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SECTION III: SUPPLEMENTARY INFORMATION

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

	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
Render decisions and issue licences	2,342	2,364	2,597	2,597	2,666	2,521
Total	2,342	2,364	2,597	2,597	2,666	2,521
Total	2,342	2,364	2,597	2,597	2,666	2,521
Less: Non-respendable revenue	-	-	-	-	-	-
Plus: Cost of services received without charge	348	333	321	321	321	321
Net cost of Department	2,690	2,697	2,918	2,918	2,987	2,842
Full Time Equivalents *	15	15				17

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008
		Main Estimates	Planned Spending	Total Authorities	Actual
50	Program expenditures	2,295	2,295	2,431 *	2,286
(S)	Contributions to employee benefit plans	302	302	235	235
	Total	2,597	2,597	2,666	2,521

* This amount includes the 5% carry forward of $113,700 from the 2006-2007 budget and $22,000 for collective bargaining agreements.

ANNEX A

2007-2008 FINANCIAL STATEMENTS (Unaudited)

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 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.

Stephen J. Callary Deputy Head

Claude Majeau Senior Financial Officer

Copyright Board of Canada Statement of Operations (unaudited) For the year ended March 31 (in dollars)
	2008	2007
Operating Expense
Salaries and employee benefits	1,890,901	1,691,440
Professional and special services	426,917	386,837
Accommodation	216,260	230,000
Travel	154,814	168,794
Information Services	56,007	56,099
Rental	42,150	63,295
Telecommunication Services	42,003	46,224
Utitlities, materials and supplies	36,524	44,288
Informatics equipment and software	12,843	18,932
Repair and maintenance	12,499	2,314
Amortization	11,039	11,039
Postage and freight	7,861	8,672
Other	4,657	505
Net cost of operations	2,834,475	2,728,439
The accompanying notes form an integral part of these financial statements

Copyright Board of Canada Statement of Financial Position (unaudited) At March 31 (in dollars)
ASSETS Financial assets	2008	2007
Accounts receivable (Note 8)	69,276	84,572
Non-financial assets    Tangible capital assets (Note 5)	75,153	86,192
TOTAL	144,429	170,764
Liabilities
Accounts payable and accrued liabilities (Note 4)	226,054	114,194
Vacation pay and compensatory leave	123,317	146,546
Employee future benefits (Note 6)	197,211	179,001
Total liabilities	546,582	439,741
Equity of Canada	-402,153	-268,977
TOTAL	144,429	170,764
Contractual obligations (Note 7)
The accompanying notes form an integral part of these financial statements

Copyright Board of Canada Statement of Equity of Canada (unaudited) For the year ended March 31 (in dollars)
	2008	2007
Equity of Canada, beginning of year	-268,977	-239,059
Net cost of operations	-2,824,475	-2,728,439
Current year appropriations used (Note 3)	2,250,656	2,363,564
Refund of previous year expenditures	-13,244	-76
Change in net position in the Consolidated Revenue Fund (Note 3)	-127,156	2,469
Services provided without charge (Note 8)	321,043	332,564
Equity of Canada, end of year	-402,153	-268,977
The accompanying notes form an integral part of these financial statements

Copyright Board of Canada Statement of Cash Flow (unaudited) For the year ended March 31
(in dollars)	2008	2007
Operating activities    Net cost of operations	2,834,475	2,728,439
Non cash items:
Services provided without charge (Note 8)	-321,043	-332,564
Amortization of tangible capital assets (Note 5)	-11,039	-11,039
Variation in Statement of Financial Position:
Increase in liabilities	-106,841	-13,098
Decrease in receivables	-15,296	-5,781
Cash used by operating activities	2,380,256	2,365,957
Financing activities
Net cash provided by Government of Canada	2,380,256	2,365,957
The accompanying notes form an integral part of these financial statements

Copyright Board of Canada

Notes to the Financial Statements (unaudited)

1 - Authority and Objectives

The Copyright Board of Canada is an independent administrative agency which has been conferred department status for purposes of the Financial Administration Act. Its mandate stems from the Copyright Act.

The Copyright Board of Canada plays a major role in the collective administration of copyright, particularly where the public performance and the communication to the public, by telecommunication, of musical works, as well as the retransmission of distant radio and television signals are concerned. The Board plays a surveillance role in three ways with respect to collective societies which administer very large repertoires of work created by a multitude of originators both in Canada and in other countries: as an economic regulatory body, by approving tariff proposals by the various copyright collective societies; as an arbitrator in private disputes; and as an arbitrator of the public interest.

