This page has been archived.
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.
The Law Commission was an independent departmental corporation accountable to Parliament through the Minister of Justice. The Governor in Council appointed the President and four part-time Commissioners on the recommendation of the Minister for terms not exceeding five years. The Commission was supported by a small Secretariat headed by an Executive Director.
The Commission had an Advisory Council of up to 24 volunteers who reflected Canada's socio-economic and cultural diversity, and represented a broad range of disciplines. The Council provided advice on the Law Commission's strategic direction, long term research program, performance review and other relevant matters.
Study panels were appointed as needed to provide advice on specific research projects. Each panel was headed by a Commissioner and comprised volunteer experts from multiple disciplines and members of affected communities. To support the study panels, research contracts were awarded to recognized experts in the private sector and academia.
The financial statement of the Commission for the year ended March 31, 2007 are presented on the following pages.
2004-2005 | 2005-2006 | 2006-2007 | ||||
---|---|---|---|---|---|---|
Actual Spending | Actual Spending | Main Estimates | Planned Spending | Total Authorities | Actual Spending | |
Recommendations on Law Reform |
3,228
|
3,175
|
3,193
|
3,173
|
3,182
|
2,178
|
Less: Non-Respendable revenue |
-
|
-
|
n/a
|
-
|
n/a
|
-
|
Plus: Cost of services received without charge |
191
|
195
|
n/a
|
180
|
n/a
|
132
|
Total Commisison Spending
|
3,419
|
3,370
|
n/a
|
3,353
|
n/a
|
2,310
|
Full Time Equivalents
|
12
|
12
|
n/a
|
11
|
n/a
|
7
|
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006. |
2006-2007 | ||||
---|---|---|---|---|
Budgetary | ||||
Main Estimates | Planned Spending | Total Authorities | Actual Spending | |
Recommendations on Law Reform Operating |
3,193
|
3,173
|
3,182
|
2,178
|
Total Commission |
3,193
|
3,173
|
3,182
|
2,178
|
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006. |
Vote or Statutory Item | Truncated Vote or Statutory Wording | 2006-2007 | |||
---|---|---|---|---|---|
Main Estimates | Planned Spending | Total Authorities | Actual Spending | ||
35
|
Program expenditures | 3,020 | 3,000 | 3,027 | 2,023 |
(S)
|
Contributions to employee benefit plans | 173 | 173 | 155 | 155 |
Total Commission | 3,193 | 3,173 | 3,182 | 2,178 | |
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006. |
2006-2007 | |
---|---|
Accommodation provided by Public Works and Government Services Canada |
79
|
Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat |
53
|
Total 2006-2007 Services received without charge |
132
|
2006-2007 | ||
---|---|---|
Branches | Recommendations on Law Reform | |
Planned Spending | Actual Spending | |
Commissioners |
430
|
368
|
Administration |
868
|
778
|
Communications |
687
|
324
|
Research |
1,188
|
708
|
Total Commission |
3,173
|
2,178
|
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 Commission 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 fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission'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 Commission. The financial statements of the Commission have not been audited. Denis Pelchat |
For the year ended March 31 (in dollars) |
2007 | 2006 | |
---|---|---|---|
Recommendations on Law Reform
|
|||
Operating Expenses (note 1)
|
|||
Salaries and benefits |
839,731
|
1, 624,357
|
|
Professional services |
655,187
|
1,018,981
|
|
Rentals |
159,390
|
223,468
|
|
Travel |
116,999
|
251,242
|
|
Information |
111,735
|
142,122
|
|
Amortization of tangible capital assets |
73,577
|
107,459
|
|
Communication |
43,877
|
45,520
|
|
Utilities, materials and supplies |
14,306
|
19,771
|
|
Loss on write-off of tangible capital assets |
11,625
|
-
|
|
Repairs and maintenance |
9,944
|
19,061
|
|
Equipment expenses |
6,454
|
6,498
|
|
Miscellaneous |
27
|
44
|
|
Total Operating Expenses |
2,042,852 |
3,458,523 |
|
Revenues
|
|||
Miscellaneous revenues |
5
|
5
|
|
Net Cost of Operations |
2,042,847
|
3,458,518
|
|
The accompanying notes are an integral part of these financial statements. |
As at March 31 (in dollars) |
2007 | 2006 | |
---|---|---|---|
Assets
|
|||
Financial Assets | |||
Accounts receivable (note 4) |
18,280
|
5,142
|
|
Advances - petty cash |
-
|
1,000
|
|
Total Financial Assets |
18,280
|
6,142
|
|
Non-Financial Assets | |||
Tangible capital assets (note 5) |
-
|
85 ,202
|
|
Total Assets |
18,280
|
91,344
|
|
Liabilities
|
|||
Accounts payable and accrued liabilities (note 6) |
18,751
|
297,053
|
|
Vacation pay |
-
|
71,200
|
|
Employee severance benefits (note 7b) |
-
|
251,800
|
|
Total Liabilities |
18,751
|
620,053
|
|
Equity of Canada
|
(471)
|
(528,709)
|
|
Total Liabilities and Equity of Canada |
18,280
|
91,344
|
|
The accompanying notes are an integral part of these financial statements. |
For the year ended March 31 (in dollars) | 2007 | 2006 |
---|---|---|
Equity of Canada | ||
Equity of Canada, beginning of year |
(528,709)
|
(349,374)
|
