ARCHIVED - Office of the Commissioner of Lobbying of Canada

• Previous Page
• Table of Contents
•  

This page has been archived.

Section III: Supplementary Information

Departmental Link to Government of Canada Outcome Areas

Strategic Outcome: Transparency and accountability in the lobbying of public office holders contribute to confidence in the integrity of government decision-making.
	Actual Spending 2007-2008 (in $000)			Alignment to Government of Canada Outcome Areas
	Budgetary	Non-budgetary	Total
Registration of Lobbyists	2 489	-	2 489	All Government of Canada Outcome Areas
Education and Research	881	-	881	All Government of Canada Outcome Areas
Reviews and Investigations	817	-	817	All Government of Canada Outcome Areas

Parliamentarians intended the Lobbyists Registration Act (Act) to contribute in an important way to confidence in the integrity of government decision-making. The Act provides for a regime of transparency and accountability for those who communicate with public office holders with respect to a wide range of government decisions on legislation, regulations, policies, programs, grants, contributions and other areas of importance. Through administration and enforcement of federal lobbying legislation during the reporting period, the ORL has contributed to all Government of Canada Outcome Areas.

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

(in $000)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Total Actuals
Registration of Lobbyists	-	1 460	1 425	2 395	2 714	2 489
Education and Research	-	744	899	899	985	881
Reviews and Investigations	-	899	1 039	1 039	899	817
Total	-	3 103	3 363	4 333	4 598	4 187
Less: Non-respendable revenue	-	755	N/A	2	N/A	1
Plus: Cost of services received without charge	-	108	N/A	145	N/A	376
Total Departmental Spending	-	2 456	N/A	4 476	N/A	4 562
Full-time Equivalents	-	20	N/A	24	N/A	22

Note: On February 6, 2006, the Office of the Registrar of Lobbyists was designated as a department for the purposes of the Financial Administration Act and was transferred from Industry Canada to the Treasury Board portfolio as an independent organization. Consequently, Actuals for 2005-2006 are included in Industry Canada's Actuals for that period.

Table 2: Voted and Statutory Items (in $000)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008
		Main Estimates	Planned Spending	Total Authorities	Total Actuals
Vote 30	Program expenditures	3 026	3 996	4 297	3 886
(S)	Contributions to employee benefit plans	337	337	301	301
	Total	3 363	4 333	4 598	4 187

Table 3: Sources of Non-Respendable Revenue

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

Table 4A: User Fees Act

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

Table 4B: Policy on Service Standards for External Fees

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

Table 5: Travel Policies

The Office of the Registrar of Lobbyists follows the Treasury Board of Canada Secretariat (TBS) Travel Directive, Rates and Allowances and the TBS Special Travel Authorities outlining travel provisions pertaining to, among others, deputy ministers, and Governor-in-Council appointees.

Table 6: Financial Statements of the Office of the Registrar of Lobbyists (unaudited)

ORL's financial statements are prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note 3 of the financial statements reconciles these two accounting methods.

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 the management of the Office of the Registrar of Lobbyists (ORL). 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 judgement 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 ORL's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the ORL'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 Office of the Registrar of Lobbyists have not been audited.

Ottawa, Ontario

August 19, 2008

Office of the Registrar of Lobbyists
Statement of Operations (unaudited)
For the year ended March 31, 2008

(in dollars)	2008	2007
Expenses (Note 4)
Registration of Lobbyists	$1 729 539	$1 014 498
Education and Research	1 005 362	908 330
Reviews and Investigations under the Lobbyists Registration Act and the Lobbyists' Code of Conduct	882 671	1 224 510
Total Expenses	3 617 572	3 147 338
Revenues
Registration of Lobbyists	1 011	750
Education and Research	10	5
Total Revenues	1 021	755
Net cost of operations	$3 616 551	$3 146 583

The accompanying notes form an integral part of these financial statements

Office of the Registrar of Lobbyists
Statement of Financial Position (unaudited)
At March 31, 2008

