Financial Statements 2011-2012

The Office of the Registrar of the Supreme Court of Canada

Statement of Management Responsibility Including Internal Control over Financial Reporting
Statement of Financial Position (Unaudited)
Statement of Operations and Departmental Net Financial Position (Unaudited)
Statement of Change in Departmental Net Debt (Unaudited)
Statement of Cash Flows (Unaudited)
Notes to the Financial Statements (Unaudited)
Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting

 

Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2012, and all information contained in these statements rests with the management of the Office of the Registrar of the Supreme Court of Canada (Office). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

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 fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Office's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Office's Departmental Performance Report, is consistent with these financial statements. 

Management is also responsible for maintaining an effective system of Internal Control over Financial Reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Office and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level, based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make necessary adjustments.

The Office will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Internal Control.

In the interim, the Office has undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2012, in accordance with the Treasury Board Policy on Internal Control, and the results and action plan are summarized in the annex.

The financial statements of the Office have not been audited.

 

Roger Bilodeau, Q.C., Registrar
Ottawa, Ontario
August 29, 2012

 

Catherine Laforce, Chief Financial Officer

 

Statement of Financial Position (Unaudited)

As at March 31
(in dollars)

2012 2011
Restated ( note 12)
Liabilities
Accounts payable and accrued liabilities ( note 4) $1,476,389 $1,713,197
Vacation pay and compensatory leave 897,384 768,037
Employee future benefits ( note 5) 2,141,053 2,808,658
Other liabilities ( note 6) 2,096,906 2,005,615
Total net liabilities 6,611,732 7,295,507
 
Financial assets
Due from Consolidated Revenue Fund 3,472,494 3,633,732
Accounts receivable and advances ( note 7) 76,106 91,242
Total gross financial assets 3,548,600 3,724,974
 
Financial assets held on behalf of Government
Accounts receivable and advances ( note 7) (23,651) (28,950)
Total financial assets held on behalf of Government (23,651) (28,950)
 
Total net financial assets 3,524,949 3,696,024
 
Departmental net debt 3,086,783 3,599,483
 
Non-financial assets
Prepaid expenses 149,505 136,338
Tangible capital assets ( note 8) 2,264,662 3,575,358
Total non-financial assets 2,414,167 3,711,696
 
Departmental net financial position $(672,616) $112,213

Contractual obligations (note 9)

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

 

Roger Bilodeau, Q.C., Registrar
Ottawa, Ontario
August 29, 2012

 

Catherine Laforce, Chief Financial Officer

Statement of Operations and Departmental Net Financial Position (Unaudited)

For the Year Ended March 31
(in dollars)

2012
Planned Results
2012 2011
Restated ( note 12)
Expenses
Court operations $24,659,334 $19,537,469 $22,164,901
Payments to the Judges 5,562,830 5,724,347 5,045,383
Internal services 12,680,278 16,687,051 13,999,568
Expenses incurred on behalf of Government (3,406) 341 785
Total expenses 42,899,036 41,949,208 41,210,637
 
Revenues
Sale of information documents and other fees 200,000 151,612 132,489
Pension contribution revenues - 33,545 39,312
Revenues earned on behalf of Government (200,000) (184,220) (165,141)
Total revenues - 937 6,660
 
Net cost of operations before government funding $42,899,036 41,948,271 41,203,977
       
Government funding
Net cash provided by Government   31,531,454 29,827,503
Change in due from Consolidated Revenue Fund   (161,238) 326,244
Services provided without charge by other government departments ( note 10)   9,793,226 9,405,024
Other   - 2
Net cost of operations after government funding   784,829 1,645,204
 
Departmental net financial position - Beginning of year   112,213 1,757,417
 
Departmental net financial position - End of year   $(672,616) $112,213

Segmented information (note 11)

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

Statement of Change in Departmental Net Debt (Unaudited)

For the Year Ended March 31
(in dollars)

