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Section 4 Audits and evaluations

Audits

Two internal audits and one audit by the Office of the Auditor General were completed this past year. As 2006 was a census year, one of the internal audits and the one by the Office of the Auditor General covered different aspects of the Census of Population.

The Office of the Auditor General report, tabled on October 30, 2007, found that Statistics Canada satisfactorily managed the 2006 Census of Population in accordance with its quality assurance systems and practices but did not prepare an integrated and comprehensive document describing the overall approach. Statistics Canada had taken a proactive approach to identifying risks to the 2006 Census; however, it did not fully comply with the requirements of the government’s policy on risk management. In particular, despite the numbers of temporary field staff it needed and the challenges it faced in hiring and retaining them, it did not develop formal and detailed contingency plans to respond in the event that it could not meet those challenges. Statistics Canada managed risks related to the privacy of respondent information with significant and successful efforts to ensure that the privacy of census data was protected. It will continue to improve its processes and practices and address the areas that were identified for the 2011 Census.

The first internal audit, entitled Audit of 2006 Census Related to Selected Security, Administrative and Quality Practices, found that pay was processed in an accurate way, mainly in accordance with established legislation, policies and procedures. However, payments to employees were not always timely as streamlining and adjustment of some controls were necessary to show evidence of due diligence. Personnel screening for new census Statistics Act employees met most of the requirements of the Government Security Policy (2002) and Personnel Security Standard (1994). Reliability checks were done before employees began work, although improvements to some tools and procedures are required for 2011 Census field operations. Employees swore the oath of office under the Statistics Act and had a reliability status before accessing a computing device connected to any Statistics Canada network. Overall, management controls were in place related to monitoring of Census Help Line telephone operators either responding to the Canadian public or contacting them for information as part of failed edit follow-up, although their effectiveness should be improved. Work has already begun on improving these areas for the next census.

The second internal audit was the second part of the Audit of Central Regional Office (Toronto) Administrative Processes. In this part, it was found that the regional office was mainly compliant with staffing under the Public Service Employment Act. Regarding staffing for Statistical Survey Operations, it was found that the staffing files had been centralized. There was evidence of competitive processes and that merit was applied. However, a list of key documents to be found in the staffing files was not available. A working committee has been tasked with developing and identifying the key staffing documents that will be required when conducting each Statistical Survey Operations staffing process.

The terms of reference of an internal audit entitled Asset Protection and Life Cycle Management were approved by the Internal Audit Committee in the fall of 2007. The audit is being performed by outside contractors and the report is expected to be presented to the committee in the fall of 2008. The terms of reference of the Audit of Confidentiality of Sensitive Statistical Information were approved in the spring of 2007. The conduct phase is well underway and the report is planned for the winter of 2008.

Statistics Canada developed a multiyear risk-based audit plan responding to the requirements of the Policy on Internal Audit, which was approved by the Internal Audit Committee in March 2008. It is working on a transition plan to fully implement the 2006 Policy on Internal Audit as outlined by the Office of the Comptroller General, including the selection of a Chief Audit Executive. It is expected that the new Chief Audit Executive will start work in the second quarter of 2008/2009. Statistics Canada expects to establish a new Audit Committee, which will conform with the 2006 Policy on Internal Audit, by the end of 2008/2009.

Table 4.1: Internal Audits

For supplementary information on the Agency's Internal Audits, please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

Evaluations

As described in Section 1, Statistics Canada has a unique system of ongoing evaluation of all its statistical and corporate services programs. Each group at Statistics Canada prepares a thorough quadrennial program review that identifies accomplishments, challenges and future priorities along with users’ satisfaction of services provided. A biennial program report updates the quadrennial program reviews at mid-cycle.

Table 4.2: Evaluations

For the timetable of the Agency's Evaluations, please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

Financial statements
March 31, 2008

Statement of Management Responsibility
March 31, 2008

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in these statements rests with Statistics Canada’s (StatCan) management.  These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

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

The financial statements of Statistics Canada have not been audited.

The original version was signed by Munir A. Sheikh, Chief Statistician of Canada and by Colleen Falconer, Senior Financial Officer.

Statement of Operations (Unaudited)

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

	2008	2007
Expenses (Note 4)
Economic Statistics	254,742	237,904
Social Statistics	235,916	212,968
Census Statistics	126,779	344,427
Total expenses	617,437	795,299
Revenues (Note 5)
Economic Statistics	20,500	21,692
Social Statistics	60,363	58,182
Census Statistics	26,929	37,802
Total revenues	107,792	117,676
Net cost of operations	509,645	677,623
The accompanying notes form an integral part of these financial statements.

Statement of Financial Position (Unaudited)

At March 31
(in thousands of dollars)

	2008	2007
ASSETS
Financial assets
Accounts receivable and advances (Note 6)	9,100	32,158
Total financial assets	9,100	32,158
Non-financial assets
Prepaid expenses	416	385
Inventory	3,076	3,595
Tangible capital assets (Note 7)	106,998	89,822
Total non-financial assets	110,490	93,802
TOTAL	119,590	125,960
Liabilities
Accounts payable and accrued liabilities (Note 8)	46,312	49,033
Deferred revenue (Note 9)	6,368	14,450
Vacation pay and compensatory leave	24,944	26,042
Lease obligation for tangible capital asset (Note 10)	642	881
Employee severance benefits (Note 11)	78,858	79,332
	157,124	169,738
Equity of Canada	(37,534)	(43,778)
TOTAL	119,590	125,960
Contingent liabilities (Note 12) Contractual obligations (Note 13) The accompanying notes form an integral part of these financial statements.

Statement of Equity of Canada (Unaudited)

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

	2008	2007
Equity of Canada, beginning of year	(43,778)	(99,108)
Net cost of operations	(509,645)	(677,623)
Current year appropriations used (Note 3)	474,031	619,520
Revenue not available for spending	(4,637)	(3,894)
Change in net position in the Consolidated Revenue Fund (Note 3)	(13,813)	50,716
Services received without charge from other government departments (Note 14)	60,308	66,611
Equity of Canada, end of year	(37,534)	(43,778)
The accompanying notes form an integral part of these financial statements.

Statement of Cash Flow (Unaudited)

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

	2008	2007
Operating activities
Net cost of operations	509,645	677,623
Non-cash items:
Amortization of tangible capital assets	(19,500)	(21,389)
Loss on disposal of tangible capital assets	(593)	(464)
Services provided without charge	(60,308)	(66,611)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	(23,058)	27,231
Increase (decrease) in prepaid expenses	31	(135)
Decrease in inventory	(519)	(179)
Decrease in liabilities	12,611	15,442
Cash used by operating activities	418,309	631,518
Capital investment activities
Acquisitions of tangible capital assets (Note 7)	37,272	34,823
Financing activities
Net cash provided by Government of Canada	(455,581)	(666,342)
The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

Statistics Canada was established in 1918 pursuant to the Statistics Act.  StatCan received full departmental status by Order in Council in 1965.

Statistics Canada is a division of the public service named in Schedule I.1 of the Financial Administration Act.  The Minister currently responsible for Statistics Canada is the Minister of Industry, who represents StatCan in Parliament and Cabinet.

Statistics Canada’s mandate derives primarily from the Statistics Act.  The Act requires StatCan, under the direction of the Minister, to collect, compile, analyze and publish statistical information on the economic, social and general conditions of the country and its citizens.  Statistics Canada’s mandate also provides for coordination and leadership of the country’s statistical system.

From StatCan’s mandate are derived two primary objectives:

• To provide statistical information and analysis of the economic and social structure and functioning of Canadian society as a basis for the development, operation and evaluation of public policies and programs, for public and private decision-making and for the general benefit of all Canadians; and
• 
  
• To promote the quality, coherence and international comparability of Canada’s statistics through collaboration with other federal departments and agencies, with the provinces and territories and in accordance with sound scientific standards and practices.

To facilitate the understanding of Statistics Canada’s program activity architecture (PAA), its activities have been grouped into three program activities: Economic Statistics, Social Statistics and Census Statistics.  The Economic Statistics provides information and analysis on the entire spectrum of Canadian economic activity, both domestic and international, through a set of macro-economic statistics and focuses on the business and trade sectors of the Canadian economy.  The Social Statistics provides information on the economic and social characteristics of individuals, families and households in Canada, and on the major factors which can contribute to their well being.  The Census Statistics provides benchmark information on the structure of the Canadian population and its demographic, social and economic conditions.

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 – Statistics Canada is financed by the Government of Canada through Parliamentary appropriations.  In addition to its yearly parliamentary appropriations, Statistics Canada has the authority to expend revenue received during the fiscal year.  Appropriations provided to StatCan 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. 
   
3. Net Cash Provided by Government – Statistics Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by StatCan is deposited to the CRF and all cash disbursements made by StatCan 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.
4. 
   
5. The 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 StatCan.  It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
6. 
   
7. Revenues:
   • 
     
   • Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues.  These amounts are transferred to revenue once services have been provided.
   • 
     
   • Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
   • 
     
   • Revenues that have been received but not yet earned are recorded as deferred revenues.
8. 
   
9. Expenses – Expenses are recorded on the accrual basis:
   • 
     
   • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
   • 
     
   • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
   • 
     
   • Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.
10. 
    
11. Employee future benefits
    1. 
       
    2. Pension benefits:  Eligible employees participate in the Public Service Pension Plan, a multiemployer  plan  administered  by  the  Government  of  Canada.  Statistics  Canada’s contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan.  Current legislation does not require StatCan to make contributions for any actuarial deficiencies of the Plan.
    3. 
       
    4. 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.
12. 
    
13. Accounts receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
14. 
    
15. 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.
16. 
    
17. Inventories – Inventories are recorded as an asset until issued for consumption or sale, at which time they are expensed.  Statistics Canada records two types of inventories:
    • 
      
    • Inventories held for re-sale – These are publications and special statistical services which will be sold in the future in the ordinary course of business to parties outside of the government reporting entity.  They are valued at their average production cost.
    • 
      
    • Consumable inventories – These are inventories held for future program delivery and not intended for re-sale.  They are valued at cost.  If they no longer have service potential, they are valued at the lower of cost or net realizable value.
18. 
    
19. Foreign currency transactions – Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on March 31, 2008.
20. 
    
21. 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.  Statistics Canada does not capitalize intangibles, works of art and historical treasures that have a 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
    Informatics hardware	5 years
    Informatics software	5 years
    Other equipment	5 years
    Motor vehicles	7 years
    Leasehold improvements	25 years
    Software under development	Once in service, 5 years
    Leased tangible capital assets	Term of lease

    
    
22. 
    
23. Measurement uncertainty – The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements.  At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable.  The most significant items where estimates are used are contingent liabilities, 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

Statistics Canada receives most of its funding through annual Parliamentary appropriations.  Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years.  Accordingly, Statistics Canada 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:

	2008	2007
	(in thousands of dollars)
Net cost of operations	509,645	677,623
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge	(60,308)	(66,611)
Amortization of tangible capital assets	(19,500)	(21,389)
Refunds of previous years expenditures	1,563	2,978
Bad debt expense	(6)	-
Legal fees	-	(129)
Revenue not available for spending	4,637	3,894
Reversal of previous year prepaid expenses	(385)	(520)
Inventory usage	(444)	(40)
Loss on disposal of tangible capital assets and write-down of inventory	(669)	(603)
Vacation pay and compensatory leave	1,098	(4,326)
Employee severance benefits	474	(6,748)
Capital lease payments	238	184
	436,343	584,313
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add:
Acquisitions of tangible capital assets	37,272	34,822
Prepaid expenses	416	385
Current year appropriations used	474,031	619,520

(b) Appropriations provided and used

	2008	2007
	(in thousands of dollars)
Vote 95 - Operating expenditures	439,845	569,903
Statutory amounts	69,043	73,351
Spending of proceeds from the disposal of tangible capital assets	52	45
	508,940	643,299
Less lapsed appropriations:
Operating	(34,909)	(23,748)
Proceeds from the disposal of tangible capital assets	-	(31)
Current year appropriations used	474,031	619,520

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

	2008	2007
	(in thousands of dollars)
Net cash provided by Government	455,581	666,342
Revenue not available for spending	4,637	3,894
	460,218	670,236
Change in net position in the Consolidated Revenue Fund
Variation in accounts receivable and advances	23,057	(27,231)
Variation in accounts payable and accrued liabilities	(2,721)	(25,312)
Variation in deferred revenue	(8,082)	(1,022)
Refunds of previous years expenditures	1,565	2,978
Other adjustments	(6)	(129)
	13,813	(50,716)
Current year appropriations used	474,031	619,520

4. Expenses

The following table presents details of expenses by category:

	2008	2007
	(in thousands of dollars)
Transfer payment - Canadian Institute of Health Information (CIHI)	561	561
Total transfer payment	561	561
Salaries and employee benefits	452,276	496,767
Services provided without charge	60,308	66,611
Transportation and postage	25,363	34,942
Professional services	23,078	126,268
Repairs and maintenance	20,239	16,192
Amortization	19,500	21,389
Materials and supplies	9,325	12,905
Rentals	4,175	6,231
Communication and printing	1,778	12,745
Loss on disposal of tangible capital assets	593	464
Other	129	46
Loss on write-down of inventory	75	139
Interest component on leased tangible capital assets	31	39
Bad debts	6	-
Total operating expenses	616,876	794,738
Total Expenses	617,437	795,299

5. Revenues

The following table presents details of revenues by category:

	2008	2007
	(in thousands of dollars)
Special statistical services	106,179	115,846
Publications	1,599	1,811
Interest on overdue accounts	14	19
Total Revenues	107,792	117,676

6. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

	2008	2007
	(in thousands of dollars)
Receivables from other Federal Government departments and agencies	2,334	29,148
Receivables from external parties	6,634	2,718
Employees advances	147	301
	9,115	32,167
Less: allowance for doubtful accounts on external receivables	(15)	(9)
Total	9,100	32,158

