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SECTION III - SUPPLEMENTARY INFORMATION

3.1 Organizational Information

At Transport Canada headquarters, four Assistant Deputy Ministers - Policy, Programs, Corporate Services, Safety and Security, and an Associate Deputy Minister report to the Deputy Minister, in addition to Corporate Management, comprised of the Communications Group and Departmental General Counsel. Five Regional Directors General - Atlantic, Quebec, Ontario, Prairie and Northern, and Pacific - also report directly to the Deputy Minister. Each of these organizational heads is accountable for the management of his/her organization and for the delivery of results associated to the program activities as set out in the Program Activity Architecture.

 

3.2 Financial Tables

Table 1: Comparison of Planned to Actual Spending (including FTEs)

($ thousands)
Program activity	2004-05 Actual	2005-06 Actual	2006-07
			Main Estimates	Planned Spending	Total Authorities	Actual
Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system	438,705	485,906	550,435	623,336	569,705	499,315
Canadian Air Transport Security Authority	501,171	428,766	381,366	466,962	446,966	441,068
Policies, programs and infrastructure in support of a market-based framework	338,214	333,826	110,159	146,965	179,695	145,797
Jacques Cartier and Champlain Bridges Inc.	32,019	31,288	30,488	42,288	32,578	32,178
Federal Bridge Corporation Limited	-	-	-	-	200	129
Marine Atlantic Inc.	72,907	70,233	80,980	80,980	84,980	82,080
VIA Rail Canada Inc.	191,301	169,001	169,001	169,001	169,001	169,001
Policies and programs in support of sustainable development	33,876	55,144	94,763	87,097	74,831	56,615
Total	1,608,192	1,574,165	1,417,192	1,616,629	1,557,956	1,426,183*
Less: Non-respendable revenue	(48,017)	(76,128)	(32,734)	(32,734)	(137,287)	(137,287)
Plus: Cost of services received without charge	54,682	59,718	-	57,499	68,531	68,531
Total Department Spending	1,614,858	1,557,755	1,384,458	1,641,394	1,489,200	1,357,427
Full Time Equivalents	4,718	4,873	4,900	4,900	4,900	4,854

Due to rounding, columns may not add to total shown.

* Excludes $2.5 million non-budgetary investment in contributed surplus of Parc Downsview Park Inc associated with a transfer of lands.

Table 2: Resources by Program Activity

Program Activityy	2006-07 Budgetary ($ thousands)
	Operating 1			Capital	Grants	Contributions and Other Transfer Payments 2	Total: Gross Budgetary Expenditures	Less: Respendable Revenue	Total: Net Budgetary Expenditures
Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system
Main Estimates	493,406			32,991	430	68,005	594,833	(44,400)	550,435
Planned Spending	529,097			35,382	430	102,826	667,734	(44,400)	623,336
Total Authorities	538,723			35,274	310	55,121	629,428	(59,723)	569,705
Actual Spending	507,799			31,074	270	20,962	560,105	(60,790)	499,315
Canadian Air Transport Security Authority
Main Estimates	305,905			75,461	-	-	381,366	-	381,366
Planned Spending	347,305			119,657	-	-	466,962	-	466,962
Total Authorities3	446,966			-	-	-	446,966	-	446,966
Actual Spending3	441,068			-	-	-	441,068	-	441,068
Policies, programs and infrastructure in support of a market-based framework
Main Estimates	137,868		40,003		25,426	230,212	433,508	(323,349)	110,159
Planned Spending	153,600		46,812		39,690	230,212	470,314	(323,349)	146,965
Total Authorities	176,139		40,247		-	289,263	505,649	(325,953)	179,695
Actual Spending	174,317		37,708		-	258,629	470,654	(324,857)	145,797
Jacques Cartier and Champlain Bridges Inc.
Main Estimates	29,291		1,197		-	-	30,488	-	30,488
Planned Spending	29,291		12,997		-	-	42,288	-	42,288
Total Authorities3	32,578		-		-	-	32,578	-	32,578
Actual Spending3	32,178		-		-	-	32,178	-	32,178
Federal Bridge Corporation Limited
Main Estimates	-	-			-	-	-	-	-
Planned Spending	-	-			-	-	-	-	-
Total Authorities3	200	-			-	-	200	-	200
Actual Spending3	129	-			-	-	129	-	129

Table 2: Resources by Program Activity (continued)

Program Activity	2006-07 Budgetary ($ thousands)
	Operating 1	Capital	Grants	Contributions and Other Transfer Payments 2	Total: Gross Budgetary Expenditures	Less: Respendable Revenue	Total: Net Budgetary Expenditures
Marine Atlantic Inc.
Main Estimates	79,847	1,133	-	-	80,980	-	80,980
Planned Spending	79,847	1,133	-	-	80,980	-	80,980
Total Authorities3	84,980	-	-	-	84,980	-	84,980
Actual Spending3	82,080	-	-	-	82,080	-	82,080
VIA Rail Canada Inc.
Main Estimates	169,001	-	-	-	169,001	-	169,001
Planned Spending	169,001	-	-	-	169,001	-	169,001
Total Authorities3	169,001	-	-	-	169,001	-	169,001
Actual Spending3	169,001	-	-	-	169,001	-	169,001
Policies and programs in support of sustainable development
Main Estimates	61,990	3,461	-	29,383	94,834	(71)	94,763
Planned Spending	69,283	3,461	-	14,424	87,168	(71)	87,097
Total Authorities	62,390	3,604	-	8,906	74,900	(69)	74,831
Actual Spending	46,548	2,473	-	7,691	56,712	(97)	56,615
Total
Main Estimates	1,277,308	154,246	25,856	327,600	1,785,010	(367,818)	1,417,192
Planned Spending	1,377,424	219,442	40,120	347,462	1,984,447	(367,818)	1,616,629
Total Authorities	1,501,977	79,125	310	353,290	1,943,702	(385,745)	1,557,956
Actual Spending	1,453,120	71,255	270	287,282	1,811,927	(385,745)	1,426,183

Due to rounding, columns may not add to total shown.

Notes:

1. Operating includes statutory payments for employee benefit plans, Minister's allowances, previous years' refunds, payments in respect of the St. Lawrence Seaway Agreement, and proceeds from the disposal of surplus Crown assets.
2. Contributions and Other Transfer Payments include Statutory Payments for Victoria Bridge (Montreal) and the Northumberland Strait Crossing subsidy.
3. Total Authorities and Actual Spending under each Crown corporation:  Represents the payment by Transport Canada of the money appropriated to the Crown corporation.  It does not differentiate between the operating and capital expenditures made by the Crown corporation.

Table 3: Voted and Statutory Items

Vote or Statutory Itemm	Truncated Vote or Statutory Wording	2006-07 ($ thousands)
		Main Estimates	Planned Spending	Total Authorities	Actual
1	Operating expenditures	234,692	293,408	301,080	253,862
5	Capital expenditures	76,455	85,655	79,125	71,255
10	Grants and Contributions	296,228	330,354	297,173	231,125
15	Payments to Jacques Cartier and Champlain Bridges Inc.	30,488	42,288	32,578	32,178
20	Payments to Marine Atlantic Inc.	80,980	80,980	84,980	82,080
25	Payments to VIA Rail Inc.	169,001	169,001	169,001	169,001
30	Payments to the Canadian Air Transport Security Authority	381,366	466,962	446,966	441,068
33a	Payments to the Federal Bridge Corporation	-	-	200	129
(S)	Minister of Transport Canada - Salary and motor car allowance	73	73	73	73
(S)	Contributions to employee benefit plans	66,781	66,781	64,094	64,094
(S)	Payments to Canadian National Railway Company in respect of the termination of the collection of tolls on the Victoria Bridge, Montreal and for the rehabilitation work on the roadway portion of the Bridge	3,300	3,300	2,163	2,163
(S)	Payments in respect of the St. Lawrence Seaway agreements	23,900	23,900	23,927	23,927
(S)	Northumberland Strait Crossing subsidy payment	53,928	53,928	54,265	54,265
(S)	Spending of proceeds from the disposal of surplus Crown assets	-	-	2,332	963
(S)	Refunds of amounts credited to revenues in previous years	-	-	-	-
	Total	1,417,192	1,616,629	1,557,956	1,426,183

Due to rounding, columns may not add to total shown.

(S): Statutory

Table 4: Services Received Without Charge

	2006-077 ($ thousands)
Accommodation provided by Public Works and Government Services Canada (PWGSC)	25,560
Contributions covering employer's share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat (excluding revolving funds). Employer's contribution to employees' insured benefits plans and expenditures paid by TBS.	30,631
Worker's compensation coverage provided by Human Resources and Social Development Canada	3,802
Salary and associated expenditures of legal services provided by Justice Canada	8,538
Total Services Received Without Charge	68,531

Due to rounding, columns may not add to total shown.