Net cost of operations |
(2 042 847)
|
(3,458,518)
|
Current year appropriations used (note 3b) |
2,177,572
|
3,174,848
|
Revenue not available for spending |
(59)
|
(9,193)
|
Change in net position in the Consolidated Revenue Fund (note 3c) |
261,872
|
(81,172)
|
Services received without charge from other government departments (note 8) |
131,700
|
194,700
|
Equity of Canada, end of the year |
(471)
|
(528,709)
|
The accompanying notes are an integral part of these financial statements. |
For the year ended March 31 (in dollars) |
2007 | 2006 | |
---|---|---|---|
Operating Activities | |||
Net Cost of Operations |
2,042,847
|
3,458,518
|
|
Non-cash items included in Net Cost of Operations: | |||
Loss on write-off of tangible capital assets (note 5) |
(11,625)
|
-
|
|
Amortization of tangible capital assets (note 5) |
(73,577)
|
(107,459)
|
|
Services received without charge from other government departments (note 8) |
(131,700)
|
(194,700)
|
|
Variations in Statement of Financial Position: | |||
Increase (decrease) in accounts receivable |
13,138
|
(21,858)
|
|
Decrease in advances - petty cash |
(1,000)
|
-
|
|
Decrease (increase) in accounts payable and accrued liabilities |
278,302
|
(4,218)
|
|
Decrease in vacation pay |
71,200
|
3,600
|
|
Decrease (increase) employee severance benefits |
251,800
|
(49,400)
|
|
Cash Used by Operating Activities |
2 439 385
|
3,084,483
|
|
Net Cash Provided by Government |
2,439,385
|
3,084,483
|
|
The accompanying notes are an integral part of these financial statements. |
1. Authority and Objective
|
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
The Law Commission of Canada, an independent federal law reform agency, was established on July 1, 1997 under an Act of the Parliament of Canada entitled the Law Commission of Canada Act. The mission of the Commission is to engage Canadians in the renewal of the law to ensure that it is relevant, responsive, effective, equally accessible to all, and just. |
|||||||||||||||||
The Commission advises Parliament on how to improve and modernize Canada's laws. In order to do so, the Commission establishes research partnerships with other agencies, develops research programs, conducts extensive public consultations, supports networking activities and produces reports to Parliament with recommendations for law reform. These activities help promote a legal system that meets the changing needs of Canadian society and individuals in that society. | |||||||||||||||||
On September 25, 2006, the Government of Canada announced that the Commission will no longer receiving federal funding. The concluding operations has been completed by December 15, 2006. | |||||||||||||||||
2. 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 | |||||||||||||||||
The Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission 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 | |||||||||||||||||
The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 | |||||||||||||||||
Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by the Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the Commission. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF. | |||||||||||||||||
(d) Revenues | |||||||||||||||||
Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. | |||||||||||||||||
(e) Expenses | |||||||||||||||||
Expenses are recorded on the an accrual basis: | |||||||||||||||||
|
|||||||||||||||||
(f) Employee future benefits | |||||||||||||||||
Pension benefits
|
|||||||||||||||||
Severance benefits
|
|||||||||||||||||
(g) Accounts receivable | |||||||||||||||||
Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for accounts receivable where recovery is considered uncertain. | |||||||||||||||||
(h) Tangible capital assets | |||||||||||||||||
Tangible capital assets and leasehold improvements having an initial cost greater than $5,000 are recorded at their acquisition cost and are amortized on a straight line basis over their estimated useful lives, as follows: | |||||||||||||||||
Tangible capital asset class
|
Amortization period
|
||||||||||||||||
Informatics software | 3 to 5 years | ||||||||||||||||
Leasehold improvements | Over the term of the lease | ||||||||||||||||
Amortization of tangible of capital asset commences the month following the asset is put into service. | |||||||||||||||||
(i) 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. Liability for employee severance benefits and the useful life of tangible capital assets are the most significant items where estimates are used. 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. Parliamentary Appropriations | ||||
The Commission receives 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 Commission has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The following tables present the reconciliation between the current year appropriations used, the net cost of operations and the net cash provided by the Government: | ||||
(a) Reconciliation of net cost of operations to current year appropriations used: (in dollars) |
2007 | 2006 | ||
---|---|---|---|---|
Net Cost of Operations |
2,042,847
|
3,458,518
|
||
