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SECTION III: SUPPLEMENTARY INFORMATION

Departmental Link to Government of Canada Outcome Areas

Strategic Outcome: Current and future generations of Canadians have access to their documentary heritage
	Actual Spending 2007-08 ($ thousands)			Alignment to Government of Canada Outcome Area
	Budgetary	Non-budgetary	Total
1.1 Managing the disposition of the Government of Canada records of continuing value	13,588.0	0	13,588.0	A Vibrant Canadian Culture and Heritage
1.2 Managing the documentary heritage of interest to Canada	68,910.9	0	68,910.9	A Vibrant Canadian Culture and Heritage
1.3 Making the documentary heritage known and accessible for use	39,957.1	0	39,957.1	A Vibrant Canadian Culture and Heritage

Parliament has given Library and Archives Canada (LAC) a broad mandate to preserve Canada's documentary heritage, to be a source of knowledge accessible to all, to cooperate with related institutions, and to serve as the collective memory of the Government of Canada. Since the establishment as a single institution in 2004, LAC has organized its operations around the strategic outcome now set out in its program activity architecture, "Current and future generations of Canadians have access to their documentary heritage."

LAC has a mandate to collaborate with federal departments to ensure the effective management of government information. The legislation also sets out an explicit mandate to make Canada's documentary heritage known and accessible for use by Canadians and those interested in Canada. The LAC collection is one part of a national collection of cultural materials held by archives, libraries and museums across the country-and LAC is a partner to similar organizations around the world. Accordingly, LAC works with other institutions to provide access, to enable learning and to share its lessons and experiences as a knowledge institution.

Financial Information

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

($ thousands)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
1.1 Managing the disposition of the Government of Canada records of continuing value	12,315.0	10,881.0	10,472.0	16,078.1	15,299.2	13,588.0
1.2 Managing the documentary heritage of interest to Canada	68,554.0	65,102.0	67,500.0	96,632.8	74,692.6	68,910.9
1.3 Making the documentary heritage known and accessible for use	33,031.0	30,183.0	41,331.0	43,049.0	69,960.6	39,957.1
Total	113,900.0	106,166.0	119,303.0	155,759.9	159,952.4	122,456.0
Less: Non respendable revenue	422.0	247.0	N/A	33.0	N/A	331.1
Plus: Cost of services received without charge	43,377.0	44,539.0	N/A	44,519.2	N/A	45,226.4
Total Departmental Spending	156,855.0	150,458.0	119,303.0	200,246.1	159,952.4	167,351.3
Full-time Equivalents	1,128	1,126.0	N/A	1,134	N/A	1,119

Financial variances are detailed in the following tables.

Explanation of variance: Total Authorities versus Total Spending

Summary

Authorities	159,952.4
Actuals	122,456.0
Variance	37,496.4

Program Activity	Amount ($ thousands)	Item	Comments
1.1 Managing the disposition of the Government of Canada records of continuing value	1,647.0	Increased workload due to of the implementation of the Federal Accountability Act	This amount has been carried forward to 2008/09, as the funding was received late in the fiscal year. As a result some activities are delayed to 2008/09.
1.2 Managing the documentary heritage of interest to Canada	7,600.0	Fit-up work for an Interim Collection Facility	$6.8M was frozen and has been re-profiled and $800K was lapsed. The Effective Project Approval submission to Treasury Board was postponed to June 2008. LAC expects construction work to refit the facility will begin in spring 2009 and to be completed in spring 2010, as set out in this deliverable. This would enable the transfer of holdings from existing locations into the retrofitted facility by fall 2010.
1.2 Managing the documentary heritage of interest to Canada	594.2	Construction of a Nitrate Preservation Facility	This amount has been lapsed. LAC finalized the Effective Project Approval submission for presentation to Treasury Board in November 2007. However, that TB submission presentation was postponed to May 2008 pending the outcomes of the Strategic Review exercise.
1.2 Managing the documentary heritage of interest to Canada	-1,647.0	Increased workload due to of the implementation of the Federal Accountability Act	Funding for the increased workload was requested and approved through Supplementary Estimates "B" and the funding was taken from Program Activity 1.2 frozen allotment.
1.3 Making the documentary heritage known and accessible for use	28,731.0	Portrait Gallery of Canada project	This amount has been reprofiled to 2008/09 until a decision is taken on this project.
TOTAL	36,925.2 *

* This number does not correspond to overall variance since only major items are included in this table.