7. Tangible Capital Assets

(in thousands of dollars)

	Cost				Accumulated amortization
Capital asset class	Opening balance	Acquisitions	Disposals	Closing balance	Opening balance	Amortization	Disposals	Closing balance	2008 Net book value	2007 Net book value
Informatics hardware	60,898	8,106	6,657	62,347	39,285	8,229	6,626	40,888	21,459	21,613
Informatics software	58,296	19,610	1,204	76,702	32,264	9,798	642	41,420	35,282	26,032
Other equipment	6,002	283	74	6,211	4,020	547	72	4,495	1,716	1,982
Motor vehicles	1,078	-	-	1,078	162	209	-	371	707	917
Leasehold improvements	7,824	2,871	-	10,695	712	352	-	1,064	9,631	7,112
Software under development	31,310	6,276	-	37,586	-	-	-	-	37,586	31,310
Leased tangible capital assets	1,568	126	247	1,447	712	365	247	830	617	856
Total	166,976	37,272	8,182	196,066	77,155	19,500	7,587	89,068	106,998	89,822
Amortization expense for the year ended March 31, 2008 is $19,500,000 (2007 - $21,389,000).

8. Accounts Payable and Accrued Liabilities

The following table presents details of payables and accrued liabilities:

	2008	2007
	(in thousands of dollars)
Accounts payable external parties	21,692	29,827
Accounts payable other Federal Government departments and agencies	7,219	6,604
Accrued Salaries and Wages	17,378	12,590
Goods and services tax payable to Canada Revenue Agency	23	12
Total Payables and accrued liabilities	46,312	49,033

9. Deferred Revenue

Statistics Canada has the authority to expend revenue received during the fiscal year.  Deferred revenue represents the balance of unearned revenue stemming from contracts in place for the provision of statistical information.  Amounts are transferred to revenue once services have been delivered. Details of the transactions related to this account are as follows:

	2008	2007
	(in thousands of dollars)
Opening balance	14,450	15,472
Receipts	103,155	113,782
Revenues earned	(111,237)	(114,804)
Closing balance	6,368	14,450

10. Lease Obligation for Tangible Capital Assets

Statistics Canada has entered into agreements to rent all photocopiers under capital lease with a cost of $1,447,651 and accumulated amortization of $830,023 as at March 31, 2008 ($1,568,101 and $711,571 respectively as at March 31, 2007).  The obligations for the upcoming years include the following:

Maturing year	2008	2007
	(in thousands of dollars)
2008	-	377
2009	320	286
2010	205	172
2011	111	88
2012	31	12
2013 and thereafter	10	-
Total future minimum lease payments	677	935
Less: imputed interest (3.08% to 4.77%)	(35)	(54)
Balance of obligations under leased tangible capital assets	642	881

11. Employee Benefits

a) Pension benefits: Statistics Canada'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/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan.  The 2007-08 expense amounts to $50,332,603 ($54,059,527 in 2006-07), which represents approximately 2.1 times (2.2 in 2006-07) the contributions by employees.

Statistics Canada'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: Statistics Canada 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:

	2008	2007
	(in thousands of dollars)
Accrued benefit obligation, beginning of year	79,332	72,582
Expense for the year	7,270	12,887
Benefits paid during the year	(7,744)	(6,137)
Accrued benefit obligation, end of year	78,858	79,332

In order to measure the March 31, 2008 liability, Statistics Canada used the ratio, determined by Treasury Board, of 23.27% to StatCan’s annual gross payroll at year-end subject to severance pay, which is the payroll related to indeterminate employees.  The comparative ratios used to determine the March 31, 2007 and March 31, 2006 liabilities are 23.64% and 23.20% respectively.

12. Contingent Liabilities

Claims and litigation

Claims have been made against Statistics Canada in the normal course of operations.  Legal proceedings for claims, which cannot be estimated (no estimation provided in 2007) were still pending at March 31, 2008.  Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur.  To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

13. Contractual Obligations

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

(in thousands of dollars)

	2009	2010	2011	2012	2013 and thereafter	Total
Transfer payments	561	561	-	-	-	1,122
Multi-year contracts	22,328	6,762	826	292	17	30,225
Total	22,889	7,323	826	292	17	31,347

14. Related Party Transactions

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

Services provided without charge:

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

	2008	2007
	(in thousands of dollars)
Accommodation	31,341	31,318
Employer's contribution to the health and dental insurance plans	28,710	35,093
Worker’s compensation	171	173
Legal services	86	27
Total	60,308	66,611

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 StatCan’s Statement of Operations.

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