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SECTION III - SUPPLEMENTARY INFORMATION

3.1 Organizational Information

At Transport Canada headquarters, four Assistant Deputy Ministers - Policy, Programs, Corporate Services, Safety and Security, and an Associate Deputy Minister report to the Deputy Minister, in addition to Corporate Management, comprised of the Communications Group and Departmental General Counsel. Five Regional Directors General - Atlantic, Quebec, Ontario, Prairie and Northern, and Pacific - also report directly to the Deputy Minister. Each of these organizational heads is accountable for the management of his/her organization and for the delivery of results associated to the program activities as set out in the Program Activity Architecture.


Departmental Organizational Chart

 

3.2 Financial Tables

Table 1: Comparison of Planned to Actual Spending (including FTEs)


($ thousands)

Program activity

2004-05 Actual

2005-06 Actual

2006-07

Main Estimates

Planned Spending

Total Authorities

Actual

Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system

438,705

485,906

550,435

623,336

569,705

499,315

Canadian Air Transport Security Authority

501,171

428,766

381,366

466,962

446,966

441,068

Policies, programs and infrastructure in support of a market-based framework

338,214

333,826

110,159

146,965

179,695

145,797

Jacques Cartier and Champlain Bridges Inc.

32,019

31,288

30,488

42,288

32,578

32,178

Federal Bridge Corporation Limited

-

-

-

-

200

129

Marine Atlantic Inc.

72,907

70,233

80,980

80,980

84,980

82,080

VIA Rail Canada Inc.

191,301

169,001

169,001

169,001

169,001

169,001

Policies and programs in support of sustainable development

33,876

55,144

94,763

87,097

74,831

56,615

Total

1,608,192

1,574,165

1,417,192

1,616,629

1,557,956

1,426,183*

Less: Non-respendable revenue

(48,017)

(76,128)

(32,734)

(32,734)

(137,287)

(137,287)

Plus: Cost of services received without charge

54,682

59,718

-

57,499

68,531

68,531

Total Department Spending

1,614,858

1,557,755

1,384,458

1,641,394

1,489,200

1,357,427

Full Time Equivalents

4,718

4,873

4,900

4,900

4,900

4,854


Due to rounding, columns may not add to total shown.

* Excludes $2.5 million non-budgetary investment in contributed surplus of Parc Downsview Park Inc associated with a transfer of lands.

Table 2: Resources by Program Activity


Program Activityy

2006-07 Budgetary ($ thousands)

Operating 1

Capital

Grants

Contributions and Other Transfer Payments 2

Total: Gross Budgetary Expenditures

Less: Respendable Revenue

Total: Net Budgetary Expenditures

Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system

Main Estimates

493,406

32,991

430

68,005

594,833

(44,400)

550,435

Planned Spending

529,097

35,382

430

102,826

667,734

(44,400)

623,336

Total Authorities

538,723

35,274

310

55,121

629,428

(59,723)

569,705

Actual Spending

507,799

31,074

270

20,962

560,105

(60,790)

499,315

Canadian Air Transport Security Authority

Main Estimates

305,905

75,461

-

-

381,366

-

381,366

Planned Spending

347,305

119,657

-

-

466,962

-

466,962

Total Authorities3

446,966

-

-

-

446,966

-

446,966

Actual Spending3

441,068

-

-

-

441,068

-

441,068

Policies, programs and infrastructure in support of a market-based framework

Main Estimates

137,868

40,003

25,426

230,212

433,508

(323,349)

110,159

Planned Spending

153,600

46,812

39,690

230,212

470,314

(323,349)

146,965

Total Authorities

176,139

40,247

-

289,263

505,649

(325,953)

179,695

Actual Spending

174,317

37,708

-

258,629

470,654

(324,857)

145,797

Jacques Cartier and Champlain Bridges Inc.

Main Estimates

29,291

1,197

-

-

30,488

-

30,488

Planned Spending

29,291

12,997

-

-

42,288

-

42,288

Total Authorities3

32,578

-

-

-

32,578

-

32,578

Actual Spending3

32,178

-

-

-

32,178

-

32,178

Federal Bridge Corporation Limited

Main Estimates

-

-

-

-

-

-

-

Planned Spending

-

-

-

-

-

-

-

Total Authorities3

200

-

-

-

200

-

200

Actual Spending3

129

-

-

-

129

-

129


Table 2: Resources by Program Activity (continued)


Program Activity

2006-07 Budgetary ($ thousands)

Operating 1

Capital

Grants

Contributions and Other Transfer Payments 2

Total: Gross Budgetary Expenditures

Less: Respendable Revenue

Total: Net Budgetary Expenditures

Marine Atlantic Inc.

Main Estimates

79,847

1,133

-

-

80,980

-

80,980

Planned Spending

79,847

1,133

-

-

80,980

-

80,980

Total Authorities3

84,980

-

-

-

84,980

-

84,980

Actual Spending3

82,080

-

-

-

82,080

-

82,080

VIA Rail Canada Inc.

Main Estimates

169,001

-

-

-

169,001

-

169,001

Planned Spending

169,001

-

-

-

169,001

-

169,001

Total Authorities3

169,001

-

-

-

169,001

-

169,001

Actual Spending3

169,001

-

-

-

169,001

-

169,001

Policies and programs in support of sustainable development

Main Estimates

61,990

3,461

-

29,383

94,834

(71)

94,763

Planned Spending

69,283

3,461

-

14,424

87,168

(71)

87,097

Total Authorities

62,390

3,604

-

8,906

74,900

(69)

74,831

Actual Spending

46,548

2,473

-

7,691

56,712

(97)

56,615

Total

Main Estimates

1,277,308

154,246

25,856

327,600

1,785,010

(367,818)

1,417,192

Planned Spending

1,377,424

219,442

40,120

347,462

1,984,447

(367,818)

1,616,629

Total Authorities

1,501,977

79,125

310

353,290

1,943,702

(385,745)

1,557,956

Actual Spending

1,453,120

71,255

270

287,282

1,811,927

(385,745)

1,426,183


Due to rounding, columns may not add to total shown.

Notes:

  1. Operating includes statutory payments for employee benefit plans, Minister's allowances, previous years' refunds, payments in respect of the St. Lawrence Seaway Agreement, and proceeds from the disposal of surplus Crown assets.
  2. Contributions and Other Transfer Payments include Statutory Payments for Victoria Bridge (Montreal) and the Northumberland Strait Crossing subsidy.
  3. Total Authorities and Actual Spending under each Crown corporation:  Represents the payment by Transport Canada of the money appropriated to the Crown corporation.  It does not differentiate between the operating and capital expenditures made by the Crown corporation.

Table 3: Voted and Statutory Items


Vote or Statutory Itemm

Truncated Vote or Statutory Wording

2006-07 ($ thousands)

Main Estimates

Planned Spending

Total Authorities

Actual

1

Operating expenditures

234,692

293,408

301,080

253,862

5

Capital expenditures

76,455

85,655

79,125

71,255

10

Grants and Contributions

296,228

330,354

297,173

231,125

15

Payments to Jacques Cartier and Champlain Bridges Inc.

30,488

42,288

32,578

32,178

20

Payments to Marine Atlantic Inc.

80,980

80,980

84,980

82,080

25

Payments to VIA Rail Inc.

169,001

169,001

169,001

169,001

30

Payments to the Canadian Air Transport Security Authority

381,366

466,962

446,966

441,068

33a

Payments to the Federal Bridge Corporation

-

-

200

129

(S)

Minister of Transport Canada - Salary and motor car allowance

73

73

73

73

(S)

Contributions to employee benefit plans

66,781

66,781

64,094

64,094

(S)

Payments to Canadian National Railway Company in respect of the termination of the collection of tolls on the Victoria Bridge, Montreal and for the rehabilitation work on the roadway portion of the Bridge

3,300

3,300

2,163

2,163

(S)

Payments in respect of the St. Lawrence Seaway agreements

23,900

23,900

23,927

23,927

(S)

Northumberland Strait Crossing subsidy payment

53,928

53,928

54,265

54,265

(S)

Spending of proceeds from the disposal of surplus Crown assets

-

-

2,332

963

(S)

Refunds of amounts credited to revenues in previous years

-

-

-

-

 

Total

1,417,192

1,616,629

1,557,956

1,426,183


Due to rounding, columns may not add to total shown.

(S): Statutory

Table 4: Services Received Without Charge


 

2006-077
($ thousands)

Accommodation provided by Public Works and Government Services Canada (PWGSC)

25,560

Contributions covering employer's share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat (excluding revolving funds). Employer's contribution to employees' insured benefits plans and expenditures paid by TBS.

30,631

Worker's compensation coverage provided by Human Resources and Social Development Canada

3,802

Salary and associated expenditures of legal services provided by Justice Canada

8,538

Total Services Received Without Charge

68,531


Due to rounding, columns may not add to total shown.

