Treasury Board of Canada Secretariat
Symbol of the Government of Canada

ARCHIVED - Law Commission of Canada

Warning This page has been archived.

Archived Content

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.




2006-2007
Departmental Performance Report



Law Commission of Canada






The Honourable Rob Nicholson
Minister of Justice and Attorney General of Canada




Table of Contents

Section I: Overview

Section II: Analysis of Program Activities by Strategic Outcome

Section III: Supplementary Information

Section IV: Other Items of Interest



Section I: Overview

Minister's Message

Photo of Minister Rob NicholsonI submit to you the Law Commission of Canada's Departmental Performance Report for the fiscal year ending March 31st, 2007. This is the final such report, as the Commission ended in December of 2006.  I would like to thank all of those who worked at the Law Commission of Canada for their contribution.

 

 

Rob Nicholson
Minister of Justice and Attorney General of Canada


Management Representation Statement


I submit for tabling in Parliament, the 2006–2007 Departmental Performance Report for the Law Commission of Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006–2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  • It is based on the Commission's approved Strategic Outcome and Program Activity Architecture that were approved by the Treasury Board;
  • It presents consistent, comprehensive, balanced and reliable information; 
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.
The summary information on the results of program activities in Section II was prepared based on information contained in the Law Commission of Canada website.

Name:


Title:


Summary Information

Raison d'être

The mandate of the Law Commission of Canada was derived from the Law Commission of Canada Act, which came into force in April 1997. The mandate of the Commission was “to study and keep under systematic review, in a manner that reflects the concepts and institutions of the common and civil law systems, the law of Canada and its effects.”  The Commission was directed under section 3 of the Law Commission of Canada Act to focus on four orientations:

New Concepts of Law: The Commission was to work towards the development of new concepts of law and new approaches to law.

Efficiency and Accessibility: The Commission was to consider measures to make the legal system more efficient, economical and accessible.

Stimulating Critical Debate: The Commission was charged with stimulating critical debate about the law and how it operates in Canadian society. It was encouraged to forge productive networks with academic and other communities to ensure cooperation and coordination in law reform initiatives.

Eliminating Obsolescence and Anomalies: The Commission was to work towards the elimination of obsolescence and anomalies in the current law.

The Law Commission of Canada Act can be found on the Justice Canada's web site at: http://laws.justice.gc.ca/en/showtdm/cs/L-6.7 .

Financial Resources (thousands of dollars)


  2006–2007  
Planned Spending Total Authorities Actual Spending
3,173 3,182 2,178

Human Resources (FTEs)


 

2006–2007

 

Planned
11

Actual
7

Difference
4


Departmental Priorities


Status on Performance 2006–2007

Planned Spending

Actual
Spending

Strategic Outcome:
  • Canadian law that reflects the needs and values of Canadians, and is relevant, responsive, effective, equally accessible to all and just.
Priority No. 1:
Make recommendations for law reform (Ongoing)
Program Activity:
Issue the following reports to Parliament:
  • In Search of Security: The Future of Policing in Canada
  • What is a Crime?
Expected Results:
  • Stimulate debate in the government, the media, in other policy forums and in policing institutions about the role of private security agencies and how they should be regulated, identify the need for better communication and partnerships among the police and private security agencies and recommend steps to make this happen.
  • Provide policy makers with a framework that can be used to assess the consequences of choosing criminal law and other intervention strategies in response to unwanted behaviour.
Partially met 350 121
Priority No. 2:
Engage Canadians in law reform (ongoing)
Program Activity:
  • Improve strategic plans to engage Canadians in the law reform process
  • Review and improve the engagement of youth in debates around law reform
  • Prepare a strategy to improve linkages to the media to increase awareness of law reform
  • Host roundtables on exploratory topics
  • Issue a discussion paper accompanied by a documentary video and background paper on Indigenous Legal Traditions
  • Prepare a plain language brochure on Globalization and Law
  • Hold consultation events for Indigenous Legal Traditions, Globalization and Law, Vulnerable Workers and Age and Law
Expected Results:
  • Provide a framework for creating space and recognition for Indigenous legal traditions in Canada
  • Explore new tools of governance to enhance democracy, transparency and accountability given the increasing interdependency of countries and the greater influence of actors other than national governments
  • Provide recommendations to ensure adequate and appropriate support for the promotion of economic security of those engaged in work in the broad sense of the term
  • Provide a framework to support healthy intergenerational relationships by verifying if age is the best criterion in each instance to provide benefits or impose restrictions in law
Partially met 748 410
Priority No. 3:
Conduct leading-edge research
(on-going)
Program Activity:
Establish new, and enhance existing, partnerships with individuals, agencies and organizations both in Canada and around the world, including the following:
  • Research issues arising from consultations on Age and Law and The Vulnerable Worker
  • Research a variety of exploratory topics such as privacy, risk, economic and social rights, right to communication, cultural diversity and access to justice
  • Disseminate research generated by previous research activities
  • Collaborate with the Hague Institute for the Internationalisation of Law on work related to Globalization and Law
  • Continue partnership programs piloted in 2005 with the Canadian Bar Association
Partially met 2,075 1,647



