Annual Report 2012-2013 - NAPRA · (Canada Health Infoway) Commander Sylvain Grenier Travel Health Capacity Working Group (Public Health Agency of Canada) 5 Annual Report 2012-2013

Annual Report

2012-2013

Suite 750, 220 Laurier Avenue West, Ottawa, Ontario K1P 5Z9

Mission The National Association of Pharmacy Regulatory

Authorities (NAPRA) provides national leadership in pharmacy regulatory practices that enhance

patient care and public protection.

Vision Optimal health outcomes for Canadians through pharmacy regulatory excellence.

1

Annual Report 2012-2013

TABLE OF CONTENTS

NAPRA Board of Directors 2

NAPRA Committees 2012-2013 3

President’s Message 5

Executive Director’s Report 7

Auditor’s Report and Audited Financial Statements

10

Notes to the Financial Statements 16

NAPRA Member Contact Information 27

2


NAPRA BOARD OF DIRECTORS

April 2013 Ottawa, Ontario

From left to right:

Front row:

Bob Nakagawa, Neila Auld, Tracy Wiersema, Debbie McCulloch, Diane Brideau-Laughlin, Carole Bouchard, Commander Sylvain Grenier, Ray Gulliver, Susan Wedlake

Back row:

Manon Lambert, Anjli Acharya, Greg Eberhart, Ray Joubert, Sam Lanctin, Bob Craigue, David McLeod, Kyle MacNair, Ron Guse, Marshall Moleschi, Craig Connolly, Pauwlina McGrath, Barbara Harvey, Margot Priddle,

Debra Willcox, Diane Lamarre

Absent: Fiona Charbonneau, Samantha Van Genne, Linda Hensman

3


NAPRA COMMITTEES 2012-2013

(continued on the next page)

Executive Committee Chair: Debbie McCulloch The Executive Committee supports the Board of Directors in various capacities including decisions regarding the drug placement on the National Drug Schedules, review financial variance reports, advise on the preparation of operational plans and budgets, and to review policy or other issues when required and provide recommendations to the Board.

Council of Pharmacy Registrars of

Canada (CPRC) Chair: Neila Auld The Council of Pharmacy Registrars of Canada (CPRC) has separate defined roles within their capacity as a Board Com-mittee and within their capacity as a group of Registrars. For example as a Board committee CPRC provides advice to the Board, identifies national issues, recommends policy and acts as a liaison between PRAs and NAPRA. As a group of Registrars, CPRC coordinates provincial/territorial operational collaboration, participates in stakeholder en-gagements (e.g. with government) and acts as a forum for discussion of inter-provincial/territorial issues.

International Pharmacy Graduates (IPG) Steering Committee Chair: David McLeod The International Pharmacy Graduates (IPG) Project Steer-ing Committee acts as the decision-making body for major issues, and all deliverables related to the IPG project. The Committee provides leadership and vision to guide the pro-ject through the development and implementation stages.

International Pharmacy Graduates (IPG) Advisory Working Group Chair: Anick Minville The International Pharmacy Graduates (IPG) Project Advisory Working Group provides advice, expert guidance and constructive input to the Project Management team to ensure that the registration processes, assessment tools and project database are effective, efficient and as comprehen-sive as possible.

National Committee on Regulated Pharmacy Technicians (NCRPT) Chair: Linda Hensman The Committee was created to address, review and make recommendations to NAPRA regarding issues related to regulated pharmacy technicians.

National Drug Schedules Review Steering Committee Chair: Tracy Wiersema The Board created an ad hoc committee to steer the National Drug Schedules Review Project.

National Drug Scheduling Advisory Committee (NDSAC) Chair: Kathy McInnes The Committee was established to advise the provincial pharmacy regulatory authorities on matters relating to the placement of drugs within a three schedule/four category national model. NDSAC members are mandated to serve in the public interest, aiming to promote optimal pharma-cotherapy while recognizing the role and responsibility of the patient in health care.

National Advisory Committee on Pharmacy Practice (NACPP) Chair: Craig Connolly The Committee was created to ensure that the National Model Licensing program and its components as well as the Mobility Agreement for Canadian Pharmacists (MACP) maintain their relevancy as pharmacy practice evolves, and to advise NAPRA on matters pertaining to pharmacy practice at the national level.

http://129.128.180.43/pages/Schedules/committee_members.aspx

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NAPRA COMMITTEES 2012-2013 (CONTINUED)

External Appointments

The following individuals are appointed to sit as the association’s representative on professional committees, advisory committees, working groups or boards.

