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Section III: Supplementary Information

Organizational Information

The Management Team

The Registrar is ultimately accountable for the work carried out by the Office of the Registrar of Lobbyists (ORL). The Director of Operations is responsible for the work carried out in the registration process, both paper and web-based. The Director of Investigations is responsible for the work carried out in the enforcement of the Lobbyists Registration Act (Act) and Lobbyists' Code of Conduct (Code) and the functions of Deputy Registrar.

In 2006-2007 the ORL obtained some of its corporate services through memoranda of understanding with Industry Canada, Justice Canada and the Department of Finance Canada.

Table 1: Comparison of Planned to Actual Spending (including Full-Time Equivalents)

(in $000)	2004-2005 Actual	2005-2006 Actual	2006-2007
			Main Estimates	Planned Spending	Total Authorities	Total Actuals
Registration of Lobbyists	-	-	-	1 519	1 487	1 460
Education and Research	-	-	-	930	899	744
Reviews and Investigations	-	-	-	1 065	1 021	899
Total	-	-	-	3 514	3 407	3 103
Less: Non-respendable revenue	-	-	N/A	2	N/A	755
Plus: Cost of services received without charge	-	-	N/A	145	N/A	108
Total Departmental Spending	-	-	N/A	3 657	N/A	2 456
Full-time Equivalents	-	-	N/A	20	N/A	20
Note: On February 6, 2006, the Office of the Registrar of Lobbyists was designated as a department for the purposes of the Financial Administration Act and was transferred from Industry Canada to the Treasury Board portfolio as an independent organization. Consequently, Actuals for 2004-2005 and 2005-2006 as well as Main Estimates for 2006-2007 are included in Industry Canada's Actuals and Main Estimates for those periods.

Table 2: Voted and Statutory Items (in $000)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2006-2007
		Main Estimates	Planned Spending	Total Authorities	Total Actuals
Vote 27	Operating expenditures	-	3 152	3 162	2 858
(S)	Contributions to employee benefit plans	-	362	245	245
	Total	-	3 514	3 407	3 103
Note: Vote 27 was created for the Office of the Registrar of Lobbyists through the 2006-2007 Supplementary Estimates exercise and, therefore did not appear in the Main Estimates documents.

Table 3: Services Received Without Charge

(in $000)	2006-2007 Actual Spending
Accommodation provided by Public Works and Government Services Canada	Note 1
Contributions covering the employer's share of employees' insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds); employer's contribution to employees' insured benefits plans and associated expenditures paid by the Treasury Board of Canada Secretariat	108
Total 2006-2007 Services received without charge	108
Note 1: Actual costs for accommodation services received without charge by the Office in 2006-2007 are included in the Treasury Board Secretariat Departmental Performance Report.

Table 4: Sources of Non-Respendable Revenue

(in $000)	Actual 2004-2005*	Actual 2005-2006*	2006-2007
			Main Estimates	Planned Revenue	Total Authorities	Actual
Registration of Lobbyists	-	-	-	-	-	-
Sources of non-respendable revenue
Registration fees	-	-	-	2	N/A	1
Total Non-Respendable Revenue	-	-	-	2	N/A	1
* Actual revenue information for previous years was reported under Industry Canada.

Table 5A: User Fees Act

Lobbyists Registration

				2006-2007
A. User Fee	Fee Type	Fee-setting Authority	Date Last Modified	Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard*	Performance Results*
Lobbyists registration and service fees	Other products and services	Department of Industry Act	January 31, 1996	0.5	0.8	0.8	The Office of the Registrar of Lobbyists has developed a set of service standards. These standards are the same whether fees are paid or not. These standards set time objectives for acknowledging and replying to requests, as well as for the validation and acceptance of registrations.	More than 99 percent of all lobbyist registrations are completed electronically and free of charge via a web-based registration system. A new and improved registration system is under development. Its design takes into account comments received from users. The new system is expected to help in meeting the Office's service standards.
Planning Years
Fiscal Year			Forecast Revenue ($000)			Estimated Full Cost ($000)
2007-2008			0.3			0.3
2008-2009			1.0			1.0
2009-2010			1.0			1.0
B. Other Information The registration unit has changed considerably during the reporting period. Consequently, the ORL will reexamine, in the future, the methodology to estimate full costs.
* 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; the performance standard, if provided, may not respect all requirements under the User Fees Act (e.g. international comparison; independent advisory panel to address complaints); the performance result, if provided, is not legally subject to User Fees Act, section 5.1, regarding fee reduction for failed performance.

Access to Information

				2006-2007
A. User Fee	Fee Type	Fee-setting Authority	Date Last Modified	Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard*	Performance Results*
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Other products and services (O)	Access to Information Act	1992	-	Note 1	-	Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The Access to Information Act provides fuller details.	Statutory deadlines met 100 percent of the time
Planning Years (Note 1)
Fiscal Year			Forecast Revenue ($000)			Estimated Full Cost ($000)
2007-2008			-			-
2008-2009			-			-
2009-2010			-			-
B. Other Information The Access to Information Act (ATI Act) states that all formal requests submitted must be accompanied by a $5.00 application fee payable to the Receiver General of Canada. All fees prescribed and received pursuant to the ATI Act are deposited to the Consolidated Revenue Fund.
* 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; the performance standard, if provided, may not respect all requirements under the User Fees Act (e.g. international comparison; independent advisory panel to address complaints); the performance result, if provided, is not legally subject to User Fees Act, section 5.1, regarding fee reduction for failed performance.
Note 1: Fees received pursuant to the Access to Information Act by the Office of the Registrar of Lobbyists and forecasted revenue are immaterial; therefore, they do not appear in the table above.

Table 5B: Policy on Service Standards for External Fees

Supplementary information on Service Standards for External Fees can be found in Part III - Departmental Performance Reports of the Treasury Board of Canada Secretariat Web site.

Table 6: Travel Policies

The Office of the Registrar of Lobbyists follows the Treasury Board of Canada Secretariat (TBS) Travel Directive, Rates and Allowances and the TBS Special Travel Authorities outlining travel provisions pertaining to deputy ministers.

Table 7: Financial Statements of the Office of the Registrar of Lobbyists (unaudited)

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 fulfil 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 Office of the Registrar of Lobbyists have not been audited.

Ottawa, Ontario

August 22, 2007

Office of the Registrar of Lobbyists
Statement of Operations (unaudited)
For the year ended March 31

(in dollars)	2007
Expenses (Note 5)
Registration of Lobbyists	1 014 498
Education and Research	908 330
Reviews and investigation under the Lobbyists Registration Act and the Lobbyists' Code of Conduct	1 224 510
Total Expenses	3 147 338
Revenues (Note 7)
Registration of Lobbyists	750
Education and Research	5
Total Revenues	755
Net cost of operations	3 146 583
The accompanying notes form an integral part of these financial statements.

Office of the Registrar of Lobbyists
Statement of Financial Position (unaudited)
At March 31

(in dollars)
Assets	2007
Non-financial assets
Tangible capital assets (Note 6)	1 068 882
Total non-financial assets	1 068 882
Total	1 068 882
Liabilities
Accounts payable and accrued liabilities (Note 8)	171 739
Vacation pay and compensatory leave	97 063
Employee future benefits (Note 9)	307 043
Total liabilities	575 845
Equity of Canada	493 037
Total	1 068 882
The accompanying notes form an integral part of these financial statements.

Office of the Registrar of Lobbyists
Statement of Equity of Canada (unaudited)
For the year ended March 31

(in dollars)	2007
Equity of Canada, beginning of year	-
Equity adjustment (Note 4)	487 935
Net cost of operations	(3 146 583)
Current year appropriations used (Note 3)	3 102 701
Change in net position in the Consolidated Revenue Fund (Note 3)	(57 773)
Revenue not available for spending (Note 3)	(755)
Services provided without charge (Note 10)	107 512
Equity of Canada, end of year	493 037
The accompanying notes form an integral part of these financial statements.

Office of the Registrar of Lobbyists
Statement of Cash Flow (unaudited)
For the year ended March 31

(in dollars)	2007
Operating activities
Net cost of operations	3 146 583
Non cash items:
Services provided without charge	(107 512)
Amortization of tangible capital assets	(67 932)
Variations in Statement of Financial Position:
Decrease (increase) in liabilities	(575 845)
Cash used by operating activities	2 395 294
Capital investment activities
Assets under construction	648 879
Cash used by capital investing activities	648 879
Financing activities
Net cash provided by Government of Canada	3 044 173
The accompanying notes form an integral part of these financial statements.

Office of the Registrar of Lobbyists
Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

The Office of the Registrar of Lobbyists's (ORL) mandate is derived from the Lobbyists Registration Act. Its purpose is to ensure transparency and accountability in the lobbying of public office holders in order to contribute to confidence in the integrity of government decision-making.

Registration of Lobbyists
Lobbying the federal government is a legitimate activity but it must be done transparently. The Lobbyists Registration Act requires that individuals who are paid to lobby public office holders must disclose certain details of their lobbying activities. The Registrar approves lobbyists' registrations and makes them available for searching in an electronic registry that is accessible on the Internet.

Education and Research
The Office develops and implements educational and research programs to foster awareness of the requirements of the Lobbyists Registration Act and the Lobbyists' Code of Conduct. The primary audiences for programs are lobbyists, their clients and public office holders.

Review and Investigation under the Lobbyists Registration Act and the Lobbyists' Code of Conduct
The Office validates information provided by registered lobbyists to ensure accuracy. Allegations of non-registration or misconduct by lobbyists are reviewed and formal investigations are carried out when required.

