2010-2011 Financial Statements

Statement of Management Responsibility Including Internal Control Over
Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011 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 based on 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 fulfill 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 in the preparation of the Public Accounts of Canada, and included in the Office’s Departmental Performance Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that the assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Office; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting (ICFR).

An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.

The system of ICFR is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The effectiveness and adequacy of the Office's system of internal control is reviewed by the Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Information Commissioner of Canada.

The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the Office of the Information Commissioner of Canada which does not include an audit opinion on the annual assessment of the effectiveness of the Office's internal controls over financial reporting.

Original signed by

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Suzanne Legault
Information Commissioner of Canada

Original signed by

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Layla Michaud, CFO
Acting Director General,
Corporate services

 

 

 

 

Ottawa, Canada
August 3, 2011

 

Statement of Financial Position

As at March 31 (in dollars)	2011	2010
Assets
Financial assets
Cash	800	800
Due from the Consolidated Revenue Fund	907,469	696,933
Accounts receivable (Note 4)	65,915	33,707
Total financial assets	974,184	731,440
Non-financial assets
Prepaid expenses	27,024	17,769
Tangible capital assets (Note 5)	1,024,295	895,655
Total non-financial assets	1,051,319	913,424
TOTAL	2,025,503	1,644,864

 

Liabilities and Equity of Canada

As at March 31 (in dollars)	2011	2010
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities (Note 6)	736,936	536,604
Accrued employee salaries	230,882	150,415
Vacation pay and compensatory leave	397,779	379,779
Employee future benefits (Note 7(b))	1,832,421	1,623,982
Total liabilities	3,198,018	2,690,780
Equity of Canada (Note 8)	(1,172,515)	(1,045,916)
TOTAL	2,025,503	1,644,864

Approved by:

Original signed by

---

Suzanne Legault
Information Commissioner of Canada

Original signed by

---

Layla Michaud, CFO
Acting Director General,
Corporate services

 

 

 

 

Ottawa, Canada
August 3, 2011

 

Statement of Operations

For the year ended March 31 (in dollars)	2011	2010
Expenses
Compliance with access to information obligations	10,314,239	9,171,322
Internal Services	4,183,957	4,248,954
	14,498,196	13,420,276
Net cost of operations	14,498,196	13,420,276

Segmented information (Note 11)

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

Statement of Equity of Canada

For the year ended March 31 (in dollars)	2011	2010
Equity of Canada, beginning of the year	(1,045,916)	(795,476)
Net cost of operations	(14,498,196)	(13,420,276)
Services provided without charge by other government departments (Note 9)	1,802,160	(13,420,276)
Net cash provided by Government	12,358,901	11,657,081
Change in due from Consolidated Revenue Fund	210,536	(153,249)
Equity of Canada, end of the year	(1,172,515)	(1,045,916)

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

Statement of Cash Flow

For the year ended March 31 (in dollars)	2011	2010
Operating activities
Net cost of operations	14,498,196	13,420,276
Non-cash items:
Amortization of tangible capital assets	(254,056)	(251,944)
Services provided without charge by other government departments (Note 9)	(1,802,160)	(1,666,004)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable	32,208	(91,506)
Increase in prepaid expenses	9,255	7,349
Increase in liabilities	(507,238)	(243,664)
Cash used in operating activities	11,976,205	11,174,507
Capital investing activities
Acquisition of tangible capital assets	382,696	482,574
Cash used in capital investing activities	382,696	482,574
Net cash provided by Government of Canada	12,358,901	11,657,081

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

Notes to the Financial Statements

For the year ended March 31

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 Office is listed under Schedule I.1 of the Financial AdministrationAct and is funded through annual appropriations. The Information Commissioner is an independent Agent of Parliament appointed by the Governor-in-Council following approval of the appointment by resolution of the Senate and the House of Commons. The Commissioner is accountable to Parliament for the results achieved by the Office.

The Office has two major program activities:

Compliance with access to information obligations: The Access to Information Act is the legislative authority for the oversight activities of the Information Commissioner, which are: to investigate complaints from individuals and corporations; to review the performance of government institutions; to report the results of investigations/reviews and recommendations to complainants, government institutions, and Parliament; to pursue judicial enforcement; and to provide advice to Parliament on access to information matters.

