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The following table shows the Canada Border Services Agency’s (CBSA) actual spending for 2007–2008 and aligns the Agency’s program activities with Government of Canada outcome areas. As per Treasury Board of Canada Secretariat guidelines, performance reporting on the Corporate Management and Direction program activity is provided in Section IV.
Table 3.1: CBSA Links to Government of Canada Outcomes Areas
Strategic Outcome: Efficient and effective border management that contributes to the security and prosperity of Canada. | ||||
(Thousands of dollars) | ||||
Program Activity | Actual Spending 2007–2008 | Alignment to Government of Canada Outcome Area | ||
---|---|---|---|---|
Budgetary | Non-budgetary | Total | ||
Access | 687,378 | - | 687,378 |
|
Security | 383,530 | - | 383,530 |
|
Science- and Technology-based Innovation | 377,799 | - | 377,799 |
|
Total | 1,448,707 | - | 1,448,707 |
Table 3.2 outlines the major contribution that the CBSA program activities make to Government of Canada outcome areas.
Table 3.2: CBSA Program Activity Contributions to Government of Canada Outcome Areas
Government of Canada Outcome Areas | ||
Program Activity | Policy Area | Government of Canada Outcome Area |
---|---|---|
Access | International Affairs | Through the work of the Access program activity, the CBSA ensures the lawful flow of people and goods while promoting compliance with border legislation and regulations. |
Security | Social Affairs | Through the work of the Security program activity, the CBSA ensures the safety and security of Canadians within the context of the Government of Canada’s security agenda and through effective and efficient border management. |
Science- and Technology-based Innovation | International Affairs/ Social Affairs | Through the work of the Science- and Technology-based Innovation program activity, the CBSA uses its science and technology capacity to modernize border management and increase the effectiveness and efficiency of border operations. |
Table 3.3: Comparison of the CBSA’s Planned Spending to Actual Spending
(Thousands of dollars) | ||||||
Program Activity | 2005–2006 Actual | 2006–2007 Actual | 2007–2008 | |||
---|---|---|---|---|---|---|
Main Estimates | Planned Spending | Total Authorities | Actual | |||
Access | 682,349 | 719,283 | 677,708 | 679,398 | 749,978 | 708,112 |
Less: Respendable revenue | (15,327) | (20,898) | (17,710) | (17,710) | (20,734) | (20,734) |
Net - Access | 667,022 | 698,395 | 659,998 | 661,688 | 729,244 | 687,378 |
Security | 300,599 | 358,366 | 401,580 | 402,529 | 480,758 | 383,530 |
Science- and Technology-based Innovation | 200,841 | 223,959 | 378,787 | 379,248 | 469,103 | 377,799 |
Total | 1,168,462 | 1,280,710 | 1,440,365 | 1,443,465 | 1,679,105 | 1,448,707 |
Less: Non-respendable revenue | (43,993) | (54,654) | (42,219) | (62,627) | ||
Plus: Cost of services received without charge | 111,685 | 119,300 | 111,463 | 129,284 | 129,284 | |
Total Agency Spending | 1,236,154 | 1,345,356 | 1,440,365 | 1,512,709 | 1,808,389 | 1,515,364 |
Full-time Equivalents | 12,077 | 12,383 | 13,023 | 13,802 |
Table 3.4: The CBSA’s Voted and Statutory Items
(Thousands of dollars) | |||||
Vote or Statutory Item | Truncated Vote or Statutory Wording |
2007–2008 | |||
---|---|---|---|---|---|
Main Estimates | Planned Spending | Total Authorities | Actual | ||
10 | Operating expenditures | 1,242,329 | 1,245,151 | 1,429,161 | 1,263,345 |
15 | Capital expenditures | 52,819 | 52,819 | 99,364 | 34,903 |
(S) | Contributions to employee benefit plans | 145,217 | 145,495 | 149,791 | 149,791 |
(S) | Spending of proceeds from the disposal of surplus Crown assets | 262 | 141 | ||
(S) | Refunds of amounts credited to revenues in previous years | 519 | 519 | ||
(S) | Collection agency fees | 8 | 8 | ||
Total | 1,440,365 | 1,443,465 | 1,679,105 | 1,448,707 |
The $230 million difference between total authorities and actual is mainly the result of the following:
The following tables are available on the Treasury Board of Canada Secretariat’s Web site at http://www.tbs-sct.gc.ca.