Thank you to all committee volunteers who served in 2012-2013

Kim Abbass · Anjli Acharya · Neila Auld · Dr. Thomas Bailey · Heather Baker · Dr. Ratna Bose · Dr. Murray Brown · Gail Bradley · Diane Brideau-Laughlin · Fiona Charbonneau · Heather Christ · Craig Connolly · Dale Cooney · Bob Craigue · Arlene Crane · Ken Crawford · Della Croteau · Drena Dunford · Greg Eberhart · Jeanne Eriksen · Moshtagh Hassan Fadaie · Shelly Gerber · Commander Sylvain Grenier · Ronald Guse · Barbara Harvey · Melanie Healey · Linda Hensman · Sandi Hutty · Susan James · Ray Joubert · Diane Lamarre · Manon Lambert · Sam Lanctin · Doreen Leong · Susan Lessard-Friesen · Kyle MacNair · Dr. Carlo Marra · Debbie McCulloch · Kathy McInnes · Kim McIntosh · David McLeod · Gary Meek · Anick Minville · Marshall Moleschi · Kathy Moscou · Bob Nakagawa · Marie-Claude Poulin · Margot Priddle · Dr. John Pugsley · Anne Resnick · Don Rowe · Joan Sayer · Sue Sampson · Suzanne Solven · Pat Trozzo · Samantha Van Genne · Sheryl-Ann Wasson · Susan Wedlake · Tracy Wiersema · Debra Willcox · Michelle Wyand · Dr. Peter Zed · Bev Zwicker

Blueprint for Pharmacy Steering Committee (Canadian Pharmacists Association)

Carole Bouchard

Canada Council for Accreditation of Pharmacy Programs

Marshall Moleschi

Canadian Network of National Association of Regulators

Carole Bouchard

global Top Level Domain (gTLD) Governance Committee (National Association of Boards of Pharmacy)

Carole Bouchard

Canadian Patient Safety Institute (NAPRA is a Voting Member)

Carole Bouchard

National Council on Prescription Drug Misuse (Canadian Council on Substance Abuse)

Debbie McCulloch

Scientific Advisory Committee on Nonprescription Drugs (Health Canada)

Carole Bouchard

Standards Collaborative Strategic Committee (Canada Health Infoway)

Commander Sylvain Grenier

Travel Health Capacity Working Group (Public Health Agency of Canada)

Anjli Acharya

5


PRESIDENT’S MESSAGE

A s I started to reflect on my message for this year’s report, I was bombarded by an

overwhelming sense of “I can’t forget to mention this…nor this…nor this…”

realizing of course that it was very likely that, yes, I would forget to account for

something. Almost simultaneously, I recognized that any forgetfulness would not

be from lack of trying to remember but more simply just a case of too much information. As

the moments passed, and when looked at another way, I realized that this was not a bad thing.

Setting aside all the other aspects of life that infiltrate the tens of thousands of thoughts we

process on a daily basis and focus only on NAPRA’s work (inclusive of our Board, Executive

and committees), I am certain that over the course of the year it measured a significantly high

volume of “brainwave traffic”. And to me, that says something. In fact, that says a lot.

One of the words that I believe summarizes, and essentially accounts for the great many thoughts associated with my

term as President is “achievement”. The Merriam-Webster dictionary defines achievement as: a result gained by effort. I do

believe this is the most apt description of NAPRA’s activities over the last twelve months. Our achievements, be they

great or small, were significant. We set out our plan to respond to the needs of our members, our colleagues in the pro-

fession and to support the changing scope of practice for Canadian pharmacy professionals. Through the efforts of the

Board, the Executive, our committees and of course our talented national office staff, the work was carried out. Every

step forward from the idea phase to the completion of a series of tasks or milestones associated with each activity was,

again, an achievement for all.

We have entered the final leg of our journey that started in 2010 with the Pharmacists’ Gateway Canada for international

pharmacists. The end is most definitely near. Speaking on behalf of all involved, both past and present, we could not be

happier. This project was such a massive undertaking for an association of our size but I truly believe the end result will

be a service that will respond to the needs of our member pharmacy regulatory authorities and the internationally trained

pharmacists who are eager to live and work in our country. As with any project of this scale, there were bumps along the

way but our end goal was clear and unwavering. To that end, this entire process has consisted of a series of small, medi-

um and large achievements that anyone who has contributed to it can be proud of. I look forward to celebrating the

Gateway’s launch and the incorporation of this program into NAPRA’s regular suite of services.

Supporting our members in their role as self-regulating bodies is to support the changing scope of practice of pharmacy

professionals nation-wide. And so with the advent of regulation for pharmacy technicians in a few of our member prov-

inces – with others at various stages in the process in their own jurisdictions – there has been a major shift in our prac-

tice.

