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SECTION 3: Supplementary Information

3.1 Organizational Information

The organizational chart below was effective from April 1, 2005 to March 31, 2007. Reporting to the Minister of Industry, the CSA Chief Executive Officer is the President, assisted by the Senior Vice-President and the Vice-President of Science, Technology and Programs. The Policy, Planning and Relations Branch, the Communications Directorate, the Canadian Astronaut Office, and the Space Operations Branch report directly to the President. Three of the core branches report to the Vice-President of Science, Technology and Programs. The five Corporate Services report directly to the Senior Vice-President. Legal Services are provided by the Department of Justice.

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3.2 Financial Tables

3.2.1 Comparison of Planned to Actual Spending (including Full-time Equivalents)


($ in millions)

2004-2005 Actual

2005-2006 Actual

2006-2007

Main Estimates

Planned Spending

Total Authorities

Actual

Space Based Earth Observation 113.3 136.8 137.9 126.5 80.4
Space Science and Exploration 136.7 146.5 148.1 164.7 144.5
Satellite Communications 32.0 35.5 35.5 33.5 32.8
Space Awareness and Learning 6.0 6.5 6.5 5.8 4.7
Generic Space Activities 48.7 48.7 54.2 52.0
Total 286.0 288.0 374.1 376.7 384.7 314.4
Less: Non-respendable revenue (4.2) (4.9) N/A (4.9) N/A (8.2)
Plus: Cost of services received without charge 4.3 3.8 N/A 5.0 N/A 4.4
Total Departmental Spending 286.2 286.9 N/A 376.8 N/A 310.6
Full-time Equivalents 573 596 N/A 690 N/A 609


Notes:
  • Due to rounding, figures may not add up to totals shown.
  • Total Authorities are Main Estimates plus Supplementary Estimates and other Authorities.
  • The difference between the Total Authorities and Actual Spending is mainly due to re-profiling of funds from 2006-2007 to future years.
  • Planned Spending corresponds to Total Planned Spending in 2006-2007 RPP.
  • Program Activities shown in this table include amounts for Corporate Services and Infrastructure.
  • For the 2004-2005 fiscal year, it is impossible to present these numbers in PAA format since this structure did not exist at the time. Considerable effort would be required to convert these numbers into PAA format.
  • For the 2005-2006 fiscal year, information is shown according to PAA 2005-2006.


3.2.2 Resources by Program Activity


2006-2007

Program Activity
($ in millions)

Budgetary

Total

Capital Grants Contributions Total

Space Based Earth Observation

Main Estimates 56.6 67.6 0.2 12.4 136.8
Planned Spending 57.7 67.6 0.2 12.4 137.9
Total Authorities 61.3 53.5 1.4 10.3 126.5
Actual Spending 57.5 11.5 1.4 9.9 80.4

Space Science and Exploration

Main Estimates 94.9 43.9 0.6 7.1 146.5
Planned Spending 94.8 45.5 0.6 7.1 148.1
Total Authorities 97.0 58.8 0.5 8.4 164.7
Actual Spending 94.7 41.1 0.5 8.1 144.5

Satellite Communications

Main Estimates 9.1 0.1 0.0 26.3 35.5
Planned Spending 9.1 0.1 0.0 26.3 35.5
Total Authorities 5.7 0.1 0.0 27.7 33.5
Actual Spending 5.5 0.1 0.0 27.2 32.8

Space Awareness and Learning

Main Estimates 5.8 0.0 0.5 0.2 6.5
Planned Spending 5.8 0.0 0.5 0.2 6.5
Total Authorities 4.8 0.0 0.8 0.2 5.8
Actual Spending 3.7 0.0 0.8 0.2 4.7

Generic Space Activities

Main Estimates 38.6 3.1 0.1 7.0 48.7
Planned Spending 38.6 3.1 0.1 7.0 48.7
Total Authorities 41.2 3.9 0.0 9.1 54.2
Actual Spending 39.4 3.9 0.0 8.7 52.0
Total
Main Estimates 205.0 114.7 1.4 52.9 374.1
Planned Spending 206.0 116.4 1.4 52.9 376.7
Total Authorities 210.0 116.4 2.7 55.6 384.7
Actual Spending 200.9 56.7 2.7 54.1 314.4


Notes:
  • Due to rounding, figures may not add up to totals shown.
  • Total Authorities are Main Estimates plus Supplementary Estimates and other Authorities.
  • Operating Expenditures include Employee Benefit Plans.
  • Program Activities shown in this table include amounts for Corporate Services and Infrastructure.


