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SECTION III – SUPPLEMENTARY INFORMATION

Organizational Information

In carrying out his mandate of ensuring full recognition and widespread use of English and French within Canadian society, federal institutions and other organizations subject to the Act, the Commissioner of Official Languages is supported by his staff, which is divided between the National Capital Region and regional offices across Canada.

Commissioner of Official Languages Organization Chart

Table 1: Comparison of Planned to Actual Spending (including
Full-Time Equivalents)

(in thousands of dollars)


  2004-
2005 Actual
2005-
2006 Actual
2006-2007
Main Estimates Planned Spending Total
Authorities
Total Actuals
Investigations 8,924.2 8,173.6 8,909.0 8,909.0 9,215.9 9,014.9
Policy and Communications 9,371.7 9,628.8 10,220.0 10,220.0 10,731.1 10,817.3*
Total 18,295.9 17,802.4 19,129.0 19,129.0 19,947.0 19,832.2
Less :
Non-Respendable revenue
- - N/A - N/A 2.9
Plus :
Cost of services received without charge
2,671.7 2,647.0 N/A 2,757.0 N/A 2,790.0
Total Office’s Spending 20,967.6 20,449.4 N/A 21,886.0 N/A 22,619.3
Full-Time Equivalents 152.9 149.5 N/A 164.0 N/A 154.0

* Under the Policy and Communications activity, actual expenditures exceeded the authorized amount by $86,200. Investigations (Compliance Assurance) cost $201,000 less than authorized. The Office of the Commissioner may incur more expenses than authorized in one or another activity as long as the organization’s total expenditures do not exceed their authorized amount.

Table 2: Resources by Program Activity

(in thousands of dollars)


2006-2007
Program Activity Budgetary
  Operating   Total
Gross
Budgetary Expenditures
Less
Respendable Revenue
Total
Net
Budgetary
Expenditures
Investigations
Main Estimates 8,909.0 8,909.0 - 8,909.0
Planned Spending 8,909.0 8,909.0 - 8,909.0
Total Authorities 9,215.9 9,215.9 - 9,215.9
Actual Spending 9,014.9 9,014.9 - 9,014.9
Policy and Communications
Main Estimates 10,220.0 10,220.0 - 10,220.0
Planned Spending 10,220.0 10,220.0 - 10,220.0
Total Authorities 10,731.1 10,731.1 - 10,731.1
Actual Spending 10,817.3 10,817.3 - 10,817.3
Total Office’s Resources
Main Estimates 19,129.0 19,129.0 - 19,129.0
Planned Spending 19,129.0 19,129.0 - 19,129.0
Total Authorities 19,947.0 19,947.0 - 19,947.0
Actual Spending 19,832.2 19,832.2 - 19,832.2

Table 3: Voted and Statutory Items

(in thousands of dollars)



Vote or Statutory Item
Truncated Vote or Statutory Wording

2006-2007

Main Estimates Planned Spending Total Authorities Total Actuals
20 Program Expenditures 17,008.0 17,008.0 18,043.0 17,931.3
(S) Contributions to employee benefit plans 2,121.0 2,121.0 1,900.8 1,900.9
(S) Crown Assets Surplus - - 3.2 -
  Total 19,129.0 19,129.0 19,947.0 19,832.2

Table 4 : Services Received Without Charge

(in thousands of dollars) 


  2006-2007 Total Actuals
Accommodation provided by Public Works and Government Services Canada 1,770.0
Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by Treasury Board Secretariat (excluding revolving funds) 918.0
Audit services provided by the Office of the Auditor General of Canada 95.0
Cost of payroll services provided by Public Works and Government Services Canada 7.0
Total 2006-2007 Services received without charge 2,790.0

Table 5: Sources of Non-Respendable Revenue

(in thousands of dollars)


2004-
2005 Actual
2005-
2006 Actual
2006-2007
Main Estimates Planned Revenue Total
Authorities
Total
Actuals
Investigations            
Proceeds from the disposal of surplus Crown assets - - N/A - N/A 1.2
Policy and Communications            
Proceeds from the disposal of surplus Crown assets - - N/A - N/A 1.7
Total Non-Respendable Revenue - - N/A - N/A 2.9

Table 6: Resource Requirements by Branch

(in thousands of dollars)



2006-2007
Branch Program Activity
Investigations Policy and
Communications
Total
Investigations      
Planned Spending 5,585.0   5,585.0
Actual Spending 5,186.2   5,186.2
Policy and Communications      
Planned Spending   6,969.0 6,969.0
Actual Spending   6,728.5 6,728.5
Legal Affairs      
Planned Spending 1,064.0   1,064.0
Actual Spending 987.3   987.3
Corporate Services      
Planned Spending 2,260.0 3,251.0 5,511.0
Actual Spending 2,841.4 4,088.8 6,930.2
Total Office’s Resources      
Planned Spending 8,909.0 10,220.0 19,129.0
Actual Spending 9,014.9 10,817.3 19,832.2

Table 7: User Fees


The Office of the Commissioner of Official Languages became subject to the Access to Information Act effective April 1, 2007. It will report the fees collected under this Act starting in 2007-2008.