This past year NAPRA once again embarked on something entirely new: developing a national bridging program curricu-

lum for pharmacy technicians. The intent of the national program – adapting the existing curriculum material from three

member provinces – is to assist individuals already working in the role of pharmacy technician to upgrade their skills

(continued on next page)

Diane Brideau-Laughlin Photo: Miv Photography

6


PRESIDENT’S MESSAGE (CONTINUED)

to align with changes in the scope of practice of pharmacy technicians, without returning to school to complete a full-

time training program. With the funding received from the Inter-provincial Labour Mobility Initiative (Human Resources

and Skills Development Canada) and the generosity of three of our members who shared their programs, the NAPRA

staff achieved a remarkable feat. NAPRA introduced a completely new program as part of its core services – from start to

finish – within a 12-month time frame. From the notice of the receipt of funding to the final step to be in the position to

offer a ready-to-deliver curriculum to educational institutions – all of this was accomplished in record time. There is still

work to be completed but the program/service is well on its way and I believe will be a credit to our organization.

While it was a year marked by progress and advancement for all that is “new” at NAPRA, we also began the work needed

to update two of our foundation documents – the entry-to-practice competencies for pharmacy professionals. Both the

competencies for pharmacists and pharmacy technicians were reviewed in parallel with a goal to update the competencies

where necessary to better support the role of both health professionals and to ensure that the terminology in both docu-

ments is appropriate and consistent. This was – and remains an extensive undertaking – but we are making progress. The

National Advisory Committee on Pharmacy Practice (NACPP), supported by the national office staff, is doing an out-

standing job to bring this all together. Continued success to all involved as they move closer to the conclusion of the pro-

cess and the publication of the final documents.

I must return to my earlier sentiment that all of NAPRA’s collective achievements – great or small – are praiseworthy.

Moreover, it is important to recognize that our accomplishments are not the work of just a few, but of many. I offer my

sincere thanks to all individuals who serve on our Board, advisory committees, steering committees, working groups and

the team at the national office. It is a list of people that impresses me year after year as a symbol of the dedication of oth-

ers to the betterment of pharmacy in general and pharmacy regulation in particular. We continue to face and meet the

challenges set before us with a strong sense of purpose and commitment to the NAPRA mission to provide leadership in

pharmacy regulatory practices that enhance patient care and public protection.

Although my term as President has drawn to a close, I am confident that in merely one year’s time, the author of the next

message for this publication will again proudly outline the many achievements accomplished by this organization. I, for

one, will look forward to reading of these successes not only next year but in the years to come knowing that I once had

the privilege of leading such a capable and hard-working group of people.

Diane Brideau-Laughlin President

7


EXECUTIVE DIRECTOR’S REPORT

T he most recent year was extremely busy for the Board under the leadership of Di-

ane Brideau-Laughlin and our numerous committees. At the outset of the 2012-

2013 period encompassed in this report, we endeavoured to maintain the focus and

priority activities on those outlined in the Strategic Plan – most notably our Key

Result Areas (KRAs). However in consultation with the Board, the priorities for 2012-2013

were reviewed and revised based on the direction received from the Board to advance some

pressing issues not previously identified in the plan (e.g. drug shortages, pharmacy practice

management systems requirements document, drug injection competencies). While addressing

these new priorities, we pursued activities/work on certain key result areas where possible.

My report provides an overview of NAPRA’s activities and projects over the past year.

NAPRA’s Strategic Plan for 2012-2015

KRA#1 Proactive Influence & Leadership

It was a very significant year for NAPRA’s activities falling under the umbrella of this key result area. Some of the activi-

ties included: a submission to the Council of the Federation Working Group on Health Care Innovation; the adoption,

distribution and related activities to advance the federal government’s awareness of the report on drug shortages prepared

by a few organizations in the province of Québec including the Ordre des Pharmaciens du Québec; and participation as a

member on the National Advisory Council of Prescription Drug Misuse as well as the Public Health Agency of Canada

Travel Health Capacity Working Group.

Throughout this reporting period, NAPRA continued to monitor and work with Health Canada on important matters for

pharmacy regulators including proposed repeal of Schedule F of the Food and Drug Regulations in favour of a newly created

Prescription Drug List, Health Canada Policy on Manufacturing and Compounding Drug Products in Canada (POL-0051) as well

as changes to the federal legislation regarding the authority of transferring prescriptions for pharmacy technicians. NAP-

RA continued its involvement in the discussion surrounding the Pan-Canadian Framework for the Assessment and Recognition of

Foreign Qualifications, spoke with government representatives on the proposal to amend requirements of the Federal Skilled

Worker Program (FSWP) and appeared before Senate Standing Committee on Social Affairs, Science and Technology to

contribute to their examination of the post-market monitoring of prescription pharmaceuticals.