(in dollars)	2008	2007
Assets
Financial Assets
Accounts receivable and advances (Note 5)	$68 145	-
Total financial assets	68 145	-
Non-Financial Assets
Tangible capital assets (Note 6)	2 057 220	$1 068 882
Total non-financial assets	2 057 220	1 068 882
Total	$2 125 365	$1 068 882
Liabilities
Accounts payable and accrued liabilities (Note 7)	$241 551	$171 739
Vacation pay and compensatory leave	93 224	97 063
Employee future benefits (Note 8)	352 434	307 043
Total liabilities	687 209	575 845
Equity of Canada	1 438 156	493 037
Total Liabilities and Equity of Canada	$2 125 365	$1 068 882

The accompanying notes form an integral part of these financial statements

Office of the Registrar of Lobbyists
Statement of Equity of Canada (unaudited)
For the year ended March 31, 2008

(in dollars)	2008	2007
Equity of Canada, beginning of year	$493 037	-
Equity adjustment	-	$487 935
Net cost of operations	(3 616 551)	(3 146 583)
Current year appropriations used (Note 3)	4 186 928	3 102 701
Change in net position in the Consolidated Revenue Fund (Note 3)	(391)	(57 773)
Revenue not available for spending (Note 3 (c))	(1 021)	(755)
Services provided without charge (Note 9)	376 154	107 512
Equity of Canada, end of year	$1 438 156	$493 037

The accompanying notes form an integral part of these financial statements

Office of the Registrar of Lobbyists
Statement of Cash Flow (unaudited)
For the year ended March 31, 2008

(in dollars)	2008	2007
Operating activities
Net cost of operations	$3 616 551	$3 146 583
Non-cash items:
Services provided without charge	(376 154)	(107 512)
Amortization of tangible capital assets	(155 090)	(67 932)
Variations in Statement of Financial Position:
Increase in assets	68 145	-
Increase in liabilities	(111 364)	(575 845)
Cash used by operating activities	3 042 088	2 395 294
Capital investment activities
Assets under construction	1 083 881	152 000
Acquisitions of tangible capital assets	59 547	496 879
Cash used by capital investment activities	1 143 428	648 879
Financing activities
Net cash provided by Government of Canada (Note 3 (c))	$4 185 516	$3 044 173

The accompanying notes form an integral part of these financial statements

Office of the Registrar of Lobbyists
Notes to the Financial Statements (Unaudited)
For the year ended March 31, 2008

1. Authority and Objectives

The Office of the Registrar of Lobbyists' (ORL) mandate is derived from the Lobbyists Registration Act. Its purpose is to ensure transparency and accountability in the lobbying of public office holders in order to contribute to confidence in the integrity of government decision-making.

Registration of Lobbyists
Lobbying the federal government is a legitimate activity but it must be done transparently. The Lobbyists Registration Act requires that individuals who are paid to lobby public office holders must disclose certain details of their lobbying activities. The Office approves lobbyists' registrations and makes them available for searching in an electronic registry that is accessible on the Internet.

Education and Research
ORL develops and implements educational and research programs to foster awareness of the requirements of the Lobbyists Registration Act and the Lobbyists' Code of Conduct. The primary audiences for programs are lobbyists, their clients and public office holders.

Reviews and Investigations under the Lobbyists Registration Act and the Lobbyists' Code of Conduct
ORL validates information provided by registered lobbyists to ensure accuracy. Allegations of non-registration or misconduct by lobbyists are reviewed and formal investigations are carried out when required.

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:

1. Parliamentary appropriations — ORL is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to ORL 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.
2. Net Cash Provided by Government — ORL operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by ORL is deposited to the CRF and all cash disbursements made by ORL 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.
3. 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 ORL. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
4. Revenues from registration are recognized in the accounts based on the services provided in the year.
5. Expenses are recorded on the accrual basis:
   1. Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
   2. Services provided without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
6. Employee future benefits
   1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. ORL'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 ORL to make contributions for any actuarial deficiencies of the Plan.
   2. 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.
7. Accounts receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
8. Tangible capital assets — All tangible capital assets having an initial cost of $2 000 or more are recorded at their acquisition cost. ORL 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 asset as follows:

   
   

   Asset class	Amortization period
   Machinery and equipment	10 years
   Furniture and fixtures	10 years
   Informatics Software	10 years
   Assets under construction	Once in service, in accordance with asset type

   
   
9. 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

ORL 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, ORL 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

