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Section 3: Supplementary Information

3.1 CSA Contributions to Government of Canada Outcomes

Government of Canada Outcomes
Economy	Social	International
1. An Innovative and Knowledge-Based Economy 2. A Clean and Healthy Environment 3. Strong Economic Growth	1. Safe and Secure Communities 2. A Vibrant Canadian Culture and Heritage 3. Healthy Canadians	1. A Strong and Mutually Beneficial North American Partnership 2. A Safe and Secure World Through International Cooperation 3. A Prosperous Canada Through Global Commerce

CSA's Contributions to Government of Canada Economic Outcomes

The CSA's Strategic Outcome contributes to the development of Canada's economy as measured against the following outcomes outlined in Canada's Performance Report:

• An innovative and knowledge-based economy;
• A clean and healthy environment; and,
• A strong economic growth.

The space industry contributes to Canada's economic well-being and helps achieve a higher standard of living and quality of life for all Canadians. For example:

Through its Research and Development (R&D) investments and the resulting transfers of applications to the private and public sectors, the CSA's programs and activities attract highly skilled labour that contributes to Canada's knowledge-based economy; help enhance the Canadian space industry's competitiveness by encouraging dynamic trade relationships with other nations; and increase Canada's ability to compete in the global marketplace.

Earth observation missions drive some of the changes that are improving our quality of life by helping our government deliver on priorities such as protection of the environment, sustainable development, management of natural resources, understanding climate change and providing support for disaster management.

Satellite communications missions are a key element in linking all Canadians, including remote and northern communities, in a communication network.

CSA's Contributions to Government of Canada Social Outcomes

The CSA's Strategic Outcome contributes to Canada's social foundations as measured against the following outcomes outlined in Canada's Performance Report:

• Safe and secure communities;
• A vibrant Canadian culture and heritage; and,
• Healthy Canadians.

Space infrastructure offers privileged access and facilitates the dissemination of timely health, cultural, security and safety related information to all Canadians, no matter where they live in Canada. For example:

Earth observation, communication and navigation satellites drive some of the changes that are improving our quality of life by helping our government deliver on environment, safety and security priorities, allowing timely monitoring and maintenance of a healthy physical environment over Canada, and providing support for disaster management in such situations as floods, forest fires and earthquakes. They also provide essential communication tool to support law and order enforcement activities and enhance search and rescue capabilities.

Fundamental research in physical and life sciences, space exploration, science and technology encourages a nation's best minds to participate in visionary endeavours. It encourages science and technology literacy, particularly among our youth, who are inspired by role models such as Canadian astronauts, scientists and researchers, who encourage them to strive high. It contributes to the development of the new technologies that will maintain Canada's leadership in fields ranging from nanotechnology and robotics to healthcare.

Satellite communication is a powerful channel that plays a significant role in sharing Canadian culture and heritage. It is essential to provide all Canadians, no matter where they live in Canada, with timely access to knowledge and expertise related to health and education through a range of non-commercial services, including e-government, e-learning, tele-justice, tele-education, as well as tele-medicine disciplines such as tele-psychiatry, tele-radiology, tele-surgery, and tele-consultations.

CSA's Contributions to Government of Canada International Outcomes

The CSA's Strategic Outcome contributes to establishing Canada's international presence as measured against the following outcome outlined in Canada's Performance Report:

• A strong and mutually beneficial North American partnership;
• A safe and secure world through international cooperation; and,,
• A prosperous Canada trough global commerce.

Space is now recognized by industrialized nations as an essential strategic tool to meet social and economic objectives. Canada must therefore possess a space infrastructure, not only to meet its specific national needs, but also to play a tangible and visible role in responding to the issues that interest the international community. For example:

With its space exploration, science and technology endeavours, the majority of which involve international partners, the CSA plays an influential role in building bridges between an increasing number of space-faring countries. In striving to become one of the most advanced, connected, and innovative nations in the world, Canada offers and shares tremendous opportunities for the development and safety of the global community through the peaceful use of space. Canada is an official member of the International Charter on Space and Major Disasters, through which all members agree to use their Earth observation satellites when required to respond to disasters.

