College of Physical Therapists of AlbertaEvolution, growth, change+ opportunity

AnnualReport2010

2010

College of Physical Therapists of AlbertaAnnual Report 2010

2College of Physical Therapists of Alberta Annual Report 2010

3

Contents

About the College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

President + Registrar’s message . . . . . . . . . . . . . . . . . . 5

Key achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Complaint resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Alberta physiotherapists . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Membership statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Auditors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3

Notes to financial statements . . . . . . . . . . . . . . . . . . . . 1 7

4College of Physical Therapists of Alberta Annual Report 2010

About the College

The College of Physical Therapists (CPTA) regulates physiotherapy practice in Alberta. Through effective regulationand leadership we ensure the physiotherapists we license (i.e., our members) are qualified to practice and have the appropriate training, education and skills to provide competent, ethical and professional physiotherapy care to Albertans.

Our primary mandate is public serviceOur regulatory authority derives from Alberta’s Physical Therapy Profession Act. We accomplish our primary mandate via the following key functions and areas of focus:

Register + license physiotherapists:1. Ensure applicants meet registration, entry-to-practice yand academic requirements.Require annual license renewal. yMake our member register publicly available. y

Regulate + lead Alberta physiotherapists:2. Administer + enforce provincial healthcare legislation. ySet minimum standards to ensure safe, effective care. yCommunicate + enforce practice, professional yand ethical expectations.

Competency + practice enhancement:3. Encourage clinical + professional skill enhancement yand provide support via programs, services, tools, and resources.

Complaint resolution:4. Address concerns about members’ conduct. yHold members accountable when standards are not ymet. Impose corrective action to avoid reoccurrence. Raise member awareness and encourage dialogue yabout situations, often poor or miscommunication, that can lead to complaints.

We also promote and encourage the evolution of physiotherapy regulation to better meet the changing needs of Albertans and the provincial healthcare system.

Leadership, self-governance and accountabilityWe are led by an elected board of directors called a Council, who along with the College Registrar, staff and committees carry out College functions in a manner that acknowledges and respects the privilege of self-governance. Council and the College are committed to excellence. We are accessible, responsive and firmly committed to the practice of competent, quality, ethical physiotherapy for Albertans.

The College is accountable to Albertans and the government and reports yearly to the Minster of Health and Wellness.

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Council and committeemembers 2010

Thank you to the following individuals who volunteer their time, knowledge + expertise to serve Albertans + guide the profession.

CouncilNancy Littke, presidentGreg Cutforth, vice-presidentGrant Irwin, secretary-treasurerErica BowenGrant FedorukGwen Harris Krishna PrasannaNicola SadorraJoey Mo and Matt Scott, student representatives to Council

Government appointed public member position has been vacant since December 2009.

Competence committeeBarbara ByrneHeather ToporowskiElizabeth GoodBerni MartinBarbara NortonJennifer HorneMara ShularErica Bowen, council representative

Registration committeeDavid JonesJackie MorissetteNicole LavoieNicola Sadorra, council representative

Discipline committeeMelissa MerrittMark HallLeanne LorangerDavid MageeJulie MoylanJo-Anne OgleBob SydenhamDiane ZayacMaxine Kolodychuk, public member

As always, CPTA remains committed to ensuring physiotherapists deliver quality care to Albertans. Last year saw regulatorybusiness continue as usual. Unique to 2010 was the addition of member service functions formerly held by the Alberta Physiotherapy Association.

Much of last year’s activities focused on threekey areas:

Continuing our primary public protection role 1. to ensure quality, competent, ethical physiotherapy services for Albertans.

Continuing to prepare for the implementation 2. of the Health Professions Act (HPA).

Operationalising our 2010-2013 strategic plan 3. and building the infrastructure required to deliver outcomes.

This annual report provides highlights of those activities on page 6.

Moving forward As 2010 drew to a close, significant headway had been made in operationalising our strategic plan. Moving forward, we will continue to embrace change, manage our challenges and seize opportunities to serve the public, enhance regulation, lead the profession, and advance innovative, quality physiotherapy services for Albertans.

