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Section III: Supplementary Information

3.1   Organizational Information

The Privacy Commissioner of Canada is an Officer of Parliament who reports directly to the House of Commons and the Senate. In addition to the Privacy Commissioner, the Office has two Assistant Privacy Commissioners, one responsible for the Privacy Act, the other for the PIPEDA. Since 2004, the Office has had an External Advisory Committee comprised of privacy experts and public sector scholars and practitioners. The Committee meets twice a year and offers expert advice relating to matters of interest to the OPC.

The organization of the OPC, composed of five operational branches supported by two corporate management functions, is as follows:

 

The Investigations and Inquiries Branch is responsible for investigating complaints received from individuals and incidents of mismanagement of personal information. The branch’s Inquiries Division responds to thousands of inquiries annually from the general public and organizations.

The Audit and Review Branch audits organizations to assess their compliance with the requirements set out in the two federal privacy laws. The branch also analyses and provides recommendations on privacy impact assessment reports (PIAs) submitted to the OPC pursuant to the Treasury Board Secretariat Policy on PIAs.

The Research and Analysis Branch is responsible for researching privacy and technology issues to support policy development, investigation and audit, and the public education program. The branch administers the research program, which was launched in 2004 to support research into, and the promotion of, the protection of personal information. The branch supports outreach activities and stakeholder engagement activities.

The Public Education and Communications Branch focuses on providing strategic advice and support for communications and public education activities for the OPC. In addition, the branch plans and implements public education and communications activities, including analyzing public perceptions of privacy issues through media monitoring, public opinion polling, media relations, publications, and the OPC web site.

The Legal Services and Policy Branch provides strategic legal and policy expertise to the OPC on emerging privacy issues in Canada and internationally. It represents the OPC in litigation before the courts and provides advice to the Commissioners on the interpretation and application of the Privacy Act and PIPEDA. The branch provides expert legal support to the operational branches of OPC, including Inquiries & Investigations and Audit & Review, as well as general legal counsel on a variety of corporate matters. It is responsible for monitoring legislative and government program initiatives, analyzing them and advising the Commissioners on appropriate policy positions to protect and advance privacy rights in Canada.

The Human Resources Branch is responsible for the provision of strategic advice, management and delivery of comprehensive human resource management programs in areas such as staffing, classification, staff relations, human resource planning, learning and development, employment equity, official languages and compensation. 

The Corporate Services Branch, headed by the Chief Financial Officer, provides advice to the Commissioners and integrated corporate services to managers and staff including: corporate planning and reporting, finance, information management / technology and general administration.

3.2   Additional Management Achievements

In addition to accomplishments presented in Section 2.1 of this Departmental Performance Report (“Other Activities: Management Excellence”), the OPC has made the following management accomplishments.

During 2006-2007, the two main management priorities of the OPC were: the implementation of the business case that enables the Office to fulfil its mandate effectively, with sufficient resources, and the continued work to strengthen our human resources capacity.

Implementation of the OPC Business Case

Over the course of 2006-2007 the OPC was able to staff the equivalent of 29.5 FTEs, representing an increase of 38% relative to the previous fiscal year.  Although the OPC was unable to staff all the positions identified in the business case, we have recently initiated new and innovative staffing strategies that will help the Office identify, attract and recruit new employees in order to achieve its planned staffing targets for future years.
 
The OPC was also able to acquire and equip new office space and make key investments in its information technology and information management infrastructure.

Human Resources

The OPC has entered an important phase of institutional renewal. Inspired by a leadership philosophy that promotes core Public Service values and ethics, and in compliance with the Public Service Modernization Act, Public Service Employment Act (PSEA), Public Service Labour Relations Act andFinancial Administration Act, the OPC has been working diligently at putting in place systems and processes that provide for a sound staffing management framework. In early May 2006, the Public Service Commission removed the restrictions on the OPC’s staffing authority that had been in place since 2003. The OPC, under its current leadership, has made significant improvements in its staffing systems and practices. With a staffing strategy in place and supported by plans and policies, established communication strategies for management and employees, and a self-monitoring process, the OPC was designated as “ready to conduct staffing under the new Act.”

The OPC continues to work toward the development and implementation of changes to improve the overall management and quality of the workplace, namely significant improvements to the human resource management policies and practices.

