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Section III: Supplementary Information

1. Structure for Program Delivery

The Board carries-out its work through six offices across the country and the national office in Ottawa. The national office makes clemency recommendations and pardon decisions and develops related policies. It is also responsible for a range of activities related to conditional release, including investigations, appeal decisions, policy development, and Board member training. As well, the national office provides leadership for planning, resource management, communications, performance reporting and corporate services.

Conditional release decisions are made by Board members in the regions.  Board members are supported by staff who schedule hearings, ensure that information for decision-making is received and shared with the offender, provide policy advice, and communicate conditional release decisions to the offender, CSC and others, as required.  Staff in regions also provide information for victims, make arrangements for observers at hearings, and manage requests for access to the Board’s decision registry, and provide training for Board members.

2. Partnership for Program Delivery

Partnership is integral to effective NPB operations.  As the Board's key partner, CSC provides information for NPB decision-making (from external sources, and internally generated). If the Board grants release, CSC supervises offenders in the community.  Clearly, the Board shares accountability for "outcomes".  When parolees succeed, “success” is the result of many players in the system, as well as the offender.

CSC and NPB Working Relationship - Conditional Release

CSC Responsibilities for Offenders	NPB Decision-Making Responsibilities
Care and custody.
Programs and treatment.
Work release, temporary absences (TA) (TA authority delegated by NPB in many cases).
Information for NPB decisions: external (e.g., police, courts); produced by CSC (e.g., programs/treatment, recommendations).	Review of cases and decisions for: TAs for specific groups (e.g., lifers); the timing and conditions of release of offenders on day and full parole.
Statutory release (SR) occurs by law at 2/3rds of sentence.  Recommendations to NPB on the need for special conditions for SR.	Decisions to impose special conditions on SR.
Supervision of offenders released on TAs, parole and SR.  Information for NPB post-release decisions.	Post-release decisions (revoke or maintain release, revise conditions).
Recommendations to NPB for detention of offenders past SR to warrant expiry.	Detention decisions.
Supervision of long-term supervision offenders (LTSO).	Imposition of special conditions on LTSO.

The RCMP also works with the Board in the processing of pardon applications.  The RCMP provides NPB with information on criminal histories, and periods of crime-free behaviour for pardon applicants.  When the Board issues or grants a pardon, it notifies the RCMP which seals the pardoned record.  In the case of pardon revocation, the Board and the RCMP share information to support NPB decision-making, and RCMP responsibilities for management of information within the Canadian Police Information Centre (CPIC).

3. Financial Performance Overview

The National Parole Board’s total authorities, consisting of Main Estimates, and subsequent Supplementary Estimates were $46,278,237. This consisted of $41,151,799 in operating resources, and $5,118,244 for the Employee Benefit Plan.

Actual expenditures were $43,429,660 and resulted in a reported Public Accounts lapse of $2,848,577. This is a total lapse of approximately 6.1% of total authorities, indicating that the Board was able to manage its resources successfully for 2007-08.

The Board applied its resources to three program areas - quality conditional release decisions; open, accountable conditional release processes; and quality pardon decisions, clemency recommendations.

Financial Summary Tables

The financial tables presented in this section provide the following information on NPB:

• Total Main Estimates as reported in the 2007-08 Estimates.
• Total planned spending at the beginning of the year, as reported in the 2007-08 Estimates: Report on Plans and Priorities. This includes Main Estimates plus anticipated approvals planned through subsequent Supplementary Estimates exercises.
• Total authorities as approved by Parliament (Public Accounts of Canada for 2007-08).
• Total actual spending (Public Accounts of Canada for 2007-08).

Please note that the figures in the following tables have been rounded to the nearest thousand. Because of rounding, figures may not add to the totals shown.

This table offers a comparison of the Main Estimates, Planned Spending, Total Authorities and Actual Spending for the most recently completed fiscal year, as well as historical figures for Actual Spending.