Having the shared objective of public protection in mind, NAPRA and the National Association of Boards of Pharmacy

(NABP) explored two interconnected avenues on how to combat fraudulent transactions of purchasing prescription

drugs over the Internet. A dialogue on the expanded Verified Internet Pharmacy Practice Sites (VIPPS) program and a

potential role for NAPRA in the program was discussed. In parallel to the VIPPS discussion, NAPRA accepted to sit on

the global Top Level Domain (gLTD) Governance Committee which provides the forum for strategic discussions regard-

ing NABP’s application to administer a new internet .PHARMACY domain. It is expected that discussion will continue

on this topic through to the next reporting period.


Carole Bouchard Photo: Miv Photography

8


EXECUTIVE DIRECTOR’S REPORT (CONTINUED) In addition to the above-mentioned activities, contact continues to be maintained with national and international organiza-

tions such as the Canadian Pharmacists Association (CPhA), the Canadian Society for Hospital Pharmacists (CSHP), the

Pharmacy Examining Board of Canada (PEBC), the Canadian Council on Continuing Education in Pharmacy (CCCEP),

the Association of Faculties of Pharmacy (AFPC), the Canadian Patient Safety Institute (CPSI), the Institute for Safe Med-

icine Practices Canada (ISMP Canada), the Canadian Network of National Association of Regulators (CNNAR) and other

health professional regulatory associations.

KRA #2 Foundation Documents

In this past year, the reestablished National Advisory Committee on Pharmacy Practice (NACPP) started its work. Sup-

port was received by Human Resources and Skills Development Canada (HRSDC), to undertake a review of the entry-to-

practice competencies for both pharmacists and pharmacy technicians. The parallel review was an ambitious undertaking

but it is well underway. The work of the committee will continue with the intention to receive Board approval for both

documents in the next reporting cycle. The Committee will focus subsequent discussions on the cycle of review for other

foundation documents and, as a result, will bring forward their recommendations to the Board.

One of the most noteworthy items under this KRA was the receipt of funding from HRSDC for the development of a

national bridging program for newly regulated pharmacy technicians. Although this was welcomed news, it presented

NAPRA with some challenges as it impacted the timelines of other planned activities. In consideration of the volume of

work involved with the Bridging Education Program project, its deadlines and the competing timeline associated with the

IPG project, the Executive Committee supported delaying the advancement of other activities outlined in the Operational

Plan.

KRA #3 National Drug Schedules

Work continued on the National Drug Schedules (NDS) Review in the early part of this reporting cycle and a briefing

paper was prepared for the Board. This paper elaborated on a few areas noted in the Background Document developed to support

the review of the NDS program and contained the following: articulation of the major policy issues related to the program,

their potential liabilities as well as the means of achieving resolution. While the activities of NDS Review remain important

to the Board, the review was temporarily suspended due to competing priorities.

KRA #4 IPG Project

Throughout the year, the progress achieved for International Pharmacy Graduates (IPG) project was steady. The sustaina-

bility plan was agreed to by the Board and steps were taken to put the plan into action. Work continued on the compo-

nents of the website including the public-facing design and content, the administrative infrastructure and the tools (the

Readiness for Pharmacy Practice and Licensure in Canada Self-Reflection tool and the Pharmacy Practice Skills Self-Assessment tool).

The project team continued to work diligently with all organizations external to NAPRA (PRAs and PEBC) to align sys-

tem implementation.


9


EXECUTIVE DIRECTOR’S REPORT (CONTINUED)

While the work continues on the technological side of the project, NAPRA also continued to move forward on critical

areas such as a privacy impact assessment, a threat risk assessment as well as the required legal (e.g. memorandums of un-

derstanding) and insurance documentation that will be required to move the project into NAPRA’s ongoing day-to-day

operations.

With such a large scale deployment, it is only reasonable to expect that there will be challenges along the way. This project

is no different. As a result of the challenges encountered, it was necessary to readjust timelines accordingly.

Other Priorities

While work advanced on the position paper on prescriptive authority for controlled substances, it was temporarily placed

on hold due to higher than anticipated workload demands for support of the Bridging Education Program and IPG pro-

jects.

To better safeguard the association’s intellectual property, an application for the registration of the NAPRA and IPG log-

os was initiated. As the association moves toward offering more direct public-facing services (e.g. IPG Gateway and the

Bridging Education Program), the protection of the NAPRA brand was brought into focus and became a principle moti-

vation for this initiative.

In consideration of the new Not-for-Profit Corporations Act, NAPRA established a transition team to work with in tandem

with myself and the association’s legal counsel to complete the necessary steps in order to be in compliance with the new

legislation in a timely manner. Work progressed throughout the year and the application for continuance under the new

Act was filed. The transition team will continue to pursue the remaining tasks/actions necessary to ensure that the associa-

tion is fully compliant with the Act in due course.

All of the work accomplished as put forward in this report could not be accomplished without the efforts of many people.

