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Statement of Management Responsibility (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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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. |
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Suzanne Hurtubise |
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Elisabeth Nadeau Senior Financial Officer |
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Date |
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Date |
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Statement of Financial Position (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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As at March 31 |
2007 |
2006 |
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(in dollars) |
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Assets |
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Financial assets |
3,302,783 |
3,741,502 |
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Non-financial
assets |
15,443,604 |
1,676,811 |
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Total Assets |
18,746,387 |
5,418,313 |
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Liabilities and Equity of Canada |
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Liabilities |
575,525,839 |
559,390,034 |
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Total Liabilities |
670,463,606 |
642,790,521 |
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Equity of Canada |
(651,717,219) |
(637,372,208) |
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TOTAL LIABILITIES AND EQUITY |
18,746,387 |
5,418,313 |
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There are no contingent liabilities or contractual obligations |
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The accompanying notes form an integral part of these financial statements |
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Statement of Equity (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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For the Year ended March 31 |
2007 |
2006 |
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(in dollars) |
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Equity of Canada, beginning of year |
(637,372,208) (21,400,929) |
(637,504,641) 27,368,998 12,869,832 |
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(651,717,219) |
(637,372,208) |
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The accompanying notes form an integral part of these financial statements |
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Statement of Operations (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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For the Year ended March 31 (in dollars) |
2007 |
2006 |
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Community Safety and Partnerships |
Emergency Management and National Security |
Policing and Law Enforcement |
Total |
Total |
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Expenses |
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See note 11 |
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Transfer payments (Note 4)
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85,112,116
25,177,852 34,122,110 399,896 222,546 |
56,297,523
38,225,865 8,232,740 667,351 450,724 |
1,834,836
14,584,918 (1,118,331) 10,320,928 98,265 |
143,244,475
77,988,635 41,236,519 11,388,175 771,535 |
263,745,048
75,812,987 38,777,964 5,250,561 531,572 |
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Total Operating expenses |
69,598,985 |
66,469,404 |
27,596,971 |
163,665,359 |
146,084,536 |
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Total Expenses |
154,711,101 |
122,766,927 |
29,431,807 |
306,909,834 |
409,829,584 |
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Revenues |
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Other revenues |
11,777 |
11,777 |
11,777 |
35,332 |
15,534 |
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Net Cost of Operations |
154,699,324 |
122,755,150 |
29,420,029 |
306,874,502 |
409,814,050 |
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The expenses related to professional and special services for Policing and Law Enforcement in 2006-07 were $3,807,911; However reductions made to previous years' payables at year-end (PAYE), based on the latest information available, result in the presentation of a negative amount of $1,118,331. The main PAYE reductions are in relation to the 2001-02 Summit of Americas ($3,657,666) and the 2004-05 visit of the President of the United States ($1,024,226). The accompanying notes form an integral part of these financial statements. |
Statement of Cash Flow (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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For the Year ended March 31 |
2006 |
2007 |
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(in dollars) |
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Operating activities |
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Net Cost of Operations Non-cash items: Variations in Statement of Financial Position: |
306,874,502
(13,513,023) (771,535)
(438,719) |
409,814,051
(12,869,833) (531,572)
1,377,359 |
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Cash used by operating activities |
264,478,139 |
396,858,686 |
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Capital investment activities |
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Acquisitions of tangible capital assets (Note 6) |
14,519,307 |
205,514 |
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Cash used by capital investment activities |
14,538,328 |
217,965 |
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Financing activities |
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Net cash provided by Government of Canada |
(279,016,467) |
(397,076,651) |
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The accompanying notes form an integral part of these financial statements |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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1. Authority and objectives |
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The Department of Public Safety and Emergency Preparedness Canada (PSEPC) was created in 2003 to ensure coordination across all federal departments and agencies responsible for national security and the safety of Canadians. The department operates under the Department of Public Safety and Emergency Preparedness Act (2005, c.10) that received Royal assent on March 23, 2005. PSEPC contributes to the public safety of Canadians through the promotion and maintenance of a just, peaceful and safe society; it has three main core activities: |
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2. Significant accounting policies |
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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 (b) Net Cash Provided by Government |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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2. Significant accounting policies (continued) |
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(c) Change in net position in the Consolidated Revenue Fund (d) Revenues (e) Expenses |
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(f) Employee future benefits |
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Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer 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. |
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Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole. |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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2. Significant accounting policies (continued) |
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(g) Receivables |
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(h) Tangible capital assets Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows: |
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Asset Class |
Amortization Period |
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Informatics hardware |
4 years |
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(i) Measurement uncertainty |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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3. Parliamentary appropriations |
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PSEPC receives its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, PSEPC 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: |
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(a) Reconciliation of net cost of operations to current year appropriations used: |
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(in dollars) |
2007 |
2006 |
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Net cost of
operations
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306,874,502
(16,135,805) (1,115,942) (771,535) |
409,814,051
(30,280,864) (1,588,850) (531,572) |
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(20,941,080) |
(40,296,378) |
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Adjustments for items not affecting net cost of operations but affecting
appropriation: |
14,519,307 |
205,514 |
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14,519,307 |
205,514 |
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Current year appropriations used |
300,452,729 |
369,723,187 |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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3. Parliamentary appropriations (continued) |
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(b) Appropriations provided and used: |
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(in dollars) |
