ARCHIVED - 2009-2010 RPPs - Revolving Funds

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• Agriculture and Agri-Food Canada
• Canadian Grain Commission
• Correctional Service Canada
• National Film Board of Canada
• Natural Resources Canada
• Public Works and Government Services Canada

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Agriculture and Agri-Food Canada



Canadian Pari-Mutuel Agency Revolving Fund

Canadian Grain Commission



Table 6: Revolving Funds

Statement of Operations
($ thousands)

Description	Forecast 2008-09	Planned 2009-10	Planned 2010-11	Planned 2011-12
Respendable Revenue	33 315	41 370	41 370	41 370
Expense - Operating
Salaries and employee benefits	24 815	33 564	33 564	33 564
Depreciation	1 010	900	900	900
Repairs and maintenance	320	320	320	320
Administrative and support services	5 060	5 058	5 058	5 058
Utilities, materials and supplies	815	814	814	814
Marketing	390	390	390	390
Total	32 410	41 046	41 046	41 046
Surplus (Deficit)	905	324	324	324

This table portrays and allocates the costs associated with the Respendable Revenue generated through fees and contracts.

Statement of Cash Flows
($ thousands)

Description	Forecast 2008-09	Planned 2009-10	Planned 2010-11	Planned 2011-12
Surplus (Deficit)	905	324	324	324
Add non-cash items
Depreciation / amortisation	1 010	900	900	900
Others (defined)
Investing activities
Acquisition of depreciable assets	(1 795)	(1 104)	(1 104)	(1 104)
Cash surplus (requirement)	120	120	120	120

This table converts the financial statement information from book value to a cash basis.

Projected Use of Authority
($ thousands)

Description	Forecast 2008-09	Planned 2009-10	Planned 2010-11	Planned 2011-12
Authority	2 000	2 000	2 000	2 000
Drawdown
Balance as at April 1	34 670	755	875	995
Operating (deficit)/surplus	(34 035)	0	0	0
Projected surplus (drawdown)	120	120	120	120
Subtotal
Projected Balance on March 31	2 755	2 875	2 995	3 115

This table represents the projected surplus (drawdown), which is made up of the ANCAFA (cash basis) plus a $2 million line of credit for revolving fund activities only.

Correctional Service Canada



Table 13: Revolving Funds (From Corcan Sector)

Statement of Operations
($ millions)

Revenues	Forecast Spending 2008-2009	Planned Spending 2009-2010	Planned Spending 2010-2011	Planned Spending 2011-2012
CORCAN Revenues	95.9	95.0	95.0	96.9
Other Revenues	0.0	0.0	0.0	0.0
Respendable Revenue	95.9	95.0	95.0	96.9
Expenses
Salaries and employee benefits	37.1	37.1	37.1	37.9
Depreciation	2.2	2.2	2.2	2.2
Repairs and maintenance	1.2	1.2	1.2	1.2
Administrative and support services	9.8	9.8	9.8	10.0
Utilities, materials and supplies	45.6	44.7	44.7	45.6
Total Expenses	95.9	95.0	95.0	96.9
Surplus (deficit)	0.0	0.0	0.0	0.0

Statement of Cash Flows
($ millions)

Operating Activities	Forecast Spending 2008-2009	Planned Spending 2009-2010	Planned Spending 2010-2011	Planned Spending 2011-2012
Surplus (Deficit)	0.0	0.0	0.0	0.0
Add: Items Not Requiring Use of Funds
Provision for Employee Termination Benefits	0.7	0.7	0.7	0.7
Amortization of fixed assets	2.2	2.2	2.2	2.2
Amortization of deferred charges	0.0	0.0	0.0	0.0
Allowance for doubtful accounts	0.0	0.0	0.0	0.0
Cash surplus (requirement)	2.9	2.9	2.9	2.9
Changes in Current Assets and Liabilities
Deferred Charges	0.0	0.0	0.0	0.0
Accounts Receivable	(0.5)	0.1	0.0	(0.1)
Inventory	(1.9)	0.1	0.0	(0.3)
Accounts Payable	0.8	(0.2)	0.0	0.2
Payment on changes in provision for Employee Termination Benefits	(0.5)	(0.5)	(0.6)	(0.6)
Total Changes	(2.1)	(0.5)	(0.6)	(0.8)
Net Financial Resources	0.8	2.4	2.3	2.1
Investing Activities
Capital Assets Purchased	(3.1)	(3.0)	(3.0)	(3.0)
Net Financial Resources	(3.1)	(3.0)	(3.0)	(3.0)
Net Financial Resources used and Change in the Accumulated Net Charge against the Fund's Authority Account during the Year	(2.3)	(0.6)	(0.7)	(0.9)

Projected Use of Authority
($ millions)

	Forecast Spending 2008-2009	Planned Spending 2009-2010	Planned Spending 2010-2011	Planned Spending 2011-2012
Authority *
Authority - April 1	5.0	5.0	5.0	5.0
Adjustment to the Revolving Fund Authority	0.0	0.0	0.0	0.0
Sub-Total Authority - March 31	5.0	5.0	5.0	5.0
Drawdown
Balance - April 1	18.8	16.5	15.9	15.2
Projected surplus (drawdown)	(2.3)	(0.6)	(0.7)	(0.9)
Sub-Total Drawdown - March 31	16.5	15.9	15.2	14.3
Projected Balance on March 31	21.5	20.9	20.2	19.3

* Five million dollars is the maximum amount that may be drawn down at any time from the Consolidated Revenue Fund.

National Film Board of Canada



Revolving Funds

Statement of Operations (cash view)
($ thousands)

Description	Forecast Spending 2008-2009	Planned Spending 2009-2010	Planned Spending 2010-2011	Planned Spending 2011-2012
Revenus disponibles	8 295	8 452	8 452	8 452
Operating expenses
Personnel and Benefits	36 314	39 891	39 891	39 891
Professional and Other Services	22 337	19 303	19 303	19 303
Rentals	9 900	8 990	8 990	8 990
Repair and Maintenance	1 900	1 720	1 720	1 720
Material and Supplies	906	820	820	820
Capital
Acquisition Machinery and Equipment	2 800	2 540	2 540	2 540
Transfert payment - Grants and Contributions	250	250	250	250
Total	66 112	65 062	65 062	65 062

Natural Resources Canada



Table 12: Geomatics Canada Revolving Fund

Statement of Operations
($ millions)

	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Respendable Revenue
Products	0.9	0.5	0.5	0.5
Service	2.7	1.5	1.5	1.5
Consulting	0.0	0.0	0.0	0.0
Respendable Revenue	3.6	2.0	2.0	2.0
Expense – Operating
Cost of sales	0.3	0.3	0.3	0.3
Salaries and employee benefits	1.3	1.3	1.3	1.3
Depreciation	0.0	0.0	0.0	0.0
Repairs and maintenance	0.1	0.0	0.0	0.0
Administrative and support services	1.0	0.1	0.1	0.1
Utilities, materials and supplies	0.1	0.0	0.0	0.0
Rental	0.0	0.0	0.0	0.0
Interest	0.0	0.0	0.0	0.0
Transportation and communication	0.3	0.1	0.1	0.1
Professional and special service	2.1	0.1	0.1	0.1
Total Operating Expenses	5.2	1.9	1.9	1.9
Surplus (Deficit)	(1.6)	0.1	0.1	0.1

Statement of Cash Flows
($ millions)

	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Operating Surplus (Deficit)	(1.6)	0.1	0.1	0.1
Non cash item: Depreciation	0.0	0.0	0.0	0.0
Change in working capital	0.0	(0.1)	(0.1)	(0.1)
Other items	0.0	0.0	0.0	0.0
Investing activities: Capital acquisitions	0.0	0.0	0.0	0.0
Surplus (Deficit)	(1.6)	0.0	0.0	0.0

Projected Use of Authority
($ millions)

	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Authority
Drawdown
Balance as at April 1	4.3	2.7	2.7	2.7
Projected surplus (drawdown)	(1.6)	0.0	0.0	0.0
Projected Balance on March 31	2.7	2.7	2.7	2.7

Public Works and Government Services Canada



Table 13: Revolving Funds

Consulting and Audit Canada Revolving Fund - Future-Oriented Financial Statements

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	2,629
Add: items not requiring use of funds	854
Operating source (use) of funds	3,483
Less: items requiring use of funds
Net capital acquisitions	(84)
Authority provided	3,567

Consulting and Audit Canada Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Debit balance in the accumulated net charge against the Fund's authority	1,302
Add:
PAYE charges against the appropriation account after March 31	7,140
Adjustments	(4,450)
	2,690
Less:
RAYE Amounts credited to the appropriation account after March 31	12,225
Net authority provided, end of year	(8,233)
Authority limit	20,000
Unused authority carried forward	28,233

Consulting and Audit Canada Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Accounts receivable
Government of Canada	11,705
Outside parties	423
Other assets	62
	12,190
Capital assets	67
	12,257
Liabilities and net liabilities
Current
Account payable and accrued liabilities
Government of Canada	122
Outside parties	1,203
Other liabilities	2,916
	4,241
Allowance for employee termination benefits	6,301
	10,542
Accumulated net charge against the fund's authority	1,302
Accumulated surplus (deficit)	413
Net liabilities (note 7)	1,715
	12,257

Consulting and Audit Canada Revolving Fund

Future-Oriented Statement of Operations and Net Assets
For the year ended March 31

in thousands of dollars	Forecast 2010
Revenue	54,958
Direct Costs	1,600
Gross margin	53,358
Operating expenses
Salaries and Employee Benefits	38,042
Employee termination benefits payments	669
Provision Severance benefits	837
Occupancy Costs	3,421
Corporate & Administrative Services	3,279
Professional and special services	1,982
Transportation and telecommunications	908
Utilities, materials and supplies	811
Interest on drawdown	12
Rentals	323
Amortization	17
Other Expenses	428
	50,729
Net results	2,629
Net assets (liabilities), beginning of year	(1,220)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's account during the year	306
Net assets (liabilities), end of year	1,715

Consulting and Audit Canada Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	2,629
Items not affecting use of the Fund's authority
Amortization	17
Provision for employee termination benefits	1,506
	4,152
Changes in working capital	(3,705)
Payments on provision for employee termination benefits	(669)
Net financial resources used by operating activities	(222)
Investment activities
Leasehold improvement	(84)
Net financial resources provided (used) by investment activities	(84)
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year	(306)
Accumulated net charge against the Fund's authority account, beginning of year	(996)
Accumulated net charge against the Fund's authority account, end of year	(1,302)

1. AUTHORITY AND PURPOSE

The Consulting and Audit Canada Revolving Fund ("the Fund") is a Special Operating Agency that provides, on an optional and fee-for-service basis, consulting and audit services to federal departments and agencies. Upon request, these services are also provided to provincial, territorial, municipal and aboriginal governments in Canada, to foreign governments and to international organizations.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $20,000,000 at any time.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• On the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• According to the requirements of Treasury Board Accounting Policies and the standards of the Receiver General for Canada.
• On the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• On the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009/10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Received General for Canada. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.

Significant accounting policies are as follows:

a) Forecasted revenue
Revenues on consulting and audit services performed by the Fund are earned primarily on a daily rate basis and are recognized as the services are provided.

For fixed price projects, revenues are recognized using the percentage of completion method based on the proportion of services provided at year end. Any losses on fixed price projects are recognized during the period they are identified.

b) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows;

Category		Estimated useful life
Informatics hardware		3 to 5 years
Informatics software		3 to 5 years
Leasehold improvements		Lesser of the remaining term of the occupancy instrument or useful life of the improvement

c) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts.

d) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.

The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the forecasted year for all unused vacation pay and time-off-in-lieu benefits accruing to employees.

e) Accounts receivables and advances
Accounts receivables and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

f) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives.

At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. OTHER ASSETS

in thousands of dollars
	Forecast 2010
Goods and Services Tax refundable advances	43
Other advances	19
	62

6. CAPITAL ASSETS

in thousands of dollars
Capital assets	Balance beginning of year	Acquisitions	Balance end of year
Informatics hardware	413	0	413
Informatics software	288	0	288
Leasehold improvements	683	84	767
	1,384	84	1,468

Accumulated amortization	Balance beginning of year	Current year amortization	Balance end of year
Informatics hardware	413	0	413
Informatics software	288	0	288
Leasehold improvements	683	17	700
	1,384	17	1,401
Net	-		67

7. NET ASSETS

The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars
	Forecast 2010
Accumulated surplus (deficit), beginning of year	(2,216)
Net results	2,629
Accumulated surplus (deficit), end of year	413
Accumulated net charge against the Fund's authority account, end of year	1,302
	1,715

8. FORECASTED REVENUES

in thousands of dollars
	Forecast 2010
Consulting services	25,181
Audit services	29,777
	54,958

9. CONTRACTUAL OBLIGATIONS

The Fund leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instruments are as follows:

in thousands of dollars
Year ending March 31, 2010	1,868
2011	1,747
2012	1,750
2013	1,705
2014	930
	8,000

10. FINANCIAL INSTRUMENTS

The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these future-oriented financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

11. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.

Optional Services Revolving Fund - Future-Oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the Revolving Fund management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and can be compared with actual results presented in Public Works and Government Services' Departmental Performance Report.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. In addition, the reader should be informed that the organization is preparing these statements as part of a two year pilot project and readers should be cautioned that this is the first year of the pilot.

MIKE HAWKES, Chief Financial Officer
Finance Branch
Public Works and Government Services Canada

LILIANE SAINT-PIERRE, Assistant Deputy Minister
Acquisition Branch
Public Works and Government Services Canada

Optional Services Revolving Fund

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	-
Add: items not requiring use of funds	-
Operating source (use) of funds	-
Less: items requiring use of funds
Net other assets and liabilities	-
Authority provided	-

Optional Services Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Debit balance in the accumulated net charge against the Fund's authority	(5,222)
Add:
PAYE charges against the appropriation account after March 31	3,456
Less:
Amounts credited to the appropriation account after March 31	800
Net authority provided, end of year	(2,566)
Authority limit (note 1)	35,000
Unused authority carried forward	37,566

Optional Services Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Accounts receivable
Government of Canada	800
Outside parties	2,680
	3,480
Liabilities and net liabilities
Current
Account payable and accrued liabilities
Government of Canada	100
Outside parties	3,200
Other liabilities	156
	3,456
Allowance for employee termination benefits	800
	4,256
Net liabilities (note 5)	(776)
	3,480
Contractual obligation (note 6)

Optional Services Revolving Fund

Future-Oriented Statement of Operations and Net Liabilities
For the year ended March 31

in thousands of dollars	Forecast 2010
Revenue (note 8)	102,553
Direct Costs	95,901
Gross margin	6,652
Operating expenses
Salaries and employee benefits	3,430
Professional and special services	1,884
Corporate and administrative servicess	527
Occupancy Costs	478
Transportation and telecommunications	1
Utilities, materials and supplies	3
Other expenses	329
	6,652
Net results	-
Net liabilities, beginning of year	(776)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority account, during the year	-
Net liabilities, end of year	(776)

Optional Services Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	-
Items not affecting use of the Fund's authority	-
	-
Net financial resources provided by operating activities	-
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year	-
Accumulated net charge against the Fund's authority account, beginning of year	6,257
Accumulated net charge against the Fund's authority account, end of year	6,257

1. AUTHORITY AND PURPOSE

The Optional Services Revolving Fund ("the Fund") provides specialized services to client departments, such as communication procurement services, travel management services, central removal services and central freight services. The Fund also procures vaccines and drugs on behalf of provinces and territories.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $35,000,000 at any time.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• on the basis of government policies,government priorities,and external environment at the time the future-oriented financial information was finalized.
• according to the requirements of Treasury Board Accounting Policies and the standards of the Receiver General for Canada.
• on the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• on the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009/10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The basis of accounting used in these future-oriented financial statements differs from Canadian generally accepted accounting principles for the Public Sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.

Significant accounting policies are as follows:

a) Forecasted revenue
Recoveries from the vaccine program are recognized using a blended rate established by fixed price contracts and based on the proportion of total goods delivered at year end. Any losses on the fixed price contracts are recognized during the period in which they are identified.

Revenues earned on communication, printing and audio-visual services are recognized using the completed contract method.

Traffic management recoveries consist of travel commissions, central freight and central removal services. Travel commissions and central removal services recoveries are recognized based on service utilization whereas central freight recoveries are recognized as service provider costs are provided to the Fund.

b) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset. All capital assets were fully amortized at the time to prepare these future-oriented financial statements.

c)Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts.

Current legislation does not require the fund to make any contribution for any actuarial deficiency of the Plan.

d) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.

The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the forecasted year for all unused vacation pay and time-off-in-lieu benefits accruing to employees.

e) Accounts receivables and advances
Accounts receivables and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

f) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. NET LIABILITIES

The accumulated surplus is the accumulation of each fiscal year's surpluses, net of deficits, since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars	Forecast 2010
Accumulated surplus, beginning of year	5,481
Net results	-
Accumulated surplus, end of year	5,481
Accumulated net charge against the Fund's authority account, end of year	(6,257)
	(776)

6. CONTRACTUAL OBLIGATIONS

The Fund leases its premises under an occupancy instrument. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instrument are as follows:

in thousands of dollars
Year ending March 31, 2010	460
2011	463
2012	466
2013	468
2014	79
	1,936

7. FORECASTED REVENUES

The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars	Forecast 2010
Vaccine program recoveries	65,000
Traffic management recoveries	35,053
Communication, printing and audio-visual recoveries	2,500
	102,553

8. FINANCIAL INSTRUMENTS

The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these future-oriented financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

9. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.

Real Property Disposition Revolving Fund - Future-Oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the Revolving Fund management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and can be compared with actual results presented in Public Works and Government Services' Departmental Performance Report.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. In addition, the reader should be informed that the organization is preparing these statements as part of a two year pilot project and readers should be cautioned that this is the first year of the pilot.

MIKE HAWKES, Chief Financial Officer
Finance Branch
Public Works and Government Services Canada

JOHN MCBAIN, Associate Assistant Deputy Minister
Real Property Branch
Public Works and Government Services Canada

Real Property Disposition Revolving Fund

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	5,200
Less: items requiring use of funds	-
Authority provided	5,200

The accompanying notes form an integral part of these future-oriented statements

Real Property Disposition Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Debit balance in the accumulated net charge against the Fund's authority	(1,549)
Add:
Deposits on disposals	240
Net authority provided, end of year	(1,309)
Authority limit (note 1)	5,000
Unused authority carried forward	6,309

The accompanying notes form an integral part of these future-oriented statements

Real Property Disposition Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Work in process	3,691
	3,691
Liabilities and net assets
Current
Deposits on disposals	240
Net assets (note 5)	3,451
	3,691

The accompanying notes form an integral part of these future-oriented statements

Real Property Disposition Revolving Fund

Future-Oriented Statement of Operations and Net Assets
For the year ended March 31

in thousands of dollars	Forecast 2010
Revenues	8,000
Operating expenses
Fees	1,540
Disbursements	1,260
	2,800
Net results	5,200
Net assets, beginning of year	3,441
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1)	(5,200)
Net financial resources used and change in the accumulated net chare against the Fund's authority account, during the year	10
Net assets, end of year	3,451

The accompanying notes form an integral part of these future-oriented statements

Real Property Disposition Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	5,200
Changes in working capital	(10)
Net financial resources provided by operating activities	5,190
Financing activity
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1)	(5,200)
Net financial resources used by the financing activity	(5,200)
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year	(10)
Accumulated net charge against the Fund's authority account, beginning of year	1,559
Accumulated net charge against the Fund's authority account, end of year (note 5)	1,549

The accompanying notes form an integral part of these future-oriented statements

NOTES TO THE FUTURE-ORIENTED FINANCIAL STATEMENTS

1. AUTHORITY AND PURPOSE

The Real Property Disposition Revolving Fund ("the Fund") provides, on a cost recovery basis, routine disposals of real property assets no longer required in order to generate revenue for the Crown.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, the total of which is not to exceed $5,000,000 at any time.

All proceeds of sale are deposited to the Consolidated Revenue Fund net of disposal costs and expenses. In accordance with the terms and conditions approved by the Treasury Board, any year end accumulated surplus in the Fund in excess of $5,000,000 is deposited to the Consolidated Revenue Fund. The amount forecasted to be transferred to the Consolidated Revenue Fund for 2009­-2010 is $5,200,000.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• on the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• according to the requirements of Treasury Board Accounting Policies and the standards of the Received General for Canada, which are consistent with Canadian generally accepted accounting principles for the public sector.
• on the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• on the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009-2010, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

a) Forecasted revenue
Revenues are recognized in the period in which both the title is transferred to the purchaser and the full payment is received by the Fund.

b) Work in Progress
Work in process includes labour and disbursements incurred for services performed or goods delivered for sales or transfers of properties not finalized at the fiscal year end.

c) Deposits on disposal
Deposits on disposals represent receipts on future disposals of properties that are not closed at the fiscal year end.

d) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. NET ASSETS

The accumulated surplus is the accumulation of each fiscal year's surpluses since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars	Forecast 2010
Accumulated surplus, beginning of year	5,000
Net results	5,200
Transfer of part of the accumulated surplus to the Consolidated Revenue Fund (note 1)	(5,200)
Accumulated surplus, end of year	5,000
Accumulated net charge against the Fund's authority acccount, end of year	(1,549)
	3,451

6. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.

Real Property Services Revolving Fund - Future-Oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the Revolving Fund management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and can be compared with actual results presented in Public Works and Government Services' Departmental Performance Report.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. In addition, the reader should be informed that the organization is preparing these statements as part of a two year pilot project and readers should be cautioned that this is the first year of the pilot.

MIKE HAWKES, Chief Financial Officer
Finance Branch
Public Works and Government Services Canada

JOHN MCBAIN, Associate Assistant Deputy Minister
Real Property Branch
Public Works and Government Services Canada

Real Property Services Revolving Fund

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	-
Add: items not requiring use of funds	-
Operating source of funds	-
Add: Recovery of net draw down authority used (note 1)	-
	-
Less: items requiring use of funds
Net other assets and liabilities	-
Authority provided	-

Accompanying notes are an integral part of the financial statements.

Real Property Services Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Debit balance in the accumulated net charge against the Fund's authority	(15,641)
Add:
PAYE charges against the appropriation account after March 31	233,304
Less:
Amounts credited to the appropriation account after March 31	207,989
Net authority provided, end of year	10,000
Drawdown Authority limit	150,504
Unused authority carried forward	140,504

Accompanying notes are an integral part of the financial statements

Real Property Services Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Accounts receivable
Government of Canada	198,000
External clients	18,910
Other assets (note 5)	9,989
	226,899
Capital assets
Total Assets	226,899
Liabilities and net liabilities
Current Accounts payable and accrued liabilities
Government of Canada	5,544
Outside parties	221,760
Other liabilities	6,000
	233,304
Allowance for employee termination benefits	8,008
Total liabilities	241,312
Net liabilities (note 6)	(14,413)
Total Liabilities and Net liabilities	226,899

Accompanying notes are an integral part of the financial statements

Real Property Services Revolving Fund

Future-Oriented Statement of Operations and Net Liabilities
For the year ended March 31

in thousands of dollars	Forecast 2010
Gross Revenues (note 8)	1,338,809
Recoverable disbursements made on behalf of clients	947,402
Net Revenues	391,407
Operating expenses
Salaries and employee benefits	236,193
Employee termination benefits	3,000
Real Property Indirect Costs	78,281
Corporate and administrative services	50,013
Occupancy Costs	15,221
Provisions and claims for other expenses	8,698
	391,407
Net results	-
Net liabilities, beginning of year	(23,636)
Net Results	-
Net financial resources used and change in the Accumulated net charge against the Fund's authority account, during the year	9,224
Net liabilities, end of year	(14,413)

Accompanying notes are an integral part of the financial statements

Real Property Services Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	-
Items not affecting use of the Fund's authority	-
Provision for employee termination benefits	3,000
	3,000
Changes in working capital	(9,224)
Payment made: Provision for employee termination benefits	(3,000)
Net financial resources provided (used) by operating activities	(9,224)
Net financial resources used and change in the account, during the year	(9,224)
Accumulated net charge against the Fund's authority account, beginning of year	24,864
Accumulated net charge against the Fund's authority account, end of year	15,641

Accompanying notes are an integral part of the financial statements

NOTES TO THE FUTURE-ORIENTED FINANCIAL STATEMENTS

1. AUTHORITY AND PURPOSE

The Real Property Services Revolving Fund ("the Fund") provides, on a fee-for-service basis, optional real property services to other custodian departments and to other departments and agencies requesting services over and above those provided under the Federal Accommodation and Holdings Service Line program. More specifically, the Fund looks after architectural and engineering activities, property management, holdings and divestiture, and support services.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $150,000,000 at any time.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• On the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• According to the requirements of Treasury Board Accounting Policies and the standards of the Receiver General for Canada.
• On the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• On the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009/10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The basis of accounting used in these future-oriented financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.

Significant accounting policies are as follows:

a) Forecasted revenue
Revenues earned on professional and technical services performed and revenues to recover disbursements made on behalf of other government departments and outside parties are recognized as costs are incurred by the Fund.

b) Forecasted expenses
Overhead chargeback, corporate and administrative services and occupancy costs are based on the budgeted direct service delivery personnel costs as determined in the Budget Framework for the Fund and the Federal Accommodation and Holdings Program Activities of Public Works and Government Services Canada.

c) Inventories
Inventories are valued at cost and are recorded on a first-in, first-out basis.

d) Pension Plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts.

Current legislation does not require the fund to make any contribution for any actuarial deficiency of the Plan.

e) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.

The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the forecasted year for all unused vacation pay and time-off-in-lieu benefits accruing to employees.

f) Accounts receivables and advances
Accounts receivables and advances 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 the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. OTHER ASSETS

in thousands of dollars
	Forecast 2010
Goods and Services Tax refundable advances	9,979
Prepaid expenses	10
	9,989

6. NET LIABILITIES

The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars
	Forecast 2010
Accumulated surplus, beginning of year	1,228
Net results	-
Accumulated surplus (deficit), end of year	1,228
Accumulated net charge against the Fund's authority account, end of year	(15,641)
	(14,413)

7. CONTRACTUAL OBLIGATIONS

The Fund is engaged in contractual obligations for property services. Expected future payments are as follows:

in thousands of dollars
Year ending March 31, 2010	41,112
2011	20,411
2012	18,469
2013	18,000
2014 and thereafter	67,389
	165,381

8. FORECASTED REVENUES

in thousands of dollars
	Forecast 2010
Recovery of goods and services procured	947,402
Professional Technical Services Fees	391 407
	1,338,809

9. FINANCIAL INSTRUMENTS

The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these future-oriented financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

10. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.

Telecommunication Informatics Common Services Revolving Fund - Future Oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the Revolving Fund management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and can be compared with actual results presented in Public Works and Government Services' Departmental Performance Report.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. In addition, the reader should be informed that the organization is preparing these statements as part of a two year pilot project and readers should be cautioned that this is the first year of the pilot.

MIKE HAWKES, Chief Financial Officer
Finance Branch
Public Works and Government Services Canada

MAURICE CHÉNIER, A/Chief Executive Officer
Informatics Technology Services Branch
Public Works and Government Services Canada

Telecommunication Informatics Common Services Revolving Fund

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	(5,448)
Add: items not requiring use of funds
Amortization	3,248
Other miscellaneous items	-
Operating source of funds	(2,200)
Expenses related to projects subject to funding approval (note 1)	3,890
	3,890
Authority provided (used)	(6,090)

Telecommunication Informatics Common Services Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Balance in the accumulated net charge against the Fund's authority account	1,935
Add:
PAYE charges against the appropriation account after March 31	80,487
Less:
Amounts credited to the appropriation account after March 31	82,885
Net authority used (provided), end of year	(463)
Drawdown Authority limit (note 1)	20,000
Unused authority carried forward	20,463

Telecommunication Informatics Common Services Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Accounts receivable
Government of Canada	79,667
External clients	1,394
Other assets (note 5)	3,950
	85,011
Capital assets- (note 6)	9,038
Total Assets	94,049
Liabilities and Net Liabilities
Current
Accounts payable and accrued liabilities
Government of Canada	627
Outside parties	79,860
Other Allowances	1,792
	82,279
Allowance for employee termination benefits	7,884
Other liabilities	4,544
Total Liabilities	94,706
Net Liabilities (note 7)	(657)
Total Liabilities and Net liabilities	94,049

Telecommunication Informatics Common Services Revolving Fund

Future-Oriented Statement of Operations and Net Liabilities
For the year ended March 31

in thousands of dollars	Forecast 2010
Revenues	290,330
Cost of sales	197,520
Gross margin	92,810
Operating expenses
Salaries and employee benefits	35,836
Employee termination benefits	807
Professional and special services	35,018
Corporate and administrative services	3,763
Occupancy costs	1,434
Transportation and telecommunications	9,273
Purchased repairs and maintenance	6,214
Utilities, materials and supplies	2,310
Amortization	3,248
Rentals	334
Other expenses	21
	98,258
Net results	(5,448)
Net assets (liabilities), beginning of year	2,597
Net financial resources used and change in the accumulated net charge   against the Fund's authority account, during the year	6,084
Expenses related to projects subject to funding approval (note 1)	(3,890)
Net assets (liabilities), end of year	(657)

Telecommunication Informatics Common Services Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	(5,448)
Expenses related to projects subject to funding approval (note 1)	(3,890)
	(9 338)
Items not affecting use of the Fund's authority
Amortization	3,248
Employee Termination Benefits	807
	(5,283)
Changes in working capital	6
Provision for employee termination benefits	(807)
Net financial resources provided (used) by operating activities	(6,084)
Net financial resources used and change in the accumulated net charge against the Fund's authority account, during the year	(6,084)
Accumulated net charge against the Fund's authority account, beginning of year	4,149
Accumulated net charge against the Fund's authority account, end of year	(1,935)

1. AUTHORITY AND PURPOSE

The Telecommunications and Informatics Common Services Revolving Fund ("the Fund") provides network and infrastructure services, voice telecommunications services, satellite services, managed services and information technology security services.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $20,000,000 at any time.

The Fund will use its accumulated surplus during fiscal year 2009-2010 for investments in infrastructure and the development of new products.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• On the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• According to the requirements of Treasury Board Accounting Policies and the standards of the Receiver General for Canada.
• On the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• On the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009/10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The basis of accounting used in these future-oriented financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.

Significant accounting policies are as follows:

a) Revenue recognition
Revenues earned on telecommunications and informatics services are recognized as costs are incurred by the Fund. Revenues earned on goods purchased from telecom suppliers on behalf of customers are recognized when the goods are delivered to other government departments or outside parties.

b) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows:

Category	Estimated useful life
Informatics hardware	3 to 5 years
Informatics software	3 to 5 years
Assets under construction	Once in service, in accordance with asset class

c) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts.

Current legislation does not require the fund to make any contribution for any actuarial deficiency of the Plan.

d) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.

The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off-in-lieu benefits accruing to employees.

e) Accounts receivables and advances
Accounts receivables and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

f) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. OTHER ASSETS

in thousands of dollars
	Forecast 2010
GST refundable advances	3,950
	3,950

6. CAPITAL ASSETS

in thousands of dollars
	Balance beginning of year	Acquisitions	Balance end of year
Informatics hardware	26,786	6,436	33,222
Informatics software	660		660
Assets under construction	6,436	(6,436)	-
	33,882	-	33,882

in thousands of dollars
Accumulated amortization	Balance beginning of year	Current year amortization	Balance end of year
Informatics hardware	20,937	3,248	24,186
Informatics software	632	27	659
	21,569	3,275	24,844
Net	12,313	3,275	9,038

7. NET LIABILITIES

The accumulated surplus is the accumulation of each fiscal year's surpluses, net of deficits, since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars
	Forecast 2010
Accumulated surplus, beginning of year	6,746
Net results	(5,440)
Expenses related to projects subject to funding approval	(3,890)
Accumulated deficit, end of year	(2,592)
Accumulated net charge against the Fund's authority account,end of year	1,935
	(657)

8. REVENUES

in thousands of dollars
	Forecast 2010
Data network infrastructure services	198,250
Voice network services	25,690
IT Security Services	61,500
Email & Directory Services	4,890
	290,330

9. FINANCIAL INSTRUMENTS

The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these future-oriented financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

10. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.

Translation Bureau Revolving Fund - Future-Oriented Financial Statements

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the Revolving Fund management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and can be compared with actual results presented in Public Works and Government Services' Departmental Performance Report.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. In addition, the reader should be informed that the organization is preparing these statements as part of a two year pilot project and readers should be cautioned that this is the first year of the pilot.

MIKE HAWKES, Chief Financial Officer
Finance Branch
Public Works and Government Services Canada

FRANCINE KENNEDY, Chief Executive Officer
Translation Bureau
Public Works and Government Services Canada

Translation Bureau Revolving Fund

Future-Oriented Statement of Authority Provided
For the year ended March 31

in thousands of dollars	Forecast 2010
Net results	(3,868)
Add: items not requiring use of funds	1,506
Operating source (use) of funds	(2,362)
Less: items requiring use of funds
Net capital acquisitions	2,700
Authority provided (used)	(5,062)

Translation Bureau Revolving Fund

Future-Oriented Reconciliation of Unused Authority
As at March 31

in thousands of dollars	Forecast 2010
Debit balance in the Accumulated Net Charge Against the Fund's Authority	5,477
Add:
PAYE charges against the appropriation account after March 31	6,010
Less:
Amounts credited to the appropriation account after March 31	22,084
Allocation from Treasury board	1,500
Net authority provided, end of year	(12,097)
Drawdown Authority limit	10,000
Unused authority carried forward	22,097

Translation Bureau Revolving Fund

Future-Oriented Statement of Financial Position
As at March 31

in thousands of dollars	Forecast 2010
Assets
Current
Cash	114
Accounts receivable
Government of Canada	22,718
External clients	454
Other assets (note 5)	371
Deferred employee termination benefits - current portion	1,500
	25,156
Deferred employee termination benefits	4,271
Capital assets - Net (note 6)	9,331
Total Assets	38,758
Liabilities and Net liabilities
Current
Accounts payable and accrued liabilities
Government of Canada	1,467
Outside parties	12,838
Other liabilities	4,643
	18,948
Allowance for employee termination benefits	29,330
Total liabilities	48,278
Net liabilities (note 7)	(9,520)
Total Liabilities and Net liabilities	38,758

Translation Bureau Revolving Fund

Future-Oriented Statement of Operations and Net Liabilities
For the year ended March 31

in thousands of dollars	Forecast 2010
Revenues (note 9)	228,367
Operating expenses
Salaries and employee benefits	148,723
Employee termination benefits	2,245
Professional and special services	50,449
Corporate and administrative services	10,224
Occupancy Costs	10,680
Transportation and telecommunications	3,263
Amortization	1,805
Utilities, materials and supplies	3,445
Purchased repairs and maintenance	1,165
Rentals	128
Information	79
Other expenses	29
	232,235
Net results	(3,868)
Net liabilities, beginning of year	(11,760)
Net financial resources used (provided) and change in the accumulated net   charge against the Fund's authority account, during the year	6,108
Net liabilities, end of year	(9,520)

Translation Bureau Revolving Fund

Future-Oriented Statement of Cash Flow
For the year ended March 31,

in thousands of dollars	Forecast 2010
Operating activities
Net results	(3,868)
Items not affecting use of the Fund's authority
Amortization	1,805
Provision for employee termination benefits	2,245
	182
Changes in working capital	(2,544)
Receipts on deferred employee termination benefits	1,500
Payments on provision for employee termination benefits	(2,545)
Net financial resources provided (used) by operating activities	(3,408)
Investing activities
Capital assets - acquisitions (note 6)	(2,700)
Net financial resources provided (used) by investing activities	(2,700)
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority account, during the year	(6,108)
Accumulated net charge against the Fund's authority account, beginning of year	630
Accumulated net charge against the Fund's authority account, end of year (note 1)	(5,477)

1. AUTHORITY AND PURPOSE

The Translation Bureau Revolving Fund ("the Fund") is a Special Operating Agency that provides, on a cost recovery basis, translation, technolinguistic and other linguistic services to the judiciary and federal departments and agencies and, upon request, to other governments in Canada and international organizations.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $10,000,000 at any time.