Table 8 : Financial Statements


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements of the Office of the Commissioner of Official Languages for the year ended March 31, 2007 and all information contained in this report rests with the Office's management. These financial statements have been prepared by management in accordance with accounting policies issued by the Treasury Board of Canada Secretariat, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

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 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 to the Public Accounts of Canada and included in the Office’s Departmental Performance Report is consistent with these financial statements.

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

The Auditor General of Canada conducts an independent audit and expresses an opinion on the accompanying financial statements.



Signature, Graham Fraser Signature, Toby Fyfe
Graham Fraser
Commissioner of Official Languages
Toby Fyfe
Senior Financial Officer
Assistant Commissioner
Corporate Services
Ottawa, Canada
July 25, 2007
 



Vrificatrice gnrale du Canada


AUDITOR’S REPORT

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

I have audited the statement of financial position of the Office of the Commissioner of Official Languages as at March 31, 2007 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Office’s management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Office as at March 31, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Further, in my opinion, the transactions of the Office 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 Official Languages Act.
signature de la vrificatrice gnrale du Canada, Sheila Fraser
Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
July 25, 2007




OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Financial Position
At March 31

  2007            2006
Assets      
       
Financial assets      
          Cash $ 3,178     $ 3,426  
          Due from the Consolidated Revenue Fund 2,572,716     1,329,415  
          Accounts receivable from other Government
          departments
377,494     162,102  
Total financial assets      2,953,388     1,494,943  
       
Non-financial assets      
          Prepaid expenses 4,203     9,648  
          Tangible capital assets (Note 4) 2,531,710     1,462,551  
Total non-financial assets      2,535,913     1,472,199  

TOTAL

$ 5,489,301  
 
$ 2,967,142  
       
Liabilities      
       
          Accounts payable and accrued liabilities
          from other Government departments
$ 2,975,944     $ 1,492,886  
          Provision for vacation pay and
          compensatory leave
689,101     770,360  
          Employee severance benefits (Note 5) 2,296,273     2,339,325  
Total liabilities      5,961,318     4,602,571  

Equity of Canada
(472,017)    (1,635,429) 

TOTAL

$ 5,489,301  
 
$ 2,967,142  
       
Contingent liabilities (Note 8)      
Contractual obligations (Note 9)      
 
The accompanying notes are an integral part of these financial statements
 



Signature, Graham Fraser Signature, Toby Fyfe
Graham Fraser
Commissioner of Official Languages
Toby Fyfe
Senior Financial Officer
Assistant Commissioner Corporate Services


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Operations

For the year ended March 31


  2007 2006
Operating Expenses Investigations Policy and
Communications
Total  
Salaries and employee benefits $ 7,025,083 $ 7,142,485 $14,167,568 $ 14,041,880
Professional and special services 1,279,390 2,168,775 3,448,165 2,857,900
Accommodation 725,700 1,044,300 1,770,000 1,700,000
Transportation and telecommunications 367,499 518,668 886,167 969,253
Amortization of tangible capital assets 199,645 287,293 486,938 460,768
Utilities, materials and supplies 102,878 175,182 278,060 195,437
Communication and printing 3,856 167,535 171,391 466,942
Rentals of photocopiers and other items 42,659 71,851 114,510 136,520
Repairs and maintenance 22,744 51,004 73,748 123,495
Other 3,880 (625) 3,255 4,450
Net cost of operations $ 9,773,334 $ 11,626,468 $ 21,399,802 $ 20,956,645

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


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Equity of Canada

For the year ended March 31


  2007          2006

 

 

 

 

 

Equity of Canada, beginning of the year $ (1,635,429)   $ (1,070,622)  
Net cost of operations (21,399,802)   (20,956,645)  
Net cash provided by Government 18,529,913   17,937,220  
Change in due from Consolidated Revenue Fund 1,243,301   (192,382)  
Services provided without charge by other government departments (Note 7) 2,790,000   2,647,000  
Equity of Canada, end of the year
$ (472,017)
 
$ (1,635,429)
 

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

 

OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Cash Flow

For the year ended March 31


    2007           2006
Operating activities
Net cost of operations   $ 21,399,802   $ 20,956,645
Non-cash items:        
    Amortization of tangible capital assets   (486,938)   (460,768)
    Gain on disposal of tangible capital assets   2,808   ---
    Services provided without charge by
    other government departments (Note 7)
  (2,790,000)   (2,647,000)
Variation in Statement of Financial Position:        
    Decrease (Increase) in liabilities   (1,358,747)   167,374
    Increase (Decrease) in accounts receivables   215,392   (276,979)
    Increase (Decrease) in prepaid expenses   (5,445)   (17,661)
Cash used by operating activities   16,976,872   17,721,611
         
Capital investment activities        
Acquisitions of tangible capital assets   1,556,097   216,224
Proceeds from disposal of tangible capital assets   (2,808)   ---
Cash used by investment activities   1,553,289   216,224
         
Financing activities        
Net cash provided by Government of Canada   (18,529,913)   (17,937,220)
         
Net Cash Used   248   615
         
Cash, beginning of year   3,426   4,041

 
Cash, end of year

 
$ 3,178
 
  $ 3,426

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

OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Notes to the Financial Statements

For the year ended March 31, 2007

1.  Authority and Objectives

The Parliament of Canada adopted the first Official Languages Act in 1969. This Act provided that English and French would henceforth have “equality of status and equal rights and privileges as to their use in all the institutions of the Parliament and Government of Canada.”

A new Official Languages Act came into force in 1988 and was amended on November 25, 2005. The Act sets out three basic objectives of the Government of Canada:

  1. ensure respect for English and French as official languages of Canada, and ensure equality of status and equal rights and privileges as to their use in all federal institutions;

  2. set out the powers, duties and functions of federal institutions with respect to the official languages of Canada;

  3. support the development of English and French linguistic minority communities and generally advance the equality of status and use of the English and French languages within Canadian society.

The Office of the Commissioner of Official Languages (Office), which serves the public from its offices in Ottawa and its five regional offices, supports the Commissioner of Official Languages in fulfilling his mandate. The mandate of the Commissioner consists of taking all necessary measures to ensure recognition of the status of each of the official languages and compliance with the spirit and letter of the Official Languages Act in the administration of the affairs of federal institutions, including any of their activities relating to the advancement of English and French in Canadian society.

The Office is named in Schedule I.1 of the Financial Administration Act (FAA) and is funded through annual appropriations.

The Commissioner of Official Languages is appointed after approval of the appointment by resolution of the Senate and the House of Commons for a seven-year term (renewable). The Commissioner reports directly to Parliament.

2.  Significant Accounting Policies

a)  Basis of presentation

These financial statements have been prepared on an accrual basis of accounting in accordance with accounting policies issued by the Treasury Board of Canada Secretariat, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

b)  Parliamentary appropriations

The Office of the Commissioner of Official Languages is funded through annual parliamentary appropriations. Appropriations provided to the Office do not parallel financial reporting according to Canadian generally accepted accounting principles for the public sector. They are based in a large part 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 information regarding the source and disposition of these authorities and provides a high-level reconciliation between the two bases of reporting.

c)  Net cash provided by Government

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

d)  Due from the Consolidated Revenue Fund

Due from the CRF represents amounts of cash that the Office is entitled to draw from the Consolidated Revenue Fund, without further appropriations, in order to discharge its liabilities.

e)  Receivables

Receivables are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.

f)  Tangible capital assets

The Office records as capital assets all expenses providing multi year benefits to the Office and having an initial cost of $1,000 or more. Similar items under $1,000 are expensed in the Statement of Operations.

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


Asset Class Amortization Period
Machinery and equipment 5 years
Informatics hardware 4 years
Furniture 5 years
Informatics software 3 years
Motor vehicles 7 years
Leasehold improvements Term of the lease

g)  Employee future benefits

i.  Vacation pay and compensatory leave

Employee vacation pay and compensatory leave are expensed as the benefit accrues to employees under their respective terms of employment. The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and compensatory leave benefits accruing to employees. Employee vacation-pay liabilities payable on cessation of employment represent obligations of the Office that are normally funded through future years’ appropriations.

ii.  Employee severance benefits

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

iii.  Contributions to pension plan

The Office’s eligible employees participate in the Public Service Pension Plan, a multi‑employer plan administered by the Government of Canada. The Office’s contributions reflect the full cost as employer. This amount is currently based on a multiple of an employee’s contribution and may change over time depending on the experience of the Plan. The Office’s contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Office. The Office is not currently required to make contributions with respect to any actuarial deficiencies of the Public Service Pension Plan.

