2009-2010 Financial Statements

Statement of Management Responsibility

OFFICE OF THE INFORMATION COMMISSIONER OF CANADA

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010 and all information contained in these statements rests with the management of the Office of the Information Commissioner of Canada (the "Office"). 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 judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Office’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Office’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 the Office’s 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 Office.

Management is also supported and assisted by a program of internal audit services. The Office has an Audit Committee. The responsibilities of the Committee are to provide the Commissioner with independent, objective advice, guidance and deliberation on the adequacy of the Office's control and accountability processes.

The financial statements of the Office of the Information Commissioner of Canada have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

(Original signed by)

Suzanne Legault

Layla Michaud

Information Commissioner of Canada

Acting Assistant Commissioner,
Policy, Communications and Operations

Ottawa, Canada

July 16, 2010

Statement of Financial Position

OFFICE OF THE INFORMATION COMMISSIONER OF CANADA



As at March 31		2010	2009
(in dollars)
Assets
Financial assets
Cash				800	800
Due from the Consolidated Revenue Fund		696,933	850,182
Accounts receivable (Note 4)		33,707	125,213

Total financial assets			731,440	976,195

Non-financial assets
Prepaid expenses			17,769	10,420
Tangible capital assets (Note 6)		895,655	665,025

Total non-financial assets		913,424	675,445

TOTAL				1,644,864	1,651,640

Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities (Note 5)		536,604	577,578
Accrued employee salaries		150,415	400,040
Vacation pay and compensatory leave		379,779	213,974
Employee severance benefits (Note 7(b ))		1,623,982	1,255,524

Total liabilities			2,690,780	2,447,116

Equity of Canada (Note 8)	(1,045,916)	(795,476)

TOTAL				1,644,864	1,651,640



The accompanying notes are an integral part of the financial statements

Approved by: (Original signed by)		Approved by: (Original signed by)
Suzanne Legault		Layla Michaud
Information Commissioner of Canada	Acting Assistant Commissioner, Policy, Communications and Operations

Ottawa, Canada
July 16, 2010

Statement of Operations



OFFICE OF THE INFORMATION COMMISSIONER OF CANADA
For the year ended March 31
(in dollars)				2010	2009
Expenses	Compliance with access to information obligations	Internal Services	Total	Total
Salaries and employee benefits	6,014,850	3,002,129	9,016,979	7,071,162
Professional and special services	1,829,117	625,170	2,454,287	2,600,670
Accommodation	647,168	327,633	974,801	950,933
Amortization	171,322	80,622	251,944	148,598
Transportation and communications	158,827	66,347	225,174	208,339
Information	105,498	42,080	147,578	128,270
Equipment	87,806	37,962	125,768	137,651
Utilities, materials and supplies	71,687	25,670	97,357	87,141
Repairs and maintenance	43,769	24,954	68,723	120,881
Rentals	41,227	16,167	57,394	49,087
Other		250	220	470	430

Total Operating Expenses	9,171,521	4,248,954	13,420,475	11,503,162

Revenues
Miscellaneous revenues	0	199	199	525

Net cost of operations	9,171,521	4,248,755	13,420,276	11,502,637


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

Statement of Equity of Canada

OFFICE OF THE INFORMATION COMMISSIONER OF CANADA

For the year ended March 31	2010	2009
(in dollars)

Equity of Canada, beginning of the year	(795,476)	(655,082)
	Net cost of operations	(13,420,276)	(11,502,637)
	Services received without charge from other government departments (Note 9)	1,666,004	1,530,842
	Net cash provided by Government (Note 3 (c) )	11,657,081	9,607,631
	Change in Due from Consolidated Revenue Fund	(153,249)	223,770

Equity of Canada, end of the year	(1,045,916)	(795,476)



The accompanying notes are an integral part of the financial statements.

Statement of Cash Flow

OFFICE OF THE INFORMATION COMMISSIONER OF CANADA

For the year ended March 31	2010	2009
(in dollars)
Operating activities
Net cost of operations	13,420,276	11,502,637

Non-cash items:
Amortization of tangible capital assets	(251,944)	(148,598)
Services received without charge from other government departments (Note 9)	(1,666,004)	(1,530,842)

Variations in Statement of Financial Position:
Decrease in accounts receivable	(91,506)	(34,677)
Increase (decrease) in prepaid expenses	7,349	(4,249)
Increase in liabilities	(243,664)	(479,723)

Cash used by operating activities	11,174,507	9,304,548

Capital investment activities
Acquisition of tangible capital assets	482,574	303,083