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 Canada Border Services Agency’s (Agency) 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 the Agency’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Agency’s Departmental Performance Report is consistent with these financial statements.
Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Agency.
The financial statements of the Agency have not been audited.
The original version was signed by Stephen Rigby, President, Canada Border Services Agency, and Sylvain St-Laurent, Senior Financial Officer, Canada Border Services Agency, in Ottawa, Canada, on August 8, 2008.
Canada Border Services Agency
Statement of Operations (Unaudited)
For the Year Ended March 31
(in thousands of dollars)
2008 | 2007 | ||||
---|---|---|---|---|---|
Access | Security | "Science & Technology" |
Total | Total | |
Revenues | |||||
Tax revenues | |||||
Excise taxes (Note 4) | 19,586,767 | 0 | 0 | 19,586,767 | 21,370,613 |
Customs import duties | 3,902,834 | 0 | 0 | 3,902,834 | 3,704,222 |
Excise duties | 1,235,082 | 0 | 0 | 1,235,082 | 895,237 |
24,724,683 | 0 | 0 | 24,724,683 | 25,970,072 | |
Non-tax revenues | |||||
Interest, penalties and fines | 31,457 | 52 | 54 | 31,563 | 27,928 |
Seized property | 22,135 | 0 | 0 | 22,135 | 15,727 |
Sale of goods and services | 18,837 | 1,646 | 159 | 20,642 | 22,820 |
Forfeitures of cash bonds | 0 | 2,050 | 0 | 2,050 | 2,057 |
Miscellaneous | 604 | 341 | 355 | 1,300 | 1,828 |
Gain on sale of assets | 64 | 36 | 38 | 138 | 214 |
Total | 73,097 | 4,125 | 606 | 77,828 | 70,574 |
Total Revenues | 24,797,780 | 4,125 | 606 | 24,802,511 | 26,040,646 |
Operating Expenses | |||||
Salaries and employee benefits | 644,881 | 294,218 | 156,527 | 1,095,626 | 1,044,122 |
Professional and special services | 79,708 | 83,766 | 97,052 | 260,526 | 197,890 |
Transportation and telecommunication | 24,509 | 30,530 | 12,754 | 67,793 | 54,728 |
Rental of land and buildings | 26,259 | 15,035 | 15,525 | 56,819 | 52,611 |
Amortization | 12,788 | 12,131 | 7,459 | 32,378 | 28,431 |
Materials and supplies | 12,796 | 8,091 | 5,213 | 26,100 | 19,017 |
Repair and maintenance | 11,795 | 7,385 | 6,663 | 25,843 | 27,948 |
Consumable machinery and equipment (parts) | 5,995 | 8,537 | 4,939 | 19,471 | 18,072 |
Other | 3,591 | 3,733 | 1,059 | 8,383 | 5,646 |
Bad debts (Recovery) | (35,434) | 0 | 0 | (35,434) | 50,996 |
Total Expenses | 786,888 | 463,426 | 307,191 | 1,557,505 | 1,499,461 |
Net Results | 24,010,892 | (459,301) | (306,585) | 23,245,006 | 24,541,185 |
The accompanying notes form an integral part of these financial statements.
Canada Border Services Agency
Statement of Financial Position (Unaudited)
At March 31
(in thousands of dollars)
2008 | 2007 | |
---|---|---|
Assets | ||
Financial assets | ||
Cash | 1,271,299 | 2,066,739 |
Accounts receivable and advances (Note 5) | 406,050 | 17,444 |
Taxes receivable (Note 6) | 1,376,608 | 1,295,042 |
Total financial assets | 3,053,957 | 3,379,225 |
Non-financial assets | ||
Prepaid expenses | 266 | 159 |
Inventory | 7,205 | 3,806 |
Tangible capital assets (Note 7) | 334,580 | 312,329 |
Total non-financial assets | 342,051 | 316,294 |
Total | 3,396,008 | 3,695,519 |
Liabilities and Equity of Canada | ||
Liabilities | ||
Accounts payable and accrued liabilities (Note 8) | 2,020,323 | 176,183 |
Payable to provinces (Note 9) | 6,907 | 8,242 |
Taxes payable | 22,570 | 23,666 |
Deposit accounts (Note 10) | 39,547 | 40,823 |
Employee severance benefits (Note 11) | 182,784 | 168,061 |
Total | 2,272,131 | 416,975 |
Equity of Canada | 1,123,877 | 3,278,544 |
Total | 3,396,008 | 3,695,519 |
Contingent liabilities (Note 12)
Contractual obligations (Note 13)
The accompanying notes form an integral part of these financial statements.