Section II: Analysis of Program Activities by Strategic Outcome

Analysis by Program Activity

Strategic Outcome:  Canadian law that reflects the needs and values of Canadians, and is responsive, effective, equally accessible to all and just.

Program Activity:  Recommendations on Law Reform

Financial Resources


Planned Spending

Authorities

Actual Spending

$ 3,173 $ 3,182 $ 2,178

Human Resources


Planned

Actual

Difference

11 FTEs  7 FTEs 4 FTEs

Key Target Areas:

The strategic outcome of the Commission involved the provision of independent advice on reforming Canadian laws, institutions and procedures to ensure that they are aligned with the changing needs of individual Canadians and society.

Given the nature of the Commission's mission and mandate, and the research and discussion required to achieve the strategic outcome, results were defined in relation to the Commission's ability to stimulate research and discussion on matters of public interest, to advance new concepts of law, and to develop recommendations for consideration.

Ultimate outcomes such as renewal of the law require a long-term perspective and depend on the agenda of various governments and other actors and their willingness to implement the Commission's recommendations. Such ultimate outcomes were therefore not considered to be directly within the Commission's control.

To achieve its strategic outcome, the Commission conducted activities in four key target areas, which reflect issues of concern for Canadians, and get to the heart of Canadians' relationships with the law and legal system.

  • Personal Relationships

    Much of Canadian law is based on assumptions about how people organize their private lives and how they relate to their partners, parents, children and others close to them. These assumptions may not adequately or accurately reflect the reality of current relationships. The Commission examines how laws can be designed to respond more effectively to Canadians' personal relationships.

  • Governance Relationships

    Increasingly, Canadians want their public institutions to embrace values such as pluralism, choice and recognition of diversity. To remain legitimate in the eyes of Canadians, these institutions must evolve to respond to changes brought about by globalization, the increased diversity of the population and the desire for greater inclusiveness. The Commission examines current governance structures to ensure these meet the changing needs, values and expectations.

  • Economic Relationships

    The changing nature of the workplace, the creation of new forms of property and wealth, new methods of doing business, globalization, and the emergence of a knowledge-based economy all have important consequences for laws that regulate economic transaction and provides Canadians with an adequate standard of living. The Commission explores how best to structure the law to enhance Canada's economic strength while protecting fundamental social values.

  • Social Relationships

    Harmonious and healthy social relationships are built on trust, interdependence and respect. Disagreement and conflict are inevitable products of everyday life and human interaction. The law often relies on public institutions such as the criminal justice system and the police to resolve conflict and ensure security. Increasingly, however, Canadians are relying on more informal methods of conflict resolution and on private institutions to ensure their security. The work of the Commission emphasizes the supremacy of relationships and the supporting role of the law in the type of relationships between individuals in a modern society.

    The next section presents a summary of results achieved in relation to prior commitments for each key target area.  This summary was prepared based on information contained in the Law Commission of Canada website.


Key Target Area: Personal Relationships
Project:  Does Age Matter? Law and Relationships Between Generations
Project Commitment and Expected Results

Since 2004, the Commission has engaged Canadians on whether healthy, respectful relationships between generations could be better supported by eliminating age distinctions in law and policy that are inappropriate, over or under inclusive or stereotypical.  Research was carried out in a number of areas to explore the impact of using age distinctions.

Canadians have raised a myriad of ways in which these laws and policies touch their lives and the Commission will continue to explore these with a view to making concrete recommendations.

