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SECTION III – SUPPLEMENTARY INFORMATION

Office of the Commissioner Link to Government of Canada Outcomes

(in thousands of dollars)


Strategic outcome: Compliance with and respect for the Official Languages Act by federal institutions and other organizations subject to the Act.
Program activity title Actual Expenditures
2007–2008
Alignment to Government of Canada Outcome Area
Budgetary Non budgetary Total
Compliance Assurance 9,217 - 9,217 A diverse society that promotes linguistic duality and social inclusion
Policy and Communications 11,129 - 11,129

Table 1: Comparison of Planned to Actual Spending (including Full‑Time Equivalents)

(in thousands of dollars)


  Actual Expen-ditures
2005-
2006
Actual Expen-ditures
2006-
2007
2007–2008
Main Estimates Planned Spending Total
Authorities
Actual Spending
Compliance Assurance 8,173 9,015 8,954 8,958 9,731 9,217
Policy and Communications 9,629 10,817 10,260 10,274 11,426 11,129
Total 17,802 19,832 19,214 19,232 21,157 20,346
Less :
Non-Respendable revenue
- 3 N/A - N/A -
Plus :
Cost of services received without charge
2,647 2,790 N/A 2,645 N/A 2,691
Total Expenditures by the Office of the Commissioner 20,449 22,619 N/A 21,877 N/A 23,037
Full-Time Equivalents 150 154 N/A 167 N/A 151

Table 2: Voted and Statutory Items

(in thousands of dollars)



Voted or Statutory Item
Truncated Vote or Statutory Wording 2007-2008
Main Estimates Planned Spending Total Authorities Actual Spending
20 Program Expenditures 17,085 17,100 19,191 18,384
(S) Contributions to employee benefit plans 2,129 2,132 1,962 1,962
(S) Crown Assets Surplus - - 4 -
  Total 19,214 19,232 21,157 20,346

Table 3: User Fees

  • The Office of the Commissioner of Official Languages has been subject to the Access to Information Act since April 1, 2007. The table on User Fees can be found on the Treasury Board Secretariat’s Web site at the following address: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

Table 4 : Response to Parliamentary Committees

Standing Senate Committee on Official Languages

Table 5: Internal Audits and Evaluations

  • The Office of the Commissioner of Official Languages did not conduct internal audits or evaluations during 2007-2008.

Table 6: Travel Policy

The table on the Travel Policy can be found on the Treasury Board Secretariat’s Web site at the following address: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

Table 7: Financial Statements


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements of the Office of the Commissioner of Official Languages (Office) for the year ended March 31, 2008 and all information contained in this report rests with the Office's management. These financial statements have been prepared by management in accordance with accounting policies issued by the Treasury Board of Canada Secretariat, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

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 Office’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Office’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 Office.

The Auditor General of Canada conducts an independent audit and expresses an opinion on the accompanying financial statements.



The original version was signed by

The original version was signed by
Graham Fraser
Commissioner of Official Languages
Lise Cloutier
Senior Financial Officer
Assistant Commissioner
Corporate Services
Ottawa, Canada
July 18, 2008
 

 


Vérificatrice générale du Canada


AUDITOR’S REPORT

To the Speaker of the House of Commons and the Speaker of the Senate

I have audited the statement of financial position of the Office of the Commissioner of Official Languages as at March 31, 2008 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Office’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Office as at March 31, 2008 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Further, in my opinion, the transactions of the Office that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Official Languages Act.

The original version was signed by

John Wiersema, FCA
Deputy Auditor General
for the Auditor General of Canada

Ottawa, Canada
July 18, 2008



OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Financial Position
At March 31

  2008            2007
Assets      
       
Financial assets      
          Cash $ 3,900     $ 3,178  
          Due from the Consolidated Revenue Fund 2,087,033     2,572,716  
          Accounts receivable from other Government
          departments and agencies
228,985     377,494  
Total financial assets      2,319,918     2,953,388  
       
Non-financial assets      
          Prepaid expenses 1,000     4,203  
          Tangible capital assets (Note 4) 2,457,068     2,531,710  
Total non-financial assets      2,458,068     2,535,913  

TOTAL

$ 4,777,986  
 
$ 5,489,301  
       
Liabilities      
       
          Accounts payable and accrued liabilities $ 2,238,598     $ 2,975,944  
          Provision for vacation pay and
          compensatory leave
686,692     689,101  
          Employee severance benefits (Note 5) 2,476,496     2,296,273  
Total liabilities      5,401,786     5,961,318  

Equity of Canada
(623,800)    (472,017) 

TOTAL

$ 4,777,986  
 
$ 5,489,301  
       
Contingent liabilities (Note 8)      
Contractual obligations (Note 9)      
 
The accompanying notes are an integral part of these financial statements
 


The original version was signed by
The original version was signed by
Graham Fraser
Commissioner of Official Languages
Lise Cloutier
Senior Financial Officer
Assistant Commissioner Corporate Services


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES


Statement of Operations

For the year ended March 31


  2008 2007
Operating Expenses Compliance Assurance Policy and
Communications
Total  
Salaries and employee benefits $ 7,239,714 $ 7,614,214 $ 14,853,928 $ 14,167,568
Professional and special services 1,576,136 2,531,224 4,107,360 3,448,165
Accommodation 711,350 1,023,650 1,735,000 1,770,000
Transportation and telecommunications 435,786 632,398 1,068,184 886,167
Amortization of tangible capital assets 308,144 443,426 751,570 486,938
Communication and printing 4,808 257,567 262,375 171,391
Utilities, materials and supplies 93,208 145,044 238,252 278,060
Rentals of photocopiers and other items 42,489 75,395 117,884 114,510
Repairs and maintenance 30,014 45,062 75,076 73,748
Other 967 876 1,843 3,255
Net cost of operations $ 10,442,616 $ 12,768,856 $ 23,211,472 $ 21,399,802

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


OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES


Statement of Equity of Canada

For the year ended March 31


  2008          2007
         
Equity of Canada, beginning of the year $ (472,017)   $ (1,635,429)  
Net cost of operations (23,211,472)   (21,399,802)  
Net cash provided by Government 20,854,372   18,529,913  
Change in due from Consolidated Revenue Fund (485,683)   1,243,301  
Services provided without charge by other government departments (Note 7) 2,691,000   2,790,000  
Equity of Canada, end of the year
$ (623,800)
 
$ (472,017)
 

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

 

OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Statement of Cash Flow

For the year ended March 31


    2008           2007
Operating activities
Net cost of operations   $ 23,211,472   $ 21,399,802
Non-cash items:        
    Amortization of tangible capital assets   (751,570)   (486,938)
    Gain on disposal of tangible capital assets   ---   2,808
    Services provided without charge by
    other government departments (Note 7)
  (2,691,000)   (2,790,000)
Variation in Statement of Financial Position:        
    Decrease (Increase) in liabilities   559,532   (1,358,747)
    Increase (Decrease) in accounts receivables   (148,509)   215,392
    Increase (Decrease) in prepaid expenses   (3,203)   (5,445)
Cash used by operating activities   20,176,722   16,976,872
         
Capital investment activities        
Acquisitions of tangible capital assets   676,928   1,556,097
Proceeds from disposal of tangible capital assets   ---   (2,808)
Cash used by capital investment activities   676,928   1,553,289
         
Financing activities        
Net cash provided by Government of Canada   (20,854,372)   (18,529,913)
         
Net Cash Used   (722)   248
         
Cash, beginning of year   3,178   3,426
 
Cash, end of year
 
$ 3,900
 
  $ 3,178

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

OFFICE OF THE COMMISSIONER OF OFFICIAL LANGUAGES

Notes to the Financial Statements

For the year ended March 31, 2008

1.  Authority and Objectives

The Parliament of Canada adopted the first Official Languages Act in 1969. This Act provided that English and French would henceforth have “equality of status and equal rights and privileges as to their use in all the institutions of the Parliament and Government of Canada.”

A new Official Languages Act came into force in 1988 and was amended on November 25, 2005. The Act sets out three basic objectives of the Government of Canada:

  1. ensure respect for English and French as official languages of Canada, and ensure equality of status and equal rights and privileges as to their use in all federal institutions;
  2. set out the powers, duties and functions of federal institutions with respect to the official languages of Canada;
  3. support the development of English and French linguistic minority communities and generally advance the equality of status and use of the English and French languages within Canadian society.

The Office of the Commissioner of Official Languages (Office), which serves the public from its offices in Ottawa and its five regional offices, supports the Commissioner of Official Languages in fulfilling his mandate. The mandate of the Commissioner consists of taking all necessary measures to ensure recognition of the status of each of the official languages and compliance with the letter and the spirit of the Official Languages Act in the administration of the affairs of federal institutions, including any of their activities relating to the advancement of English and French in Canadian society.

The Office is named in Schedule I.1 of the Financial Administration Act (FAA) and is funded through annual appropriations.

The Commissioner of Official Languages is appointed after approval of the appointment by resolution of the Senate and the House of Commons for a seven-year term (renewable). The Commissioner reports directly to Parliament.

2.  Significant Accounting Policies

a)  Basis of presentation 

These financial statements have been prepared on an accrual basis of accounting in accordance with accounting policies issued by the Treasury Board of Canada Secretariat, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

b)  Parliamentary appropriations

The Office is funded through annual parliamentary appropriations.  Appropriations provided to the Office do not parallel financial reporting according to Canadian generally accepted accounting principles for the public sector. They are based in a large part 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 information regarding the source and disposition of these authorities and provides a high-level reconciliation between the two bases of reporting.

c)  Net cash provided by Government

The Office operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office are paid from the CRF. Net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

d)  Due from the Consolidated Revenue Fund 

Due from the CRF represents amounts of cash that the Office is entitled to draw from the Consolidated Revenue Fund, without further appropriations, in order to discharge its liabilities.

e)  Accounts Receivable

Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.

f)  Tangible capital assets

The Office records as capital assets all expenses providing multi year benefits and having an initial cost of $1,000 or more. Similar items under $1,000 are expensed in the Statement of Operations.

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


Asset Class Amortization Period
Machinery and equipment                       5 years
Informatics hardware                       4 years
Furniture                       5 years
Informatics software                       3 years
Motor vehicles                       7 years
Leasehold improvements Term of the lease

g)  Employee future benefits

i.    Vacation pay and compensatory leave 

Employee vacation pay and compensatory leave are expensed as the benefit accrues to employees under their respective terms of employment.  The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and compensatory leave benefits accruing to employees.   Employee vacation-pay liabilities payable on cessation of employment represent obligations of the Office that are normally funded through future years’ appropriations.

ii.   Employee severance benefits

Employees are entitled to severance benefits, as provided for under labour contracts and conditions of employment. The cost of these benefits is 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.

iii.   Contributions to pension plan

The Office’s eligible employees participate in the Public Service Pension Plan, a multi‑employer plan administered by the Government of Canada.  The Office’s contributions reflect the full cost as employer. This amount is currently based on a multiple of an employee’s contribution and may change over time depending on the experience of the Plan. The Office’s contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Office.  The Office is not currently required to make contributions with respect to any actuarial deficiencies of the Public Service Pension Plan.

iv.   Other benefits

The Government of Canada sponsors a variety of other benefit plans, which cover the employees of the Office.  These include health care, dental and insurance plans for which no costs are charged to the Office.  In these cases, an estimated cost is recorded as an operating expense under the item “Services provided without charge by other government departments”. The Government of Canada also sponsors workers’ compensation benefits available across Canada.  The Office is charged for its share of the annual benefit payments incurred under this Plan.  These amounts represent the Office’s contribution to the Plan and they are recorded by the Office as an expense in the period incurred.  As a participant, the Office has no other obligation to any of these plans in addition to its annual contributions.

h)  Services provided without charge by other government departments and agencies

Services provided without charge by other government departments and agencies are recorded as operating expenses at their estimated cost.  A corresponding amount is reported in the Statement of Equity of Canada.

i)  Contingent liabilities

Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j)  Measurement uncertainty

Preparing financial statements in accordance with Treasury Board policies, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General 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.  Actual results could differ significantly from these estimates. The most significant items where estimates are used are in determining the expected useful life of capital assets and in determining employee severance benefits.  Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3.  Parliamentary Appropriations

The Office 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 Office 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
  2008           2007 
Net cost of operations $ 23,211,472   $ 21,399,802
Add or Less: Items affecting net cost of operations but not affecting appropriations      
      Amortization of tangible capital assets (751,570)   (486,938)
      Services provided without charge by
      other government departments
(2,691,000)   (2,790,000)
      Revenue not available for spending 180   8,117
      Change in vacation pay and
      compensatory leave
2,409   81,259
      Change in employee severance
      benefits
(180,223)   43,052
      Other adjustments 77,428   16,563
  19,668,696   18,271,855
Add :  Items not affecting net cost of operations but  affecting appropriations      
      Prepaid expenses ---   4,203 
      Tangible capital asset acquisitions  676,928   1,556,097
Current year appropriations used $ 20,345,624   $ 19,832,155


b)   Reconciliation of appropriations provided to current year appropriations
       used
  2008           2007
Total Operating Vote $ 19,191,090   $ 18,042,950
Statutory Vote 1,962,335   1,900,849
Spending of proceeds from the disposal of surplus Crown assets 3,864   3,163
Less :      
      Lapsed appropriations (810,677)   (111,931)
      Available for use in subsequent years (988)   (2,876)
Current year appropriations used $ 20,345,624   $ 19,832,155
       
c)   Reconciliation of net cash provided by Government to current year
      appropriations used
  2008           2007
Net cash provided by Government $ 20,854,372   $ 18,529,913
      Revenue not available for spending 180   8,117
      Change in accounts receivable and cash 147,787   (215,144)
      Change in accounts payable and
      accrued liabilities
(737,346)   1,483,058
      Other adjustments 80,631   26,211
Current year appropriations used $ 20,345,624   $ 19,832,155

4.  Tangible Capital Assets


Cost March 31, 2007 Additions   Disposals   March 31, 2008
         
Machinery and equipment $ 442,786 $ 3,889 $ --- $ 446,675
Informatics hardware 2,488,318 355,936 --- 2,844,254
Furniture 918,889 33,308 --- 952,197
Informatics software 495,396 2,142 --- 497,538
Motor vehicles 30,630 --- --- 30,630
Leasehold improvements 953,940 281,653 --- 1,235,593
  $ 5,329,959 $ 676,928  $ --- $ 6,006,887
         
Accumulated amortization March 31, 2007 Amortization Disposals March 31, 2008
         
Machinery and equipment $ 207,458 $ 67,475 $ --- $ 274,933
Informatics hardware 1,275,916 379,036 --- 1,654,952
Furniture 539,666 145,614 --- 685,280
Informatics software 412,044 34,409 --- 446,453
Motor vehicles 729 4,376 --- 5,105
Leasehold improvements 362,436 120,660 --- 483,096
  $ 2,798,249 $ 751,570  $ --- $ 3,549,819
         
Net Book Value March 31, 2007     March 31, 2008
         
Machinery and equipment $ 235,328     $ 171,742
Informatics hardware 1,212,402     1,189,302
Furniture 379,223     266,917
Informatics software 83,352     51,085
Motor vehicles 29,901     25,525
Leasehold improvements 591,504     752,497
  $ 2,531,710     $ 2,457,068

5.  Employee Future Benefits

a)  Accrued employee severance benefits

The Office 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
       
Accrued benefit obligation, beginning of the year $ 2,296,273   $ 2,339,325
Expense for the year 531,481   511,169
Benefits paid during the year (351,258)   (554,221)
Accrued benefit obligation, end of the year $ 2,476,496    $ 2,296,273

b)  Pension benefits

The Office’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 the Office contribute to the cost of the Plan. The 2007–08 expense amounts to $1,430,542 ($1,400,926 in 2006–07), which represents approximately 2.13 times the contributions by employees. 

The Office’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.

c)  Other benefits

The employees of the Office are also covered by workers’ compensation benefits across Canada.  This plan is managed by Human Resources and Social Development Canada (HRSDC).  As plan manager, HRSDC has authority to charge to the Office its share of the annual workers’ compensation benefit payments incurred under the plan. These amounts are expensed by the Office and charged to appropriations when the Office becomes liable to HRSDC in the year the amounts are billed.

In April 2002, the death of an employee resulted in the payment of benefits under the workers’ compensation death benefit plan. The total cost is expected to be approximately $676,000 and is payable under the plan by the Office to HRSDC, over the 13-year period following the death. The Office’s current year expense in relation to this claim amounts to $41,188 ($39,167 in 2007).  It is expected that benefits totalling approximately $309,000 will be paid over the next 9 years by the Plan and that the Office in accordance with Treasury Board Policy will pay these amounts, as well as administration fees, to HRSDC. These amounts will be both expensed and charged to appropriations by the Office in the year they are billed by HRSDC.

6.  Related Party Transactions

The Office is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations.  The Office enters into transactions with these entities in the normal course of business.

During the year, the Office had net expenses of $5,468,305 ($5,838,678 in 2007) from transactions in the normal course of business with other Government departments, agencies and Crown corporations.  These expenses include services provided without charge of $2,691,000 ($2,790,000 in 2007) as described in Note 7.

7.  Services Provided Without Charge by Other Government Departments ($ 000)

During the year, the Office received services that were obtained without charge from other government departments and agencies.  These are recorded at their estimated costs in the financial statements as follows:


     2008           2007
       
Public Works and Government Services Canada –
accommodation
$ 1,735    $ 1,770 
Treasury Board Secretariat - employer’s share of insurance premiums 837    918 
Office of the Auditor General of Canada - audit services 112    95 
Public Works and Government Services Canada - payroll services  
Total $ 2,691    $ 2,790 

8.  Contingent Liabilities

In the normal course of its operations, the Office may become involved in various legal actions.  Some of these legal actions may result in actual liabilities when one or more future events occur.  To the extent that the future event is likely to occur, and a reasonable estimate of the loss can be made, a liability is accrued and an expense recorded in the financial statements. No contingent liabilities relating to the Office of the Commissioner of Official Languages are recognized in the Office's financial statements for the fiscal year ended March 31, 2008.

9.  Contractual Obligations

The Office has commitments arising in the normal course of operations for future years.  These obligations include occupancy leases and equipment rental, as well as the obligation for workers’ compensation death benefits disclosed in Note 5 c). Significant contractual obligations that can be reasonably estimated are summarized as follows:


Fiscal year              ($000)
2008-2009   $113
2009-2010   107
2010-2011   107
2011-2012   107
2012 until 2017   279
Total   $713

10.  Comparative Figures

Certain comparative figures have been reclassified to conform to the presentation adopted in the current year.