Canada Border Services Agency
Statement of Equity of Canada (Unaudited)
For the Year Ended March 31
(in thousands of dollars)
2008 | 2007 | |
---|---|---|
Equity of Canada, beginning of year | 3,278,544 | 3,197,810 |
Net results | 23,245,006 | 24,541,185 |
Current year appropriations used (Note 3) | 1,448,707 | 1,281,100 |
Revenue not available for spending | (24,803,029) | (26,041,424) |
Change in net position in the Consolidated Revenue Fund (Note 3) | (2,174,632) | 180,573 |
Services provided without charge from other government departments (Note 14) |
129,281 | 119,300 |
Equity of Canada, end of year | 1,123,877 | 3,278,544 |
The accompanying notes form an integral part of these financial statements.
Canada Border Services Agency
Statement of Cash Flow (Unaudited)
For the Year Ended March 31
(in thousands of dollars)
2008 | 2007 | |
---|---|---|
Operating activities | ||
Net results | 23,245,006 | 24,541,185 |
Non-cash items: | ||
Services provided without charge by other government departments | 129,281 | 119,300 |
Amortization of tangible capital assets | 32,378 | 28,431 |
Loss on disposals and adjustments to capital assets | (6,118) | (8,866) |
Legal Services (Justice) expense | 0 | 435 |
Bad debt expense | 264 | 158 |
Contaminated sites expense | (98) | (59) |
Variations in Statement of Financial Position: | ||
(Increase) in accounts receivable and advances | (388,606) | (9,364) |
(Increase) in tax receivables | (81,566) | (123,583) |
(Increase) in prepaid expenses | (107) | (159) |
(Increase) Decrease in inventory | (3,399) | 552 |
Increase in accounts payable and accrued liabilities | 1,844,140 | 16,279 |
(Decrease) Increase in payable to provinces | (1,335) | 673 |
(Decrease) Increase in deposit accounts | (1,276) | 1,153 |
(Decrease) in tax payables | (1,096) | (470) |
Increase in employee severance benefits | 14,723 | 49,773 |
Cash generated by operating activities | 24,782,191 | 24,615,438 |
Capital investment activities | ||
Acquisitions of tangible capital assets | (48,815) | (40,210) |
Proceeds from disposal of tangible capital assets | 138 | 214 |
Cash used by capital investment activities | (48,677) | (39,996) |
Financing activities | ||
Net cash forwarded to the Government of Canada | (25,528,954) | (24,579,751) |
Net cash used | (795,440) | (4,309) |
Cash, beginning of year | 2,066,739 | 2,071,048 |
Cash, end of year | 1,271,299 | 2,066,739 |
The accompanying notes form an integral part of these financial statements.
The Canada Border Services Agency is responsible for providing integrated border services that support national security and public safety priorities and facilitate the free flow of persons and goods. The Canada Border Services Agency Act received royal assent on November 3, 2005. The Agency is a departmental corporation named in Schedule II of the Financial Administration Act and reports to Parliament through the Minister of Public Safety. The Agency is funded through appropriations from the Government of Canada.
The Agency is responsible for the administration and enforcement of the following acts or portions of these acts: the Customs Act, the Customs Tariff, the Excise Act, the Excise Tax Act, the Citizenship Act, the Immigration and Refugee Protection Act, as well as other acts on behalf of other federal departments and provinces.
In delivering efficient and effective border management that contributes to the security and prosperity of Canada, the Agency operates under the following program activities:
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:
The Agency is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Agency do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency are paid from the CRF. The net cash forwarded to the Government of Canada is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
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 the Agency. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
Tax revenues reported in this statement include revenues assessed under the authority of the Customs Act, the Customs Tariff, the Excise Act and the Excise Tax Act. These taxes include: excise taxes, which consist of the goods and services tax (GST) and the harmonized sales tax (HST), excise duties and customs import duties. Domestic HST and GST, as well as the input tax credits accorded for GST/HST paid on importations and domestic transactions, are not reflected in these statements as the Canada Revenue Agency is responsible for their administration.