2. UNDERLYING ASSUMPTIONS

These future-oriented statements have been prepared:

• As at September 29, 2008.
• On the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• According to the requirements of Treasury Board Accounting Policies and the standards of the Receiver General for Canada.
• On the basis that the resources earned will enable the Fund to deliver the expected results specified in the Report on Plans and Priorities.
• On the basis of historical costs.

3. VARIATIONS AND CHANGES TO THE FORECAST FINANCIAL INFORMATION

While every attempt has been made to accurately forecast final result for 2009/10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Fund will not be updating the forecasts for any changes to forecast financial information.

4. SIGNIFICANT ACCOUNTING POLICIES

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies and the standards of the Receiver General for Canada. The basis of accounting used in these future-oriented financial statements differs from Canadian generally accepted accounting principles for the public sector because the employee termination benefits liability is based on management's estimate of this liability rather than based on actuarial valuations.

Significant accounting policies are as follows:

a) Forecasted revenue
Revenues from translation services performed by the Fund for other government departments and external clients are recognized using the percentage of completion method based on the proportion of services provided at year end.

Revenues from the Parliamentary Vote for translation services and revenues for interpretation services are recognized as costs are incurred by the Fund.

b) Capital assets
Capital assets are recorded at their acquisition cost and amortized on a straight-line basis over the estimated useful life of each asset as follows:

Category	Estimated useful life
Machinery and equipment	3 to 20 years
Informatics hardware	3 to 5 years
Informatics software	3 to 5 years
Assets under construction	Once in service, in accordance with asset class
Leasehold improvements	Lesser of the remaining term of the occupancy instrument or useful life of the improvement

c) Pension plan
Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefits charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts.

Current legislation does not require the fund to make any contribution for any actuarial deficiency of the Plan.

d) Employee termination benefits, vacation pay and time-off in lieu
Termination benefits accrue to employees over their years of service with the Government of Canada as provided for under collective agreements, and the estimated costs of these benefits are recorded in the accounts as they are earned by the employees.

An accrual was made for severance entitlements on service prior to April 1, 1995. The asset account "Deferred Employee Termination Benefits" represents benefits earned prior to April 1, 1995. The account is drawn down as benefits are paid to the related employees and become recoverable from the Treasury Board. The Treasury Board will continue to reimburse for termination benefits paid by the Bureau, for service prior to April 1, 1995, until March 31, 2010. After March 31, 2010, the Treasury Board has no further obligation to reimburse for benefits paid.

The liability for vacation pay and compensatory leave is calculated at the salary levels in effect at the end of the year for all unused vacation pay and time-off in lieu benefits accruing to employees.

e) Accounts receivables and advances
Accounts receivable and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

f) Measurement uncertainty
The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these future-oriented statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. OTHER ASSETS

in thousands of dollars
	Forecast 2010
Goods and Services Tax refundable advances	344
Other advances	27
	371

6. CAPITAL ASSETS

in thousands of dollars
Capital assets	Balance beginning of year	Transfers	Acquisitions	Write-off	Balance end of year
Machinery and equipment	114				114
Informatics hardware	2,308		930		3,238
Informatics software	14,137	4,021			18,158
Assets under construction	2,251	(4,021)	1,770		0
Leasehold improvements	6,131				6,131
	24,941	0	2,700		27,641

Accumulated amortization	Balance beginning of year	Transfers	Current year amortization	Write-off	Balance end of year
Machinery and equipment	80		9		89
Informatics hardware	1,720		215		1,935
Informatics software	11,181		1,386		12,567
Leasehold improvements	3,524		195		3,719
	16,505		1,805		18,310
Net	8,436				9,331

7. NET LIABILITIES

The accumulated surplus (deficit) is the accumulation of each fiscal year's surpluses and deficits since the inception of the Fund. The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

in thousands of dollars
	Forecast 2010
Accumulated surplus (deficit), beginning of year	(11,129)
Net results	(3,868)
Accumulated surplus (deficit), end of year	(14,997)
Accumulated net charge against the Fund's authority account, end of year	5,477
	(9,520)

8. CONTRACTUAL OBLIGATIONS

The Fund leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the Fund and Public Works and Government Services Canada recording the specific details of an individual occupancy and the terms and conditions that govern the provision and occupancy of the accommodation. Expected future payments for the existing occupancy instruments are as follows:

in thousands of dollars
Year ending March 31, 2010	3,384
2011	2,360
2012	777
2013	515
2014	301
	7,337

9. REVENUES

in thousands of dollars
	Forecast 2010
Translation services	223,767
Interpretation services	3,300
Termium sales	1,200
Other	100
	228,367

10. FINANCIAL INSTRUMENTS

The Fund's financial instruments consist of cash in transit, accounts receivable and accounts payable. The carrying values of these future-oriented financial instruments approximate their fair value because of their short terms to maturity. Unless otherwise noted, it is management's opinion that the Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

11. RELATED PARTY TRANSACTIONS

The Fund is related as a result of common ownership to all federal departments, agencies, and Crown corporations. The fund enters into transactions with these entities in the normal course of business and on normal trade terms. The results of these transactions are included in the future-oriented financial information.