I would like to express my gratitude to the members of the Board of Directors, the Executive Committee, the Council of

Pharmacy Registrars of Canada, and our advisory committees. Our work can only be accomplished with the guidance and

contribution of this dynamic group of volunteers. In addition, I would like to thank all the members of the national office

team who support all of the association’s programs and projects – they form an integral part of all of our activities and

ultimately our successes. I look forward to continuing to work with these individuals and to advance our activities in the

coming year.

Carole Bouchard Executive Director

10


AUDITOR’S REPORT AND AUDITED FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

TO: To the Members of the

National Association of Pharmacy Regulatory Authorities

We have audited the accompanying financial statements of the National Association of Pharmacy Regula-

tory Authorities, which comprise the financial position as at December 31, 2012, December 31, 2011 and

January 1, 2011 and statements of operations, changes in net assets and cash flows for the years ended De-

cember 31, 2012 and December 31, 2011, and a summary of significant accounting policies and other ex-

planatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in ac-

cordance with Canadian accounting standards for not-for-profit organizations, and for such internal control

as management determines is necessary to enable the preparation of the financial statements that are free

from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgement, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair

presentation of the financial statements in order to design audit procedures that are appropriate in the cir-

cumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of accounting policies used and the reasona-

bleness of accounting estimates made by management, as well as evaluating the overall presentation of the

financial statements.

11


AUDITOR’S REPORT AND AUDITED FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the

National Association of Pharmacy Regulatory Authorities as at December 31, 2012, December 31, 2011

and January 1, 2011 and its financial performance and its cash flows for the years ended December 31,

2012 and December 31, 2011 in accordance with Canadian accounting standards for not-for-profit organi-

zations.

CHARTERED ACCOUNTANTS

LICENSED PUBLIC ACCOUNTANTS

OTTAWA, Ontario

April 4, 2013

12


STATEMENT OF FINANCIAL POSITION As At December 31, 2012

(See Accompanying Notes to the Financial Statements)

December 31,

2012 December 31,

2011 January 1,

2011 (Note 2)

ASSETS $ $ $

CURRENT ASSETS

Cash

General 149,340 83,027 67,968

HRSDC Project - IPG Project (Schedule 1) 136,809 142,534 202,133

HRSDC Project - Bridging Project (Schedule 2) 103,543 - -

Short-term investments (Note 5) 705,000 637,200 657,624

Accounts receivable 43,120 42,480 20,864

Accrued interest receivable 6,950 6,854 3,983

Prepaid expenses 4,303 1,295 2,940

1,149,065 913,390 955,512

CAPITAL ASSETS (Note 4) 25,800 22,648 27,110

1,174,865 936,038 982,622

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable and accrued liabilities 64,215 51,545 23,297

Deferred contribution (Note 6) 270,040 186,241 212,242

334,255 237,786 235,539

COMMITMENTS (Note 10)

CONTINGENCY (Note 11)

NET ASSETS

Invested in capital assets 25,800 22,648 27,110

Internally restricted operating reserve 550,000 550,000 550,000

Internally restricted special project reserve 69,973 69,973 69,973

Unrestricted assets 194,837 55,631 100,000

840,610 698,252 747,083

1,174,865 936,038 982,622

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STATEMENT OF OPERATIONS For The Year Ended December 31, 2012


2012 2011 Actual Budget

$ $

(Note 9)

Unaudited

Actual

$

REVENUE

HRSDC Project - IPG (Schedule 1) 1,031,216 - 1,035,808

HRSDC Project - Bridging (Schedule 2) 80,060 - -

Membership fees 628,550 628,550 605,900

Grants and sponsorships 45,100 40,000 24,500

Interest income 12,300 5,500 14,754

1,797,226 674,050 1,680,962

EXPENSE

HRSDC Project - IPG (Schedule 1) 1,031,216 - 1,035,808

HRSDC Project - Bridging (Schedule 2) 80,060 - -

Amortization 18,664 6,911 3,722

Compensation and benefits (Note 8) 287,431 363,000 329,997

Fees 1,610 4,300 3,153

Insurance (Note 8) 4,793 5,150 3,818

Equipment maintenance 7,219 40,000 33,791

Meetings 42,868 67,500 33,832

Other 2,056 1,500 2,583

Professional fees 84,646 135,050 183,581

Rent (Note 8) 36,896 58,000 41,970

Sundry (Note 8) 15,129 14,050 9,829

Supplies 4,690 4,600 3,008

Travel 37,590 41,000 44,701

1,654,868 741,061 1,729,793

EXCESS OF REVENUE OVER EXPENSE

(EXPENSE OVER REVENUE) FOR THE

YEAR 142,358 (67,011) (48,831)

