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Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in this report rests with departmental management. These statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department’s Departmental Performance Report is consistent with these financial statements.
Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.
Management is supported by the Departmental Audit Committee (DAC). This Committee approves the departmental audit and evaluation plan and oversees the internal audit and evaluation activities in the Department. It also reviews the results of audits and evaluations as well as management responses and action plans developed to address audit or evaluation recommendations.
The financial statements of the department have not been audited.
2008 | 2007 | ||||
---|---|---|---|---|---|
Marketplace | Science, technology & innovation |
Economic development |
Total | Total | |
Expenses | |||||
Transfer payments | |||||
Industry | 1 | 123,804 | (962) | 122,843 | 231,304 |
Other | 7,779 | 270,898 | 208,311 | 486,988 | 496,789 |
Total Transfer Payments | 7,780 | 394,702 | 207,349 | 609,831 | 728,093 |
Operating expenses | |||||
Salaries and employee benefits | 267,093 | 105,842 | 127,712 | 500,647 | 515,195 |
Professional and special services | 54,224 | 17,562 | 25,113 | 96,899 | 91,231 |
Accomodation | 13,864 | 21,627 | 19,963 | 55,454 | 53,312 |
Travel | 11,178 | 2,142 | 4,497 | 17,817 | 20,080 |
Amortization | 9,156 | 4,723 | 1,561 | 15,440 | 18,244 |
Communication | 7,001 | 1,529 | 4,509 | 13,039 | 18,216 |
Furniture and equipment | 6,525 | 4,373 | 2,189 | 13,087 | 17,298 |
Equipment repair and maintenance | 6,270 | 2,567 | 1,949 | 10,786 | 12,778 |
Rentals | 9,024 | 443 | 1,044 | 10,511 | 10,974 |
Utilities, materials and supplies | 3,288 | 4,227 | 2,406 | 9,921 | 9,794 |
Postage | 1,290 | 237 | 375 | 1,902 | 2,887 |
Loss on disposal of capital assets | 52 | 120 | 26 | 198 | 79 |
Other operating expenses | 1,838 | 173 | 10,246 | 12,257 | (1,849) |
Total operating expense | 390,803 | 165,565 | 201,590 | 757,958 | 768,239 |
Total expenses | 398,583 | 560,267 | 408,939 | 1,367,789 | 1,496,332 |
Revenues | |||||
Sales of services | 608,960 | 12,714 | 59,241 | 680,915 | 664,624 |
Dividends | – | – | 21,482 | 21,482 | 20,847 |
Revenue from fines | 14,969 | – | – | 14,969 | 6,857 |
Amortization of discounts | 1,293 | 2,017 | 5,320 | 8,630 | 4,472 |
Other revenue | 339 | 556 | 309 | 1,204 | 3,248 |
Gains on disposal of assets | 301 | 11 | 34 | 346 | 213 |
Total revenues | 625,862 | 15,298 | 86,386 | 727,546 | 700,261 |
Net cost of operations | (227,279) | 544,969 | 322,553 | 640,243 | 796,071 |
The accompanying notes form an integral part of these financial statements. |
2008 | 2007 | |
---|---|---|
ASSETS | ||
Financial assets | ||
Accounts receivables and advances (Note 4) | 207,628 | 215,227 |
Loans (Note 5) | 360,473 | 280,303 |
Investments (Note 6) | 1,066,400 | 1,066,400 |
Total financial assets | 1,634,501 | 1,561,930 |
Non-financial assets | ||
Prepayments | 171 | 234 |
Tangible capital assets (Note 7) | 111,115 | 107,674 |
Total non-financial assets | 111,286 | 107,908 |
TOTAL | 1,745,787 | 1,669,838 |
LIABILITIES | ||
Accounts payable and accrued liabilities (Note 8) | 855,754 | 627,073 |
Vacation and compensatory leave | 22,816 | 24,149 |
Deferred revenue (Note 9) | 958,159 | 1,125,237 |
Allowance for loan guarantee (Note 12) | 301,751 | 409,828 |
Allowance for employee severance benefits (Note 11) | 81,784 | 83,557 |
Other liabilities (Note 10) | 27,743 | 25,163 |
2,248,007 | 2,295,007 | |
Equity of Canada | (502,220) | (625,169) |
TOTAL | 1,745,787 | 1,669,838 |
Contingent liabilities (Note 12) | ||
Contractual obligations (Note 14) | ||