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

	2005-06 Actual	2006-07 Actual	2007-08
			Main Estimates	Planned Spending (1)	Total Authorities (2)	Total Actuals (2)
Quality conditional release decisions	32,704	33,962	33,314	34,485	35,240	34,330
Open, accountable conditional release processes	5,818	6,561	7,954	8,917	8,089	6,208
Quality pardon decisions, clemency recommendations	4,319	2,823	1,931	1,945	2,949	2,892
Total	42,841	43,346	43,199	45,346	46,278	43,430
Less: Non-respendable revenue	714	969	N/A	700	N/A	1,438
Plus: Cost of services received without charge*	4,966	5,263	N/A	5,603	N/A	5,064
Total Departmental Spending	47,093	47,640	N/A	50,249	N/A	47,055
Full-time Equivalents	404	416	N/A	478	N/A	426

1) from the 2007/08 Report on Plans and Priorities. 2) from the 2007/08 Public Accounts.
* Services received without charge usually include accommodation provided by PWGSC, the employer's share of employees' insurance premiums, Workers' Compensation coverage provided by Social Development Canada, and services received from the Department of Justice Canada.

This table basically replicates the summary table listed in the Main Estimates. Resources are presented to Parliament in this format. Parliament approves the voted funding and the statutory information is provided for information purposes.

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007–08
		Main Estimates	Planned Spending (1)	Total Authorities (2)	Total Actuals (2)
35	Operating expenditures	37,884	40,032	41,152	38,306
(S)	Contributions to employee benefit plans	5,315	5,315	5,118	5,118
(S)	Spending of proceeds from the disposal of surplus Crown assets	-	-	8	5
	Total	43,199	45,347	46,278	43,430

1) from the 2007-08 Report on Plans and Priorities
2) from the 2007-08 Public Accounts
(S) indicates expenditures the Department is required to make that do not require an appropriation Act

Respendable Revenue

The Board does not have any Respendable Revenue.

Non-respendable Revenue

There is a $50.00 user fee for the processing of pardon applications.  Of the $50.00, the Board can access $35.00. The remaining $15.00 go to the RCMP.  The Board is not allowed to respend revenues from this fee in the year they are collected.  It can, however, access these revenues the following fiscal year through the Supplementary Estimates process.  In 2007-08, the pardon user fee generated revenues of $1,438,491.  Of this total, the Board could access 70% or $1,006,944 in 2008-09.

Table 3: Sources of Respendable and Non-respendable Revenue

	Actual 2005-06	Actual 2006-07	2007-08
			Main Estimates	Planned Revenue	Total Authorities	Actual
Pardon user fees	714	969	N/A	700	N/A	1,438
Total Non-respendable Revenue	714	969	N/A	700	N/A	1,438

Table 4: User Fees Act

A. User Fee	Fee Type	Fee-setting Authority	Date Last Modified	2007-08					Planning Years
				Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard	Performance Results	Fiscal Year	Forecast Revenue ($000)	Estimated Full Cost ($000)
Pardons User fee ($50.00)	Other Products and Services	Treasury Board Decision T.B. #822475 (1995) T.B. #826954 (1999)	Fee introduced 1995,  modified in 1999	410	1007	To be determined (TBD)	Under Development	In 2007-08, the average process time for a pardon was 10 months.	2008–09 2009–10 2010–11	800 800 800	TBD TBD TBD
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Regulatory Service	Access to Information Act	1992	0	0*	333	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: http://lois.justice.gc.ca/en/A-1/.	Response times 100% within Performance Standard:  Access to Information Act Total 15 requests: within 30 days = 13 requests 31-60 days = 2 requests 61-90 days = 1 request Privacy Act Total 326 requests: within 30 days = 252 requests  31-60 days = 64 requests 61-90 days 10 requests	2008–09 2009–10 2010–11	0 0 0	333 333 333
			Total	410	1007	333			Total 2008-09 Total 2009-10 Total 2010-11	800 800 800	TBD TBD TBD

(1)  Costs are not estimated full costs.  Instead, they represent direct costs for NPB.
* The Board is authorized to retain $35.00 or 70% of the fees received. Based on these rates, the Board earned $1,006,944 in 2007/08. These funds will be accessible by the Board in 2008-09.
**The revenues earned in this area amounted to $45.00 in 2007-08.