The determination of the Agency’s tax revenues is based on the taxes and duties assessed that relate to goods authorized by the Agency to enter into Canada during the fiscal year that ended March 31. These revenues are recognized at the time the goods are released.
The Canadian customs and tax systems are predicated on self-assessment where importers are expected to understand the laws and comply with them. This has an impact on the completeness of duty and tax revenues when importers fail to comply with laws, for example, if they do not declare or incorrectly declare goods imported. The Agency has implemented systems and controls in order to detect and correct situations where importers are not complying with the various acts it administers. These systems and controls include performing audits of importer records where determined necessary by the Agency. Such procedures cannot be expected to identify all undeclared or incorrectly declared importations or other cases of non-compliance. The Agency does not estimate the amount of unreported duties and taxes. However, such amounts are included in revenues when assessed.
Non-tax revenues reported in this statement include revenues collected on behalf of the Government of Canada under the Immigration and Refugee Protection Act, the Agriculture and Agri-Food Administrative Monetary Penalties Act and other similar legislation.
Non-tax revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenue.
All expenses are recorded on an accrual basis:
Cash includes amounts received in Agency offices or by Agency agents as at March 31 but not yet deposited to the credit of the CRF of the Government of Canada.
Accounts receivable and advances are stated at amounts expected to be ultimately realized; a provision is made for doubtful accounts where recovery is considered uncertain.
Taxes receivable represent duties and taxes and other revenues assessed or estimated by the Agency but not yet collected. All receivables are stated at amounts ultimately expected to be realized. A provision is made for doubtful accounts where recovery is considered uncertain. This allowance for doubtful accounts reflects management’s best estimate of the collectibility of amounts assessed but not yet paid.
Inventory consists of forms, publications and uniforms and is not intended for resale. Items in the inventory are valued at cost using the weighted average cost method. Items that are considered obsolete are written off. The cost of inventory is charged to operations in the period in which the items are used.
All tangible capital assets having an initial cost of $10,000 or more are recorded at their acquisition cost. Amortization of capital assets, except land, is performed on a straight-line basis over the estimated useful lives of the assets as follows:
Asset class | Amortization period |
---|---|
Buildings | 30 years |
Works and infrastructure | 40 years |
Machinery and equipment | 10 years |
Information technology equipment | 5 years |
In-house-developed software | 7 years |
Purchased software | 3 years |
Vehicles | 5 years |
Assets under construction | Once in service, determined in accordance with asset type |
(l) Taxes payable
Taxes payable to importers represent refunds and related interest resulting from assessments completed after March 31 for excise duties, customs import duties and GST/HST for current or prior year imports.
(m) Employee future benefits
(n) 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.
(o) Environmental liabilities
Environmental liabilities reflect the estimated costs related to the management and remediation of contaminated sites. Based on management’s best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the Agency becomes aware of the contamination and is obligated or is likely to be obligated to incur remedial costs. If the likelihood
of the Agency’s obligation to incur these costs is either not determinable or unlikely, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.
(p) 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, environmental liabilities, the liability for employee severance benefits, the allowances for doubtful accounts 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.
The Agency receives most of its funding through Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Agency has different net results for the year on a government funding basis than on an accrual accounting basis.