Recognizing that people are interdependent throughout their lives, that there are many similarities across, and differences within age groups, and that many people do not follow the assumed standard life course, this project will provide a framework to verify if age is the best criterion in each instance to provide benefits or impose restrictions in law.
Project Activities Previously Committed for 2006-2007

In 2006-2007, the Commission will conduct additional research and continue work with a study panel of experts, with a view to producing a report in 2008-2009.
Results Achieved for 2006-07
  • N/A


Key Target Area: Governance Relationships
Project: Indigenous Legal Traditions
Project Commitment and Expected Results

Although many communities in Canada demonstrate an ongoing commitment to concepts and values from Indigenous laws and traditions; frequently such concepts and values have been ignored or overruled by non-Indigenous law.  Canada has been able to benefit from the enrichment of two legal traditions, civil law and common law. It should also benefit more from Aboriginal heritage and legal traditions.

This project will provide a framework for creating space for and recognition of Indigenous legal traditions in Canada.
Project Activities Previously Committed for 2006-07
  • Publish a discussion paper that will develop a broader framework for understanding and respecting Indigenous legal traditions, including the issue of institutional change, the capacity of Canadian governments and society to address it, and the choice of tools to effect this change.
  • Consult broadly with stakeholders and produce a report in 2007-2008.
Results Achieved for 2006-07
  • The Métis National Council (MNC) and LCC co-hosted the national symposium on Crown-Métis Relations in February, 2006.  The following four areas were addressed at the symposium: whether the Métis people “Indians” within section 91(24) of the Constitution Act, 1867; the doctrine of inter-jurisdictional immunity and the aboriginal rights of the Métis; moving forward on the Métis self-government agenda; and, Métis identification and citizenship.
  • On March 1-3, 2006, the University of Regina hosted a national conference on the challenges and issues of Aboriginal justice. The Law Commission of Canada's Bruno Bonneville spoke about the LCC sponsored project Indigenous Legal Traditions.
Key Target Area: Governance Relationships
Project:  Globalization
Project Commitment and Expected Results

A dynamic law reform agenda must work within a framework that recognizes the interdependence between local and international as well as between domestic and foreign aspects.  It is in this context that the Law Commission is examining how Canadian law and policy have an impact on the world, and how the world has an impact on Canadian law and policy.

This project will explore new tools of governance to enhance democracy, transparency and accountability given the increasing interdependency of countries and the greater influence of actors other than national governments.
Project Activities Previously Committed for 2006-07
  • Engage Canadians in a critical debate of how to improve democracy and justice in a globalized world. Activities will include:
    • The Biennial Conference of the International Law Association;
    • The Canadian Legal Conference of the Canadian Bar Association;
    • Meetings with non-governmental organizations, officials of federal and sub-national governments, Parliamentarians, legal practitioners and others.
  • Conduct research to determine appropriate roles for entities in international law-making and to explore the extraterritorial application of law.
Results Achieved for 2006-07
  • Following the Commission's release last year, in of March, 2006, of a discussion paper titled Crossing Borders: Law in a Globalized World, a roundtable was hosted on June 8, 2006 on Canadian law in a globalized world and the issues raised in Crossing Borders: Law in a Globalized World.  The consultation document set out the issues and sought input on the ways in which legal reforms could enhance the ability of the domestic legal system to respond effectively to the opportunities and complex challenges that globalization presents. 


Key Target Area:  Economic Relationships
Project:  Is Work Working?
Project Commitment and Expected Results

The Commission is studying the ways in which the law allows people to attain economic security or the manner in which it impedes them in achieving this security.  The law plays an important role in determining the types of work that are recognized, valued and rewarded, as well as those that are downgraded, poorly regarded and prohibited.

In 2004-2005, the Commission published a discussion paper titled Is Work Working? Work Laws That Do A Better Job, which engages Canadians on whether and how the law should evolve to recognize and value non-standard work arrangements and protect vulnerable workers.

This project will provide a useful framework for evaluating the various policy and regulatory options available in order to ensure adequate and appropriate support for the promotion of economic security of those engaged in work in the broad sense of the term.

Project Activities Previously Committed for 2006-07

In 2006-2007, the Commission will conduct additional research and continue to consult with Canadians, with a view to producing a report in 2007-2008.

Results Achieved for 2006-07
  • N/A


Key Target Area:  Economic Relationships
Project: Financing on Reserves
Project Commitment and Expected Results

As a result of property-related provisions in the Indian Act, people living on reserves are unable to use their property to secure loans.  The Commission to explore solutions to this situation, which creates a systemic barrier to the management of personal fiannces.

