2013-2014 Financial Statements

Text Version

Independent auditor’s report

To the Speaker of the House of Commons and the Speaker of the Senate

Report on the Financial Statements

I have audited the accompanying financial statements of the Office of the Information Commissioner of Canada, which comprise the statement of financial position as at 31 March 2014, and the statement  of operations and net financial  position, statement of change in net debt and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s   Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial  statements in order to design audit procedures  that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of the Office of the Information Commissioner of Canada as at 31 March 2014, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance  with Canadian public sector accounting standards.

Report on Other Legal and Regulatory Requirements

In my opinion, the transactions  of the Office of the Information Commissioner of Canada that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance  with the Financial Administration Act and regulations and the Access to Information Act.

Original signed by

Sylvain Ricard, CPA, CA
Assistant Auditor General  for the Auditor General of Canada

7 August 2014 
Ottawa, Canada

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, 2014 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 using the Government's accounting policies, which are based on Canadian public sector accounting standards.

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 (ICFR) designed to provide reasonable assurance that financial information is reliable, that 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 ICFR.

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

A Risk-based assessment of the system of ICFR for the year ended March 31, 2014 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Office's system of internal control is reviewed by the Audit and Evaluation 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 which does not include an audit opinion on the annual assessment of the effectiveness of the Office's internal controls over financial reporting.

Gatineau, Canada
August 7, 2014

Statement of Financial Position

As at March 31 (in dollars)	2014	2013
Liabilities
Accounts payable (Note 4)	$805,779	$570,707
Accrued employee salaries	262,157	368,178
Vacation pay and compensatory leave	498,403	302,523
Employee future benefits (Note 5(b))	356,445	750,221
Total liabilities	1,922,784	1,991,629
Financial assets
Due from the Consolidated Revenue Fund (Note 2(c))	959,100	876,893
Accounts receivable and advances (Note 6)	83,157	41,600
Total financial assets	1,042,257	918,493
Net debt	$880,527	$1,073,136
Non-financial assets
Prepaid expenses	30,260	54,112
Tangible capital assets (Note 7)	2,381,741	831,761
Total non-financial assets	2,412,001	885,873
Net financial position	$1,531,474	($187,263)

Contractual Obligations (Note 10)

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

Approved by:

Gatineau, Canada
August 7, 2014

Statement of Operations and Net Financial Position

For the year ended March 31 (in dollars)	2014 Planned Results	2014	2013
Expenses
Compliance with access to information obligations	$10,710,674	$11,399,051	$10,374,551
Internal Services	3,684,294	3,840,987	3,601,227
Cost of operations before government funding	14,394,968	15,240,038	13,975,778
Government funding
Net cash provided by Government	14,277,488	15,133,373	11,966,770
Change in due from Consolidated Revenue Fund (Note 2(c))	238,049	82,207	397,301
Services provided without charge by other government departments (Note 8(a))	1,815,584	1,822,135	1,866,139
Transfer of assets to other government department	-	(78,940)	-
Cost of operations after government funding	(1,936,153)	(1,718,737)	(254,432)
Net financial position – Beginning of year	(432,629)	(187,263)	(441,695)
Net financial position – End of year	$1,503,524	$1,531,474	($187,263)

Segmented Information (Note 9)

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

Statement of Change in Net Debt

For the year ended March 31 (in dollars)	2014 Planned Results	2014	2013
Cost of operations after government funding	($1,936,153)	($1,718,737)	($254,432)
Acquisition of tangible capital assets (Note 7)	2,140,965	2,139,203	99,668
Amortization of tangible capital assets (Note 7)	(416,286)	(336,704)	(363,939)
Net loss on disposal of tangible assets  (Note 7)	-	(173,579)	-
Transfer to other government department	-	(78,940)	-
Total change due to tangible capital assets	1,724,679	1,549,980	(264,271)
Increase (decrease) in prepaid expenses	473	(23,852)	22,583
Net decrease in net debt	(211,001)	(192,609)	(496,120)
Net debt – Beginning of year	1,211,097	1,073,136	1,569,256
Net debt – End of year	$1,000,096	$880,527	$1,073,136

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

Statement of Cash Flows

For the year ended March 31 (in dollars)	2014	2013
Operating activities
Cost of operations before government funding	$15,240,038	$13,975,778
Non-cash items:
Amortization of tangible capital assets (Note 7)	(336,704)	(363,939)
Net loss on disposal of tangible assets (Note 7)	(173,579)	-
Services provided without charge by other government departments (Note 8)	(1,822,135)	(1,866,139)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	41,557	(111,340)
Increase (decrease) in prepaid expenses	(23,852)	22,583
Increase in accounts payable	(235,072)	(116,487)
Decrease (increase) in accrued employee salaries	106,021	(172,322)
Decrease (increase) in vacation pay and compensatory leave	(195,880)	130,356
Decrease in employee future benefits	393,776	368,612
Cash used in operating activities	12,994,170	11,867,102
Capital activities
Acquisition of tangible capital assets (Note 7)	2,139,203	99,668
Cash used in capital activities	2,139,203	99,668
Net cash provided by Government of Canada	$15,133,373	$11,966,770

The accompanying notes form 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 Administration Act 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 requestors; 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. The Office of the Information Commissioner supports the Commissioner in carrying out these activities.

Internal Services: Internal Services are a 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; 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:

• Conduct efficient, fair and confidential investigations into access complaints and issues. To carry out investigations and effectively resolve non-compliance issues, the Information 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. Summary of significant accounting policies

These financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards.  The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(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 Net Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt are the amounts reported in the future-oriented financial statements included in the 2013-14 Report on Plans and Priorities.

Liquidity risk is the risk that the Office of the Information Commissioner of Canada will encounter difficulty in meeting its obligations associated with financial liabilities. The entity’s objective for managing liquidity risk is to manage operations and cash expenditures within the appropriation authorized by Parliament or allotment limits approved by the Treasury Board.

Each year, the Office of the Information Commissioner of Canada presents information on planned expenditures to Parliament through the tabling of Estimates publications.  These estimates result in the introduction of supply bills (which, once passed into legislation, become appropriation acts) in accordance with the reporting cycle for government expenditures.  The Office of the Information Commissioner of Canada exercises expenditure initiation processes such that unencumbered balances of budget allotments and appropriations are monitored and reported on a regular basis to help ensure sufficient authority remains for the entire period and appropriations are not exceeded.

Consistent with Section 32 of the Financial Administration Act, the Office of the Information Commissioner of Canada's policy to manage liquidity risk is that no contract or other arrangement providing for a payment shall be entered into with respect to any program for which there is an appropriation by Parliament or an item included in estimates then before the House of Commons to which the payment will be charged unless there is a sufficient unencumbered balance available out of the appropriation or item to discharge any debt that, under the contract or other arrangement, will be incurred during the fiscal year in which the contract or other arrangement is entered into.

The entity’s risk exposure and its objectives, policies and processes to manage and measure this risk did not change significantly from the prior year. 

(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. This amount is not considered to be a financial instrument.

(d) Expenses - Expenses are recorded on the accrual basis:

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

2. 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) 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. The Office's responsibility with regard to the Plan is limited to its contribution. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

2. Severance benefits: Employees of the Office of the Information Commissioner of Canada entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. The obligation relating to the benefits earned by employees is estimated based on their respective terms of employment.

3. Termination benefits: Termination benefits are generally payable when employment is terminated before the normal retirement date or whenever an employee accepts voluntary termination in exchange for these benefits. The Office recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees or providing termination benefits as a result of an offer made to encourage voluntary termination.

(f) Accounts receivable and advances

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

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The entity is not exposed to significant credit risk. The entity provides services to other government departments and agencies and to external parties in the normal course of business.  Accounts receivable are due on demand.  The majority of accounts receivable are due from other government of Canada departments and agencies where there is minimal potential risk of loss. The maximum exposure the entity has to credit risk equal to the carrying value of its accounts receivables.

(g) 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. The Office does not capitalize intangibles.

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

Software under development forms the basis of the Work in Progress account. They are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

(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 the 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 Net Financial Position 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 cost of operations before government funding to current year authorities used

(in dollars)	2014	2013
Cost of operations before government funding	$15,240,038	$13,975,778
Adjustments for items affecting cost of operations before government funding but not affecting authorities:
Amortization of tangible capital assets	(336,704)	(363,939)
Net loss on disposal of tangible capital assets	(173,579)	-
Services provided without charge by other government departments	(1,822,135)	(1,866,139)
Decrease (increase) in vacation pay and compensatory leave	(195,880)	130,356
Decrease in employee future benefits	393,776	368,612
Adjustment to accrued liabilities not charged to authorities	79,352	(79,352)
Other	4,874	5,113
	13,189,742	12,170,429
Adjustments for items not affecting cost of operations before government funding but affecting authorities:
Acquisition of tangible capital assets	2,139,203	99,668
Increase (decrease) in prepaid expenses	(23,852)	22,583
	2,115,351	122,251
Current year authorities used	$15,305,093	$12,292,680

(b) Authorities provided and used

(in dollars)	2014	2013
Authorities Provided:
Vote 40 – Program expenditures	$14,002,674	$11,456,172
Statutory amounts	1,340,124	1,387,495
	15,342,798	12,843,667
Less
Lapsed: Operating	(37,705)	(550,987)
Current year authorities used	$15,305,093	$12,292,680

4. Accounts payable

Accounts payable is measured at cost, the majority of which is due within six months of year-end.

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

(in dollars)	2014	2013
Accounts payable – External parties	$774,241	$531,906
Accounts payable – Other government departments	31,538	38,801
	$805,779	$570,707

5. 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 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/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and the Office contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013.  Each group has a distinct contribution rate.

The 2013-2014 expense amounts to $942,056 ($990,671 in 2012-2013).  For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012-2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012-2013) the employee contributions.

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 salary at termination of employment.

As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

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)	2014	2013
Accrued benefit obligation, beginning of year	$750,221	$1,118,833
Adjustment for the year	(7,026)	39,177
Benefits paid during the year	(386,750)	(407,789)
Accrued benefit obligation, end of year	$356,445	$750,221

(c) Termination benefits

During the year, the Office of the Information Commissioner recorded termination benefits totaling $123,000 ($0 in 2012-2013). 

6. Accounts receivable and advances

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

(in dollars)	2014	2013
Accounts receivable – Other government departments and agencies	$70,559	$40,800
Accounts receivable – External parties	11,798	-
Employee advances	800	800
	$83,157	$41,600

7. Tangible capital assets

Capital Asset Class	Cost
(in dollars)	Opening Balance	Acquisitions	Adjustments¹	Disposals and Write-Offs	Closing Balance
Telecommunications equipment	$371,337	$48,330	-	($280,656)	$139,011
Informatics hardware	548,634	54,387	-	(308,943)	294,078
Computer software	969,508	-	-	(29,463)	940,045
Furniture and fixtures	778,476	272,206	(188,683)	(570,790)	291,209
Motor vehicles	29,662	-	-	-	29,662
Leasehold improvements	663,192	1,764,280	-	(663,191)	1,764,281
Work in progress	87,417	-	-	-	87,417
	$3,448,226	$2,139,203	($188,683)	($1,853,043)	$3,545,703

