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Section III: Supplementary Information

Organizational Information

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.

Organizational Information Chart

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.

Financial Statements

The financial statement of the Commission for the year ended March 31, 2007 are presented on the following pages.

Financial Tables


Table 1: Comparision of Planned to Actual Spending ($ thousands)
  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.

 


Table 2: Resources by Program Activity ($ thousands)
  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.

 


Table 3: Voted and Statutory Items ($ thousands)
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.

 


Table 4: Services Received Without Charge ($ thousands)
  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

 


Table 5: Resource Requirements by Branch
($ thousands)
  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

 


Statement of Management Responsibility
LAW COMMISSION OF CANADA
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
Senior Financial full-time Officer
Ottawa, Canada

June 22, 2007


 


Statement of Operations (unaudited)
LAW COMMISSION OF CANADA
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.

 


Statement of Financial Position (unaudited)
LAW COMMISSION OF CANADA
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.

 


Statement of Equity of Canada (unaudited)
LAW COMMISSION OF CANADA
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.

 


Statement of Cash Flow (unaudited)
LAW COMMISSION OF CANADA
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.

 


Notes to the Financial Statements (unaudited)
LAW COMMISSION OF CANADA
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:
   
  • Vacation pay is expensed as the benefits accrue to employees under their respective terms of employment.
  • Services received without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
  (f) Employee future benefits
   

Pension benefits

  • Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada.  The Commission's contributions to the Plan are charged to expenses in the year incurred and represent the total Commission obligation to the Plan.  Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
   

Severance benefits

  • Employees are entitled to severance benefits under collective agreements 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 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.