The accompanying notes form an integral part of these financial statements. |
2008 | 2007 | |
---|---|---|
Equity of Canada, beginning of year | (625,169) | (714,151) |
Net cost of operations | (640,243) | (796,071) |
Current year appropriations used (Note 3) | 1,363,914 | 1,189,667 |
Revenue not available for spending | (521,541) | (502,866) |
Change in net position in the Consolidated Revenue Fund (Note 3) | (163,633) | 116,783 |
Services provided without charge by other government departments (Note 15) | 84,452 | 84,829 |
Equity Adjustment (Note 13) | – | (3,360) |
Equity of Canada, end of year | (502,220) | (625,169) |
The accompanying notes form an integral part of these financial statements. |
2008 | 2007 | |
---|---|---|
Operating activities | ||
Net cost of operations | 640,243 | 796,071 |
Non-cash items: | ||
Amortization of tangible capital assets | (15,440) | (18,244) |
Gain on disposal and write-down of tangible capital assets | 149 | 59 |
Loss on write-offs of tangible capital assets | – | – |
Adjustment to tangible capital assets | 1,005 | (421) |
Services provided without charge (Note 15) | (84,452) | (84,829) |
Variations in Statement of Financial Position: | ||
Decrease in liabilities | 47,000 | 43,198 |
Increase in financial asset | 72,572 | 35,562 |
Increase (decrease) in prepaid expenses | (63) | 12 |
Change in equity (Note 13) | – | 3,346 |
Cash used by operating activities | 661,014 | 774,754 |
Capital investment activities | ||
Acquisitions of tangible capital assets | 18,089 | 29,090 |
Proceeds from disposal of tangible capital assets | (363) | (260) |
Cash used by capital investment activities | 17,726 | 28,830 |
Net cash provided by Government of Canada | 678,740 | 803,584 |
The accompanying notes form an integral part of these financial statements. |
The authorities for the programs for which Industry Canada is responsible, are derived from the Department of Industry Act. Many other acts are under the responsibility of the Minister of Industry, and Treasury Board also defines other specific Industry authorities.
Industry Canada aims to help Canadians contribute to the knowledge economy and improve productivity and innovation performance through its three strategic outcomes, which are mutually reinforcing. Sound marketplace frameworks help establish a business environment that supports innovation, investment and entrepreneurial activity. Fostering innovation in science and technology helps ensure that discoveries and breakthroughs happen here in Canada, and that the social and economic benefits of these innovations contribute to improving Canadians’ standard of living and quality of life. Encouraging investment in technology will help Canadian businesses to compete in the global marketplace and increase opportunities for trade. Successful businesses combined with a sound environment form the sustainable communities that attract investment. Taken together, the Department’s strategic outcomes support growth in employment, income and productivity, and promote sustainable development in Canada.
Industry Canada’s activities are delivered at its headquarters in Ottawa as well as in the regions. There are six regional offices with service points located across Canada.
Industry Canada has a number of transfer payment programs through which it provides grants and contributions to recipients in targeted groups and sectors. Each transfer payment program has specific objectives and expected results that support the achievement of Industry Canada’s strategic objectives.
The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.
Significant accounting policies are as follows:
The following expenses are recorded on the accrual basis:
The allowance for losses on outstanding loan guarantees is based upon forecasting models developed by program areas.