President + Registrar’sMessage

Nancy Littke, President Dianne Millette, Registrar

6College of Physical Therapists of Alberta Annual Report 2010

Key achievements in 2010

Competent practice + public safety

Responded to 319 member calls for practice advice (70% increase over last year). yCompleted new draft code of ethics. Revisions were based on feedback requested from members yand Provincial Health Ethics Network. The code was then submitted to Alberta Health and Wellness for broad stakeholder consultation.Piloted jurisprudence education module (a new competence assessment tool) to 200 randomly yselected physiotherapists. Module focuses on the rules, regulations and standards applicable to Alberta physiotherapists and will help members understand the rules that impact them and their practice. The module will be mandatory for all members once under HPA. Completed competence portfolio and patient care reflection tool. Developed competence portfolio yaudit strategy. Finalised Physical Therapists Profession Regulation in preparation for HPA. Continued HPA yrelated operational planning in registration, conduct, governance, and continuing competence.

Continued education+ professional development

Developed professional development program to help physiotherapists increase + enhance clinical yand professional skills/knowledge. Launched webinar series (with University of Alberta’s Department of Physical Therapy) that yreceived overwhelmingly positive member reviews. Added events section on website to communicate + promote member professional development yopportunities.

Evidence-informed practice

Provided one stop member access to evidence-based databases and help resources. yLaunched ‘Focus on Research’ section in member newsletter to profile current scientific evidence yand support, promote + encourage evidence-informed practice.

Stakeholder communication + awareness

Launched new website with streamlined navigation and expanded public interest content. yConducted physician and consumer market research to better understand their awareness, yknowledge, attitude, and use of physiotherapists/physiotherapy services.Developed consumer advertising campaign to raise awareness + understanding of physiotherapy y(conditions treated and physiotherapy’s many health benefits). Developed and launched new brand to reflect expanded role and add transparency. yConducted physiotherapy photo shoot to capture diverse range of practice areas. ySeized several opportunities to educate Albertans on physiotherapy’s many health benefits + yconditions treated including:

Women’s health article on physiotherapy’s efficacy for urinary incontinence—a common �women’s health issue (in collaboration with Edmonton physiotherapist Dianna MacDonald). Information and tips on winter injury prevention + tips on ‘playing safe this winter’ (in �collaboration with Canmore physiotherapist Lynne Richardson).Communicated physiotherapists key role in clinical management of obese patients to doctors �via Alberta Medical Association’s Doctors’ Digest letter to editor. Letter communicated that physiotherapists are trained to design safe, appropriate and sustainable physical activity programs that minimize patient’s risk of joint stress/strain and over-use injuries.Ran ad to celebrate national physiotherapy month. Ad highlighted the many conditions �physiotherapists are trained to treat.Coordinated several media requests to profile physiotherapy and its benefits. �

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Registration + licensing

Answered hundreds of licensing inquiries and processed over 2,000 new and renewed license yapplications.Applied for funding from Health Canada to develop and implement a bridging program for yinternationally-educated physiotherapists in Alberta. Participated in development of National Platform Document on Labour Mobility with the Canadian yAlliance of Physiotherapy Regulators (the Alliance).

Collaboration + partnerships

Sponsored Alberta Finding Balance program (important provincial public health/service initiative) yand participated in program launch + ongoing activities. Also secured a ‘talk to your physiotherapist’ message on 20,000 campaign flyers distributed across Alberta via pharmacies, libraries, flu clinics, and seniors lodges. Helped Finding Balance campaign team coordinate media requests. Planned inaugural Alberta Rehab 2011 conference in partnership with Alberta College of Speech- yLanguage Pathologists and Audiologists, Society of Occupational Therapists, Therapy Association of Alberta, and Faculty of Rehabilitation Medicine. Developed, in partnership with the Alliance, a web-based credential assessment tool to expedite ycredential assessments of internationally-educated physiotherapists. Participated in development and consultation of Alberta Health Services’ competency profile for ytherapist assistants.Participated in Alberta Health Act consultation via public forum + Alberta Federation of Regulated yHealth Professionals.