• The Office implemented a number of human resource policies in consultation with central agencies and unions, in line with the new PSEA requirements. These policies will guide the organization as it builds on the successes of the past year and continues on its path of institutional renewal.
• An Instrument of Delegation of Human Resource Management was developed and will serve as a tool to inform and guide managers, and enable them to manage their human resources.
• A Strategic Human Resource Plan and a new Staffing Strategy, as well as an Employment Equity Action Plan, will help the OPC achieve its mandate and ensure the recruitment of a highly qualified workforce that is diversified and representative of Canadian society. As well, the OPC started to develop a recruitment strategy for key groups within the Office. This includes a needs analysis and results of past recruitment efforts at the OPC to determine and identify a variety of recruitment alternatives for meeting the needs of the Office while also aligning with the intent of the new PSEA.
• The review and updating of the Human Resource Strategy 2004-2007 began in order to close existing gaps, ensure a consistent coordinated approach in compliance with federal requirements, and summarize key human resource actions for the future. This initiative will serve to position the OPC well in advance of the coming fiscal year as recruitment and retention efforts are ramped up across the organization. It will involve the identification of human resources priorities and a supporting life cycle approach for various human resource functions.
• As part of the OPC’s commitment to increase transparency in the staffing processes, a staff newsletter was developed and is distributed on a monthly basis to all staff.

The OPC made significant strides in the area of organizational learning, including the development of a Learning Strategy with the Canada School of Public Service (CSPS); and training and information sessions in areas such as values-based staffing, language, performance management, employee appraisals, and harassment awareness in the workplace. The OPC has provided briefing sessions at quarterly all-staff meetings, as well as to all senior management and all managers on various aspects of the new PSMA and PSEA. The Learning Strategy and Curriculum with the CSPS enables staff to continue to develop the expertise and competencies required to fulfil their functions, which will position them to take on their new responsibilities and accountabilities. The Learning Strategy has been modified to reflect training requirements related to the new PSEA, including a Senior Management Committee Engagement Session and PSEA training for sub-delegated managers, both of which were offered in March 2006.

Planning and Reporting

With the development and approval in December 2006 of its comprehensive Results and Performance Measurement Framework, the OPC has made the shift from activity-based to results-based planning, management and reporting. Implementation of the new framework over a three-year period has now started. In the last quarter of 2006-2007, the OPC designed the measurement instruments required to start implementation in the next fiscal year. The OPC will take that a step further in 2007-2008 by incorporating its performance measurement framework into branch plans and by implementing the required measurement instruments to start reporting on the basis of results or outcomes at the end of the fiscal year. As well during 2006-2007, the OPC has integrated all aspects of business planning (financial, human resources, IT/IM) at the corporate and branch levels.

To pursue its commitment to management excellence, the OPC conducted its first self-assessment against the Management Accountability Framework (MAF) during 2006-2007. The exercise, which the Office intends to carry out yearly, serves as an annual report card on its state of management and as the basis on which to set goals for continually improving its management processes and practices.

Finance and Administration

The OPC developed or amended the following corporate services policies during 2006-2007: Area of selection policy Corrective action and revocation policy Deployment policy Employment equity policy Informal discussion policy Non-advertised appointment processes policy Informal conflict management system Computer workstations and peripherals Managing electronic mail Use of employer facilities

Since the Office of the Auditor General of Canada began its audits of the OPC in 2003-2004, the Office continue to receive unqualified audit opinions of its financial statements, including the audit of the 2006-2007 financial statements. 

The OPC is continuously enhancing its financial management practices by reviewing, streamlining and strengthening its financial policies and procedures as well as increasing communication and training for OPC staff.

During the year, the Office was able to acquire, fit-up, furnish and equip office spaces for new employees and other resources that were obtained through the business case.

Information Management/ Information Technology (IM/IT)

Several important IM/IT initiatives have been completed or have significantly progressed over the past year. In 2006-2007, the OPC:

• Prepared a Business Continuity Plan and purchased all equipment for OPC’s disaster recovery site;
• Updated its Threat and Risk Assessment framework and began development of measures to strengthen its security posture;
• Surpassed the halfway mark in our Information Management project and began evaluating potential replacements to its case tracking system;
• Secured a research facility for its legal branch;
• Completed zoning of its servers, put in place a server backup strategy, and began development of change management procedures for effective and timely server patching; and
• Acquired new computers and other IT infrastructure to support new employees.