Table 5: Sources of Respendable and Non-Respendable Revenue


($ thousands))

Respendable Revenue 1

Actual 2004-05

Actual 2005-06

2006-07

Main Estimates

Planned Revenue

Total Authorities

Actual

Policies, rulemaking, monitoring and outreach in support of a safe and secure transportation system

Canadian aviation regulation user fees

7,862

8,291

8,648

8,648

8,648

8,090

Aircraft maintenance and flying services

30,710

29,700

25,646

25,646

34,369

34,369

Marine safety regulation user fees

8,282

8,313

7,544

7,544

7,544

8,170

Revenues from the Registrar of Imported Vehicles Program

1,962

2,423

600

600

4,600

4,600

Inspections and certifications

1,529

2,119

292

292

1,792

1,751

Lease payments from the Motor Vehicle Test Center

354

290

155

155

155

257

Rentals and concessions

761

840

598

598

598

981

Sales and training

842

1,071

812

812

812

823

Research and development

448

-

-

-

1,100

1,117

Miscellaneous

225

698

106

106

105

632

Sub-total

52,975

53,746

44,400

44,400

59,723

60,790

Policies, programs and infrastructure in support of a market-based framework

Air services forecasts revenues

253

235

160

160

160

221

Public port revenues from user fees and wharf permits

10,448

9,032

8,577

8,577

8,577

8,553

Airport revenues from user fees and service contracts

5,320

5,038

4,690

4,690

4,690

4,991

Airports Authorities - lease and chattel payments

241,862

288,320

299,894

299,894

302,498

302,513

Research and development

3,566

2,550

1,744

1,744

1,744

1,406

Rentals and concessions

8,341

8,124

7,574

7,574

7,574

6,895

Sales and training

191

112

109

109

109

129

Inspection and certification

-

-

-

-

-

3

Miscellaneous

558

263

602

602

601

146

Sub-total

270,539

313,675

323,349

323,349

325,953

324,857

Policies and programs in support of sustainable transportation

Rentals and concessions

37

39

62

62

62

78

Sales and training

-

-

-

-

-

6

Miscellaneous

45

8

7

7

7

13

Sub-total

82

47

69

69

69

97

Total Respendable Revenue

323,596

367,468

367,818

367,818

385,745

385,745


Table 5: Sources of Respendable and Non-Respendable Revenue (continued)


($ thousands)

Non-Respendable Revenue2

Actual 2004-05

Actual 2005-06

2006-07

Main Estimates

Planned Revenue

Total Authorities

Actual

Non-navigational assets - St. Lawrence Seaway 3

8,486

10,385

5,200

5,200

7,461

7,461

Canada Port Authority stipends

10,844

11,698

12,534

12,534

12,033

12,033

Royalties from research and development

52

61

-

-

23

23

Hopper cars (leases, damage settlements and demurrage charges)

17,386

17,701

15,000

15,000

12,716

12,716

Return on investments- Crown Corporations4

-

-

-

-

87,865

87,865

Return on investments - Others 5

205

5,882

-

-

70

70

Refunds of previous year's expenditures

1,851

16,225

-

-

426

426

Adjustments to previous year's payables

4,862

6,794

-

-

7,234

7,234

Permits for transportation of explosives

130

37

-

-

33

33

Fines & penalties

1,329

893

-

-

898

898

Proceeds from sales

1,243

-

-

-

-

-

Proceeds from disposal of surplus Crown assets

1,170

963

-

-

1,369

1,369

Proceeds from sale of real property

-

5,059

-

-

6,614

6,614

Interest revenue from divested airports

-

20

-

-

-

-

Miscellaneous

458

410

-

-

545

545

Total Non-Respendable Revenue

48,017

76,128

32,734

32,734

137,287

137,287


Due to rounding, columns may not add to total shown.

Notes:

  1. For consistency with amounts published in the Public Accounts (Details of Respendable Amounts), the respendable revenue categories include a share of departmental administration's respendable revenue.
  2. Respendable revenues are on a modified cash basis and do not necessarily correspond to Public Accounts Form E which is prepared on an accrual basis.
  3. Revenues from the St-Lawrence Seaway Management Corporation for managing Real Property Operations.
  4. Dividends received from Canada Post Corp. $79.6M, Canada Lands Co. $7.2 million and Royal Canadian Mint $1.0M.
  5. Includes Andrew Ferry seaway and remittances from Jacques Cartier & Champlain Bridges Inc.

Table 6: Resource Requirements by Branch/Sector level


($ thousands))

Organization 1

Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system

Policies, Programs and Infrastructure in support of a market-based framework

Policies and Programs in support of sustainable development

Crown corporations2

Total

Assistant Deputy Minister, Safety and Security

Planned Spending

399,024

-

-

-

399,024

Actual Spending

281,104

-

-

-

281,104

Assistant Deputy Minister, Policy

Planned Spending

-

176,278

-

-

176,278

Actual Spending

-

154,050

-

-

154,050

Assistant Deputy Minister, Programs 3

Planned Spending

-

(102,287)

71,810

-

(30,477)

Actual Spending

2,215

(131,418)

25,231

-

(103,973)

Regional Director General, Atlantic

Planned Spending

39,199

8,349

2,913

-

50,461

Actual Spending

36,876

12,209

5,339

-

54,423

Regional Director General, Quebec

Planned Spending

45,171

35,902

2,841

-

83,914

Actual Spending

45,332

54,195

7,824

-

107,351

Regional Director General, Ontario

Planned Spending

49,666

12,945

2,465

-

65,076

Actual Spending

45,238

17,227

4,772

-

67,237

Regional Director General, Prairie and Northern Region

Planned Spending

48,882

9,909

3,580

-

62,371

Actual Spending

45,729

29,281

5,985

-

80,995

Regional Director General, Pacific

Planned Spending

41,394

5,869

3,488

-

50,751

Actual Spending

42,823

10,253

7,464

-

60,540

Total

Planned Spending

623,336

146,965

87,097

759,231

1,616,629

Actual Spending

499,315

145,797

56,615

724,456

1,426,183


Due to rounding, columns may not add to totals shown.

Notes:

  1. The expenditures by organization presented under each program activity include a portion of departmental administration expenditures.
  2. The Crown corporations presented in Transport Canada's Program Activity Architecture are the Canadian Air Transport Security Authority, Jacques Cartier and Champlain Bridges Inc., Marine Atlantic Inc., the Federal Bridge Corporation and VIA Rail Canada Inc. See Table 1 for their respective financial resources.
  3. The sector "Assistant Deputy Minister Programs" includes all the Vote Netted Revenue recorded under the Program Activity "Policies, Programs and Infrastructure in support of a market based framework". The planned Vote Netted Revenue is higher than expenses for that sector therefore the amount is presented in brackets.

Table 7-A: 2006-07 User Fee Reporting: User Fees Act


 

($ thousands))

A. User Fee

Fee Type1

Fee-Setting
Authority

Date Last Modified B

2006-07

Planning Years

Forecast Revenue3 ($000)

Actual Revenue3 ($000)

Full Cost2 ($000)

Performance Standard4

Performance Results4

Fiscal Year

Forecast Revenue3 ($000)

Estimated Full Cost2 ($000)

Aviation Safety - Regulatory Fees

(Note 5)

R

Aeronautics Act
http://laws.justice.gc.ca/
en/A-2/index.html

Canadian Aviation Regulations (CARs) fees located at:
http://www.tc.gc.ca/
civilaviation/regserv/
affairs/cars/menu.htm

July 15, 2000

Other amendments (regulations or charges reductions) beyond July 15, 2000 did not trigger the User Fee Act.

8,647

8,090

respendable

254,188

http://www.tc.gc.ca/
CivilAviation/
servicestandards.htm

General Aviation (GA) has recently improved its website in order to record and display levels of service for Aircraft Registration activities (aircraft registration, leasing and deletion). This improvement allows clients to monitor the completion of that activity over the Internet and shows if the service was completed on time. This pilot project will be used for other activities.

The GA website link on Aircraft Registration and Leasing Service Levels is provided for reference http://www.tc.gc.ca/
aviation/
activepages/
ccarcs/aspscripts/en/
levelsearch.asp

FY 07-08

FY 08-09

FY 09-10

8,375


8,328


8,332

258,825


244,741


254,520

Marine Safety - Fees for inspections, surveys, services, etc. R Various regulations under the Canada Shipping Act (http://www.laws.justice.gc.ca/en/S-9/index.html) incl. the Board of Steamship Inspection Scale of Fees; Ships Registry and Licensing Fees Tariff; http://www.tc.gc.ca/
acts-regulations/
general/c/csa/
menu.htm

6 June, 1995

Subsequent amendments to Regulations were not fee related.

7,322

7,917

respendable

88,243 http://www.tc.gc.ca/
marinesafety/
service-standards/menu.htm
Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

FY 07-08

FY 08-09

FY 09-10

7,412


7,382


7,382

81,230


84,291


84,679

Marine Safety - Office of Boating Safety - Construction Standard Compliance Labels R

Canada Shipping Act /Small Vessel Regulations / TP 1332 incorporated by reference

http://www.tc.gc.ca/acts-regulations/GENERAL/C/
csa/regulations/070/csa076/
csa76.html

and

TP 1332:

http://www.tc.gc.ca/
MarineSafety/tp/
TP1332/menu.htm

1995

Subsequent amendments to Small Vessel Regulations were not fee related.

222

209

respendable

 

682 http://www.tc.gc.ca/
marinesafety/
service-standards/
fees.htm
#OBS_Compliance_Labels
Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

FY 07-08

FY 08-09

FY 09-10

210


210


210

 

753


603


612

Marine Safety - Ship Radio Inspection Program

(Note 6)

 

R

Canada Shipping Act /Ship Radio Inspection Fees Regulations

http://www.tc.gc.ca/acts-regulations/GENERAL/
c/csa/regulations/060/
csa062/csa62.html

 

1978 80

48

respendable

1,017

Department of Fisheries and Oceans (DFO) full cost share included above:

311

http://www.tc.gc.ca/
marinesafety/service-standards/menu.htm
Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

FY 07-08

FY 08-09

FY 09-10

 

48


48


48

 

951


951


951

Department of Fisheries and Oceans (DFO) full cost share included above:

310

 

Airports - Air Services Charges Regulations (ASCR) fees: General Terminal Fees, Landing Fees, Aircraft Parking Charges, Emergency response services charges.

(Note 7)

 

O Section 4.4 (2) of the Aeronautics Act (http://laws.justice.gc.ca/en/
A-2/index.html
), and Section 2 of the Ministerial Regulations Authorization Order - Air Services Charges Regulations http://www.tc.gc.ca/acts-regulations/General/A/aa/
regulations/120/aa129a/

aa129a.html
Aug. 31, 2003 4,509

4,768

respendable

 

12,208 http://www.tc.gc.ca/
programs/airports/
standards.htm
http://www.tc.gc.ca/
programs/airports/
standards.htm

FY 07-08

FY 08-09

FY 09-10

4,937


4,952


4,952

 

11,227


11,227


11,226

 

Airports - Annual Registration of Mobile Equipment used at Airports

(Note 7)

 

O Government Property Traffic Act and Airport Traffic Regulations - Part III Section 57 to 60
http://www.tc.gc.ca/acts-regulations/GENERAL/
d/dta/regulations/001/
dta002/dta002.html
Feb. 24, 2004 0.2

1.2

respendable

 

4.5 http://www.tc.gc.ca/
programs/airports/
standards.htm
http://www.tc.gc.ca/
programs/airports/
standards.htm

FY 07-08

FY 08-09

FY 09-10

1


1


1

 

4


4


4

Airports - Vehicle Parking Charges

(Note 7)

O

Section 4.4(2) of the Aeronautics Act
(http://laws.justice.gc.ca/
en/A-2/index.html)

and Section 2 of the Ministerial Regulations Authorization Order, Airport Vehicle Parking Charges Regulations

http://www.tc.gc.ca/acts-regulations/GENERAL/
A/aa/regulations/130/
aa131/aa131.html

Nov. 19,1998

173

210

respendable

 

1,252 http://www.tc.gc.ca/
programs/airports/
standards.htm
http://www.tc.gc.ca/
programs/airports/
standards.htm

FY 07-08

FY 08-09

FY 09-10

 

209


209


209

1,152


1,152


1,152

Ports - Public Port Revenues: Utility Charges, Wharfage, Berthage, Storage and Harbour Dues O

Canada Marine Act
http://laws.justice.gc.ca/
en/C-6.7/index.html

Fees at:
http://www.tc.gc.ca/
programs/ports/
menupublicportfees.htm

 

Jan 1, 2004 8,525

8,499

respendable

 

39,107 http://www.tc.gc.ca/
programs/ports/
standards.htm
http://www.tc.gc.ca/
programs/ports/
standards.htm

FY 07-08

FY 08-09

FY 09-10

8,358


8,374


8,374

27,821


27,786


27,786

Permits for Vehicles used for the Transportation of Explosives

(Note 8)

 

R

Explosives Act Section 7:
http://laws.justice.gc.ca/
en/showdoc/cs/e-17/bo-ga:s_7//en#anchorbo-ga:s_7

and Explosives Regulations Part III Section 31. (1) i

http://laws.justice.gc.ca/
en/showdoc/cr/C.R.C.-c.599/bo-ga:1_III//en#anchorbo-ga:1_III

1993 37

34

non
respendable

38

95 per cent of the time, will deliver:

a) a decision accepting or rejecting a complete new factory application within 60 days after receipt, and

b) a decision accepting or rejecting any other type of complete application within 30 days after receipt.

 

service standard met 100 per cent of time


service standard met 100 per cent of time

 

FY 07-08

FY 08-09

FY 09-10

 

30


0


0

 

31


0


0

Access to Information Requests - Fees

(Note 9)

 

O Access to Information Act and Regulations :  http://laws.justice.gc.ca/
en/A-1/index.html
1992 9

6

non respendable (Consoli-dated Revenue Fund)

1,207 Service Standards are included in the Access to information Act, Section 7: http://laws.justice.gc.ca/
en/showdoc/cs/A-1/bo-ga:s_4-gb:s_6//en#anchorbo-ga:s_4-gb:s_6
Statutory deadlines have been met for 82 per cent of requests. 100 per cent of extension notices were sent within 30 days following the receipt of the request. 100 per cent of transfer notices were sent within 15 days.

FY 07-08

FY 08-09

FY 09-10

 

6


6


6

 

1,199


1,199


1,199

 

Total Regulatory Services (R)     Sub-total (R) 16,308.0 16,298.0 344,168.0  

Sub-total R:

Sub-total R:

Sub-total R:

FY 07-08

FY 08-09

FY 09-10

16,075.0


15,968.0


15,972.0

341,790.0


330,586.0


340,762.0

Total Other Goods and Services (O)     Sub-total (O) 13,216.2 13,484.2 53,778.5  

Sub-total O:

Sub-total O:

Sub-total O:

FY 07-08

FY 08-09

FY 09-10

13,511.0


13,542.0


13,542.0

41,403.0


41,368.0


41,367.0

Report Total     Total 29,524.2 29,782.2 397,946.5   Total

FY 07-08

FY 08-09

FY 09-10

29,586.0


29,510.0


29,514.0

383,193.0


371,954.0


382,129.0

B. Date Last Modified: Subsequent amendments to regulations were not fee related and did not trigger the User Fee Act

C. Other Information 10:

In addition to complaint mechanism included in various Acts and Regulations (eg Access to Information and Privacy requests http://laws.justice.gc.ca/en/showdoc/cs/A-1/bo-ga:s_30//en#anchorbo-ga:s_30), several complaint mechanisms have been developed and implemented for service standards related to user fees at public ports: http://www.tc.gc.ca/programs/ports/standards.htm and Transport Canada operated airports http://www.tc.gc.ca/programs/airports/standards.htm for the Canadian Aviation Regulations (Civil Aviation Issues Reporting System [CAIRS]) http://tcinfo/CivilAviation/ManagementServices/QA/cairs.htm. A complaint mechanism policy "Handling of Complaints Related to Marine Safety User Fees and Applicable Service Standards" is now available on the web at:  http://www.tc.gc.ca/marinesafety/service-standards/handling-complaints.htm


Table 7-A: 2006-07 User Fee Reporting: User Fees Act (continued)

Due to rounding, columns may not add to totals shown.

The Internet links in this report may change following publication, since the various websites are updated regularly.

Notes:

1.  The department collects two types of fees: Regulatory Service (R) and Other Goods and Services (O).

2.  Full Costs (Actual and Estimates) are reported on an accrual basis. Represent the full cost of providing service, good, facility or privilege. Full cost is not necessarily fully attributed to fee-paying clients and a lower cost recovery level may be required based on stakeholders paying capability, etc.

Consistent with instructions for the DPR, Full Costs are calculated according to costing principles identified in the Treasury Board Secretariat's Guide to the Costing of Outputs Full Costs are defined as (Source: Treasury Board Secretariat's Guide to the Costing of Outputs in the Government of Canada-1994):

"The sum of all costs, direct and indirect, incurred by the government in the supply of a good, service, property, or right or privilege, including: services provided without charge by other departments (e.g., accommodation, employer contributions to insurance plans); costs financed by separate authorities (e.g., some employee benefits) ; the financing costs of inventories; and annualized capital costs, including financing. However, since the primary focus of this guide is full costing for cost recovery, transfer payments have not been included".

3. The Forecast Revenues identified for the 2007-08, 2008-09 and 2009-10 fiscal years were those reported in the Report on Plans and Priorities 2007-08 and are reported on a cash basis as for Actual.

4. According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

  • - Performance standard, if provided, may not have received Parliamentary review;
  • - Performance standard, if provided, may not respect all establishment requirements under the User Fees Act (UFA) (e.g. international comparison; independent complaint address); and
  • - Performance result, if provided, is not legally subject to UFA section 5.1 regarding fee reductions for failed performance.

5. Aviation Safety - Regulatory fees: Revision to standards, measurement is ongoing with the National Working Group on Services Standards. Pilot Project is currently in place in the Ontario Region to introduce ccmMercury as a possible tool to electronically manage, track and improve Civil Aviation's administrative and program related work processes. This project includes the development of methods and mechanisms to measure and report on service level performance including in those areas where regulatory fees are charged. Prototype testing is in place since April 2007 and will be finalized in Fall 2007. Recommendations will be made to Transport Canada Civil Aviation (TCCA) Authority for regional and national deployment.

6. Marine Safety - Ship Radio Inspection Program - Represents the full cost of providing inspection services. However, the User Fee is to recover the cost of overtime and travel only - 100 per cent cost recovery.

7. Airports User Fees - Exclude revenues and costs from sites divested in 2006-07 or earlier.

8. Permits for vehicles used for the Transportation of Explosives: Natural Resources Canada has entered into an agreement with Transport Canada for the issuance of these permits. Amendments to the Transportation of Dangerous Goods Regulations, which will abolish this permit program, are forecast to come into effect in early 2008.

9. Access to Information Requests - Fees: The Access to Information Act has provisions to waive fees.

10. Main achievement in improving service - In 2006 and 2007, Transport Canada in its commitment to provide quality services and client satisfaction, has also implemented dispute mechanisms that apply to services, use of facilities and provision of goods for which user fees are charged. This initiative ensures that stakeholders' concerns and complaints are handled immediately and redress mechanisms undertaken as appropriate. Internet web site links to various dispute mechanisms are identified under "Other Information" in the two Tables for User fee (Table 7-A) and External Fee reporting (Table 7-B).

Table 7-B: 2006-07 External Fee Reporting: Policy on Service Standards for External Fees


A. External Fee

Service Standard1

Performance Result1

Stakeholder Consultation

Aviation Safety - Regulatory Fees2

http://www.tc.gc.ca/
CivilAviation/servicestandards.htm

General Aviation has recently improved its website in order to record and display levels of service for Aircraft Registration activities (aircraft registration, leasing and deletion). This improvement allows clients to monitor the completion of that activity over the Internet and shows if the service was completed on time. This pilot project will be used for other activities.

The GA website link on Aircraft Registration and Leasing Service Levels is provided for reference
http://www.tc.gc.ca/aviation/activepages/ccarcs/aspscripts/en/levelsearch.asp

Consultations with stakeholders were last undertaken in 1997 for all fees and in 2000 and 2004 for specific fees. Fees published in Canada Gazette, in Dec. 1997, June 2000, and Sept. 2004 respectively. The June 2000 and September 2004 Amendments did not trigger the User Fee Act. The Canadian Aviation Regulation Advisory Committee (CARAC) was consulted in December 2006 to seek agreement on the consultation methodology in the future which was agreed to. Stakeholders' feedback now sought through the Civil Aviation Issues Reporting System (CAIRS).

Marine Safety - Fees for inspections, surveys, services, etc.

http://www.tc.gc.ca/
marinesafety/
service-standards/menu.htm

Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

Consultation process completed in May 2006; comments received were favourable; no written comments received.

Marine Safety - Office of Boating Safety - Construction Standard Compliance Labels

http://www.tc.gc.ca/
marinesafety/
service-standards/fees.htm#

OBS_Compliance_Labels

Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

Consultation process completed in May 2006; comments received were favourable; no written comments received.

Marine Safety - Ship Radio Inspection program

http://www.tc.gc.ca/
marinesafety/
service-standards/menu.htm

Progress is being made and some performance results based on temporary manual tracking will likely be available for 2007-08 DPR.

Consultation process completed in May 2006; Comments received were favourable; no written comments received.

Airports - Air Services Charges Regulations (ASCR) fees: General Terminal Fees, Landing Fees, Aircraft Parking Charges, Emergency response services charges.

http://www.tc.gc.ca/
programs/
airports/standards.htm

http://www.tc.gc.ca/
programs/
airports/standards.htm

Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.


 

Table 7-B: 2006-07 External Fee Reporting: Policy on Service Standards for External Fees (continued…)


A. External Fee

Service Standard1

Performance Result1

Stakeholder Consultation

Airports - Annual Registration of Mobile Equipment used at Airports

http://www.tc.gc.ca/
programs/airports/standards.htm

http://www.tc.gc.ca/
programs/airports/standards.htm

Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.

Airports - Vehicle Parking Charges

http://www.tc.gc.ca/
programs/airports/standards.htm

http://www.tc.gc.ca/
programs/airports/standards.htm

Stakeholder feedback was managed through existing channels at the various sites during Jan/Feb 2006. Stakeholder relationships are important and valued. Stakeholders were also consulted through Transport Canada websites. There are no outstanding issues for stakeholders.

Ports - Public Port Revenues: Utility Charges, Wharfage, Berthage, Storage and Harbour Dues

http://www.tc.gc.ca/
/programs/ports/standards.htm

http://www.tc.gc.ca/
/programs/ports/standards.htm

Letters to the industry were mailed out on January 27, 2006 with a 30 day comment periods until February 28, 2006.

Stakeholder feedback was managed through existing channels. Stakeholder relationships are important and valued. There are no outstanding issues for stakeholders

Permits for Vehicles used for the Transportation of Explosives3

95 per cent of the time, will deliver:

a) a decision accepting or rejecting a complete new factory application within 60 days after receipt, and

b) a decision accepting or rejecting any other type of complete application within 30 days after receipt.

 

service standard met 100 per cent of time

service standard met 100 per cent of time

Consultations with stakeholders were successfully undertaken by Natural Resources Canada (NRCan) in 1993

Access to Information Requests - Fees4

Service standards are in the Access to Information Act, Section 7: http://www.laws.justice.gc.ca/
en/showdoc/cs/A-1/bo-ga:s_4-gb:s_6//en#anchorbo-ga:s_4-gb:s_6

Statutory deadlines have been met for 82 per cent of requests. 100 per cent of extension notices were sent within 30 days following the receipt of the request. 100 per cent of transfer notices were sent within 15 days.

The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.

B. Other Information5:

In addition to complaint mechanism included in various Acts and Regulations (eg Access to Information and Privacy requests http://www.laws.justice.gc.ca/en/showdoc/cs/A-1/bo-ga:s_30//en#anchorbo-ga:s_30), several complaint mechanisms have been developed and implemented for service standards related to user fees at public ports http://www.tc.gc.ca/Programs/Ports/standards.htm and Transport Canada operated airports http://www.tc.gc.ca/programs/airports/standards.htm, for the Canadian Aviation Regulations (Civil Aviation Issues Reporting System (CAIRS) http://tcinfo/CivilAviation/ManagementServices/QA/cairs.htm. A complaint mechanism policy "Handling of Complaints Related to Marine Safety user Fees and Applicable Service Standards" is now available on the web at: http://www.tc.gc.ca/marinesafety/service-standards/handling-complaints.htm


The Internet links in this report may change following publication, since the various websites are updated regularly.

Notes:

1. As established pursuant to the Policy on Service Standards for External Fees:

  • - service standards may not have received parliamentary review; and
  • - service standards may not respect all performance standard establishment requirements under the User Fees Act (UFA) (e.g. international comparison; independent complaint address).
  • - Performance results are not legally subject to section 5.1 of the UFA regarding fee reductions for unachieved performance.

2. Aviation Safety - Regulatory Fees: Revision to standards, performance measurement is ongoing with the National Working Group on Services Standards.

A Pilot Project is currently in place in the Ontario Region to introduce ccmMercury as a possible tool to electronically manage, track and improve Civil Aviation's administrative and program related work processes. This project includes the development of methods and mechanisms to measure and report on service level performance including in those areas where regulatory fees are charged. Prototype testing is in place since April 2007 and will be finalized in Fall 2007. Recommendations will be made to Transport Canada Civil Aviation (TCCA) Authority for regional and national deployment.

3. Permits for vehicles used for the Transportation of Explosives: Natural Resources Canada has entered into an agreement with Transport Canada for the issuance of these permits. Amendments to the Transportation of Dangerous Goods Regulations, which will abolish this permit program, are forecast to come into effect in early 2008.

4. Access to Information Requests - Fees: The Access to Information Act has provisions to waive fees.

5. Main achievement in improving service - In 2006 and 2007, Transport Canada in its commitment to provide quality services and client satisfaction, has also implemented dispute mechanisms that apply to services, use of facilities and provision of goods for which user fees are charged. This initiative ensures that stakeholders' concerns & complaints are handled immediately and redress mechanisms undertaken as appropriate. Internet web site links to various dispute mechanisms are identified under "Other Information" in the two Tables for User fee (Table 7-A) and External Fee reporting (Table 7-B).

Table 8: Progress Against the Department's Regulatory Plan

Supplementary information on the Progress Against the Department's Regulatory Plan can be found at: http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 9: Details on Transfer Payments Programs (TPPs)

In 2006-07, Transport Canada administered the following transfer payment programs (TPP) in excess of $5 million:

1. Grant to Province of British Columbia in respect of the provision of ferry and coastal freight and passenger services

2. Payments in support of crossing improvements approved under the Railway Safety Act

3. Marine Security Contribution Program

4. Contribution for ferry and coastal passenger and freight services

5. Strategic Highway Infrastructure Program:

  • Highway component
  • Border Crossing Transportation Initiative
  • Transportation Planning and Modal Integration initiative
  • Intelligent Transportation System Component

6. Outaouais Road Development Agreement

7. Contribution in support of the divestiture of the non-National Airport System airports

8. Airports Capital Assistance Program

9. Contribution Program for operating, capital and start-up funding requirement for Regional and Remote Passenger Rail Services

10. Northumberland Strait Crossing subsidy payment under the Northumberland Strait Crossing Act (Statutory)

11. Urban Transportation Showcase Program

12. Climate Change: Emission Reduction Package - non-roads freight initiatives

13. Payment to the Canadian Wheat Board for the acquisition and leasing of hopper cars of the transportation of grain in Western Canada

14. Port Divestiture Fund

Supplementary information on transfer payment programs can be found at: http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 10:  Horizontal Initiatives

In 2006-07, Transport Canada was involved in the following horizontal initiatives as either the lead or as a partner:

1. Asia-Pacific Gateway and Corridor Initiative (lead)

2. Marine Security (lead)

3. Canada Strategic Infrastructure Fund (partner)

4. Border Infrastructure Fund (partner)

5. Mackenzie Gas Project and induced oil and gas exploration and development activities in the Northwest Territories (partner)

Note:

The Asia-Pacific Gateway and Corridor Initiative was not listed in the Report on Plans and Priorities 2006-07 as a horizontal initiative. Based on criteria identified in the Guide to the Preparation of Part III of the 2006-07 Estimates from the Treasury Board Secretariat, it was determined that inclusion in the 2006-07 Departmental Performance Report is appropriate.

Supplementary information on horizontal initiatives can be found at http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp.

Table 11:  Financial Statements of Transport Canada (Unaudited)

Financial Statements of

 

Transport Canada
(Unaudited)

 

For the year ended March 31, 2007

 

TRANSPORT CANADA

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 departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

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

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

The financial statements of the department have not been audited.

 

Louis Ranger's (Deputy Minister of Transport Canada) signature Andr Morency (Assistant Deputy Minister, Corporate Services, Transport Canada) signature

 


Louis Ranger,
Deputy Minister
Ottawa, Canada


August 10th, 2007

Andr Morency,
Senior Financial Officer
Ottawa, Canada


August 10th, 2007


 

Transport Canada

Statement of Operations
(Unaudited)

For the Year Ended March 31



 

2007

2006

(restated)

 

($ thousands)


Expenses (Note 6):

Infrastructure

$ 649,489

$ 867,872

Safe and secure transportation

621,649

575,412

Sustainable development

99,983

41,808

Ship-Source Oil Pollution Fund and other programs (Note 17)

1,152

638


Total expenses

1,372,273

1,485,730

Revenues (Note 7):

Infrastructure

352,726

368,956

Safe and secure transportation

66,327

55,144

Sustainable development

744

68

Ship-Source Oil Pollution Fund and other programs (Note 17)

14,108

12,360


Total revenues

433,905

436,528


Net cost of operations

$ 938,368

$ 1,049,202



The accompanying notes form an integral part of these financial statements

 




 

 

2007

2006

(restated)

 

($ thousands)


 

Assets:

Financial assets:

Accounts receivable and advances (Note 8)

$ 33,683

$ 34,196

Loans receivable (Note 9)

11,316

10,771

Rent receivable (Note 10)

64,073

70,928

Investments (Note 11)

52,792

10,300


 

Total financial assets

161,864

126,195

 

Non-Financial assets:

Prepaid expenses

1,419

1,684

Inventory

53,854

56,945

Tangible capital assets (Note 12)

3,063,410

3,234,944


 

Total non-financial assets

3,118,683

3,293,573


 

Total

$ 3,280,547

$ 3,419,768


 

 

Liabilities and Equity of Canada

Liabilities:

Accounts payable and accrued liabilities (Note 13)

$ 691,222

$ 689,805

Vacation pay and compensatory leave

29,372

27,596

Employee severance benefits (Note 14)

79,432

73,716

Deferred revenue

3,664

3,449

Lease obligations for tangible capital assets (Note 15)

668,565

682,660

Environmental liabilities (Note 16)

186,815

149,670


 

Total liabilities

1,659,070

1,626,896

 

Equity of Canada (Note 17)

1,621,477

1,792,872

 


 

Total

 

$ 3,280,547

$ 3,419,768




Contingent liabilities (Note 16)

Contractual obligations (Note 18)

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

 



 

2007

2006

(restated)

 

($ thousands)


Equity of Canada, beginning of year

$ 1,792,872

$ 2,245,638

Net cost of operations

(938,368)

(1,049,202)

Current year appropriations used (Note 5a)

701,655

874,877

Revenues not available for spending

(66,369)

(58,007)

Refund of previous years' expenses

(425)

(8,766)

Change in net position of the Consolidated Revenue Fund

(Note 5c)

63,581

(271,386)

Services provided without charge by other departments (Note 19)

68,531

59,718


Equity of Canada, end of year

$ 1,621,477

$ 1,792,872



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

 



 

2007

2006

(restated)

 

($ thousands)


Operating activities:

Net cost of operations

$ 938,368

$ 1,049,202

Adjustment for items not affecting cash:

Non-cash items:

Amortization of tangible capital assets

(182,113)

(180,644)

Services provided without charge by other departments

(Note 19)

(68,531)

(59,718)

Loss on disposals and write-downs of tangible capital assets

(72,023)

(53,072)

Allowance for environmental and contingent liabilities

49,326

20,326

Provision for valuation of loans and investments

-

(20,603)

Prior years' work-in-progress expensed

(3,630)

(9,045)

Employee severance benefits

(5,717)

(9,011)

Other

12,377

(1,396)

Variations in Statement of Financial Position:

Decrease (increase) in liabilities

(89,878)

(272,646)

Increase (decrease) in financial assets

35,669

6,479

Increase (decrease) in inventory and prepaid expenses

(3,356)

(7,050)


Cash used by operating activities

610,492

462,822

Capital investment activities:

Principal repayment of tangible capital leases

14,095

13,481

Acquisitions of tangible capital assets

89,804

66,437

Transfer of tangible capital assets with no monetary impact

(8,747)

-

Proceeds from disposal of tangible capital assets

(7,202)

(6,022)


Cash used by capital investment activities

87,950

73,896

Financing activities:

Net cash provided by Government of Canada

$ (698,442)

$ (536,718)



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

 

1. Authority and objectives:

Transport Canada is a department of the Government of Canada named in Schedule 1 of the Financial Administration Act and reports to Parliament through the Minister of Transport, Infrastructure and Communities.

  • Transport Canada is responsible for the transportation policies, programs and goals set by the Government of Canada, which are supported through the following departmental programs:Infrastructure: Contributes to Canada's international competitiveness, productivity, and overall quality of life in urban, rural or remote areas through strategic investments in areas that directly support federal priorities, improving governance of transportation infrastructure providers, divestiture of federal assets to parties that are better placed to manage them, continued support to federally-dependent facilities and landlord of substantial land assets.
  • Safe and secure transportation: Promotes the safety of Canada's transportation system consisting of the air, marine, rail, and road modes of transportation through policy development, rule-making, monitoring and enforcement and outreach activities to ensure the protection of people from accidents and exposure to dangerous goods, enable the efficient flow of people and goods, and protect the environment from pollution.
  • Sustainable development: Develops and implements programs and policies in support of sustainable development to protect the natural environment and to achieve a more sustainable transportation system in Canada.

Transport Canada delivers its programs and services under numerous legislative and constitutional authorities including the Department of Transport Act, Canada Transportation Act, Aeronautics Act, Canada Marine Act, Canada Shipping Act, Navigable Waters Protection Act, Railway Safety Act, Transportation of Dangerous Goods Act, Motor Vehicle Safety Act, Canadian Air Transport Security Authority Act and Marine Transportation Security Act.

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 - Transport Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the department do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net Cash Provided by Government - Transport Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the department is deposited to the CRF and all cash disbursements made by the department 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 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 department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues:

  • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
  • Other 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.

(e) Expenses - These are recorded when the underlying transaction or expense occurred subject to the following:

  • Grants are recognized in the year in which the conditions for payment are met. In the case of grants, which 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, worker's compensation, and legal servicesare recorded as operating expenses at their estimated cost.

(f) Employee future benefits

  • Pension benefits: Eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The department'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 the department to make contributions for any actuarial deficiencies of the plan.
  • Severance benefits: Employees are entitled to severance benefits, as provided for 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 receivables from external parties are stated at amounts expected to be ultimately realized; a provision is made for external receivables where recovery is considered uncertain.

(h) Loans receivable are recorded at cost. They are written down to their net present value to reflect concessionary terms using market rates at the time of the loans. Loan discounts are amortized over the term of the loans. A provision is made for loans where recovery is considered uncertain.

(i) Investments in Crown corporations are recorded at cost. If there is a permanent impairment in value, an allowance is recorded to reduce the carrying value of the investment to a nominal amount.

(j) 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 statement.

(k) Environmental liabilities - Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.

(l) Inventories - Inventories consist of spare parts, material, supplies and publications held by the Department. Inventories, other than serialized inventory items or rotable parts, are valued at average cost. Serialized inventory items and rotable parts are valued on a specific cost basis. A serialized inventory itemis consumable inventory, which has a serial number and is required to be tracked for airworthiness purposes. A rotable partis a part that is not fully consumed during use and where part or all of the economic value is restored through refurbishment after use. Rotable parts are returned to stock for future consumption after refurbishment. Inventories with no further service potential, are valued at the lower of cost or net realizable value.

(m) 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, 2007. Losses resulting from foreign currency transactions are included in miscellaneous expenses on the statement of operations.

(n) Tangible capital assets - All tangible capital assets and leasehold improvements having an initial cost of $10,000or 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 assets as follows:



Asset type

Amortization period


Confederation Bridge:

100 years

Buildings and works:

Buildings

20 to 40 years

Works and Infrastructure

10 to 40 years

Machinery and equipment:

Machinery and equipment

5 to 20 years

Informatics hardware

3 to 5 years

Informatics software

3 years

Vehicles:

Ships and boats

10 to 20 years

Aircraft

6 to 20 years

Motor vehicles

6 to 35 years

Leasehold improvements

According to the lease terms

Leased tangible capital assets:

Leased material and equipment

According to the useful life of the asset if a bargain purchase offer exists or over the term of the lease


     

(o) 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, environmental 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. Change in accounting policy

During the period, Transport Canada has adopted a change in accounting policy regarding capital assets to more accurately reflect the economic value of these assets in the department's financial records. These changes were applied retroactively with restatement of prior periods.

Aircraft rotable parts with a historical cost of $10,000 or more and a useful life extending over one year have been reclassified from inventory to capital assets. Any betterments to the aircraft rotable parts which had previously been expensed as repairs and maintenance have also been reclassified as capital assets.

The impact of these changes on the previously reported 2005-06 closing balances is presented in table below:


($ thousands)

As previously stated

Effect of the adjustment

Revised amount

Statement of Operations

Safe and secure transportation

574,181

1,231

575,412

Total expenses

1,484,499

1,231

1,485,730

Net cost of operations

1,047,971

1,231

1,049,202

Statement of Financial Position

Tangible capital assets

3,197,905

37,039

3,234,944

Inventory

97,830

(40,885)

56,945

Total of non-financial assets

3,297,419

(3,846)

3,293,573

Total assets

3,423,614

(3,846)

3,419,768

Equity of Canada

1,796,718

(3,846)

1,792,872

Statement of Equity of Canada

Equity of Canada, beginning of year

2,248,253

(2,615)

2,245,638

Net cost of operations

(1,047,971)

(1,231)

(1,049,202)

Equity of Canada, end of year

1,796,718

(3,846)

1,792,872


 

4. Change in accounting estimates

Effective February 2007, Transport Canada has re-evaluated the estimated useful lives of it's aircrafts and it's aircraft engines. The useful life of the aircraft and aircraft engines now range from 6-20 years, previously 15 years, based on management experience and changes in technologies. As a result of this change in estimated useful life, amortization expense included in the statement of operations has increased by $ 824,306.

5. Parliamentary appropriations

Transport Canada 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 department 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

($ thousands)




Net cost of operations

$ 938,368

$ 1,049,202

Adjustments for items affecting net cost of operations but not affecting appropriations

Add (Less):

Revenues not available for spending

66,369

58,007

Refunds of previous years' expenses

425

8,766

Amortization of tangible capital assets

(182,113)

(180,644)

Variation in vacation pay and compensatory leave

(1,776)

(3,037)

Loss on disposals and write-downs of tangible capital assets

(72,023)

(53,072)

Other

12,377

(1,396)

Provision for valuation of loans and investments

-

(20,603)

Allowance for environmental and contingent liabilities

49,326

20,326

Prior years' work-in-progress expensed

(3,630)

(9,045)

Employee severance benefits

(5,717)

(9,011)

Justice Canada legal fees

(6,455)

(5,167)

Services provided without charge by other government departments

(68,531)

(59,718)


 

(211,748)

(254,594)



5. Parliamentary appropriations (cont'd)

(a) Reconciliation of net cost of operations to current year appropriations used (cont'd):


Adjustments for items not affecting net cost of operations but affecting appropriations:

Add (Less):

Variation in prepaid expenses

(265)

(821)

Acquisitions of tangible capital assets

89,804

66,437

Transfer of tangible capital assets with no monetary impact

(8,747)

-

Decrease in inventory

(3,091)

(6,229)

Payments of capital lease

14,095

13,481

Other

(116,761)

7,401


 

(24,965)

80,269



Current year parliamentary appropriations used

$ 701,655

$ 874,877



 

(b) Appropriations provided and used:



2007

2006

($ thousands)


Appropriations provided

Vote 01 - Operating expenditures

$ 301,080

$ 291,871

Vote 05 - Capital expenditures

79,124

74,790

Vote 10 - Transfer payments

297,173

429,626

Statutory amounts

146,853

152,651

Less:

Appropriations available for future years

(1,369)

(963)

Lapsed appropriations: Operating

(121,206)

(73,098)


Current year appropriations used

$ 701,655

$ 874,877



5. Parliamentary appropriations (cont'd)

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



2007

2006

($ thousands)


Net cash provided by Government

$ 698,442

$ 536,718

Revenues not available for spending

66,369

58,007

Refund of previous years' expenses

425

8,766

Change in net position in the Consolidated Revenue Fund:

Justice Canada legal fees

(6,455)

(5,167)

Variation in financial assets

(35,669)

(6,479)

Variation in liabilities

88,102

269,609

Proceeds of disposal

7,202

6,022

Other adjustments

(116,761)

7,401


(63,581)

271,386


Current year appropriations used

$ 701,655

$ 874,877



6. Expenses

The following table presents details of expenses by category:



 

2007

2006

 

($ thousands)

 

 

Other levels of governments within Canada

$ 165,452

$ 231,550

Non-profit organizations

38,183

136,678

Industry

46,282

66,215

Individuals

741

798

Other countries and international organizations

130

-


Total transfer payments

$ 250,788

$ 435,241


         

6. Expenses (cont'd)


Salaries and employee benefits

$ 486,951

$ 471,038

Amortization of tangible capital assets

182,113

180,644

Professional and special services

192,938

107,577

Net loss on disposal of tangible capital assets

60,315

52,549

Interest on capital lease

40,161

40,170

Travel and relocation

35,932

33,895

Equipment repair and maintenance

36,362

46,509

Accommodation (Note 19)

25,560

23,693

Utilities, materials and supplies

19,808

26,605

Telecommunications

7,470

7,373

Payments in lieu of taxes

6,958

6,833

Information services - communications

9,244

5,698

Rentals

5,227

4,528

Damage and other claims against the Crown

1,427

38,394

Postage

3,584

3,498

Miscellaneous

6,283

847

Pollution control (Note 17)

1,152

638


Total operating expenses

1,121,485

1,050,489


Total expenses

$ 1,372,273

$ 1,485,730



7. Revenues

The following table presents details of revenues by category:



 

2007

2006

($ thousands)


Sales of goods and services:

Airport rent

$ 295,181

$ 295,941

Monitoring and enforcement revenues

36,010

39,934

Rentals and concessions

26,788

35,415

Aircraft maintenance and flying services

34,369

29,722

Transport facilities user fees

14,155

16,031

Miscellaneous

11,155

4,570

Research and development

1,497

1,757

Interest

642

798

Pollution control revenues (Note 17)

14,108

12,360


Total revenues

$ 433,905

$ 436,528


         

8. Accounts receivable and advances

The following table presents details of accounts receivable and advances:



2007

2006

($ thousands)




Accounts receivable from other government departments

$ 17,602

$ 13,709

Accounts receivable from external parties

25,440

28,982

Advances to employees

335

399

Less: allowance for doubtful accounts on external

accounts receivable

(9,694)

(8,894)


Total accounts receivable and advances

$ 33,683

$ 34,196



9. Loans receivable



2007

2006

($ thousands)


St. John Harbour Bridge Authority

$ 22,647

$ 22,647

Canadian Airport Authorities

24,330

24,330

Victoria Harbour

2,451

2,536

St. Lawrence Seaway Management Corporation

168

179


Less:

Allowances on loans

(20,604)

(20,604)

Discounts on loans

(17,676)

(18,317)


Total Loans

$ 11,316

$ 10,771



(i) Saint John Harbour Bridge Authority:

The loan receivable from the Saint John Harbour Bridge Authority consists of consolidated non-interest bearing advances made in connection with the financing, construction and operation of a toll bridge across the harbour of Saint John, New Brunswick. Additional non-interest bearing advances may be made in years when the operating and financing costs of the toll bridge exceeds its revenues. Where the revenue for the year exceeds the operating and financing costs, the Saint John Harbour Bridge Authority will remit the excess funds to Transport Canada on an annual basis to repay the debt. A discount of $13,478,000 has been recorded to reflect the concessionary nature of the loan.

(ii) Canadian Airport Authorities:

Loans totalling $24,330,000 to Canadian Airport Authorities relate to the transfer of chattels and consumable stock to individual authorities upon transfer of the management, operation and maintenance responsibilities to the authority under the National Airports Policy. The loans receivable portfolio consists of 13 non-interest bearing loans to Canadian Airport Authorities issued in the years from 1997 to 2003, with prescribed annual repayment terms. The loans are recorded at their discounted net present values using market interest rates at the time of the loans. On May 9, 2005 the Government of Canada announced it would adopt a new rent relief policy for federally owned airports and in addition to the rent reductions, the government announced it would forgive outstanding chattels payments. As a result, an allowance for the full amount of the chattel loans was recorded.

(iii) Victoria Harbour:

The Victoria Harbour long-term receivable relates to the sale of a parcel of Victoria Harbour land for $2,578,469. The receivable has prescribed annual repayment terms and is recorded at its discounted net present value of $1,423,000 using the market interest rate at the time of sale. A payment of $85,440 was received in fiscal year 2006-07 ($42,720 in 2005-06).

(iv) St-Lawrence Seaway Management Corporation:

The St-Lawrence Seaway Management Corporation loan portfolio account was established by subsection 80(1) of the Canada Marine Act. The loan portfolio is managed in accordance with an agreement between Transport Canada and the St-Lawrence Seaway Management Corporation. The loan has prescribed monthly repayment terms with an annual interest rate of 7 per cent. The loan is secured by title on the property and partial discharge on the individual lots may be granted in the amount of $6,000. To date, three of the four loans have made full discharge. The mortgagor is in negotiations with Transport Canada and Justice Canada with respect to the remaining loan, which was repayable March 2004.

10. Rent receivable:

The National Airport System (NAS) consists of 25 Canadian airports considered essential to air transportation in Canada, including 3 airports owned by Territorial Governments. Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities (21) and a municipal government (1).

In fiscal year 2003-04, Transport Canada entered into lease amendments with nine of the Canadian Airport Authorities, which provided for deferral of a portion of the airport rent payable by the Airport Authorities to Transport Canada for the 2003 to 2005 lease years. The total rent deferred for 2003 to 2005 is payable to Transport Canada over ten years beginning in the 2006 lease year. Repayments of $6,855,098 were received in fiscal year 2006-07 ($1,832,000 in 2005-06). Rent receivable was $64,072,699 at March 31, 2007 ($70,927,797 at March 31, 2006).

11. Investments



2007

2006

($ thousands)


Royal Canadian Mint

$ 40,000

$ -

 

Via Rail Canada Inc.

9,300

9,300

 

Downsview Park

2,492

-

 

Ridley Terminals Inc.

90,000

90,000

 

Less: Allowance for valuation

(89,000)

(89,000)

 

 

Total Investments

$ 52,792

$ 10,300

 

 

(i) Royal Canadian Mint:

As a result of Government restructuring, the Royal Canadian Mint was transferred from the Canada Revenue Agency to Transport Canada. The investment of $40,000,000 is divided into four thousand shares of ten thousand dollars each.

(ii) Via Rail Canada Inc:

In fiscal year 1979-80, non-budgetary authority was granted to purchase common shares of Via Rail Canada Inc. to be valued at $100 per share for a total value of $9,300,000.

(iii) Downsview Park Inc:

Investment in Parc Downsview Park Inc. for the purpose of allowing the completion of the transfer of lands from National Defence to Parc Downsview Park Inc.

(iv) Ridley Terminals Inc:

On November 1, 2000, the shares of Ridley Terminals Inc. owned by Canada Ports Corporation were transferred to the Crown under the administration of Transport Canada. Due to concerns regarding the viability of Ridley Terminals Inc., for prior years, the investment in Ridley Terminals has been written-down to a nominal value in Transport Canada's financial statements.

12. Tangible capital assets:


 

Cost

Accumulated Amortization

2007
Net book

value

2006
Net book
value

($ thousands)

Opening balance

Acquisitions

Disposals
and

write-offs

Closing balance

Opening balance

Amortization

Disposals
and
write-offs

Closing balance

Land (1)

$ 198,586

$ 8,747

$ 9,333

$ 198,000

$ -

$ -

$ -

$ -

$ 198,000

$ 198,586

Buildings and works (2)

4,034,937

6,655

163,706

3,877,886

2,149,455

122,192

99,865

2,171,782

1,706,104

1,885,482

Machinery and equipment (3)

181,401

820

2,041

180,180

97,495

17,357

2,052

112,800

67,380

83,906

Vehicles

797,014

18,864

30,974

784,904

554,295

33,042

27,555

559,782

225,122

242,719

Leasehold improvements

13,635

531

-

14,166

5,346

1,334

-

6,680

7,486

8,289

Work-in-progress

69,471

54,187

2,643

121,015

-

-

-

-

121,015

69,471

Confederation Bridge

818,820

-

-

818,820

72,329

8,188

-

80,517

738,303

746,491

TOTAL

$ 6,113,864

$ 89,804

$ 208,697

$ 5,994,971

$ 2,878,920

$ 182,113

$ 129,472

$ 2,931,561

$ 3,063,410

$ 3,234,944


Amortization expense for the year ended March 31, 2007, is $182,113 (2006 - $180,644).

(1) Includes land for 22 National Airports with a net book value of $131,743 (2006 - $131,743).

(2) Includes building and works for 22 National Airports with a net book value of $941,913 (2006 - $1,088,739).

(3) Includes machinery and equipment for 22 National Airports with a net book value of $294 (2006 - $317).

The National Airport System assets (NAS) recorded above consist of the land, buildings, works and infrastructures of 22 Canadian airports.

Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities (21) and a municipal government (1). These agreements are in accordance with the federal National Airports Policy, the Public Accountability Principles for Canadian Airport Authorities and the Fundamental Principles for the Creation and Operations of Canadian Airport Authorities, which, in part, entails the transfer of the management, operations and maintenance of certain airports in Canada to Canadian Airport Authorities.

Transport Canada has the right to terminate the operating agreements and assume the responsibility for the management, operation and maintenance of the airport if the leased airports are not operated in accordance with the terms of the respective operating agreements and the Policies and Principles referred to above.

13. Accounts payable and accrued liabilities



 

2007

2006

 

($ thousands)

 

 

Payables to third parties

$ 563,706

$ 566,566

Payables to other government departments

60,231

69,041

Accrued salaries

17,200

15,589

Other accounts payable and accrued liabilities

50,085

38,609


Total accounts payable and accrued liabilities

$ 691,222

$ 689,805


         

14. Employee Benefits

(a) Pension benefits: The department'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 two 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 department contribute to the cost of the plan. The 2006-07 expense amounts to 57,385,000 ($58,770,000 in 2005-06), which represents approximately 2.2 times (2.6 times in 2005-06) the contributions by employees.

The department'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) Employee severance benefits: The department 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

($ thousands)


Accrued benefit obligation, beginning of year

$ 73,716

$ 64,705

Expense for the year

13,080

14,435

Benefits paid during the year

(7,364)

(5,424)


Accrued benefit obligation, end of year

$ 79,432

$ 73,716



15. Lease obligations for tangible capital assets

Under the Northumberland Strait Crossing Act, the Government of Canada entered into a long-term capital lease arrangement in 1992 and is obligated to pay an annual subsidy of $41,900,000 to the Strait Crossing Finance Inc., a wholly owned corporation of the Province of New Brunswick, for the construction of the Confederation Bridge. The annual payments made by Transport Canada are due on April 1 and will be used to retire $661,000,000 of 4.5 per cent real rate bonds issued in October 1993 by Strait Crossing Finance Inc. to finance the construction of the bridge. Annual payments made by Transport Canada began in 1997 and will continue until 2033. At such time, the ownership of the bridge will be transferred to the Government of Canada.

On April 1, 2006, an annual payment in the amount of $ 54,265,000 (2006 - $52,790,000) was made. This payment represents payment of principal in the amount of $ 14,095,000 (2006 - 13,480,721) and interest expense of $ 40,170,000 (2006 - $39,309,279).

The department has recorded a capital lease obligation of $ 668,565,000 as of March 31, 2007 (682,660,000 at March 31, 2006), based on the present value for the future subsidy payments using an interest rate of 6.06265 per cent (2006 - 6.1605 per cent).

Future minimum annual lease payments are as follows:



 

Maturing year

2007

2006

($ thousands)

 

 

2006-2007

$ -

$ 54,265

2007-2008

54,897

52,558

2008-2009

53,352

53,352

2009-2010

54,158

54,158

2010-2011

54,976

54,976

2011-2012

55,807

1,379,736

2012-2013 and thereafter

1,323,929

-


Total future minimum lease payments

1,597,119

1,649,045

 

Less: imputed interest

928,554

966,385


Balance of obligations under leased tangible capital assets

$ 668,565

$ 682,660


       

16. Contingent liabilities

(a) Contaminated sites

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where Transport Canada is obligated or likely to be obligated to incur such costs. The departmenthas identified approximately 568 sites (571 sites in 2006) where such action is possible and for which a liability of $186,814,790 ($149,670,000 in 2006) has been recorded. The departmenthas estimated additional clean-up costs of $139,108,000 ($154,427,000 in 2006) that are not accrued, as these are not considered likely to be incurred at this time. Transport Canada's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the departmentin the year in which they become known.

(b) Claims and litigation

Claims have been made against Transport Canada in the normal course of operations. Legal proceedings for claims totalling approximately $40,411,500 ($37,500,000 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.

Transport Canada is named as a defendant in a claim for $330,000,000 filed by the Mohawks of Akwesasne. The action was first initiated in 1976 for unlawful expropriation and breach of fiduciary duty regarding the expropriation of land in the 1950's for the construction of the St Lawrence Seaway and of the Seaway International Bridge. The outcome of this claim is not determinable at this time. No accrual for this contingency has been made in the financial statements.

17. Restricted equity of Canada

The department includes in its revenues and expenses certain transactions that legislation requires be earmarked for expenses relating to a specified purposes. The department has two such accounts:

(a) The Ship-Source Oil Pollution Fund (Fund) was established pursuant to section 702 of the Canada Shipping Act, to record levy tonnage payments for oil carried by ships in Canadian waters. Maritime pollution claims, the fee of the fund administrator, and related oil pollution control expenses, are financed out of the Fund.



 

2007

2006

 

($ thousands)

 

 

Restricted Ship-source Oil Pollution:

 

Balance, April 1, 2006

$ 350,843

$ 339,109

 

Revenues

14,092

12,316

Expenses

(1,152)

(582)

 


Balance, March 31, 2007

$ 363,783

$ 350,843


         

(b) The Fines for Transport of Dangerous Goods account was established pursuant to the Transportation of Dangerous Goods Act 1992 and related regulations to record fines levied by courts.



2007

2006

($ thousands)


Restricted - Fines for Transport of Dangerous Goods:

 
 

 

Balance, April 1, 2006

$ 599

$ 611

 
 

 

Revenues

16

44

 

Expenses

-

(56)

 
 

 

 

Balance, March 31, 2007

615

599

 

 
 

 

Restricted equity of Canada

$ 364,398

$ 351,442

 

 
         

18. Contractual obligations

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



($ thousands)

2007-08

2008-09

2009-10

2010-11

2011-12

Thereafter

Total


Transfer payments

$ 298,255

$ 267,655

$ 184,016

$ 186,078

$ 327,853

$ 71,376

$ 1,335,233

Tangible capital assets

12,972

1,076

600

-

-

-

14,648

Other goods and services

15,141

3,103

2,017

-

-

-

20,261

Software maintenance
agreements

3,291

-

-

-

-

-

3,291

Operating leases

2,401

610

-

-

-

-

3,011

Other

1,367

-

-

-

-

-

1,367


Total

$ 333,427

$ 272,444

$ 186,633

$ 186,078

$ 327,853

$ 71,376

$ 1,377,811



19. Related party transactions:

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

Services provided without charge:

During the year Transport Canada received without charge from other departments, accommodation, the employer's contribution to the health and dental insurance plans, worker's compensation, and legal services. These services without charge have been recognized in the department's Statement of Operations as follows:



2007

2006

($ thousands)


Accommodation provided by Public Works and Government Services Canada

$ 25,560

$ 23,693

Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat

30,631

28,879

Worker's compensation cost provided by Human Resources and Skills Development Canada

3,802

4,247

Legal services provided by department of Justice

8,538

2,899


Total

$ 68,531

$ 59,718



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, are not included as an expense in the department 's Statement of Operations.