Canada's participation in the International Space Station (ISS) provides access to the unique space laboratory for Canadian researchers and ensures that Canada remains a partner of choice for future international partnerships that will explore the solar system and other planets.

Canada's participation, as a cooperating state, in European Space Agency (ESA) programs allows our industry and our scientific community to participate in forward-looking studies in Earth observation, space science and exploration as well as new telecommunications applications.

3.2 Financial Tables

3.2.1) Comparison of Planned to Actual Spending
(Including Full-Time Equivalents)

($ in millions)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
Space Based Earth Observation	113.3	80.4	126.6	130.8	126.3	66.6
Space Science and Exploration	136.7	144.5	153.7	154.8	153.8	140.2
Satellite Communications	32.0	32.8	27.9	27.9	29.2	26.9
Space Awareness and Learning	6.0	4.7	7.2	7.2	6.5	5.3
Generic Space Activities		52.0	52.7	52.7	60.4	52.7
Total	288.0	314.4	368.2	373.5	376.1	291.7
Less: Non-respendable revenue	(4.9)	(8.2)	N/A	(4.9)	N/A	(7.3)
Plus: Cost of services received without charge	3.8	4.7	N/A	4.7	N/A	4.2
Total Departmental Spending	286.9	310.6	N/A	373.3	N/A	288.6
Full-time Equivalents	596	609	N/A	709	N/A	604

Notes: Due to rounding, figures may not add to totals shown. Total Authorities are Main Estimates plus Supplementary Estimates and other Authorities. The difference between the Total Authorities and Actual Spending is mainly due to re-profiling of funds from 2007-2008 to future years. Planned Spending corresponds to Total Planned Spending in 2007-2008 RPP. Program Activities shown in this table include amounts for Corporate Services and Infrastructure. In 2007-2008, the CSA reviewed the amount for services received without charge from other government departments presented in 2006-2007. For the 2005-2006 fiscal year, information is show according to PAA 2005-2006.

3.2.2) Voted and Statutory Items

Voted or Statutory Item	Truncated Vote or Statutory Wording ($ in millions)	2007-2008
		Main Estimates	Planned Spending	Total Authorities	Actual
25	Operating expenditures	185.5	189.7	201.3	178.9
30	Capital expenditures	119.0	120.0	112.1	56.8
35	Grants and Contributions	52.6	52.6	53.6	46.7
(S)	Contributions to employee benefit plans	11.1	11.1	9.2	9.2
	Total	368.2	373.5	376.1	291.7

Notes: Total Authorities are Main Estimates plus Supplementary Estimates and other Authorities. Planned Spending corresponds to Total Planned Spending in 2007-2008 RPP.

3.2.3) Financial Statements of Departmental Corporations and Agents of Parliament

Canadian Space Agency
Statement of Cash Flow (unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2008	2007
		Restated (note 15)
Expenses (note 4)
Space Science and Exploration (SE)	199,611	193,004
Generic Space Activities in support of EO,      SE and SC (GSA)	57,140	45,686
Satellite Communications (SC)	24,751	33,385
Space Based Earth Observation (EO)	20,777	47,621
Space Awareness and Learning (AL)	5,396	4,860
Total Expenses	307,675	324,556
Expenses (note 5)
Space Science and Exploration (SE)	51	13
Generic Space Activities in support of EO,      SE and SC (GSA)	3,263	818
Satellite Communications (SC)	9	3
Space Based Earth Observation (EO)	3,995	7,428
Space Awareness and Learning (AL)	2	1
Total Revenues	7,320	8,263
Net Cost of Operations	300,355	316,293

