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We have prepared the accompanying financial statements of the Real Property Services Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year.
Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority provided and the reconciliation of unused authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
TIM MCGRATH
Assistant Deputy Minister
Real Property Branch
Public Works and Government Services Canada
May 26, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars | ||||
Net results |
-
|
7,059
|
-
|
(13,191)
|
Add: items not requiring use of funds |
-
|
(6,531)
|
-
|
4,292
|
Operating source (use) of funds |
-
|
528
|
-
|
(8,899)
|
Add: recovery of net draw down authority used (note 1) |
-
|
-
|
-
|
8,903
|
Less: items requiring use of funds Net other assets and liabilities |
-
|
24
|
-
|
4
|
Authority provided |
-
|
504
|
-
|
-
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Credit (debit) balance in the accumulated net charge against the Fund's authority |
8,731
|
(18,565)
|
Add: | ||
PAYE charges against the appropriation account after March 31 |
175,010
|
212,696
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
184,245
|
194,131
|
Net authority provided, end of year |
(504)
|
-
|
Authority limit (note 1) |
150,000
|
150,000
|
Unused authority carried forward |
150,504
|
150,000
|
We have audited the statement of financial position of the Real Property Services Revolving Fund (the “Fund”) as at March 31, 2008 and the statements of operations and net assets (liabilities) and cash flow for the year then ended. These financial statements have been prepared to comply with Section 6.4 of Treasury Board’s Policy on Special Revenue Spending Authorities. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with the basis of accounting described in Note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the management of the Fund and the Treasury Board to comply with Section 6.4 of the Policy on Special Revenue Spending Authorities. The financial statements are not intended to be and should not be used by anyone other than specified users or for any other purpose.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Assets | ||
Current | ||
Cash in transit |
80
|
19
|
Accounts receivable | ||
Government of Canada |
175,843
|
184,743
|
Outside parties |
10,777
|
8,143
|
Other assets (note 3) |
7,615
|
9,314
|
194,315
|
202,219
|
|
Liabilities and net assets (liabilities) | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
8,741
|
3,644
|
Outside parties |
156,193
|
198,114
|
Professional liability fund |
2,138
|
2,301
|
Other liabilities |
6,276
|
4,602
|
173,348
|
208,661
|
|
Allowance for employee termination benefits |
11,008
|
17,954
|
184,356
|
226,615
|
|
Net assets (liabilities) (note 4) |
9,959
|
(24,396)
|
194,315
|
202,219
|
|
Contractual obligations (note 5) | ||
Contingent liabilities (note 6) |
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Gross revenues (note 7) |
1,036,579
|
974,858
|
Recoverable disbursements made on behalf of clients |
892,001
|
821,459
|
Net revenues |
144,578
|
153,399
|
Operating expenses | ||
Salaries and employee benefits |
85,314
|
94,686
|
Employee termination benefits |
(2,477)
|
(997)
|
Overhead chargeback |
28,841
|
36,378
|
Corporate and administrative services |
18,427
|
23,241
|
Occupancy costs |
5,608
|
7,017
|
Provisions for claims and other expenses |
1,806
|
6,265
|
137,519
|
166,590
|
|
Net results |
7,059
|
(13,191)
|
Net liabilities, beginning of year |
(24,396)
|
(37,669)
|
Recovery of net draw down authority used (note 1) |
-
|
8,903
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
27,296
|
17,561
|
Net assets (liabilities), end of year |
9,959
|
(24,396)
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Operating activities | ||
Net results |
7,059
|
(13,191)
|
Provision for employee termination benefits |
(2,477)
|
(997)
|
4,582
|
(14,188)
|
|
Changes in working capital (note 8) |
(27,409)
|
(9,060)
|
Payments on provision for employee termination benefits |
(4,469)
|
(3,216)
|
Net financial resources used by operating activities |
(27,296)
|
(26,464)
|
Financing activity | ||
Recovery of net draw down authority used (note 1) |
-
|
8,903
|
Net financial resources provided by the financing activity |
-
|
8,903
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
(27,296)
|
(17,561)
|
Accumulated net charge against the Fund's authority account, beginning of year |
18,565
|
36,126
|
Accumulated net charge against the Fund's authority account, end of year (note 4) |
(8,731)
|
18,565
|
The accompanying notes are an integral part of the financial statements.
The Real Property Services Revolving Fund (“the Fund”) provides, on a fee-for-service basis, optional real property services to other custodian departments and to other departments and agencies requesting services over and above those provided under the Federal Accommodation and Holdings Service Line program. More specifically, the Fund looks after architectural and engineering activities, property management, holdings and divestiture, and support services.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $150,000,000 at any time.
The Fund receives funding by way of a separate vote, to cover the net draw down authority used in order to comply with the Policy on Special Revenue Spending Authorities. The amount received in 2007-2008 was nil (2006-2007: $8,903,266).
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Revenues earned on professional and technical services performed and revenues to recover disbursements made on behalf of other government departments and outside parties are recognized as costs are incurred by the Fund.
c) Expenses
Overhead chargeback, corporate and administrative services and occupancy costs are based on the budgeted direct service delivery personnel costs as determined in the 2007-2008 Budget Framework for the Fund and the Federal Accommodation and Holdings Program Activities of Public Works and Government Services Canada.
d) Inventories
Inventories are valued at cost and are recorded on a first-in, first-out basis.
e) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada’s portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service
Superannuation and Supplementary Retirement Benefits Accounts.
f) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.
The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Goods and Services Tax refundable advances |
7,586
|
9,246
|
Other advances |
20
|
7
|
Prepaid expenses |
9
|
3
|
Inventories |
-
|
58
|
7,615
|
9,314
|
The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Accumulated deficit, beginning of year |
(5,831)
|
(1,543)
|
Net results |
7,059
|
(13,191)
|
Recovery of net draw down authority used (note 1) |
-
|
8,903
|
Accumulated surplus (deficit), end of year |
1,228
|
(5,831)
|
Accumulated net charge against the Fund's authority account, end of year |
8,731
|
(18,565)
|
9,959
|
(24,396)
|
The Fund is engaged in contractual obligations for property services. Expected future payments are as follows:
In thousands of dollars | ||
Year ending March 31, | 2009 |
253,042
|
2010 |
41,112
|
|
2011 |
20,411
|
|
2012 |
18,469
|
|
2013 and thereafter |
85,389
|
|
418,423
|
Multiple claims have been made against the Fund in the normal course of operations. 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 is recorded in the financial statements. A material claim where the outcome is not determinable is described below.