Physiotherapy access + funding for Albertans

Expanded ‘find a physiotherapist’ service on website to include search terms + health service cat- yegories used by consumers. Submitted written brief to Minister’s Advisory Committee on Health. Used physiotherapy yexperience and examples to illustrate challenges and opportunities, commented on current legislation, and provided suggestions to better support patient and family-centred care and improve health system performance.Developed new position statements (self-referral, access and funding) to communicate our yposition and vision on these important public health advocacy issues.Reached out to/met with Alberta’s Primary Care Initiative to learn more about this environment. yWCB advisory committee provided comment on WCB contract renewal. yProvided input to Superintendent of Insurance on diagnostic + treatment protocol review. y

Infrastructure + governance

Welcomed new professional practice director to support the College’s role expansion and begin yimplementing Council’s professional practice, member services, physiotherapy access and fund-ing strategic direction and programming.

8College of Physical Therapists of Alberta Annual Report 2010

The College is committed to high standards of professional conduct and competency. One way we protect Albertans and ensure safe, quality and competent physiotherapy care is by receiving, investigating and administering concerns about our members’ conduct. While our members are qualified and competent practitioners who practice within our standards and guidelines, occasionally complaints arise, often through misunderstanding and/or miscommunication between provider and patient. The complaints function is an important part of self-regulation. It enables patients to voice their feedback or concerns and allows the College and members to learn from that feedback and enhance the provision/delivery of physiotherapy services.

Our complaints process

We take all concerns very seriously and investigate all formal (i.e., written) complaints in an objective and confidential manner. Our process is designed to ensure fairness to both the person making the allegation (the complainant) and the practitioner in question. During the investigation phase, we gather all information possible about the situation (e.g., interview the complainant, physiotherapist in question and others, and review patient charts, billing records and other relevant documentation). If at any time during the investigation, the physiotherapist in question is deemed a danger to the public, the registrar will be informed and actions taken to ensure the public is protected.

After the investigation, a decision is made to refer the complaint to a discipline hearing or dismiss it (often because of lack of or insufficient evidence). If dismissed, the complainant has 30 days to appeal.

Complaints - October 1, 2009 - September 30, 2010

Complaint resolutionProtecting public interest and trust

Nature of formal complaint 2010 2009

Professional misconduct (e.g., billing + communication related)

3 3

Unskilled practice 4 3

Total complaints 7 6

Complaint outcomes 2010

Under investigation 4

Dismissed 6

Referred to hearing 2

Under appeal 1

Total complaints 13*

College of Physical Therapists of Alberta Annual Report 2010

* Total reflects complaints carried over from 2008 and 2009.

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Protecting public interest and trustAlberta physiotherapistsGet Albertans back to life, work + play

Physiotherapists help Albertans with physical movement and function issues caused by pain, injury, illness, aging, or health condition. As unequalled experts in physical mobility and function, physiotherapists know how the body moves and what can stop it moving freely, properly and pain free. They help patients take control of their situation and get back to life.

Treat more than symptoms Physiotherapists help patients understand what is causing their pain and movement issue and then develop a customised treatment plan. Physiotherapists work with their patients to address underlying causes and not just physical symptoms. The end goal is to maximize function and mobility regardless of age, lifestyle, health limitations, and/or work environment. Physiotherapists also teach patients how to avoid future injury, look after their body and stay healthy. With physiotherapy, patients regain optimum movement and function to help them return to life, work and play for the long term.

Conditions treated Using therapeutic exercise and other techniques, physiotherapists help patients who may otherwise use surgery, prescription drugs or other devices to treat their condition. Physiotherapists help patients heal from and/or manage various health conditions including:

Back pain + injury, falls + vertigo yPregnancy related muscle + joint issues yTendonitis + carpal tunnel yWhiplash + car accident injury yUrinary incontinence yPhysical results of COPD + stroke yChronic pain management, arthritis + osteoporosis yPediatric developmental delays, cerebral palsy + spina bifida y

Appropriate, effective + professional careLicensed Alberta physiotherapists are qualified to provide quality, competent, ethical care and are expected to practice within practice, professional and ethical standards. Physiotherapists practice in various settings including hospitals, private clinics, assisted living centres, long-term care facilities, schools, and workplaces. The College provides an online ‘find a physiotherapist’ service on its website to help Albertans find a licensed physiotherapist near them or one who works with specific conditions. This also enables physiotherapist employers to verify the license of physiotherapist employees. This information is also available from the College over the phone if and when required.

No referral requiredA doctor referral is not necessary to see a physiotherapist. If personal or employer health insurance is being used, some insurers may still require a doctor’s referral before reimbursing costs.