NET ASSETS - beginning of the year 698,252 747,083

NET ASSETS - end of year 840,610 698,252

14


Special

Project

Reserve

$

Operating

Reserve

$

Unrestricted

$

Invested in

Capital

Assets

$

2012

$

2011

$

BALANCE - beginning of year 69,973 550,000 55,631 22,648 698,252 747,083

Transfer - - (21,816) 21,816 - -

Excess of revenue over expense

(expense over revenue) - - 161,022 (18,664) 142,358 (48,831)

BALANCE - end of year 69,973 550,000 194,837 25,800 840,610 698,252

STATEMENT OF CHANGES IN NET ASSETS For The Year Ended December 31, 2012


Internally Restricted

Total

15


STATEMENT OF CASH FLOWS For The Year Ended December 31, 2012


2012 2011

$ $

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES

Excess of revenue over expense (expense over revenue) for the year 142,358 (48,831)

Item not affecting cash: Amortization 29,376 14,434

171,734 (34,397)

Net change in operating items:

Accounts receivable (640) (21,616)

Accrued interest receivable (96) (2,871)

Prepaid expenses (3,008) 1,645

Accounts payable and accrued liabilities 12,670 28,248

Deferred contributions 83,799 (26,001)

264,459 (54,992)

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

Purchase of capital assets (32,528) (9,972)

Decrease (increase) in short-term investments (67,800) 20,424

(100,328) 10,452

INCREASE (DECREASE) IN CASH FOR THE YEAR 164,131 (44,540)

CASH - beginning of year 225,561 270,101

CASH - end of year 389,692 225,561

16


NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2012

1. PURPOSE OF THE ORGANIZATION

The National Association of Pharmacy Regulatory Authorities (the “Association”) was

incorporated January 12, 1996 under the Canada Corporations Act, Part II as a not-for-profit

organization. The Association represents pharmacy provincial and territorial regulatory bodies as

well as the Canadian Forces Pharmacy Services, whose mandates are the protection of the public.

Its members regulate the practice of pharmacy and operation of pharmacies in their respective

jurisdictions in Canada. The Association is exempt from income tax in Canada as a not-for-profit

entity under Section 149(1)(L) of the Income Tax Act (Canada).

2. ADOPTION OF ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT

ORGANIZATIONS

These financial statements were prepared in accordance with Part III of the CICA Handbook-

Accounting (“Part III”).

The Association’s first reporting period using Part III is for the year ended December 31, 2012. As

a result, the date of transition to Part III is January 1, 2011. The Association presented financial

statements under its previous Canadian generally accepted accounting principles annually to

December 31st of each fiscal year up to, and including, December 31, 2011.

As these financial statements are the first financial statements for which the Association has

applied Part III, the financial statements have been prepared in accordance with the provisions set

out in Section 1501 of Part III, First-time Adoption by Not-for-Profit Organizations.

The Association is required to apply Part III effective for periods ending on December 31, 2012

in:

a) preparing and presenting its opening statement of financial position at January 1, 2011; and

b) preparing and presenting its statement of financial position for December 31, 2012 (including

comparative amounts for 2011), statement of operations, statement of changes in net assets,

and statement of cash flows for the year ended December 31, 2012 (including comparative

Amounts for 2011) and disclosures (including comparative information for 2011).

Section 1501 provides organizations with certain exemptions to the principle that an organ-

ization’s opening statement of financial position shall comply with Part III.

The Association has not elected to use any of the exemptions upon adoption of Part III.

17



2. ADOPTION OF ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT

ORGANIZATIONS (CONT’D)

The Association issued financial statements for the year ended December 31, 2011 using generally

accepted accounting principles prescribed by CICA Handbook-Accounting XFI. The adoption of

Part III had no impact on the previously report assets, liabilities and equity of the Association and

accordingly; no adjustments have been recorded in the comparative statements of financial po-

sition, operations, net assets and cash flows. Certain of the Association’s disclosures included in

these financial statements reflect the new disclosure requirement of Part III.

3. ACCOUNTING POLICIES

Basis for Accounting

The Association’s statements are prepared in accordance with Canadian generally accepted

accounting principles, using the accrual method of accounting.

Revenue Recognition

Contributions

The Association follows the deferral method of accounting for contributions. Restricted contribu-

tions 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. Restricted contributions related

to the purchase of project capital assets are initially deferred and recognized as revenue on the

same basis as the amortization expense related to the acquired capital assets.

The Association has four continuing significant revenue streams:

Sponsorships;

Interest and investment income;

Membership fees; and

Project fees.

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3. ACCOUNTING POLICIES (CONT’D)

Contributions - Cont’d

The Association’s sponsorship revenue is recognized as revenue in the period in which payment is

received. Project fees are recognized as revenue when the monies are received by the Association

and all of the associated expenses have been incurred. Interest income is included as earned under

the accrual method. Membership fees are recognized as revenue in the year to which they relate.

Amounts received in advance are restricted as deferred contributions.

Internally Restricted Reserves

Operating Reserve

The operating reserve was established under a Board Executive Expectations Policy/Finance Plan-

ning to maintain operating reserves for annual budgeted operating expenses.

Special Project Reserve

The special project reserve was established under a Board Executive Expectations Policy/Finance

Planning to maintain special project and other special purpose reserves.

Short-term Investments

Short-term investments are recorded at fair value based on broker stated values. For investments

without stated trading values amounts are valued at original cost.

Capital Assets

Capital assets are recorded at cost and are being amortized over their estimated useful lives as

follows:

Furniture and equipment 20% Declining balance

Computer equipment and software 50% Declining balance

Project furniture and equipment Term of Project Straight-line

Project computer equipment Term of Project Straight-line

19



3. ACCOUNTING POLICIES (CONT’D)

Use of Estimates

The preparation of financial statements in conformity with Canadian generally accepted account-

ing principles requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the

financial statements and the reported amounts of revenues and expenditures during the year. Sig-

nificant areas where estimates are used include accrued liabilities, estimated useful life of capital

assets, deferred contributions and contingent liabilities. Actual results could differ from those

estimates.

4. CAPITAL ASSETS

Cost

$

Accumulated

Amortization

$

Net Book Value

2012 2011

$ $

Furniture and equipment 7,927 5,561 2,366 2,957

Computer equipment and software 108,091 90,019 18,072 3,617

Project furniture and equipment 24,122 20,676 3,446 10,338

Project computer equipment 12,256 10,340 1,916 5,736

152,396 126,596 25,800 22,648



5. SHORT-TERM INVESTMENTS

Short-term investments are comprised of guaranteed investment certificates, interest payable

annually, at annual interest rates ranging from 1.25% to 2.00% as follows:

$ 30-day cashable, 1.25%, matures February 22, 2013 23,000

One year, 1.65%, matures February 27, 2013 50,000

One year, 1.75%, matures March 11, 2013 50,000

One year, 1.40%, matures March 20, 2013 50,000

30-day cashable, 1.45%, matures April 23, 2013 50,000

One year, 1.967%, matures April 22, 2013 50,000



One year, 1.617%, matures July 24, 2013 50,000

One year, 1.75% matures September 26, 2013 75,000



30-day cashable, 1.35%, matures June 11, 2013 50,000

Annual interest, 2.00%, matures April 28, 2014 25,000

Cash held by broker 12,000

705,000

6. DEFERRED CONTRIBUTIONS

20

Opening

Balance

$

Decrease

$

Ending Balance

2012 2011

$ $

Increase

$

Membership fees 1,200 (1,200) - 1,200 -

HRSDC

- Bridging - - 100,363 100,363 -

- IPG 168,968 (168,968) 164,316 168,968 164,316

- IPG capital assets 16,073 (10,712) 5,361 16,073 -

186,241 (180,880) 270,040 186,241 264,679

21



6. DEFERRED CONTRIBUTIONS (CONT’D)

Capital Assets

Deferred contributions that relate to capital assets represent capital assets purchased under

the HRSDC-IPG Contribution Agreement with restricted contributions. The changes in the

deferred contributions balance for the year are as follows:

7. FINANCIAL INSTRUMENTS

Fair Value

The financial instruments consist of cash, short-term investments, accounts receivable and

accounts payable, accrued interest receivable and accrued liabilities.

The fair value for short-term investments is determined on broker quoted values. For guaranteed

investment certificates amounts are presented at cost if no market value is readily available.

Credit Risk

The Association is exposed to credit risk on its accounts receivable. The Association’s exposure to

credit risk is reduced by the fact that most of its accounts receivable is from the government

sector. In the opinion of management the credit risk exposure to the Association is low and is not

material.

2012

$

2011

$

Opening balance 16,074 23,982

Contributed equipment - 2,804

Amounts amortized to project revenue (10,712) (10,712)

Ending balance 5,362 16,074

22



7. FINANCIAL INSTRUMENTS (CONT’D)

Interest Rate Risk

The Association is exposed to interest rate risk on investments in fixed income instruments. This

exposure may have an effect on earnings in future periods as marketplace rates may be different

than current rates. This risk is reduced due to maturities on fixed income investments being one

year or less and cashable after a 30-day period. In the opinion of management the interest rate

risk exposure to the Association is low and is not material.

Liquidity Risk

The Association does have a liquidity risk. Liquidity risk is the risk that the Association cannot

repay its obligations when they become due to its creditors or will encounter difficulty in raising

funds to meet commitments associated with its financial instruments. The Association reduces its

exposure to liquidity risk by ensuring that it documents when authorized payments become due.