A statement of claim has been filed against the Crown and other parties alleging damages of $39.7 million in connection with an implied breach of contractual obligations. The Crown has filed its statement of defence. The Crown is unable to assess the possibility of settlement and the amount at risk or estimate the amount of any settlement. No accrual for this contingency has been made in the financial statements.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Recoverable disbursements made on behalf of clients |
892,001
|
821,459
|
Project fees |
133,217
|
139,308
|
Payroll recoveries |
6,785
|
10,007
|
Inventory management fees |
2,381
|
3,095
|
Other revenues |
2,195
|
989
|
1,036,579
|
974,858
|
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
194,315
|
202,219
|
7,904
|
Current liabilities |
173,348
|
208,661
|
(35,313)
|
(27,409)
|
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
We have prepared the accompanying financial statements of the Real Property Disposition Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year.
Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority provided and the reconciliation of unused authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
TIM MCGRATH
Assistant Deputy Minister
Real Property Branch
Public Works and Government Services Canada
May 26, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars | ||||
Net results |
8,000
|
8,796
|
8,000
|
6,741
|
Less: items requiring use of funds |
-
|
85
|
-
|
636
|
Authority provided |
8,000
|
8,711
|
8,000
|
6,105
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Debit balance in the accumulated net charge against the Fund's authority |
(1,912)
|
(1,594)
|
Add: | ||
Deposits on disposals |
603
|
203
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
-
|
3
|
Net authority provided, end of year |
(1,309)
|
(1,394)
|
Authority limit (note 1) |
5,000
|
5,000
|
Unused authority carried forward |
6,309
|
6,394
|
We have audited the statement of financial position of the Real Property Disposition Revolving Fund (the “Fund”) as at March 31, 2008 and the statements of operations and net assets and cash flow for the year then ended. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with generally accepted accounting principles.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Assets | ||
Current | ||
Cash in transit |
-
|
3
|
Accounts receivable | ||
Outside parties |
4
|
-
|
Work in process |
3,691
|
3,606
|
3,695
|
3,609
|
|
Liabilities and net assets | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
1
|
-
|
Deposits on disposals |
606
|
203
|
607
|
203
|
|
Net assets (note 3) |
3,088
|
3,406
|
3,695
|
3,609
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Revenues |
11,163
|
8,861
|
Operating expenses | ||
Fees |
1,454
|
915
|
Disbursements |
913
|
1,205
|
2,367
|
2,120
|
|
Net results |
8,796
|
6,741
|
Net assets, beginning of year |
3,406
|
2,561
|
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1) |
(8,796)
|
(6,741)
|
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority account, during the year |
(318)
|
845
|
Net assets, end of year |
3,088
|
3,406
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Operating activities | ||
Net results |
8,796
|
6,741
|
Changes in working capital (note 4) |
318
|
(845)
|
Net financial resources provided by operating activities |
9,114 | 5,896 |
Financing activity | ||
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1) |
(8,796)
|
(6,741)
|
Net financial resources used by the financing activity |
(8,796)
|
(6,741)
|
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year |
318 | (845) |
Accumulated net charge against the Fund's authority account, beginning of year |
1,594 | 2,439 |
Accumulated net charge against the Fund's authority account, end of year (note 3) |
1,912
|
1,594
|
The accompanying notes are an integral part of the financial statements.
The Real Property Disposition Revolving Fund (“the Fund”) provides, on a cost recovery basis, routine disposals of real property assets no longer required in order to generate revenue for the Crown.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, the total of which is not to exceed $5,000,000 at any time.
All proceeds of sale are deposited to the Consolidated Revenue Fund net of disposal costs and expenses. In accordance with the terms and conditions approved by the Treasury Board, any year end accumulated surplus in the Fund in excess of $5,000,000 is deposited to the Consolidated Revenue Fund. The amount transferred to the Consolidated Revenue Fund in 2007-2008 was $8,796,426 (2006-2007: $6,741,867).
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board which are consistent with Canadian generally accepted accounting principles for the public sector.
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Revenues are recognized in the period in which both the title is transferred to the purchaser and the full payment is received by the Fund.
c) Work in process
Work in process includes labour and disbursements incurred for services performed or goods delivered for sales or transfers of properties not finalized at the fiscal year end.
d) Deposits on disposals
Deposits on disposals represent receipts on future disposals of properties that are not closed at the fiscal year end.
The accumulated surplus is the accumulation of each fiscal year's surpluses since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Accumulated surplus, beginning of year |
5,000
|
5,000
|
Net results |
8,796
|
6,741
|
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1) |
||
(8,796)
|
(6,741)
|
|
Accumulated surplus, end of year |
5,000
|
5,000
|
Accumulated net charge against the Fund's authority account, end of year |
(1,912)
|
(1,594)
|
3,088
|
3,406
|
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
3,695
|
3,609
|
(86)
|
Current liabilities |
607
|
203
|
404
|
318
|
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
We have prepared the accompanying financial statements of the Optional Services Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year. Some previous year's figures have been reclassified to conform to the current year's presentation.
Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority provided and the reconciliation of unused authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
LILIANE SAINT PIERRE
Assistant Deputy Minister
Acquisitions Branch
Public Works and Government Services Canada
May 28, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars | ||||
Net results |
-
|
3,043
|
-
|
2,099
|
Add: items not requiring use of funds |
-
|
275
|
-
|
(1,204)
|
Operating source of funds |
-
|
3,318
|
-
|
895
|
Less: items requiring use of funds | ||||
Net other assets and liabilities |
-
|
(1)
|
-
|
2
|
Authority provided |
-
|
3,319
|
-
|
893
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Debit balance in the accumulated net charge against the Fund's authority |
(10,257)
|
(7,770)
|
Add: | ||
PAYE charges against the appropriation account after March 31 |
4,543
|
6,036
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
852
|
1,512
|
Net authority provided, end of year |
(6,566)
|
(3,246)
|
Authority limit (note 1) |
35,000
|
35,000
|
Unused authority carried forward |
41,566
|
38,246
|
We have audited the statement of financial position of the Optional Services Revolving Fund (the “Fund”) as at March 31, 2008 and the statements of operations and net liabilities and cash flow for the year then ended. These financial statements have been prepared to comply with Section 6.4 of Treasury Board’s Policy on Special Revenue Spending Authorities. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with the basis of accounting described in Note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the management of the Fund and the Treasury Board to comply with Section 6.4 of the Policy on Special Revenue Spending Authorities. The financial statements are not intended to be and should not be used by anyone other than specified users or for any other purpose.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Assets | ||
Current | ||
Cash in transit |
12
|
242
|
Accounts receivable | ||
Government of Canada |
798
|
812
|
Outside parties |
2,684
|
2,988
|
Other assets (note 3) |
41
|
459
|
3,535
|
4,501
|
|
Liabilities and net liabilities | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
147
|
4
|
Outside parties |
3,177
|
4,890
|
Other liabilities |
177
|
116
|
3,501
|
5,010
|
|
Allowance for employee termination benefits |
809
|
822
|
4,310
|
5,832
|
|
Net liabilities (note 4) |
(775)
|
(1,331)
|
3,535
|
4,501
|
|
Contractual obligation (note 5) |
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Revenues (note 6) |
104,491
|
96,665
|
Direct costs |
94,556
|
88,565
|
Gross margin |
9,935
|
8,100
|
Operating expenses | ||
Salaries and employee benefits |
3,865
|
3,451
|
Employee termination benefits |
72
|
40
|
Professional and special services |
1,776
|
1,513
|
Corporate and administrative services |
505
|
278
|
Occupancy costs |
462
|
452
|
Transportation and telecommunications |
93
|
106
|
Information |
43
|
46
|
Utilities, materials and supplies |
24
|
26
|
Rentals |
14
|
17
|
Purchased repairs and maintenance |
5
|
5
|
Amortization |
-
|
11
|
Other expenses |
33
|
56
|
6,892
|
6,001
|
|
Net results |
3,043
|
2,099
|
Net liabilities, beginning of year |
(1,331)
|
(2,338)
|
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority account, during the year |
(2,487)
|
2,908
|
Expenditure restraint measure (note 1) |
-
|
(4,000)
|
Net liabilities, end of year |
(775)
|
(1,331)
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Operating activities | ||
Net results |
3,043
|
2,099
|
Items not affecting use of the Fund's authority | ||
Amortization |
-
|
11
|
Provision for employee termination benefits |
72
|
40
|
3,115
|
2,150
|
|
Changes in working capital (note 7) |
(543)
|
(1,058)
|
Payments on provision for employee termination benefits |
(85)
|
-
|
Net financial resources provided by operating activities |
2,487 | 1,092 |
Financing activity | ||
Expenditure restraint measure (note 1) |
-
|
(4,000)
|
Net financial resources used by the financing activity |
-
|
(4,000)
|
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year |
2,487 | (2,908) |
Accumulated net charge against the Fund's authority account, beginning of year |
7,770
|
10,678
|
Accumulated net charge against the Fund's authority account, end of year (note 4) |
10,257 | 7,770 |
The accompanying notes are an integral part of the financial statements.
The Optional Services Revolving Fund (“the Fund”) provides specialized services to client departments, such as communication procurement services, taxi management system, travel management services, central removal services and central freight services. The Fund also procures vaccines and drugs on behalf of provinces and territories.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $35,000,000 at any time.
On November 30, 2006, the Fund received authorization from the Treasury Board to contribute $4,000,000 from its accumulated surplus for the implementation of Budget 2006 expenditure restraint measures.
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Recoveries from the vaccine program are recognized using a blended rate established by fixed price contracts and based on the proportion of total goods delivered at year end. Any losses on the fixed price contracts are recognized during the period in which they are identified.
Locally shared support services revenues are recognized as service provider costs are provided to the Fund.
Revenues earned on communication, printing and audio-visual services are recognized using the completed contract method.
Traffic management recoveries consist of travel commissions, central freight and central removal services. Travel commissions and central removal services recoveries are recognized based on service utilization whereas central freight recoveries are recognized as service provider costs are provided to the Fund.
c) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset. All capital assets were fully amortized as at March 31, 2007.
d) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada’s portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service
Superannuation and Supplementary Retirement Benefits Accounts.
e) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.
The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Goods and Services Tax refundable advances |
40
|
455
|
Other advances |
1
|
4
|
41
|
459
|
The accumulated surplus is the accumulation of each fiscal year's surpluses, net of deficits, since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Accumulated surplus, beginning of year |
6,439
|
8,340
|
Net results |
3,043
|
2,099
|
Expenditure restraint measure (note 1) |
-
|
(4,000)
|
Accumulated surplus, end of year |
9,482
|
6,439
|
Accumulated net charge against the Fund's authority account, end of year |
(10,257)
|
(7,770)
|
(775)
|
(1,331)
|
The Fund leases its premises under an occupancy instrument. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instrument are as follows:
In thousands of dollars | |
Year ending March 31, 2009 |
75
|
75
|
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Vaccine program recoveries |
61,073
|
53,998
|
Traffic management recoveries |
34,810
|
33,162
|
Locally shared support service centre sales |
5,074
|
6,304
|
Communication, printing and audio-visual recoveries |
3,509
|
3,141
|
Benchmarking program |
25
|
60
|
104,491
|
96,665
|
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
3,535
|
4,501
|
966
|
Current liabilities |
3,501
|
5,010
|
(1,509)
|
(543)
|
Certain of the prior year’s figures have been reclassified in order to conform to the presentation adopted in the current year.
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
We have prepared the accompanying financial statements of the Defence Production Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada.