10College of Physical Therapists of Alberta Annual Report 2010

0

500

1000

1500

2000

2500A

B

2007200820092010

Members by gender

Male

Female

0

500

1000

1500

2000

2500A

B

2007200820092010

Number of members

Non-practicing

Practicing

Membership statisticsTrends in supply + practice areas

By status 2010 2009 2008

Employed in Alberta as a physiotherapist 2158 2127 2067

Employed in other than physiotherapy 13 12 13

Employed in physiotherapy outside Alberta 96 91 102

Employed in physiotherapy, on leave 21 20 28

Unemployed 52 40 54

Unknown* 50 38 34

Total 2390 2328 2298

By primary role 2010 2009 2008

Administration 98 88 109

Client service management 3 6 0

Consulting 37 54 86

Non-practicing 150 143 181

Patient care 1973 1865 1763

Research 14 14 13

Teaching 16 19 16

Unknown 99 139 130

Total 2390 2328 2298

New members 2010

From other Canadian jurisdiction 24

British Columbia y 4

Manitoba y 2

Nova Scotia y 3

Ontario y 12

Quebec y 1

Saskatchewan y 2

Met education + exam requirements 113

Province of education:

Alberta y 63

British Columbia y 1

Manitoba y 6

Nova Scotia y 5

Ontario y 9

Saskatchewan y 2

Country of education:

Australia y 6

Czech Republic y 1

Egypt y 1

India y 8

Israel y 1

Japan y 1

Jordan y 1

New Zealand y 1

Philippines y 4

United Kingdom y 2

United States y 1

Total new members in 2010 137

150

2240

143 181 196

2185 2117 2070

* Unknown denotes data not provided.

528

1862

518 513 498

1810 1785 1768

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Membership statisticsTrends in supply + practice areas

By practice area 2010 2009 2008

Administration 94 88 109

Amputations 7 6 6

Arthritis 1 0 NC

Burns/wound management 14 13 10

Cardiology 23 11 12

Chronic pain/pain management 5 0 NC

Client service management 3 6 5

Consultant 37 54 79

Continuing education 2 1 0

Critical care 11 12 9

Ergonomics 2 2 1

General practice 813 865 833

Gynecology/urology 2 0 NC

Hands 4 1 NC

Health promotion + wellness 13 11 8

Joint replacement rehabilitation 5 0 NC

Neurology 165 149 139

Non-practicing 150 143 181

Oncology 8 9 4

Orthotics assessment/ prescription

1 0 NC

Orthopaedics 750 674 629

Other 40 24 23

Palliative care 6 6 7

Perineal 15 13 12

Plastics 17 17 18

Post-secondary teaching 12 14 14

Research 14 14 13

Respirology 12 12 16

Return to work rehabilitation 16 11 11

Rheumatology 8 6 8

Sports medicine 26 23 18

Unknown 99 139 130

Vestibular rehabilitation 6 4 3

Women’s health 9 0 NC

Total 2390 2328 2298

By health zone 2010 2009

Zone 1 (South) 119 122

Zone 2 (Calgary) 851 803

Zone 3 (Central) 198 193

Zone 4 (Edmonton) 789 743

Zone 5 (North) 127 123

Non-practicing 150 143

Practicing outside Alberta 23 47

Unknown 133 154

Total 2390 2328

By practice setting 2010 2009 2008

Assisted living residence 2 3 5

Association/government 55 70 120

Community health centre 92 90 70

General hospital 602 580 557

Home care 95 81 78

Industry/manufacturing/commercial 0 1 1

Mental health facility 13 12 9

Non-practicing 150 143 181

Other 46 34 50

Post-secondary education/institution 32 31 28

Private practice 989 939 868

Rehabilitation hospital/facility 80 80 70

Residential care facility 113 108 101

School or school board 32 31 30

Unknown 89 125 130

Total 2390 2328 2298

By patient age 2010 2009 2008

Adults 475 439 427

All ages 1180 1140 1064

No direct patient care 219 228 220

Non-practicing 150 143 181

Paediatrics 170 146 138

Seniors 155 144 138

Unknown 41 88 130

Total 2390 2328 2298

* NC denotes data not collected.