3.2.3 Voted and Statutory Items


Voted or Statutory Item

Truncated Vote or Statutory Wording
($ in millions)

2006-2007

Main Estimates

Planned Spending

Total Authorities

Actual

25 Operating expenditures 194.4 195.3 201.1 192.0
30 Capital expenditures 114.7 116.4 116.4 56.7
35 Grants and Contributions 54.3 54.3 58.3 56.8
(S) Contributions to employee benefit plans 10.7 10.7 8.9 8.9
Total 374.1 376.7 384.7 314.4


Notes:
  • Total Authorities are Main Estimates plus Supplementary Estimates and other Authorities.
  • Planned Spending corresponds to Total Planned Spending in 2006-2007 RPP.


3.2.4 Services Received Without Charge


($ in millions) 2006-2007
Actual Spending
Accommodation provided by Public Works and Government Services Canada (PWGSC). 0.2
Contributions covering employers' share of employees' insurance premiums and expenditures paid by TBS (excluding revolving funds). Employer's contribution to employees' insured benefits plans and associated expenditures paid by TBS. 4.2
Salary and associated expenditures for legal services provided by Department of Justice Canada. 0.0
Total 2006-2007 Services Received Without Charge 4.4


3.2.5 Sources of Respendable and Non-Respendable Revenue

Non-Respendable Revenue


($ in millions)

Actual Revenue 2004-2005

Actual Revenue 2005-2006

2006-2007

Main Estimates

Planned Revenue

Total Authorities

Actual Revenue

Space Based Earth Observation
Royalty Revenues 3.1 3.1 N/A 4.1 N/A 3.3
Miscellaneous revenues 0.0 0.0 N/A 0.0 N/A 4.0
Generic Space Activities
Testing Facilities and Services of the David Florida Laboratory 1.1 1.7 N/A 0.7 N/A 0.9
Satellite Communications
Royalties from intellectual property 0.0 0.0 N/A 0.1 N/A 0.0
Total Non-Respendable Revenue 4.2 4.9 N/A 4.9 N/A 8.2


Notes:
  • Due to rounding, figures may not add up to totals shown.
  • Miscellaneous revenues are deferred revenue write-off from RARADSAT-1.
  • Royalties from intellectual property Planned Revenue were over estimated in the 2006-2007 RPP. The Actual Revenue for 2006-2007 is $4,000.


3.2.6 Resource Requirements by Branch or Sector


($ in millions) Space Based Earth Observation Space Science and Exploration Satellite Communi-
cations
Space Awareness and Learning Generic Space Activities Total
Space Programs
Planned Spending 66.0 43.2 20.3 - - 129.6
Actual Spending 12.6 39.9 18.1 - - 70.6
Space Technologies
Planned Spending 33.3 6.3 11.9 0.3 37.6 89.2
Actual Spending 35.5 9.0 11.2 0.1 40.4 96.3
Space Sciences
Planned Spending 5.1 27.2 - 0.1 - 32.4
Actual Spending 5.3 20.8 - 0.1 - 26.2
Canadian Astronauts Office
Planned Spending - 5.1 - 0.3 - 5.3
Actual Spending - 4.7 - 0.2 - 4.9
Space Operations
Planned Spending 19.4 52.4 0.3 0.1 7.1 79.3
Actual Spending 13.4 57.0 0.4 0.1 7.3 78.1
Corporate Services Sector
Planned Spending 13.0 12.4 3.0 5.9 4.0 38.3
Actual Spending 13.5 13.1 3.2 4.2 4.4 38.3
Total
Planned Spending 136.8 146.5 35.5 6.5 48.7 374.1
Actual Spending 80.4 144.5 32.8 4.7 52.0 314.4


Note:
  • Due to rounding, figures may not add up to totals shown.


3.2.7 User Fee Reporting - User Fees Act


A. User Fee Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)
Fee Type Other products and services(O)
Fee Setting Authority Access to Information Act
Date Last Modified 1992
2006-2007

Forecast Revenue
($000)
Actual Revenue
($000)
Full Cost
($000)
Performance
Standard
Performance
Results
$0.1 $0.1 $67.5
(incl. Salary of the ATIA Coordinator and O&M)
Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The Access to Information Act provides fuller details. CSA responded to 20 access to information requests; 27 consultations from other government departments. CSA routinely waives fees in accordance with TBS guidelines.
Total:
$0.1 $0.1 $67.5

Planning Years

Fiscal Year Forecast Revenue ($000) Estimated Full Cost ($000)
2006-2007
2007-2008
2008-2009
$0.1
$0.1
$0.1
$67.5
$67.5
$67.5
Total $0.3 $202.5



B. Date Last Modified

N/A

C. Other Information

The Canadian Space Agency (CSA) collects user fees for information requests in accordance with the Access to Information Act. All user fees collected in 2006-2007 are for application fees. There was no need to charge for preparation and search fees.



3.2.8 Financial Statements of Departmental Corporations and Agents of Parliament

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Click image to enlarge


Canadian Space Agency - Notes to the Financial Statements (unaudited)

1. Authorizations and goals

The Canadian Space Agency was decreed a "Department" on March 1st, 1989 under the Financial Administration Act, Section 2, paragraph b).

For its part, the Canadian Space Agency Act, on legal notice of the Prime Minister, and under Section 29 of the Act to establish the Canadian Space Agency and to provide for other matters in relation to space, was sanctioned on May 10, 1990 under Chapter 13 of the Laws of Canada (L.C. 1990). His excellence, the Governor-in-Council, had fixed the effective date of this Act at December 14, 1990. The objectives of the Canadian Space Program (CSP) are to ensure the development and application of space science and technology to meet Canadian needs and to ensure the development of an international competitive space industry in Canada.

According to the approved Program Activity Architecture (PAA), the Statement of operations was detailed by the following Program Activities (Business Lines):

Space Based Earth Observation (EO)
The program activity objective is to develop and make operational the use of space Earth Observation for the benefits of Canadian, especially in the fields of environment, resource and land use management, as well as security and foreign policy. In doing so, the CSA will maintain and expand Canada's leadership in Earth Observation technologies to obtain the timely, relevant and essential information we need to make judicious decisions about that share our needs and goals.

Space Science and Exploration (SE)
The program activity objective is to better understand the solar system and the Universe; to expand our knowledge on the constituent elements and origins of life, and strengthen a human presence in space. In doing so, the CSA will sustain and increase Canada's contribution to humankind's scientific knowledge, to the exploration of our solar system and the Universe and to the development of related technologies. This will advance supporting technologies and our fundamental and applies knowledge of chemistry, physics, life sciences by carrying out leading-edge experiments in the unique environment of space.

Satellite Communications (SC)
The program activity objective is to provide all Canadians with the means to participate and fully benefit from the global information age. In doing so, the CSA will uphold Canada's status as a world leaser in Satellite Communications, and extend the most advances products and services to all Canadians, everywhere.

Space Awareness and Learning (AL)
The program activity objective is to further public understanding and engagement with regards to space related issues, ultimately leading to improving the scientific literacy of Canadians by carrying out a national awareness and learning initiative in support of the Canadian Space Program.

Generic Space Activities in support of EO, SE and SC (GSA) The program activity objective is to provide leadership, co-ordination and support to Earth Observation (EO), Space Science and Exploration (SE), and Satellite Communications (SC) Program Activities through technology research and space-qualification activities that are generic in their nature. CSA commits to provide technologies and innovative space techniques, conceptual methods and testing that will satisfy developmental requirements for future missions and Canadian space activities.

2. Summary of 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:

  1. Parliamentary appropriations
    The Agency is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Agency do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.
  2. Net cash provided by the Government
    The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency 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.
  3. 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 Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Agency. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
  4. Revenues
    • Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
    • Revenues that have been received but not yet earned are recorded as deferred revenues (see note 10).
  5. Expenses
    Expenses are recorded on the accrual basis:
    • Grants are recognized in the year in which the conditions for payment are met.
    • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
    • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
    • Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.
  6. Employee future benefits
    • Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi employer plan administered by the Government of Canada. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the Agency's total obligation to the Plan. Current legislation does not require the Agency to make contributions for any actuarial deficiencies of the Plan.
    • Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
  7. Accounts and loans receivables
    These are stated as amounts expected to be ultimately realized. A provision is made for external receivables where recovery is considered uncertain.
  8. 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.
  9. Environmental liabilities
    Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. The Agency does not have contaminated sites. In cases when the Agency feels obligated to incur costs related to contaminated sites, and when costs can be reasonably estimated following a detailed environmental analysis, a liability is accrued and an expense recorded when the contamination occurs or when the Agency becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs.
  10. Inventories
    Inventories consist of parts, material and supplies held for future program delivery and not intended for resale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.
  11. Foreign exchange
    Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on 31 March.
  12. Tangible Capital assets
    All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, esthetic or historical value, assets located on Indian Reserves and museum collections.

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


    Property category Useful life
    Buildings 30-40 years
    Works and infrastructures 30 years
    Material and equipment 10-20 years
    Computer material 5-7 years
    Computer software 3 years
    Other equipment including furniture 3-15 years
    Vehicles (non-military) 5 years
    Other vehicles 10 years
    Assets under construction Once in service, in accordance with asset type

  13. Measurement uncertainty
    The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. 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 Canadian Space Agency 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 Agency 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
($ in thousands)
Net Cost of Operations 315,921 288,388
Adjustments for items affecting net results but not affecting appropriations
Add (less):
Amortization of tangible capital assets (90,963) (92,000)
Revenues not available for spending 8,240 4,900
Services provided without charge from other government departments (4,368) (3,825)
Refunds of previous year's expenses 742 453
Increase (decrease) vacations pay and compensatory leave (202) (75)
Loss on write-offs of capital assets 85 -
Gain on disposal of capital assets (Surplus of Crown Assets) 23 -
Increase (decrease) employee severance benefits (35) (693)
Other (106) (2,142)
Adjustments for items not affecting net results but affecting appropriations
Add (less):
Increase (decrease) prepaid expenses 36,837 55,842
Acquisitions of tangible capital assets 48,350 37,176
Proceeds from disposal of capital assets (Surplus of Crown Asset) (23) -
Land transfer between departments (Transport Canada and CSA) (85) -
Current year appropriations used 314,416 288,024


(b) - Appropriations provided and used
2007 2006
($ in thousands)
Appropriations provided:
Vote 30 - Operating expenditures 201,087 177,087
Vote 35 - Asset acquisitions financed by the capital appropriation 116,364 105,386
Vote 40 - Grants and contributions 58,346 53,275
Statutory amounts 8,901 9,296
Less:
Appropriations available for future years (23) -
Lapsed appropriations: Operating (9,100) (2,682)
Lapsed appropriations: Capital (59,649) (50,132)
Lapsed appropriations: Grants and contributions (1,510) (4,206)
Current year appropriations used 314,416 288,024


(c) - Reconciliation of net cash provided by Government to current year appropriations used
2007 2006
($ in thousands)
Net cash provided by Government 299,583 290,718
Revenue not available for spending 8,240 4,900
Refunds of previous years' expenses 742 453
Change in net position in the Consolidated Revenue Fund
Increase (decrease) in accounts receivable and advances (1,090) 1,943
Increase (decrease) in accounts payable and accrued liabilities 8,842 (11,581)
Decrease (increase) in deferred revenue (4,031) 9
Increase (decrease) in others liabilities 2,236 3,724
Other (106) (2,142)
5,851 (8,047)
Current year appropriations used 314,416 288,024

4. Expenses

The following table presents details of expenses by category:


2007 2006
($ in thousands)
Operating expenses
Amortization of tangible capital assets 90,963 92,000
Professional and special services 73,526 56,886
Salaries & employee benefits 64,789 63,307
Acquisition of machinery and material 18,423 -
Travel & Communications 8,356 6,789
Utilities, materials and supplies 5,700 12,392
Purchased repair and maintenance 2,688 -
Information 1,236 3,019
Rentals 462 6,406
Loss on write-offs of capital assets (85) -
Other operating expenses 3,846 1,009
Total operating expenses 269,904 241,808
Transfer payments
International organizations 33,127 32,479
Industry 20,806 18,649
Individuals 347 352
Total transfer payments 54,280 51,480
Total expenses 324,184 293,288

5. Revenues

The following table presents details of expenses by category:


2007 2006
($ in thousands)
Revenues
Other fees and charges 3,972 -
Sale of rights and privileges 3,307 3,144
Sale of goods and services 946 1,742
Gain on disposal of capital assets (Surplus of Crown Assets) 23 7
Other non-tax revenue 15 7
Total Revenues 8,263 4,900

6. Accounts receivables and advances

The following table presents details of accounts receivable and advances:


2007 2006
($ in thousands)
Other federal departments or agencies 2,976 1,270
External entities 679 1,268
Employee advances 19 27
Less: Allowance for doubtful accounts on external receivables (37) (18)
Total 3,637 2,547

7. Prepaid expenses

The following table presents details of prepaid expenses:


2007 2006
($ in thousands)
RADARSAT-2 - prepaid services 395,405 359,620
Prepaid transfer payments 6,548 4,038
Other prepaid expenses 210 1,668
Total 402,163 365,326

8. Tangible Capital Assets


($ in thousands)
Cost
Capital asset class Opening balance Acquisitions Disposals and
write-offs
Closing balance
Land - 85 - 85
Buildings 110,223 622 - 110,845
Works and infrastructures 279 - - 279
Material and equipment 30,507 2,809 24 33,292
Computer material 10,381 1,039 27 11,393
Computer software 2,124 2,391 - 4,515
Other equipment 1,561,726 240 - 1,561,966
Vehicles (non-military) 42 - 18 24
Other vehicles 172 - 11 161
Assets under construction 328,178 41,164 - 369,342
Total 2,043,632 48,350 80 2,091,902


Accumulated amortization Net bookvalue
Capital asset class Opening balance Amorti-zation Disposals and
write-offs
Closing balance 2007 2006
Land - - - - 85 -
Buildings 48,968 3,702 - 52,670 58,175 61,254
Works and infrastructures 152 29 - 181 98 127
Material and Equipment 20,425 1,668 24 22,069 11,223 10,082
Computer material 7,597 1,201 27 8,771 2,622 2,785
Computer software 893 806 - 1,699 2,816 1,231
Other equipment 819,053 83,547 - 902,600 659,366 742,673
Vehicles (non-military) 36 5 18 23 1 6
Other vehicles 141 5 11 135 26 31
Assets under construction - - - - 369,342 328,178
Total 897,265 90,963 80 988,148 1,103,754 1,146,367

Amortization expense for the year ended March 31, 2007 is $ 90,963 (2006 - $92,000).

The land was transferred from Transport Canada to the Canadian Space Agency at the nominal value of $1. However, for consolidated purposes, the net book value was registered in CSA's books in order to eliminate any gain or loss at the government-wide level.

9. Accounts payable and accrued liabilities

The following table presents details of accounts payable and accrued liabilities:


2007 2006
($ in thousands)
Accrued liabilities 45,067 54,079
Accounts payable 37,611 19,818
Contractor's holdback 1,528 1,578
Accrued salaries and wages 1,365 1,337
Accounts payable - OGD 373 298
Other accounts payable 14 7
Tax on Goods and Services (GST) 8 7
Total 85,966 77,124

10. Deferred revenue

The following table presents details of revenues:


2007 2006
($ in thousands)
RADARSAT-1: Amounts received from Canadian provinces and from NASA in exchange of scenes to be delivered at a later date.
Opening balance, April 1 3,972 3,972
Plus: Receipts - -
Less: Write-off of deferred revenues for scenes never delivered and following the end of the agreement 3,972 -
Closing balance, March 31 - 3,972
Sodexho: Rent received in advance
Opening balance, April 1 1 1
Plus: Receipts 1 -
Less: Earned rent for march 1 -
Closing balance, March 31 1 1
Space Training Project: Special purpose account created to record funds received for the payment of expenses related to the space-training project.
Opening balance, April 1 61 61
Plus: Receipts - -
Less: End of agreement for the Space Training Project 61 61
Closing balance, March 31 - 61
RADARSAT-2: Amount received to cover expenses for the accommodation and installation of MDA employees.
Opening balance, April 1 9 -
Plus: Receipts 2 9
Moins: Earned revenues - -
Closing balance, March 31 11 9
Closing balance total 12 4,043

11. Other liabilities

The following table presents details of revenues:


2007 2006
($ in thousands)
Non-monetary exchange CSA/NASA 10,709 10,921
Contractor's holdbacks 7,270 4,820
Participation of provinces - RADARSAT-1 104 106
Total 18,083 15,847

a) Non-monetary exchange CSA/NASA

Under the International Space Station Agreement, which was executed in 1998, and ratified by Canada in year 2000, following the passing of the Civil International Space Station Agreement Implementation Act, in 1999 the Agency signed a barter agreement with NASA in August 2001, which the fair value was estimated at $20.8 million U.S. Currently, all the costs are not available and the fair value of the yielded services must be revaluated when the identification of total costs will be possible. This agreement provides that the CSA exchanges a part of its utilization rights on the Space Station, access to the Canadian Microgravity Isolation Mount, and agrees to assume repair costs for its Special Purpose Dexterous Manipulator. In return, NASA will provide to the CSA, astronaut training, satellite and launch services. The transactions under this Barter Agreement may take place over the lifetime of the Space Station. During the fiscal years 2002 to 2007, the CSA received a part of astronaut training valued at $11 million CDN. As NASA did not exercise the option to access its proportion of Canada's utilization rights on the Space Station, a liability of $11 million CDN has been created by CSA. Relative to this barter agreement or other agreements of the same kind that the CSA may enter into with its International Partners under the Agreement on the Space Station, the Treasury Board grants to the Agency an exemption under the Policy on Accounting for Non-Monetary Transactions and does not have to charge the transaction(s) to its appropriation.

b) Participation of provinces - RADARSAT-1

This specified purpose account was established to record moneys received for both cost-sharing and advance payments for RADARSAT scenes. RADARSAT-1 is an Earth Observation satellite to monitor environmental change and planets natural resources. It provides information to both commercial and scientific users in the fields of agriculture, cartography, hydrology, forestry, oceanography, ice studies and coastal monitoring.

12. Employee benefits

a) Pension benefits

The Agency'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 Agency contribute to the cost of the Plan. The 2006-2007 expense amounts to $6.54 million ($6.87 million in 2005-2006), which represents approximately 2.2 time (2.6 time in 2005-2006) the contributions by employees.

The Agency'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 Agency provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

The following table presents details of revenues:


2007 2006
($ in thousands)
Accrued benefit obligation, beginning of year 9,929 9,236
Plus:
Expense for the year 408 1,137
Less:
Benefits paid during the year (373) (444)
Accrued benefit obligation, end of year 9,964 9,929

13. Contractual obligations

The nature of the Agency's activities can result in some large multi-year contracts and obligations whereby the Agency will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:


($ in thousands)
2008 2009 2010 2011 2012
and
there after
Total
Acquisitions 39 17 1 - - 57
Transfer payments 48 39 27 11 10 135
Capital assets 28 3 - - - 31
Total 115 59 28 11 10 223

14. Related party transactions

The Agency is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Agency received services, which were obtained without charge from other Government departments as presented in part (a).


(a) Services provided without charge
During the year the Agency received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the Agency's Statement of Operations as follows:
2007 2006
($ in thousands)
Employer's contribution to the health and dental insurance plans 4,199 3,450
Legal services - 206
Accommodation 169 169
Total 4,368 3,825

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 these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included as an expense in the department's Statement of Operations.


(b) Payables and receivables outstanding at year-end with related parties:
2007 2006
($ in thousands)
Accounts receivable with other government departments and agencies 2,976 1,270
Accounts payable to other government departments and agencies 382 306

15. Comparative information

For fiscal year 2006-2007, the Canadian Space Agency added a new program activity; consequently comparative information by program activity is not available.

Also, some amounts of the preceding exercise were re-examined and sometimes reclassified in order to reflect accordingly the presentation of the current year.


Canadian Space Agency
Statement of Cash Flow (unaudited)

For the Year Ended March 31

2007 2006
(in thousands of dollars)
Expenses (note 4)
Space Science and Exploration (SE) 192,783 118,072
Space Based Earth Observation (EO) 47,566 131,388
Generic Space Activities in support of EO, SE and SC (GSA) 45,634 -
Satellite Communications (SC) 33,347 34,981
Space Awareness and Learning (AL) 4,854 8,847
Total expenses 324,184 293,288
Revenues (note 5)
Space Science and Exploration (SE) 13 1,960
Space Based Earth Observation (EO) 7,428 2,205
Generic Space Activities in support of EO, SE and SC (GSA) 818 -
Satellite Communications (SC) 3 588
Space Awareness and Learning (AL) 1 147
Total revenues 8,263 4,900
Net cost of operations 315,921 288,388


2007 2006
(in thousands of dollars)
ASSETS
Financial assets
Accounts receivable and advances (note 6) 3,637 2,547
Total financial assets 3,637 2,547
Non-financial assets
Prepaid expenses (note 7) 402,163 365,326
Tangible capital assets (note 8) 1,103,754 1,146,367
Total non-financial assets 1,505,917 1,511,693
TOTAL 1,509,554 1,514,240
Liabilities
Accounts payable and accrued liabilities (note 9) 85,966 77,124
Deferred revenues (note 10) 12 4,043
Vacation pay and compensatory leave 3,407 3,205
Employee severance benefits (note 12) 9,964 9,929
Other liabilities (note 11) 18,083 15,847
117,432 110,148
Equity of Canada 1,392,122 1,404,092
TOTAL 1,509,554 1,514,240


2007 2006
(in thousands of dollars)
Equity of Canada, beginning of year 1,404,092 1,397,937
Net cost of operations (315,921) (288,388)
Current year appropriations used (note 3) 314,416 288,024
Revenue not available for spending (8,240) (4,900)
Refunds of previous year's expenses (742) (453)
Change in net position in the Consolidated Revenue Fund (note3) (5,851) 8,047
Services received without charge from other government departments (note 14a) 4,368 3,825
Equity of Canada, end of year 1,392,122 1,404,092


2007 2006
(in thousands of dollars)
Operating activities
Net cost of operations 315,921 288,388
Non-cash items:
Amortization of tangible capital assets (90,963) (92,000)
Loss on write-offs of capital assets 85 -
Gain on disposal of tangible capital assets 23 -
Services provided without charge other government departments (4,368) (3,825)
Variations in Statement of Financial Position:
Increase (decrease) in prepaid expenses 36,837 55,842
Increase (decrease) accounts receivable and advances 1,090 (1,943)
Increase (decrease) accounts payable and accrued liabilities (8,842) 11,581
Decrease (increase) deferred revenue 4,031 (9)
Increase (decrease) vacation pay and compensatory leave (202) (75)
Increase (decrease) employee severance benefits (35) (693)
Increase (decrease) other liabilities (2,236) (3,724)
Cash used by operating activities 251,341 253,542
Capital Investment activities
Acquisition of tangible capital assets 48,350 37,176
Transfer between departments (Transport Canada) (85) -
Proceeds from disposal of tangible capital assets (23) -
Cash used by capital investment activities 48,242 37,146
Financing activities
Net Cash provided by Government of Canada (299,583) (290,718)

Contractual obligations. (note 13)

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


3.2.9 Response to Parliamentary Committees, Audits and Evaluations for Fiscal-Year 2006-2007

Response to Parliamentary Committees

No recommendation was received during the period covered by this report.

Response to the Auditor General

No recommendation was received during the period covered by this report. However, a Status Update for 2006-2007 on the 2002 recommendations was produced.

To learn more about the Status Update, go to: http://www.space.gc.ca/asc/eng/
resources/publications/pr-2005_response.asp

External Audits

The Public Service Commission tabled an Audit Report in May 2006.

To learn more about the Audit Report, go to: http://www.psc-cfp.gc.ca/audit-verif/reports/2006/csa/index_e.htm

Internal Audits or Evaluations

Several Audits and Evaluations were conducted in 2006-2007. The reports will be tabled in 2007-2008.

To learn more about previous year audits and evaluations, go to: http://www.space.gc.ca/
asc/eng/resources/publications/default.asp


Annexes

The following tables are reported on the CSA Web site at the following address:
http://www.space.gc.ca/asc/eng/resources/publications/default.asp

3.2.10) Policy on Service Standards for External Fees

3.2.11) Details on Project Spending

3.2.12) Status Report on Major Crown Projects

3.2.13) Details on Transfer Payments Programs (TPPs)

3.2.14) Procurement and Contracting

3.2.15) Travel Policies

3.2.16) Fuel Storage Tanks