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

Canadian Space Agency
Statement of Operations (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2008	2007
Assets
Financial Assets
Accounts receivable and advances (note 6)	5,102	3,637
Total Financial Assets	5,102	3,637
Non-Financial Assets
Prepaid expenses (note 7)	450,349	402,163
Tangible capital assets (note 8)	1,042,084	1,103,754
Total Non-Financial Assets	1,492,433	1,505,917
TOTAL	1,497,535	1,509,554
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities (note 9)	79,465	85,966
Deferred revenues (note 10)	458	12
Vacation pay and compensatory leave	3,385	3,407
Employee severance benefits (note 12)	9,838	9,964
Other liabilities (note 11)	15,642	18,083
	108,788	117,432
Equity of Canada	1,388,747	1,392,122
Total	1,497,535	1,509,554

Contractual obligations (note 13)

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

Canadian Space Agency
Statement of Financial Position (Unaudited)
As at March 31
(in thousands of dollars)

	2008	2007
		Restated (note 15)
Equity of Canada, beginning of year
Financial Assets	1,392,122	1,404,092
Net cost of operations	(300,355)	(316,293)
Current year appropriations used (note 3)	291,661	314,416
Revenue not available for spending	(7,257)	(8,240)
Refunds of previous year's expenses	(2,604)	(742)
Change in net position in the Consolidated Revenue Fund (note 3(c))	10,943	(5,851)
Services provided without charge by other government departments (note 14)	4,237	4,740
Equity of Canada, end of year	1,388,747	1,392,122

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

Canadian Space Agency
Statement of Equity of Canada (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2008	2007
		Restated (note 15)
Operating activities
Net cost of operations	300,355	316,293
Non-cash items:
- Amortization of tangible capital assets (note 8)	(108,573)	(90,963)
- Loss on write-offs of tangible capital assets	(2,084)	-
- Gain on transfer of tangible capital assets	-	85
- Gain on disposal of tangible capital assets	15	23
Services provided without charge by other government departments (note 14(a))	(4,237)	(4,740)
Variations in Statement of Financial Position:
- Increase in accounts receivable and advances	1,465	1,090
- Increase in prepaid expenses	48,186	36,837
- (Increase) decrease accounts payable and accrued liabilities	6,501	(8,842)
- (Increase) decrease deferred revenue	(446)	4,031
- (Increase) decrease vacation pay and compensatory leave	22	(202)
- (Increase) decrease employee severance benefits	126	(35)
- (Increase) decrease other liabilities	2,441	(2,236)
Cash used by operating activities	243,771	251,341
Capital investment activities
- Acquisition of tangible capital assets (note 8)	48,987	48,350
- Proceeds from disposal of tangible capital assets	(15)	(23)
- Land Transfer between departments	-	(85)
Cash used by capital investment activities	48,972	48,242
Financing activities
Net Cash provided by Government of Canada (note 3(c))	(292,743)	(299,583)

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

Canadian Space Agency
Notes to the Financial Statements (Unaudited)
For the Year Ended March 31, 2008

1. Authorizations and Goals

The Canadian Space Agency (the "Agency") was decreed a "Department" on March 1st, 1989 under the Financial Administration Act, Section 2, paragraph (b).

For its part, the Canadian Space Agency Act, on legal notice of the Prime Minister, and under Section 29 of the Act to establish the Canadian Space Agency and to provide for other matters in relation to space, was sanctioned on May 10, 1990 under Chapter 13 of the Laws of Canada (L.C. 1990). His excellence, the Governor-in-Council, had fixed the effective date of this Act at December 14, 1990. The objectives of the Canadian Space Program (CSP) are to ensure the development and application of space science and technology to meet Canadian needs and to ensure the development of an international competitive space industry in Canada.

According to the approved Program Activity Architecture (PAA), the Statement of operations was detailed by the following Program Activities (Business Lines):

• Space Based Earth Observation (EO)
  The program activity objective is to develop and make operational the use of space Earth Observation for the benefits of Canadian, especially in the fields of environment, resource and land use management, as well as security and foreign policy. In doing so, the Agency will maintain and expand Canada's leadership in Earth Observation technologies to obtain the timely, relevant and essential information we need to make judicious decisions about that share our needs and goals.
  