iv.  Other benefits

The Government of Canada sponsors a variety of other benefit plans, which cover the employees of the Office. These include health care, dental and insurance plans for which no costs are charged to the Office. In these cases, an estimated cost is recorded as an operating expense under the item “Services provided without charge by other government departments”. The Government of Canada also sponsors workers’ compensation benefits available across Canada. The Office is charged for its share of the annual benefit payments incurred under this Plan. These amounts represent the Office’s contribution to the Plan and they are recorded by the Office as an expense in the period incurred. As a participant, the Office has no other obligation to any of these plans in addition to its annual contributions.

h)  Services provided without charge by other government departments and agencies

Services provided without charge by other government departments and agencies are recorded as operating expenses at their estimated cost. A corresponding amount is reported in the Statement of Equity of Canada.

i)  Contingent liabilities

Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j)  Measurement uncertainty

Preparing financial statements in accordance with Treasury Board policies, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General 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. Actual results could differ significantly from these estimates. The most significant items where estimates are used are in determining the expected useful life of capital assets and in determining employee severance benefits. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3.  Parliamentary Appropriations

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


a)  Reconciliation of net cost of operations to current year appropriations used
  2007           2006 
Net cost of operations $ 21,399,802   $ 20,956,645

Add or Less: Items affecting net cost of operations but not affecting appropriations

     
      Amortization of tangible capital assets (486,938)   (460,768)
      Services provided without charge by
      other government departments
(2,790,000)   (2,647,000)
      Refund of prior year expenditures 8,117   28,499
      Revenue not available for spending 2,876   287
      Change in vacation pay and
      compensatory leave
81,259   (119,229)
      Change in employee severance
      benefits
43,052   (161,454)
      Other adjustments 13,687   20,404
  18,271,855   17,576,516

Add :  Items not affecting net cost of operations but  affecting appropriations

     
      Prepaid expenses 4,203   9,648 
      Tangible capital asset acquisitions  1,556,097   216,224
Current year appropriations used $ 19,832,155   $ 17,802,388



b)   Reconciliation of appropriations provided to current year appropriations
       used
  2007           2006
Total Operating Vote $ 18,042,950   $ 16,529,000
Statutory Vote 1,900,849   1,975,830
Spending of proceeds from the disposal of surplus Crown assets 3,163   1,175
Less :      
      Lapsed appropriations (111,931)   (703,330)
      Available for use in subsequent years (2,876)   (287)
Current year appropriations used $ 19,832,15   $ 17,802,388
       
c)   Reconciliation of net cash provided by Government to current year
      appropriations used
  2007           2006
Net cash provided by Government $ 18,529,913   $ 17,937,220
      Refund of prior year expenditures 8,117   28,499
      Revenue not available for spending 2,876   287
      Change in accounts receivable and cash (215,144)   277,595
      Change in accounts payable and
      accrued liabilities
1,483,058   (448,057)
      Other adjustments 23,335   6,844
Current year appropriations used $ 19,832,155   $ 17,802,388


4.  Tangible Capital Assets


Cost March 31, 2006 Additions   Disposals   March 31, 2007
         
Machinery and equipment $ 275,080 $ 167,706  --- $ 442,786
Informatics hardware 1,517,008 971,310 --- 2,488,318
Furniture 637,866 281,023 --- 918,889
Informatics software 424,551 70,845 --- 495,396
Motor vehicles 23,697 30,630 23,697 30,630
Leasehold improvements 919,357 34,583 --- 953,940
  $ 3,797,559 $ 1,556,097  $ 23,697 $ 5,329,959
         
Accumulated amortization March 31, 2006 Amortization Disposals March 31, 2007
         
Machinery and equipment $ 164,206 $ 43,252 --- $ 207,458
Informatics hardware 1,075,030 200,886 --- 1,275,916
Furniture 410,842 128,824 --- 539,666
Informatics software 394,324 17,720 --- 412,044
Motor vehicles 22,568 1,858 23,697 729
Leasehold improvements 268,038 94,398 --- 362,436
  $ 2,335,008 $ 486,938  $ 23,697 $ 2,798,249
         
Net Book Value March 31, 2006     March 31, 2007
         
Machinery and equipment $ 110,874     $ 235,328
Informatics hardware 441,978     1,212,402
Furniture 227,024     379,223
Informatics software 30,227     83,352
Motor vehicles 1,129     29,901
Leasehold improvements 651,319     591,504
  $ 1,462,551     $ 2,531,710

5.  Employee Future Benefits

a)  Accrued employee severance benefits

The Office provides severance benefits to its employees based on years of service and final salaries. This benefit plan is not funded. Benefits will be paid from future appropriations. Information about the severance benefits is as follows:


  2007           2006
       
Accrued benefit obligation, beginning of the year $ 2,339,325   $ 2,177,871
Expense for the year 511,169   400,167
Benefits paid during the year (554,221)   (238,713)
Accrued benefit obligation, end of the year $ 2,296,273    2,339,325

b)  Pension benefits

The Office’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/Qubec Pension Plans benefits and they are indexed to inflation. 