There were no financial transactions in the Fund during the year ended March 31, 2008.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
LILIANE SAINT PIERRE
Assistant Deputy Minister
Acquisitions Branch
Public Works and Government Services Canada
May 28, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Joint authority limit (note 1) |
100,000
|
100,000
|
Net authority available for the Fund's account |
100,000
|
100,000
|
Unused authority carried forward |
100,000
|
100,000
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Joint authority limit (note 1) | 100,000 | 100,000 |
Less : Authority limit applied to the Defence Production | ||
Revolving Fund | 100,000 | 100,000 |
Unused authority carried forward | - | - |
The Defence Production Revolving Fund (“the Fund”) was established by Section 15 of the Defence Production Act. It was established in 1951 for the purpose of:
a) financing the stockpiling of defence supplies or strategic materials;
b) making loans or advances to aid in defence procurement, such as working capital loans for advance payments on contracts, but not including loans or advance payments for capital purposes; and
c) permitting initial payments for defence supplies which can be promptly billed to a Government department, agency or an associated government in advance of delivery of goods.
The Adjustment of Accounts Act (S.C. 1980, c.17) had the effect of creating a separate Defence Production Loan Account for loans or advances authorized under the Defence Production Act, item (b) above.
The Fund and the Defence Production Loan Account have a joint continuing non-lapsing authority from the Parliament to make payments out of the Consolidated Revenue Fund, the total of which is not to exceed $100 million at any time.
We have prepared the accompanying financial statements of the Telecommunications and
Informatics Common Services Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the
preceding year. Some previous year's figures have been reclassified to conform to the current year's presentation.
Responsibility for the integrity and objectivity of these financial statements rests with the
management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the
Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and
issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed
regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority provided and the reconciliation of unused
authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
STEVEN POOLE
Chief Executive Officer
Information Technology Services Branch
Public Works and Government Services Canada
May 26, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars | ||||
Net results |
-
|
816
|
-
|
11,181
|
Add: Items not requiring use of funds |
175
|
(80)
|
175
|
570
|
Operating source of funds |
175
|
736
|
175
|
11,751
|
Less: items requiring use of funds | ||||
Net capital acquisitions |
175
|
62
|
175
|
4,913
|
Net other assets and liabilities |
-
|
4
|
-
|
3
|
Authority provided |
-
|
670
|
-
|
6,835
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Debit balance in the accumulated net charge against the Fund's authority |
(6,942)
|
(10,342)
|
Add: | ||
PAYE charges against the appropriation account after March 31 |
54,168
|
47,544
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
57,430
|
46,736
|
Net authority provided, end of year |
(10,204)
|
(9,534)
|
Authority limit (note 1) |
20,000
|
20,000
|
Unused authority carried forward |
30,204
|
29,534
|
We have audited the statement of financial position of the Telecommunications and Informatics Common Services Revolving Fund (the “Fund”) as at March 31, 2008 and the statements of operations and net assets and cash flow for the year then ended. These financial statements have been prepared to comply with Section 6.4 of Treasury Board’s Policy on Special Revenue Spending Authorities. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with the basis of accounting described in Note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the management of the Fund and the Treasury Board to comply with
Section 6.4 of the Policy on Special Revenue Spending Authorities. The financial statements are not intended to be and should not be used by anyone other than specified users or for any other purpose.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Assets | ||
Current | ||
Cash in transit |
2
|
48
|
Accounts receivable | ||
Government of Canada |
54,786
|
43,919
|
Outside parties |
1,322
|
889
|
Other assets (note 3) |
2,615
|
2,739
|
58,725
|
47,595
|
|
Capital assets (note 4) |
5,004
|
5,047
|
63,729
|
52,642
|
|
Liabilities and net assets | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
578
|
70
|
Outside parties |
53,634
|
47,499
|
Other liabilities |
917
|
703
|
55,129
|
48,272
|
|
Allowance for employee termination benefits |
3,406
|
3,392
|
58,535
|
51,664
|
|
Net assets (note 5) |
5,194
|
978
|
63,729
|
52,642
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Revenues (note 6) |
197,054
|
167,844
|
Cost of sales |
152,972
|
123,774
|
Gross margin |
44,082
|
44,070
|
Operating expenses | ||
Salaries and employee benefits |
17,599
|
14,472
|
Employee termination benefits |
411
|
336
|
Professional and special services |
21,490
|
14,913
|
Corporate and administrative services |
1,939
|
1,456
|
Occupancy costs |
744
|
784
|
Transportation and telecommunications |
596
|
499
|
Purchased repairs and maintenance |
187
|
20
|
Utilities, materials and supplies |
150
|
249
|
Amortization |
105
|
128
|
Other expenses |
45
|
32
|
43,266
|
32,889
|
|
Net results |
816
|
11,181
|
Net assets (liabilities), beginning of year |
978
|
(2,124)
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
3,400
|
10,921
|
Expenditure restraint measure (note 1) |
-
|
(19,000)
|
Net assets, end of year |
5,194
|
978
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Operating activities | ||
Net results |
816
|
11,181
|
Items not affecting use of the Fund's authority | ||
Amortization |
105
|
128
|
Provision for employee termination benefits |
411
|
336
|
1,332
|
11,645
|
|
Changes in working capital (note 7) |
(4,273)
|
1,707
|
Payments on provision for employee termination benefits |
(397)
|
(360)
|
Net financial resources provided (used) by operating activities |
(3,338)
|
12,992
|
Investing activity | ||
Capital assets - acquisitions |
(62)
|
(4,913)
|
Net financial resources used by the investing activity |
(62)
|
(4,913)
|
Financing activity | ||
Expenditure restraint measure (note 1) |
-
|
(19,000)
|
Net financial resources used by the financing activity |
-
|
(19,000)
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
(3,400)
|
(10,921)
|
Accumulated net charge against the Fund's authority account, beginning of year |
10,342
|
21,263
|
Accumulated net charge against the Fund's authority account, end of year (note 5) |
6,942
|
10,342
|
The accompanying notes are an integral part of the financial statements.
The Telecommunications and Informatics Common Services Revolving Fund (“the Fund”) provides network and infrastructure services, voice telecommunications services, satellite services and managed services.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $20,000,000 at any time.
On November 30, 2006, the Fund received authorization from the Treasury Board to contribute $19,000,000 from its accumulated surplus for the implementation of Budget 2006 expenditure restraint measures.