The Board's principal mandate is to set royalties which are fair and reasonable for both copyright owners and the users of copyright-protected works, as well as issuing non-exclusive licences authorizing the fully legal use of works when the copyright owner cannot be located.

The Board reports annually to Parliament through the Minister of Industry.

2 - Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with accounting standards issued by the Treasury Board of Canada Secretariat which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations -- the Department 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 two bases of reporting.

(b) Net Cash Provided by Government -- The department operates within the Consolidated Revenue Fund (CRF). The CRF 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 the Government and appropriations used in the year, excluding the amount of non-respendable revenue recorded by the department. It results from timing between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues -- Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

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

• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
  
• Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

I. 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.

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) Account receivables 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 and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

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

	Asset	Amortization period
	Machinery and Equipment	10 years

(i) Measurement uncertainty - The preparation of these financial statements in accordance with accounting standards issued by the Treasury Board of Canada Secretariat 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 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

The Department 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 between net results of operations and appropriations are reconciled in the following tables.

3a) Reconciliation of net cost of appropriations
to current year appropriations used

(in dollars)	2008	2007
Net cost of operations	2,834,475	2,728,439
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services received without charge (Note 8)	-321,043	-332,564
Employee severance benefits (Note 6)	-18,210	1,079
Amortization of tangible capital assets (Note 5)	-11,039	-11,039
Vacation pay and compensatory leave	23,229	-22,427
Refund of previous year expenditures	13,244	76
	-313,819	-364,875
Current year appropriations used	2,520,656	2,363,564

3b) Appropriations provided and used

(in dollars)	2008	2007
Vote 50 - Operating expenditures	2,430,700	2,407,300
Statutory Amounts	235,047	223,607
Less:
Lapsed appropriations: Operating	-145,091	-267,343
Current year appropriations used	2,520,656	2,363,564

3c) Reconciliation of net cash provided by Government
to current year appropriations used
(in dollars)

	2008	2007
Net cash provided by Government of Canada	2,380,256	2,365,957
Refund of previous year expenditures	13,244	76
Change in net position in the Consolidated Revenue Fund
Variation in accounts payable and accrued liabilities	111,860	-8,250
Variation in accounts receivable and advances	15,296	5,781
Other adjustments	127,156	-2,469
Current year appropriations used	2,520,656	2,363,564

 

4. Accounts payable and accrued liabilities
(in dollars)

	2008	2007
External
Accrued liabilities	175,939	62,975
Accrued salaries and wages	41,863	30,082
Total External	217,802	93,057
Other Federal Government departments	8,252	21,137
Total Accounts payable and accrued liabilities	226,054	114,194

5. Tangible Capital Assets
(in dollars)

	Cost		Accumulated amortization			2008	2007
Capital asset class	Opening balance	Closing balance	Opening balance	Amortization	Closing balance	Net book value	Net book value
Machinery and equipment	158,827	158,827	72,635	11,039	83,674	75,153	86,192
Total	158,827	158,827	72,635	11,039	83,674	75,153	86,192

* Amortization expense for the year ended March 31, 2008 is $11,039 (2007: $11,039)

6. 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 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 department contribute to the cost of the Plan. The 2007-2008 expense amounts to $235,047 ($223,231 in 2006-2007), which represents approximately 2.1 (2.2 in 2006-2007) time 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) 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:

(in dollars)	2008	2007
Accrued benefit obligation, beginning of year	179,001	180,080
Expense for the year	18,331	10,740
Benefits paid during the year	-121	-11,819
Accrued benefit obligation, end of year	197,211	179,001

7. Contractual Obligations

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

(in dollars)	2009	2010	2011	2012	2013 and thereafter	Total
Acquisition of goods and services	375,077	6,353	5,417	4,748	812	392,407
Employer contributions	224,674	0	0	0	0	224,674
Total	599,751	6,353	5,417	4,478	812	617,081

8. Related party transactions

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 provided without charge:

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

Services Provided without charge (in dollars)	2008	2007
Accommodation	216,260	230,000
Employer's contribution to the insurance plans	104,783	102,564
Total	321,043	332,564

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) Receivables outstanding at year-end with related parties:

(in dollars)	2008	2007
Receivables from other Federal Government departments	69,276	84,572

9. Comparative Information

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

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