Table 5: Sources of Respendable and Non-Respendable Revenue

($ thousands))
Respendable Revenue 1	Actual 2004-05	Actual 2005-06	2006-07
			Main Estimates	Planned Revenue	Total Authorities	Actual
Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system
Canadian aviation regulation user fees	7,862	8,291	8,648	8,648	8,648	8,090
Aircraft maintenance and flying services	30,710	29,700	25,646	25,646	34,369	34,369
Marine safety regulation user fees	8,282	8,313	7,544	7,544	7,544	8,170
Revenues from the Registrar of Imported Vehicles Program	1,962	2,423	600	600	4,600	4,600
Inspections and certifications	1,529	2,119	292	292	1,792	1,751
Lease payments from the Motor Vehicle Test Center	354	290	155	155	155	257
Rentals and concessions	761	840	598	598	598	981
Sales and training	842	1,071	812	812	812	823
Research and development	448	-	-	-	1,100	1,117
Miscellaneous	225	698	106	106	105	632
Sub-total	52,975	53,746	44,400	44,400	59,723	60,790
Policies, programs and infrastructure in support of a market-based framework
Air services forecasts revenues	253	235	160	160	160	221
Public port revenues from user fees and wharf permits	10,448	9,032	8,577	8,577	8,577	8,553
Airport revenues from user fees and service contracts	5,320	5,038	4,690	4,690	4,690	4,991
Airports Authorities - lease and chattel payments	241,862	288,320	299,894	299,894	302,498	302,513
Research and development	3,566	2,550	1,744	1,744	1,744	1,406
Rentals and concessions	8,341	8,124	7,574	7,574	7,574	6,895
Sales and training	191	112	109	109	109	129
Inspection and certification	-	-	-	-	-	3
Miscellaneous	558	263	602	602	601	146
Sub-total	270,539	313,675	323,349	323,349	325,953	324,857
Policies and programs in support of sustainable transportation
Rentals and concessions	37	39	62	62	62	78
Sales and training	-	-	-	-	-	6
Miscellaneous	45	8	7	7	7	13
Sub-total	82	47	69	69	69	97
Total Respendable Revenue	323,596	367,468	367,818	367,818	385,745	385,745

Table 5: Sources of Respendable and Non-Respendable Revenue (continued)

($ thousands)
Non-Respendable Revenue2	Actual 2004-05	Actual 2005-06	2006-07
			Main Estimates	Planned Revenue	Total Authorities	Actual
Non-navigational assets - St. Lawrence Seaway 3	8,486	10,385	5,200	5,200	7,461	7,461
Canada Port Authority stipends	10,844	11,698	12,534	12,534	12,033	12,033
Royalties from research and development	52	61	-	-	23	23
Hopper cars (leases, damage settlements and demurrage charges)	17,386	17,701	15,000	15,000	12,716	12,716
Return on investments- Crown Corporations4	-	-	-	-	87,865	87,865
Return on investments - Others 5	205	5,882	-	-	70	70
Refunds of previous year's expenditures	1,851	16,225	-	-	426	426
Adjustments to previous year's payables	4,862	6,794	-	-	7,234	7,234
Permits for transportation of explosives	130	37	-	-	33	33
Fines & penalties	1,329	893	-	-	898	898
Proceeds from sales	1,243	-	-	-	-	-
Proceeds from disposal of surplus Crown assets	1,170	963	-	-	1,369	1,369
Proceeds from sale of real property	-	5,059	-	-	6,614	6,614
Interest revenue from divested airports	-	20	-	-	-	-
Miscellaneous	458	410	-	-	545	545
Total Non-Respendable Revenue	48,017	76,128	32,734	32,734	137,287	137,287

Due to rounding, columns may not add to total shown.

Notes:

1. For consistency with amounts published in the Public Accounts (Details of Respendable Amounts), the respendable revenue categories include a share of departmental administration's respendable revenue.
2. Respendable revenues are on a modified cash basis and do not necessarily correspond to Public Accounts Form E which is prepared on an accrual basis.
3. Revenues from the St-Lawrence Seaway Management Corporation for managing Real Property Operations.
4. Dividends received from Canada Post Corp. $79.6M, Canada Lands Co. $7.2 million and Royal Canadian Mint $1.0M.
5. Includes Andrew Ferry seaway and remittances from Jacques Cartier & Champlain Bridges Inc.

Table 6: Resource Requirements by Branch/Sector level

($ thousands))
Organization 1	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system	Policies, Programs and Infrastructure in support of a market-based framework	Policies and Programs in support of sustainable development	Crown corporations2	Total
Assistant Deputy Minister, Safety and Security
Planned Spending	399,024	-	-	-	399,024
Actual Spending	281,104	-	-	-	281,104
Assistant Deputy Minister, Policy
Planned Spending	-	176,278	-	-	176,278
Actual Spending	-	154,050	-	-	154,050
Assistant Deputy Minister, Programs 3
Planned Spending	-	(102,287)	71,810	-	(30,477)
Actual Spending	2,215	(131,418)	25,231	-	(103,973)
Regional Director General, Atlantic
Planned Spending	39,199	8,349	2,913	-	50,461
Actual Spending	36,876	12,209	5,339	-	54,423
Regional Director General, Quebec
Planned Spending	45,171	35,902	2,841	-	83,914
Actual Spending	45,332	54,195	7,824	-	107,351
Regional Director General, Ontario
Planned Spending	49,666	12,945	2,465	-	65,076
Actual Spending	45,238	17,227	4,772	-	67,237
Regional Director General, Prairie and Northern Region
Planned Spending	48,882	9,909	3,580	-	62,371
Actual Spending	45,729	29,281	5,985	-	80,995
Regional Director General, Pacific
Planned Spending	41,394	5,869	3,488	-	50,751
Actual Spending	42,823	10,253	7,464	-	60,540
Total
Planned Spending	623,336	146,965	87,097	759,231	1,616,629
Actual Spending	499,315	145,797	56,615	724,456	1,426,183

Due to rounding, columns may not add to totals shown.

Notes:

1. The expenditures by organization presented under each program activity include a portion of departmental administration expenditures.
2. The Crown corporations presented in Transport Canada's Program Activity Architecture are the Canadian Air Transport Security Authority, Jacques Cartier and Champlain Bridges Inc., Marine Atlantic Inc., the Federal Bridge Corporation and VIA Rail Canada Inc. See Table 1 for their respective financial resources.
3. The sector "Assistant Deputy Minister Programs" includes all the Vote Netted Revenue recorded under the Program Activity "Policies, Programs and Infrastructure in support of a market based framework". The planned Vote Netted Revenue is higher than expenses for that sector therefore the amount is presented in brackets.