In the opinion of management the liquidity risk exposure to the Association is low and is not

material.

8. ALLOCATED EXPENSES

Expenses allocated to the HRSDC - IPG project on a pro-rata basis are insurance, rent, telephone

and compensation and benefits totalling $47,594 for the year (2011 - $48,044).

9. BUDGET FIGURES

The budget figures are unaudited and are provided by the Association’s management as approved

in November, 2011.

23



10. LEASE COMMITMENTS

The Association has entered into an operating lease for office space which expires in September,

2015. Approximate future minimum lease payments for the next five years are as follows:

$

2013 22,104

2014 22,104

2015 16,570

The Association pays, as additional payments, its share of realty taxes and operating costs.

11. CONTINGENT LIABILITIES

In previous years audit reports, our note referred to claims made against a number of defendants

including the Association and others for damages. One of the claims has been successfully resolved

with a final release from the plaintiff. The Association’s view, which is supported by legal counsel,

is that the remaining claims will likely not be successful because of the Limitations Act.

24


HRDSC PROJECT—IPG

REVENUE AND EXPENSE For the Year Ended December 31, 2012

2012

$

2011

$

REVENUE

Project revenue 1,031,216 1,035,808

EXPENSE

Amortization - project capital assets 10,712 10,712

Compensation and benefits 250,469 259,850

Insurance 1,004 2,020

Equipment maintenance 26,051 113,194

Meetings 15,304 4,312

Other 312 406

Professional fees 615,939 536,462

Rent 32,980 28,217

Sundry 8,399 19,379

Supplies 8,293 13,380

Travel 61,753 47,876

1,031,216 1,035,808

EXCESS OF OVER REVENUE OVER EXPENSE

FOR THE YEAR - -

SCHEDULE 1

25


HRSDC PROJECT—BRIDGING

REVENUE AND EXPENSE For the Year Ended December 31, 2012

2012

$

2011

$

REVENUE

Project revenue 80,060 -

EXPENSE

Compensation and benefits 23,210 -

Professional fees 43,212 -

Sundry 648 -

Travel 12,990 -

80,060 -

EXCESS OF OVER REVENUE OVER EXPENSE

FOR THE YEAR - -

SCHEDULE 2

26


NDSAC - REVENUE OVER EXPENSE For the Year Ended December 31, 2012

Note: Compensation and benefits expense includes NDSAC and NDS activities.

2012

$

2011

$

REVENUE

Grants and sponsorships 43,900 24,500

EXPENSE

Compensation and benefits 14,372 -

Meetings 1,720 4,149

Professional fees 14,640 86,139

Sundry 37 230

Travel 9,378 16,623

40,147 107,141

EXCESS OF REVENUE OVER EXPENSE

(EXPENSE OVER REVENUE) 3,753 (82,641)

SCHEDULE 3

27


NAPRA MEMBER CONTACT INFORMATION

Alberta College of Pharmacists Suite 1200, 10303 Jasper Ave NW Edmonton, AB T5J 3N6 [email protected] Canadian Armed Forces Pharmacy Services Directorate of Medical Policy & Standards 1745 Alta Vista Dr Room 207 Ottawa, ON K1A 0K6 College of Pharmacists of British Columbia 200-1765 West 8th Avenue Vancouver, BC V6J 5C6 [email protected] Government of the Northwest Territories Health Professional Licensing Department of Health and Social Services 8th Floor, Centre Square Tower PO Box 1320 Yellowknife, NT X1A 2L9 [email protected] Government of Nunavut Department of Health and Social Services Professional Practice Unit P.O. Box 390 Kugluktuk, Nunavut X0B 0E0 [email protected] The Manitoba Pharmaceutical Association 200 Taché Ave Winnipeg, MB R2H 1A7 [email protected] New Brunswick Pharmaceutical Society 1224 Mountain Rd Unit 8 Moncton, NB E1C 2T6 [email protected]

Newfoundland and Labrador Pharmacy Board Apothecary Hall 488 Water St St. John’s, NL A1E 1B3 [email protected] Nova Scotia College of Pharmacists 1559 Brunswick St Suite 220 Halifax, NS B3J 2G1 [email protected] Ontario College of Pharmacists 483 Huron St Toronto, ON M5R 2R4 [email protected] Ordre des pharmaciens du Québec 266 rue Notre-Dame O bureau 301 Montréal, QC H2Y 1T6 [email protected] Prince Edward Island Pharmacy Board South Shore Professional Building Trans Canada Highway PO Box 89 Crappaud, PE C0A 1J0 [email protected] Saskatchewan College of Pharmacists 700-2010 Pasqua St Regina, SK S4S 7B9 [email protected] Yukon Consumer Services PO Box 2703 C-5 Whitehorse, YK Y1A 2C6 [email protected]