Capital Asset Class	Accumulated Amortization
(in dollars)	Opening Balance	Amortization	Adjustments¹	Disposals and   Write-Offs	Closing Balance
Telecommunications equipment	$277,081	$11,795	-	($272,364)	$16,512
Informatics hardware	451,797	72,968	-	(308,942)	215,823
Computer software	774,425	124,626	-	(29,087)	869,964
Furniture and fixtures	478,199	54,846	(109,743)	(405,874)	17,428
Motor vehicles	11,864	2,966	-	-	14,830
Leasehold improvements	623,099	69,503	-	(663,197)	29,405
	$2,616,465	$336,704	($109,743)	($1,679,464)	$1,163,962

(1) Effective February 20, 2014, the Office transferred furniture with a net book value of $78,940 to Canada Border Services Agency. This transfer results from the Office’s mandatory relocation from 112 Kent, Ottawa to 30 Victoria, Gatineau.

Capital Asset Class	Net Book Value
(in dollars)	Opening Balance	Closing Balance
Telecommunications equipment	$94,256	$122,499
Informatics hardware	96,837	78,255
Computer software	195,083	70,081
Furniture and fixtures	300,277	273,781
Motor vehicles	17,798	14,832
Leasehold improvements	40,093	1,734,876
Work in progress	87,417	87,417
	$831,761	$2,381,741

8. 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 Statement of Operations and Net Financial Position as follows:

(in dollars)	2014	2013
Public Works and Government Services Canada – accommodation	$1,024,842	$1,016,393
Treasury Board Secretariat – employer’s contributions to the health and dental insurance plans	687,249	750,004
Office of the Auditor General of Canada – audit services	100,000	90,292
Public Works and Government Services Canada – payroll and cheque issuance services	10,044	9,450
	$1,822,135	$1,866,139

(b) Other transactions with related parties

(in dollars)	2014	2013
Expenses – Other government departments and agencies	$2,389,470	$1,999,595
Acquisitions of tangible capital assets¹ - Public Works and Government Services Canada	$1,868,449	-

(1) Acquisitions of tangible capital assets relates to the Office’s mandatory relocation from 112 Kent, Ottawa to 30 Victoria, Gatineau.

Expenses disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

The Office transferred Furniture and fixtures with a net book value of $78,940 to Canada Border Services Agency. The transfer is included in the adjustment columns in Note 7.

9. Segmented information

Presentation by segment is based on the Office's program activity architecture as described in Note 1. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in Note 2.  Direct expenses are charged to the relevant program activity with the exception of overhead related expenses which are allocated to the program activities based on a prorata basis based on full time equivalent per activity. The following table presents the expenses incurred for the 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	2014¹	2013
Expenses
Salaries and employee benefits	$7,772,846	$2,262,847	$10,035,693	$10,156,947
Professional and special services	2,018,091	502,711	2,520,802	1,934,762
Accommodation	794,188	237,225	1,031,413	1,016,393
Amortization	259,262	77,442	336,704	363,939
Transportation and communications	117,743	70,986	188,729	143,684
Rentals	71,188	63,374	134,562	134,537
Information	84,296	23,699	107,995	108,887
Equipment	80,094	543,770	623,864	47,635
Utilities, materials and supplies	44,387	11,128	55,515	46,795
Repairs and maintenance	23,301	7,450	30,751	12,023
Other	-	431	431	10,176
Net loss on disposal of tangible capital assets	133,655	39,924	173,579	-
Cost of operations before government funding	$11,399,051	$3,840,987	$15,240,038	$13,975,778

(1) Expenses for fiscal year 2014 are higher due to the costs related to the Office’s mandatory relocation from 112 Kent, Ottawa to 30 Victoria, Gatineau.

10. Contractual obligations

OIC has obligations arising in the normal course of operations for future years. These obligations include accommodation and human resources services.

(in dollars)	2015	2016	2017	2018	2019 and thereafter
Accomodation	$79,707	$80,561	$81,454	$82,385	$507,213
HR Services	270,400	-	-	-	-
	$350,107	$80,561	$81,454	$82,385	$507,213

11. Comparative information

Comparative figures have been reclassified to conform to the current year’s presentation.