Table 7-A: 2006-07 User Fee Reporting: User Fees Act

				($ thousands))
A. User Fee	Fee Type1	Fee-Setting Authority	Date Last Modified B	2006-07					Planning Years
				Forecast Revenue3 ($000)	Actual Revenue3 ($000)	Full Cost2 ($000)	Performance Standard4	Performance Results4	Fiscal Year	Forecast Revenue3 ($000)	Estimated Full Cost2 ($000)
Aviation Safety - Regulatory Fees (Note 5)	R	Aeronautics Act http://laws.justice.gc.ca/ en/A-2/index.html Canadian Aviation Regulations (CARs) fees located at: http://www.tc.gc.ca/ civilaviation/regserv/ affairs/cars/menu.htm	July 15, 2000 Other amendments (regulations or charges reductions) beyond July 15, 2000 did not trigger the User Fee Act.	8,647	8,090 respendable	254,188	http://www.tc.gc.ca/ CivilAviation/ servicestandards.htm	General Aviation (GA) has recently improved its website in order to record and display levels of service for Aircraft Registration activities (aircraft registration, leasing and deletion). This improvement allows clients to monitor the completion of that activity over the Internet and shows if the service was completed on time. This pilot project will be used for other activities. The GA website link on Aircraft Registration and Leasing Service Levels is provided for reference http://www.tc.gc.ca/ aviation/ activepages/ ccarcs/aspscripts/en/ levelsearch.asp	FY 07-08 FY 08-09 FY 09-10	8,375 8,328 8,332	258,825 244,741 254,520
Marine Safety - Fees for inspections, surveys, services, etc.	R	Various regulations under the Canada Shipping Act (http://www.laws.justice.gc.ca/en/S-9/index.html) incl. the Board of Steamship Inspection Scale of Fees; Ships Registry and Licensing Fees Tariff; http://www.tc.gc.ca/ acts-regulations/ general/c/csa/ menu.htm	6 June, 1995 Subsequent amendments to Regulations were not fee related.	7,322	7,917 respendable	88,243	http://www.tc.gc.ca/ marinesafety/ service-standards/menu.htm	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	FY 07-08 FY 08-09 FY 09-10	7,412 7,382 7,382	81,230 84,291 84,679
Marine Safety - Office of Boating Safety - Construction Standard Compliance Labels	R	Canada Shipping Act /Small Vessel Regulations / TP 1332 incorporated by reference http://www.tc.gc.ca/acts-regulations/GENERAL/C/ csa/regulations/070/csa076/ csa76.html and TP 1332: http://www.tc.gc.ca/ MarineSafety/tp/ TP1332/menu.htm	1995 Subsequent amendments to Small Vessel Regulations were not fee related.	222	209 respendable	682	http://www.tc.gc.ca/ marinesafety/ service-standards/ fees.htm #OBS_Compliance_Labels	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	FY 07-08 FY 08-09 FY 09-10	210 210 210	753 603 612
Marine Safety - Ship Radio Inspection Program (Note 6)	R	Canada Shipping Act /Ship Radio Inspection Fees Regulations http://www.tc.gc.ca/acts-regulations/GENERAL/ c/csa/regulations/060/ csa062/csa62.html	1978	80	48 respendable	1,017 Department of Fisheries and Oceans (DFO) full cost share included above: 311	http://www.tc.gc.ca/ marinesafety/service-standards/menu.htm	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	FY 07-08 FY 08-09 FY 09-10	48 48 48	951 951 951 Department of Fisheries and Oceans (DFO) full cost share included above: 310
Airports - Air Services Charges Regulations (ASCR) fees: General Terminal Fees, Landing Fees, Aircraft Parking Charges, Emergency response services charges. (Note 7)	O	Section 4.4 (2) of the Aeronautics Act (http://laws.justice.gc.ca/en/ A-2/index.html), and Section 2 of the Ministerial Regulations Authorization Order - Air Services Charges Regulations http://www.tc.gc.ca/acts-regulations/General/A/aa/ regulations/120/aa129a/ aa129a.html	Aug. 31, 2003	4,509	4,768 respendable	12,208	http://www.tc.gc.ca/ programs/airports/ standards.htm	http://www.tc.gc.ca/ programs/airports/ standards.htm	FY 07-08 FY 08-09 FY 09-10	4,937 4,952 4,952	11,227 11,227 11,226
Airports - Annual Registration of Mobile Equipment used at Airports (Note 7)	O	Government Property Traffic Act and Airport Traffic Regulations - Part III Section 57 to 60 http://www.tc.gc.ca/acts-regulations/GENERAL/ d/dta/regulations/001/ dta002/dta002.html	Feb. 24, 2004	0.2	1.2 respendable	4.5	http://www.tc.gc.ca/ programs/airports/ standards.htm	http://www.tc.gc.ca/ programs/airports/ standards.htm	FY 07-08 FY 08-09 FY 09-10	1 1 1	4 4 4
Airports - Vehicle Parking Charges (Note 7)	O	Section 4.4(2) of the Aeronautics Act (http://laws.justice.gc.ca/ en/A-2/index.html) and Section 2 of the Ministerial Regulations Authorization Order, Airport Vehicle Parking Charges Regulations http://www.tc.gc.ca/acts-regulations/GENERAL/ A/aa/regulations/130/ aa131/aa131.html	Nov. 19,1998	173	210 respendable	1,252	http://www.tc.gc.ca/ programs/airports/ standards.htm	http://www.tc.gc.ca/ programs/airports/ standards.htm	FY 07-08 FY 08-09 FY 09-10	209 209 209	1,152 1,152 1,152
Ports - Public Port Revenues: Utility Charges, Wharfage, Berthage, Storage and Harbour Dues	O	Canada Marine Act http://laws.justice.gc.ca/ en/C-6.7/index.html Fees at: http://www.tc.gc.ca/ programs/ports/ menupublicportfees.htm	Jan 1, 2004	8,525	8,499 respendable	39,107	http://www.tc.gc.ca/ programs/ports/ standards.htm	http://www.tc.gc.ca/ programs/ports/ standards.htm	FY 07-08 FY 08-09 FY 09-10	8,358 8,374 8,374	27,821 27,786 27,786
Permits for Vehicles used for the Transportation of Explosives (Note 8)	R	Explosives Act Section 7: http://laws.justice.gc.ca/ en/showdoc/cs/e-17/bo-ga:s_7//en#anchorbo-ga:s_7 and Explosives Regulations Part III Section 31. (1) i http://laws.justice.gc.ca/ en/showdoc/cr/C.R.C.-c.599/bo-ga:1_III//en#anchorbo-ga:1_III	1993	37	34 non respendable	38	95 per cent of the time, will deliver: a) a decision accepting or rejecting a complete new factory application within 60 days after receipt, and b) a decision accepting or rejecting any other type of complete application within 30 days after receipt.	service standard met 100 per cent of time service standard met 100 per cent of time	FY 07-08 FY 08-09 FY 09-10	30 0 0	31 0 0
Access to Information Requests - Fees (Note 9)	O	Access to Information Act and Regulations :  http://laws.justice.gc.ca/ en/A-1/index.html	1992	9	6 non respendable (Consoli-dated Revenue Fund)	1,207	Service Standards are included in the Access to information Act, Section 7: http://laws.justice.gc.ca/ en/showdoc/cs/A-1/bo-ga:s_4-gb:s_6//en#anchorbo-ga:s_4-gb:s_6	Statutory deadlines have been met for 82 per cent of requests. 100 per cent of extension notices were sent within 30 days following the receipt of the request. 100 per cent of transfer notices were sent within 15 days.	FY 07-08 FY 08-09 FY 09-10	6 6 6	1,199 1,199 1,199
Total Regulatory Services (R)			Sub-total (R)	16,308.0	16,298.0	344,168.0		Sub-total R: Sub-total R: Sub-total R:	FY 07-08 FY 08-09 FY 09-10	16,075.0 15,968.0 15,972.0	341,790.0 330,586.0 340,762.0
Total Other Goods and Services (O)			Sub-total (O)	13,216.2	13,484.2	53,778.5		Sub-total O: Sub-total O: Sub-total O:	FY 07-08 FY 08-09 FY 09-10	13,511.0 13,542.0 13,542.0	41,403.0 41,368.0 41,367.0
Report Total			Total	29,524.2	29,782.2	397,946.5		Total	FY 07-08 FY 08-09 FY 09-10	29,586.0 29,510.0 29,514.0	383,193.0 371,954.0 382,129.0
B. Date Last Modified: Subsequent amendments to regulations were not fee related and did not trigger the User Fee Act
C. Other Information 10: In addition to complaint mechanism included in various Acts and Regulations (eg Access to Information and Privacy requests http://laws.justice.gc.ca/en/showdoc/cs/A-1/bo-ga:s_30//en#anchorbo-ga:s_30), several complaint mechanisms have been developed and implemented for service standards related to user fees at public ports: http://www.tc.gc.ca/programs/ports/standards.htm and Transport Canada operated airports http://www.tc.gc.ca/programs/airports/standards.htm for the Canadian Aviation Regulations (Civil Aviation Issues Reporting System [CAIRS]) http://tcinfo/CivilAviation/ManagementServices/QA/cairs.htm. A complaint mechanism policy "Handling of Complaints Related to Marine Safety User Fees and Applicable Service Standards" is now available on the web at:  http://www.tc.gc.ca/marinesafety/service-standards/handling-complaints.htm

Table 7-A: 2006-07 User Fee Reporting: User Fees Act (continued)

Due to rounding, columns may not add to totals shown.

The Internet links in this report may change following publication, since the various websites are updated regularly.

Notes:

1.  The department collects two types of fees: Regulatory Service (R) and Other Goods and Services (O).

2.  Full Costs (Actual and Estimates) are reported on an accrual basis. Represent the full cost of providing service, good, facility or privilege. Full cost is not necessarily fully attributed to fee-paying clients and a lower cost recovery level may be required based on stakeholders paying capability, etc.

Consistent with instructions for the DPR, Full Costs are calculated according to costing principles identified in the Treasury Board Secretariat's Guide to the Costing of Outputs Full Costs are defined as (Source: Treasury Board Secretariat's Guide to the Costing of Outputs in the Government of Canada-1994):

"The sum of all costs, direct and indirect, incurred by the government in the supply of a good, service, property, or right or privilege, including: services provided without charge by other departments (e.g., accommodation, employer contributions to insurance plans); costs financed by separate authorities (e.g., some employee benefits) ; the financing costs of inventories; and annualized capital costs, including financing. However, since the primary focus of this guide is full costing for cost recovery, transfer payments have not been included".

3. The Forecast Revenues identified for the 2007-08, 2008-09 and 2009-10 fiscal years were those reported in the Report on Plans and Priorities 2007-08 and are reported on a cash basis as for Actual.

4. According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• - Performance standard, if provided, may not have received Parliamentary review;
• - Performance standard, if provided, may not respect all establishment requirements under the User Fees Act (UFA) (e.g. international comparison; independent complaint address); and
• - Performance result, if provided, is not legally subject to UFA section 5.1 regarding fee reductions for failed performance.

5. Aviation Safety - Regulatory fees: Revision to standards, measurement is ongoing with the National Working Group on Services Standards. Pilot Project is currently in place in the Ontario Region to introduce ccmMercury as a possible tool to electronically manage, track and improve Civil Aviation's administrative and program related work processes. This project includes the development of methods and mechanisms to measure and report on service level performance including in those areas where regulatory fees are charged. Prototype testing is in place since April 2007 and will be finalized in Fall 2007. Recommendations will be made to Transport Canada Civil Aviation (TCCA) Authority for regional and national deployment.

6. Marine Safety - Ship Radio Inspection Program - Represents the full cost of providing inspection services. However, the User Fee is to recover the cost of overtime and travel only - 100 per cent cost recovery.

7. Airports User Fees - Exclude revenues and costs from sites divested in 2006-07 or earlier.

8. Permits for vehicles used for the Transportation of Explosives: Natural Resources Canada has entered into an agreement with Transport Canada for the issuance of these permits. Amendments to the Transportation of Dangerous Goods Regulations, which will abolish this permit program, are forecast to come into effect in early 2008.

9. Access to Information Requests - Fees: The Access to Information Act has provisions to waive fees.

10. Main achievement in improving service - In 2006 and 2007, Transport Canada in its commitment to provide quality services and client satisfaction, has also implemented dispute mechanisms that apply to services, use of facilities and provision of goods for which user fees are charged. This initiative ensures that stakeholders' concerns and complaints are handled immediately and redress mechanisms undertaken as appropriate. Internet web site links to various dispute mechanisms are identified under "Other Information" in the two Tables for User fee (Table 7-A) and External Fee reporting (Table 7-B).