Cash used for capital investment activities	482,574	303,083


Net cash provided by Government of Canada	11,657,081	9,607,631



The accompanying notes are an integral part of the financial statements

Notes to the Financial Statements

For the year ended March 31


OFFICE OF THE INFORMATION COMMISSIONER OF CANADA

1. Authority and objectives
	The Office of the Information Commissioner of Canada (the Office), was created under the Access to Information Act, which came into force on July 1, 1983. The Information Commissioner is an independent officer of Parliament appointed by the Governor-in-Council following approval of the nominee by resolution of the Senate and the House of Commons. The Office is listed under Schedule I.1 of the Financial Administration Act and is funded through annual appropriations. The Commissioner is accountable for, and reports directly to Parliament on the results achieved. The Access to Information Act is the legislative authority for the activities of the Information Commissioner and the Office. The objectives of the Office are:

	√ to deliver timely, thorough and fair investigations of complaints made by individuals denied information by the government;
	√ to encourage a culture of openness within the federal public service;
	√ to persuade federal government institutions to adopt information practices in keeping with the Access to Information Act;
	√ to bring appropriate issues of interpretation of the Access to Information Act before the Federal Court; and
	√ to ensure that Parliament is informed of the activities of the Commissioner’s Office, the general state of health of the right of access and any matter dealt within the access law requiring reform.

2. Significant accounting policies
	(a) Basis of presentation The financial statements of the Office of the Information Commissioner of Canada have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.
	(b) Parliamentary appropriations The Office of the Information Commissioner of Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Office 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.
	(c) Net cash provided by Government The Office of the Information Commissioner of Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash receipts of the Office are deposited to the CRF and all cash disbursements made by the Office are paid from the CRF. The net cash provided by the government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
	(d) Due from the Consolidated Revenue Fund Due from the CRF represents the amount of cash that the Office is entitled to draw from the Consolidated Revenue Fund without further appropriations, in order to discharge its liabilities.
	(e) Revenues Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
	(f) Expenses
	√ Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
	√ Services received without charge from other government departments are recorded as operating expenses at their estimated cost.
	(g) Accounts receivable Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
	(h) Tangible capital assets All tangible capital assets and leasehold improvements providing multi-year benefits to the Office with an initial cost of $2,500 or more are recorded at their acquisition cost. Similar items with a cost less than $2,500 are included in the statement of operations. The Office does not capitalize intagible assets. Amortization of tangible capital assets is done on a straight line basis over the estimated useful life of the asset as follows:
	Asset class	Amortization Period

	Telecommunications equipment	10 years
	Informatics hardware	3 years
	Computer software	3 years
	Furniture and fixtures	10 years
	Motor vehicles	10 years
	Leasehold Improvements	Lesser of the remaining term of the lease or useful life of the improvement
	(i) Employee future benefits
	i Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada. The Office’s contributions to the plan are charged to expenses in the year incurred and represent the total pension obligation of the Office to the Plan. Current legislation does not require the Office to make contributions for any actuarial deficiencies of the Plan.
	ii Severance benefits: Employees of the Office of the Information Commissioner of Canada are entitled to severance benefits under labour contracts or conditions of employment. The cost of these benefits is 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.
	(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 the expected useful life of tangible capital assets and employee severance benefits. 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 Office 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 Office 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:
	(in dollars)					2010	2009

	Net cost of operations				13,420,276	11,502,637

	Adjustments for items affecting net cost of operations but not affecting appropriations
	Amortization of tangible capital assets	(251,944)	(148,598)
	Services received without charge from other government departments	(1,666,004)	(1,530,842)
	Change in vacation and compensatory leave	(165,804)	(24,742)
	Change in employee severance benefits	(368,458)	(311,349)
	Other	4,919	48,396

						10,972,985	9,535,502
	Adjustments for items not affecting net cost of operations but affecting appropriations:
	Acquisition of tangible capital assets		482,574	303,083
	Change in prepaid expenses		7,349	(4,249)

						489,923	298,834

	Current year appropriations used	11,462,908	9,834,336

	(b) Appropriations provided and used:

	(in dollars)					2010	2009

	Parliamentary appropriations voted:
	Vote 40 - Operating expenditures	10,508,145	9,383,235
	Statutory amounts: Contributions to employee benefit plans		1,136,763	844,221

						11,644,908	10,227,456
	Lapsed appropriations				(182,000)	(393,120)

	Current year appropriations used	11,462,908	9,834,336


	(c) Reconciliation of net cash provided by Government to current year appropriations used:
	(in dollars)				2010	2009

	Net cash provided by Government		11,657,081	9,607,631
	Variation in cash and accounts receivable		91,506	34,677
	Variation in accounts payable, accrued liabilities and accrued employee salaries		(290,599)	143,632
	Other adjustments					4,920	48,396