12College of Physical Therapists of Alberta Annual Report 2010

Auditors’ Report

We have audited the statement of financial position of the College of Physical Therapists of Alberta as at September 30, 2010 and the statements of operations, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the College’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the College as at September 30, 2010 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Kouri-Berezan-HeinrichsChartered AccountantsEdmonton, AlbertaNovember 5, 2010

To the Members of College of Physical Therapists of Alberta

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2010 2009

CURRENT Cash $ 139,941 $ 92,332 Short-term investment - 470,769 Accounts receivable 720 821 Prepaid expenses 16,034 11,670

156,695 575,592

Restricted investments (note 4) 981,543 931,085 Unrestricted investments (note 4) 577,548 - Equipment and leasehold improvements (note 5) 175,306 110,561

$ 1,891,092 $ 1,617,238

CURRENT Accounts payable and accrued liabilities $ 105,565 $ 87,691 Deferred revenue 310,656 303,058 Deferred contribution related to government grant (note 6) 44,851 -

Net assets internally restricted for membership reserve (note 9) 928,253 870,951 Cumulative net unrealized gains on available for sale investments 64,643 60,134 Net assets invested in equipment and leasehold improvements 175,306 110,561 Unrestricted net assets 261,818 184,843

1,430,020 1,226,489

$ 1,891,092 $ 1,617,238

Approved on behalf of Council:

Nancy LittkeCouncil president

Grant IrwinSecretary-treasurer

Statement of Financial PositionYear ended September 30, 2010

ASSETS

NET ASSETS

461,072 390,749

LIABILITIES

Commitments (note 10)

14College of Physical Therapists of Alberta Annual Report 2010

MEMBERSHIP FEES (schedule 1) $ 1,238,097 $ 1,175,147

MEMBERS’ SERvICES ExpENSES

Annual general meeting 812 480 Bank and credit card fees 36,608 35,547 Committees 1,204 1,790 Conduct 62,094 86,239 Dues and membership fees 50,670 33,693 Legal fees 24,275 23,227 Professional fees 22,188 14,070 Records management 5,371 7,095 Special projects 38,500 54,318 Technology 77,660 74,529

319,382 330,988

INCOME BEFORE OPERATING EXPENSES 918,715 844,159

Amortization 51,666 37,968 Communications 121,274 53,168 Donations 24,480 21,700 Office supplies 21,565 14,862 Office support 14,630 7,438 Printing 24,544 20,879 Rent 99,168 66,480 Representation and travel 49,745 46,383 Salaries and employee benefits 666,182 544,943 Salary replacement and honorariums 9,112 14,358

2010 2009

Statement of OperationsYear ended September 30, 2010

1,082,366 828,179

INCOME (LOSS) FROM OPERATIONS (163,651) 15,980

(7,754) (34,230)

OTHER INCOME (ExpENSES)

OpERATING ExpENSES

ExCESS OF REvENUE OvER (UNDER) ExpENSES $ (171,405) $ (18,250)

Government grant (note 6) 6,809 - Investment income 56,438 40,479 Investment fees (18,170) (9,812)Loss on disposal of equipment and leasehold improvements (77,001) -Gain (loss) on disposal of investments 36,113 (64,897)Moving costs (11,943) -

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Net assets internally

restricted for membership

reserve

Net assets invested in

equipment + leasehold

improvements

Unrestricted net assets

Accumulated unrealized

(gains losses)

2010 Total 2009 Total

NET ASSETS AT THE BEGINNING OF THE yEAR $ 870,951 $ 110,561

$ 184,843

$ 60,134 $ 1,226,489 $ 1,163,959

Excess of revenue over (under) expenses

57,302 (128,667) (100,040) - (171,405) (18,250)

Transfer of net assets from Alberta Physiotherapy Association (note 8)

- - 370,427 - 370,427 -

Investments in equipment and leasehold improvements

- 193,412 (193,412) - - -

928,253 175,306 261,818 60,134 1,425,511 1,145,709

Accumulated gains/losses included directly in statement of changes in net assets:

Net investment (gains) losses realized during the year and reported in statement of operations

- - - (36,113) (36,113) 20,835

Unrealized gains (losses) on available for sale financial assets arising during the year - - - 40,622 40,622 59,945

- - - 4,509 4,509 80,780 NET ASSETS AT THE END OF THE yEAR

$ 928,253 $ 175,306 $ 261,818 $ 64,643 $ 1,430,020 $ 1,226,489

Statement of Changes in Net AssetsYear ended September 30, 2010

16College of Physical Therapists of Alberta Annual Report 2010

OpERATING ACTIvITIES

Excess of revenue over (under) expenses $ (171,405) $ (18,250)