• Space Science and Exploration (SE)
  The program activity objective is to better understand the solar system and the universe; to expand our knowledge on the constituent elements and origins of life, and strengthen a human presence in space. In doing so, the Agency will sustain and increase Canada's contribution to humankind's scientific knowledge, to the exploration of our solar system and the universe and to the development of related technologies. This will advance supporting technologies and our fundamental and applies knowledge of chemistry, physics, life sciences by carrying out leading-edge experiments in the unique environment of space.
  
• Satellite Communications (SC)
  The program activity objective is to provide all Canadians with the means to participate and fully benefit from the global information age. In doing so, the Agency will uphold Canada's status as a world leaser in Satellite Communications, and extend the most advances products and services to all Canadians, everywhere.
  
• Space Awareness and Learning (AL)
  The program activity objective is to further public understanding and engagement with regards to space related issues, ultimately leading to improving the scientific literacy of Canadians by carrying out a national awareness and learning initiative in support of the Canadian Space Program.
  
• Generic Space Activities in support of EO, SE and SC (GSA)
  The program activity objective is to provide leadership, co-ordination and support to Earth Observation (EO), Space Science and Exploration (SE), and Satellite Communications (SC) Program Activities through technology research and space-qualification activities that are generic in their nature. The Agency commits to provide technologies and innovative space techniques, conceptual methods and testing that will satisfy developmental requirements for future missions and Canadian space activities.
  

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

a) Parliamentary Appropriations

The 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 two bases of reporting.

b) Net Cash Provided by the Government

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 provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

c) Change in net position in the Consolidated Revenue Fund

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.

d) Revenues

• Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
• Revenues that have been received but not yet earned are recorded as deferred revenues (see note 10).

e) Expenses

Expenses are recorded on the accrual basis:

• Grants are recognized in the year in which the conditions for payment are met;
• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement;
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment; and,
• Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

f) Employee Future Benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi employer plan administered by the Government of Canada. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the Agency's total obligation to the Plan. Current legislation does not require the Agency to make contributions for any actuarial deficiencies of the Plan.

• Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

g) Accounts and Loans Receivables

These are stated as amounts expected to be ultimately realized. A provision is made for external receivables where recovery is considered uncertain.

h) Foreign Exchange

Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on 31 March. Gains and losses resulting from foreign currency transactions are included in "others" under revenues and expenses.

i) Tangible Capital Assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, esthetic or historical value, assets located on Indian Reserves and museum collections.

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

Property Category	Useful Life
Buildings	30-40 years
Works and Infrastructures	30 years
Material and Equipment	10-20 years
Computer Material	5-7 years
Computer Software	3 years
Other Equipment including furniture	3-15 years
Motor Vehicles	5 years
Other Vehicles	10 years
Assets under construction	Once in service, in accordance with asset type

j) Measurement Uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

The Agency receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Agency has different net results of operations for the year on a government-funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) - Reconciliation of net cost of operations to current year appropriations used
	2008	2007
		Restated (note 15)
	($ in thousands)
Net Cost of Operations	300,355	316,293
Adjustments for items affecting net results but not affecting appropriations
Add (less):
Amortization of tangible capital assets (note 8)	(108,573)	(90,963)
Revenues not available for spending	7,257	8,240
Services provided without charge by other government      departments (note 14(a))	(4,237)	(4,740)
Refunds of previous year's expenses	2,604	742
Loss on write-offs of tangible capital assets	(2,084)	-
Gain on transfer of tangible capital assets	-	85
(Increase) decrease in employee severance benefits	126	(35)
(Increase) decrease in vacation pay and      compensatory leave	22	(202)
Gain on disposal of tangible capital assets	15	23
Other	(982)	(106)
Adjustments for items not affecting net results but affecting appropriations
Add (less):
Acquisitions of tangible capital assets (note 8)	48,987	48,350
Increase in prepaid expenses	48,186	36,837
Proceeds from disposal of tangible capital assets	(15)	(23)
Land transfer between departments	-	(85)
Current year appropriations used	291,661	314,416