	Current year appropriations used		11,462,908	9,834,336

4. Accounts receivable
	(in dollars)					2010	2009

	Accounts Receivable – External parties		17,841	584
	Accounts Receivable – Other government departments	15,866	124,629

	Total					33,707	125,213


5. Accounts Payable and Accrued Liabilities
	(in dollars)					2010	2009

	Accounts Payable – External parties	285,152	418,075
	Accounts Payable – Other government departments	251,452	159,503

	Total					536,604	577,578


6. Tangible capital assets
	Cost			Opening Balance	Acquisitions	Disposals	Closing Balance
	(in dollars)

	Telecommunications equipment		291,027	-	-	291,027
	Informatics hardware		359,451	62,170	-	421,621
	Computer software		586,477	7,588	-	594,065
	Furniture and fixtures			667,911	84,439	-	752,350
	Motor vehicles			29,662	-	-	29,662
	Leasehold improvements	313,922	328,377	-	642,299

				2,248,450	482,574	-	2,731,024

	Accumulated amortization			Opening Balance	Amortization	Disposals	Closing Balance
	(in dollars)

	Telecommunications equipment			220,704	28,612	-	249,316
	Informatics hardware			266,737	62,489	-	329,226
	Computer software			554,398	13,607	-	568,005
	Furniture and fixtures			233,257	71,318	-	304,575
	Motor vehicles			-	2,966	-	2,966
	Leasehold improvements			308,329	72,952	-	381,281

				1,583,425	251,944	-	1,835,369

				Opening Balance			Closing Balance
	Net book value
	(in dollars)

	Telecommunications equipment			70,323			41,711
	Informatics hardware			92,714			92,395
	Computer software			32,079			26,060
	Furniture and fixtures			434,654			447,775
	Motor vehicles			29,662			26,696
	Leasehold improvements			5,593			261,018

	Net Book Value			665,025			895,655

	Amortization expense for the year ended March 31, 2010 is $251,944 (2009 - $148,598).

7. Employee benefits
	(a) Pension benefits The Office of the Information Commissioner of Canada and all eligible 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 5 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 Office contribute to the cost of the Plan. The 2009-10 expense amounts to $820,743 ($609,528 in 2008-09), which represents approximately 1.9 times the contributions by employees.
	The Office’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 Office of the Information Commissioner of Canada provides severance benefits to its employees based on eligibility, years of service and final salary. The benefit plan is not pre-funded and thus has no assets, resulting in a plan deficit equal to the accrued benefit obligation. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
	(in dollars)					2010	2009

	Accrued benefit obligation, beginning of year	1,255,524	944,175
	Expense for the year	368,458	494,143
	Benefits paid during the year	-	(182,794)

	Accrued benefit obligation, end of year	1,623,982	1,255,524


8. Equity of Canada
	The equity of Canada represents liabilities incurred by the Office, net of tangible capital assets and prepaid expenses, that have not yet been funded through appropriations. Significant components of this amount are employee severance benefits and vacation pay liabilities. These amounts are expected to be funded by appropriations in future years as they are paid.

9. Services received without charge
	During the year, the Office received without charge from other departments, accommodation, employer’s contribution to the health and dental insurance plans, audit services and payroll and cheque issuance services. These services without charge have been recognized in the Office’s statement of operations as follows:

	(in dollars)					2010	2009

	Public Works and Government Services Canada – accommodation	974,802	950,933
	Treasury Board Secretariat – employer’s share of insurance premiums	556,329	465,221
	Office of the Auditor General of Canada – audit services	130,000	112,000
	Public Works and Government Services Canada – payroll and cheque issuance services	4,873	2,688

						1,666,004	1,530,842


10. Related party transactions
	The Office of the Information Commissioner of Canada is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The Office enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office expensed $3,988,571 ($3,157,842 in 2008-09) in the normal course of business with other government departments, agencies and Crown corporations. These expenses include services received without charge of $1,666,004 as described in Note 9.

11. Comparative information
	Certain comparative figures have been reclassified to conform to the current year's presentation.

2009-2010 Financial Statements

Statement of Management Responsibility

Statement of Financial Position

Assets

Liabilities and Equity of Canada

Statement of Operations

Expenses

Revenues

Statement of Equity of Canada

Statement of Cash Flow

Operating activities

Capital investment activities

Notes to the Financial Statements

1. Authority and objectives

2. Significant accounting policies

3. Parliamentary appropriations

4. Accounts receivable

5. Accounts Payable and Accrued Liabilities

6. Tangible capital assets

7. Employee benefits

8. Equity of Canada

9. Services received without charge

10. Related party transactions

11. Comparative information