Items affecting net cost of operations but not affecting appropriations: | ||||
Services received without charge from other government departments |
(131,700)
|
(194,700)
|
||
Amortization of tangible capital assets |
(73,577)
|
(107,459)
|
||
Revenue not available for spending |
59
|
9 193
|
||
Loss on write-off of tangible capital assets |
(11,625)
|
-
|
||
Variation in vacation pay |
71,200
|
3,600
|
||
Variation in employee severance benefits |
251,800
|
(49,400)
|
||
Other adjustments |
28,568
|
55,096
|
||
134,725
|
(283,670)
|
|||
Current year appropriations used |
2,177,572
|
3,174,848
|
||
(b) Appropriations provided and used: (in dollars) |
2007 | 2006 | ||
Program expenditures - Vote 35 |
3,027,000
|
3,174,516
|
||
Statutory - Contributions to employee benefits plan |
154,720
|
214,894
|
||
3,181,720
|
3,389,410
|
|||
Lapsed |
(1,004,148)
|
(214, 562)
|
||
Current year appropriations used |
2,177,572
|
3,174,848
|
||
(c) Reconciliation of net cash provided by Government to current year appropriations used: (in dollars) |
2007 | 2006 | ||
Net cash provided by Government |
2,439,385
|
3,084,483
|
||
Revenue not available for spending |
59
|
9,193
|
||
Change in net position in the Consolidated Revenue Fund | ||||
Decrease (increase) in accounts receivable |
(13,138)
|
21,858
|
||
Decrease in advances - petty cash |
1,000
|
-
|
||
Increase (decrease) in accounts payable and accrued liabilities |
(278,302)
|
4,218
|
||
Other adjustments |
28,568
|
55,096
|
||
(261, 872)
|
81,172
|
|||
Current year appropriations used |
2,177,572
|
3,174,848
|
||
4. Accounts Receivable (in dollars) |
2007 | 2006 | ||
Other government departments |
18,280
|
4,719
|
||
External parties |
-
|
423
|
||
18,280
|
5,142
|
5. Tangible Capital Assets
|
|||||
Tangible capital assets (in dollars) |
Balance beginning of year | Acquisitions | Disposals / write-offs | Balance end of year | |
---|---|---|---|---|---|
Informatics software |
23,250
|
-
|
(23, 250)
|
-
|
|
Leasehold improvements |
304,940
|
-
|
(304,940)
|
-
|
|
328,190
|
-
|
(328,190)
|
-
|
||
Accumulated amortization
(in dollars) |
Balance beginning of year | Amortization | Disposals / write-offs |
Balance end of year | |
Informatics software |
5,812
|
5,813
|
(11,625)
|
-
|
|
Leasehold improvements |
237,176
|
67,764
|
(304,940)
|
-
|
|
242,988
|
73,577
|
(316,565)
|
-
|
||
Net Book Value (in dollars) | 2007 | 2006 | |||
Informatics software |
-
|
17,438
|
|||
Leasehold improvements |
-
|
67,764
|
|||
-
|
85,202
|
||||
Amortization expense for the year of nine months ended March 31, 2007 is $73,577 ($107,459 in 2006). |
6. Accounts Payable and Accrued Liabilities
(in dollars) |
2007 | 2006 | ||
---|---|---|---|---|
External parties | ||||
Accounts payable and accrued liabilities |
2,803
|
220,856
|
||
Accrued salaries |
-
|
28,055
|
||
Other government departments | ||||
Accounts payable |
15,948
|
48,142
|
||
18,751
|
297,053
|
7. Employee Future Benefits | |||
(a) Pension benefits | |||
The Commission's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits provide for pensions equal to 2% of the average of the five highest consecutive years' salary for each year of service to a maximum of 35 years. The benefits are integrated with Canada/ Quebec Pension Plan benefits and they are indexed to inflation. | |||
Both the employees and the Commission contribute to the cost of the Plan. In 2006-2007, the expenses amount to $138 474 ($193,404 in 2005-2006), which represents approximately 2.2 times (2.6 in 2005-2006) the contributions by employees. | |||
The Commission'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) Severance benefits | |||
The Commission provides severance benefits to its employees based on eligibility, years of service and final salary. The liability for severance benefits is not funded by Parliamentary appropriations, but the benefits paid during the year are funded. The severance benefits as of March 31 are as follows: (in dollars) |
2007 | 2006 | |
---|---|---|---|
Liability for employee severance benefits, beginning of year |
251,800
|
202,400
|
|
Expenses for the year |
(102,984)
|
91,068
|
|
Benefits paid during the year |
(148,816)
|
(41,668)
|
|
Liability for employee severance benefits, end of year |
-
|
251,800
|
8. Related Party Transactions | |||
The Commission is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Commission enters into transactions with these entities in the normal course of business and on normal trade terms. | |||
During the year, the Commission receives services without charge from other departments, which are recorded at their estimated cost in the Statement of Operations as follows: | |||
(in dollars) | 2007 | 2006 | |
---|---|---|---|
Accommodation provided by Public Works and Government Services Canada |
78,300
|
109,300
|
|
Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat |
53,400
|
85,400
|
|
131,700
|
194,700
|
||
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 the services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Commission's Statement of Operations. | |||
9. Comparative Information | |||
Comparative figures have been reclassified to conform to the current year's presentation. |