo the Workers Compensation Board of ManitobaWe have audited the accompanying consolidated financial statements of the Workers Compensation Board ofManitoba, which comprise the consolidated statements of financial position as at December 31, 2013, and theconsolidated statements of operations and comprehensive income, consolidated statements of changes in fundedposition and consolidated statements of cash flows for the year then ended, and a summary of significant accountingpolicies and other explanatory information.Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with International Financial Reporting Standards, and for such internal control as managementdetermines is necessary to enable the preparation of consolidated financial statements that are free from materialmisstatement, whether due to fraud or error.Auditor’s responsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit. Weconducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whetherthe consolidated financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation andfair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the consolidated financialstatements.We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis forour audit opinion.OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financialposition of The Workers Compensation Board of Manitoba as at December 31, 2013 and its financial performance andits cash flows for the year then ended in accordance with International Financial Reporting Standards.Grant Thornton LLPChartered AccountantsWinnipeg, CanadaMarch 17, 20142013 WCB ANNUAL REPORT 33
Consolidated Statement of Financial PositionDecember 31(in thousands of dollars)NoteAssetsCashReceivables and otherInvestment portfolioDeferred assessmentsProperty, plant and equipmentIntangible assets345789Liabilities and funded positionPayables and accrualsWorkers' retirement annuity fundEmployee benefitsBenefit liabilities101112132013 8,00033,6631,365,50270,13624,9143,405 8,78437,5351,193,14877,37923,4913,299 1,505,620 1,343,636 13,09124,66649,2241,036,965 12,20421,00065,917962,511Total liabilities1,123,946Accident fund reserveAccumulated other comprehensive lossFunded position Michael D. WerierWendy SolChairperson, Board of DirectorsAudit Committee of the Board of DirectorsThe accompanying notes are an integral part of the consolidated financial statements. 2013 WCB ANNUAL 74282,0041,505,620Authorized for issue on March 17, 2014 on behalf of the Board of Directors,342012 1,343,636
Consolidated Statement of Operationsand Comprehensive IncomeYear Ended December 31(in thousands of dollars)NoteRevenuePremium revenueInvestment income1552013 Total revenue265,781157,4962012 768Total expenses345,243285,789Operating surplus78,03491,34321,636(22,884)ExpensesClaim costs incurredOperating expenses1316Other comprehensive income (loss)Defined benefit plan remeasurements12Total comprehensive income 99,670 68,459The accompanying notes are an integral part of the consolidated financial statements.2013 WCB ANNUAL REPORT 35
Consolidated Statement of Changes in Funded PositionYear Ended December 31(in thousands of dollars)Note20132012Funded positionAccident fund reserveBalance at beginning of yearOperating surplus 338,34778,034 416,381Accumulated other comprehensive incomeBalance at beginning of yearOther comprehensive income (loss) (56,343)21,636338,347 (34,707)Funded position, end of yearThe accompanying notes are an integral part of the consolidated financial statements.36 2013 WCB ANNUAL REPORT 381,674247,00491,343(33,459)(22,884)(56,343) 282,004
Consolidated Statement of Cash FlowsYear Ended December 31(in thousands of dollars)NoteOperating cash flowsPremiums from employersInvestment incomeClaim paymentsPurchases of goods and services2013 13Net operating cash flowsInvesting cash flowsPurchases of investments, net of salesAsset acquisitions5Net investing cash flowsNet decrease in cashCash at beginning of yearCash at end of
30 2013 WCB ANNUAL REPORT Balance Sheet The 2013 funding ratio (ratio of total assets to total liabilities) was 134.0 per cent (126.6 per cent in 2012) which exceeded the target ratio of 130.0 per cent. This ratio is one measure of the financial strength of the WCB, as any amount over 100 per cent indicates the WCB is fully funded.
Page 4 9600 Series Floating Ball Valve PARTS IDENTIFICATION No Parts Name Materials WCB/13Cr WCB/304 WCB/316 CF8 CF8M 1 Body ASTM A216 WCB ASTM A216 WCB ASTM A216 WCB ASTM A351 CF8 ASTM A351 CF8M 2 Packing PTFE PTFE PTFE PTFE PTFE 3 Stem Bearing PTFE PTFE PTFE PTFE PTFE 4 Gland ASTM A182 F6a ASTM A182 F304 ASTM A182 F316 ASTM A182 F304 ASTM A182 F316 5 Gland Flan
The F88 Series Firesafe Ball Valves have successfully passed the API-607 6th Edition test. . ASTM A351 GRADE CF8M ASTM A216 GRADE WCB 2 TH END CAP 2 ASTM A351 GRADE CF8M ASTM A216 GRADE WCB 2 BW/SW END CAP 2 ASTM A351 GRADE CF3M ASTM A216 GRADE WCB
The Manitoba Workplace Injury Statistics Report for 2000-2014 is the thirteenth annual report of this type. This report is an integral component of Manitoba’s joint injury prevention strategy (SAFE Work). This report is developed from the WCB’s injury data for the years 2000-2014. The report is based on injuries about which the WCB was
Series F88 High Performance, Full Port 3-Piece Ball Valve ISO 5211 Direct Mount 1000/1500/2000 psi WOG by size . ASTM A351 GRADE CF8M ASTM A216 GRADE WCB 2TH END CAP ASTM A351 GRADE CF8M ASTM A216 GRADE WCB 2 BW/SW END CAP 2 ASTM A351 GRADE CF3M
Aug 08, 2012 · 2-Piece Flanged Ball Valve Full Port 1/2” to 12” ANSI Class 150/300 A351 Gr. CF8M, A216 Gr. WCB Seats: RTFE (15% CF) Ends: RF Flg 150/300 302F 3-Piece Ball Valve Full Port 1/4” to 3” Up to 1000 PSI CWP A351 Gr. CF8M, A216 Gr. WCB 304F 3-Piece Ball Valve Full Port 1/4” to 4” Up
2 Retainer ASTM A216 WCB 3 Ball ASTM A108 Type 1215 or ASTM A216 WCB Chrome Plated 4 Stem ASTM A108 Type 1215 5 Packing Gland ASTM A108 Type 1215 6 Stem Seals PTFE 7 Seats RPTFE 8 Gland Screws ASTM A193 B7 9 Gland Plate 302 & 304 SS 10 Stem Nut ASTM A194 Grade 8l 11 Lever ASTM A
Nov 15, 2006 · Chiropractic and Physical Therapy – Soft Tissue Guidelines Updated: 04 October 2018 Page 3 of 23 . Intervention . An intervention is an appropriate WCB coded service provided to the injured worker by the treating practitioner during the acute, sub-acute or chronic phase of the injury. This intervention or service can include the following:
Otago: Rebecca Aburn, Anne Sutherland, Gill Adank, Jan Johnstone, Andrea Dawn Southland: Mandy Pagan, Carolyn Fordyce, Janine Graham Hawkes Bay: Wendy Mildon As over 30 members of the New Zealand Wound Care Society were in attendance at the AGM a quorum was achieved. Apologies:
