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Supplementary Information

In this section:

• Table 1: Comparison of Planned to Actual Spending (including FTEs)
• Table 2: Voted and Statutory Items
• Table 3: Sources of Respendable and Non-Respendable Revenue
• Table 4-A: User Fees Act
• Table 4-B: Policy on Service Standards for External Fees
• Table 5: Sustainable Development Strategy
• Table 6: Response to Parliamentary Committees and External Audits
• Table 7: Internal Audits and Evaluations
• Table 8: Financial Statements

 

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

($000s)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Total Actuals
Effective and Efficient Environmental Assessment	17,578.5	18,372.1	16,540.0	16,540.0	25,132.4	18,276.8
Less: Non-respendable revenue	18.4	261.8	—	—	168.0	168.0
Plus: Cost of services received without charge	2,886.7	3,179.5	3,316.0	3,316.0	3,054.4	3,054.4
Total Agency Spending	20,446.8	21,289.8	19,856.0	19,856.0	28,354.8	21,499.2
Full-time Equivalents	135.0	148.0	155.0	155.0	177.0	141.0

This table provides a summary of resource levels for the last three years, as well as the evolution of the 2007-2008 resources. The fluctuation in total resources over the years is the result of funding changes in various initiatives, such as the Canadian Environmental Assessment Act, the Northern Gas Pipeline Project, collective bargaining and cost of services received without charge. The increase in authorities for 2007-2008 is mainly a result of the Budget 2007 announcement establishing an initiative to improve Canada's regulatory framework for major natural resource projects. The Agency also received funding to address Aboriginal consultation in environmental assessment processes and for review panel support and evaluation of the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals. The variance between authorities and actuals is mainly the result of funding for initiatives released late in the fiscal year; therefore actual expenditures reflect only a partial year's worth of activities and costs.

 

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 ($000s)
		Main Estimates	Planned Spending	Total Authorities	Total Actuals
15	Program expenditures	14,844.0	14,844.0	23,403.3	16,548.0
(S)	Contributions to employee benefit plans	1,696.0	1,696.0	1,728.8	1,728.8
(S)	Spending of proceeds from the disposal of surplus Crown assets	—	—	0.3	—
	Total	16,540.0	16,540.0	25,132.4	18,276.8

This table presents resources that have been voted to the Agency by Parliament. It should be noted that Parliament approves the voted funding whereas the statutory information is provided for information purposes. Explanation of variance in resource levels can be found in Table 1.

 

Table 3: Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($000s)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Revenue	Total Authorities	Total Actuals
Effective and Efficient Environmental Assessment
Cost recovery for environmental assessment services	4,167.7	6,305.1	3,351.0	3,351.0	7,751.0	6,027.9
Cost recovery for publications, training and education materials (federal)	85.8	120.6	75.0	75.0	100.0	109.8
Cost recovery for publications, training and education materials (external)	153.3	166.7	75.0	75.0	150.0	147.9
Total Respendable Revenue	4,406.8	6,592.4	3,501.0	3,501.0	8,001.0	6,285.6
Non-Respendable Revenue
($000s)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Revenue	Total Authorities	Total Actuals
Effective and Efficient Environmental Assessment	18.4	261.8	—	—	168.0	168.0
Total Non-Respendable Revenue	18.4	261.8	—	—	168.0	168.0
Total Revenues	4,425.2	6,854.2	3,501.0	3,501.0	8,169.0	6,453.6

The Agency has authority to recover costs for environmental assessment services, publications, training and education material. However, it should be noted that the use of this authority is dependent on the level of review panel activity that is eligible for cost recovery. As such, the level of revenue tends to fluctuate from year to year. The Agency has received additional authority in 2007-2008.

For supplementary information on the Agency's sources of respendable and non-respendable revenue, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

 

Table 4-A: User Fees Act

For supplementary information on the Agency's User Fees, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

 

Table 4-B: Policy on Service Standards for External Fees

For supplementary information on the Agency's Service Standards for External Fees, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

 

Table 5: Sustainable Development Strategy

SDS Departmental Goal:
Federal SD Goal(s) including GGO goals, if applicable: To promote the full and meaningful application of a results-oriented federal environmental assessment framework.
Department's Expected Results for 2007-2008	Supporting Performance Measure(s)	Achieved SDS Departmental Results for 2007-2008
Governance for Sustainable Development: Federal SD Goal VI	Improved understanding of how the various components of an effective and efficient environmental assessment framework should work together, and of the strengths and weaknesses of the current framework in supporting integrated decision making.	Advancing the science and practice of strategic environmental assessment: The Agency supported the work of the Minister's Regulatory Advisory Committee Subcommittee on SEA as it undertook its mandate to define the broader context for SEA, to explore meaningful linkages between strategic and project-level EA, and to examine the role of the public and Aboriginal groups in SEA. The Agency funded a research project through the Research and Development Program, which advances the science and practice of SEA, entitled Atikamekw Nation Territorial Planning: The Role of Strategic Environmental Assessment in Sustainable and Adaptive Joint Management of Forest Area. The project is underway and the report is expected in 2009. The Agency continued to support the research project, funded in 2006, entitled Extending Models and Practice of Strategic Environmental Assessment in the Regional Municipality of York, Ontario, Canada, which is expected to be finalized in 2008. Advancing the science and practice of regional-scale environmental assessment: The Agency has been working with its partners to foster a better understanding and to help generate consensus on common principles for regional-scale environmental assessment. In March, the Agency and Fisheries and Oceans Canada jointly organized a federal workshop on regional environmental assessment (REA). The Agency also actively participated in work underway through the CCME to develop a common national understanding and conceptual framework for regional strategic environmental assessment. Efforts were also made to explore possibilities for pilot REAs offshore Nova Scotia and in the Beaufort Basin.
	A timelier, coordinated, and consistent approach to the environmental assessment process of major projects is applied.	Promoting and ensuring the implementation of initiatives, which improve the coordination among stakeholders in federal project environmental assessments: Under Agency leadership, a Memorandum of Understanding pursuant to the 2005 Cabinet Directive on Implementing the Canadian Environmental Assessment Act was completed and ratified by five key departments. The Agency continued to chair and support the work of the Environmental Assessment Project Committee (EAPC), which aims to facilitate a whole-of-government approach to the preparation of high-quality environmental assessments in a predictable, certain and timely manner. Gaining a greater understanding of the effectiveness of the Agency and its supporting legislative and policy tools in achieving coordination among stakeholders: The Agency has learned from its experiences as Federal Environmental Assessment Coordinator for a number of projects and has gathered data to track improvements in coordination.
	Improved knowledge across government of how to engage the public, including Aboriginal peoples, in high-quality environmental assessments.	Building knowledge and capacity internally and throughout the federal government in the area of engaging the public and Aboriginal peoples in environmental assessment: The Agency developed guidance on meaningful public participation, and policy and skill-building training for engagement of Aboriginal peoples in the federal EA process. Specific examples of this include: the development of a Guide for Meaningful Public Participation in Environmental Assessments under the Canadian Environmental Assessment Act; the development of a course entitled Engaging the Aboriginal Peoples in Environmental Assessment; and the delivery of a number of other training sessions and workshops for both internal and external audiences, dealing with public or Aboriginal groups' engagement in federal environmental assessment. The Agency worked with other federal departments to develop the Aboriginal Consultation and Accommodation: Interim Guidelines for Federal Officials to Fulfill the Legal Duty to Consult, released in February 2008. The Agency has been a key player in the development of policy and corresponding operational guidance for the engagement of Aboriginal peoples in the EA process for projects under the Major Project Management Office initiative. Through its Research and Development Program, the Agency funded two proposals aimed at providing new understanding and approaches for the meaningful involvement of Aboriginal peoples in environmental assessment. The projects, Effective Engagement of Aboriginal Peoples in Environmental Assessment: A Case Study of Treaty 8 Nations and Atikamekw Nation Territorial Planning: The Role of Strategic Environmental Assessment in Sustainable and Adaptive Joint Management of Forest Area, are underway and are expected to be finalized in 2009.
	Regular and consistent training in sustainable development tools for planners and analysts across the government of Canada.	Collaborating with other federal departments and agencies to increase awareness and application of the principles of sustainable development and the sustainable development tools: The Agency has joined other government departments and the Canada School of Public Service to design and support the delivery of a new Government of Canada Sustainable Development course (#727). The first French and English sessions, held in February and March respectively, were very well attended. The Agency is also a member of the interdepartmental Awareness, Communication and Training Working Group of the Interdepartmental Network on Sustainable Development Strategies.
	Identification of areas requiring improvement in the application of the Cabinet Directive and the Act.	Evaluating the effectiveness of the SEA and project EA processes: The Agency, in collaboration with the Privy Council Office, is leading a government-wide evaluation of the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals. Terms of reference were finalized and a process was established to secure an independent, third-party evaluator. The Agency's quality assurance unit has been working to identify and to analyze aspects of the current EA process that are most likely to lead to favourable environmental outcomes.
	Identification of opportunities to integrate the project-review process across jurisdictions.	Examining how the Agency can move toward better integration of project review at the national level: Through the Canadian Council of Ministers of the Environment, the Agency has worked with other jurisdictions to identify opportunities to improve the coordination of assessments for projects subject to both provincial/territorial and federal environmental assessment.
	Themes of research and development reflect issues and needs addressed in the Agency's sustainable development strategies.	Ensuring that the research areas promoted and encouraged by the Agency are consistent with, and supportive of, the goal and objectives set out in the Agency's sustainable development strategies: The Agency has used the sustainable development strategy to guide the selection of future research priority areas for the Research and Development Program. Proposed priority areas were assessed against a number of criteria, including the degree of congruence and relevance to program objectives and the Agency's priorities, as well as their ability to contribute to the development and promotion of sound environmental assessments.

For supplementary information on the Agency's Sustainable Development Strategy, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

 

Table 6: Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

During the reporting period, the Agency did not table any responses to Parliamentary Committee reports.

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

The Agency participated in a follow-up audit of the government's performance in implementing the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, completed by the Commissioner of the Environment and Sustainable Development (CESD) during the reporting period. The Agency also participated in a CESD audit initiated during the reporting period of selected commitments contained in its 2007-2009 Sustainable Development Strategy. No recommendations of the Auditor General or the CESD were addressed specifically to the Agency.

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada (PSC) or the Office of the Commissioner of Official Languages)

Government-wide Audit of Executive (EX) Appointments by the Public Service Commission The objective of this government-wide audit is to determine whether EX appointment activities comply with the Public Service Employment Act and other applicable legislation and policies, and with the instrument of delegation signed with the Public Service Commission. The audit covers the period starting January 1, 2006 and ending December 31, 2006. The Public Service Commission plans to finalize this audit during the 2008-2009 fiscal year. www.psc-cfp.gc.ca/adt-vrf/cntadt-vrfact-eng.htm

For supplementary information on the Agency's response to Parliamentary Committees and External Audits, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

 

Table 7: Internal Audits and Evaluations

Internal Audits (current reporting period)

During the reporting period, the Agency did not undertake any audits.

Evaluations (current reporting period)

During the reporting period, the Agency did not complete any evaluations.

For supplementary information on the Agency's Internal Audits and Evaluations, please visit: www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

 

Table 8: Financial Statements

Canadian Environmental Assessment Agency

Financial Statements

For the Year Ended March 31, 2008

(Unaudited)

 

Canadian Environmental Assessment Agency

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements of the Canadian Environmental Assessment Agency for the year ended March 31, 2008 and all information contained in this report rests with the Agency's 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 Agency's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Agency'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 Agency have not been audited.

___Original signed by______		___Original signed by______
Peter Sylvester		Richard Gagné
President		Senior Financial Officer
Ottawa, Canada
August 08, 2008

 

Canadian Environmental Assessment Agency

Statement of Financial Position (Unaudited)

At March 31

(in dollars)

	2008	2007
ASSETS
Financial assets
Accounts receivable and advances (Note 4)	1,761,060	1,685,469
Total financial assets	1,761,060	1,685,469
Non-financial assets
Tangible capital assets (Note 5)	216,686	11,247
Total non-financial assets	216,686	11,247
TOTAL	1,977,746	1,696,716
LIABILITIES
Accounts payable and accrued liabilities (Note 6)	2,639,196	2,838,598
Vacation pay and compensatory leave	606,586	616,707
Employee severance benefits (Note 7)	2,189,925	2,335,215
Total liabilities	5,435,707	5,790,520
Equity of Canada	(3,457,961)	(4,093,804)
TOTAL	1,977,746	1,696,716

Contingent liabilities (Note 8)

Contracted obligations (Note 9)

The accompanying notes and schedules form an integral part of these statements.

 

Canadian Environmental Assessment Agency

Statement of Operations (Unaudited)

For the Year Ended March 31

(in dollars)

	2008	2007
Transfer payments
Non-profit organizations	630,111	729,694
Other levels of government	195,500	195,500
First Nations	144,105	814,192
Industry	50,000	70,000
Other countries and international organizations	10,269	5,000
Individuals	0	407
Total transfer payments	1,029,985	1,814,793
Operating Expenses
Salaries and employee benefits	13,879,281	14,763,557
Professional and special services	6,460,089	6,191,270
Travel and relocation	2,187,503	2,332,312
Rentals	2,118,985	2,418,018
Information	565,274	339,476
Telecommunications	327,300	287,906
Furniture and equipment	312,782	142,478
Utilities, materials and supplies	107,288	188,832
Postage	62,105	51,869
Repairs and maintenance	22,888	11,330
Other	13,224	6,258
Amortization	1,406	1,406
Total operating expenses	26,058,125	26,734,712
Total Expenses	27,088,110	28,549,505
Revenues
Environmental assessment and training services	6,350,151	7,230,419
Miscellaneous revenues	1,753	345
Total Revenues	6,351,904	7,230,764
Net Cost of Operations	20,736,206	21,318,741

The accompanying notes and schedules form an integral part of these statements.

 

Canadian Environmental Assessment Agency

Statement of Equity of Canada (Unaudited)

At March 31

(in dollars)

	2008	2007
Equity of Canada, beginning of year	(4,093,804)	(4,434,820)
Net cost of operations	(20,736,206)	(21,318,741)
Current year appropriations used (Note 3)	18,276,848	18,372,079
Revenue not available for spending	(234,181)	(924,311)
Change in net position in the Consolidated Revenue Fund (Note 3)	274,993	1,032,487
Services received without charge (Note 10)	3,054,389	3,179,502
Equity of Canada, end of year	(3,457,961)	(4,093,804)

The accompanying notes and schedules form an integral part of these statements.

 

Canadian Environmental Assessment Agency

Statement of Cash Flow (Unaudited)

For the Year Ended March 31

(in dollars)

	2008	2007
Operating Activities
Net cost of operations	20,736,206	21,318,741
Non-cash items:
Services provided without charge (Note 10)	(3,054,389)	(3,179,502)
Amortization of tangible capital assets (Note 5)	(1,406)	(1,406)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (Note 4)	75,591	648,806
Decrease (increase) in liabilities	354,813	(306,384)
Cash used by Operating Activities	18,110,815	18,480,255
Capital Investment Activities
Acquisition of tangible capital assets	206,845	0
Cash used by capital investment activities	206,845	0
Financing Activities
Net cash provided by Government of Canada	18,317,660	18,480,255

The accompanying notes and schedules form an integral part of these statements.

 

Canadian Environmental Assessment Agency

Notes to the Financial Statements (Unaudited)

For the Year Ended March 31, 2008

1. Authority and Objectives

The Canadian Environmental Assessment Agency (the Agency) was established in 1995 under the Canadian Environmental Assessment Act. The Agency is mandated to provide high-quality federal environmental assessments that promote sustainable development. The Agency achieves this objective by:

  a) providing administrative and advisory support for environmental assessment review panels;

  b) promoting uniformity and harmonization of environmental assessment activities across Canada at all levels of government; and

  c) providing opportunities for meaningful public participation in the federal environmental assessment process.

The Agency has one core program activity which is "effective and efficient environmental assessment" which serves as the basis for its mission. This core program activity is supported by Corporate Services which provides modern, timely and responsive services.

In addition, the Agency has obligations under the Canada-Wide Accord on Environmental Harmonization and bilateral agreements with the provincial governments as well as international agreements covering environmental assessments.

The Agency is listed in Schedule I.1 of the Financial Administration Act and reports to Parliament through the Minister of the Environment.

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

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

  b) Net Cash Provided by Government — The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency 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 the Agency and other federal government departments.

  c) Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Agency. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

  d) Revenues:

• Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
• 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 an accrual basis:

• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services provided without charge by other government departments are recorded as operating expenses at their estimated cost.

  f) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the total Agency obligation to the Plan. Current legislation does not require the Agency to make contributions for any actuarial deficiencies of the Plan.
• 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 are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

  h) 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.

  i) Foreign currency transactions — Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using the rate of exchange in effect on March 31.

  j) 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.

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

Asset class	Sub-asset class	Amortization period
Machinery and equipment	Videoconferencing equipment	10 years
Other equipment (including furniture)	Furniture and fixtures	10 years
Assets under construction	Machinery	Once in service, 10 years

  k) Measurement uncertainty — The preparation of 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 could affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these financial statements, management believes the estimates and assumptions to be reasonable. The most significant estimated items are employee severance benefits, allowances for employee vacation and compensatory 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

The Agency 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 Agency 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
	(in dollars)
Net cost of operations	20,736,206	21,318,741
Adjustments for items affecting net cost of operations but not affecting appropriations
Add (Less):
Services provided without charge (Note 10)	(3,054,389)	(3,179,502)
Amortization of tangible capital assets (Note 5)	(1,406)	(1,406)
Revenue not available for spending	234,181	924,311
Vacation pay and compensatory leave	10,121	(154,663)
Severance Pay	145,290	—
Legal expenses charged by Justice Canada	0	(535,402)
Other	0	0
	18,070,003	18,372,079
Adjustment for items not affecting net cost of operations but affecting appropriations
Add (Less):
Acquisitions of tangible capital assets	206,845	0
Current year appropriations used	18,276,848	18,372,079

 

  b) Appropriations provided and used

	Appropriations Provided
	2008	2007
	(in dollars)
Vote 15 — Program expenditures	23,403,326	17,614,665
Statutory amounts	1,728,818	1,909,930
Less:
Lapsed appropriations	(6,855,296)	(1,152,516)
Current year appropriations used	18,276,848	18,372,079

 

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

	2008	2007
	(in dollars)
Net cash provided by Government	18,317,660	18,480,255
Revenue not available for spending	234,181	924,311
Change in net position in the Consolidated Revenue Fund
Variation in accounts receivable and advances	(75,591)	(648,806)
Variation in accounts payable and accrued liabilities	(199,402)	(145,559)
Variation in employee severance benefits	0	247,312
Legal expenses charged by Justice Canada	0	(535,402)
Other adjustments	0	49,968
	(274,993)	(1,032,487)
Current year appropriations used	18,276,848	18,372,079

 

4. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

	2008	2007
	(in dollars)
Receivables from other Federal Government departments and agencies	213,739	39,482
Receivables from external parties	1,545,521	1,643,187
Employee advances	1,800	2,800
Total	1,761,060	1,685,469

 

5. Tangible Capital Assets

(in dollars)

Cost					Accumulated amortization
Capital asset class	Opening balance	Acquisitions	Disposals and write-offs	Closing balance	Opening balance	Amortization	Disposals and write-offs	Closing balance	2008 Net book value	2007 Net book value
Machinery and equipment		188,656		188,656	—	—	—	—	188,656	—
Other equipment (including furniture)	14,059	—	—	14,059	2,812	1,406	—	4,218	9,841	11,247
Assets under construction	—	18,189	—	18,189	—	—	—	—	18,189	—
Total	14,059	206,845	—	220,904	2,812	1,406	—	4,218	216,686	11,247

Amortization estimated expense for the year ended March 31, 2008 is $1,406 (2006-2007 $1,406).

 

6. Accounts Payable and Accrued Liabilities

The following table presents details of accounts payable and accrued liabilities:

	2008	2007
	(in dollars)
Payables to other Federal Government departments and agencies	443,639	341,249
Payables to external parties	1,693,683	2,003,023
Accrued salaries	501,874	494,326
Total	2,639,196	2,838,598

7. Employee Benefits

  a) Pension benefits: The Agency'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 Agency contribute to the cost of the Plan. The 2007-08 expense amounts to $1,260,309 ($1,407,619 in 2006-07), which represents approximately 2.1 times (2.2 times in 2006-07) the contributions by employees.

The Agency'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 Agency 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 dollars)
Accrued benefit obligation, beginning of year	2,335,215	2,087,903
Expense for the year	(63,137)	364,768
Benefits paid during the year	(82,153)	(117,456)
Accrued benefit obligation, end of year	2,189,925	2,335,215

8. Contingent Liabilities — Claims and Litigation

In the normal course of its operations, the Agency becomes involved in various legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded on the Government's consolidated financial statements. At this time, the Agency has no estimated liability to accrue and no expense to record in the Government's consolidated financial statements

9. Contractual Obligations

The nature of the Agency's activities can result in some multi-year contracts and obligations whereby the Agency 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	Total
Transfer payments	660,146	30,000	—	—	—	690,146
Professional services	621,311	73,227	45,980	—	—	740,518
Operating leases	245,526	112,754	8,017	8,017	8,017	382,331
Total	1,526,983	215,981	53,997	8,017	8,017	1,812,995

10. Related Party Transactions

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

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

	2008	2007
	(in dollars)
Accommodation	1,665,887	1,554,311
Employer's contribution to the health and dental insurance plans	802,292	824,373
Legal services provided by the Department of Justice	586,210	800,818
Total	3,054,389	3,179,502

The Agency also obtains selected financial services, materiel management, informatics and compensation and benefits services under a shared services agreement with Environment Canada.

In addition, 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 and audit services provided by the Office of the Auditor General, are not included as an expense in the Agency's Statement of Operations.

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