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Revenues earned on telecommunications and informatics services are recognized as costs are incurred by the Fund. Revenues earned on goods purchased from telecom suppliers on behalf of customers are recognized when the goods are delivered to other government departments or outside parties.
c) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows:
Category
|
Estimated useful life
|
---|---|
Informatics hardware | 3 to 5 years |
Informatics software | 3 to 5 years |
Assets under construction | Once in service, in accordance with asset class |
d) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada’s portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service
Superannuation and Supplementary Retirement Benefits Accounts.
e) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.
The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Goods and Services Tax refundable advances |
2,607
|
2,735
|
Prepaid expenses |
8
|
4
|
2,615
|
2,739
|
In thousands of dollars | |||
Capital assets
|
Balance
beginning of year |
Acquisitions
|
Balance end
of year |
---|---|---|---|
Informatics hardware |
1,275
|
-
|
1,275
|
Informatics software |
216
|
-
|
216
|
Assets under construction |
4,843
|
62
|
4,905
|
6,334
|
62
|
6,396
|
|
Accumulated amortization
|
Balance
beginning of year |
Current year
amortization |
Balance end
of year |
Informatics hardware |
1,142
|
82
|
1,224
|
Informatics software |
145
|
23
|
168
|
1,287
|
105
|
1,392
|
|
Net |
5,047
|
5,004
|
The accumulated surplus is the accumulation of each fiscal year's surpluses, net of deficits, since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Accumulated surplus, beginning of year |
11,320
|
19,139
|
Net results |
816
|
11,181
|
Expenditure restraint measure (note 1) |
-
|
(19,000)
|
Accumulated surplus, end of year |
12,136
|
11,320
|
Accumulated net charge against the Fund's authority account, end of year |
||
(6,942)
|
(10,342)
|
|
5,194
|
978
|
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Data network infrastructure services |
86,494
|
79,630
|
Voice network services |
45,835
|
41,143
|
Government enterprise network management services |
60,348
|
44,392
|
Perimeter defense services |
2,432
|
2,289
|
Other revenues |
1,945
|
390
|
197,054
|
167,844
|
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
58,725
|
47,595
|
(11,130)
|
Current liabilities |
55,129
|
48,272
|
6,857
|
(4,273)
|
Certain of the prior year’s figures have been reclassified in order to conform to the presentation adopted in the current year.
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
We have prepared the accompanying financial statements of the Consulting and Audit Canada Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year. Some previous year's figures have been reclassified to conform to the current year's presentation.
Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority provided and the reconciliation of unused authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
JANE MEYBOOM-HARDY
Assistant Deputy Minister
Consulting, Information and
Shared Services Branch
Public Works and Government Services Canada
May 26, 2008
ANDRÉ AUGER
Chief Executive Officer
Audit Services Canada
Public Works and Government Services Canada
May 26, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars |
(restated)
|
|||
Net results |
(646)
|
(7,940)
|
(53)
|
(3,004)
|
Add: items not requiring use of funds |
646
|
1,374
|
834
|
(1,867)
|
Operating source (use) of funds |
-
|
(6,566)
|
781
|
(4,871)
|
Add: recovery of net draw down authority used (note 1) |
-
|
6,406
|
-
|
5,351
|
Less: items requiring use of funds | ||||
Net capital acquisitions |
-
|
-
|
300
|
-
|
Net other assets and liabilities |
-
|
(180)
|
-
|
19
|
Authority provided |
-
|
20
|
481
|
461
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Debit balance in the accumulated net charge against the Fund's authority |
(1,825)
|
(4,389)
|
Add: | ||
PAYE charges against the appropriation account after March 31 |
2,080
|
8,395
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
4,881
|
8,023
|
Allocation from the Treasury Board Vote 5 (Government Contingencies) |
-
|
590
|
Net authority provided, end of year |
(4,626)
|
(4,607)
|
Authority limit (note 1) |
20,000
|
20,000
|
Unused authority carried forward |
24,626
|
24,607
|
We have audited the statement of financial position of the Consulting and Audit Canada Revolving Fund (the “Fund”) as at March 31, 2008 and 2007 and the statements of operations and net liabilities and cash flow for the years then ended. These financial statements have been prepared to comply with Section 6.4 of Treasury Board’s Policy on Special Revenue Spending Authorities. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and 2007 and the results of its operations and its cash flow for the years then ended in accordance with the basis of accounting described in Note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the management of the Fund and the Treasury Board to comply with Section 6.4 of the Policy on Special Revenue Spending Authorities. The financial statements are not intended to be and should not be used by anyone other than specified users or for any other purpose.
As described in note 3, the financial statements of the Fund as at March 31, 2007 and for the year then ended have been restated. Our previous auditors’ report dated June 1, 2007 on those financial statements has been withdrawn.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars |
(restated)
|
|
Assets | ||
Current | ||
Cash in transit |
-
|
185
|
Accounts receivable | ||
Government of Canada |
4,850
|
8,166
|
Outside parties |
125
|
1,655
|
Other assets (note 4) |
43
|
272
|
5,018
|
10,278
|
|
Capital assets (note 5) |
7
|
89
|
5,025
|
10,367
|
|
Liabilities and net liabilities | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
85
|
940
|
Outside parties |
1,497
|
7,095
|
Other liabilities |
2,053
|
1,643
|
3,635
|
9,678
|
|
Allowance for employee termination benefits |
5,172
|
5,501
|
8,807
|
15,179
|
|
Net liabilities (note 6) |
(3,782)
|
(4,812)
|
5,025
|
10,367
|
|
Contractual obligations (note 8) |
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars |
(restated)
|
|
Revenues (note 7) |
34,088
|
72,811
|
Direct costs |
3,474
|
38,793
|
Gross margin |
30,614
|
34,018
|
Operating expenses | ||
Salaries and employee benefits |
29,195
|
27,620
|
Employee termination benefits |
418
|
(275)
|
Occupancy costs |
2,772
|
2,020
|
Corporate and administrative services |
2,720
|
3,208
|
Professional and special services |
1,212
|
2,440
|
Transportation and telecommunications |
1,077
|
1,197
|
Utilities, materials and supplies |
500
|
435
|
Interest on draw down |
138
|
19
|
Rentals |
131
|
123
|
Amortization |
82
|
183
|
Other expenses |
309
|
52
|
38,554
|
37,022
|
|
Net results |
(7,940)
|
(3,004)
|
Net liabilities, beginning of year as originally reported |
(3,085)
|
(3,571)
|
Change in accounting policy (note 3) |
(1,727)
|
(1,987)
|
Net liabilities, beginning of year as restated |
(4,812)
|
(5,558)
|
Recovery of net draw down authority used (note 1) |
6,406
|
5,351
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
2,564
|
4,399
|
Expenditure restraint measure (note 1) |
-
|
(6,000)
|
Net liabilities, end of year |
(3,782)
|
(4,812)
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars |
(restated)
|
|
Operating activities | ||
Net results |
(7,940)
|
(3,004)
|
Items not affecting use of the Fund's authority | ||
Amortization |
82
|
183
|
Provision for employee termination benefits |
418
|
(275)
|
(7,440)
|
(3,096)
|
|
Changes in working capital (note 9) |
(783)
|
(385)
|
Payments on provision for employee termination benefits |
(747)
|
(269)
|
Net financial resources used by operating activities |
(8,970)
|
(3,750)
|
Financing activities | ||
Expenditure restraint measure (note 1) |
-
|
(6,000)
|
Recovery of net draw down authority used (note 1) |
6,406
|
5,351
|
Net financial resources provided (used) by financing activities |
6,406
|
(649)
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
(2,564)
|
(4,399)
|
Accumulated net charge against the Fund's authority account, beginning of year |
4,389
|
8,788
|
Accumulated net charge against the Fund's authority account, end of year (note 6) |
1,825
|
4,389
|
The accompanying notes are an integral part of the financial statements.