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 |
---|---|
Buildings | 15 to 30 years |
Works and Infrastructure | 30 years |
Machinery and equipment | 3 to 10 years |
Vehicles | 5 to 10 years |
Assets under construction | Once in service, in accordance with asset type |
Leasehold improvements | Lesser of the remaining term of the lease or useful life of the improvement |
Industry Canada 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 Department 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:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Net cost of operations | 640,243 | 796,071 |
Adjustments for items affecting net cost of operations but not affecting appropriations: | ||
Add (Less): | ||
Revenue not available for spending | 521,541 | 502,866 |
Repayment of conditionally repayable contributions | 180,015 | 127,356 |
Services provided without charge | (84,452) | (84,829) |
Allowance for loan guarantees | 108,755 | 58,709 |
Bad debts/write-offs/write-downs | (14,221) | 3,261 |
Amortization of tangible capital assets | (15,440) | (18,244) |
Employee severance benefits | 1,773 | (4,216) |
Adjustment of previous years expenditures | 7,930 | 8,455 |
Refund of previous years expenditures | 3,861 | 9,343 |
Transfer payment adjustments | 8,746 | 3,120 |
Justice Canada fees | - | (5,425) |
Allowance for accrued liabilities | (12) | 288 |
Vacation pay and compensatory leave | 903 | 1,387 |
Loss on disposal and write-down of tangible capital assets |
(198) | (154) |
Year-end accrual of transfer payments | (107,757) | (246,000) |
Other | 935 | (2,559) |
1,252,622 | 1,149,429 | |
Adjustments for items not affecting net cost of operations but affecting appropriations: | ||
Add (Less): | ||
Loans, Investments, and Advances | 96,662 | 21,776 |
Deferred revenue | (3,889) | (10,964) |
Acquisitions of tangible capital assets | 18,089 | 29,090 |
Allowance for Vacation Pay | 430 | 336 |
111,292 | 40,238 | |
Current Year Appropriation Used | 1,363,914 | 1,189,667 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Vote 1 - Operating expenditures | 427,254 | 436,697 |
Vote 5 - Capital expenditures | 18,232 | 32,265 |
Vote 10 - Grants and contributions | 760,840 | 682,194 |
Statutory amounts | 417,446 | 235,115 |
1,623,772 | 1,386,271 | |
Less: | ||
Appropriations available for future years | (138,808) | (117,434) |
Lapsed appropriations: Operating | (121,050) | (79,170) |
Current year appropriations used | 1,363,914 | 1,189,667 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Net cash provided by Government of Canada | 678,740 | 803,584 |
Revenue not available for spending | 521,541 | 502,866 |
1,200,281 | 1,306,450 | |
Change in net position in the Consolidated Revenue Fund | ||
Variations in Statement of Financial Position: | ||
Variation in financial assets | (72,572) | (35,562) |
Variation in liabilities | (47,000) | (43,198) |
Variation in prepaid expenses | 63 | (12) |
Other: | ||
Year-end accrual of transfer payments | (107,757) | (246,000) |
Repayment of conditionally repayable contributions |
180,015 | 127,356 |
Allowance for loan guarantees | 108,755 | 58,709 |
Loans, Investments, and Advances | 96,662 | 21,776 |
Misc | 5,467 | 148 |
Total | 163,633 | (116,783) |
Current year appropriation used | 1,363,914 | 1,189,667 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
External | ||
Accounts receivable – other revenue | 44,875 | 66,788 |
Allowance for doubtful accounts | (41,545) | (31,442) |
Accrued receivables | 21,699 | 21,720 |
Employee advances | 114 | 115 |
Other | 2 | 735 |
Total external | 25,145 | 57,916 |
Receivables from other Federal Government departments and agencies | 182,483 | 157,311 |
Total accounts receivable and advances | 207,628 | 215,227 |
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Atlantic Provinces Power Development Act | 1,132 | 1,783 |
Enterprise Development Loans | 110,000 | 110,000 |
Unamortized discount loans | (31,124) | (34,583) |
78,876 | 75,417 | |
Unconditionally repayable contributions | 281,568 | 209,568 |
Less: Unamortized discount | (1,103) | (6,275) |
Less: Allowance for doubtful loans and advances | - | (190) |
Net unconditionally repayable contributions | 280,465 | 203,103 |
Loans and advances on expired loan guarantees | 216,354 | 84,454 |
Less: Allowance for doubtful loans | (216,354) | (84,454) |
Net Loans on expired loan guarantees | – | – |
Total loans | 360,473 | 280,303 |
Atlantic Provinces Power Development Act
Loans have been made to Atlantic Provinces, to assist in the generation of electrical energy by steam driven generators in the provinces, and in the control and transmission of electric energy. The loans bear interest at rates from 4.5% to 8.5% per annum, and are repayable in annual instalments over the next 6 years, with final instalments due March 31, 2014.
Enterprise development loans
These loans are made to industries engaged in manufacturing, processing or service industries in Canada in order to promote the establishment, improvement, growth, efficiency or international competitiveness of such industries, or to assist them in their financial restructuring. There is one interest-free loan outstanding which is repayable at maturity on April 1, 2017.
Unconditionally repayable contributions
The unamortized discount on unconditionally repayable contributions is calculated by applying the 25% rule on an individual loan basis.