Table 7-B: 2006-07 External Fee Reporting: Policy on Service Standards for External Fees

A. External Fee	Service Standard1	Performance Result1	Stakeholder Consultation
Aviation Safety - Regulatory Fees2	http://www.tc.gc.ca/ CivilAviation/servicestandards.htm	General Aviation has recently improved its website in order to record and display levels of service for Aircraft Registration activities (aircraft registration, leasing and deletion). This improvement allows clients to monitor the completion of that activity over the Internet and shows if the service was completed on time. This pilot project will be used for other activities. The GA website link on Aircraft Registration and Leasing Service Levels is provided for reference http://www.tc.gc.ca/aviation/activepages/ccarcs/aspscripts/en/levelsearch.asp	Consultations with stakeholders were last undertaken in 1997 for all fees and in 2000 and 2004 for specific fees. Fees published in Canada Gazette, in Dec. 1997, June 2000, and Sept. 2004 respectively. The June 2000 and September 2004 Amendments did not trigger the User Fee Act. The Canadian Aviation Regulation Advisory Committee (CARAC) was consulted in December 2006 to seek agreement on the consultation methodology in the future which was agreed to. Stakeholders' feedback now sought through the Civil Aviation Issues Reporting System (CAIRS).
Marine Safety - Fees for inspections, surveys, services, etc.	http://www.tc.gc.ca/ marinesafety/ service-standards/menu.htm	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	Consultation process completed in May 2006; comments received were favourable; no written comments received.
Marine Safety - Office of Boating Safety - Construction Standard Compliance Labels	http://www.tc.gc.ca/ marinesafety/ service-standards/fees.htm# OBS_Compliance_Labels	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	Consultation process completed in May 2006; comments received were favourable; no written comments received.
Marine Safety - Ship Radio Inspection program	http://www.tc.gc.ca/ marinesafety/ service-standards/menu.htm	Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.	Consultation process completed in May 2006; Comments received were favourable; no written comments received.
Airports - Air Services Charges Regulations (ASCR) fees: General Terminal Fees, Landing Fees, Aircraft Parking Charges, Emergency response services charges.	http://www.tc.gc.ca/ programs/ airports/standards.htm	http://www.tc.gc.ca/ programs/ airports/standards.htm	Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.

 

Table 7-B: 2006-07 External Fee Reporting: Policy on Service Standards for External Fees (continued…)

A. External Fee	Service Standard1	Performance Result1	Stakeholder Consultation
Airports - Annual Registration of Mobile Equipment used at Airports	http://www.tc.gc.ca/ programs/airports/standards.htm	http://www.tc.gc.ca/ programs/airports/standards.htm	Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.
Airports - Vehicle Parking Charges	http://www.tc.gc.ca/ programs/airports/standards.htm	http://www.tc.gc.ca/ programs/airports/standards.htm	Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.
Ports - Public Port Revenues: Utility Charges, Wharfage, Berthage, Storage and Harbour Dues	http://www.tc.gc.ca/ /programs/ports/standards.htm	http://www.tc.gc.ca/ /programs/ports/standards.htm	Letters to the industry were mailed out on January 27, 2006 with a 30 day comment periods until February 28, 2006. Stakeholder feedback was managed through existing channels. Stakeholder relationships are important and valued. There are no outstanding issues for stakeholders
Permits for Vehicles used for the Transportation of Explosives3	95 per cent of the time, will deliver: a) a decision accepting or rejecting a complete new factory application within 60 days after receipt, and b) a decision accepting or rejecting any other type of complete application within 30 days after receipt.	service standard met 100 per cent of time service standard met 100 per cent of time	Consultations with stakeholders were successfully undertaken by Natural Resources Canada (NRCan) in 1993
Access to Information Requests - Fees4	Service standards are in the Access to Information Act, Section 7: http://www.laws.justice.gc.ca/ en/showdoc/cs/A-1/bo-ga:s_4-gb:s_6//en#anchorbo-ga:s_4-gb:s_6	Statutory deadlines have been met for 82 per cent of requests. 100 per cent of extension notices were sent within 30 days following the receipt of the request. 100 per cent of transfer notices were sent within 15 days.	The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.
B. Other Information5: In addition to complaint mechanism included in various Acts and Regulations (eg Access to Information and Privacy requests http://www.laws.justice.gc.ca/en/showdoc/cs/A-1/bo-ga:s_30//en#anchorbo-ga:s_30), several complaint mechanisms have been developed and implemented for service standards related to user fees at public ports http://www.tc.gc.ca/Programs/Ports/standards.htm and Transport Canada operated airports http://www.tc.gc.ca/programs/airports/standards.htm, for the Canadian Aviation Regulations (Civil Aviation Issues Reporting System (CAIRS) http://tcinfo/CivilAviation/ManagementServices/QA/cairs.htm. A complaint mechanism policy "Handling of Complaints Related to Marine Safety user Fees and Applicable Service Standards" is now available on the web at: http://www.tc.gc.ca/marinesafety/service-standards/handling-complaints.htm

The Internet links in this report may change following publication, since the various websites are updated regularly.

Notes:

1. As established pursuant to the Policy on Service Standards for External Fees:

• - service standards may not have received parliamentary review; and
• - service standards may not respect all performance standard establishment requirements under the User Fees Act (UFA) (e.g. international comparison; independent complaint address).
• - Performance results are not legally subject to section 5.1 of the UFA regarding fee reductions for unachieved performance.

2. Aviation Safety - Regulatory Fees: Revision to standards, performance measurement is ongoing with the National Working Group on Services Standards.

A Pilot Project is currently in place in the Ontario Region to introduce ccmMercury as a possible tool to electronically manage, track and improve Civil Aviation's administrative and program related work processes. This project includes the development of methods and mechanisms to measure and report on service level performance including in those areas where regulatory fees are charged. Prototype testing is in place since April 2007 and will be finalized in Fall 2007. Recommendations will be made to Transport Canada Civil Aviation (TCCA) Authority for regional and national deployment.

3. Permits for vehicles used for the Transportation of Explosives: Natural Resources Canada has entered into an agreement with Transport Canada for the issuance of these permits. Amendments to the Transportation of Dangerous Goods Regulations, which will abolish this permit program, are forecast to come into effect in early 2008.

4. Access to Information Requests - Fees: The Access to Information Act has provisions to waive fees.

5. Main achievement in improving service - In 2006 and 2007, Transport Canada in its commitment to provide quality services and client satisfaction, has also implemented dispute mechanisms that apply to services, use of facilities and provision of goods for which user fees are charged. This initiative ensures that stakeholders' concerns & complaints are handled immediately and redress mechanisms undertaken as appropriate. Internet web site links to various dispute mechanisms are identified under "Other Information" in the two Tables for User fee (Table 7-A) and External Fee reporting (Table 7-B).

Table 8: Progress Against the Department's Regulatory Plan

Supplementary information on the Progress Against the Department's Regulatory Plan can be found at: http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 9: Details on Transfer Payments Programs (TPPs)

In 2006-07, Transport Canada administered the following transfer payment programs (TPP) in excess of $5 million:

1. Grant to Province of British Columbia in respect of the provision of ferry and coastal freight and passenger services

2. Payments in support of crossing improvements approved under the Railway Safety Act

3. Marine Security Contribution Program

4. Contribution for ferry and coastal passenger and freight services

5. Strategic Highway Infrastructure Program:

• Highway component
• Border Crossing Transportation Initiative
• Transportation Planning and Modal Integration initiative
• Intelligent Transportation System Component

6. Outaouais Road Development Agreement

7. Contribution in support of the divestiture of the non-National Airport System airports

8. Airports Capital Assistance Program

9. Contribution Program for operating, capital and start-up funding requirement for Regional and Remote Passenger Rail Services

10. Northumberland Strait Crossing subsidy payment under the Northumberland Strait Crossing Act (Statutory)

11. Urban Transportation Showcase Program

12. Climate Change: Emission Reduction Package - non-roads freight initiatives

13. Payment to the Canadian Wheat Board for the acquisition and leasing of hopper cars of the transportation of grain in Western Canada

14. Port Divestiture Fund

Supplementary information on transfer payment programs can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 10:  Horizontal Initiatives

In 2006-07, Transport Canada was involved in the following horizontal initiatives as either the lead or as a partner:

1. Asia-Pacific Gateway and Corridor Initiative (lead)

2. Marine Security (lead)

3. Canada Strategic Infrastructure Fund (partner)

4. Border Infrastructure Fund (partner)

5. Mackenzie Gas Project and induced oil and gas exploration and development activities in the Northwest Territories (partner)

Note:

The Asia-Pacific Gateway and Corridor Initiative was not listed in the Report on Plans and Priorities 2006-07 as a horizontal initiative. Based on criteria identified in the Guide to the Preparation of Part III of the 2006-07 Estimates from the Treasury Board Secretariat, it was determined that inclusion in the 2006-07 Departmental Performance Report is appropriate.

Supplementary information on horizontal initiatives can be found at http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp.

Table 11:  Financial Statements of Transport Canada (Unaudited)

Financial Statements of

 

Transport Canada
(Unaudited)

 

For the year ended March 31, 2007

 

TRANSPORT CANADA

STATEMENT OF MANAGEMENT RESPONSIBILITY

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

The financial statements of the department have not been audited.