Items not affecting cash:

Amortization 51,666 37,968 Loss on disposal of equipment and leasehold improvements 77,001 - Loss (gain) on disposal of investments (36,113) 64,897

(78,851) 84,615

Changes in non-cash working capital:

Accounts receivable 101 2,273 Prepaid expenses (4,364) (4,963) Accounts payable and accrued liabilities 17,874 (10,422) Deferred revenue 7,598 41,492 Deferred contribution related to government grant 44,851 -

66,060 28,380

Cash flow from (used by) operating activities (12,791) 112,995

INvESTING ACTIvITIES

Purchase of equipment (213,912) (84,062) Proceeds on disposal of equipment 20,500 - Proceeds on sale of short term investments 471,343 799,959 Purchase of short term investments (573) (763,055) Net assets transferred from Alberta Physiotherapy Association (note 8) 370,427 - Proceeds on sale of investments 1,875,389 1,479,728 Purchase of investments (2,401,921) (1,501,980)

Cash flow from (used by) investing activities 121,253 (69,410)

INCREASE IN CASH FLOW 108,462 43,585 Cash - beginning of year 95,245 51,660

CASH - END OF yEAR $ 203,707 $ 95,245

CASH CONSISTS OF:

Cash $ 139,941 $ 92,332 Cash from investments (note 4) 63,766 2,913

$ 203,707 $ 95,245

Statement of Cash FlowsYear ended September 30, 2010

2010 2009

17

Notes to Financial Statements

1. PuRPOSE Of ORgANIzATIONThe College of Physical Therapists of Alberta was established pursuant to the Physical Therapy Profession Act of Alberta, A/R 298/95 and operates to regulate physical therapists in the province who are licensed under the Physical Therapy Profession Act. Operations are administered by a registrar and office staff and are governed by an elected council. Several standing, biannually appointed and ad-hoc committees carry out the College business activities and programs which include practice review, discipline, and continuing competence. The College is a not-for-profit organization for income tax purposes. No dividends may be paid or assets distributed to members of the College.

2. SuMMARy Of SIgNIfICANT ACCOuNTINg POLICIES

Measurement uncertaintyThe preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Such estimates include providing for amortization of equipment and leasehold improvements. Actual results could differ from these estimates.

Restricted and unrestricted investmentsInvestments are classified as available for sale and are recorded at market value.

Equipment and leasehold improvementsEquipment and leasehold improvements are stated at cost less accumulated amortization. Equipment and leasehold improvements are amortized over their estimated useful lives at the following rates and methods:

Computer equipment - 30% declining balance method yFurniture & fixtures - 20% declining balance method yLeasehold improvements - 20% straight-line method y

Revenue recognitionThe College follows the deferral method of accounting for contributions. Restricted contributions are recognized

as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Membership fees are collected annually for the calendar year. Revenue is recognized monthly on a straight-line basis.Government grants are recognized as revenue in the year in which the related expenses are incurred. Deferred revenue represents membership fees for the period from October to December of this calendar year in addition to unspent government assistance.

Investment income includes dividend, foreign income and interest income. Unrealized gains and losses on available for sale financial assets are included directly in net assets until the asset is removed from the statement of financial position.

Contributed goods and services The College records the fair market value of donated goods and services only in circumstances where the fair market value is reasonably determinable and where the goods and services would otherwise be purchased by the College.

3. fINANCIAL INSTRuMENTS The College’s financial instruments consist of cash, accounts receivable, restricted investments, unrestricted investments and accounts payable and accrued liabilities. It is management’s opinion that the College is not exposed to any significant interest, currency or credit risks arising from these financial instruments. The carrying amounts of these financial instruments approximate their fair values. The financial markets experience a high degree of volatility. The College’s investments are exposed to market and price risk associated with this volatility.