These differences are reconciled below:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Net results | (23,245,006) | (24,541,185) |
Adjustments for items affecting net results but not affecting appropriations |
||
Add (Less): | ||
Revenue not available for spending | 24,803,029 | 26,041,424 |
Services provided without charge | (129,281) | (119,300) |
Amortization of tangible capital assets | (32,378) | (28,431) |
Employee severance benefits | (14,723) | (49,773) |
Other | 14,745 | (61,845) |
Total | 24,641,392 | 25,782,075 |
Adjustments for items not affecting net results but affecting appropriations | ||
Add: | ||
Acquisition of tangible capital assets | 48,815 | 40,210 |
Inventory purchased | 3,399 | 0 |
Prepaid expenses | 107 | 0 |
Total | 52,321 | 40,210 |
Current year appropriations used | 1,448,707 | 1,281,100 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Parliamentary appropriations | ||
Vote 10 – Operating expenditures | 1,429,161 | 1,264,927 |
Vote 15 – Capital expenditures | 99,364 | 51,674 |
Total | 1,528,525 | 1,316,601 |
Statutory amounts | ||
Contributions to employee benefit plans | 149,791 | 136,844 |
Spending proceeds from disposal of surplus crown assets | 262 | 365 |
Refunds of amounts credited to revenues from previous years | 519 | 718 |
Collection agency fees | 8 | 0 |
Total | 150,580 | 137,927 |
Available for use in subsequent years | ||
Vote 10 – Operating expenditures | (165,816) | (151,775) |
Vote 15 – Capital expenditures | (64,462) | (21,529) |
Total | (230,278) | (173,304) |
Appropriations available for future years | (120) | (124) |
Current year appropriations used | 1,448,707 | 1,281,100 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Net cash provided by (deposited to) Government | (25,528,954) | (24,579,751) |
Revenue not available for spending | 24,803,029 | 26,041,424 |
Change in net position in the Consolidated Revenue Fund | ||
Variation in accounts receivable | 325,268 | (132,947) |
Variation in accounts payable and accrued liabilities | 1,840,433 | 7,455 |
Other adjustments | 8,931 | (55,081) |
Total | 2,174,632 | (180,573) |
Current year appropriations used | 1,448,707 | 1,281,100 |
Effective January 1, 2008, the GST and HST rates applied against imported goods were reduced from 6% and 14% to 5% and 13% respectively. The excise tax revenue amount appearing in the statement of operations reflects the reduction in the rates. Revenues from excise taxes are remitted in monthly installments to the Department of Finance Canada on the basis of a remittance schedule set by that department. The amounts remitted represent the participating provinces’ share of the HST collected by the Agency under the terms of the Comprehensive Integrated Tax Coordination Agreement.
The following table presents details of the excise tax revenues:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
GST/HST (net) | 19,448,447 | 21,290,302 |
Excise tax - gasoline | 91,955 | 56,615 |
Other excise tax | 46,365 | 23,696 |
Total excise taxes | 19,586,767 | 21,370,613 |
The following table presents details of the accounts receivable and advances:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Receivables from other Federal Government departments and agencies | 400,581 | 12,905 |
Receivables from external parties | 4,338 | 3,650 |
Employee advances and other receivables | 1,832 | 1,510 |
406,751 | 18,065 | |
Less: allowance for doubtful accounts on external receivables | (701) | (621) |
Total | 406,050 | 17,444 |
Taxes receivable represent the customs duties, excise taxes, GST and HST due to the Receiver General for Canada as a result of importations into Canada.
The following table presents details of taxes receivable:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Taxes receivable | 1,498,855 | 1,450,393 |
Less: allowance for doubtful accounts | (122,247) | (155,351) |
Net taxes receivable | 1,376,608 | 1,295,042 |
(in thousands of dollars)
Cost | Accumulated amortization | 2008 | 2007 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Capital asset class | Opening balance |
Acquisi- tions |
Transfers, disposals, write-offs | Closing balance |
Opening balance | Amorti-zation | Transfers, disposals, write-offs |
Closing balance |
Net book value |
Net book value |
Land | 4,402 | 802 | 0 | 5,204 | 0 | 0 | 0 | 0 | 5,204 | 4,402 |
Buildings | 142,232 | 5,327 | 0 | 147,559 | 45,574 | 4,873 | 0 | 50,447 | 97,112 | 96,658 |
Works and infrastructure |
1,124 | 0 | 0 | 1,124 | 335 | 21 | 0 | 356 | 768 | 789 |
Machinery and equipment |
63,832 | 1,422 | (3,390) | 61,864 | 27,262 | 5,777 | (3,055) | 29,984 | 31,880 | 36,570 |
Information technology equipment, in-house-developed and purchased software |
122,788 | 837 | 8,915 | 132,540 | 49,019 | 19,173 | (1,861) | 66,331 | 66,209 | 73,769 |
Vehicles | 24,348 | 3,224 | (817) | 26,755 | 18,360 | 2,534 | (817) | 20,077 | 6,678 | 5,988 |
Assets under construction |
94,153 | 37,203 | (4,627) | 126,729 | 0 | 0 | 0 | 0 | 126,729 | 94,153 |
Total | 452,879 | 48,815 | 81 | 501,775 | 140,550 | 32,378 | (5,733) | 167,195 | 334,580 | 312,329 |
The following table presents details of accounts payable and accrued liabilities:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Payables to external parties | 45,877 | 45,088 |
Payables to other Federal Government departments and agencies | 1,876,369 | 48,948 |
Accrued salary, vacation pay and compensatory leave | 98,077 | 82,147 |
Total | 2,020,323 | 176,183 |
The following table presents details on the memorandums of understanding (MOUs) that have been established between the provinces and the Agency, whereby the Agency collects provincial sales, alcohol and tobacco taxes on behalf of the provinces and remits these collections directly to the provinces.