2012 2011
Net cost of operations after government funding $784,829 $1,645,204
 
Change due to tangible capital assets
Acquisitions of tangible capital assets 154,937 197,708
Amortization of tangible capital assets (1,465,633) (1,681,939)
Proceeds from disposal of tangible capital assets (937) (7,065)
Net gain (loss) on disposal of tangible capital assets including adjustments 937 3,672
Total change due to tangible capital assets (1,310,696) (1,487,624)
 
Change due to prepaid expenses 13,167 4,856
 
Net increase (decrease) in departmental net debt (512,700) 162,436
 
Departmental net debt - Beginning of year 3,599,483 3,437,047
 
Departmental net debt - End of year $3,086,783 $3,599,483

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

Statement of Cash Flows (Unaudited)

For the Year Ended March 31
(in dollars)

2012 2011
Restated ( note 12)
Operating Activities
Net cost of operations before government funding $41,948,271 $41,203,977
Non-cash items:
Amortization of tangible capital assets (1,465,633) (1,681,939)
Gain (loss) on disposal of tangible capital assets 937 3,670
Services provided without charge from other government departments ( note 10) (9,793,226) (9,405,024)
     
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (9,837) 39,173
Increase (decrease) in prepaid expenses 13,167 4,856
Decrease (increase) in accounts payable and accrued liabilities 236,808 (264,510)
Decrease (increase) in vacation pay and compensatory leave (129,347) (5,217)
Decrease (increase) in employee future benefits 667,605 (163,048)
Decrease (increase) in other liabilities (91,291) (95,078)
Cash used by operating activities 31,377,454 29,636,860
 
Capital investing activities
Acquisitions of tangible capital assets 154,937 197,708
Proceeds from disposal of tangible capital assets (937) (7,065)
Cash used by capital investing activities 154,000 190,643
 
Net Cash provided by Government of Canada $31,531,454 $29,827,503

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

Notes to the Financial Statements (Unaudited)

For the Year Ended March 31

1. Authority and objectives

Created by an Act of Parliament in 1875, the Supreme Court of Canada is Canada's final court of appeal. It serves Canadians by deciding legal issues of public importance, thereby contributing to the development of all branches of law applicable within Canada. The independence of the Court, the quality of its work and the esteem in which it is held both in Canada and abroad contribute significantly as foundations for a secure, strong and democratic country founded on the Rule of Law. In accordance with the Supreme Court Act, the Supreme Court of Canada consists of the Chief Justice and the eight puisne judges. The Supreme Court of Canada is an important national institution, positioned at the pinnacle of the judicial branch of government in Canada.

The Office of the Registrar of the Supreme Court of Canada (Office) provides all necessary services and support for the Court to process, hear and decide cases. It also serves as the interface between litigants and the Court. The Office has a single strategic outcome: The administration of Canada's final court of appeal is effective and independent. This strategic outcome is further supported by three programs: Court Operations; Process Payments of Various Allowances to Supreme Court Judges Pursuant to the Judges Act (Payments to the Judges); and Internal Services.

2. Summary of significant accounting policies

These financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

  1. Parliamentary authorities – The Office is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2011-12 Report on Plans and Priorities. The future-oriented financial statements for 2011-2012 have been restated to reflect the revenues net of non-respendable amounts. This restatement resulted in a $200,000 increase in net costs of operations before government funding. In additions, the future-oriented financial statements have also been reclassified to conform to current year presentation.
  2. 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 Government.
  3. Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further authorities to discharge its liabilities.
  4. Revenues
    • Sales and other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
    • Revenues that are non-respendable are not available to discharge the Office's liabilities. While the Deputy Head is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the Office's gross revenues.
  5. Expenses – Expenses are recorded on the accrual basis:
    • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
    • Services provided without charge from other government departments for accommodation, employer contributions to the health and dental insurance plans, workers' compensation, interpretation services and security services are recorded as operating expenses at their estimated cost.
  6. Employee and federally appointed Supreme Court of Canada judges future benefits
    1. Employee pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Office's contributions to the Plan are charged to expenses in the year incurred and represent its total departmental obligation to the Plan. The Office'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.
    2. Employee severance benefits: Employees entitled to severance benefits under labor contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. 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.
    3. Federally appointed judges pension benefits: Eligible federally appointed judges and their survivors are entitled to fully-indexed annuities providing that the judges meet minimum age and service requirements. The main benefits paid from this plan are recorded on a pay-as-you-go basis. They are included in the Statement of Operations and Departmental Net Financial Position as a component of salaries and benefits, and the judges' contributions are credited to revenues. Contributions made by the Office and the judges pertaining to the portion of the plan that relates to indexation of benefits is recorded in a Supplementary Retirement Benefits Account, which is presented in the Statement of Financial Position as part of Other liabilities, with additional detail provided in note 6. The Office's contribution towards indexation is expensed at the time it is accrued in the Account in accordance with the legislation. The actuarial liability associated with the Judges' Pension Plan is recorded in the financial statements of the Government of Canada, the ultimate sponsor of the Plan.
  7. Accounts receivable and advances are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable and advances where recovery is considered uncertain.
  8. Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The Office does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian reserves and museum collections.

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

    Asset Class Amortization Period
    Machinery and equipment 3 to 10 years
    Computer equipment 3 to 10 years
    Computer software 3 to 10 years
    Office furniture and equipment 5 to 10 years
    Motor vehicles 3 years
    Leasehold improvements 5 years


    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
  9. Measurement of uncertainty – The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee future benefits, allowances for employee vacation and compensatory benefits, employer's contribution to health and dental insurance plans, allowance for doubtful accounts and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Authorities

The Office receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities 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 authorities used
(in dollars)

2012 2011
Restated ( note 12)
Net cost of operations before government funding $41,948,271 $41,203,977
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (1,465,633) (1,681,939)
Gain (loss) on disposal of capital assets 937 3,670
Services provided without charge by other government departments (9,793,226) (9,405,024)
Decrease (increase) in vacation pay and compensatory leave (129,347) (5,217)
Decrease (increase) in employee future benefits 667,605 (163,048)
Refund of prior year's expenditures 58,477 140,708
Total items affecting net cost of operations but not affecting authorities 31,287,084 30,093,127
 
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets 154,937 197,708
Increase (decrease) in prepaid expenses 13,167 4,856
Total items not affecting net cost of operations but affecting authorities 168,104 202,564
 
Current year authorities used $31,455,188 $30,295,691

b. Authorities provided and used
(in dollars)

2012 2011
Restated ( note 12)
Authorities provided:
Vote 50 - Operating expenditures $24,330,899 $23,815,609
Contributions to employee benefits plan 2,707,204 2,727,192
Judges' salaries, allowances and annuities 5,724,347 5,045,422
Proceeds from disposal of Crown assets 8,002 7,091
Less:
Authorities available for future years (937) (7,065)
Lapsed: Operating (1,307,262) (1,292,532)
Lapsed: Proceeds from disposal of Crown assets (7,065) (26)
 
Current year authorities used $31,455,188 $30,295,691

4. Accounts payable and accrued liabilities

The following table presents details of the Office's accounts payable and accrued liabilities:
(in dollars)

2012 2011
Accounts payable to other government departments and agencies $318,750 $543,623
Accounts payable to external parties 545,821 612,501
Total accounts payable 864,571 1,156,124
Accrued liabilities 611,818 557,073
Total accounts payable and accrued liabilities $1,476,389 $1,713,197

5. Employee future benefits

  1. Pension benefits - The Office's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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 2011-2012 expense amounts to $1,946,480 ($1,914,488 in 2010-2011), which represents approximately 1.8 times (1.9 in 2010-2011) the contributions by employees.

    The Office'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.
  2. Severance benefits - The Office provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits has been measured as at March 31.

    As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

    (in dollars)
    2012 2011
    Accrued benefit obligation - Beginning of year $2,808,658 $2,645,610
    Expense for the year 639,049 487,828
    Benefits paid during the year (1,306,654) (324,780)
    Accrued benefit obligation - End of year $2,141,053 $2,808,658

 

6. Other Liabilities

The following table presents details of the Office's other liabilities:
(in dollars)

2012 2011
Trust Account - Security Deposit
Liability - Beginning of year $389,866 $390,235
Deposits 1,500 1,000
Interest 167 148
Reimbursements (1,013) (1,517)
Liability - End of year 390,520 389,866
 
Supplementary Retirement Benefit Account (SRBA)
Liability - Beginning of year 1,615,749 1,520,302
Deposits 59,460 58,639
Interest 31,177 36,808
Liability - End of year 1,706,386 1,615,749
 
Total other liabilities $2,096,906 $2,005,615

Security deposit account was established to record security to the value of $500 deposited by an Appellant with the Registrar of the Supreme Court of Canada in accordance with paragraph 60(1)(b) of the Supreme Court Act. As per section 87 of the Rules of the Supreme Court of Canada, interest is paid on money deposited as security.

The SRBA records contributions made by Judges of the Supreme Court of Canada and the matching contributions made by the Employer in accordance with the SRBA Act and the Judges Act.

7. Accounts receivable and advances

The following table presents details of the Office's accounts receivable and advances balances:

(in dollars)

2012 2011
Restated (note 12)
Receivables from other government departments and agencies $52,530 $60,681
Receivables from external parties 7,630 18,254
Standing advances 16,650 16,650
Subtotal 76,810 95,585
Allowance for doubtful accounts on receivables from external parties (704) (4,343)
Gross accounts receivable 76,106 91,242
Account receivable held on behalf of Government (23,651) (28,950)
Net accounts receivable $52,455 $62,292

8. Tangible capital assets

(in dollars)

Cost

Capital asset class Opening Balance Acquisitions Adjustments (1) Disposals Closing balance
Machinery and equipment $966,504 $7,261 $- $- $973,765
Computer equipment 822,140 34,517 - - 856,657
Computer software 760,991 6,710 - - 767,701
Office furniture and equipment 1,778,274 38,335 32,662 (7,765) 1,841,506
Motor vehicles 162,021 - - - 162,021
Leasehold improvements 9,693,032 33,102 - - 9,726,134
Assets under construction 46,162 35,012 (32,662) - 48,512
Total $14,229,124 $154,937 $- $(7,765) $14,376,296

 

Accumulated Amortization

Capital asset class Opening balance Amortization Adjustments Disposals Closing balance
Machinery and equipment $623,194 $114,652 $- $- $737,846
Computer equipment 687,980 84,017 - - 771,997
Computer software 443,968 85,735 - - 529,703
Office furniture and equipment 1,265,203 92,566 - (7,765) 1,350,004
Motor vehicles 132,440 19,548 - - 151,988
Leasehold improvements 7,500,981 1,069,115 - - 8,570,096
Assets under construction - - - - -
Total $10,653,766 $1,465,633 $- $(7,765) $12,111,634

 

Net Book Value

Capital asset class 2012 2011
Machinery and equipment $235,919 $343,310
Computer equipment 84,660 134,160
Computer software 237,998 317,023
Office furniture and equipment 491,502 513,071
Motor vehicles 10,033 29,581
Leasehold improvements 1,156,038 2,192,051
Assets under construction 48,512 46,162
Total $2,264,662 $3,575,358


(1) Adjustments include assets under construction of $32,662 that were transferred to Office furniture and equipment upon completion of the assets.

9. Contractual obligations

The nature of the Office's activities can result in some large multi-year contracts and obligations whereby the Office will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars)

2013 2014 2015 2016 2017 and thereafter Total
Goods and Services $469,485 $56,783 $4,000

 

$-

$- $530,268
Operating Leases 24,704 - - - - 24,704
Total $494,189 $56,783 $4,000 $- $- $554,972

10. Related party transactions

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

a. Common services provided without charge by other government departments:

During the year, the Office received services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans, workers' compensation coverage, interpretation services and security services. These services provided without charge have been recorded in the Office's Statement of Operations and Departmental Net Financial Position as follows:

(in dollars)

2012 2011
Accommodation $5,329,010 $5,251,877
Security services 3,042,008 2,802,775
Employer's contribution to health and dental insurance plans 1,219,872 1,155,911
Interpretation services 161,975 154,225
Worker's compensation 40,361 40,236
Total $9,793,226 $9,405,024

 

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Office's Statement of Operations and Departmental Net Financial Position.

b. Other transactions with related parties:

(in dollars)

2012 2011
Expenses - Other government departments and agencies $5,612,989 $5,466,396
Revenues - Other government departments and agencies $38,671 $45,027

11. Segmented information

Presentation by segment is based on the Office's program alignment architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main programs, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

(in dollars)

Court Operations Payments to the Judges Internal Services Total 2012 Total 2011
Restated ( note 12)
Expenses
Salaries and employee benefits $12,522,928 $5,197,141 $8,059,898 $25,779,967 $24,981,578
Professional services 1,238,747 48,184 4,395,495 5,682,426 5,602,829
Accommodation 3,806,512 - 1,522,498 5,329,010 5,251,877
Amortization of tangible capital assets - - 1,465,633 1,465,633 1,681,939
Library materials 1,119,195 6,766 1,650 1,127,611 1,096,297
Materials, office supplies and equipment 129,506 36,513 659,414 825,433 956,677
Travel 438,187 429,897 16,632 884,716 771,707
Telecommunications services 21,806 1,921 282,561 306,288 343,681
Equipment rental 38,570 - 106,948 145,518 219,881
Printing services 166,323 1,878 43,926 212,127 173,391
Repairs and maintenance 16,457 1,741 83,899 102,097 81,077
Postage and courier 39,238 306 48,490 88,034 46,551
Other - - 7 7 2,367
Expenses incurred on behalf of Government - - 341 341 785
Total expenses 19,537,469 5,724,347 16,687,392 41,949,208 41,210,637
 
Revenues
Sale of information documents and other fees - - 151,612 151,612 132,489
Pension contribution revenues - 33,545 - 33,545 39,312
Revenues earned on behalf of Government - (33,545) (150,675) (184,220) (165,141)
Total revenues - - 937 937 6,660
 
Net cost of operations before government funding $19,537,469 $5,724,347 $16,686,455 $41,948,271 $41,203,977

12. Accounting changes

During 2011, amendments were made to Treasury Board Accounting Standard 1.2 - Departmental and Agency Financial Statements to improve financial reporting by government departments and agencies. The amendments are effective for financial reporting of fiscal years ending March 31, 2012, and later. The significant changes to the Office's financial statements are described below. These changes have been applied retroactively, and comparative information for 2010-11 has been restated.

Net debt (calculated as liabilities less financial assets) is now presented in the Statement of Financial Position. Accompanying this change, the Office now presents a Statement of Change in Net Debt and no longer presents a Statement of Equity.

Revenues and related accounts receivable are now presented net of non-respensable amounts in the Statement of Operations and Departmental Net Financial Position and Statement of Financial Position. The effect of this change was to increase the net cost of operations after government funding by $184,220 for 2011-2012 ($165,141 for 2010-2011) and decrease total financial assets by $23,651 for 2011-2012 ($28,950 for 2010-2011).

Government funding, as well as the credit related to services provided without charge by other government departments, are now recognized in the Statement of Operations and Departmental Net Financial Position below "Net cost of operations before government funding". In previous years, the Office recognized these transactions directly in the Statement of Equity of Canada. The effect of this change was to decrease the net cost of operations after government funding by $41,163,442 for 2011-2012 ($39,558,773 for 2010-2011).

(in dollars)

2011 As previously stated Effect of changes 2011 Restated
Statement of Financial Position:
Assets held on behalf of Government $- $(28,950) $(28,950)
Departmental financial position 141,163 (28,950) 112,213
 
Statement of Operations and Departmental Net Financial Position:
Revenues 171,801 (165,141) 6,660
Expenses 41,209,852 785 41,210,637
Government funding
Net cash provided by Government - 29,827,503 29,827,503
Change in due from CRF - 326,244 326,244
Services provided without charge by other government departments - 9,405,024 9,405,024
Other - 2 2
Departmental net financial position - Beginning of year $- $1,757,417 $1,757,417

13. Comparative Information

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