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 - The Office is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to ORL 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 Office operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by ORL is deposited to the CRF and all cash disbursements made by ORL 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 ORL. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues:

• Revenues from registration 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.

(e) Expenses - Expenses are recorded on the accrual basis:

• 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 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

(i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer administered by the Government of Canada. ORL'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 ORL to make contributions for any actuarial deficiencies of the Plan.

(ii) Severance benefits: Employees are entitled to severance benefits 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) Tangible capital assets - All tangible capital assets and leasehold improvements having an initial cost of $10 000 or more are recorded at their acquisition cost. ORL does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value; assets located on Indian Reserves and museum collections.

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

Asset class	Amortization period
Machinery and equipment	10 years
Informatics Software	10 years
Assets under construction	Once in service, in accordance with asset type

(h) 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 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. Parliamentary Appropriations

The Office of the Registrar of Lobbyists 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, ORL 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

(in dollars)	2007
Net cost of operations	3 146 583
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge	(107 512)
Revenue not available for spending	755
Employee severance benefits	(307 043)
Amortization of tangible capital assets	(67 932)
Vacation pay and compensatory leave	(97 063)
Justice Canada expenditure reversals	(113 966)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
Tangible capital assets under construction	648 879
	(43 882)
Current year appropriations used	3 102 701

(b) Appropriations provided and used

(in dollars)	2007
Vote 27 - Operating expenditures	3 161 666
Statutory Amounts	244 808
Less:
Lapsed appropriations: Operating	(303 773)
Current year appropriations used	3 102 701

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

(in dollars)	2007
Net cash provided by Government of Canada	3 044 173
Revenue not available for spending	755
Change in net position in the Consolidated Revenue Fund
Variation in accounts payable and accrued liabilities	171 739
Justice Canada expenditure reversal	(113 966)
	57 773
Current year appropriations used	3 102 701

4. Equity Adjustment

During the fiscal year, Industry Canada transferred a capital asset to ORL. The equipment had a net book value of $14 335 at the beginning of the fiscal year and had to be transferred using an equity adjustment for the net book value of the asset. Capital assets acquired prior to the current fiscal year, amounting to a net book value of $473 600, were identified and recorded by adjusting equity.

5. Expenses

(in dollars)	2007
Salaries and employee benefits	2 131 318
Professional and special services	548 027
Repair and Maintenance	223 007
Information Services	68 466
Amortization	67 932
Utilities, materials and supplies	29 252
Travel	25 052
Telecommunication Services	20 434
Furniture and equipment	16 878
Rental	10 202
Postage	6 770
Total Expenses	3 147 338

6. Tangible Capital Assets

(in dollars)	Cost
Capital asset class	Opening balance	Acquisitions	Disposals / Write-offs	Other	Closing balance
Machinery and equipment	-	-	-	15 928	15 928
Informatics software	-	496 879	-	518 400	1 015 279
Work in progress	-	152 000	-	-	152 000
Total	-	648 879	-	534 328	1 183 207
Accumulated amortization						2007
Capital asset class	Opening balance	Amortization	Disposals / Write-offs	Other	Closing balance	Net book value
Machinery and equipment	-	1 593	-	1 593	3 186	12 742
Informatics software	-	66 339	-	44 800	111 139	904 140
Work in progress	-	-	-	-	-	152 000
Total	-	67 932	-	46 393	114 325	1 068 882

7. Revenues

(in dollars)	2007
Registration revenue	750
Other	5
Total revenue	755

8. Accounts Payable and Accrued Liabilities

(in dollars)	2007
External
Accrued liabilities	34 161
Total External	34 161
Other Federal Government departments	137 578
Total Accounts payable and accrued liabilities	171 739

9. Employee Future Benefits

a) Pension benefits: ORL 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 2 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 ORL contribute to the cost of the Plan. The 2006-07 expense amounts to $219 103, which represents approximately 2.2 times the contributions by employees.

ORL'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 Office 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:

(in dollars)	2007
Accrued benefit obligation, beginning of year	-
Expense for the year	307 043
Benefits paid during the year	-
Accrued benefit obligation, end of year	307 043

10. Related party transactions

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

(a) Services provided without charge:

During the year ORL received without charge from other departments, accommodation and the employer's contribution to the health and dental insurance plans. The costs for accommodation services provided without charge to the department are included in the Treasury Board Secretariat financial statements. These services without charge have been recognized in the ORL Statement of Operations as follows:

(in dollars)	2007
Employer's contribution to the insurance plans	107 512
Total	107 512

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 ORL's Statement of Operations.

11. Comparative information

This is the first year that a set of financial statements including Statement of Financial Position, Statement of Operations, Statement of Equity of Canada, and Statement of Cash Flow has been prepared in accordance with Canadian generally accepted accounting principles. It is neither practical nor cost effective for the Office of Registrar of Lobbyists to show certain comparative amounts because some required information is not readily available and some previous year's amounts would not be substantiated with any degree of precision.

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