Both the employees and the Office contribute to the cost of the Plan. The 2006‑07 expense amounts to $1,400,926 ($1,462,113 in 2005-06), which represents approximately 2.6 times the contributions by employees. 

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

c)  Other benefits

The employees of the Office are also covered by workers’ compensation benefits across Canada. This plan is managed by Human Resources and Social Development Canada (HRSDC). As plan manager, HRSDC has authority to charge to the Office its share of the annual workers’ compensation benefit payments incurred under the plan. These amounts are expensed by the Office and charged to appropriations when the Office becomes liable to HRSDC in the year the amounts are billed.

In April 2002, the death of an employee has resulted in workers’ compensation death benefits totalling approximately $666,000 being payable under the plan by the Office to HRSDC over the next 13 years. The Office’s current year expense in relation to this claim amounts to $39,167 ($38,150 in 2006). It is expected that benefits totalling approximately $335,000 will be paid over the next 10 years by the Plan and that these amounts as well as administration fees will be paid to HRSDC by the Office in accordance with Treasury Board Policy. These amounts will be both expensed and charged to appropriations by the Office in the year they are billed by HRSDC.

6.  Related Party Transactions

The Office is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The Office enters into transactions with these entities in the normal course of business.

During the year, the Office had net expenses of $5,838,678 ($5,155,235 in 2006) from transactions in the normal course of business with other Government departments, agencies and Crown corporations. These expenses include services provided without charge of $2,790,000 ($2,647,000 in 2006) as described in Note 7.

7.  Services Provided Without Charge by Other Government Departments ($ 000)

During the year, the Office received services that were obtained without charge from other government departments and agencies. These are recorded at their estimated costs in the financial statements as follows:


     2007           2006
       
Public Works and Government Services Canada –
accommodation
$ 1,770    $ 1,700 
Treasury Board Secretariat - employer’s share of insurance premiums 918    856 
Office of the Auditor General of Canada - audit services 95    85 
Public Works and Government Services Canada - payroll services  
Total $ 2,790    2,647 

8.  Contingent Liabilities

In the normal course of its operations, the Office may become involved in various legal actions. Some of these legal actions may result in actual liabilities when one or more future events occur. To the extent that the future event is likely to occur, and a reasonable estimate of the loss can be made, a liability is accrued and an expense recorded in the financial statements. No contingent liabilities relating to the Office of the Commissioner of Official Languages are recognized in the Office's financial statements for the fiscal year ended March 31, 2007.

9.  Contractual Obligations

The Office has commitments arising in the normal course of operations for future years.  These obligations include occupancy leases and equipment rental, as well as the obligation for workers’ compensation death benefits disclosed in Note 5 (c). Minimum annual payments under these agreements are as follows:


Fiscal year              ($000)
2007-2008   $125
2008-2009   79
2009-2010   64
2010-2011   64
2011 until 2017   289
Total   $621

10.  Comparative Figures

Certain comparative figures have been reclassified to conform to the presentation adopted in the current year.

Table 9: Response to Parliamentary Committees, and Audits and
Evaluations for Fiscal Year 2006-2007



Response to Parliamentary Committees
No recommendations were received for the year under review.
 
Response to the Auditor General
In 2006–2007, the Office of the Commissioner of Official Languages was the subject of a year-end audit by the Auditor General of Canada. In her report, the Auditor General was of the opinion that the financial statements of the Office presented fairly, in all material respects, the financial position of the Office as at March 31, 2007, and the results of its operations and its cash flows for the year ended in accordance with generally accepted Canadian accounting principles. Furthermore, in her opinion, the transactions of the Office that came to her notice during the audit had, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Official Languages Act.
 
External Audits
No recommendations were received for the year under review.
 
Internal Audits or Evaluations
Not applicable for the year under review. An Internal Audit function has been approved and funded starting with fiscal 2007-2008.


Table 10: Procurement and Contracting

Supplementary information on Procurement and Contracting can be found at:
http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp

Table 11: Travel Policies

Supplementary information on Travel Policies can be found at:
http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp