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SECTION III: SUPPLEMENTARY INFORMATION

Annex 1: Financial Tables

Table 1: Comparison of Planned to Actual Spending


($ millions) 2006–2007(b)
2004–2005
Actual
2005–2006
Actual
Main Estimates Planned Spending Total Authorities Actual
             
Budgetary            
Geographic Programs 1,248.60 1,399.20 1,518.93 1,601.75 1,622.67 1,563.21
Multilateral Programs 1,652.22 1,280.21 1,066.77 1,042.44 1,107.22 1,080.76
Canadian Partnership 276.34 272.84 279.61 279.61 289.25 273.41
Policy Coherence 55.68 67.97 55.37 65.34 64.19 64.03
Engaging Canadians 19.36 24.62 14.91 14.91 36.78 33.26
Total Budgetary 3,252.20 3,044.84 2,935.59 3,004.05 3,120.11 3,014.67
             
Non-Budgetary            
Multilateral Programs(a) 3.00 3.49 3.27 3.27 3.32 3.32

Canada Investment Fund for Africa

  25.09 36.00 36.00 74.91 25.27
Total Non-Budgetary 3.00 28.59 39.27 39.27 78.23 28.59
             
Total Agency 3,255.20 3,073.43 2,974.86 3,043.32 3,198.34 3,043.26
             
Less: Non-respendable revenue 92.60 47.20 0.00 0.00 0.00 23.40
Plus: Cost of services received without charge 18.70 18.58 0.00 24.94 0.00 19.65
Net Cost of Agency 3,181.30 3,044.81 2,974.86 3,068.26 3,198.34 3,039.51
             
Full Time Equivalents 1,527 1,607   1,578   1,671

  1. Excludes $189.9 million in issuance of notes issued to the International Financial Institution Fund Accounts.
  2. Variance: CIDA's 2006-2007 Total Authorities and Actual Spending were increased compared with Planned Spending through payments made for foreign aid of $155.0 million.

Table 2: Resources by Program Activity


2006–2007
($ millions) Budgetary Plus: (Non-Budgetary)  
Operating Grants Contributions and Other Transfer Payments Total: Gross Budgetary Expenditures Total: Net Budgetary Expenditures Loans, Investments, and Advances(c) Total
               
Geographic Programs              
Main Estimates 126.62 447.32 944.99 1,518.93 1,518.93 36.00 1,554.93
Planned Spending 124.43 502.32 974.99 1,601.75 1,601.75 36.00 1,637.75
Total Authorities 125.45 599.44 897.78 1,622.67 1,622.67 74.91 1,697.58
Actual Spending 120.39 545.11 897.71 1,563.21 1,563.21 25.27 1,588.48
               
Multilateral Programs              
Main Estimates 28.43 748.58 289.77 1,066.77 1,066.77 3.27 1,070.04
Planned Spending 28.43 724.25 289.77 1,042.44 1,042.44 3.27 1,045.71
Total Authorities(a) 38.71 692.81 375.70 1,107.22 1,107.22 3.32 1,110.54
Actual Spending 34.49 673.49 372.78 1,080.76 1,080.76 3.32 1,084.08
               
Canadian Partnership              
Main Estimates 28.23 31.95 219.43 279.61 279.61 0.00 279.61
Planned Spending 28.23 31.95 219.43 279.61 279.61 0.00 279.61
Total Authorities 28.92 23.72 236.62 289.25 289.25 0.00 289.25
Actual Spending 25.38 19.28 228.75 273.41 273.41 0.00 273.41
               
Policy Coherence              
Main Estimates 46.41 6.20 2.76 55.37 55.37 0.00 55.37
Planned Spending 46.41 11.20 7.74 65.35 65.35 0.00 65.35
Total Authorities 49.79 5.40 9.01 64.19 64.19 0.00 64.19
Actual Spending 49.79 5.30 8.95 64.04 64.04 0.00 64.04
               
Engaging Canadians              
Main Estimates 4.78 0.00 10.13 14.91 14.91 0.00 14.91
Planned Spending 4.78 0.00 10.13 14.91 14.91 0.00 14.91
Total Authorities 6.63 8.35 21.80 36.78 36.78 0.00 36.78
Actual Spending 6.63 5.05 21.58 33.26 33.26 0.00 33.26
Total Main Estimates 234.47 1,234.05 1,467.07 2,935.59 2,935.59 39.27 2,974.86
Total Planned Spending 232.28 1,269.72 1,502.05 3,004.05 3,004.05 39.27 3,043.32
Total Authorities 249.49 1,329.72 1,540.91 3,120.11 3,120.11 78.23 3,198.34
Total Actual Spending(b) 236.67 1,248.22 1,529.78 3,014.67 3,014.67 28.59 3,043.26

  1. Includes $9.3 million due to loss for revaluation of assets at year-end.
  2. Excludes $23.4 million in Non-respendable revenue credits and Cost of services received without charge ($19.3 million).
  3. Excludes $189.9 million in issuance of notes issued to the International Financial Institution Fund Accounts.

Table 3: Voted and Statutory Items


    2006-2007
Voted or Statutory Item Truncated Vote or Statutory Wording ($ thousands) Main Estimates Planned Spending Total Authorities Total Actuals
           
  Budgetary        
15 Operating expenditures 210,666 208,481 218,202 205,394
20 Grants and contributions 2,421,158 2,491,807 2,472,338 2,379,715
(S) Minister of International Cooperation - Salary and motor car allowances 73 73 73 73
(S) Payments to the International Financial Institution Fund Accounts 279,962 279,962 243,284 243,284
(S) Contributions to employee benefit plans 23,728 23,728 21,892 21,892
(S) Spending of proceeds from the disposal of surplus Crown assets 0 0 7 0
(S) Loss for revaluation year end 0 0 9,311 9,311
(S) Collection agency fees 0 0 2 2
(S) Payments made against budgetary surplus as per Bill C-48 0 0 155,000 155,000
  Total Budgetary 2,935,587 3,004,051 3,120,109 3,014,671
           
  Non-budgetary        
L40 Issuance of notes to the International Financial Institution Fund Accounts .. .. .. ..
L45 Payment and issuance of notes to International Financial        
  Institutions - Capital Subscriptions 3,270 3,270 3,324 3,324
L50 Investment contributions pursuant to section 3 of the Canada Fund for Africa Act 36,000 36,000 74,906 25,267
(S) Payments to International Financial Institutions - Capital Subscriptions 0 0 0 0
  Total Non-budgetary 39,270 39,270 78,230 28,591
           
  Total Agency 2,974,857 3,043,321 3,198,339 3,043,262

The variance between the total Authorities and the Actual Spending is $155.1 million: from the Grants and Contributions Budget, $91.6 million were lapsed following Treasury Board Decision and a further $1.0 million was not spent; $12.8 million were lapsed from the Operational Budget; $49.6 million in non-budgetary expenses did not materialize.

Table 4: Services Received Without Charge


($ millions) 2006-2007
Accommodations provided by Public Works and Government Services Canada 8.18
Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by the Treasury Board of Canada, Secretariat 10.68
Salary and associated expenditures of legal services provided by the Department of Justice Canada 0.83
Total Cost of services received without charge 19.65

Table 5: Loans, Investments, and Advances (Non-Budgetary)


    2006-2007
($ millions) Actual 2004–2005 Actual 2005–2006 Main Estimates Planned Spending Total Authorities Actual
             
Multilateral Programs:            
Payments to International Financial Institutions - Capital Subscriptions (L45) 3.5 3.5 3.3 3.3 3.3 3.3
Payments to International Financial Institutions - Capital Subscriptions (S) -0.5 0 0 0 0 0
Investment contributions pursuant to section 3 of the Canada Fund for Africa Act (L50) 0 25.1 36 36 74.9 25.3
Total Loans, Investments, and Advances 3 28.6 39.3 39.3 78.2 28.6

Table 6: Sources of Respendable and Non-Respendable Revenue


    2006-2007
($ millions) Actual 2004–2005 Actual 2005–2006 Main Estimates Planned Spending Total Authorities Actual
             
Gain for revaluation at year end of International Financial Institutions liabilities 76.8 29.6 0.0 0.0 0.0 9.3
Refund of previous year expenditures 12.7 13.9 0.0 0.0 0.0 10.9
Return on investments 2.7 2.7 0.0 0.0 0.0 2.9
Miscellaneous 0.4 1.0 0.0 0.0 0.0 0.2
Total Non-Respendable Revenue 92.6 47.2 0.0 0.0 0.0 23.4

Table 7: Resource Requirements by Branch


2006–2007
Organization Program Activity ($ millions)
Geographic Programs Multilateral Programs Canadian Partnership Policy Coherence Engaging Canadians Total
Africa Branch            
Main Estimates 654.6 0.0 0.0 4.1 0.0 658.7
Planned Spending 652.4 0.0 0.0 4.1 0.0 656.5
Total Authorities 633.1 0.0 0.0 4.9 0.0 638.0
Actual Spending 609.1 0.0 0.0 4.9 0.0 614.0
Americas Branch            
Main Estimates 182.6 0.0 0.0 6.6 0.0 189.2
Planned Spending 182.6 0.0 0.0 6.6 0.0 189.2
Total Authorities 262.8 0.0 0.0 3.0 0.0 265.9
Actual Spending 253.4 0.0 0.0 3.0 0.0 256.5
Asia Branch            
Main Estimates 428.3 0.0 0.0 3.0 0.0 431.3
Planned Spending 513.3 0.0 0.0 3.0 0.0 516.3
Total Authorities 487.0 0.0 0.0 3.4 0.0 490.4
Actual Spending 469.6 0.0 0.0 3.4 0.0 473.0
Europe Middle East and Maghreb Branch            
Main Estimates 204.6 0.0 0.0 3.1 0.0 207.8
Planned Spending 204.6 0.0 0.0 3.1 0.0 207.8
Total Authorities 187.3 0.0 0.0 8.4 0.0 195.7
Actual Spending 180.6 0.0 0.0 8.4 0.0 189.0
Multilateral Programs Branch            
Main Estimates 0.0 1051.4 0.0 1.9 0.0 1053.3
Planned Spending 0.0 1027.1 0.0 1.9 0.0 1029.0
Total Authorities 0.0 1090.9 0.0 1.8 0.0 1092.8
Actual Spending 0.0 1065.0 0.0 1.8 0.0 1066.9
Canadian Partnership Branch            
Main Estimates 0.0 0.0 268.8 1.7 7.3 277.8
Planned Spending 0.0 0.0 268.8 1.7 7.3 277.8
Total Authorities 0.0 0.0 277.3 2.2 15.2 294.7
Actual Spending 0.0 0.0 262.1 2.2 13.4 277.7
Agency Executive (includes Office for Democratic Governance)            
Main Estimates 6.0 1.9 1.3 1.8 1.8 12.8
Planned Spending 6.0 1.9 1.3 1.8 1.8 12.8
Total Authorities 5.5 1.7 1.3 1.6 15.2 25.3
Actual Spending 5.3 1.7 1.2 1.6 13.4 23.2
Communications Branch            
Main Estimates 0.0 0.0 0.0 0.0 5.1 5.1
Planned Spending 0.0 0.0 0.0 0.0 5.1 5.1
Total Authorities 5.3 1.6 1.2 1.5 5.5 15.1
Actual Spending 5.1 1.6 1.1 1.5 5.7 15.0
Human Resources and Corporate Services Branch            
Main Estimates 20.5 6.5 4.6 6.1 0.4 38.0
Planned Spending 20.5 6.5 4.6 6.1 0.4 38.0
Total Authorities 22.1 6.9 5.0 6.3 0.4 40.7
Actual Spending 21.3 6.6 4.7 6.3 0.4 39.3
Information Management an Technology Branch            
Main Estimates 17.1 5.4 3.8 5.1 0.3 31.7
Planned Spending 17.1 5.4 3.8 5.1 0.3 31.7
Total Authorities 15.7 4.9 3.6 4.5 0.3 29.0
Actual Spending 15.2 4.8 3.4 4.5 0.3 28.1
Policy Branch            
Main Estimates 0.0 0.0 0.0 20.6 0.0 20.6
Planned Spending 0.0 0.0 0.0 30.5 0.0 30.5
Total Authorities 0.0 0.0 0.0 25.4 0.0 25.4
Actual Spending 0.0 0.0 0.0 25.3 0.0 25.3
Performance and Knowledge Management Branch            
Main Estimates 5.0 1.6 1.1 1.5 0.1 9.3
Planned Spending 5.0 1.6 1.1 1.5 0.1 9.3
Total Authorities 3.9 1.2 0.9 1.1 0.1 7.1
Actual Spending 3.7 1.2 0.8 1.1 0.1 6.9
Total Main Estimates 1518.9 1066.8 279.6 55.4 14.9 2935.6
Total Planned Spending 1601.7 1042.4 279.6 65.3 14.9 3004.1
Total Authorities 1622.7 1107.2 289.3 64.2 36.8 3120.1
Total Actual Spending 1563.2 1080.8 273.4 64.0 33.3 3014.7

Table 8a: User Fees - User Fees Act


  2006-2007 Planning Years
A. User Fee Fee type Fee-setting Authority Date Last Modified Forecast Revenue ($000) Actual Revenue ($000) Full Cost ($000) Performance Standard Performance Results Fiscal Year Forecast Revenue ($000) Estimated Full Cost ($000)
Fees charged for the processing of access requests filed under the Access to Information Act ( R ) Access to Information Act 1992 1.50 1.18 418.72 Response within the time limit prescribed by the Act; minimum rate of 80% Response time of 87.5% for 2006-2007 2006-2007 n.a. n.a.
                  2007-2008 n.a. n.a.
    Sub-total ( R )   1.50 1.18 418.72     2008-2009 n.a. n.a.
    Sub-total ( O )   - - -          
                       
    Total   1.50 1.18 418.72          
                       
B. Last Date Modified
C. Other Information

Table 8b: User Fees - Policy on Service Standards for External Fees


A. External Fee Service Standard Performance Standard Stakeholder Consultation
Fees charged for the processing of access requests filed under the Access to Information Act Minimum of 80% 87.5% in 2006-2007 not applicable, as per policies and guidelines issued by the Treasury Board Secretariat, institution responsible for the ATIP program
       
B. Other Information

Table 9: Details on Transfer Payments by Business Line


    2006-2007
($ thousands)

Actual 2004–2005
1

Actual 2005–2006
2
Planned Spending
3
Total Authorities
4
Actual
5
Variance
(5-3)
Grants            
Geographic Programs
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 298,853 384,463 482,577 556,000 518,468 35,891
 
Programming against hunger, malnutrition and disease through international development, research and nutrition institutions; Canadian, international and local non-governmental organizations; the International Development Research Centre; developing countries, their institutions, their organizations and their agencies in such countries for the benefit of recipients in developing countries. 1,700 5,615 1,700 15,500 14,496 12,796
 
Humanitarian assistance or disaster preparedness to countries, their institutions, organizations and agencies and persons in such countries, and to international institutions and Canadian and international non-governmental orgnizations for operations, programs projects, activities and appeals. 9,225 12,275 18,047 27,241 11,500 -6,547
 
Grants to Canadian, international, regional and developing country institutions, organizations and agencies, developing-country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 0 0 0 700 650 650
Multilateral Programs
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 551,594 234,450 224,513 208,200 207,318 -17,195
 
Programming against hunger, malnutrition and disease through international development, research and nutrition institutions; Canadian, international and local non-governmental organizations; the International Development Research Centre; developing countries, their institutions, their organizations and their agencies in such countries for the benefit of recipients in developing countries. 367,366 285,952 384,799 298,859 289,892 -94,907
 
Humanitarian assistance or disaster preparedness to countries, their institutions, organizations and agencies and persons in such countries, and to international institutions and Canadian and international non-governmental orgnizations for operations, programs projects, activities and appeals. 220,376 110,259 114,935 185,750 176,277 61,342
Canadian Partnership
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 800 1,000 1,700 3,765 3,600 1,900
 
Grants to Canadian, international, regional and developing country institutions, organizations and agencies, developing-country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 28,310 21,376 22,000 17,450 14,710 -7,290
 
Development assistance as education and training for individuals. 8,046 6,491 8,250 2,500 967 -7,283
Policy Coherence
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 2,512 4,159 8,900 3,900 3,809 -5,091
 
Grants to Canadian, international, regional and developing country institutions, organizations and agencies, developing-country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 1,611 1,480 2,300 1,500 1,487 -813
Engaging Canadians
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 0 0 0 3,700 3,559 3,559
 
Grants to Canadian, international, regional and developing country institutions, organizations and agencies, developing-country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 0 1,750 0 4,650 1,486 1,486
Total Grants 1,490,393 1,069,270 1,269,721 1,329,715 1,248,219 -21,502
 
Contributions
Geographic Programs
Development assistance, including payments for loan agreements issued under the authority of previous Appropriation Acts, to all levels of developing country and territories governments, including their institutions, organizations and agencies, and contributions with countries in transition and contributions to Canadian, other donor country, international and regional institutions, organizations and agencies, to all levels of other donor country government and provincial governments, their institutions, organizations and agencies, and to private sector firms in support of regional and country-specific development assistance projects, programs and activities, and to persons capable of delivering aid activities or actively engaged in development issues. 770,643 810,549 974,308 855,484 855,416 -118,892
 
Contributions for cooperation with countries in transition in Central and Eastern Europe and the former Soviet Union. 73,370 57,341 0 0 0 0
 
Contributions to Canadian, international, regional and developing country institutions, organizations and agencies, developing country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 610 911 685 306 306 -379
 
Humanitarian assistance or disaster preparedness to countries, their institutions, organizations and agencies and persons in such countries, and to international institutions and Canadian and international non-governmental orgnizations for operations, programs projects, activities and appeals. 0 1,614 0 1,994 1,986 1,986
 
Multilateral Programs
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 1,616 1,766 4,300 4,040 1,886 -2,414
 
Programming against hunger, malnutrition and disease through international development, research and nutrition institutions; Canadian, international and local non-governmental organizations; the International Development Research Centre; developing countries, their institutions, their organizations and their agencies in such countries for the benefit of recipients in developing countries. 115,717 9,586 290 3,160 3,153 2,863
 
Contribution to the Inter-American Development Bank. 1,139 945 1,200 1,200 880 -320
 
Humanitarian assistance or disaster preparedness to countries, their institutions, organizations and agencies and persons in such countries, and to international institutions and Canadian and international non-governmental orgnizations for operations, programs projects, activities and appeals. 13,094 12,892 2,814 4,770 4,770 1,956
 
Development assistance, including payments for loan agreements issued under the authority of previous Appropriation Acts, to all levels of developing country and territories governments, including their institutions, organizations and agencies, and contributions with countries in transition and contributions to Canadian, other donor country, international and regional institutions, organizations and agencies, to all levels of other donor country government and provincial governments, their institutions, organizations and agencies, and to private sector firms in support of regional and country-specific development assistance projects, programs and activities, and to persons capable of delivering aid activities or actively engaged in development issues. 0 0 0 2,650 2,609 2,609
 
Incentives to Canadian, international and developing country private sector firms, investors, institutions, organizations, and governments in support of private sector development, projects and activities. 750 1,200 1,200 1,600 1,200 0
Canadian Partnership
Contributions to Canadian, international, regional and developing country institutions, organizations and agencies, developing country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 189,956 187,242 162,183 204,542 204,540 42,357
 
Incentives to Canadian, international and developing country private sector firms, investors, institutions, organizations, and governments in support of private sector development, projects and activities. 36,379 30,758 57,242 31,292 23,462 -33,780
 
Development assistance, including payments for loan agreements issued under the authority of previous Appropriation Acts, to all levels of developing country and territories governments, including their institutions, organizations and agencies, and contributions with countries in transition and contributions to Canadian, other donor country, international and regional institutions, organizations and agencies, to all levels of other donor country government and provincial governments, their institutions, organizations and agencies, and to private sector firms in support of regional and country-specific development assistance projects, programs and activities, and to persons capable of delivering aid activities or actively engaged in development issues. 0 250 0 785 750 750
Engaging Canadians
Contributions to Canadian, international, regional and developing country institutions, organizations and agencies, developing country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 1,311 11,602 5,950 16,183 16,181 10,231
 
Contributions to Canadian or international communications organizations, other federal, provincial or municipal governments, broadcasters and producers, other donor country governments and institutions, organizations and agencies, and persons in support of the Development Information Program involving the production and dissemination of development information, educational materials and related activities. 4,323 3,963 4,178 4,178 3,972 -206
 
Contributions for cooperation with countries in transition in Central and Eastern Europe and the former Soviet Union. 3 13 0 0 0 0
 
Development assistance, including payments for loan agreements issued under the authority of previous Appropriation Acts, to all levels of developing country and territories governments, including their institutions, organizations and agencies, and contributions with countries in transition and contributions to Canadian, other donor country, international and regional institutions, organizations and agencies, to all levels of other donor country government and provincial governments, their institutions, organizations and agencies, and to private sector firms in support of regional and country-specific development assistance projects, programs and activities, and to persons capable of delivering aid activities or actively engaged in development issues. 0 2,244 0 1,435 1,431 1,431
Policy Coherence
Development assistance to international development institutions and organizations for operations, programs and projects, and to international financial institutions. 1,495 2,412 0 260 211 211
 
Contributions to Canadian, international, regional and developing country institutions, organizations and agencies, developing country governments, their institutions, organizations and agencies, to provincial and municipal governments, their institutions, organizations and agencies in support of development cooperation and development education programs and to international non-governmental organizations in support of development assistance programs, projects and activities. 4,938 5,829 1,143 5,185 5,185 4,042
 
Development assistance, including payments for loan agreements issued under the authority of previous Appropriation Acts, to all levels of developing country and territories governments, including their institutions, organizations and agencies, and contributions with countries in transition and contributions to Canadian, other donor country, international and regional institutions, organizations and agencies, to all levels of other donor country government and provincial governments, their institutions, organizations and agencies, and to private sector firms in support of regional and country-specific development assistance projects, programs and activities, and to persons capable of delivering aid activities or actively engaged in development issues. 0 4,512 6,593 3,560 3,558 -3,035
 
Contributions for cooperation with countries in transition in Central and Eastern Europe and the former Soviet Union. 0 1,028 0 0 0 0
 
Total Contributions 1,215,344 1,146,657 1,222,086 1,142,624 1,131,496 -90,590
 
Other Transfer Payments
 
Geographic Programs
(S) Payments for foreign aid 0 0 0 40,000 40,000 40,000
Multilateral Programs
(S) Encashment of notes issued to the development assistance funds of the IFIs in accordance with the International Development (Financial Institutions) Assistance Act. 265,692 271,521 279,962 243,284 243,284 -36,678
(S) Payments for foreign aid 0 295,000 0 115,000 115,000 115,000
Total Other Transfer Payments 265,692 566,521 279,962 398,284 398,284 118,322
 
Total 2,971,429 2,782,448 2,771,769 2,870,623 2,777,999 6,230

Annex 2: Financial Statements

Statement of Management Responsibility

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 management of the Canadian International Development Agency (CIDA). 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 fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of CIDA's financial transactions. Financial information submitted to the Public Accounts of Canada and included in CIDA'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 CIDA.

Signatures

The unaudited financial statements are prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note 3 on page 93 of the unaudited financial statements reconciles these two accounting methods.


Canadian International Development Agency Statement of Operations (unaudited) for the year ended March 31, ($ thousands)
     
  2007 2006
Expenses (Note 4)    
     
Geographic programs 1,632,855 1,424,409
Multilateral programs 1,035,947 1,210,358
Canadian Partnership 274,511 302,149
Policy Coherence 64,663 71,457
Engaging Canadians 33,176 24,807
     
Total Expenses 3,041,152 3,033,180
     
Revenues (Note 5)    
     
Geographic programs 17,982 19,320
Multilateral programs 9,449 29,739
Canadian Partnership 101 46
Policy Coherence 0 2
Engaging Canadians 6 1
     
Total Revenues 27,538 49,108
     
Net Cost of Operations 3,013,614 2,984,072
The accompanying notes form an integral part of these financial statements.


Canadian International Development Agency Statement of Financial Position (unaudited) as at March 31 (in thousands of dollars)
     
  2007 2006
Assets    
     
Financial assets    
Accounts receivable and advances (Note 6) 5,435 16,272
Loans to developing countries and international financial institutions (Note 7) 168,469 147,363
Investments and advances to international financial institutions (Note 8) 5,536,717 5,351,902
Allowance for valuation of investments and advances to international financial institutions (Note 8) (5,536,717) (5,351,902)
Canada Investment Fund for Africa (Note 9) 100,000 100,000
Total financial assets 273,904 263,635
     
Non-financial assets    
Prepaid expenses 105,267 99,246
Tangible capital assets (Note 10) 2,948 4,055
Total non-financial assets 108,215 103,301
     
Total 382,119 366,936
     
Liabilities    
Accounts payable and accrued liabilities 687,862 474,847
Vacation pay and compensatory leave 8,241 7,963
Notes payable to international financial institutions (Note 11) 115,873 169,263
Accrued liability for matching funds programs 154,201 199,473
Employee severance benefits (Note 12) 31,184 26,287
Other liabilities (Note 13) 5,815 922
Total liabilities 1,003,176 878,755
     
Equity of Canada (621,057) (511,819)
     
Total 382,119 366,936
Contingent liabilities (Note 14)    
Contractual obligations (Note 15)    
     
The accompanying notes form an integral part of these financial statements.


Canadian International Development Agency Statement of Equity of Canada (unaudited) as at March 31 ($ thousands)
     
  2007 2006
Equity of Canada, beginning of year (511,819) (1,025,462)
     
Net cost of operations (3,013,614) (2,984,072)
Current year appropriations used (Note 3) 3,233,183 3,266,930
Revenue not available for spending (12,085) (15,506)
Change in net position in the Consolidated Revenue Fund (Note 3) (336,368) 227,711
Services provided without charge by other government departments (Note 16) 19,646 18,580
Equity of Canada, end of year (621,057) (511,819)
     
The accompanying notes form an integral part of these financial statements.


Canadian International Development Agency Statement of Cash Flow (unaudited) as at March 31 ($ thousands)
     
  2007 2006
Operating activities    
     
Cash received from:    
Interest and service fees on loans 10,080 2,410
Other revenues 3,882 94
  13,962 2,504
     
Cash paid for:    
Transfer payments (2,418,740) (2,956,313)
Salaries and employee benefits (157,054) (150,927)
Operating and maintenance (76,060) (85,254)
  (2,651,854) (3,192,494)
     
Cash used by operating activities (2,637,892) (3,189,990)
     
Investment activities    
Net acquisitions of capital assets (450) (505)
Decrease in loans 26,368 16,221
Increase in investments and advances (247,489) (279,767)
Increase in the Canada Investment Fund for Africa (25,267) (25,094)
     
Cash used for investment activities (246,838) (289,145)
     
Financing activities    
Net cash provided by Government of Canada 2,884,730 3,479,135
The accompanying notes form an integral part of these financial statements

Notes to the Financial Statements (unaudited)

1. Authority and Objectives

The Canadian International Development Agency (CIDA) is designated as a department for the purposes of the Financial Administration Act by Order-in-Council P.C. 1968-923 of May 8, 1968. The authority for the CIDA program and related purposes is found in the Department of Foreign Affairs and International Trade Act, in the Annual Appropriations Act and in the International Development (Financial Institutions) Assistance Act. CIDA is the lead government organization responsible for Canada's Official Development Assistance (ODA).

The three goals of Canadian foreign policy are the promotion of prosperity, the protection of Canadians and global security, and the projection of Canadian values. CIDA's mandate is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world. CIDA also has a mandate to support democratic development and economic liberalization in the countries in transition in Eastern Europe and the former Soviet Union. CIDA fulfills its mandate through five main business lines:

  • The four geographic programs are responsible for country-to-country programs in Africa, Asia, Americas, and Europe, Middle East and Maghreb respectively, enabling the Government of Canada to plan and execute international cooperation activities through direct links with governments and organizations in developing countries.

  • The Canadian Partnership Program is a responsive program that is aligned with CIDA's mandate and strategic objectives through its cost-sharing partnerships with civil-society and private sector organizations in Canada and developing countries. Multi-year funding is provided, on the basis of merit, to Canadian and international non-governmental organizations (NGOs) and volunteer-sending organizations. Project funding is also provided through competitive mechanisms within the context of either time-bound or open-ended competitions. In addition, a conference secretariat supports the participation of developing country delegates at international conferences.

  • CIDA's multilateral programs are responsible for managing Canada's global development programs through substantial core contributions to multilateral development institutions. It also undertakes targeted programming through multilateral, international, and local organizations responsible for managing the International Humanitarian Assistance Program.

  • Policy coherence leads policy research, analysis and development to support and guide the Agency's plans and priorities and Canada's broader international assistance objectives and commitments. It ensures coherence and alignment between corporate and program priorities and ensures policy coherence between CIDA and other government departments that manage non-aid policies that could include, but are not limited to, international trade, investment, technology transfer, and immigration.

  • By engaging Canadians, CIDA improves public awareness, education and engagement of Canadians in supporting Canada's involvement in international cooperation and development.

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:

(a) Parliamentary appropriations

CIDA is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to CIDA 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.

(b) Net cash provided by Government

CIDA operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by CIDA is deposited to the CRF and all cash disbursements made by CIDA 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

Represents the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by CIDA. 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. CIDA's revenues mainly consist of foreign exchange gain on revaluation as well as interest and service fees on loans.

(e) Expenses

Expenses are recorded on the accrual basis. CIDA's expenses mainly consist of operating transactions, grants and contributions and foreign exchange loss on revaluation.

  • Grants are recognized in the year in which the conditions for payment are met. In the case of grants that do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.

  • 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.

(f) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Superannuation Plan, a multi-employer, defined benefit, pension plan administered by the Government of Canada. CIDA's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require CIDA to make contributions for any actuarial deficiencies of the Plan.

  2. 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.

(g) Accounts receivable and advances

Accounts receivable and advances are stated at amounts expected to be ultimately realized. An allowance is taken for receivables where recovery is considered uncertain.

(h) Loans to developing countries and international financial institutions (IFI)

Loans to developing countries and International Financial Institutions for international development assistance are recorded at cost and are adjusted to reflect the concessionary terms of those loans made on a long-term, low interest or interest-free basis. The discount determined at the date of the issuance is amortized to revenue using a straight-line amortization. No new loans have been recorded by CIDA since April 1, 1986.

An allowance for valuation is further used to reduce the carrying value of the loans to amounts that approximate their net realizable value. The allowance is determined based on the Government's identification and evaluation of countries that have formally applied for debt relief, estimated probable losses that exist on the remaining portfolio, and changes in the economic conditions of sovereign debtors.

See note 7 for more details.

(i) Investments and advances to international financial institutions (IFI)

Investments and advances are recorded at their cost and are subject to annual valuation to reflect reductions from the recorded value to the estimated realizable value.

Investments
Investments consist of subscriptions to the share capital of a number of international financial institutions and are composed of both paid-in and callable capital. Subscriptions to international organizations do not provide a return on investment, but are repayable on termination of the organization or withdrawal from it. Paid-in capital is made through a combination of cash payments and the issuance of non-interest bearing, non-negotiable notes payable to the organization. Callable share capital is composed of resources that are not paid to the banks but act as a guarantee to allow them to borrow on international capital markets to finance their lending program.

Advances
Advances are issued to international financial institutions that use these funds to issue loans to developing countries at concessionary terms.

For investments and advances to international financial institutions, an allowance is established based on their collectibility.

See note 8 for more details.

(j) Prepaid expenses

CIDA has the authority to make payments under the terms of a contribution agreement before the expenditures are incurred. The portion of a payment which is intended to cover expenses to be incurred in a subsequent fiscal year is recorded as prepaid expenses.

(k) Tangible capital assets

All tangible capital assets having an initial cost of $10,000 or more are recorded at their acquisition cost.

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


Asset Class Amortization period
Communication equipment 3 years
Informatics equipment 5 years
Computer Software 3-5 years
Other equipment 5 years
Vehicles 5 years

(l) Notes payable to international financial institutions (IFI)

Notes payable to international financial institutions represent non-interest bearing, non-negotiable demand notes for share capital subscriptions and advances that are later presented for encashment according to the terms of the agreement.

(m) Contingent liabilities

Contingent liabilities are potential liabilities that 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.

(n) Foreign currency transactions

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 March 31. Gains and losses resulting from foreign currency transactions are included in the Statement of Operations.

(o) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies are consistent with Canadian generally accepted accounting principles for the public sector, which 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 in determining the allowance for doubtful accounts, allowance for loans, the useful life of tangible capital assets, contingent liabilities and the liability for employee severance benefits. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

CIDA 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, CIDA 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 of dollars)
Net cost of operations 3,013,614 2,984,072
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
   
   Amortization of tangible capital assets (1,557) (1,668)
   Bad debt expenses (9,284) (1,233)
    Justice Canada's legal fees (596) (545)
    Services provided without charge (19,646) (18,580)
    Refunds of prior years expenditures 10,912 13,863
    Gains on foreign exchange 9,339 29,589
    Other revenue 3,125 3,735
    Prepaid expenses 4,779 (49,325)
    Allowance for valuation of loans, investments and advances 117,472 83,767
    Vacation pay and compensatory leave (278) 916
    Employee severance benefits (4,897) (1,727)
    Contingent liability related to the Budget Implementation    
    Act, 2007 (110,000) 0
  3,012,983 3,042,864
 
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
   
   Capital acquisitions and prepaid expenses 1,688 1,980
    Advances / subscriptions to International Financial Institutions 193,245 196,992
   Payments to the Canada Investment Fund for Africa 25,267 25,094
Current year appropriations used 3,233,183 3,266,930

(b) Appropriations provided and used


  2007 2006
  (in thousands of dollars)
Appropriations provided    
 
Budgetary    
Vote 30 (15) - Operating expenditures 218,202 212,582
Vote 35 (20) - Grants and contributions 2,472,339 2,451,926
Statutory amounts 429,568 619,241
Total Budgetary 3,120,109 3,283,749
 
Non-Budgetary    
Vote L40 (L25) - Issuance of notes to the Fund Accounts 189,922 193,500
Vote L45 (L30) - Issuance of notes for Capital Subscriptions 3,324 4,600
Vote L50 (L35) - Contribution to the Canada Investment Fund for Africa 74,906 45,000
Statutory amounts 8,077,389 8,152,775
Total Non-Budgetary 8,345,541 8,395,875
 
Total appropriations provided 11,465,650 11,679,624
 
Less:    
Appropriations available for future years (8,077,390) (8,152,783)
Lapsed appropriations: Operating (12,807) (2,898)
Lapsed appropriations: Grants and contributions (92,624) (235,999)
Statutory appropriations lapsed (7) 0
Lapsed non-budgetary appropriations (49,639) (21,014)
Current year appropriations used 3,233,183 3,266,930

Note: Vote numbers of 2005-06 corresponding to the equivalent Vote numbers of 2006-07 are presented in brackets.

Note: Of the $12,8M lapsed appropriations for operating expenses, $0,8 M was in Treasury Board frozen allotments and the Agency should be able, pending TB approval, to carry forward $10,5 M of this authority to 2007-08. Of the $92,6M lapsed appropriations for grants and contributions, $92M were in Treasury Board frozen allotments.

(c) Reconciliation of net cash provided by Government to current year appropriations used


  2007 2006
  (in thousands of dollars)
 
Net cash provided by Government 2,884,730 3,479,135
 
Revenue not available for spending 12,085 15,506
 
Change in net position in the Consolidated Revenue Fund    
Variation in accounts receivable and advances 10,837 (1,237)
Variation in accounts payable and accrued liabilities 103,015 (462,694)
Allowances related to loans, investments and advances to developing countries and international financial institutions 234,854 245,643
Other adjustments (12,338) (9,423)
  336,368 (227,711)
Current year appropriations used 3,233,183 3,266,930

4. Expenses

The following table presents details of expenses by category:


  2007 2006
  (in thousands of dollars)
 
Transfer payments    
Other countries and international organizations 2,769,645 2,750,678
 
Operating    
Salaries and employee benefits 172,150 160,076
Professional and special services 44,690 50,749
Travel and relocation 16,948 18,019
Rentals 10,619 10,609
Loss on foreign exchange 9,311 30,209
Bad debts 9,284 1,233
Repair and maintenance 3,743 3,460
Machinery and equipment 1,879 2,597
Amortization of tangible capital assets 1,557 1,668
Other 1,326 3,882
Total operating expenses 271,507 282,502
 
Total Expenses 3,041,152 3,033,180

5. Revenues

The following table presents details of revenues by category:


  2007 2006
  (in thousands of dollars)
 
Amortization of discount on loans (15,074) (15,778)
Gains on foreign exchange (9,339) (29,589)
Interests and service fees on loans (2,579) (2,718)
Other revenues (546) (1,023)
 
Total Revenues (27,538) (49,108)

6. Accounts receivable and advances

Accounts receivable and advances for CIDA consist mainly of:

  • Recovery of an amount where the recipient has not complied with the terms and conditions of the contribution agreement for which a payment has been made.
  • Recovery of salary for CIDA's employees on secondment in another department or in a private organization.

The following table presents details of accounts receivable and advances:


  2007 2006
  (in thousands of dollars)
 
Interests and service fees on loans 6,669 8,286
Receivables from other Federal Government departments and agencies 3,301 1,750
Receivables from external parties 9,070 12,176
Accountable and standing advances 70 131
  19,110 22,343
Less: Allowance for doubtful accounts on external receivables (13,675) (6,071)
Total 5,435 16,272

7. Loans to developing countries and international financial institutions

The following table presents details of loans to developing countries and international financial institutions:


  2007 2006
  (in thousands of dollars)
 
(a) Rescheduled as per agreement with Government of Egypt in August 1992, Phase III of reorganization schedule. Next principal repayment due January 1, 2017:    
Egypt 44,996 44,996
 
(b) 30 year term, 7 year grace period, 3 percent interest per annum, with final repayments between September 1996 and January 2012:    
Brazil 0 1,757
Cuba 9,547 9,547
 
(d) 40 year term, 10 year grace period, non-interest bearing, with the final repayment in March 2007:    
Thailand 0 28
 
(e) 50 year term, 10 year grace period, non-interest bearing, with final repayments between March 2015 and September 2035:    
African Development Bank 1,719 1,844
Algeria 7,228 8,841
Andean Development Corporation 2,063 2,188
Argentina 187 205
Bolivia 636 678
Brazil 251 272
Central American Bank for Economic Integration 803 841
Chile 1,030 1,079
Colombia 289 316
Dominican Republic 3,887 4,214
Ecuador 4,457 4,762
Guatemala 2,031 2,081
Indonesia 195,918 205,197
Malaysia 1,546 1,609
Malta 425 450
Mexico 28 30
Morocco 8,087 8,380
Myanmar (Burma) 8,306 8,306
Pakistan 447,508 447,508
Paraguay 200 220
Peru 41 45
Philippines 1,743 1,841
Sri Lanka 92,118 97,051
Thailand 18,787 19,634
Tunisia 56,830 58,478
 
(f) 53 year term, 13 year grace period, non-interest bearing, with the final repayment in September 2025:    
Algeria 20,544 25,174
 
Subtotal 931,205 957,572
Less:    
Unamortized discount (607,848) (622,921)
 
Subtotal 323,357 334,651
Less:    
Allowance for valuation (154,888) (187,288)
 
Total 168,469 147,363
Note: Grace period refers to interval from date of issuance of the loan to first repayment of loan principal.

8. Investments and advances to international financial institutions

The following table presents details of investments and advances to international financial institutions:


  2007 2006
  (in thousands of dollars)
 
Investments    
African Development Bank 115,240 112,543
Asian Development Bank 178,975 180,687
Caribbean Development Bank 21,916 22,098
Inter-American Development Bank 207,534 209,904
 
  523,665 525,232
 
Advances    
African Development Fund 1,836,154 1,748,313
Asian Development Bank-Special 27,027 27,027
Asian Development Fund 1,868,753 1,817,102
Caribbean Development Bank - Agricultural Development Fund 2,000 2,000
Caribbean Development Bank - Commonwealth Caribbean Regional 4,618 4,672
Caribbean Development Bank-Special 188,956 175,539
Global Environment Facility Trust Fund 392,140 382,989
Inter-American Development Bank - Fund for Special Operations 361,200 362,740
Multilateral Investment Fund 20,857 11,388
International Bank for Reconstruction and Development 23,092 23,360
International Fund for Agriculture Development 204,532 192,107
International Monetary Fund 12,665 12,812
Montreal Protocol Fund 71,058 66,621
 
  5,013,052 4,826,670
 
Subtotal investments and advances 5,536,717 5,351,902
Less:    
Allowance for valuation (5,536,717) (5,351,902)
 
Total 0 0
 

9. Canada Investment Fund for Africa (CIFA)

The CIFA is a joint public-private sector initiative designed to provide risk capital for private investments in Africa that generate growth. The CIFA is a direct response to the New Partnership for Africa's Development (NEPAD) and the G8 Africa Action Plan. The main objectives of the CIFA are to optimize public-private investment in the Fund, to confer a beneficial development impact on Africa by way of increased foreign direct investment and to optimize the beneficial impact of the Fund's activities on Canadian interests.

The Government of Canada is a limited partner in the CIFA and its commitment towards the Fund is subject to matching funds of other investors and shall be equal to the lesser of: (i) $100 million and (ii) the aggregated commitments of all other limited partners of the partnership.

The following table presents details of the Canada Investment Fund for Africa:


  2007 2006
  (in thousands of dollars)
 
Cumulated payments as at March 31 53,327 25,094
Cumulated returns of capital as at March 31 (2,966) 0
Accrued liability as at March 31 49,639 59,586
Contingent liability as at March 31 (Note 14) 0 15,320
Total 100,000 100,000

10. Tangible Capital Assets
(in thousands of dollars)

Cost


Capital asset class Opening balance Acquisitions Disposal & write-offs Closing balance
Communication Equipment 623 0   623
Informatic Equipment 10,177 384   10,561
Computer Software 51 0   51
Other Equipment 1,367 35   1,402
Vehicles 83 31   114
Total 12,301 450 0 12,751

Accumulated amortization


Capital asset class Opening balance Amortization Disposal & write-offs Closing balance 2006 Net book value 2005 Net book value
Communication Equipment 623 0   623 0 0
Informatic Equipment 7,023 1,247   8,270 2,291 3,154
Computer Software 8 10   18 33 43
Other Equipment 547 284   831 571 820
Vehicles 45 16   61 53 38
Total 8,246 1,557 0 9,803 2,948 4,055

Amortization expense for the year ended March 31, 2007 is $1,557 (2006 - $1,668).

11. Notes payable to international financial institutions

The following table presents details of notes payable to international financial institutions:


  2007 2006
  (in thousands of dollars)
 
Investments    
Caribbean Development Bank 7,774 7,802
Advances    
Asian Development Fund 19,195 63,316
Caribbean Development Bank-Special 46,475 49,573
Global Environment Facility Trust Fund 32,960 48,572
 
Subtotal 108,099 161,461
 
Total 115,873 169,263
 

During the year, there were $189,921,644 in note issuances ($197,937,101 in 2006) and $247,488,547 in note encashments ($279,767,172 in 2006).

12. Employee Benefits

(a) Pension benefits: CIDA'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 the Canada/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Agency contribute to the cost of the Plan. The 2006-07 expense amounts to $16,134,095 ($16,591,246 in 2005-06), which represents approximately 2.2 times (2.6 in 2005-06) the contributions by employees.

CIDA'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: CIDA 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:


  2007 2006
  (in thousands of dollars)
Accrued benefit obligation, beginning of year 26,287 24,560
Expense for the year 8,318 5,528
Benefits paid during the year (3,421) (3,801)
Accrued benefit obligation, end of year 31,184 26,287

13. Other liabilities

Other liabilities consist of funds received from external organizations for a specified purpose to be administered by CIDA on their behalf.

In 2006-07, the main such liability administered by CIDA was a contribution received from the Government of the Netherlands, acting through the Netherlands Minister for Development Cooperation, to provide significant resources to the education sector in Nicaragua.

The following table presents details of the movement in the other liabilities balance during the year:


April 1, 2006 Receipts Disbursements March 31, 2007
(in thousands of dollars)
922 6,712 1,819 5,815

14. Contingent liabilities

Contingent liabilities for CIDA can be classified into four categories: callable share capital in certain international organizations, liability relating to the Budget Implementation Act, 2007, pending and threatened litigation cases and liability relating to the Canada Investment Fund for Africa.

CIDA detains callable share capital in certain international organizations that could require future payments to those organizations. Callable share capital is composed of resources that are not paid to the organizations but act as a guarantee to allow them to borrow on international capital markets to finance their lending program. Callable share capital, which has never been drawn on by the organizations, would only be utilized in extreme circumstances to repay unrecoverable loans, should the organization's reserves not be sufficient. As at March 31, 2007, the callable share capital is valued at $8 billion and no provision was recorded for this amount.

The Budget Implementation Act, 2007 (Bill C-52) grants CIDA authorities to pay $90 million to the World Bank for the Afghanistan Reconstruction Trust Fund in respect of development assistance for Afghanistan, and to pay $20 million to the United Nations for use in UN Mine Action Service activities in Afghanistan. Bill C-52 has not yet received Royal Assent at the House of Commons. It is expected that Bill C-52 will receive Royal Assent before the tabling of the Departmental Performance Report containing these financial statements in the fall of 2007. As a result CIDA has recorded a contingent liability of $110 million for these transfer payments as at March 31, 2007.

CIDA is a defendant in certain pending and threatened litigation cases which arose in the normal course of operations. Legal proceedings for claims totalling approximately $2 million ($7 million in 2006) were still pending at March 31, 2007. Some of these potential liabilities 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 in the financial statements.

Pursuant to Section 3 of the Canada Fund for Africa Act, CIDA signed a subscription agreement to invest in the Canada Investment Fund for Africa L.P.. As per this agreement, Canada's commitment to the Fund is subject to matching funds of other investors and shall be equal to the lesser of: (i) $100 million and (ii) the aggregated commitments of all other limited partners of the partnership. At March 31, 2006, due to the timing of other limited partners' commitments shortly after year-end, CIDA had inherited of a contingent liability amounting to $15 million. This contingent liability then became an actual liability in 2006-07.

15. Contractual obligations

The nature of CIDA's activities results in some large multi-year contracts and obligations whereby CIDA 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 of dollars)
  2008 2009 2010 2011 2012 and thereafter Total
Transfer Payments 1,412,002 749,476 404,993 142,126 115,318 2,823,915
             
Professional services 6,974 266 33 0 41 7,314
             
Operating Leases 233 41 30 37 0 341
             
Encashment of notes by International Financial Institutions 177,618 88,772 6,317 6,317 3,165 282,189
             
Total 1,596,827 838,555 411,373 148,480 118,524 3,113,759

16. Related party transactions

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

(a) Services provided without charge:

During the year, CIDA 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 CIDA's Statement of Operations as follows:


  2007 2006
  (in thousands of dollars)
Accommodation 8,183 8,083
Employer's contribution to the health and dental insurance plans 10,629 10,020
Legal services 834 477
     
Total 19,646 18,580

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 some of these services, notably the payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in CIDA's Statement of Operations.


(b) Payables and receivables outstanding at year-end with related parties:
     
  2007 2006
  (in thousands of dollars)
Accounts receivable with other government departments 3,301 1,750
Accounts payable with other government departments 9,224 8,108

17. Comparative information

CIDA modified its defined program lines in 2005-2006. As a result, comparative information for expenses and revenues is not available.

Annex 3: Response to Parliamentary Committees, Audits, and Evaluations

Response to Parliamentary Committees

Below is the list of responses to Parliamentary Committee reports that involved CIDA and that were tabled in the House of Commons for the 2006-2007 fiscal year:

  • In September 2006, the Standing Committee for Foreign Affairs and International Development tabled Report 2: Darfur (adopted by the Committee on June 21, 2006 and presented to the House on September 20, 2006)
    CIDA was consulted on the preparation of the Government Response that was presented to the House on January 17, 2007.

  • In December 2006, the Standing Committee for Foreign Affairs and International Development tabled Report 4: Canada's International Policy put to the test in Haiti (adopted by the Committee on December 12, 2006, and presented to the House on December 13, 2006)
    CIDA was consulted on the preparation of the Government Response that was presented to the House on April 16, 2007.

Response to the Auditor General including to the Commissioner of the Environment and Sustainable Development (OAG/CESD)

CIDA provided progress reports to three OAG/CESD recommendations contained in CIDA's Development Assistance and the Environment Chapter of 2004 in addition to the two recommendations contained in CIDA - Financial Compliance Audits and Managing Contracts and Contributions of 2005.

Audits and Evaluations

The following is a list of audits, evaluations and reviews that involve CIDA for the 2005–2006 fiscal year.

Audits17 :

  • Audit of the Bangladesh Country Program
  • Audit of the Iraq Country Program
  • Audit of the Senegal Country Program
  • Audit of the Canada Fund for Local Initiatives
  • Audit of Administrative Arrangements
  • Audit of the Financial Compliance Unit.

Evaluations18 :

Completed Corporate and Program-level Evaluations

  • Review of Evidence of the Development Effectiveness of CIDA's Grants and Contributions
  • Review of the Afghanistan Program
  • Evaluation of WHO's contribution to the "3X5" Initiative
  • Evaluation of the Pakistan Country Program
  • Evaluation of the NetCorps Canada International Program
  • Evaluation of Canada Corps University Partnership Program and Students for Development

Multi-donor Evaluations

  • Peer Review of the Evaluation function at UNICEF
  • Joint Evaluation of General Budget Support

Annex 4: Sustainable Development Strategy

CIDA embraces a vision of sustainable development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development challenges are unique to each country, so no single "common" approach can be followed. Throughout its projects, programs and policies, CIDA ensures that the principles of sustainable development are effectively incorporated into its development work.


Points to Address Departmental Input
1. What are the key goals, objectives, and/or long-term targets of the SDS? CIDA has established four core objectives:

  • Support equitable economic development;
  • Support social development, with particular emphasis on people living in poverty;
  • Support environment and natural resources management; and
  • Support progress in democratic governance and human rights.
2. How do your key goals, objectives, and/or long-term targets help achieve your department's strategic outcomes?
  • CIDA's operations, which integrate sustainable development, are framed by the Agency's new PAA and support CIDA's goal of "reduced poverty, promotion of human rights, and increased sustainable development".
  • Sustainable development objectives support this goal.
  • In line with the federal government's commitment to more effective use of Canadian aid, this new framework enables clearer accountability for results.
3. What were your targets for the reporting period?
  • CIDA's strategic outcomes are the long-term impacts the Agency aims to achieve in partner countries - continued support for the achievement of sustainable development results, within identified selected initiatives and/or among other relevant/similar initiatives.
4. What is your progress (this includes outcomes achieved in relation to objectives and progress on targets) to date?
  • This fourth SDS builds upon progress achieved since CIDA's third strategy: SDS 2004-2006: Enabling Change (SDS3).
  • As a learning organization, CIDA continues to benefit from its experience and incorporates into its programming the findings of audits, evaluations, and related assessments of projects, programs, sectors, and institutions. This SDS builds upon such lessons and the many changes that the Agency has made since SDS3.
  • SDS3 elaborated on CIDA's sector-based results, which showed the relationship between CIDA's mandate and the MDGs.
  • Examples of performances of SDS3 include:
    • In Senegal, support to a savings and credit network, which involves more than 150,000 members, most of whom are women, profited from loans totalling $142 million over the life of the project.
    • In fall 2004, Canada's quick response to a polio outbreak in Nigeria that threatened the entire region helped enable 1 million vaccinators in 23 countries to immunize 80 million children under the age of five, thereby containing the outbreak.
    • In Bosnia and Herzegovina, efforts have been made to introduce alternative dispute resolution methods (i.e. mediation), which are expected to help increase court efficiency and reduce case backlog.
    • CIDA support to the Ombudsman in Peru is enabling it to review and advise on an increasing number of cases of environmental conflicts between local communities, and the mining and hydrocarbon industries.
  • Throughout much of 2006, CIDA undertook consultations for the preparation of SDS4, which took effect in January 2007.
  • The Agency supports initiatives profiled by the framework of SDS4. Results will be presented accordingly in subsequent reporting periods.
5. What adjustments have you made, if any? (To better set the context for this information, discuss how lessons learned have influenced your adjustments.)
  • In terms of areas for improvement under SDS4, the SDS3 had too many individual indicators to be able to highlight and draw on specific best practices in sustainability. SDS3 could have done more to recognize the significant role of our partners in achieving planned results. Finally, other corporate tools and frameworks have superseded the role that the SDS3 served as an overarching framework for the Agency's work.
  • CIDA's SDS recognizes aid effectiveness principles by including the leadership role of developing countries themselves, mutual accountability, the need for a more effective sectoral and geographic focus, and the significance of greater donor and development policy coherence and coordination in the SDS.
  • This SDS focuses on what CIDA believes are best practices in international development at the policy, program, and investment level that are leading, or are likely to lead, to sustainable development results.
  • In the development of SDS4, CIDA took into account the need for consistency with other corporate documents as well as enough flexibility to accommodate developing countries self-identified priorities.
  • CIDA has integrated lessons of experience on aid effectiveness and successes in development in all programming channels-bilateral, multilateral, and partnership. Implementing these lessons in all countries and initiatives will facilitate greater sustainability in CIDA's work.

Annex 5: Procurement and Contracting


Points to Address Departmental Input
1. Role played by procurement and contracting in delivering programs Procurement and contracting play an important role in helping to fulfill CIDA's mandate as the lead federal government agency responsible for delivering Canada's Official Development Assistance and Official Assistance.
CIDA operates with two Parliamentary Code Votes: Vote 30 for operating funds and Vote 35 for grants and contributions. Most of CIDA's investments are disbursed through grants and contribution agreements with a wide variety of partners.
For grants and contributions, the TB's Transfer Payment Policy applies. In addition, CIDA has specific terms and conditions approved by TB. The role of the contracting function in each of the Agency's branches is to ensure compliance with these programming and contracting authorities.
A portion of the aid budget is also programmed through contracting activities, largely for services. In such cases, the Government of Canada's contracting regulations apply, and procurement staff in each branch work according to these rules and authorities when contracting services.
2. Overview of how the Agency manages its contracting function In 2006-2007, CIDA issued 986 grants and contributions worth slightly more than $2 billion. The Agency also signed 2,714 contracts and agreements worth $291 million. The contracts function is decentralized at CIDA, with procurement personnel operating in each program branch. These contracts officers are part of program/project teams. The functional lead for the Agency is the Contracting Management Division (CMD) of the Human Resources and Corporate Services Branch. The Policy Section in the Division develops common contracting tools and templates, publishes guides, etc. For competitive contracting under the contracting regulations, CMD also has a centrally run Bid Receiving Unit to post and receive tender documents. The Director General of CMD chairs the Evaluation Review Board and, along with the Director General of Finance and a representative from Legal Services, reviews all competitive tender decisions of more than $500,000.
3. Progress and new initiatives enabling effective and efficient procurement practices

During 2006-2007, CMD:

  1. Participated as the co-chair of the Joint Venture on Procurement of the Working Party on Aid Effectiveness of the OECD in the development of the Benchmarking and Assessment Tool; This Tool is now being tested in 21 pilot countries.
  2. Maintained and reviewed the content of the courses offered under the Corporate Contracting Learning Program;
  3. Implemented the work plan for the Monitoring unit; drafted the plan and framework for the contract compliance and performance monitoring function;
  4. completed, in collaboration with Legal Services, the development of intellectual property rights' clauses;
  5. Prepared the business case included in the Annual Reference Level Update to repatriate the consultant database from Public Works and Government Services Canada (PWGSC) for Low Dollar Value contracts;
  6. Worked on the repatriation of the CIDA consultant database for Low Dollar Value contracts from PWGSC;
  7. Created a Guide for the management of Low Dollar Value Contracts;
  8. Created Categories and Criteria for searches in the Consultants Database;
  9. Worked on the USA PATRIOT Act and Transborder data flows to comply with TB guidelines;
  10. Finalized a new Guide to Debriefing Bidders;
  11. Developed a Mandatory Checklist of Documents for the Evaluation Review Board;
  12. Created a list of Executing Agencies Managing CIDA Fellows;
  13. Developed a Memorandum to Executing Agencies Managing CIDA Fellows;
  14. Developed a Contracting Guide for Managers in CIDA (revised in Dec. 06 and May 07);
  15. Updated thresholds for the World Trade Organization-Agreement on Government Procurement and the North American Free Trade Agreement.

Annex 6: Service Improvement

CIDA's service standards have been in place for several years. Over the past year, CIDA has concentrated on improving services to the Canadian public in the following priority areas:

  • CIDA’s website;
  • Public Inquiries Service (via e-mail and telephone);

(1)
Service
(2)
Service Standards by Type
(3)
Performance against Service Standards
(4)
Client Satisfaction Scores
(5)
Common Measurements Tool Used (Y/N)
(6)
Responding to Results
(7)
Planning to address missing elements
2 Timeliness access and accuracy

2 for each of these standards
2 2 0 See comments below for each service Not applicable

(6) Responding to Results

CIDA’s website / Government On-Line

In May 2006, based on a consultant report and user survey, CIDA launched its new Internet website after an extensive 18 month redesign project involving all of CIDA's branches. The last phase of the project, involved the following:

  • The existing content of the newly designed website was revised or deleted.
  • New content was written, revised, translated and added to the site.
  • Extensive quality control of all content, including links, was performed.
  • Metadata was added and checked.
  • Final technical adjustments were made to the infrastructure, to the customized content management/web publishing tool and to the database.
  • The site was launched on time on May 6, 2006.

The focus during the rest of the fiscal year has been on the following:

  • Publishing branch and Agency material on the site, including adding and rearranging content on the Afghanistan subsite to better showcase the work of the Afghanistan Task Force.
  • Redesigning the front page of the site to give better emphasis to selected aspects of the Agency's work.
  • Editing CIDA's Web Publishing Standards and Guidelines to ensure that documents continue to be displayed in an easily-navigated format using standard terminology.
  • Configuring the software application WebTrends in order to gather statistics on the usage of the site.
  • Investigating the feasibility of providing more multimedia on the website.

Work was also started on analysing the work requirements of TB's directive to move towards the upgraded Common Look and Feel Standards for the Internet, Version 2.0 that must be in place on all Government of Canada websites by December 31, 2008.

New tools have been put in place to permit improved tracking and measurement of web users.

Public Inquiries Service (via e-mail and telephone)

In 2006-2007, most requests for information received by CIDA's Public Inquiries Service were made by e-mail and by telephone. However, e-mail remained the most popular means of communicating with the Service. The number of e-mail requests received annually has more than doubled in five years time, to 21,070. The Information Officers received 9,223 telephone inquiries in 2006-2007. Inquiries were also received by regular mail, facsimile, and in person, but their numbers were comparatively low.

The service standard for responding to information requests is 24 to 48 hours. This target was usually met, but the method used to statistically verify performance has not always been reliable.

More complex inquiries entail research and can take more than 48 hours to complete. In such cases, clients were informed and a mutually acceptable timeframe was negotiated. Although the Service's Information Officers answered the majority of public inquiries, a number were referred to CIDA program or policy staff. In such cases, follow up was not always possible because of limited resources.

CIDA's Public Inquiries Service is structured to enable the Agency to respond to crises. The Service's schedule is flexible and can be adapted to longer hours of operation. A contingency plan is also in place to enable CIDA's main telephone reception (also part of the Public Inquiries Service) to function off-site in the event that the CIDA headquarters building is inaccessible.

The Public Inquiries Service records all comments related to the quality of service. In 2006-07, 312 messages of praise were documented, although no formal measurement tool exists to gauge public satisfaction.