 

 

Louis Ranger, Deputy Minister Ottawa, Canada August 10th, 2007

André Morency, Senior Financial Officer Ottawa, Canada August 10th, 2007

 

Transport Canada

Statement of Operations
(Unaudited)

For the Year Ended March 31

	2007	2006 (restated)
	($ thousands)
Expenses (Note 6):
Infrastructure	$ 649,489	$ 867,872
Safe and secure transportation	621,649	575,412
Sustainable development	99,983	41,808
Ship-Source Oil Pollution Fund and other programs (Note 17)	1,152	638
Total expenses	1,372,273	1,485,730
Revenues (Note 7):
Infrastructure	352,726	368,956
Safe and secure transportation	66,327	55,144
Sustainable development	744	68
Ship-Source Oil Pollution Fund and other programs (Note 17)	14,108	12,360
Total revenues	433,905	436,528
Net cost of operations	$ 938,368	$ 1,049,202

The accompanying notes form an integral part of these financial statements

 

2007 2006 (restated)   ($ thousands)   Assets: Financial assets: Accounts receivable and advances (Note 8) $ 33,683 $ 34,196 Loans receivable (Note 9) 11,316 10,771 Rent receivable (Note 10) 64,073 70,928 Investments (Note 11) 52,792 10,300   Total financial assets 161,864 126,195   Non-Financial assets: Prepaid expenses 1,419 1,684 Inventory 53,854 56,945 Tangible capital assets (Note 12) 3,063,410 3,234,944   Total non-financial assets 3,118,683 3,293,573   Total $ 3,280,547 $ 3,419,768     Liabilities and Equity of Canada Liabilities: Accounts payable and accrued liabilities (Note 13) $ 691,222 $ 689,805 Vacation pay and compensatory leave 29,372 27,596 Employee severance benefits (Note 14) 79,432 73,716 Deferred revenue 3,664 3,449 Lease obligations for tangible capital assets (Note 15) 668,565 682,660 Environmental liabilities (Note 16) 186,815 149,670   Total liabilities 1,659,070 1,626,896   Equity of Canada (Note 17) 1,621,477 1,792,872     Total   $ 3,280,547 $ 3,419,768

Contingent liabilities (Note 16)

Contractual obligations (Note 18)

The accompanying notes form an integral part of these financial statements.

 

	2007	2006 (restated)
	($ thousands)
Equity of Canada, beginning of year	$ 1,792,872	$ 2,245,638
Net cost of operations	(938,368)	(1,049,202)
Current year appropriations used (Note 5a)	701,655	874,877
Revenues not available for spending	(66,369)	(58,007)
Refund of previous years' expenses	(425)	(8,766)
Change in net position of the Consolidated Revenue Fund (Note 5c)	63,581	(271,386)
Services provided without charge by other departments (Note 19)	68,531	59,718
Equity of Canada, end of year	$ 1,621,477	$ 1,792,872

The accompanying notes form an integral part of these financial statements.

 

	2007	2006 (restated)
	($ thousands)
Operating activities:
Net cost of operations	$ 938,368	$ 1,049,202
Adjustment for items not affecting cash:
Non-cash items:
Amortization of tangible capital assets	(182,113)	(180,644)
Services provided without charge by other departments (Note 19)	(68,531)	(59,718)
Loss on disposals and write-downs of tangible capital assets	(72,023)	(53,072)
Allowance for environmental and contingent liabilities	49,326	20,326
Provision for valuation of loans and investments	-	(20,603)
Prior years' work-in-progress expensed	(3,630)	(9,045)
Employee severance benefits	(5,717)	(9,011)
Other	12,377	(1,396)
Variations in Statement of Financial Position:
Decrease (increase) in liabilities	(89,878)	(272,646)
Increase (decrease) in financial assets	35,669	6,479
Increase (decrease) in inventory and prepaid expenses	(3,356)	(7,050)
Cash used by operating activities	610,492	462,822
Capital investment activities:
Principal repayment of tangible capital leases	14,095	13,481
Acquisitions of tangible capital assets	89,804	66,437
Transfer of tangible capital assets with no monetary impact	(8,747)	-
Proceeds from disposal of tangible capital assets	(7,202)	(6,022)
Cash used by capital investment activities	87,950	73,896
Financing activities:
Net cash provided by Government of Canada	$ (698,442)	$ (536,718)

The accompanying notes form an integral part of these financial statements.

 

1. Authority and objectives:

Transport Canada is a department of the Government of Canada named in Schedule 1 of the Financial Administration Act and reports to Parliament through the Minister of Transport, Infrastructure and Communities.

• Transport Canada is responsible for the transportation policies, programs and goals set by the Government of Canada, which are supported through the following departmental programs:Infrastructure: Contributes to Canada's international competitiveness, productivity, and overall quality of life in urban, rural or remote areas through strategic investments in areas that directly support federal priorities, improving governance of transportation infrastructure providers, divestiture of federal assets to parties that are better placed to manage them, continued support to federally-dependent facilities and landlord of substantial land assets.
• Safe and secure transportation: Promotes the safety of Canada's transportation system consisting of the air, marine, rail, and road modes of transportation through policy development, rule-making, monitoring and enforcement and outreach activities to ensure the protection of people from accidents and exposure to dangerous goods, enable the efficient flow of people and goods, and protect the environment from pollution.
• Sustainable development: Develops and implements programs and policies in support of sustainable development to protect the natural environment and to achieve a more sustainable transportation system in Canada.

Transport Canada delivers its programs and services under numerous legislative and constitutional authorities including the Department of Transport Act, Canada Transportation Act, Aeronautics Act, Canada Marine Act, Canada Shipping Act, Navigable Waters Protection Act, Railway Safety Act, Transportation of Dangerous Goods Act, Motor Vehicle Safety Act, Canadian Air Transport Security Authority Act and Marine Transportation Security Act.

2. Summary of significant accounting policies:

The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations - Transport Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the department do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net Cash Provided by Government - Transport Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the department is deposited to the CRF and all cash disbursements made by the department are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

(c) Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues:

• Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
• Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
• Revenues that have been received but not yet earned are recorded as deferred revenues.

(e) Expenses - These are recorded when the underlying transaction or expense occurred subject to the following:

• Grants are recognized in the year in which the conditions for payment are met. In the case of grants, which do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, worker's compensation, and legal servicesare recorded as operating expenses at their estimated cost.

(f) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The department's contributions to the plan are charged to expenses in the year incurred and represent the total departmental obligation to the plan. Current legislation does not require the department to make contributions for any actuarial deficiencies of the plan.
• Severance benefits: Employees are entitled to severance benefits, as provided for under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts receivables from external parties are stated at amounts expected to be ultimately realized; a provision is made for external receivables where recovery is considered uncertain.

(h) Loans receivable are recorded at cost. They are written down to their net present value to reflect concessionary terms using market rates at the time of the loans. Loan discounts are amortized over the term of the loans. A provision is made for loans where recovery is considered uncertain.

(i) Investments in Crown corporations are recorded at cost. If there is a permanent impairment in value, an allowance is recorded to reduce the carrying value of the investment to a nominal amount.

(j) Contingent liabilities - Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statement.

(k) Environmental liabilities - Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.

(l) Inventories - Inventories consist of spare parts, material, supplies and publications held by the Department. Inventories, other than serialized inventory items or rotable parts, are valued at average cost. Serialized inventory items and rotable parts are valued on a specific cost basis. A serialized inventory itemis consumable inventory, which has a serial number and is required to be tracked for airworthiness purposes. A rotable partis a part that is not fully consumed during use and where part or all of the economic value is restored through refurbishment after use. Rotable parts are returned to stock for future consumption after refurbishment. Inventories with no further service potential, are valued at the lower of cost or net realizable value.

(m) Foreign currency transactions - Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on March 31, 2007. Losses resulting from foreign currency transactions are included in miscellaneous expenses on the statement of operations.

(n) Tangible capital assets - All tangible capital assets and leasehold improvements having an initial cost of $10,000or more are recorded at their acquisition cost.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the assets as follows:

Asset type	Amortization period
Confederation Bridge:		100 years
Buildings and works:
Buildings		20 to 40 years
Works and Infrastructure		10 to 40 years
Machinery and equipment:
Machinery and equipment		5 to 20 years
Informatics hardware		3 to 5 years
Informatics software		3 years
Vehicles:
Ships and boats		10 to 20 years
Aircraft		6 to 20 years
Motor vehicles		6 to 35 years
Leasehold improvements		According to the lease terms
Leased tangible capital assets:
Leased material and equipment		According to the useful life of the asset if a bargain purchase offer exists or over the term of the lease

(o) Measurement uncertainty --The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Change in accounting policy

During the period, Transport Canada has adopted a change in accounting policy regarding capital assets to more accurately reflect the economic value of these assets in the department's financial records. These changes were applied retroactively with restatement of prior periods.

Aircraft rotable parts with a historical cost of $10,000 or more and a useful life extending over one year have been reclassified from inventory to capital assets. Any betterments to the aircraft rotable parts which had previously been expensed as repairs and maintenance have also been reclassified as capital assets.

The impact of these changes on the previously reported 2005-06 closing balances is presented in table below:

($ thousands)	As previously stated	Effect of the adjustment	Revised amount
Statement of Operations
Safe and secure transportation	574,181	1,231	575,412
Total expenses	1,484,499	1,231	1,485,730
Net cost of operations	1,047,971	1,231	1,049,202
Statement of Financial Position
Tangible capital assets	3,197,905	37,039	3,234,944
Inventory	97,830	(40,885)	56,945
Total of non-financial assets	3,297,419	(3,846)	3,293,573
Total assets	3,423,614	(3,846)	3,419,768
Equity of Canada	1,796,718	(3,846)	1,792,872
Statement of Equity of Canada
Equity of Canada, beginning of year	2,248,253	(2,615)	2,245,638
Net cost of operations	(1,047,971)	(1,231)	(1,049,202)
Equity of Canada, end of year	1,796,718	(3,846)	1,792,872

 

4. Change in accounting estimates

Effective February 2007, Transport Canada has re-evaluated the estimated useful lives of it's aircrafts and it's aircraft engines. The useful life of the aircraft and aircraft engines now range from 6-20 years, previously 15 years, based on management experience and changes in technologies. As a result of this change in estimated useful life, amortization expense included in the statement of operations has increased by $ 824,306.

5. Parliamentary appropriations

Transport Canada receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the department has different net results of operations for the year on a government-funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used:

2007	2006
($ thousands)

Net cost of operations	$ 938,368	$ 1,049,202
Adjustments for items affecting net cost of operations but not affecting appropriations
Add (Less):
Revenues not available for spending	66,369	58,007
Refunds of previous years' expenses	425	8,766
Amortization of tangible capital assets	(182,113)	(180,644)
Variation in vacation pay and compensatory leave	(1,776)	(3,037)
Loss on disposals and write-downs of tangible capital assets	(72,023)	(53,072)
Other	12,377	(1,396)
Provision for valuation of loans and investments	-	(20,603)
Allowance for environmental and contingent liabilities	49,326	20,326
Prior years' work-in-progress expensed	(3,630)	(9,045)
Employee severance benefits	(5,717)	(9,011)
Justice Canada legal fees	(6,455)	(5,167)
Services provided without charge by other government departments	(68,531)	(59,718)
	(211,748)	(254,594)

5. Parliamentary appropriations (cont'd)

(a) Reconciliation of net cost of operations to current year appropriations used (cont'd):

Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
Variation in prepaid expenses	(265)	(821)
Acquisitions of tangible capital assets	89,804	66,437
Transfer of tangible capital assets with no monetary impact	(8,747)	-
Decrease in inventory	(3,091)	(6,229)
Payments of capital lease	14,095	13,481
Other	(116,761)	7,401
	(24,965)	80,269
Current year parliamentary appropriations used	$ 701,655	$ 874,877

 

(b) Appropriations provided and used:

	2007	2006
	($ thousands)
Appropriations provided
Vote 01 - Operating expenditures	$ 301,080	$ 291,871
Vote 05 - Capital expenditures	79,124	74,790
Vote 10 - Transfer payments	297,173	429,626
Statutory amounts	146,853	152,651
Less:
Appropriations available for future years	(1,369)	(963)
Lapsed appropriations: Operating	(121,206)	(73,098)
Current year appropriations used	$ 701,655	$ 874,877

5. Parliamentary appropriations (cont'd)

(c) Reconciliation of net cash provided by Government to current year appropriations used:

	2007	2006
($ thousands)
Net cash provided by Government	$ 698,442	$ 536,718
Revenues not available for spending	66,369	58,007
Refund of previous years' expenses	425	8,766
Change in net position in the Consolidated Revenue Fund:
Justice Canada legal fees	(6,455)	(5,167)
Variation in financial assets	(35,669)	(6,479)
Variation in liabilities	88,102	269,609
Proceeds of disposal	7,202	6,022
Other adjustments	(116,761)	7,401
	(63,581)	271,386
Current year appropriations used	$ 701,655	$ 874,877

6. Expenses

The following table presents details of expenses by category:

2007		2006
($ thousands)
Other levels of governments within Canada	$ 165,452		$ 231,550
Non-profit organizations	38,183		136,678
Industry	46,282		66,215
Individuals	741		798
Other countries and international organizations	130		-
Total transfer payments	$ 250,788		$ 435,241

6. Expenses (cont'd)

Salaries and employee benefits	$ 486,951	$ 471,038
Amortization of tangible capital assets	182,113	180,644
Professional and special services	192,938	107,577
Net loss on disposal of tangible capital assets	60,315	52,549
Interest on capital lease	40,161	40,170
Travel and relocation	35,932	33,895
Equipment repair and maintenance	36,362	46,509
Accommodation (Note 19)	25,560	23,693
Utilities, materials and supplies	19,808	26,605
Telecommunications	7,470	7,373
Payments in lieu of taxes	6,958	6,833
Information services - communications	9,244	5,698
Rentals	5,227	4,528
Damage and other claims against the Crown	1,427	38,394
Postage	3,584	3,498
Miscellaneous	6,283	847
Pollution control (Note 17)	1,152	638
Total operating expenses	1,121,485	1,050,489
Total expenses	$ 1,372,273	$ 1,485,730

7. Revenues

The following table presents details of revenues by category:

	2007		2006
($ thousands)
Sales of goods and services:
Airport rent		$ 295,181		$ 295,941
Monitoring and enforcement revenues		36,010		39,934
Rentals and concessions		26,788		35,415
Aircraft maintenance and flying services		34,369		29,722
Transport facilities user fees		14,155		16,031
Miscellaneous		11,155		4,570
Research and development		1,497		1,757
Interest		642		798
Pollution control revenues (Note 17)		14,108		12,360
Total revenues		$ 433,905		$ 436,528

8. Accounts receivable and advances

The following table presents details of accounts receivable and advances:

2007	2006
($ thousands)

Accounts receivable from other government departments	$ 17,602	$ 13,709
Accounts receivable from external parties	25,440	28,982
Advances to employees	335	399
Less: allowance for doubtful accounts on external accounts receivable	(9,694)	(8,894)
Total accounts receivable and advances	$ 33,683	$ 34,196

9. Loans receivable

2007		2006
($ thousands)
St. John Harbour Bridge Authority	$ 22,647	$ 22,647
Canadian Airport Authorities	24,330	24,330
Victoria Harbour	2,451	2,536
St. Lawrence Seaway Management Corporation	168	179
Less:
Allowances on loans	(20,604)	(20,604)
Discounts on loans	(17,676)	(18,317)
Total Loans	$ 11,316	$ 10,771

(i) Saint John Harbour Bridge Authority:

The loan receivable from the Saint John Harbour Bridge Authority consists of consolidated non-interest bearing advances made in connection with the financing, construction and operation of a toll bridge across the harbour of Saint John, New Brunswick. Additional non-interest bearing advances may be made in years when the operating and financing costs of the toll bridge exceeds its revenues. Where the revenue for the year exceeds the operating and financing costs, the Saint John Harbour Bridge Authority will remit the excess funds to Transport Canada on an annual basis to repay the debt. A discount of $13,478,000 has been recorded to reflect the concessionary nature of the loan.

(ii) Canadian Airport Authorities:

Loans totalling $24,330,000 to Canadian Airport Authorities relate to the transfer of chattels and consumable stock to individual authorities upon transfer of the management, operation and maintenance responsibilities to the authority under the National Airports Policy. The loans receivable portfolio consists of 13 non-interest bearing loans to Canadian Airport Authorities issued in the years from 1997 to 2003, with prescribed annual repayment terms. The loans are recorded at their discounted net present values using market interest rates at the time of the loans. On May 9, 2005 the Government of Canada announced it would adopt a new rent relief policy for federally owned airports and in addition to the rent reductions, the government announced it would forgive outstanding chattels payments. As a result, an allowance for the full amount of the chattel loans was recorded.

(iii) Victoria Harbour:

The Victoria Harbour long-term receivable relates to the sale of a parcel of Victoria Harbour land for $2,578,469. The receivable has prescribed annual repayment terms and is recorded at its discounted net present value of $1,423,000 using the market interest rate at the time of sale. A payment of $85,440 was received in fiscal year 2006-07 ($42,720 in 2005-06).

(iv) St-Lawrence Seaway Management Corporation:

The St-Lawrence Seaway Management Corporation loan portfolio account was established by subsection 80(1) of the Canada Marine Act. The loan portfolio is managed in accordance with an agreement between Transport Canada and the St-Lawrence Seaway Management Corporation. The loan has prescribed monthly repayment terms with an annual interest rate of 7 per cent. The loan is secured by title on the property and partial discharge on the individual lots may be granted in the amount of $6,000. To date, three of the four loans have made full discharge. The mortgagor is in negotiations with Transport Canada and Justice Canada with respect to the remaining loan, which was repayable March 2004.

10. Rent receivable:

The National Airport System (NAS) consists of 25 Canadian airports considered essential to air transportation in Canada, including 3 airports owned by Territorial Governments. Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities (21) and a municipal government (1).

In fiscal year 2003-04, Transport Canada entered into lease amendments with nine of the Canadian Airport Authorities, which provided for deferral of a portion of the airport rent payable by the Airport Authorities to Transport Canada for the 2003 to 2005 lease years. The total rent deferred for 2003 to 2005 is payable to Transport Canada over ten years beginning in the 2006 lease year. Repayments of $6,855,098 were received in fiscal year 2006-07 ($1,832,000 in 2005-06). Rent receivable was $64,072,699 at March 31, 2007 ($70,927,797 at March 31, 2006).

11. Investments

2007		2006
($ thousands)
Royal Canadian Mint	$ 40,000	$ -
Via Rail Canada Inc.	9,300	9,300
Downsview Park	2,492	-
Ridley Terminals Inc.	90,000	90,000
Less: Allowance for valuation	(89,000)	(89,000)
Total Investments	$ 52,792	$ 10,300

(i) Royal Canadian Mint:

As a result of Government restructuring, the Royal Canadian Mint was transferred from the Canada Revenue Agency to Transport Canada. The investment of $40,000,000 is divided into four thousand shares of ten thousand dollars each.

(ii) Via Rail Canada Inc:

In fiscal year 1979-80, non-budgetary authority was granted to purchase common shares of Via Rail Canada Inc. to be valued at $100 per share for a total value of $9,300,000.

(iii) Downsview Park Inc:

Investment in Parc Downsview Park Inc. for the purpose of allowing the completion of the transfer of lands from National Defence to Parc Downsview Park Inc.

(iv) Ridley Terminals Inc:

On November 1, 2000, the shares of Ridley Terminals Inc. owned by Canada Ports Corporation were transferred to the Crown under the administration of Transport Canada. Due to concerns regarding the viability of Ridley Terminals Inc., for prior years, the investment in Ridley Terminals has been written-down to a nominal value in Transport Canada's financial statements.

12. Tangible capital assets:

	Cost				Accumulated Amortization				2007 Net book value	2006 Net book value
($ thousands)	Opening balance	Acquisitions	Disposals and write-offs	Closing balance	Opening balance	Amortization	Disposals and write-offs	Closing balance
Land (1)	$ 198,586	$ 8,747	$ 9,333	$ 198,000	$ -	$ -	$ -	$ -	$ 198,000	$ 198,586
Buildings and works (2)	4,034,937	6,655	163,706	3,877,886	2,149,455	122,192	99,865	2,171,782	1,706,104	1,885,482
Machinery and equipment (3)	181,401	820	2,041	180,180	97,495	17,357	2,052	112,800	67,380	83,906
Vehicles	797,014	18,864	30,974	784,904	554,295	33,042	27,555	559,782	225,122	242,719
Leasehold improvements	13,635	531	-	14,166	5,346	1,334	-	6,680	7,486	8,289
Work-in-progress	69,471	54,187	2,643	121,015	-	-	-	-	121,015	69,471
Confederation Bridge	818,820	-	-	818,820	72,329	8,188	-	80,517	738,303	746,491
TOTAL	$ 6,113,864	$ 89,804	$ 208,697	$ 5,994,971	$ 2,878,920	$ 182,113	$ 129,472	$ 2,931,561	$ 3,063,410	$ 3,234,944

Amortization expense for the year ended March 31, 2007, is $182,113 (2006 - $180,644).

⁽¹⁾ Includes land for 22 National Airports with a net book value of $131,743 (2006 - $131,743).

⁽²⁾ Includes building and works for 22 National Airports with a net book value of $941,913 (2006 - $1,088,739).

⁽³⁾ Includes machinery and equipment for 22 National Airports with a net book value of $294 (2006 - $317).

The National Airport System assets (NAS) recorded above consist of the land, buildings, works and infrastructures of 22 Canadian airports.

Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities (21) and a municipal government (1). These agreements are in accordance with the federal National Airports Policy, the Public Accountability Principles for Canadian Airport Authorities and the Fundamental Principles for the Creation and Operations of Canadian Airport Authorities, which, in part, entails the transfer of the management, operations and maintenance of certain airports in Canada to Canadian Airport Authorities.

Transport Canada has the right to terminate the operating agreements and assume the responsibility for the management, operation and maintenance of the airport if the leased airports are not operated in accordance with the terms of the respective operating agreements and the Policies and Principles referred to above.

13. Accounts payable and accrued liabilities

2007		2006
($ thousands)
Payables to third parties	$ 563,706		$ 566,566
Payables to other government departments	60,231		69,041
Accrued salaries	17,200		15,589
Other accounts payable and accrued liabilities	50,085		38,609
Total accounts payable and accrued liabilities	$ 691,222		$ 689,805

14. Employee Benefits

(a) Pension benefits: The department's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the department contribute to the cost of the plan. The 2006-07 expense amounts to 57,385,000 ($58,770,000 in 2005-06), which represents approximately 2.2 times (2.6 times in 2005-06) the contributions by employees.

The department's responsibility with regard to the plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the plan's sponsor.

(b) Employee severance benefits: The department provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

	2007	2006
($ thousands)
Accrued benefit obligation, beginning of year	$ 73,716	$ 64,705
Expense for the year	13,080	14,435
Benefits paid during the year	(7,364)	(5,424)
Accrued benefit obligation, end of year	$ 79,432	$ 73,716

15. Lease obligations for tangible capital assets

Under the Northumberland Strait Crossing Act, the Government of Canada entered into a long-term capital lease arrangement in 1992 and is obligated to pay an annual subsidy of $41,900,000 to the Strait Crossing Finance Inc., a wholly owned corporation of the Province of New Brunswick, for the construction of the Confederation Bridge. The annual payments made by Transport Canada are due on April 1 and will be used to retire $661,000,000 of 4.5 per cent real rate bonds issued in October 1993 by Strait Crossing Finance Inc. to finance the construction of the bridge. Annual payments made by Transport Canada began in 1997 and will continue until 2033. At such time, the ownership of the bridge will be transferred to the Government of Canada.

On April 1, 2006, an annual payment in the amount of $ 54,265,000 (2006 - $52,790,000) was made. This payment represents payment of principal in the amount of $ 14,095,000 (2006 - 13,480,721) and interest expense of $ 40,170,000 (2006 - $39,309,279).

The department has recorded a capital lease obligation of $ 668,565,000 as of March 31, 2007 (682,660,000 at March 31, 2006), based on the present value for the future subsidy payments using an interest rate of 6.06265 per cent (2006 - 6.1605 per cent).

Future minimum annual lease payments are as follows:

Maturing year	2007	2006
($ thousands)
2006-2007	$ -	$ 54,265
2007-2008	54,897	52,558
2008-2009	53,352	53,352
2009-2010	54,158	54,158
2010-2011	54,976	54,976
2011-2012	55,807	1,379,736
2012-2013 and thereafter	1,323,929	-
Total future minimum lease payments	1,597,119	1,649,045
Less: imputed interest	928,554	966,385
Balance of obligations under leased tangible capital assets	$ 668,565	$ 682,660

16. Contingent liabilities

(a) Contaminated sites

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where Transport Canada is obligated or likely to be obligated to incur such costs. The departmenthas identified approximately 568 sites (571 sites in 2006) where such action is possible and for which a liability of $186,814,790 ($149,670,000 in 2006) has been recorded. The departmenthas estimated additional clean-up costs of $139,108,000 ($154,427,000 in 2006) that are not accrued, as these are not considered likely to be incurred at this time. Transport Canada's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the departmentin the year in which they become known.

(b) Claims and litigation

Claims have been made against Transport Canada in the normal course of operations. Legal proceedings for claims totalling approximately $40,411,500 ($37,500,000 in 2006) were still pending at March 31, 2007. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

Transport Canada is named as a defendant in a claim for $330,000,000 filed by the Mohawks of Akwesasne. The action was first initiated in 1976 for unlawful expropriation and breach of fiduciary duty regarding the expropriation of land in the 1950's for the construction of the St Lawrence Seaway and of the Seaway International Bridge. The outcome of this claim is not determinable at this time. No accrual for this contingency has been made in the financial statements.

17. Restricted equity of Canada

The department includes in its revenues and expenses certain transactions that legislation requires be earmarked for expenses relating to a specified purposes. The department has two such accounts:

(a) The Ship-Source Oil Pollution Fund (Fund) was established pursuant to section 702 of the Canada Shipping Act, to record levy tonnage payments for oil carried by ships in Canadian waters. Maritime pollution claims, the fee of the fund administrator, and related oil pollution control expenses, are financed out of the Fund.

2007		2006
($ thousands)
Restricted Ship-source Oil Pollution:
Balance, April 1, 2006	$ 350,843		$ 339,109
Revenues	14,092		12,316
Expenses	(1,152)		(582)
Balance, March 31, 2007	$ 363,783		$ 350,843

(b) The Fines for Transport of Dangerous Goods account was established pursuant to the Transportation of Dangerous Goods Act 1992 and related regulations to record fines levied by courts.

2007		2006
($ thousands)
Restricted - Fines for Transport of Dangerous Goods:
Balance, April 1, 2006	$ 599		$ 611
Revenues	16		44
Expenses	-		(56)
Balance, March 31, 2007	615		599
Restricted equity of Canada	$ 364,398		$ 351,442

18. Contractual obligations

The nature of Transport Canada's activities results in some large multi-year contracts and obligations whereby the department will be committed to make some future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

($ thousands)	2007-08	2008-09	2009-10	2010-11	2011-12	Thereafter	Total
Transfer payments	$ 298,255	$ 267,655	$ 184,016	$ 186,078	$ 327,853	$ 71,376	$ 1,335,233
Tangible capital assets	12,972	1,076	600	-	-	-	14,648
Other goods and services	15,141	3,103	2,017	-	-	-	20,261
Software maintenance agreements	3,291	-	-	-	-	-	3,291
Operating leases	2,401	610	-	-	-	-	3,011
Other	1,367	-	-	-	-	-	1,367
Total	$ 333,427	$ 272,444	$ 186,633	$ 186,078	$ 327,853	$ 71,376	$ 1,377,811

19. Related party transactions:

Transport Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The department enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, Transport Canada received services, which were obtained without charge from other Government departments as presented below.