Internal Services: Internal Services are group of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These activities and services are: Management and Oversight: Human Resources Management; Financial Management; Information Management and Technology; Communications; Access to Information and Privacy; Material and Acquisition Services; Travel and Other Administrative Services; and Internal Audit. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

The Access to Information Act is the statutory authority for the activities of the Information Commissioner and the Office, whose mission is to defend and protect the public’s right of access to government information. In fulfilling this mission, the Office is guided by the following objectives, which form the basis of its Strategic Plan for 2011-2014:

• Conduct efficient, fair and confidential investigations into access complaints and issues. To carry out investigations and effectively resolve non-compliance issues, the Commissioner may use various powers at her disposal, including the conduct of formal inquiries, where required. She may also bring complex and contentious issues before the courts for enforcement or interpretation, while influencing jurisprudence in favour of disclosure. The goal is to become a centre of investigative and legal expertise on access matters;

• Provide expert advice to Parliament and institutions to maximize compliance with the Act and modernize the access to information regime. To this end, the Office acts as a catalyst for the convergence of access to information and open government standards. The goal is to reverse the declining trends in timeliness and disclosure of public sector information;

• Create an exceptional workplace driven by talent management and an enabling infrastructure and guided by four core values, as defined by the Office staff: excellence in service delivery, leadership, integrity and respect.

2. Significant accounting policies

These financial statement have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles, except as disclosed in Note 10 - Net Debt Indicator.

(a) Parliamentary authorities

The Office of the Information Commissioner of Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities 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 authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting.

(b) 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 received by the Office is 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 Government.

(c) Due from the Consolidated Revenue Fund

Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further appropriations to discharge its liabilities.

(d) Expenses

• Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

• Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, audit services and payroll and cheque issuance services are recorded as operating expenses at their estimated cost.

(e) Accounts receivable

Accounts receivable are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

(f) Tangible capital assets

All tangible capital assets and leasehold improvements having 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 intangible 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

(g) Employee future benefits

1. 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.

2. Severance benefits: Employees of the Office of the Information Commissioner of Canada 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.

(h) Measurement uncertainty

The preparation of these financial statements 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 authorities

The Office receives most of its funding through annual Parliamentary authorities. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary authorities 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 authorities used:

(in dollars)	2011	2010
Net cost of operations	14,498,196	13,420,276
Adjustments for items affecting net cost of operations but not affecting authorities
Amortization of tangible capital assets	(254,056)	(251,944)
Services provided without charge by other government departments	(1,802,160)	(1,666,004)
Increase in vacation pay and compensatory leave	(14,957)	(165,804)
Increase in employee future benefits	(208,439)	(368,458)
Other	2,665	4,919
	12,221,249	10,972,985
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	382,696	482,574
Increase in prepaid expenses	9,255	7,349
	391,951	489,923
Current year authorities used	12,613,200	11,462,908

(b) Authorities provided and used:

(in dollars)	2011	2010
Authorities Provided:
Vote 40 - Operating expenditures	11,407,386	10,508,145
Statutory amounts	1,353,822	1,136,763
Less	12,761,208	11,644,908
Lapsed: Operating	(148,008)	(182,000)
Current year authorities used	12,613,200	11,462,908

4. Accounts receivable

The following table presents details of the Office's accounts receivable balances:

(in dollars)	2011	2010
Accounts receivable – External parties	1,156	17,841
Accounts receivable – Other government departments	64,759	15,866
	65,915	33,707

5. Tangible capital assets

Cost (in dollars)	Opening Balance	Acquisitions	Disposals	Closing Balance
Telecommunications equipment	291,027	2,654	-	293,681
Informatics hardware	421,621	118,353	-	539,974
Computer software	594,065	15,394	-	609,459
Furniture and fixtures	752,350	26,126	-	778,476
Motor vehicles	29,662	-	-	29,662
Leasehold improvements	642,299	20,893	-	663,192
Work in progress	-	199,276	-	199,276
	2,731,024	382,696	-	3,113,720

 

Accumulated amortization (in dollars)	Opening Balance	Acquisitions	Disposals	Closing Balance
Telecommunications equipment	249,316	20,845	-	270,161
Informatics hardware	329,226	52,199	-	381,425
Computer software	568,005	16,280	-	584,285
Furniture and fixtures	304,575	59,641	-	364,216
Motor vehicles	2,966	2,966	-	5,932
Leasehold improvements	381,281	102,125	-	483,406
	1,835,369	254,056	-	2,089,425

 

Net book value (in dollars)	Opening Balance		Closing Balance
Telecommunications equipment	41,711		23,520
Informatics hardware	92,395		158,549
Computer software	26,060		25,174
Furniture and fixtures	447,775		414,260
Motor vehicles	26,696		23,730
Leasehold improvements	261,018		179,786
Work in progress	-		199,276
	895,655		1,024,295

 

Amortization expense for the year ended March 31, 2011 is $254,056 (2010 - $251,944).