2007 |
2006 |
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Operating expenditures - Vote 1 |
147,890,000 |
85,968,000 |
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457,226,330 |
465,640,063 |
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Less: |
(167,077,826) |
(106,686,090) |
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290,148,504 |
358,953,973 |
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Add statutory amounts: |
75,709 |
68,735 |
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Current year appropriations used |
300,452,729 |
369,723,187 |
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(c) Reconciliation of net cash provided by Government to current year appropriations used: |
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(in dollars) |
2007 |
2006 |
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Net cash provided by Government |
279,016,467 |
397,076,651 |
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279,051,799 |
397,092,185 |
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Change in net position in the Consolidated Revenue Fund
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11,433,518 438,719 |
8,159,705 (1,377,359) |
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21,400,930 |
(27,368,998) |
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Current year appropriations used |
300,452,729 |
369,723,187 |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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4. Transfer payments |
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(in dollars) |
2007 |
2006 |
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Grants |
590,466
55,707,056 |
644,375
164,135,664 |
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Total |
143,244,475 |
263,745,048 |
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5. Accounts receivable and advances |
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(in dollars) |
2007 |
2006 |
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Receivables from other Federal Government departments and agencies |
3,278,031 |
3,722,652 |
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Total |
3,302,783 |
3,741,502 |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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6. Tangible capital assets |
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(in dollars) Cost |
2007 |
Acquisitions |
Asset |
2007 |
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Informatics hardware |
3,280,643 |
125,959 |
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3,406,602 |
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Total cost |
4,687,376 |
14,519,307 |
30,033 |
19,236,716 |
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Accumulated amortization |
2007 |
Amortization |
Asset |
2007 |
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Informatics hardware |
1,644,521 |
368,491 |
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2,013,012 |
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Total accumulated amortization |
3,010,565 |
771,535 |
11,012 |
3,793,112 |
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Net book value |
2007 |
Net |
Asset |
2007 |
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Informatics hardware |
1,636,122 |
(242,532) |
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1,393,590 |
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Total net book value |
1,676,811 |
13,747,772 |
19,021 |
15,443,604 |
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- There was no disposal or write-off of capital assets during the year; |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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7. Employee benefits |
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a) Pension benefits Both the employees and the department contribute to the cost of the Plan. The 2006-07 expense amounts to $7,538,416 ($7,918,355 in 2005-06), which represents approximately 2.2 times (2.6 in 2005-06) the contributions by employees. |
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PSEPC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor. (b) Severance benefits |
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(in dollars) |
2007 |
2006 |
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Accrued benefit obligation, beginning of year |
10,329,989 |
8,741,140 |
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Accrued benefit obligation, end of year |
11,445,931 |
10,329,989 |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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8. Related party transactions |
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The department 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, the department received services which were obtained without charge from other Government departments as presented in part (a). (a) Services received without charge from other government departments |
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(in dollars) |
2007 |
See note 11 |
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Accommodation |
7,680,133 |
7,023,948 |
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13,513,023 |
12,869,832 |
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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.
(b) Payables and receivables outstanding at year-end with related parties: |
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(in dollars) |
2007 |
2006 |
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Accounts receivable with other government departments and agencies |
3,278,031 |
3,722,652 |
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Notes to the Financial Statements (unaudited) |
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Public Safety and Emergency Preparedness Canada |
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9. Capitalization of Assets purchased in Fiscal year 2005-06 |
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In fiscal year 2006-07, a leasehold improvement to the PSEPC's Head Office building at 269 Laurier Avenue, Ottawa, that should have been capitalized in fiscal year 2005-06, was identified. A decision has been made to complete a post capitalization of the leasehold improvement during fiscal year 2006-07. The related cost is $7,551,000. |
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10. Disaster Financial Assistance Arrangements Program (DFAA) |
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In the event of a natural disaster in Canada, the federal government provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements Program to help meet the basic costs of response and recovery when such expenditures exceed what an individual province or territory could reasonably be expected to bear on its own. The current outstanding liabilities of $575M is the estimated cost of 41 natural disaster events for which the Federal Government has agreed to share the costs and final payments have not yet been made. |
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(in dollars) |
2007 |
2006 |
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Opening balance |
559,390,034 |
529,109,170 |
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Closing balance |
575,525,839 |
559,390,034 |
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11. Comparative information |
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Comparative figures have been restated to conform to the current year's presentation. The effect is an increase in salaries and employee benefits, professional and special services and accommodation costs on the statement of operations. The restatements are also reflected on the statement of cash flow but do not affect the net cash provided by the government, the appropriation used or the equity of Canada. |
The Minister of Public Canada has sole responsibility to Parliament for the following Acts: |
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PSEP or its Agencies administer or are impacted by the following Acts in whole or in part. Some contain specific functions of the Minister that the Minister exercises solely or in conjunction with other Ministers: |
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Public Safety Canada
Canadian Security Intelligence Service
Royal Canadian Mounted Police
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National Parole Board
Correctional Services of Canada
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Canada Border Services Agency
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Canada Border Services Agency (continued)
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Other |
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For further information about this Departmental Performance Report, you may communicate with our departmental contacts as follows:
Name |
Title |
Telephone |
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Suzanne Hurtubise |
Deputy Minister of Public Safety |
(613) 991-2895 |
Chantal Bernier |
Assistant Deputy Minister, Community Safety and Partnerships |
(613) 993-4325 |
J. Scott Broughton |
Senior Assistant Deputy Minister, Emergency Management and National Security |
(613) 991-2820 |
Richard Wex |
Assistant Deputy Minister, Policing, Law Enforcement and Interoperability |
(613) 990-2703 |
Elisabeth Nadeau |
Assistant Deputy Minister, Corporate Management |
(613) 990-2615 |
Kristina Namiesniowski |
Assistant Deputy Minister, Strategic Policy |
(613) 949-6435 |
Daniel Lavoie |
Director General, Communications |
(613) 990-2743 |
Eva Plunkett |
Inspector General of CSIS |
(613) 949-0675 |
For more information on Public Safety Canada, please visit our web site at: www.publicsafety.gc.ca