Year ended September 30, 2010

18College of Physical Therapists of Alberta Annual Report 2010

5. EquIPMENT ANd LEASEhOLd IMPROvEMENTS

Cost Accumulated amortization

2010 net book value

Computer equipment $ 27,851 13,863 $ 13,988Furniture + fixtures 70,319 17,658 52,661Leasehold improvements 135,821 27,164 108,657

$233,991 $ 58,685 $ 175,306

Cost Accumulated amortization

2009 net book value

Computer equipment $ 93,350 81,409 $ 11,941

Furniture + fixtures 160,667 112,171 48,496

Leasehold improvements 79,466 29,342 50,124$ 333,483 $ 222,922 $ 110,561

6. dEfERREd CONTRIBuTION RELATEd TO gOvERNMENT gRANT During the year the College was approved for a government grant in the amount of $57,400 for the development of a web-based credential assessment tool for internationally educated physical therapist in Canada. The total amount received as of September 30, 2010 was $51,660. An in-kind amount of $40,000 will also be contributed by time and guidance provided by the College’s advisory committee and the staff of The Canadian Alliance of Physiotherapy Regulators.

2010 2009Government grant $ 51,660 -Less authorized expenditures (6,809) -

$ 44,851 -

4. INvESTMENTS

2010 2009

Cash $ 63,766 $ 2,913

Government + corporate bonds - 505,050

Guaranteed investment certificates + deposit note including accrued interest

- 98,500

Mutual funds $ 1,495,325 324,622

Total investments $ 1,559,091 $ 931,085

Investments is comprised of:

Restricted investments $ 981,543 931,085

Unrestricted investments $ 577,548 -

7. EMPLOyEE fuTuRE BENEfITSThe College has a defined contribution plan under which both the College and employees make contributions. The College’s contributions and corresponding expenses totaled $26,761 (2009 - $22,869).

8. NET ASSETS fROM ALBERTA PhySIOThERAPy ASSOCIATIONEffective December 31, 2009, the Alberta Physiotherapy Association was dissolved and the assets and liabilities of the Alberta Physiotherapy Association were transferred to the College of Physical Therapists of Alberta. The assets and liabilities transferred consisted of the following:

AssetsCash $ 30,600Investments 341,613Prepaid expenses 8,483Equipment + leaseholdimprovements 1,998

$ 382,694

Liabilities and net assetsAccounts payable + accrued liabilities $ 12,267

Net assets 370,427 $ 382,694

9. CAPITAL MANAgEMENTThe College’s capital is comprised of its unrestricted net assets and its restricted investments for membership reserve. The College’s objectives when managing capital are to safeguard its ability to continue as a going concern with sufficient capital to pay for monthly operating costs as they come due as well as to fund business activities and programs which include practice review, discipline, and continuing competence. The College has also by resolution of Council established a restricted investment account (note 4) to equal at least one year of expected costs, recalculated on an annual basis as a contingency fund. This fund is to be used for unforeseen legal liabilities, discipline costs and other unanticipated expenses incurred during the operating year. Council approval is required for any utilization of the membership reserve net assets fund.

Notes to Financial Statements

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Notes to Financial Statements

In managing its capital, the College prepares an annual budget of operating costs that are updated as necessary depending on various factors, including special projects and general industry conditions. This budget is approved by Council. In addition, the College has established guidelines regarding its restricted investment reserve. The primary focus is the preservation of capital. It strives to maintain a portfolio mostly concentrated in moderate risk income generating investments. In accordance with Council policy, the restricted funds are actively managed by a capital asset management group and overseen by an independent financial advisor. In order to maintain or adjust the capital structure, membership fees are reviewed by the Council. Proposed fee increases must be approved by members. The College expects its current capital resources will be sufficient to meets its objective through its current operation period.

10. COMMITMENTS The College operates from leased premises under a long term lease to May, 2014. The lease provides for annual rental payments of approximately $80,000 which include a proportionate share of operating costs. The College is responsible for its share of any additional incremental operating costs.

The College is committed to the terms of an operating lease for an office photocopier to January, 2013. Annual payments on the operating lease are $4,400. The College has also signed a contract to lease its phone system to February, 2015. Annual payments on the operating lease are $6,086.

The College has pledged annual scholarship contributions of $20,000 to the University of Alberta to December, 2012.

Membership fees (schedule 1) 2010 2009

Physical therapists $ 1,164,185 $ 1,118,252Physical therapy corporations 15,037 14,813

Registered practitioners 45,675 29,107

Penalty fees 13,200 12,975

$ 1,238,097 $ 1,175,147

Schedule tO financial StatementS

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