3.3 Resource Tables

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

($ thousands)	2005–2006 Actual	2006–2007
		Main Estimates	Planned Spending	Total Authorities	Actual
Compliance Activities	7,909	10,154	10,154	9,678	9,373
Research and Policy Development	2,094	3,393	3,393	3,701	2,976
Public Outreach	1,628	2,751	2,751	2,654	3,367
Total	11,631	16,298	16,298	16,033	15,716
Less: Non‑respendable revenue	-	N/A	-	N/A	-
Plus: Cost of services received without charge	1,375	N/A	1,854	N/A	1,586
Total Spending	13,006	N/A	18,152	N/A	17,302
Full-time Equivalents	78.5	N/A	125	N/A	108

Table 2:  Resources by Program Activity

($ thousands)	2006-2007
Program Activity	Operating	Contributions	Total
Compliance Activities
Main Estimates	10,154	-	10,154
Planned Spending	10,154	-	10,154
Total Authorities	9,678	-	9,678
Actual Spending	9,373	-	9,373
Research and Policy Development
Main Estimates	3,018	375	3,393
Planned Spending	3,018	375	3,393
Total Authorities	3,326	375	3,701
Actual Spending	2,553	423	2,976
Public Outreach
Main Estimates	2,751	-	2,751
Planned Spending	2,751	-	2,751
Total Authorities	2,654	-	2,654
Actual Spending	3,367	-	3,367

Table 3:  Voted and Statutory Items

Vote or Statutory Item (S)		2006-2007 ($ thousands)
		Main Estimates	Planned Spending	Total Authorities	Actual
45	Program Expenditures	14,460	14,460	14,755	14,446
(S)	Spending of proceeds from the disposal of surplus Crown assets	-	-	8	-
(S)	Contributions to employee benefit plans	1,838	1,838	1,270	1,270
	TOTAL	16,298	16,298	16,033	15,716

Table 4:  Services Received Without Charge

($ thousands)	2006-2007 Actual Spending
Accommodation provided by Public Works and Government Services Canada	863
Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat	629
Payroll Services provided by Public Works and Government Services Canada	4
Audit of the financial statements by the Office of the Auditor General of Canada	90
TOTAL	1,586

Table 5:  Resource Requirements by Branch

(in $ thousands)	2006-2007
Branch / Division	Compliance Activities	Research and Policy Development	Public Outreach	Total
Offices of the Commissioner and Assistant Commissioners
Planned Spending	428	428	428	1,284
Actual Spending	441	441	441	1,323
Investigations and Inquiries
Planned Spending	3,567	-	-	3,567
Actual Spending	3,233	-	-	3,233
Research and Policy
Planned Spending	-	1,713	-	1,713
Actual Spending	-	1,451	-	1,451
Audit and Review
Planned Spending	1,655	-	-	1,655
Actual Spending	1,382	-	-	1,382
Legal Services
Planned Spending	927	397	-	1,324
Actual Spending	926	479	-	1,405
Regional Offices
Planned Spending	162	-	378	540
Actual Spending	-	-	-	-
Communications
Planned Spending	-	-	1,257	1,257
Actual Spending	-	-	1,431	1,431
Corporate Services
Planned Spending	2,811	743	609	4,163
Actual Spending	2,932	562	1,354	4,848
Human Resources
Planned Spending	604	112	79	795
Actual Spending	459	43	141	643
TOTAL
Planned Spending	10,154	3,393	2,751	16,298
Actual Spending	9,373	2,976	3,367	15,716

Table 6:  Travel Policies

As a Schedule I organization under the Financial Administration Act, the OPC follows standard Treasury Board of Canada travel policies, guidelines and directives.

Table 7:  Audited Financial Statements

The OPC’s audited financial statements are prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.  The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting.  Note 3 from the audited financial statements reconciles these two accounting methods.

3.4 Audited Financial Statements

The OPC’s audited financial statements are prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.  The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting.  Note 3 from the audited financial statements reconciles these two accounting methods.