(b) - Appropriations provided and used
	2008	2007
	($ in thousands)
Appropriations provided
Vote 25 - Operating expenditures	201,257	201,087
Vote 30 - Capital expenditures	112,078	116,364
Vote 35 - Grants and contributions	53,586	58,346
Statutory amounts	9,260	8,901
Less:
Appropriations available for future years	(15)	(23)
Lapsed appropriations: Operating	(22,361)	(9,100)
Lapsed appropriations: Capital	(55,260)	(59,649)
Lapsed appropriations: Grants and contributions	(6,871)	(1,510)
Statutory amounts	(13)	-
Current year appropriations used	291,661	314,416

(c) - Reconciliation of net cash provided by Government to current year appropriations used
	2008	2007
	($ in thousands)
Net cash provided by Government	292,743	299,583
Revenue not available for spending	7,257	8,240
Refunds of previous years' expenses	2,604	742
Change in net position in the Consolidated Revenue Fund
Increase in accounts receivable and advances	(1,465)	(1,090)
Increase (decrease) in accounts payable and      accrued liabilities	(6,501)	8,842
Increase (decrease) in deferred revenue	446	(4,031)
Increase (decrease) in others liabilities	(2,441)	2,236
Other	(982)	(106)
	(10,943)	5,851
Current year appropriations used	291,661	314,416

4. Expenses

The following table presents details of expenses by category:
	2008	2007
		Restated (note 15)
	($ in thousands)
Operating Expenses
Amortization of tangible capital assets (note 8)	108,573	90,963
Salaries and employee benefits	65,591	64,789
Professional and special services	60,469	73,898
Travel and Communications	8,200	8,356
Utilities, materials and supplies	5,026	5,700
Purchased repair and maintenance	2,625	2,688
Acquisition of machinery and material	2,111	18,423
Loss on write-offs of tangible capital assets	2,084	(85)
Information	1,404	1,236
Rentals	636	462
Other operating expenses	3,583	3,846
Total Operating Expenses	260,302	270,276
Transfer Payments
International organizations	36,944	33,127
Industry	10,151	20,806
Individuals	278	347
Total Transfer Payments	47,373	54,280
Total Expenses	307,675	324,556

5. Revenues

The following table presents details of expenses by category:
	2008	2007
	($ in thousands)
Revenues
Sale of rights and privileges	3,955	3,307
Sale of goods and services	3,221	946
Gain on disposal of tangible capital assets	15	23
Other fees and charges	-	3,972
Other non-tax revenue	129	15
Total Revenues	7,320	8,263

6. Accounts Receivables and Advances

The following table presents details of accounts receivable and advances:
	2008	2007
	($ in thousands)
Other federal departments or agencies (note 14(b))	2,734	2,976
External entities	2,383	679
Employee advances	23	19
Less: Allowance for doubtful accounts on external receivables	(38)	(37)
Total	5,102	3,637

7. Prepaid Expenses

The following table presents details of prepaid expenses
	2008	2007
	($ in thousands)
RADARSAT-2 prepaid services	445,136	395,405
Prepaid transfer payments	4,863	6,548
Other prepaid expenses	350	210
Total	450,349	402,163

8. Tangible Capital Assets

($ in thousands)
	Cost
Capital Asset Class	Opening Balance	Acquisitions	Transfers, Disposals and Write-Offs	Closing Balance
Land	85	-	-	85
Buildings	110,845	57	4,658	115,560
Works and infrastructures	279	-	-	279
Material and equipment	33,292	3,091	67	36,450
Computer material	11,393	1,008	-	12,401
Computer software	4,515	281	-	4,796
Other equipment	1,561,966	130	305,820	1,867,916
Motor vehicles	24	-	-	24
Other vehicles	161	52	-	213
Assets under construction	369,342	44,368	(312,629)	101,081
Total	2,091,902	48,987	(2,084)	2,138,805