1. AUTHORITY AND PURPOSE
The Consulting and Audit Canada Revolving Fund ("the Fund") is a Special Operating Agency that provides, on an optional and fee-for-service basis, consulting and audit services to federal departments and agencies. Upon request, these services are also provided to provincial, territorial, municipal and aboriginal governments in Canada, to foreign governments and to international organizations.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $20,000,000 at any time.
The Fund receives funding by way of a separate vote, to cover the net draw down authority used in order to comply with the Policy on Special Revenue Spending Authorities. The amount received in 2007-2008 was $6,406,228 (2006-2007: $5,350,967).
On November 30, 2006, the Fund received authorization from the Treasury Board to contribute $6,000,000 from its accumulated surplus for the implementation of Budget 2006 expenditure restraint measures.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Revenues on consulting and audit services performed by the Fund are earned primarily on a daily rate basis and are recognized as the services are provided.
For fixed price projects, revenues are recognized using the percentage of completion method based on the proportion of services provided at year end. Any losses on fixed price projects are recognized during the period they are identified.
c) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows:
Category
|
Estimated useful life
|
---|---|
Informatics hardware | 3 to 5 years |
Informatics software | 3 to 5 years |
Leasehold improvements | Lesser of the remaining term of the occupancy instrument or useful life of the improvement |
d) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada’s portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service
Superannuation and Supplementary Retirement Benefits Accounts.
e) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.
The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.
f) Interest on draw down
Interest is charged to the Fund at a rate set by the Department of Finance and is calculated monthly on the credit balance of the accumulated net charge against the Fund’s authority account.
3. CHANGE IN ACCOUNTING POLICY
In 2007-2008, the Fund changed its accounting policy and recorded an accrual to recognize the allowance for employee termination benefits on service with the Government of Canada prior to April 1, 1992, the date the Fund was established.
The Treasury Board funded these severance entitlements for a period of 15 years from the commencement date of the Fund which ended on March 31, 2007. Effective April 1, 2007, the funding from Treasury Board ceased as this 15 year period ended. Henceforth, the Fund will record the full liability of these severance entitlements.
Accordingly, the Fund has restated its financial position as at March 31, 2007 as well as its results of operations and cash flow for the year then ended to reflect the new obligation. As a result of this change in accounting policy, the 2006-2007 operating expenses were reduced by $259,989, the net liabilities at the beginning of the 2006-2007 fiscal year were increased by $1,987,094 and the allowance for employee termination benefits was increased by $1,727,105 as at March 31, 2007.
4. OTHER ASSETS
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Goods and Services Tax refundable advances |
30
|
260
|
Other advances |
13
|
12
|
43
|
272
|
5. CAPITAL ASSETS
In thousands of dollars | |||
Capital assets |
Balance
beginning of year |
Acquisitions
|
Balance end
of year |
---|---|---|---|
Informatics hardware |
413
|
-
|
413
|
Informatics software |
288
|
-
|
288
|
Leasehold improvements |
683
|
-
|
683
|
1,384
|
-
|
1,384
|
|
Accumulated amortization |
Balance
beginning of year |
Current year
amortization |
Balance end
of year |
Informatics hardware |
412
|
1
|
413
|
Informatics software |
288
|
-
|
288
|
Leasehold improvements |
595
|
81
|
676
|
1,295
|
82
|
1,377
|
|
Net |
89
|
7
|
6. NET LIABILITIES
The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
(restated)
|
||
Accumulated surplus, beginning of year as originally reported |
1,304
|
5,217
|
Change in accounting policy (note 3) |
(1,727)
|
(1,987)
|
Accumulated surplus (deficit), beginning of year as restated |
(423)
|
3,230
|
Net results |
(7,940)
|
(3,004)
|
Recovery of net draw down authority used (note 1) |
6,406
|
5,351
|
Expenditure restraint measure (note 1) |
-
|
(6,000)
|
Accumulated deficit, end of year |
(1,957)
|
(423)
|
Accumulated net charge against the Fund's authority account, end of year |
(1,825)
|
(4,389)
|
(3,782)
|
(4,812)
|
7. REVENUES
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Consulting services |
17,702
|
55,559
|
Audit services |
16,386
|
17,252
|
34,088
|
72,811
|
8. CONTRACTUAL OBLIGATIONS
The Fund leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instruments
are as follows:
In thousands of dollars | ||
Year ending March 31, | 2009 |
2,287
|
2010 |
1,868
|
|
2011 |
1,747
|
|
2012 |
1,750
|
|
2013 |
1,705
|
|
9,357
|
9. CHANGES IN WORKING CAPITAL
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
5,018
|
10,278
|
5,260
|
Current liabilities |
3,635
|
9,678
|
(6,043)
|
(783)
|
10. COMPARATIVE FIGURES
Certain of the prior year’s figures have been reclassified in order to conform to the presentation adopted in the current year.
