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Section III: Supplementary Information

Departmental Link to Government of Canada Outcome Areas (for DPRs)

Strategic Outcome: The problems of offenders in the federal correctional system are identified and addressed in a timely and reasonable fashion.
	Actual Spending 2007-08			Alignment to Government of Canada Outcome Area
	Budgetary	Non- budgetary	Total
Oversight of correctional operations	2,754		2,754	Safe and secure communities

 

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

($ millions)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
Oversight of correctional operations	3,115	3,156	3,132	3,132	3,373	2,754
Total	3,115	3,156	3,132	3,132	3,373	2,754
Less: Non-respendable revenue	0	0	N/A	0	N/A	0
Plus: Cost of services received without charge	258	440	N/A	394	N/A	432
Total Departmental Spending	3,373	3,596	N/A	3,508	N/A	3,186
Full-Time Equivalents	24	22	N/A	22	N/A	25

 

Table 2: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008
		Main Estimates	Planned Spending	Total Authorities	Actual
40	Operating expenditures	2,773	2,773	3,014	2,754
(S)	Contributions to employee benefit plans	359	359	359	435
	Total	3,132	3,132	3,373	3,189

 

Table 3: Travel Policies

Comparison to the Treasury Board of Canada Secretariat Special Travel Authorities

Comparison to the Treasury Board of Canada Secretariat Travel Directive, Rates and Allowances

 

Table 4: Financial Statements

Statement of Management Responsibility (unaudited)

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 Office of the Correctional Investigator (OCI) 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 OCI's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the OCI'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 OCI.

The financial statements of the OCI have not been audited.

 

Statement of Financial Position (unaudited)

As at March 31 (in dollars)	2008	2007
Assets
Financial Assets
Accounts receivable and advances (Note 4)	2,441	33,602
Total Assets	2,441	33,602
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities	129,364	135,858
Vacation pay and compensatory leave	90,980	148,380
Employee severance benefits (Note 5)	460,169	446,472
Total Liabilities	680,513	730,710
Equity of Canada	(678,072)	(697,108)
Total Liabilities and Equity of Canada	2,441	33,602

The accompanying notes form and integral part of these financial statements.

 

Statement of Equity (unaudited)

For the Year ended March 31 (in dollars)	2008	2007
Equity of Canada, beginning of year	(697,108)	(679,816)
Net cost of operations	(3,425,097)	(3,643,933)
Current year appropriations used  (Note 3)	3,122,200	3,155,893
Revenue not available for spending (Note 3)	(10)	(35)
Refunds of previous year expenditures (Note 3)	(77,519)	(876)
Change in net position in the Consolidated Revenue Fund (Note 3)	(32,871)	32,102
Services provided without charge by other government departments (Note 6)	432,333	439,557
Equity of Canada, end of year	(678,072)	(697,108)

The accompanying notes form and integral part of these financial statements.

 

Statement of Operations (unaudited)

For the Year ended March 31 (in dollars)	2008	2007
Expenses
Salaries and employee benefits	2,652,915	2,783,915
Accommodation	306,603	261,074
Professional and special services	179,915	293,588
Travel and relocation	176,532	230,336
Communication	49,012	44,140
Equipment	27,813	4,276
Utilities, material and supplies	20,421	15,939
Information	6,049	5,603
Repairs	3,174	2,118
Equipment rentals	2,673	2,678
Other	-	301
Total Expenses	3,425,107	3,643,968
Revenues	10	35
Net Cost of Operations	3,425,097	3,643,933

The accompanying note form and integral part of these financial statements.

 

Statement of Cash Flow (unaudited)

For the Year ended March 31 (in dollars)	2008	2007
Operating activities
Net Cost of Operations	3,425,097	3,643,933
Non-cash items:
Services provided without charge by other government departments (Note 6)	(432,333)	(439,557)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivables and advances	(31,161)	7,367
Decrease (increase) in liabilities	50,197	(24,659)
Total cash used by Operating Activities	3,011,800	3,187,084
Financing activities
Net cash provided by Government of Canada (Note 3(c))	(3,011,800)	(3,187,084)

The accompanying note form and integral part of these financial statements.

 

Notes to the Financial Statements (unaudited)

1. Authority and purpose

The OCI was established in 1973 pursuant to Part II of the Inquiries Act. With the proclamation in November 1992 of Part III of the Corrections and Conditional Release Act, this is now the enabling legislation. The mandate of the Correctional Investigator, as defined by this legislation, is to function as an Ombudsman for federal offenders. The Correctional Investigator is independent of the Correctional Service of Canada and may initiate an investigation on receipt of a complaint by or on behalf of an offender, at the request of the Minister or on his own initiative. The Correctional Investigator is required by legislation to report annually through the Minister of Public Safety to both Houses of Parliament.

In addition, Section 19 of the Corrections and Conditional Release Act requires that the Correctional Service of Canada "where an inmate dies or suffers serious bodily injury" conduct an investigation and provide a copy of the report to the Correctional Investigator.

2. Significant accounting policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations
The Office is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Office 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 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. 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
The 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 Office. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) 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 and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.

 

(e) Employee future benefits

Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Office's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Office 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.

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

(g) 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 item where an estimate is used is the liability for employee severance benefits. 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 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:

(in dollars)	2008	2007
Net cost of operations	3,425,097	3,643,933
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Refunds of previous year expenditures	77,519	876
Adjustments of accounts payable at year end	8,204	-
Employee severance benefits	(13,697)	(38,694)
Vacation pay and compensatory leave	57,400	(10,700)
Revenue not available for spending	10	35
Services provided without charge by other government departments	(432,333)	(439,557)
	(302,897)	(488,040)
Current year appropriations used	3,122,200	3,155,893
(b) Appropriations provided and used:
Program expenditures - Vote 55	3,067,391	2,903,757
Less: Lapsed appropriations	(313,555)	(72,862)
	2,753,836	2,830,895
Add statutory amounts: Contributions to employee benefits plan	368,364	324,998
Current year appropriations used	3,122,200	3,155,893
(c) Reconciliation of net cash provided by Government to current year appropriations used:
Net cash provided by Government	3,011,800	3,187,084
Revenue not available for spending	10	35
Refunds of previous year expenditures	77,519	876
	3,089,329	3,187,995
Change in net position in the Consolidated Revenue Fund:
Adjustments of accounts payable at year end	8,204	-
(Increase) decrease in accounts receivable	31,161	(7,367)
Increase (decrease) in accounts payable and accrued liabilities	(6,494)	(24,735)
	32,871	(32,102)
Current year appropriations used	3,122,200	3,155,893

4. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

(in dollars)	2008	2007
Receivable from other Federal Government departments and agencies	1,341	33,002
Employee advances	1,100	600
Total	2,441	33,602

5. Employee Benefits

(a) 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 $268,537 ($324,998 in 2006-07), which represents approximately 2.1 times 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. 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	446,472	407,778
Accrued expense for the year	13,697	38,694
Accrued benefit obligation, end of year	460,169	446,472

6. Related party transactions

The Office is related as a result 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 and on normal trade terms. Also, during the year, the Office 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 Office received service without charge from other departments. These services have been recognized in the Office's Statement of Operations as follows:

(in dollars)	2008	2007
Accommodation	280,017	261,074
Employer's contribution to the health and dental insurance plans	152,316	178,483
	432,333	439,557

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 Office's Statement of Operations.

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

(in dollars)	2008	2007
Accounts payable to other government departments and agencies	30,939	37,751

7. Comparative information

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

 

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