Explanation of variance: Total Planned versus Total Authorities

Summary

Planned	155,759.9
Authorities	159,952.4
Variance	-4,192.5

Program Activity	Amount ($ thousands)	Item	Comments
1.2 Managing the documentary heritage of interest to Canada	14,930.0	Fit-up work for an Interim Collection Facility	This amount was not accessed. The Effective Project Approval submission to Treasury Board was postponed to June 2008. LAC expects construction work to refit the facility to begin in spring 2009 and to be completed in spring 2010, as set out in this deliverable. This would enable the transfer of holdings from existing locations into the retrofitted facility by fall 2010.
1.2 Managing the documentary heritage of interest to Canada	12,945.8	Construction of a Nitrate Preservation Facility	This amount was not accessed. LAC finalized the Effective Project Approval submission for presentation to Treasury Board in November 2007. However, that TB submission presentation was postponed to May 2008 pending the outcomes of the Strategic Review exercise.
1.2 Managing the documentary heritage of interest to Canada	-1,647.0	Increased workload due to of the implementation of the Federal Accountability Act	Funding for the Federal Accountability Act was requested and approved through Supplementary Estimates "B" and the funding was taken from Program Activity 1.2 frozen allotment.
1.2 Managing the documentary heritage of interest to Canada	-5,285.0	AMICAN project to replace obsolete equipment.	This amount was not forecasted in the planned. Funding was received through Supplementary Estimates "A." The total amount received for AMICAN was $7.59 M, the balance is explained under program activity 1.3.
1.3 Making the documentary heritage known and accessible for use	1,000.0	Initiative for Equitable Library Access	This amount has been re-profiled in the TBS Fiscal Framework until 2010/11.
1.3 Making the documentary heritage known and accessible for use	-2,305.0	AMICAN project to replace obsolete equipment.	This amount was not forecasted in the planned. Funding was received through Supplementary Estimates "A." The total amount received for AMICAN was $7.59 M, the balance is explained under program activity 1.2.
1.3 Making the documentary heritage known and accessible for use	-23,162.0	Portrait Gallery of Canada project	This amount was not forecasted in the planned. It was a transfer from Public Works and Government Services Canada through Supplementary Estimates "A."
All Program Activities	1,921.0	Employee Benefit Program	EBP authorities were lower than planned.
All Program Activities through Corporate Allocation	-2,458.9	Vote 23 Transfer	This amount increased Library and Archives Canada's authorities, however was not forecasted in the planned.
TOTAL	-4,061.1 *

* This number does not correspond to overall variance since only major items are included in this table.

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 ($ thousands)
		Main Estimates	Planned Spending	Total Authorities	Actual
50	Program expenditures	107,301.0	143,757.9	148,462.8	111,035.2
(S)	Contributions to employee benefit plans	12,002.0	12,002.0	11,331.7	11,331.7
(S)	Spending of proceeds from the disposal of surplus Crown Assets	-	-	157.9	89.1
	Total	119,303.0	155,759.9	159,952.4	122,456.0

Additional financial tables are available on Treasury Board Secretariat website:

• Sources of Respendable and Non-Respendable Revenue
• Use Fees
• Internal Audits and Evaluations

Library and Archives Canada follows and uses Treasury Board Secretariat travel policies.

Financial Statements of

LIBRARY AND ARCHIVES CANADA

BIBLIOTHÈQUE ET ARCHIVES CANADA

For the year ended
March 31^st, 2008

---

LIBRARY AND ARCHIVES CANADA
Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 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 fulfil its accounting and reporting responsibilitites, 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.

LIBRARY AND ARCHIVES CANADA

Statement of Financial Position (Unaudited)
For the Year Ended March 31

(in thousands of dollars)

	2008				2007
	Managing Documentary Heritage	Documentary Heritage Known and Accessible	Managing Disposal GOC Records	Total	Total
Transfer payments	37	2,906	-	2,943	2,192
Operating expenses
Salary and employee benefits	48,463	26,140	10,977	85,580	80,064
Accomodation	21,441	14,789	3,741	39,971	39,414
Professional and special services	6,558	5,072	1,824	13,454	9,497
Utilities, materials and supplies	5,916	769	151	6,836	3,202
Communication services	1,541	1,688	309	3,538	2,048
Amortization of tangible capital assets (note 5)	1,837	1,290	153	3,280	3,344
Repair and maintenance	1,674	1,202	288	3,164	3,992
Acquisition of machinery and equipment	1,391	824	271	2,486	1,725
Rental costs	470	1,434	108	2,012	1,749
Travel	721	522	310	1,553	1,389
Other	260	183	95	538	580
Loss on disposal and write-down of tangible assets	34	11	2	47	1,039
Total operating expenses	90,306	53,924	18,229	162,459	148,043
Total expenses	90,343	56,830	18,229	165,402	150,235
Revenues
Sales of goods and information products	-	429	-	429	388
Other	31	50	5	86	66
Gain on disposal of non-capital assets	35	23	6	64	110
Total revenues	66	502	11	579	564
Net cost of operations	90,277	56,328	18,218	164,823	149,671

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

Assets
	2008	2007
Financial Assets Accounts receivable and advances (note 4)	1,901	985
Total Financial Assets	1,901	985
Non-Financial Assets Prepaid expenses	-	18
Tangible capital assets (note 5)	34,148	28,558
Collections (note 6)	1	1
Total Non-Financial Assets	34,149	28,577
TOTAL	36,050	29,562
Liabilities and Equity of Canada
	2008	2007
Liabilities
Accounts payable and accrued liabilities	16,000	9,108
Vacation pay and compensatory leave	6,696	6,876
Deferred revenue (note 7)	696	829
Employee severance benefits (note 8)	16,464	13,239
	39,856	30,052
Equity of Canada	(3,806)	(490)
TOTAL	36,050	29,562
	2008	2007
Equity of Canada, beginning of year	(490)	(4,362)
Net cost of operations	(164,823)	(149,671)
Current year appropriations used (note 3)	122,456	106,166
Revenue not available for spending (note 3)	(137)	(147)
Change in net position in the Consolidated Revenue Fund (note 3)	(6,038)	2,985
Services received without charge from other government departments (note 9)	45,226	44,539
Equity of Canada, end of year	(3,806)	(490)
	2008	2007
Operating activities
Net costs of operations	164,823	149,671
Non-cash items Amortization of tangible capital assets	(3,280)	(3,344)
Loss on disposal and write-down of tangible capital assets	(47)	(1,039)
Services provided without charge from other government department (note 9)	(45,226)	(44,539)
Variations in Statement of Financial Position Increase in accounts receivable and advances	916	227
Decrease in prepaid expenses	(18)	(48)
Increase in liabilities	(9,804)	3,250
Cash used by operating activities	107,364	104,178
Investment activities
Acquisitions of tangible capital assets (note 5)	8,933	4,826
Proceeds from disposal of tangible capital assets	(16)	-
Cash used by investment activities	8,917	4,826
Financing activities
Net cash provided by Government of Canada (note 3)	(116,281)	(109,004)

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

LIBRARY AND ARCHIVES CANADA
Notes to the Financial Statements (Unaudited)
For the Year Ended March 31

1. Authority and objectives

Library and Archives Canada is a department within the Government of Canada and was established on May 24, 2004 as a result of the amalgamation of the former National Library of Canada and National Archives of Canada. Library and Archives Canada's role was confirmed in the 2004 Library and Archives of Canada Act. The Act assigns discretionary power to the Librarian and Archivist of Canada in the attainment of Library and Archives Canada's objects. Under the Act, no record under the control of a government or ministerial institution may be destroyed prior to receiving consent from the Librarian and Archivist of Canada and those records considered to be of historic or archival importance to the Librarian and Archivist of Canada, shall be transferred to the care and control of the Librarian and Archivist of Canada.

Library and Archives Canada is considered a Schedule I.1 organization within the Financial Administration Act and reports to Parliament through the Minister of Canadian Heritage.

The mandate of Library and Archives Canada is to preserve the documentary heritage of Canada for the benefit of present and future generations; to serve as a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society; to facilitate in Canada cooperation among the communities involved in the acquisition, preservation and diffusion of knowledge; and to serve as the continuing memory of the Government of Canada and its institutions.

The Documentary Heritage Collection Sector ensures that Canada's documentary heritage is collected, safeguarded and organized for current and future use. Its functions are the development, organization, and care of the collections. All collections will be developed, managed and preserved under the auspices of the Documentary Heritage Collection Sector. The Programs and Services Sector increases awareness of, access to, and use and understanding of, Canada's documentary heritage. Its two functions are delivery of services in response to client demand of all types and via all channels; and delivery of programs to promote knowledge and understanding of Canada's documentary heritage. The former is responsive to demand; the latter is proactive, anticipating the information needs of Canadians. Combined, they are the important means through which Library and Archives Canada delivers its mandate to make known Canada's documentary heritae. The Corporate Management and Government Records Sector supports federal institutions in the management of information and sound recordkeeping. Its primary functions include IM Strategies, IM Solutions, and IM Services.

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
Library and Archives Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to Library and Archives Canada do not parallel financial reporting according to gererally 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 for Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.

(b) Net Cash Provided by Government
Library and Archives Canada operates within the Consolidated Revenue Fund (CRF). The CRF is administered by the Receiver General for Canada. All cash received by Library and Archives Canada is deposited to the CRF and all cash disbursements made by Library and Archives Canada are paid from the CRF. Net cash provided by Governement 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
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

i) Sales of goods and information products are revenues from regulatory fees and are recognized in the accounts based on the services provided in the year.

ii) Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.

iii) Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

2. Summary of significant accounting policies (cont'd)

(e) Expenses - Expenses are recorded on the accrual basis:
i) 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.

ii) Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.

iii) Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.

iv) Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, employee compensation payments and legal services are recorded as operating expenses at their estimated cost.

(f) Employee future benefits
i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. Library and Archives Canada'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 Library and Archives Canada to make contributions for any actuarial deficiencies of the Plan.

ii) Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts receivables and advances
Accounts receivables and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(h) Tangible capital assets
All tangible capital assets having an initial cost of $10,000 or more are recorded at their acquisition cost. Software under development is transferred to proper account once in-service and amortized accordingly. The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.

In Fiscal Year 2006-07, Library and Archives Canada raised its threshold for determination of capital assets from $3,500 to $10,000.

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

Asset Class	Amortization Period
Machinery and equipment	5-15 years
Informatics hardware	3-10 years
Informatics purchased and developed software	2-7 years
Other equipment, including furniture	5-10 years
Motor vehicles	3-15 years

(i) Collections
The collections of Library and Archives Canada are presented on the Statement of Financial Position at a nominal value of $1,000. Items purchased for the collections are recorded as an expense in the year of acquisition. Items collected from the Federal government are not recorded on the Statement of Financial Position.

(j) 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 the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary appropriations

Library and Archives Canada receives most if its funding through annual Parliamentary appropriations. Items recognized in the statements of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, Library and Archives Canada has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences between net results of operations and appropriations are reconciled in the following tables.

(a) Reconciliation of net cost of operations to current year appropriations used
	2008	2007
	(in thousands of dollars)
Net cost of operations	164,823	149,671
Adjustments for items affecting net cost of operations but not affecting appropriations: Add(Less):
Services provided without charge	(45,226)	(44,539)
Amortization of tangible capital assets	(3,280)	(3,344)
Employee severance benefits	(3,225)	603
Vacation pay and compensatory leave	180	(200)
Reversal of previous year expenses	178	97
Revenue not available for spending	137	147
Loss on disposal and write-down of tangible capital assets	(47)	(1,039)
Other	(19)	(74)
	(51,302)	(48,349)
Adjustments for items not affecting net cost of operations but affecting appropriations Add(Less):
Acquisition of tangible capital assets	8,933	4,826
Change in prepaid expense	-	18
Accountable advances	2	-
	8,935	4,844
Current year appropriations used	122,456	106,166
(b) Appropriations provided and used
	2008	2007
	(in thousands of dollars)
Operating expenditures - Vote 45	148,463	104,626
Statutory amounts	11,490	11,332
Appropriations available for use	159,953	115,958
Less:
Lapsed appropriations: operating	(2,950)	(9,717)
Lapsed appropriations: Frozen allotments	(34,478)	-
Total lapsed	(37,428)
Appropriations available for future years	(69)	(73)
Refunds of amounts credited to revenues in previous years	-	(2)
Current year appropriations used	122,456	106,166
(c) Reconciliation of net cash provided by Government to current year appropriations used
	2008	2007
	(in thousands of dollars)
Net cash provided by Government	116,281	109,004
Revenue not available for spending	137	147
Change in net position in the Consolidated Revenue Fund
Variation in accounts receivable and advances	(916)	(227)
Variation in accounts payable and accrued liabilities	6,892	(2,837)
Variation in deferred revenue	(133)	(3)
Other adjustments	195	82
	6,038	(2,985)
Current year appropriations used	122,456	106,166

4. Accounts receivable and advances

The following table presents details of accounts receivable and advances:
	2008	2007
	(in thousands of dollars)
Receivable from other Federal Government Departments and agencies	1,707	913
Receivable from external parties	182	62
Employee advances	12	10
Total	1,901	985

5. Tangible capital assets

Cost	Opening Balance	Acquisitions	Reclassification of Assets	Disposals and write-offs	Closing Balance
(in thousands of dollars)
Machinery and equipment	793	23		(30)	786
Informatics hardware	7,467	2,422		(355)	9,534
Informatics purchased and developed software	10,272	1,702	1,540	-	13,514
Other equipment	29,387	941		(156)	30,172
Motor vehicles	449	65		(22)	492
Software under development	4,508	3,780	(1,540)	-	6,748
	52,876	8,933	-	(563)	61,246
Accumulated amortization	Opening Balance	Amortization	Reclassification of Assets	Disposals and write-offs	Closing Balance
(in thousands of dollars)
Machinery and equipment	610	26	-	(30)	606
Informatics hardware	5,114	758	-	(332)	5,540
Informatics purchased and developed software	4,442	1,412	-	-	5,854
Other equipment	13,851	1,042	-	(116)	14,777
Motor vehicles	301	42	-	(22)	321
	24,318	3,280	-	(500)	27,098
Net book value	2008	2007
(in thousands of dollars)
Machinery and equipment	180	183
Informatics hardware	3,994	2,353
Informatics purchased and developed software	7,660	5,830
Other equipment	15,395	15,536
Motor vehicles	171	148
Software under development	6,748	4,508
	34,148	28,558

Amortization expense for the year ended March 31, 2008 is $3,280 ($3,344 in 2007).

6. Collections

Library and Archives Canada preserves the collective memory of the nation and of the Government of Canada and contributes to the protection of rights and the enhancement of a sense of national identity.

While the nominal valuation attributed to the collection in these Financial Statements is aligned with Canadian Public Sector reporting standards, this is not representative of the historical or market value of the collection. Although not capitalized like other assets such as buildings or equipment, these irreplaceable treasures have inestimable legal, evidentiary, cultural and, indeed, monetary value for Canadians now and for generations to come. These include documentary material transferred at no charge from government departments, publications received through Legal Deposit, materials purchased and donated materials for which tax receipts may have been issued.

7. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenue stemming from donations. Some of these donations are restricted for specific purposes. Revenue is recognized each year in the amount of expenses incurred for the purposes for which the donations were received.

	2008	2007
	(in thousands of dollars)
Balance, beginning of year	829	832
Add amount received from external organizations	991	1,177
Less revenues recognized in the year	(1,124)	(1,180)
Balance, end of year	696	829

8. Employee benefits

a) Pension benefits: Library and Archives Canada's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and Library and Archives Canada contribute to the cost of the Plan. The 2007-08 expense amounts to $8,260,795 ($8,148,649 in 2006-07), which represents approximately 2.1 (2.2 in 2006-07) time the contributions by employees.

Library and Archives Canada'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: Library and Archives Canada 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:

	2008	2007
	(in thousands of dollars)
Accrued benefit obligation, beginning of year	13,239	13,842
Expense for the year	4,742	915
Benefits paid during the year	(1,517)	(1,518)
Accrued benefit obligation, end of year	16,464	13,239

9. Related party transactions

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

(a) Services provided without charge to Library and Archives Canada:
During the year Library and Archives Canada received without charge from other departments, accommodation, legal fees, employee compensation benefits and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in Library and Archives Canada's Statement of Operations as follows:

	2008	2007
	(in thousands of dollars)
Accommodations	39,971	39,414
Employer Contribution to Health and Dental Insurance	5,172	5,066
Workers' compensation payments	70	55
Legal services	13	4
	45,226	44,539

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 (PWGSC) and audit services provided by the Office of the Auditor General, are not included as an expense in Library and Archives Canada's Statement of Operations. Similarly, Library and Archives Canada provides certain storage and reference services without charge to other Government of Canada departments, agencies and Crown corporations.

(b) Payables outstanding at year-end with related parties:

	2008	2007
	(in thousands of dollars)
Accounts receivable with other government departments and agencies	1,185	675
Accounts payable to other government departments and agencies	1,112	876

(c) Administration of programs on behalf of other government departments

Since February 2008, Library and Archives Canada coordinates and manages the funds obtain by the Council of the Network of Official Languages Champions (CNOLC). The Council is funded according to voluntary contributions from departments and agencies. In 2007-2008, the Council received $84,382.31 in contribution from which $79,382.31 was spent and thus, $5,000 ($17,500 in 2006-2007) was transferred to the Treasury Board at year end.

Since May 2006, Library and Archives Canada coordinates and manages the funds obtain for the networks of small federal agencies. The network is funded through contributions from all agencies to the cost sharing. The expenses are the disbursements made on behalf of the group. In 2007-2008, the network received $352,748.82 ($370,000 in 2006-2007) and the total amount was spent ($338,000 in 2006-2007).

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