Loans and advances on expired loan guarantees
The Department guarantees loans to small business enterprises under the Small Business Loans Act, the Canada Small Business Financing Act, the Capital Leasing Pilot Project and other loan guarantee payments net of recoveries.
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Business Development Bank of Canada | 1,066,400 | 1,066,400 |
Total investments | 1,066,400 | 1,066,400 |
Business Development Bank of Canada
The Corporation is an agent of Her Majesty, reports through the Minister of Industry, and is listed in Part I of Schedule III of the Financial Administration Act. Included in the account are:
For the period ending March 31, 2008, the department received $21,482,202 in dividend revenue from the BDBC ($20,847,118 in 2006–2007).
(in thousands of dollars) | Cost | Accumulated amortization | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Tangible capital asset class | Opening balance | Acquisitions | Disposals/ write-offs/ adjustments* |
Closing balance |
Opening balance |
Amortization | Disposals/ write-offs/ adjustments* |
Closing balance | Current year net book value |
Previous year net book value |
Land | 1,450 | – | – | 1,450 | – | – | – | – | 1,450 | 1,450 |
Buildings | 35,552 | 84 | – | 35,636 | 18,768 | 1,276 | – | 20,044 | 15,592 | 16,784 |
Works and infrastructure | 6,178 | – | – | 6,178 | 3,856 | 209 | – | 4,065 | 2,113 | 2,322 |
Machinery and equipment | 140,688 | 3,817 | 5,678 | 138,827 | 100,150 | 10,254 | 6,789 | 103,615 | 35,212 | 40,538 |
Vehicles | 12,367 | 1,254 | 1,261 | 12,360 | 8,645 | 1,104 | 1,249 | 8,500 | 3,860 | 3,722 |
Assets under construction | 30,475 | 11,469 | 307 | 41,637 | – | – | – | – | 41,637 | 30,475 |
Leasehold improvements | 20,610 | 1,465 | – | 22,075 | 8,227 | 2,597 | – | 10,824 | 11,251 | 12,383 |
Total | 247,320 | 18,089 | 7,246 | 258,163 | 139,646 | 15,440 | 8,038 | 147,048 | 111,115 | 107,674 |
Amortization expense for the year ended March 31, 2008 is $15,440,097 (2006–2007 — $18,244,139).
* Includes primarily disposals, write-offs, but also includes minor adjustments for transfers of capital assets between Industry Canada and other departments.
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
External | ||
Accounts payable | 476,384 | 362,025 |
Accrued salaries & wages | 12,771 | 10,158 |
Accrued liabilities | 345 | 332 |
Transfer payments | 353,757 | 246,000 |
Other external payables | 87 | 91 |
Total external | 843,344 | 618,606 |
Other government departments | 12,410 | 8,467 |
Total accounts payable and accrued liabilities | 855,754 | 627,073 |
The majority of the department's deferred revenues result from the auction of radio license frequencies. These revenues are recognized over a ten-year period. Another main source of deferred revenues comes from examination requests of intellectual property. These fees are charged in advance and recognized as revenue once the exam is completed.
Prime Minister’s Awards were established to record amounts deposited by external parties to be used in support of the Prime Minister’s Awards for Teaching Excellence.
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Opening balance | 1,125,237 | 1,285,782 |
Licence fees received | 203,967 | 203,159 |
Licence fees earned | (375,409) | (373,750) |
(171,442) | (170,591) | |
Fees for trademarks, patents and copyrights received | 32,999 | 31,722 |
Fees for trademarks, patents and copyrights earned | (29,110) | (21,540) |
3,889 | 10,182 | |
Other services of regulatory nature received | 657 | 763 |
Other services of regulatory nature earned | (763) | (767) |
(106) | (4) | |
Prime Minister awards received | 150 | – |
Prime Minister awards disbursed | – | (125) |
150 | (125) | |
Customer deposits received | 56,629 | 55,593 |
Customer deposits disbursed | (56,198) | (55,600) |
431 | (7) | |
Deferred revenue, closing balance | 958,159 | 1,125,237 |
Other liabilities represent funds received from third parties to be disbursed for a specified purpose. Activity during the year in these accounts is as follows:
Opening balance |
Receipts | Payments | Closing balance |
|
---|---|---|---|---|
(in thousards of dollars) | ||||
Cost sharing projects | 910 | 1,344 | 950 | 1,304 |
Securities in Trust, Bankruptcy and Insolvency Act | 83 | – | – | 83 |
Contra — Securities in Trust, Bankruptcy and Insolvency Act | (31) | – | – | (31) |
Unclaimed Dividends and Undistributed Assets | 15,109 | 3,440 | 1,222 | 17,327 |
Petro Canada Enterprises unclaimed shares | 961 | – | 271 | 690 |
Canada Business Corporations Act (CBCA) | 7,306 | 575 | 336 | 7,545 |
Winding-up and Restructuring Act | 727 | – | – | 727 |
Canada/Provinces Business Service Centre | 98 | 400 | 400 | 98 |
Total other liabilities | 25,163 | 5,759 | 3,179 | 27,743 |
Cost sharing projects — Industry Canada partners with other governments and external organizations to deliver programs and services that contribute to an innovative economy. The account was established to record amounts deposited by these partners.