20. Comparative information:

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

Table 12:  Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07


Response to Parliamentary Committees

Manufacturing: Moving Forward - Rising to the Challenge Report

The department responded to the Report recommendations 15 through 17.

http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=10476&Lang=1&SourceId=211230

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

May 2006 Auditor General's Report

Chapter 1 - Managing Government - Financial Information

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20060501ce.html

This audit is part of a series of audits that assessed financial control systems and processes in federal government departments and agencies, and included several departments. In this audit, the OAG assessed the extent to which departments and agencies addressed the key internal financial control weaknesses identified in the OAG's previous audits.

No audit observations or recommendations were made regarding Transport Canada.

2006 Report of the Commissioner of the Environment and Sustainable Development

Chapter 4 - Sustainable Development Strategies

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/c20060904ce.html

In this audit, the Commissioner of the Environment and Sustainable Development examined the progress made by federal departments and agencies toward meeting selected commitments made in their sustainable development strategies. This audit included a number of federal government departments and agencies.

No audit recommendations were directed at Transport Canada.

Chapter 8 - Environmental Petitions

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/c20050908ce.html

The objective of this audit was to inform Parliament and Canadians on the use of the petitions process and the Commissioner's monitoring of commitments and statements made in response to specific petitions. This audit included a number of federal government departments and agencies.

No audit recommendations were directed at Transport Canada.


Table 12: Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07 (continued)

External Audits by the Public Service Commission or the Office of the Commissioner of the Official Languages or the Official Languages Branch of the Public Service Human Resources Management Agency).

Public Service Commission

Audit of Acting EX Appointments - October 2006

http://www.psc-cfp.gc.ca/audit-verif/reports/2006/acting/index_e.htm

The objectives of this audit were to: (i) determine the extent to which acting EX appointment decisions respected the merit principle of the previous Public Service Employment Act (PSEA), related legislation, regulations and policies, and staffing values; and (ii) assess the effectiveness of departmental staffing management frameworks governing acting appointments for periods greater than four months to the EX Group and six months within the EX Group. The audit covered acting EX appointments in fiscal years 2002-03 and 2003-04. Transport Canada was one of several departments included within the audit scope.

The audit noted where Transport Canada complied with the relevant legislation, regulations, and policies under the former Public Service Employment Act. In addition, the audit noted that Transport Canada implemented a number of good practices, which were consistent with the objectives and principles of the former legislation. Although no audit recommendations were directed at Transport Canada, the department provided a response and has taken action in some areas to strengthen its documentation processes and meet the new legislative and policy requirements.

Internal Audits

Internal audits approved by Transport Canada's Audit and Review Committee in 2006-07:

  • Audit of Inspection Standardization Practices - Transport of Dangerous Goods
  • Audit of Inspection Standardization Practices - Marine Safety
  • Audit: Rail Safety Inspection Standardization Practices
  • Audit of Overtime and Extra-Duty Compensation in Transport Canada
  • Audit of Revenue and Recoveries - Follow-Up on the Recurring Pilot Fees - Implementation of Recommendations included in the June 2000 Audit Report
  • Audit of Revenue and Recoveries from Other Government Departments (OGDs) - Aircraft Services Component
  • Audit of Revenue and Recoveries - Follow-Up on the Implementation of Recommendations - Audit of the Contribution Agreement with the Canadian Wheat Board Governing the Leasing of Grain Hopper Cars July 2001
  • Audit of Revenue and Recoveries from Other Government Departments (OGDs) - Registrar of Imported Vehicles Program Component

More information is available at: http://www.tc.gc.ca/corporate-services/audit/menu.htm


Table 12: Response to Parliamentary Committees, Audits and Evaluations for FY 2006-07 (continued)


Internal Evaluations

Internal evaluations completed by Departmental Evaluation Services in 2006-07:

  • Evaluation of Transport Canada's Marine Security Initiatives
  • Evaluation of the Strategic Highway Improvement Program (SHIP)
  • Evaluation of Direction 2006

More information is available at http://www.tc.gc.ca/programevaluation/reports/menu.htm


Table 13:  Sustainable Development Strategies (SDS)


Department: Transport Canada

Points to Address

Departmental Input

1. What are the key goals, objectives, and/or long-term targets of the SDS?

Transport Canada has structured its Sustainable Development Strategy action plan around seven strategic challenges:

  1. Encourage Canadians to make more sustainable transportation choices
  2. Enhance innovation and skills development
  3. Increase system efficiency and optimize modal choices
  4. Enhance efficiency of vehicles, fuels, and fuelling infrastructure
  5. Improve performance of carriers and operators
  6. Improve decision-making by governments and the transportation sector
  7. Improve management of Transport Canada operations and lands.

Each strategic challenge is defined within the strategy and the 2007-2009 SDS also includes long-term objectives for each of the challenges.

2. How do your key goals, objectives and/or long-term targets help achieve your department's/agency's strategic outcomes?

Transport Canada's Sustainable Development Strategy is a departmental priority and involves a wide range of partners in an effort to promote a sustainable transportation system for Canada. The development and implementation of the strategy is a department-wide effort and the implementation of commitments and targets serve to contribute to:

  • A safe and secure transportation system that contributes to Canada's social development and security objectives;
  • An efficient transportation system that contributes to Canada's economic growth and trade objectives; and,
  • An environmentally responsible transportation system that contributes to Canada's sustainable development objectives.

Table 13 Sustainable Development Strategies (SDS) (cont'd)


Department: Transport Canada

Points to address

Departmental Input

3. What were your targets for the reporting period?

The strategy identifies a total of 173 targets, which are reported on an annual basis.

The 2007-2009 strategy includes the following five targets set to be completed by 2006-07:

  • Studying the costs and benefits of enabling federal employees access to payroll-deducted transit programs across Canada by 2006-07 (Commitment 1.3).
  • Develop and incorporate sustainable transportation evaluation criteria and performance indicators into new transportation infrastructure programs by 2006-07 (Commitment 3.3).
  • Completion of shipper modal choice model (development and calibration) by 2006-07 (Commitment 3.5).
  • In 2006-07, Transport Canada will develop a database of activity, fuel use and greenhouse gas emissions per mode for all modes of transportation. This database will enable the identification of data gaps, and areas for further work to address data gaps (Commitment 6.1).
  • In the context of the Canada Transportation Actamendments, proposed amendments to the data provisions to improve the data gathering quality by 2006-07 (Commitment 6.1).

In addition, the 2007-2009 strategy includes targets that are ongoing:

  • Evaluate the performance of advanced technology vehicles on an annual basis (Commitment 4.1).
  • Conduct activities to raise public awareness on an annual basis that also allows program information to be disseminated (Commitment 4.1).
  • Collect, verify and report on fuel consumption of new vehicles, on an annual basis (Commitment 4.2).
  • Maintenance of the Vehicles Fuel Economy (VFEIS) database, on an ongoing basis (Commitment 4.2).
  • Work with the Railway Association of Canada and Environment Canada to fully implement the commitments negotiated under the Memorandum of Understanding between 2006-07 and 2009-2010 (Commitment 4.3).
  • Continue to increase the effectiveness of the National Aerial Surveillance Program (NASP) by increasing the frequency of patrols and expanding surveillance to areas not normally patrolled, such as the Arctic (Commitment 5.2).

4. What is your progress to date?

The 2005-2006 Progress Report indicates that close to 80 per cent of the targets for the 2004-2007 SDS were reported to be either complete/ongoing or on-track. The 2006-07 Progress report is currently being developed. A detailed summary of the SDS Progress Report is compiled each year and posted online at http://www.tc.gc.ca/programs/Environment/SD/menu.htm

5. What adjustments have you made, if any?

In response to recommendations put forth by the Commissioner of the Environment and Sustainable Development, a goal for the 2007-2009 strategy was to streamline the process and focus on a smaller number of issues where Transport Canada can make a difference. The strategy includes less commitments that are more focused.

When developing the strategy, the department chose three themes at the heart of sustainable development in order to focus its efforts: urban transportation; commercial freight transportation; and marine transportation.

The SDS Fund (Commitment 6.3) has also been created as an internal source of funding which will allocate up to $1-million per year over three years for innovative projects that make significant contributions to sustainable transportation. Approved projects will be considered SDS commitments.

In addition, for this fourth round of sustainable development strategies, the federal government has developed a set of six sustainable development goals related to Clean Water, Clean Air, Reducing Greenhouse Gas Emissions, Sustainable Communities, Sustainable Development and Use of Natural Resources, and Governance for Sustainable Development. Many of the commitments within the 2007-2009 strategy serve to support these goals.


 

Table 14:  Procurement and Contracting

Supplementary information on Procurement and Contracting can be found at

http://publiservice.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 15:  Client Centred Service

Supplementary information on Client Centred Service can be found at

http://publiservice.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 16:  Travel Policies

Transport Canada follows and uses Treasury Board Secretariat Travel policies.