This project will provide recommendations to address the issue of equitable access to financial resources for those living on reserves.

Project Activities Previously Committed for 2006-07

With its existing research, in 2006-2007, the Commission will consult with experts in the area about proposed viable solutions with a view to producing a report in 2007-2008.

Results Achieved for 2006-07
  • N/A
Key Target Area: Social Relationships
Project:  In Search of Security
Project Commitment and Expected Results

Over the past two decades, there has been a gradual loosening of the connection between policing and the state.  Today, the state remains a significant player in the delivery and regulation of policing, but there is now a range of private policing organizations that are actively engaged in maintaining order, as well as investigating and preventing crime in public spaces.

The Commission is exploring the complex relationships that are emerging between public police and private security agencies in Canada.  The Report to Parliament will identify the need for better communication and partnerships among the police and private security agencies, and will make recommendations to address this need.

Project Activities Previously Committed for 2006-07

In 2006-2007, the Report In Search of Security: The Future of Policing in Canada will be tabled in Parliament.

The Commission will follow up on the report by discussing with interested stakeholders its recommendations.

Results Achieved for 2006-07
  • In 2006, a report entitled: In Search of Security: The Future of Policing in Canada was submitted to Parliament.  The report examines the emergence of networks of policing in Canadian society and recommends changes to the legal and policy environment to reflect this new reality.


Key Target Areas: Social Relationships
Project:  Cultural and Religious Diversity
Project Commitment and Expected Results

The Commission will examine how other customary practices and traditions co-exist with the formal legal system, and the extent to which they can be accommodated in keeping with the values of human rights, equality, freedom of religion and multiculturalism.

This project seeks to provide a systematic framework to address the accommodation and integration of customary and traditional practices within the Canadian legal system.

Project Activities Previously Committed for 2006-07
Results Achieved for 2006-07
  • In 2006, a paper jointly commissioned by the Community Foundations of Canada and the Law Commission of Canada entitled: Unsettled: Legal and Policy Barriers for Newcomers to Canada was published.  The aim of the paper is to highlight legal and policy barriers to the successful settlement of immigrants and refugees to Canada, and how these can be overcome.
Other Target Areas
Project: What is a Crime?
Project Commitment and Expected Results

The objective of this project is to understand the reasons why certain patterns of behaviour are identified under the concept of crime and to examine the impacts of such a concept on personal, social, economic and governance relationships by assessing the various options available for regulating undesirable behaviour.

The aim of this project is to provide policy makers with a framework that can be used to assess the consequences of choosing the criminal law and other intervention strategies as a response to unwanted behaviour.

Project Activities Previously Committed for 2006-07
  • Continue consultations with stakeholders;
  • Consolidate current research and produce a Report to Parliament.
  • Exploration of new topics:
    • Access to justice;
    • Risk;
    • Economic and social rights;
    • Cultural diversity;
    • Privacy;
    • Barriers to immigration settlement; and
    • Right to communicate.
Results Achieved for 2006-07
  • N/A



Section III: Supplementary Information

Organizational Information

The Law Commission was an independent departmental corporation accountable to Parliament through the Minister of Justice. The Governor in Council appointed the President and four part-time Commissioners on the recommendation of the Minister for terms not exceeding five years. The Commission was supported by a small Secretariat headed by an Executive Director.

Organizational Information Chart

The Commission had an Advisory Council of up to 24 volunteers who reflected Canada's socio-economic and cultural diversity, and represented a broad range of disciplines. The Council provided advice on the Law Commission's strategic direction, long term research program, performance review and other relevant matters.

Study panels were appointed as needed to provide advice on specific research projects.  Each panel was headed by a Commissioner and comprised volunteer experts from multiple disciplines and members of affected communities. To support the study panels, research contracts were awarded to recognized experts in the private sector and academia.

Financial Statements

The financial statement of the Commission for the year ended March 31, 2007 are presented on the following pages.

Financial Tables


Table 1: Comparision of Planned to Actual Spending ($ thousands)
  2004-2005 2005-2006 2006-2007
  Actual Spending Actual Spending Main Estimates Planned Spending Total Authorities Actual Spending
Recommendations on Law Reform
3,228
3,175
3,193
3,173
3,182
2,178
Less: Non-Respendable revenue
-
-
n/a
-
n/a
-
Plus: Cost of services received without charge
191
195
n/a
180
n/a
132
Total Commisison Spending
3,419
3,370
n/a
3,353
n/a
2,310
 
Full Time Equivalents
12
12
n/a
11
n/a
7
 
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006.