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Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in these statements rests with the management of the Office of the Privacy Commissioner of Canada.  These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

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 to the Public Accounts of Canada and included in the Office’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that the Office’s assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds.  Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Office.

The financial statements of the Office of the Privacy Commissioner of Canada have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

Jennifer Stoddart	Tom Pulcine, CMA
Privacy Commissioner of Canada	Director General, Corporate Services and Chief Financial Officer

Ottawa, Canada
July 19, 2007

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AUDITOR’S REPORT

To the Speaker of the House of Commons and the Speaker of the Senate

I have audited the statement of financial position of the Office of the Privacy Commissioner of Canada as at March 31, 2007 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Office’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Office as at March 31, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Further, in my opinion, the transactions of the Office that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Privacy Act.

Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
July 19, 2007

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Statement of Financial Position

As at March 31 (in thousands of dollars)		2007		2006
Assets
Financial assets
	Due from the Consolidated Revenue Fund	1,303		1,597
	Accounts receivable and advances (Note 4)	692		48
Total financial assets		1,995		1,645
Non-financial assets
	Prepaid expenses	17		47
	Tangible capital assets (Note 5)	1,187		810
Total non-financial assets		1,204		857
TOTAL		3,199		2,502
Liabilities and Equity of Canada
Liabilities
	Accounts payable and accrued liabilities	1,796			1,413
	Accrued employee salaries	286			246
	Vacation pay and compensatory leave	382			370
	Employee severance benefits (Note 6)	1,464			1,282
Total liabilities		3,928			3,311
Equity of Canada (Note 10)		(729)			(809)
TOTAL		3,199			2,502

Contingent liabilities (Note 7)
Contractual obligations (Note 8)

The accompanying notes are an integral part of the financial statements

Jennifer Stoddart	Tom Pulcine, CMA
Privacy Commissioner of Canada	Director General, Corporate Services and Chief Financial Officer

Ottawa, Canada
July 19, 2007

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Statement of Operations

For the year ended March 31 (in thousands of dollars)		2007					2006
		Assess and Investigate	Privacy Education	Research and policy	Total		Total
Operating Expenses
	Salaries and employee benefits	6,507	1,796	1,684	9,987		8,193
	Professional and special services	2,080	1,005	644	3,729		2,397
	Accommodation	604	122	149	875		733
	Transportation and communications	285	207	127	619		483
	Amortization	279	57	68	404		368
	Information	28	367	10	405		168
	Repairs and maintenance	114	23	33	170		157
	Utilities, materials and supplies	80	28	22	130		106
	Rentals	31	11	8	50		79
	Equipment	152	33	37	222		59
	Other	7	1	1	9		4
Total Operating expenses		10,167	3,650	2,783	16,600		12,747
Transfer Payments		-	-	387	387		154
Net cost of operations		10,167	3,650	3,170	16,987		12,901

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

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Statement of Equity of Canada

For the year ended March 31
(in thousands of dollars)		2007		2006
Equity of Canada, beginning of the year		(809)		(577)
	Net cost of operations	(16,987)		(12,901)
	Net cash provided by Government (Note 3c)	15,775		11,680
	Change in Due from Consolidated Revenue Fund	(294)		(386)
	Services received without charge from other government departments (Note 9)	1,586		1,375
Equity of Canada, end of the year		(729)		(809)

The accompanying notes are an integral part of the financial statements.

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Statement of Cash Flow

For the year ended March 31
(in thousands of dollars)		2007		2006
Operating activities
Net cost of operations		16,987		12,901
Non-cash items:
Amortization of tangible assets		(404)		(368)
Services received without charge (Note 9)		(1,586)		(1,375)
Loss on disposal of tangible capital assets		(9)		-
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances		644		(249)
Increase (decrease) in prepaid expenses		(30)		22
Decrease (increase) in liabilities		(617)		476
Cash used by operating activities		14,985		11,407
Capital investment activities
Acquisition of tangible capital assets		790		273
Cash used for capital investment activities		790		273
Net cash provided by Government of Canada		15,775		11,680

The accompanying notes are an integral part of the financial statements

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Notes to the Financial Statements

1. Authority and objectives

The Office of the Privacy Commissioner of Canada (the Office), was created under the Privacy Act, which came into force on July 1, 1983. The Privacy Commissioner is an independent officer of Parliament appointed by the Governor-in-Council following approval of her nomination by resolution of the Senate and the House of Commons. The Office is designated, by Order-in-Council, as a department for purposes of the Financial Administration Act. As such, it is established under the authority of Schedule I.1 of the Act and is funded through annual appropriations. The Commissioner is accountable for, and reports directly to Parliament on the results achieved.