(in dollars)	2008	2007
Net cost of operations	$3 616 551	$3 146 583
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge (Note 9)	(376 154)	(107 512)
Revenue not available for spending	1 021	755
Employee severance benefits (Note 8)	(45 391)	(307 043)
Amortization of tangible capital assets (Note 6)	(155 090)	(67 932)
Vacation pay and compensatory leave	3 839	(97 063)
Other	(1 276)	-
Justice Canada expenditure reversals	-	(113 966)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add:
Acquisitions of tangible capital assets	1 143 428	648 879
	570 377	(43 882)
Current year appropriations used	$4 186 928	$3 102 701

b. Appropriations provided and used

(in dollars)	2008	2007
Vote 30 — Operating expenditures	$4 296 292	$3 161 666
Statutory amounts	301 304	244 808
Less:
Lapsed appropriations: Operating	(410 668)	(303 773)
Current year appropriations used	$4 186 928	$3 102 701

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

(in dollars)	2008	2007
Net cash provided by Government of Canada	$4 185 516	$3 044 173
Revenue not available for spending	1 021	755
Change in net position in the Consolidated Revenue Fund
Variation in accounts payable and accrued liabilities	69 812	171 739
Variation in accounts receivable and advances	(68 145)	-
Variation in vacation pay and compensatory leave	(3 839)	-
Other adjustments	2 563	-
Justice Canada expenditure reversal	-	(113 966)
	391	57 773
Current year appropriations used	$4 186 928	$3 102 701

4. Expenses

(in dollars)	2008	2007
Salaries and employee benefits	$2 297 001	$2 131 318
Professional and special services	556 445	548 027
Accommodation (Note 9 (a))	252 992	-
Repair and Maintenance	205 857	223 007
Amortization	155 090	67 932
Utilities, materials and supplies	44 969	36 022
Furniture and equipment	39 549	16 878
Telecommunication Services	24 317	20 434
Travel	23 552	25 052
Information Services	11 400	68 466
Rental	6 400	10 202
Total Expenses	$3 617 572	$3 147 338

5. Accounts Receivable and Advances

(in dollars)	2008	2007
Receivables from other Federal Government departments and agencies	$65 979	-
Receivables from external parties	1 966	-
Employee advances	200	-
Total accounts receivable and advances	$68 145	-

6. Tangible Capital Assets

(in dollars)	Cost
Capital asset class	Opening balance	Acquisitions	Closing balance
Machinery and equipment	$15 928	$5 860	$21 788
Furniture and fixtures	-	53 687	53 687
Informatics software	1 015 279	-	1 015 279
Assets under construction	152 000	1 083 881	1 235 881
Total	$1 183 207	$1 143 428	$2 326 635

	Accumulated amortization			2008	2007
Capital asset class	Opening Balance	Amortization	Closing Balance	Net Book Value	Net Book Value
Machinery and equipment	$3 186	$1 828	$5 014	$16 774	$12 742
Furniture and fixtures	-	2 572	2 572	51 115	-
Informatics software	111 139	150 690	261 829	753 450	904 140
Assets under construction	-	-	-	1 235 881	152 000
Total	$114 325	$155 090	$269 415	$2 057 220	$1 068 882

There were no disposals or write-offs during the year ended March 31, 2008.

The amortization expense for the year ended March 31, 2008 is $155 090 ($67 932 in 2007).

7. Accounts Payable and Accrued Liabilities

(in dollars)	2008	2007
External
Accounts payable	$71 699	-
Accrued liabilities	3 216	-
Accrued salaries and wages	105 075	$34 161
Total External	179 990	34 161
Internal
Accounts payable to other Federal Government departments and agencies	61 561	137 578
Total accounts payable and accrued liabilities	$241 551	$171 739

8. Employee Future Benefits

a) Pension benefits: ORL 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 ORL contribute to the cost of the Plan. The 2007-08 expense amounts to $219 650 ($219 103 in 2006-07), which represents approximately 2.1 times (2.2 in 2006-07) the contributions by employees.

ORL'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: ORL 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	$307 043	-
Expense for the year	45 391	$307 043
Accrued benefit obligation, end of year	$352 434	$307 043

9. Related party transactions

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

(a) Services provided without charge:

During the year ORL 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 ORL Statement of Operations as follows:

(in dollars)	2008	2007
Accommodation	$252 992	-
Employers contribution to insurance plans	123 162	$107 512
Total	$376 154	$107 512

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 ORL's Statement of Operations.

10. Comparative Information

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

• Previous Page
• Table of Contents
•