11. FINANCIAL INSTRUMENTS
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
We have prepared the accompanying financial statements of the Translation Bureau Revolving Fund as required by and in accordance with the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared in accordance with the significant accounting policies set out in Note 2 of the statements, on a basis consistent with that of the preceding year. Some previous year's figures have been reclassified to conform to the current year's presentation.
Responsibility for the integrity and objectivity of these financial statements rests with the
management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the
Public Accounts of Canada and included in the Departmental Performance Report is consistent with these financial statements.
Management develops and disseminates financial management and accounting policies and
issues specific directives which maintain standards of financial management, accounting and reporting. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed
regulations, and are properly recorded to maintain accountability of government funds and safeguard the assets under the Fund's administration. Management also seeks to assure the objectivity and integrity of data in its financial statements by the 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 its regulations, policies, standards and managerial authorities are understood throughout the organization.
With the exception of the statement of authority used and the reconciliation of unused authority, management has presented the financial statements to external auditors who have audited them and have provided an independent opinion which is appended to these financial statements.
Approved by:
MIKE HAWKES
Chief Financial Officer
Finance Branch
Public Works and Government Services Canada
May 30, 2008
FRANCINE KENNEDY
Chief Executive Officer
Translation Bureau
Public Works and Government Services Canada
May 26, 2008
2008
|
2007
|
|||
---|---|---|---|---|
Estimates
|
Actual
|
Estimates
|
Actual
|
|
In thousands of dollars | ||||
Net results |
(1,654)
|
(8,819)
|
(3,718)
|
(7,325)
|
Add: items not requiring use of funds |
2,654
|
6,938
|
5,156
|
5,118
|
Operating source (use) of funds |
1,000
|
(1,881)
|
1,438
|
(2,207)
|
Less: items requiring use of funds | ||||
Net capital acquisitions |
1,000
|
1,397
|
1,000
|
2,439
|
Net other assets and liabilities |
-
|
4
|
438
|
(30)
|
Authority used |
-
|
(3,282)
|
-
|
(4,616)
|
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Debit balance in the accumulated net charge against the Fund's authority |
(7,859)
|
(14,915)
|
Add: | ||
PAYE charges against the appropriation account after March 31 |
10,535
|
15,371
|
Less: | ||
Amounts credited to the appropriation account after March 31 |
22,093
|
20,044
|
Allocation from the Treasury Board Vote 5 (Government Contingencies) |
-
|
3,111
|
Allocation from the Treasury Board Vote 23 (Paylist Requirements) |
1,319
|
-
|
Net authority provided, end of year |
(20,736)
|
(22,699)
|
Authority limit (note 1) |
10,000
|
10,000
|
Unused authority carried forward |
30,736
|
32,699
|
We have audited the statement of financial position of the Translation Bureau Revolving Fund (the “Fund”) as at March 31, 2008 and the statements of operations and net liabilities and cash flow for the year then ended. These financial statements have been prepared to comply with Section 6.4 of Treasury Board’s Policy on Special Revenue Spending Authorities. These financial statements are the responsibility of the management of the Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2008 and the results of its operations and its cash flow for the year then ended in accordance with the basis of accounting described in Note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with Canadian generally accepted accounting principles, are solely for the information and use of the management of the Fund and the Treasury Board to comply with Section 6.4 of the Policy on Special Revenue Spending Authorities. The financial statements are not intended to be and should not be used by anyone other than specified users or for any other purpose.
PricewaterhouseCoopers LLP
Chartered Accountants, Licensed Public Accountants
Ottawa, Ontario
May 30, 2008
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Assets | ||
Current | ||
Cash in transit |
114
|
120
|
Accounts receivable | ||
Government of Canada |
21,623
|
19,615
|
Outside parties |
432
|
214
|
Other assets (note 3) |
353
|
302
|
Deferred employee termination benefits - current portion |
1,319
|
3,111
|
23,841
|
23,362
|
|
Deferred employee termination benefits |
7,270
|
8,589
|
Capital assets (note 4) |
6,927
|
9,402
|
38,038
|
41,353
|
|
Liabilities and net liabilities | ||
Current | ||
Accounts payable and accrued liabilities | ||
Government of Canada |
1,383
|
5,939
|
Outside parties |
12,101
|
12,424
|
Other liabilities |
8,309
|
4,779
|
21,793
|
23,142
|
|
Allowance for employee termination benefits |
29,929
|
30,132
|
51,722
|
53,274
|
|
Net liabilities (note 5) |
(13,684)
|
(11,921)
|
38,038
|
41,353
|
|
Contractual obligations (note 6) |
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Revenues (note 7) |
215,553
|
203,891
|
Operating expenses | ||
Salaries and employee benefits |
139,049
|
131,558
|
Employee termination benefits |
2,225
|
3,149
|
Professional and special services |
53,472
|
47,087
|
Corporate and administrative services |
9,509
|
9,927
|
Occupancy costs |
8,389
|
8,618
|
Transportation and telecommunications |
4,012
|
4,183
|
Amortization |
2,555
|
3,359
|
Purchased repairs and maintenance |
1,814
|
1,200
|
Utilities, materials and supplies |
1,720
|
1,875
|
Write-off of capital assets |
1,317
|
-
|
Rentals |
163
|
171
|
Information |
77
|
73
|
Other expenses |
70
|
16
|
224,372
|
211,216
|
|
Net results |
(8,819)
|
(7,325)
|
Net liabilities, beginning of year |
(11,921)
|
(3,029)
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
7,056
|
9,433
|
Expenditure restraint measure (note 1) |
-
|
(11,000)
|
Net liabilities, end of year |
(13,684)
|
(11,921)
|
The accompanying notes are an integral part of the financial statements.