The objectives of the Office of the Privacy Commissioner of Canada are:

• investigating complaints and conducting audits;
• publishing information about personal information-handling practices in the public and private sector;
• conducting research into privacy issues; and
• promoting awareness and understanding of privacy issues by the Canadian public. 

2. Summary of significant accounting policies

These financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

Significant accounting policies are as follows:

(a) Due from the Consolidated Revenue Fund
Due from the Consolidated Revenue Fund (CRF) represents the amount of cash that the Office is entitled to draw from the Consolidated Revenue Fund without further appropriations, in order to discharge its liabilities.

(b)  Parliamentary appropriations
The Office of the Privacy Commissioner of Canada is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Office do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(c) Net cash provided by Government
The Office operates within the Consolidated Revenue Fund, which is administered by the Receiver General for Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

(d) Expenses
Expenses are recorded on the accrual basis:

• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services received without charge from other government departments are recorded as operating expenses at their estimated cost.

(e)  Employee future benefits

1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government of Canada. The Office’s contributions to the Plan are charged to expenses in the year incurred and represent the total obligation of the Office to the Plan. Current legislation does not require the Office to make contributions for any actuarial deficiencies of the Plan.
2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

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

(g) Contingent liabilities
Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(h) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $2,500 or more are recorded at their acquisition cost. The capitalization of software and leasehold improvements has been done on a prospective basis from April 1, 2001.

The 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
Informatics hardware	3 years
Computer software	3 years
Other equipment	10 years
Motor vehicles	10 years
Leasehold improvements	Term of the lease

(i) Measurement uncertainty
The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, 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 contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary appropriations

The Office receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Office has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year appropriations used:
(in thousands of dollars)		2007	2006
Net cost of operations		16,987	12,901
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):
	Services received without charge	(1,586)	(1,375)
	Amortization on tangible capital assets	(404)	(368)
	Revenue not available for spending	89	122
	Vacation pay and compensatory leave	(12)	(10)
	Employee severance benefits	(182)	(2)
		14,892	11,268
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):
	Acquisition of tangible capital assets	790	273
	Change in prepaid expenses	(30)	22
	Other adjustments	64	68
		824	363
Current year appropriations used		15,716	11,631
(b) Appropriations provided and used:
(in thousands of dollars)		2007	2006
	Vote 45 - Program expenditures	14,754	10,744
	Statutory contributions to employee benefit plans	1,270	1,163
		16,024	11,907
	Lapsed Appropriations: Operating	(308)	(276)
Current year appropriations used		15,716	11,631
(c) Reconciliation of net cash provided by Government to current year appropriations used:
(in thousands of dollars)		2007	2006
Net cash provided by Government		15,775	11,680
Revenue not available for spending		89	122
Variation in accounts receivable and advances		(644)	(249)
Variation in accounts payable and accrued liabilities		383	(325)
Variation in accrued employee salaries		40	(163)
Other adjustments		73	68
Current year appropriations used		15,716	11,631

4. Accounts receivable and advances

The following table presents details of accounts receivable and advances:

(in thousands of dollars)	2007	2006
Receivables from other Federal Government departments and agencies	691	-
Receivables from external parties	-	48
Employee advances	1	-
Total	692	48

5.  Tangible capital assets

(in thousands of dollars)	Informatics hardware	Computer software	Other equipment	Motor vehicles	Leasehold improve-ments	Total
Opening cost	1,129	365	519	24	96	2,133
Acquisitions	475	62	226	-	27	790
Disposals	-	-	-	(24)	-	(24)
Closing cost	1,604	427	745	-	123	2,899
Opening accumulated amortization	757	235	280	14	37	1,323
Disposals	-	-	-	(15)	-	(15)
Current year amortization	232	97	52	1	22	404
Closing accumulated amortization	989	332	332	-	59	1,712
Net Book Value – 2007	615	95	413	-	64	1,187
Net Book Value – 2006	372	130	239	10	59	810

Amortization expense for the year ended March 31, 2007 was $404,000 (2006 was $368,000).