Securities in trust and income from Securities in Trust, Bankruptcy and Insolvency Act — was established to record dividends paid on shares held by a bankrupt stockbroker on behalf of clients. As the shares were not registered in clients’ names, dividends are paid to the last registered owner, in this case, the stockbroker. These dividends are forwarded to the Superintendent of Bankruptcy until such time as rightful owners are identified.
Unclaimed Dividends and Undistributed assets, Bankruptcy and Insolvency Act — This account represents amounts credited to the Receiver General in accordance with the provisions of the Act, pending distribution to creditors.
Petro-Canada Enterprises Inc. — unclaimed shares — was established to record the liability to shareholders who have not presented their shares for payment in accordance with Section 227 of the Canada Business Corporations Act.
Unclaimed Dividends and Undistributed Assets, Canada Business Corporations Act — was established for the purpose of recording liabilities to creditors and shareholders who have not been located. The account is charged when funds are paid to them.
Winding-up and Restructuring Act — records deposits credited to the Receiver General as a result of the final winding-up of the operations of a company, in accordance with sections 138 and 139 of the Winding-up and Restructuring Act, pending distribution to the persons entitled thereto.
Canada/Provinces Business Service Centre — was established to record monies received from provinces under cost-sharing agreements for the Canada-Ontario Business Service Centre.
Both the employees and the department contribute to the cost of the Plan. The 2007–2008 expense amounts to $51,604,353 ($51,811,249 in 2006–2007), which represents approximately 2.1 times (2.2 in 2006–2007) the contributions by employees.
The department's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
The department provides severance benefits to its employees based on eligibility, years of service and finally 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:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Accrued benefit obligation beginning of year | 83,557 | 79,341 |
Expense for the year | 7,859 | 13,297 |
Benefits paid during the year | (9,632) | (9,081) |
Accrued benefit obligation end of year | 81,784 | 83,557 |
Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the department is obligated or likely to be obligated to incur such costs. The department has identified 2 sites where such action is possible and for which a liability of $99,657 ($132,281 in 2006–2007) has been recorded. The department’s ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the department in the year in which they become known.
Claims have been made against the department in the normal course of operations. Legal proceedings for claims totalling approximately $245,207 ($200,000 in 2006–2007) were still pending at March 31, 2008. 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.
The department has guaranteed the following debts:
(in thousands of dollars) | Authorized Limit |
Loan Guarantee Outstanding Balance |
---|---|---|
Enterprise Development Program | 1,200,000 | 212 |
Small Business Loan Act Loan Guarantee Program (SBLA) | 1,838,292 | 34,725 |
Canadian Small Business Financing Act Loan Guarantee Program (SBFA) | 1,290,263 | 741,037 |
Capital Leasing Pilot Project | 15,652 | 14,037 |
Regional Aircraft Credit Facility | 1,500,000 | 178,074 |
An allowance of $301,751,409 has been recorded for estimated losses on outstanding loan guarantees ($409,828,101 in 2006–2007). The expenses related to loan guarantees are reported under other transfer payments in the Statement of Operations.
Enterprise Development Program — Loans are made to Canadian manufacturers and members of the service industry for the purpose of promoting the establishment, growth, efficiency and international competitiveness of Canadian industry. These loans also foster the expansion of Canadian industry and of Canadian trade to a person engaged or about to engage in manufacturing, processing or other commercial activity.