2008
|
2007
|
|
---|---|---|
In thousands of dollars | ||
Operating activities | ||
Net results |
(8,819)
|
(7,325)
|
Items not affecting use of the Fund's authority | ||
Amortization |
2,555
|
3,359
|
Write-off of capital assets |
1,317
|
-
|
Provision for employee termination benefits |
2,225
|
3,149
|
(2,722)
|
(817)
|
|
Changes in working capital (note 8) |
(3,620)
|
8,064
|
Receipts on deferred employee termination benefits |
3,111
|
-
|
Payments on provision for employee termination benefits |
(2,428)
|
(2,632)
|
Net financial resources provided (used) by operating activities |
(5,659)
|
4,615
|
Investing activity | ||
Capital assets - acquisitions |
(1,397)
|
(3,048)
|
Net financial resources used by the investing activity |
(1,397)
|
(3,048)
|
Financing activity | ||
Expenditure restraint measure (note 1) |
-
|
(11,000)
|
Net financial resources used by the financing activity |
-
|
(11,000)
|
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year |
(7,056)
|
(9,433)
|
Accumulated net charge against the Fund's authority account, beginning of year |
14,915
|
24,348
|
Accumulated net charge against the Fund's authority account, end of year (note 5) |
7,859
|
14,915
|
The accompanying notes are an integral part of the financial statements.
The Translation Bureau Revolving Fund (“the Fund”) is a Special Operating Agency that provides, on a cost recovery basis, translation, technolinguistic and other linguistic services to the judiciary and federal departments and agencies and, upon request, to other governments in Canada and international organizations.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $10,000,000 at any time.
On April 19, 2007, the Fund received authorization from the Treasury Board to access its unused authority for a total amount of up to $14,200,000 to allow sustained funding of its investment program ($6,000,000 in 2006-2007; $6,200,000 in 2007-2008; $2,000,000 in 2008-2009). The actual amount used in 2007-2008 was $3,281,823 ($4,616,021 in 2006-2007).
On November 30, 2006, the Fund received authorization from the Treasury Board to contribute $11,000,000 from its accumulated surplus for the implementation of Budget 2006 expenditure restraint measures.
The financial statements have been prepared in accordance with the significant accounting policies issued by the Treasury Board. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because:
The significant accounting policies are as follows:
a) Use of estimates
The preparation of financial statements in accordance with the reporting requirements for Revolving Funds described by the Receiver General for Canada requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting periods. Actual results could differ from these estimates.
b) Revenue recognition
Revenues from translation services performed by the Fund for other government departments and external clients are recognized using the percentage of completion method based on the proportion of services provided at year end.
Revenues from the Parliamentary Vote for translation services and revenues for interpretation services are recognized as costs are incurred by the Fund.
c) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows:
Category
|
Estimated useful life
|
---|---|
Machinery and equipment | 3 to 20 years |
Informatics hardware | 3 to 5 years |
Informatics software | 3 to 5 years |
Assets under construction | Once in service, in accordance with asset class |
Leasehold improvements | Lesser of the remaining term of the occupancy instrument or useful life of the improvement |
d) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada’s portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service
Superannuation and Supplementary Retirement Benefits Accounts.
e) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.
An accrual was made for severance entitlements on service prior to April 1, 1995. The asset account “Deferred Employee Termination Benefits” represents benefits earned prior to April 1, 1995. The account is drawn down as benefits are paid to the related employees and become recoverable from the Treasury Board. The Treasury Board will continue to reimburse for termination benefits paid by the Bureau, for service prior to April 1, 1995, until March 31, 2010. After March 31, 2010, the Treasury Board has no further obligation to reimburse for benefits paid.
The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Goods and Services Tax refundable advances |
328
|
286
|
Other advances |
25
|
16
|
353
|
302
|
In thousands of dollars | |||||
Capital assets | Balance beginning of year |
Transfers | Acquisitions | Write-off | Balance end of year |
---|---|---|---|---|---|
Machinery and equipment |
114
|
-
|
-
|
-
|
114
|
Informatics hardware |
1,796
|
-
|
110
|
(98)
|
1,808
|
Informatics software |
12,344
|
1,475
|
318
|
-
|
14,137
|
Assets under construction |
2,792
|
(1,475)
|
851
|
(1,317)
|
851
|
Leasehold improvements |
3,513
|
-
|
118
|
-
|
3,631
|
20,559
|
-
|
1,397
|
(1,415)
|
20,541
|
|
Accumulated amortization |
Balance beginning of year |
Transfers | Current year amortization |
Write-off | Balance end of year |
Machinery and equipment |
62
|
-
|
9
|
-
|
71
|
Informatics hardware |
1,526
|
-
|
184
|
(98)
|
1,612
|
Informatics software |
7,461
|
-
|
1,718
|
-
|
9,179
|
Leasehold improvements |
2,108
|
-
|
644
|
-
|
2,752
|
11,157
|
-
|
2,555
|
(98)
|
13,614
|
|
Net |
9,402
|
6,927
|
The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund’s authority is the non-lapsing authority amount that has been used since the inception of the Fund.
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Accumulated surplus, beginning of year |
2,994
|
21,319
|
Net results |
(8,819)
|
(7,325)
|
Expenditure restraint measure (note 1) |
-
|
(11,000)
|
Accumulated surplus (deficit), end of year |
(5,825)
|
2,994
|
Accumulated net charge against the Fund's authority account, end of year |
(7,859)
|
(14,915)
|
(13,684)
|
(11,921)
|
The Fund leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instruments are as follows:
In thousands of dollars | ||
Year ending March 31, | 2009 |
6,547
|
2010 |
3,072
|
|
2011 |
2,051
|
|
2012 |
468
|
|
2013
|
234
|
|
12,372
|
In thousands of dollars | ||
2008
|
2007
|
|
---|---|---|
Translation services |
210,595
|
199,331
|
Interpretation services |
3,208
|
3,034
|
Termium sales |
1,643
|
1,402
|
Other |
107
|
124
|
215,553
|
203,891
|
In thousands of dollars | |||
2008
|
2007
|
Changes
|
|
---|---|---|---|
Current assets |
23,841
|
23,362
|
(479)
|
Less: Deferred employee termination benefits - current portion |
(1,319)
|
(3,111)
|
(1,792)
|
22,522
|
20,251
|
(2,271)
|
|
Current liabilities |
21,793
|
23,142
|
(1,349)
|
(3,620)
|
Certain of the prior year’s figures have been reclassified in order to conform to the presentation adopted in the current year.
The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.