($ in thousands)
	Accumulated Amortization			Net book Value
Capital Asset Class	Opening Balance	Amorti-zation	Transfers, Disposals and Write-Offs	Closing Balance	2008	2007
Land	-	-	-	-	85	85
Buildings	52,670	3,809	-	56,479	59,081	58,175
Works and infrastructures	181	29	-	210	69	98
Material and Equipment	22,069	1,568	-	23,637	12,813	11,223
Computer material	8,771	1,019	-	9,790	2,611	2,622
Computer software	1,699	1,640	-	3,339	1,457	2,816
Other equipment	902,600	100,501	-	1,003,101	864,815	659,366
Motor vehicles	23	1	-	24	-	1
Other vehicles	135	6	-	141	72	26
Assets under construction	-	-	-	-	101,081	369,342
Total	988,148	108,573	-	1,096,721	1,042,084	1,103,754

Amortization expense for the year ended March 31, 2008 is $108,573 (2007 - $90,963).

In 2007, the land was transferred from Transport Canada to the Canadian Space Agency at the nominal value of 1$.

9. Accounts Payable and Accrued Liabilities

The following table presents details of accounts payable and accrued liabilities
	2008	2007
	($ in thousands)
Accrued liabilities	51,241	45,067
Accounts payable	22,752	37,611
Contractor's holdback	2,650	1,528
Accrued salaries and wages	1,540	1,365
Accounts payable - Other Departments (note 14(b))	1,141	381
Other accounts payable	141	14
Total	79,465	85,966

10. Deferred Revenue

The following table presents details of revenues
	2008	2007
	($ in thousands)
Sodexho: Rent received in advance
Opening Balance, April 1	1	1
Plus: Receipts	-	1
Less: Earned rent during the year	1	1
Closing Balance, March 31	-	1
RADARSAT-2: Special purpose account to record funds received for the payment of expenses related to the reception, archiving, cataloguing and satellite acquisition services.
Opening Balance, April 1	-	-
Plus: Receipts	701	-
Less: Earned revenues during the year	252	-
Closing Balance, March 31	449	-
RADARSAT-2: Amount received to cover expenses for the accommodation and installation of MacDonald Dettwiler and Associates Ltd. (MDA) employees.
Opening Balance, April 1	11	9
Plus: Receipts	-	2
Less: Earned revenues during the year	2	-
Closing Balance, March 31	9	11
Closing Balance Total	458	12

11. Other Liabilities

	2008	2007
	($ in thousands)
Non-monetary exchange CSA/NASA	11,712	10,709
Contractor's holdbacks	3,826	7,270
Participation of provinces - RADARSAT-1	104	104
Total	15,642	18,083

a) Non-Monetary Exchange

Under the International Space Station Agreement, which was executed in 1998, and ratified by Canada in year 2000, following the passing of the Civil International Space Station Agreement Implementation Act, in 1999 the Agency signed a barter agreement with NASA in August 2001, which the fair value was estimated at $20,8 million U.S. Currently, all the costs are not available and the fair value of the yielded services must be revaluated when the identification of total costs will be possible. This agreement provides that the Agency exchanges a part of its utilization rights on the Space Station, access to the Canadian Microgravity Isolation Mount, and agrees to assume repair costs for its Special Purpose Dexterous Manipulator. In return, NASA will provide to the Agency, astronaut training, satellite and launch services. The transactions under this Barter Agreement may take place over the lifetime of the Space Station. During the fiscal years 2002 to 2008, the Agency received a part of astronaut training valued at $11,712 million CDN. As NASA did not exercise the option to access its proportion of Canada's utilization rights on the Space Station, a liability of $11,712 million CDN has been created by the Agency. Relative to this barter agreement or other agreements of the same kind that the Agency may enter into with its International Partners under the Agreement on the Space Station, the Treasury Board grants to the Agency an exemption under the Policy on Accounting for Non-Monetary Transactions and does not have to charge the transaction(s) to its appropriation.