Small Business Loan Act (SBLA) Loan Guarantee Program and Canadian Small Business Financing Act (CSBFA) Loan Guarantee Program — Loans are made directly by approved lenders to small business enterprises, providing for sharing of each individual loan loss, if any, on the basis of 85% government, 15% lender, to an aggregate, per lending institution not exceeding the Minister’s contingent liability, as stated in Section 5 of the SBLA and Section 6(2) of the CSBFA.
The authorized limit represents the Crown’s maximum liability incurred on the aggregate amount of loans made by the lender starting in April 1985 (SBLA) and April 1999 (CSBFA).
The outstanding guarantee for loans made starting in April 1985 (SBLA) and April 1999 (CSBFA) is the lesser of the Crown’s net liability (authorized limit less claims paid by the Crown) or the outstanding loan amounts of the lenders.
Capital Leasing Pilot Project (CLPP) — Capital leases are entered directly by approved lenders to small business enterprises, providing for sharing of each individual lease loss, if any, on the basis of 85% government, 15% lessor to an aggregate, per leasing institution, not exceeding the Minister’s contingent liability based upon the aggregate amount of leases registered per leasing institution, as stated in section 7 of the CLPP.
The authorized limit represents the Crown’s maximum liability incurred on the aggregate amount of the capital leases having been entered or transferred since the period starting in April 2002.
The outstanding guarantee for capital leases entered into in April 2002, is the lesser of the Crown’s net liability or the outstanding capital lease amount of the lessors.
Regional Aircraft Credit Facility — The department has extended loan guarantees on several Air Canada regional jets. Provisioning from the Canada Account Loss Provisioning Pool has been set aside by Finance Canada, manager of the funds. The loan guarantees began in the summer of 2005 and have a life of 15 years.
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Aboriginal Business Canada / First Nations SchoolNet | – | 3,346 |
Office of the Registrar of Lobbyists | – | 14 |
– | 3,360 |
Aboriginal Business Canada / First Nations SchoolNet — Pursuant to the Order in Council P.C. 2006-1351, an equity adjustment in the amount of $3,345,741 was processed to transfer out Aboriginal Business Canada and First Nations SchoolNet. The Order in Council transferred the control and supervision of Aboriginal Business Canada and First Nations SchoolNet from the Department of Industry to the Department of Indian Affairs and Northern Development (DIAND) effective December 1, 2006. The result was a mid-year transfer occurring the same date as the Order in Council, which included accounts receivable, capital assets and loan balances.
Office of the Registrar of Lobbyists — An equity adjustment for $14,335 related to Order in Council P.C. 2006-49, which transferred the control and supervision of the Office of the Registrar of Lobbyists from the Minister of Industry to the President of the Treasury Board effective February 6, 2006. As of April 1, 2006, Office of the Registrar of Lobbyists was reported separately. The adjustment pertained to the transfer of a capital asset that is reported on the Office of the Registrar of Lobbyists’s financial statements.
The nature of the department’s activity results in some large multi-year contracts and obligations whereby the department will be committed to make future payments when the services/goods are rendered. Major commitments that can be reasonably estimated are as follows:
2009 | 2010 | 2011 | 2012 | Thereafter | Total | |
---|---|---|---|---|---|---|
(in thousands of dollars) | ||||||
Transfer payments | 598,085 | 426,470 | 300,659 | 210,629 | 177,673 | 1,713,516 |
Other good and services | 71,102 | 4,378 | 1,156 | 856 | 2,820 | 80,312 |
Other | 10,925 | – | – | – | – | 10,925 |
Total | 680,112 | 430,848 | 301,815 | 211,485 | 180,493 | 1,804,753 |
Industry Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. Industry Canada enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the department received services, which were obtained without charge from other Government departments.
Services provided without charge:
During the year the department received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the department's Statement of Operations as follows:
2008 | 2007 | |
---|---|---|
(in thousands of dollars) | ||
Accomodation provided by Public Works and Government Services Canada (PWGSC) | 55,454 | 53,312 |
Contributions covering employees' share of insurance premiums and expenditures paid by Treasury Board Secretariat | 21,726 | 25,594 |
Workman's compensation coverage provided by Human Resources Social Development Canada | 454 | 627 |
Salary and associated expenditures of legal services provided by Justice Canada | 6,818 | 5,296 |
Total services provided without charge | 84,452 | 84,829 |
The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included as an expense in the department's Statement of Operations.
Comparative figures have been reclassified to conform to the current year's presentation.