 


Table 2: Resources by Program Activity ($ thousands)
  2006-2007
  Budgetary
  Main Estimates Planned Spending Total Authorities Actual Spending
Recommendations on Law Reform Operating
3,193
3,173
3,182
2,178
Total Commission
3,193
3,173
3,182
2,178
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006.

 


Table 3: Voted and Statutory Items ($ thousands)
Vote or Statutory Item Truncated Vote or Statutory Wording 2006-2007
Main Estimates Planned  Spending Total  Authorities Actual Spending
35
Program expenditures 3,020 3,000 3,027 2,023
(S)
Contributions to employee benefit plans 173 173 155 155
  Total Commission 3,193 3,173 3,182 2,178
The 2006-07 Actual Spending represents 69% of the Total Authorities. The difference of $1,004,000 between the Actual Spending and Total Authorities is attributed to the concluding operations on December 15, 2006.

 


Table 4: Services Received Without Charge ($ thousands)
  2006-2007
Accommodation provided by Public Works and Government Services Canada
79
Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat
53
Total 2006-2007 Services received without charge
132

 


Table 5: Resource Requirements by Branch
($ thousands)
  2006-2007
Branches Recommendations on Law Reform
Planned Spending Actual Spending
Commissioners
430
368
Administration
868
778
Communications
687
324
Research
1,188
708

Total Commission

3,173
2,178

 


Statement of Management Responsibility
LAW COMMISSION OF CANADA
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in these statements rests with Commission management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act , are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Commission.

The financial statements of the Commission have not been audited.

Denis Pelchat
Senior Financial full-time Officer
Ottawa, Canada

June 22, 2007


 


Statement of Operations (unaudited)
LAW COMMISSION OF CANADA
For the year ended March 31
(in dollars)
2007 2006
 
Recommendations on Law Reform
Operating Expenses (note 1)
  Salaries and benefits
839,731
1, 624,357
  Professional services
655,187
1,018,981
  Rentals
159,390
223,468
  Travel
116,999
251,242
  Information
111,735
142,122
  Amortization of tangible capital assets
73,577
107,459
  Communication
43,877
45,520
  Utilities, materials and supplies
14,306
19,771
  Loss on write-off of tangible capital assets
11,625
-
  Repairs and maintenance
9,944
19,061
  Equipment expenses
6,454
6,498
  Miscellaneous
27
44
  Total Operating Expenses

2,042,852

3,458,523

Revenues
  Miscellaneous revenues
5
5
Net Cost of Operations
2,042,847
3,458,518
The accompanying notes are an integral part of these financial statements.

 


Statement of Financial Position (unaudited)
LAW COMMISSION OF CANADA
As at March 31
(in dollars)
2007 2006
Assets
Financial Assets
  Accounts receivable (note 4)
18,280
5,142
  Advances - petty cash
-
1,000
  Total Financial Assets
18,280
6,142
Non-Financial Assets    
  Tangible capital assets (note 5)
-
85 ,202
Total Assets
18,280
91,344
Liabilities
  Accounts payable and accrued liabilities (note 6)
18,751
297,053
  Vacation pay
-
71,200
  Employee severance benefits (note 7b)
-
251,800
  Total Liabilities
18,751
620,053
Equity of Canada
(471)
(528,709)
Total Liabilities and Equity of Canada
18,280
91,344
The accompanying notes are an integral part of these financial statements.

 


Statement of Equity of Canada (unaudited)
LAW COMMISSION OF CANADA
For the year ended March 31 (in dollars) 2007 2006
Equity of Canada
Equity of Canada, beginning of year
(528,709)
(349,374)
Net cost of operations
(2 042 847)
(3,458,518)
Current year appropriations used (note 3b)
2,177,572
3,174,848
Revenue not available for spending
(59)
(9,193)
Change in net position in the Consolidated Revenue Fund (note 3c)
261,872
(81,172)
Services received without charge from other government departments (note 8)
131,700
194,700
Equity of Canada, end of the year
(471)
(528,709)
The accompanying notes are an integral part of these financial statements.

