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SECTION III: SUPPLEMENTARY INFORMATION

Financial Highlights

The financial information included in this section was prepared in accordance with the accrual method of accounting and extracted from the NFB's 2009–2010 audited financial statements.

The reduction in financial assets comes from the consolidated revenue fund which shows the effect of the year-end accrued salaries reduction since this year's pay period coincided exactly with the financial year. Non-financial assets declined slightly. This is due to the end of a three-year acquisitions cycle related to the new media digital shift.

In turn, several capital-lease contracts expired which in part explains the decrease in liabilities. Added to this is the impact of the change in the accounting estimate method for future benefits. This resulted in a significant reduction in the termination of employment provision. It should be noted that a change of calculation method represents a change in accounting estimate and does not require a restatement of prior periods.

Condensed Statement of Financial Position

as at March 31	% Change	2010	2009
Financial assets	-19,9	6 235	7 780
Non-financial assets	-2,7	9 761	10 027
TOTAL ASSETS	-10,2	15 996	17 807
Total Liabilities	-25,6	13 996	18 804
Total Equity		2 000	- 997
TOTAL LIABILITIES AND EQUITY	-10,2	15 996	17 807

 

Operating expenses continue to decrease from year to year. This is due to several factors, including the reduction of the termination of employment provision due to the change in the estimate method, close monitoring of expenses related to transportation, communication, and equipment and supplies, as well as a reduction of co-production payments and fees for expired licences. Expenses for professional services increased due to important film productions such as Higglety Pigglety Pop! and Glimpses, which was presented at the Expo 2010 in Shanghai, and GDP: Measuring the Human Side of the Canadian Economic Crisis. The increase in the depreciation charge is directly linked to the equipment acquisitions cycle related to the digital shift.

The increase in revenue is due to a important pre-sale with Warner Home Video for the production of the film Higglety Pigglety Pop! Major partnerships were also signed with Cirque du Soleil Inc. for the film Glimpses and with Human Resources and Social Development Canada for the Work for All Web production. NFB Stockshots continue to expand through participation in a joint project with Canadian Heritage to them available online in schools. The decrease in the number of film copy sales is mainly due to the market's transitioning to new media.

Condensed Statement of Operations ($ thousands)

for the year ended March 31	% Change	2010	2009
EXPENSES
Salaries and benefits	-2,6	39,034	40,071
Professional and special services	19,3	10,564	8,854
Rentals	0,7	8,537	8,478
Transportation, communication, material & supplies and information	-7,7	6,037	6,544
Amortization of capital assets	17,0	3,246	2,774
Cash financing in co-productions	-32,5	2,712	4,016
Royalties and contracted film production and processing	-22,5	1,812	2,338
Other	-7,4	1,445	1,560
Total Expenses	-1,7	73,787	74,635
REVENUES
Film prints	-19,5	2,004	2,489
Sponsored production and pre-sale	174,0	1,992	727
Royalties	2,9	1,587	1,543
Stockshots	40,6	779	554
Other	-27,4	342	471
Total Revenues	15,9	6,704	5,784
NET COST OF OPERATIONS	-3,1	66,683	68,851

 

Expenditures

The proportion of NFB expenses related to film production, distribution, marketing, accessibility and digital initiatives has remained stable at 88%. The reduction of expenses in the distribution sector is mainly due to the closing of the Paris and New York sales offices. This resulted in a considerable decrease in the NFB's fixed costs. The savings were reinvested in programming, accessibility and transitioning to new media.

	2009-10	2008-09	2009-10	2008-09
	($ thousands)		%
Programming - French & English	41 338	40 143	56,4	53,8
Distribution	5 906	8 301	8,0	11,1
Marketing, Accessibility & Outreach	13 545	13 742	18,5	18,4
Digital development and applications	3 536	3 225	4,8	4,3
Sub-total	64 325	65 411	87,7	87,6
Internal Services	9 062	9 224	12,3	12,4
Total expenses	73 387	74 635	100,0	100,0

 

Revenue

Revenue from sponsored production and pre-sales shows a 17% increase resulting from important agreements with Warner Home Video, Cirque du Soleil and Human Resources and Social Development Canada. The institutional and educational market remains one of the best generators of revenue. The industry's shift to new media is continuing to have impacts on the television sales sector and the consumer market.

[D]

 

Financial Statements

http://www.onf-nfb.gc.ca/medias/download/documents/pdf/nfb-financial-statements-2009-2010.pdf

 

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2009–10 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat's website at: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

Sources of Respendable and Non-Respendable Revenue
Details on Transfer Payment Programs (TPPs)

 

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1 - The comScore 2009 Digital Year in Review, A Recap of the Year in Canadian Digital Marketing.

2 - It should be noted that the NFB submitted a new PAA for 2011–2012.

3 - Commencing in the 2009–2010 Estimates cycle, the resources for Program Activity: Internal Service is displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by Program Activity between fiscal years.

4 - It should be noted that the international co-productions include a 26 episode animated series for children, Ludovic.

5 - The NFB improved its audience measurement methodology for fiscal year 2009–2010, to place an emphasis on measuring active online viewing rather than web visits and traffic, when calculating our total Canadian audience across all platforms. Using this more precise metric, the audience count for 2008–2009 was revised to 27,826,512 (instead of 31,617,158.)

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