BCCNP 2018 Annual Report · (Squamish) and Səl ... Anishinabek Nation BCCNP Board and Committees ... If you would like more information about elections or are interested in serving

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

B R I T I S H C O L U M B I A C O L L E G E O F N U R S I N G P R O F E S S I O N A L S

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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

mailto:[email protected]


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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


Provisional 7 94


Employed student psychiatric nurses

Practising 0 6

Licensed practical nurse


Provisional 244 98


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


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


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.

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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.

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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.

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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)

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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

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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

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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.

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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

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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.

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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.

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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).

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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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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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Documents

BCCNP 2018 Annual Report · (Squamish) and Səl ... Anishinabek Nation BCCNP Board and Committees ... If you would like more information about elections or are interested in serving