6. Employee benefits

(a) Pension benefits
The Office’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Office contribute to the cost of the Plan. The 2006-2007 expense amounts to $935,432 ($860,000 in 2005-2006), which represents approximately 2.2 times 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.

(b) Severance benefits
The Office provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in thousands of dollars)	2007	2006
Accrued benefit obligation, beginning of year	1,282	1,280
Expense for the year	236	131
Benefits paid during the year	(54)	(129)
Accrued benefit obligation, end of year	1,464	1,282

7. Contingent liabilities
Claims and litigation - Claims have been made against the Office in the normal course of operations. Legal proceedings for claims totaling approximately $50,000 were still pending at March 31, 2007. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.  As of March 31, 2007, no amount has been accounted for in the financial statements.

8. Contractual obligations
The nature of the Office’s activities can result in some large multi-year contracts and obligations whereby the department will be obligated to make future payments when the services/goods are received. Included within the 2007-2008 amount is $1,229,630 for goods and services contracts signed in 2006-2007 which extend into 2007-2008.  The remaining balance of $44,058 in 2007-2008 is for operating leases.  The amounts for 2008-2009 through 2011-2012 are all for operating leases (photocopiers).

(in thousands of dollars)	2007-08	2008-09	2009-10	2010-11	2011-12
	1,274	36	35	13	5

9. Related party transactions
The Office is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Office enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office expensed $4,450,384 ($2,659,314 in 2006) from transactions with other government departments, agencies and Crown corporations. These expenses include services received without charge in the amount of $1,585,560 ($1,375,000 in 2006), as presented in part (a).

(a) Services received without charge:
During the year, the Office received without charge from other departments, accommodation, the employer’s contribution to the health and dental insurance plans, payroll services, and audit services. These services without charge have been recognized in the Office’s Statement of Operations as follows:

(in thousands of dollars)	2007	2006
Accommodations provided by Public Works and Government Services Canada	863	733
Contributions covering employer’s share of employees’ insurance premiums and expenditures paid by Treasury Board Secretariat	629	529
Payroll services provided by Public Works and Government Services Canada	4	3
Audit services provided by the Office of the Auditor General of Canada	90	110
Total	1,586	1,375

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

(in thousands of dollars)	2007	2006
Accounts receivable with other government departments and agencies	691	-
Accounts payable to other government departments and agencies	259	468

10. Equity of Canada

The Equity of Canada, which is currently in a deficit position, represents liabilities incurred by the Office, net of capital tangible assets, which have not yet been funded through appropriations. Significant components of this amount are employee severance benefits and vacation pay liabilities. These amounts are expected to be funded by appropriations in future years as they are paid.

3.5   Sources of Additional Information

Legislation Administered by the Privacy Commissioner 

Privacy Act	R.S.C. 1985, ch. P21, amended 1997, c.20, s. 55
Personal Information Protection and Electronic Documents Act	2000, c.5

Statutory Annual Reports, other Publications and Information

Statutory reports, publications and other information are available from the Office of the Privacy Commissioner of Canada, Ottawa, Canada K1A 1H3; tel.: (613) 995-8210 and on the OPC's Web site at www.privcom.gc.ca

• Privacy Commissioner's annual reports
• Report on Plans and Priorities for 2007-2008
• Performance Report to Parliament for the period ending March 31, 2006
• Your Privacy Rights: A Guide for Individuals to the Personal Information Protection and Electronic Documents Act
• Your Privacy Responsibilities: A Guide for Businesses and Organizations to the Personal Information Protection and Electronic Documents Act

Contact for Further Information on the Departmental Performance Report:

Mr. Tom Pulcine
Director General, Corporate Services/Chief Financial Officer
Office of the Privacy Commissioner of Canada
Place de Ville, Tower B
112, Kent St., Suite 300
Ottawa, Ontario  K1A 1H3
Telephone: (613) 996-5336
Facsimile:   (613) 947-6850

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