Table 4B: Policy on Service Standards for External Fees

A. External Fee	Service Standard	Performance Result	Stakeholder Consultation
Pardon User fee ($50.00)	Under development	In 2007/08, the average process time for pardon applications was 10 months.  For cases involving summary convictions only, the average process time was 3-5 months. In terms of program effectiveness, 96% of all pardons awarded remain in force, demonstrating that the vast majority of pardon applicants remain crime free.	As part of the business plan for pardons, the Board plans to hold consultations on the user fees in the 2008/09 fiscal year.  These consultation will set the stage for service standards for processing pardon applications by April 1, 2009.
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	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: http//loijustice.gc.ca/en/A-1/.	Response times 100% within Performance Standard:  Access to Information Act total of 16 requests: within 30 days = 13 requests 31-60 days = 1 request 61-90 days = 1 request Privacy Act total 326 requests:  within 30 days = 252 requests 31-60 days = 100 requests 61-90 days = 10 requests.	The service standards are established by the Access to Information Act and Regulations.

4. National Parole Board – Financial Statements

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in this report rests with the National Parole Board 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 Board’s financial transactions.  Financial information submitted to the Public Accounts of Canada and included in the Board’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 Board.

The financial statements of the Board have not been audited.

Mario Dion                    Anne Gagne
Chairperson                   A/Senior Financial Officer
Ottawa, Canada
July 18^th, 2008

National Parole Board

Statement of Operations (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Expenses (Note 4)
Conditional release decisions	37,670	38,366
Conditional release openness and accountability	7,081	7,591
Pardons decisions and clemency recommendations	3,158	3,976
Total expenses	47,909	49,933
Revenues (Note 5)
Conditional release decisions	5	1
Conditional release openness and accountability	-	-
Pardons decisions and clemency recommendations	1,439	969
Total revenues	1,444	970
Net cost of operations	46,465	48,963

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

National Parole Board

Statement of Financial Position (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
ASSETS
Financial assets
Accounts receivable and advances (Note 6)	527	496
Total financial assets	527	496
Non-financial assets
Prepaid expenses	201	255
Tangible capital assets (Note 7)	1 302	3 331
Total non-financial assets	1 503	3 586
TOTAL	2 030	4 082
LIABILITIES
Accounts payable and accrued liabilities	3 558	3 295
Vacation pay & compensatory leave	1 346	1 389
Deferred revenue (Note 8)	-	351
Employee severance benefits (Note 9)	5 764	5 996
TOTAL	10 668	11 031
EQUITY OF CANADA	(8 638)	(6 949)
TOTAL	2 030	4 082

Contingent liabilities (Note 10)
The accompanying notes form an integral part of these financial statements.

National Parole Board

Statement of Equity of Canada (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	(6,949)	(6,447)
Net cost of operations	(46,465)	(48,963)
Current year appropriations used (Note 3)	43,430	43,346
Revenue not available for spending	(1,548)	(983)
Services received without charge from other government departments (Note 11)	5,064	5,263
Transfer of capital assets to Correctional Services Canada (Note 7)	(2,243)	-
Change in net position in the Consolidated Revenue Fund (Note 3)	73	835
"Equity of Canada, end of year	(8,638)	(6,949)

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

National Parole Board

Statement of Cash Flow (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Operating activities
Net cost of operations	46,465	48,963
Non cash items:
Services received without charge from other departments	(5,064)	(5,263)
Amortization of tangible capital assets	(198)	(1,572)
Net loss on disposal of tangible capital assets	(10)	(1)
Variations in Statement of Financial Position:
Decrease (increase) in liabilities	363	(79)
Increase in financial assets	31	348
Increase (decrease) in prepaid expenses	(54)	116
Cash used by operating activities	41,533	42,512
Capital investment activities
Acquisitions of tangible capital assets  (Note 7)	427	688
Proceeds from disposal of tangible capital assets	(5)	(2)
Cash used by capital investment activities	422	686
Financing activities
Net Cash Provided by Government	41,956	43,198

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

National Parole Board

Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

Although the National Parole Board (NPB) is a federal government department, it is an independent administrative tribunal responsible for making decisions about the timing and conditions of release of offenders to the community on various forms of conditional release. The Board also makes pardons decisions, and recommendations for clemency through the Royal Prerogative of Mercy.