 


Statement of Cash Flow (unaudited)
LAW COMMISSION OF CANADA
For the year ended March 31
(in dollars)
2007 2006
Operating Activities
Net Cost of Operations
2,042,847
3,458,518
Non-cash items included in Net Cost of Operations:
  Loss on write-off of tangible capital assets (note 5)
(11,625)
-
  Amortization of tangible capital assets (note 5)
(73,577)
(107,459)
  Services received without charge from other government departments (note 8)
(131,700)
(194,700)
Variations in Statement of Financial Position:
  Increase (decrease) in accounts receivable
13,138
(21,858)
  Decrease in advances - petty cash
(1,000)
-
  Decrease (increase) in accounts payable and accrued liabilities
278,302
(4,218)
  Decrease in vacation pay
71,200
3,600
  Decrease (increase) employee severance benefits
251,800
(49,400)
Cash Used by Operating Activities
2 439 385
3,084,483
Net Cash Provided by Government
2,439,385
3,084,483
The accompanying notes are an integral part of these financial statements.

 


Notes to the Financial Statements (unaudited)
LAW COMMISSION OF CANADA
1. Authority and Objective
  The Law Commission of Canada, an independent federal law reform agency, was established on July 1, 1997 under an Act of the Parliament of Canada entitled the Law Commission of Canada Act. The mission of the Commission is to engage Canadians in the renewal of the law to ensure that it is relevant, responsive, effective, equally accessible to all, and just.
  The Commission advises Parliament on how to improve and modernize Canada's laws. In order to do so, the Commission establishes research partnerships with other agencies, develops research programs, conducts extensive public consultations, supports networking activities and produces reports to Parliament with recommendations for law reform. These activities help promote a legal system that meets the changing needs of Canadian society and individuals in that society.
  On September 25, 2006, the Government of Canada announced that the Commission will no longer receiving federal funding. The concluding operations has been completed by December 15, 2006.
2. 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 Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
  (b) Net cash provided by Government
  The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 the Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the Commission. 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.
  (e) Expenses
  Expenses are recorded on the an accrual basis:
   
  • Vacation pay is expensed as the benefits accrue to employees under their respective terms of employment.
  • Services received without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans 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 multiemployer plan administered by the Government of Canada.  The Commission's contributions to the Plan are charged to expenses in the year incurred and represent the total Commission obligation to the Plan.  Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
   

Severance benefits

  • Employees are entitled to severance benefits under collective agreements 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 receivable
  Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for accounts receivable where recovery is considered uncertain.
  (h) Tangible capital assets
  Tangible capital assets and leasehold improvements having an initial cost greater than $5,000 are recorded at their acquisition cost and are amortized on a straight line basis over their estimated useful lives, as follows:
   
Tangible capital asset class
Amortization period
    Informatics software 3 to 5 years
    Leasehold improvements Over the term of the lease
  Amortization of tangible of capital asset commences the month following the asset is put into service.
  (i) 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. Liability for employee severance benefits and the useful life of tangible capital assets are the most significant items where estimates are used. 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 Commission receives 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 Commission has different net results of operations for the year on a government funding basis than on an accrual accounting basis.  The following tables present the reconciliation between the current year appropriations used, the net cost of operations and the net cash provided by the Government:
    (a) Reconciliation of net cost of operations to current year appropriations used:
(in dollars)
2007 2006
  Net Cost of Operations
2,042,847
3,458,518
  Items affecting net cost of operations but not affecting appropriations:
    Services received without charge from other government departments
(131,700)
(194,700)
    Amortization of tangible capital assets
(73,577)
(107,459)
    Revenue not available for spending
59
9 193
    Loss on write-off of tangible capital assets
(11,625)
-
    Variation in vacation pay
71,200
3,600
    Variation in employee severance benefits
251,800
(49,400)
    Other adjustments
28,568
55,096
   
134,725
(283,670)
  Current year appropriations used
2,177,572
3,174,848
  (b) Appropriations provided and used:
(in dollars)
2007 2006
  Program expenditures - Vote 35
3,027,000
3,174,516
  Statutory - Contributions to employee benefits plan
154,720
214,894
   
3,181,720
3,389,410
  Lapsed
(1,004,148)
(214, 562)
  Current year appropriations used
2,177,572
3,174,848
  (c) Reconciliation of net cash provided by Government to current year appropriations used:
(in dollars)
2007 2006
  Net cash provided by Government
2,439,385
3,084,483
  Revenue not available for spending
59
9,193
  Change in net position in the Consolidated Revenue Fund
    Decrease (increase) in accounts receivable
(13,138)
21,858
    Decrease in advances - petty cash
1,000
-
    Increase (decrease) in accounts payable and accrued liabilities
(278,302)
4,218
    Other adjustments
28,568
55,096
   