Services provided without charge:

During the year Transport Canada received without charge from other departments, accommodation, the employer's contribution to the health and dental insurance plans, worker's compensation, and legal services. These services without charge have been recognized in the department's Statement of Operations as follows:

2007		2006
($ thousands)
Accommodation provided by Public Works and Government Services Canada	$ 25,560	$ 23,693
Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat	30,631	28,879
Worker's compensation cost provided by Human Resources and Skills Development Canada	3,802	4,247
Legal services provided by department of Justice	8,538	2,899
Total	$ 68,531	$ 59,718

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the department 's Statement of Operations.

20. Comparative information:

Comparative figures have been reclassified to conform to the current year's presentation.

Table 12:  Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07

Response to Parliamentary Committees
Manufacturing: Moving Forward - Rising to the Challenge Report The department responded to the Report recommendations 15 through 17. http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=10476&Lang=1&SourceId=211230
Response to the Auditor General including to the Commissioner of the Environment and Sustainable Development (CESD)
May 2006 Auditor General's Report Chapter 1 - Managing Government - Financial Information http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20060501ce.html This audit is part of a series of audits that assessed financial control systems and processes in federal government departments and agencies, and included several departments. In this audit, the OAG assessed the extent to which departments and agencies addressed the key internal financial control weaknesses identified in the OAG's previous audits. No audit observations or recommendations were made regarding Transport Canada. 2006 Report of the Commissioner of the Environment and Sustainable Development Chapter 4 - Sustainable Development Strategies http://www.oag-bvg.gc.ca/domino/reports.nsf/html/c20060904ce.html In this audit, the Commissioner of the Environment and Sustainable Development examined the progress made by federal departments and agencies toward meeting selected commitments made in their sustainable development strategies. This audit included a number of federal government departments and agencies. No audit recommendations were directed at Transport Canada. Chapter 8 - Environmental Petitions http://www.oag-bvg.gc.ca/domino/reports.nsf/html/c20050908ce.html The objective of this audit was to inform Parliament and Canadians on the use of the petitions process and the Commissioner's monitoring of commitments and statements made in response to specific petitions. This audit included a number of federal government departments and agencies. No audit recommendations were directed at Transport Canada.

Table 12: Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07 (continued)

External Audits by the Public Service Commission or the Office of the Commissioner of the Official Languages or the Official Languages Branch of the Public Service Human Resources Management Agency).
Public Service Commission Audit of Acting EX Appointments - October 2006 http://www.psc-cfp.gc.ca/audit-verif/reports/2006/acting/index_e.htm The objectives of this audit were to: (i) determine the extent to which acting EX appointment decisions respected the merit principle of the previous Public Service Employment Act (PSEA), related legislation, regulations and policies, and staffing values; and (ii) assess the effectiveness of departmental staffing management frameworks governing acting appointments for periods greater than four months to the EX Group and six months within the EX Group. The audit covered acting EX appointments in fiscal years 2002-03 and 2003-04. Transport Canada was one of several departments included within the audit scope. The audit noted where Transport Canada complied with the relevant legislation, regulations, and policies under the former Public Service Employment Act. In addition, the audit noted that Transport Canada implemented a number of good practices, which were consistent with the objectives and principles of the former legislation. Although no audit recommendations were directed at Transport Canada, the department provided a response and has taken action in some areas to strengthen its documentation processes and meet the new legislative and policy requirements.
Internal Audits
Internal audits approved by Transport Canada's Audit and Review Committee in 2006-07: Audit of Inspection Standardization Practices - Transport of Dangerous Goods Audit of Inspection Standardization Practices - Marine Safety Audit: Rail Safety Inspection Standardization Practices Audit of Overtime and Extra-Duty Compensation in Transport Canada Audit of Revenue and Recoveries - Follow-Up on the Recurring Pilot Fees - Implementation of Recommendations included in the June 2000 Audit Report Audit of Revenue and Recoveries from Other Government Departments (OGDs) - Aircraft Services Component Audit of Revenue and Recoveries - Follow-Up on the Implementation of Recommendations - Audit of the Contribution Agreement with the Canadian Wheat Board Governing the Leasing of Grain Hopper Cars July 2001 Audit of Revenue and Recoveries from Other Government Departments (OGDs) - Registrar of Imported Vehicles Program Component More information is available at: http://www.tc.gc.ca/corporate-services/audit/menu.htm

Table 12: Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07 (continued)

Internal Evaluations
Internal evaluations completed by Departmental Evaluation Services in 2006-07: Evaluation of Transport Canada's Marine Security Initiatives Evaluation of the Strategic Highway Improvement Program (SHIP) Evaluation of Direction 2006 More information is available at http://www.tc.gc.ca/programevaluation/reports/menu.htm

Table 13:  Sustainable Development Strategies (SDS)

Department: Transport Canada
Points to Address	Departmental Input
1. What are the key goals, objectives, and/or long-term targets of the SDS?	Transport Canada has structured its Sustainable Development Strategy action plan around seven strategic challenges: Encourage Canadians to make more sustainable transportation choices Enhance innovation and skills development Increase system efficiency and optimize modal choices Enhance efficiency of vehicles, fuels, and fuelling infrastructure Improve performance of carriers and operators Improve decision-making by governments and the transportation sector Improve management of Transport Canada operations and lands. Each strategic challenge is defined within the strategy and the 2007-2009 SDS also includes long-term objectives for each of the challenges.
2. How do your key goals, objectives and/or long-term targets help achieve your department's/agency's strategic outcomes?	Transport Canada's Sustainable Development Strategy is a departmental priority and involves a wide range of partners in an effort to promote a sustainable transportation system for Canada. The development and implementation of the strategy is a department-wide effort and the implementation of commitments and targets serve to contribute to: A safe and secure transportation system that contributes to Canada's social development and security objectives; An efficient transportation system that contributes to Canada's economic growth and trade objectives; and, An environmentally responsible transportation system that contributes to Canada's sustainable development objectives.

Table 13 Sustainable Development Strategies (SDS) (cont'd)

Department: Transport Canada
Points to address	Departmental Input
3. What were your targets for the reporting period?	The strategy identifies a total of 173 targets, which are reported on an annual basis. The 2007-2009 strategy includes the following five targets set to be completed by 2006-07: Studying the costs and benefits of enabling federal employees access to payroll-deducted transit programs across Canada by 2006-07 (Commitment 1.3). Develop and incorporate sustainable transportation evaluation criteria and performance indicators into new transportation infrastructure programs by 2006-07 (Commitment 3.3). Completion of shipper modal choice model (development and calibration) by 2006-07 (Commitment 3.5). In 2006-07, Transport Canada will develop a database of activity, fuel use and greenhouse gas emissions per mode for all modes of transportation. This database will enable the identification of data gaps, and areas for further work to address data gaps (Commitment 6.1). In the context of the Canada Transportation Actamendments, proposed amendments to the data provisions to improve the data gathering quality by 2006-07 (Commitment 6.1). In addition, the 2007-2009 strategy includes targets that are ongoing: Evaluate the performance of advanced technology vehicles on an annual basis (Commitment 4.1). Conduct activities to raise public awareness on an annual basis that also allows program information to be disseminated (Commitment 4.1). Collect, verify and report on fuel consumption of new vehicles, on an annual basis (Commitment 4.2). Maintenance of the Vehicles Fuel Economy (VFEIS) database, on an ongoing basis (Commitment 4.2). Work with the Railway Association of Canada and Environment Canada to fully implement the commitments negotiated under the Memorandum of Understanding between 2006-07 and 2009-2010 (Commitment 4.3). Continue to increase the effectiveness of the National Aerial Surveillance Program (NASP) by increasing the frequency of patrols and expanding surveillance to areas not normally patrolled, such as the Arctic (Commitment 5.2).
4. What is your progress to date?	The 2005-2006 Progress Report indicates that close to 80 per cent of the targets for the 2004-2007 SDS were reported to be either complete/ongoing or on-track. The 2006-07 Progress report is currently being developed. A detailed summary of the SDS Progress Report is compiled each year and posted online at http://www.tc.gc.ca/programs/Environment/SD/menu.htm
5. What adjustments have you made, if any?	In response to recommendations put forth by the Commissioner of the Environment and Sustainable Development, a goal for the 2007-2009 strategy was to streamline the process and focus on a smaller number of issues where Transport Canada can make a difference. The strategy includes less commitments that are more focused. When developing the strategy, the department chose three themes at the heart of sustainable development in order to focus its efforts: urban transportation; commercial freight transportation; and marine transportation. The SDS Fund (Commitment 6.3) has also been created as an internal source of funding which will allocate up to $1-million per year over three years for innovative projects that make significant contributions to sustainable transportation. Approved projects will be considered SDS commitments. In addition, for this fourth round of sustainable development strategies, the federal government has developed a set of six sustainable development goals related to Clean Water, Clean Air, Reducing Greenhouse Gas Emissions, Sustainable Communities, Sustainable Development and Use of Natural Resources, and Governance for Sustainable Development. Many of the commitments within the 2007-2009 strategy serve to support these goals.

 

Table 14:  Procurement and Contracting

Supplementary information on Procurement and Contracting can be found at

http://publiservice.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 15:  Client Centred Service

Supplementary information on Client Centred Service can be found at

http://publiservice.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 16:  Travel Policies

Transport Canada follows and uses Treasury Board Secretariat Travel policies.

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