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Payable to provinces, beginning of year | 8,242 | 7,569 |
Receipts from taxpayers | 102,245 | 78,779 |
Refunds to taxpayers | (1,249) | (1,578) |
Payments to provinces | (102,331) | (76,528) |
Payable to provinces, end of year | 6,907 | 8,242 |
The deposit accounts were established to record cash and securities required to guarantee payment of customs duties and excise taxes on imported goods pursuant to the Customs Act and the Excise Tax Act and to guarantee the compliance of transporters and individuals with the provisions of the Immigration and Refugee Protection Act.
The following table presents details on the deposit accounts:
Opening Balance |
Receipts | Payments | Closing Balance |
|
---|---|---|---|---|
(in thousands of dollars) | ||||
Guarantee deposit accounts | 36,248 | 12,432 | (14,198) | 34,482 |
Other deposit accounts | 4,575 | 490 | 0 | 5,065 |
Total deposit accounts | 40,823 | 12,922 | (14,198) | 39,547 |
The Agency'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 two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec pension plan benefits and they are indexed to inflation.
Both the employees and the Agency contribute to the cost of the Plan. The 2007-2008 expense amounts to $26,513,000 ($21,622,000 in 2006-2007), which represents approximately 2.6 times the contributions made by employees.
The Agency'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.
The Agency 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 | 168,061 | 118,288 |
Expense for the year | 26,158 | 59,390 |
Benefits paid during the year | (11,435) | (9,617) |
Accrued benefit obligation, end of year | 182,784 | 168,061 |
Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the Agency is obligated or likely to be obligated to incur such costs. The Agency identified one additional site in 2008 (one additional site in 2007) where such action is possible and for which a liability of $770,000 ($870,000 in 2007) has been recorded. The Agency’s ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued in the year in which they become known.
Claims have been made against the Agency in the normal course of operations. Legal proceedings for claims totalling approximately $121,000,000 ($191,000,000 in 2007) were still pending as at March 31, 2008. In addition, appeals for previously assessed customs duties, excise duties, GST and HST have been received in the amount of $89,000,000 ($76,000,000 in 2007).
Some of these claims and appeals 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 and expense are recorded in the financial statements. As at March 31, 2008, the Agency has recorded an estimated liability
of $290,000 ($290,000 in 2007) in relation to claims and appeals.
The nature of the Agency’s activities can result in large multi-year contracts and obligations whereby the Agency will be obligated to make future payments when the services are received.
The only significant contractual obligation that can be reasonably estimated relates to an immigration detention centre located in Toronto. Total contractual obligation for this centre amounts to $23,000,000 for the next fiscal year.
The Agency is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms. Also during the year, the Agency received services, which were obtained without charge from other government departments as presented in part (a).
During the year, the Agency received without charge from other departments, accommodation, legal services, workers’ compensation coverage and the employer’s contribution to the health and dental insurance plans. These services without charge have been recognized in the Agency’s statement of operations as follows:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Accommodation | 56,388 | 52,062 |
Employer’s contribution to the health and dental insurance plans | 67,509 | 62,388 |
Workers' compensation coverage | 523 | 452 |
Legal services | 4,861 | 4,398 |
Total | 129,281 | 119,300 |
The Government has structured some of its administrative activities for efficiency and cost-effectiveness such 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 the Agency’s statement of operations.
The Agency has arrangements with the Canada Revenue Agency for the provision of information technology services, which are paid for on a quarterly basis (total of $131,590,000 for 2008 and $97,406,000 in 2007).