Legislation governing the Board includes the Corrections and Conditional Release Act (CCRA), the Criminal Records Act (CRA), and the provisions of the Criminal Code.The CCRA empowers the Board to make conditional release decisions for federal offenders and offenders in provinces and territories without their own parole boards. Provincial Boards currently exist in Quebec and Ontario. The CRA entitles the Board to issue, grant, deny or revoke pardons for convictions under federal acts or regulations. The Governor General or the Governor in Council exercises authority regarding the use of the Royal Prerogative of Mercy for those convicted of a federal offence in all jurisdictions based on investigations by the Board and recommendations provided to the Solicitor General of Canada.

The Board has three strategic outcomes which are the cornerstones of its public accountability and reporting of results.  They are:

1. Conditional release decisions which contribute to public protection through safe reintegration of offenders in the community;
2. Open and accountable conditional release processes that ensure active involvement and engagement of victims of crime and the public, before and after conditional release decisions are made; and,
3. Pardon decisions and clemency recommendations, which contribute to public protection and support the process of rehabilitation. 

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:

1. Parliamentary appropriations – the Board is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Board 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 two bases of reporting.
2. Net Cash Provided by Government – The Board operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by the Board is deposited to the CRF and all cash disbursements made by the Board are paid from the CRF.  The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions with other departments of the federal government.
3. 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 Board. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
4. Revenues:
   • 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 presented as deferred revenues.  These revenues are recognized in the period in which the related expenses are incurred.
5. 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, the employer’s contribution to the health and dental insurance plans, worker’s compensation and legal services are recorded as operating expenses at their estimated cost.
6. Employee future benefits:
   • Pension benefits:  Eligible employees participate in the Public Service Superannuation Plan, administered by the Government of Canada.  The Board’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 Board to make contributions for any actuarial deficiencies of the Plan.
   • 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.
7. Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
8. 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 statements.
9. Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $1,000 or more are recorded at their acquisition cost.  The department 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	3 to 5 years
   Other equipment	15 years
   Motor vehicles	7 years
   Leasehold Improvements	Term of lease
   Assets under construction	Once in service, in accordance with asset type

10. 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 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 National Parole Board receives all 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 a prior year, current or a future year.  Accordingly, the Board 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:

(in thousands of dollars)

	2008	2007
a) Reconciliation of net cost of operations to current year appropriations used:
Net cost of operations	46 465	48 963
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
Services received without charge (Note 11)	(5,064)	(5,263)
Amortization of tangible capital assets	(198)	(1,572)
Prepaid expenses previously charged to appropriation	(125)	(114)
Loss on disposal of tangible capital assets	(14)	(3)
Revenue not available for spending	1 548	983
Employee severance benefits	232	(415)
Justice legal fees	-	(184)
Vacation pay and compensatory leave	43	30
Other	46	1
Total	42 933	42 426
Adjustments for items not affecting net cost of operations but affecting appropriations: Add:
Acquisitions of capital assets	427	688
Prepaid expenses	70	232
Current year appropriations used	43 430	43 346
b) Appropriations provided and used
Vote 35 - Program expenditures	41 153	40 319
Statutory amounts	5 126	4 994
Total appropriations provided	46 279	45 313
Less:
Appropriations available for future years	(3)	(2)
Lapsed appropriations: Program expenditures	(2,846)	(1,965)
Current year appropriations used	43 430	43 346
c) Reconciliation of net cash provided by Government to current year appropriations used
Net cash provided by Government	41 956	43 198
Revenue not available for spending	1 548	983
Total	43 504	44 181
Change in net position in the Consolidated Revenue Fund
Variation in financial assets	31	(348)
Variation in accounts payable and accrued liabilities	263	(311)
Variation in deferred revenue	(351)	5
Other	(16)	(181)
Total	(73)	(835)
Current year appropriations used	43 430	43 346

4. Expenses

The following table presents details of expenses by category:

(in thousands of dollars)

	2008	2007
Personnel	37,485	37,907
Professional and other services	2,881	3,378
Accomodation	2,654	2,550
Travel	2,604	2,454
Materials and supplies	652	856
Telecommunication services	362	345
Relocation	313	105
Postage, freight, express, and cartage	230	236
Amortization expense	198	1,572
Purchased repair and maintenance	185	240
Rentals	175	193
Information services	152	86
Miscellaneous expenditures	18	11
Total	47,909	49,933