b) Participation of provinces - RADARSAT-1

This specified purpose account was established to record moneys received for both cost-sharing and advance payments for RADARSAT scenes. RADARSAT-1 is an Earth Observation satellite to monitor environmental change and planets natural resources. It provides information to both commercial and scientific users in the fields of agriculture, cartography, hydrology, forestry, oceanography, ice studies and coastal monitoring.

12. Employee Benefits

a) Pension Benefits

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

Both the employees and the Agency contribute to the cost of the Plan. The 2007-2008 expense amounts to $6.72 million ($6.54 million in 2006-2007), which represents approximately 2.1 time (2.2 time in 2006-2007) the contributions 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.

b) Severance Benefits

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)
Accrued benefit obligation, beginning of year	9,9642	9,929
Plus: Expense for the year	342	408
Less: Benefits paid during the year	(468)	(373)
Accrued benefit obligation, end of year	9,838	9,964

13. Contractual Obligations

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

($ in thousands)
	2009	2010	2011	2012	2013 & Thereafter	Total
Acquisitions of goods and services	23	1	-	-	-	24
Transfer payments	34	29	22	13	17	115
Total	57	30	22	13	17	139

14. Related Party Transactions

The Agency is related as a result 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).

(a) Services provided without charge
During the year the Agency received without charge from other departments, accommodation, legal fees 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 Restated (note 15)
	($ in thousands)
Employer's contribution to the health and dental insurance plans	3,795	4,199
Legal Services	264	372
Accommodation	178	169
Total	4,237	4,740

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Agency's Statement of Operations.

(b) Payables and receivables outstanding at year-end with related parties
	2008	2007
	($ in thousands)
Accounts receivable with other government departments and agencies (note 6)	2,734	2,976
Accounts payable to other government departments and agencies (note 9)	1,141	381

15. Restatement of Comparative Information

In 2007-2008, the Agency reviewed the amount presented as services received without charge from other government departments for 2006-2007. Consequently, the comparative financial statements presented for the year ended March 31, 2007 have been restated. The effect of this adjustment is presented in the table below.

($ in thousands)	As previously stated	Effect of the Adjustment	Revised Amount
Statement of Operations:
Expenses
Space Science and Exploration (SE)	192,783	221	193,004
Generic Space Activities in support of EO, SE and SC (GSA)	45,634	52	45,686
Satellite Communications (SC)	33,347	38	33,385
Space Based Earth Observation (EO)	47,566	55	47,621
Space Awareness and Learning (AL)	4,854	6	4,860
Total Expenses	324,184	372	324,556
Net Cost of Operations	315,921	372	316,293
Statement of Equity of Canada:
Net cost of operations	(315,921)	(372)	(316,293)
Services provided without charge by other government departments	4,368	372	4,740
Statement of Cash Flow:
Net cost of operations	315,921	372	316,293
Services provided without charge by other government departments	(4,368)	(372)	(4,740)
Note 3(a) reconciliation of net cost of operations to current year appropriations used:
Net cost of operations	315,921	372	316,293
Services provided without charge by other government departments	(4,368)	(372)	(4,740)
Note 4 Expenses:
Professional and special services	73,526	372	73,898
Total Operating Expenses	269,904	372	270,276
Total Expenses	324,184	372	324,556
Note 14 Related Party Transactions:
Legal Services	-	372	372
Total	4,368	372	4,740

3.3 Annexes (Available on Line)

The following tables are reported on the Treasury Board of Canada Secretariat Web site at the following address: www.tbs-sct.gc.ca/est-pre/estime.asp

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