(261, 872)
81,172
  Current year appropriations used
2,177,572
3,174,848
4. Accounts Receivable
(in dollars)
2007 2006
  Other government departments
18,280
4,719
  External parties
-
423
   
18,280
5,142

 


5. Tangible Capital Assets
  Tangible capital assets
(in dollars)
Balance beginning of year Acquisitions Disposals / write-offs Balance end of year
  Informatics software
23,250
-
(23, 250)
-
  Leasehold improvements
304,940
-
(304,940)
-
   
328,190
-
(328,190)
-
 
 
Accumulated amortization
(in dollars)
Balance beginning of year Amortization Disposals /
write-offs
Balance end of year
  Informatics software
5,812
5,813
(11,625)
-
  Leasehold improvements
237,176
67,764
(304,940)
-
   
242,988
73,577
(316,565)
-
 
  Net Book Value (in dollars) 2007 2006
  Informatics software
-
17,438
  Leasehold improvements
-
67,764
   
-
85,202
  Amortization expense for the year of nine months ended March 31, 2007 is $73,577 ($107,459 in 2006).

 


6. Accounts Payable and Accrued Liabilities
(in dollars)
2007 2006
  External parties
    Accounts payable and accrued liabilities
2,803
220,856
    Accrued salaries
-
28,055
  Other government departments    
    Accounts payable
15,948
48,142
 
   
18,751
297,053

 


7. Employee Future Benefits 
  (a) Pension benefits
  The Commission's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada.  Pension benefits provide for pensions equal to 2% of the average of the five highest consecutive years' salary for each year of service to a maximum of 35 years.  The benefits are integrated with Canada/ Quebec Pension Plan benefits and they are indexed to inflation.
  Both the employees and the Commission contribute to the cost of the Plan.  In 2006-2007, the expenses amount to $138 474 ($193,404 in 2005-2006), which represents approximately 2.2 times (2.6 in 2005-2006) the contributions by employees.
  The Commission'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 Commission provides severance benefits to its employees based on eligibility, years of service and final salary. The liability for severance benefits is not funded by Parliamentary appropriations, but the benefits paid during the year are funded.  The severance benefits as of March 31 are as follows:

(in dollars)
2007 2006
  Liability for employee severance benefits, beginning of year
251,800
202,400
  Expenses for the year
(102,984)
91,068
  Benefits paid during the year
(148,816)
(41,668)
  Liability for employee severance benefits, end of year
-
251,800

 


8. Related Party Transactions
  The Commission is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations.  The Commission enters into transactions with these entities in the normal course of business and on normal trade terms.
  During the year, the Commission receives services without charge from other departments, which are recorded at their estimated cost in the Statement of Operations as follows:
  (in dollars) 2007 2006
  Accommodation provided by Public Works and Government Services Canada
78,300
109,300
  Employer's contribution to the health and dental insurance plans and expenditures paid by Treasury Board of Canada Secretariat
53,400
85,400
 
    
131,700
194,700
  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 the services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Commission's Statement of Operations.
 
9. Comparative Information
  Comparative figures have been reclassified to conform to the current year's presentation.



Section IV: Other Items of Interest

Shared Corporate Services and Systems

Since its inception in April 1997, the Law Commission of Canada had a Memorandum of Understanding (MOU) with the Canadian Human Rights Commission (CHRC), to receive corporate services in the areas of Human Resources Management, Financial Management, Assets Management and Information Technology.

As part of the MOU agreement, functional expertise, guidance and advice were provided by the CHRC to support the Commission's staff and operations on an ongoing basis. The agreement provides a cost-effective approach for functional services and shared systems between the Commission and the CHRC, and allows the Commission to focus more resources towards research and citizen engagement activities.

Accountability for Results

The Law Commission conducted an exercise with Commissioners to define the concept of risk and discuss various risk issues. The Commission completed a review of its contracting procedures in 2004-05, and a risk-based internal audit and evaluation plan was developed during 2005-06.

Statute Administered

Law Commission of Canada Act (S.C., 1996, c. 9)

Contact Information

No contact information is provided, since the Law Commission ended on December 15, 2006.