5. Revenues

The following table presents details of revenue by category:

(in thousands of dollars)

	2008	2007
Pardon service fees	1,439	969
Other	5	1
Total	1,444	970

6. Accounts Receivable and Advances

The following table presents details of accounts receivables and advances:

(in thousands of dollars)

	2008	2007
Receivables from other Federal Government departments and agencies	503	472
Receivables from external parties	19	19
Employee advances	5	5
Total	527	496

7. Tangible Capital Assets

(in thousands of dollars)

		Machinery & equipment	Informatics hardware	Informatics software	Other equipment	Motor vehicles	Leasehold improvements	Assets under construction	Total
Cost	Opening Balance	400	2,266	3,070	1,094	580	98	25	7,533
	Acquisitions & Transfers	46	-	-	166	215	25	-25	427
	Disposals & Write-offs	121	2,266	3,070	75	63	-		5,595
	Closing Balance	325	-	-	1,185	732	123	-	2,365
Accumulated amortization	Opening Balance	270	1,807	1,305	460	298	62	-	4,202
	Amortization	40	-	-	69	73	16	-	198
	Disposals & Write-offs	100	1,807	1,305	65	61	-	-	3,338
	Closing Balance	210	-	-	464	310	78	-	1,062
	2008 Net Book Value	115	-	-	720	422	45	-	1,302
	2007 Net Book Value	130	459	1,765	634	282	36	25	3,331

Amortization expense for the year ended March 31, 2008 is $198 (2007 - $1,572).

The disposal of all the informatics hardware, software, machinery and equipment capital assets amounting to $2,243,000 reflects the Net Book Value of assets transferred to Correctional Services Canada effective 1 April 2007. As of that date, Correctional Services Canada assumed responsibility for providing Information Technology services to the National Parole Board.

8. Deferred Revenue

Deferred revenue represents the balance at year-end of unearned revenue stemming from the collection of pardon fees upon receipt of the application. While the fees are received with the application, revenue is recognized only once the screening for eligibility and completeness is carried out.

	2008	2007
Opening balance	351	346
Pardon fees received		1,238
Fees returned		(264)
Revenue recognized	(351)	(969)
Closing balance	0	351

Effective 1 April 2007, the process for the accounting for pardon fees received was made more efficient such that the requirement for a deferred revenue account is no longer required.

9. Employee Benefits

(a) Pension benefits: The Board’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 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Board contribute to the cost of the Plan. The 2007-08 expense for the Board amounts to $3,731,200 ($3,677,549 in 2006-07), which represents approximately 2.1 times (2.2 times in 2006-07) the contributions by employees.

The Board’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 Board 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 thousands of dollars)

	2008	2007
Accrued benefit obligation, beginning of year	5 996	5 581
Expense for the year	322	1 016
Benefits paid during the year	(554)	(601)
Accrued benefit obligation, end of year	5 764	5 996

10. Contingent liabilities

Claims have been made against the Board in the normal course of operations (conditional release decisions). Legal proceedings for 20 claims in relation to victims, victims’ families and offenders totalling approximately $ 76.5 M were still pending as at March 31, 2008 ($ 85.0 M in 2007). The potential liabilities arising from the cases pending at March 31, 2008 are considered to be minimal by management as the Board is an independent administrative tribunal and is provided with an immunity clause (Section 154) in the Corrections and Conditional Release Act making the likelihood of future loss negligible. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. The existence and amount of liability depend upon the future outcome of these claims, which are not currently determinable. No accrual for this contingency has been made in the financial statements.

11. Related party transactions

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

(a) Services provided without charge:

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

(in thousands of dollars)

	2008	2007
Accommodation	2,654	2,550
Employer's contribution to the health insurance plan, dental insurance plan and workers compensation	2,143	2,416
Legal services	267	297
Total	5,064	5,263

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 cost 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 Board's Statement of Operations.

(b) Payables and receivables outstanding at year-end with related parties:

(in thousands of dollars)

	2008	2007
Accounts receivable with other Federal Government departments and agencies	503	472
Accounts payable to other Federal Government departments and agencies	127	360

12. Comparative Information

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

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