6. Accounts payable and accrued liabilities

The following table presents details of the Office's accounts payable and accrued liabilities balances:

(in dollars)	2011	2010
Accounts payable – External parties	677,882	285,152
Accounts payable – Other government departments	59,054	251,452
	736,936	536,604

7. Employee future benefits

(a) Pension benefits

The Office of the Information Commissioner of Canada's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and the Office contribute to the cost of the Plan. The 2010-11 expense amounts to $950,383 ($820,743 in 2009-10), which represents approximately 1.9 times (1.9 times in 2009-10) 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. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)	2011	2010
Accrued benefit obligation, beginning of year	1,623,982	1,255,524
Expense for the year	307,080	368,458
Benefits paid during the year	(98,641)	-
Accrued benefit obligation, end of year	1,832,421	1,623,982

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 authorities. Significant components of this amount are employee severance benefits and vacation pay liabilities. These amounts are expected to be funded by authorities in future years as they are paid.

9. Related party transactions

The Office is related as a result of common ownership to all Government 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 received common services which were obtained without charge from other Government departments as disclosed below.

a) Common services provided without charge by other government departments

During the year the Office received services without charge from certain common service organizations, related to accommodation, employer's contribution to the health and dental insurance plans, audit services and payroll and cheque issuance services. These services provided without charge have been recorded in the Office's Statement of Operations as follows:

(in dollars)	2011	2010
Public Works and Government Services Canada – accommodation	996,184	974,802
Treasury Board Secretariat – employer’s contribution to the health and dental insurance plans	682,728	556,329
Office of the Auditor General of Canada – audit services	118,000	130,000
Public Works and Government Services Canada – payroll and cheque issuance services	5,248	4,873
	1,802,160	1,666,004

 

b) Other transactions with related parties

(in dollars)	2011	2010
Expenses - Other government departments and agencies	1,698,736	2,322,567

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10. Net debt indicator

The presentation of the net debt indicator and a statement of change in net debt is required under Canadian generally accepted accounting principles.

Net debt is the difference between a government's liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventories. The Office is financed by the Government of Canada through appropriations and operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General of Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office are paid by the CRF. Under this government business model, assets reflected on the Office's financial statements, with the exception of the Due from the CRF, are not available to use for the purpose of discharging the existing liabilities of the Office. Future appropriations generated by the Office's operations would be used to discharge existing liabilities.

(in dollars)	2011	2010
Liabilities
Accounts payable and accrued liabilities	736,936	536,604
Accrued employee salaries	230,882	150,415
Vacation pay and compensatory leave	397,779	379,779
Employee future benefits	1,832,421	1,623,982
Total Financial Liabilities	3,198,018	2,690,780

 

Financial Assets	2011	2010
Cash	800	800
Due from the Consolidated Revenue Fund	907,469	696,933
Accounts receivable	65,915	33,707
Total Financial Assets	974,184	731,440
Net Debt Indicator	2,223,834	1,959,340

11. Segmented information

Presentation by segment is based on the Office's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred for the main program activities, by major object of expenses. The segment results for the period are as follows:

(in dollars)	Compliance with access to information obligations	Internal Services	2011	2010
Expenses
Salaries and employee benefits	7,448,934	3,066,441	10,515,375	9,016,979
Professional and special services	1,422,043	442,999	1,865,042	2,454,088
Accommodation	689,576	306,609	996,185	974,801
Equipment	163,451	107,248	270,699	125,768
Amortization	172,757	81,299	254,056	251,944
Transportation and communications	129,979	57,087	187,066	225,174
Information	135,050	35,884	170,934	147,578
Utilities, materials and supplies	70,475	26,566	97,041	97,357
Rentals	42,883	45,357	88,240	57,394
Repairs and maintenance	37,430	7,939	45,369	68,723
Other	1,661	6,528	8,189	470
Net Cost of Operations	10,314,239	4,183,957	14,498,196	13,420,276

Annex A