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Since the Portfolio was established in February 2006, steps have been taken to maximize synergies and increase coordination of activities. Since August 2006, Transport Canada and Infrastructure Canada have been managed by a single Deputy Minister. A joint committee of the two departments was established to design the Government of Canada’s Building Canada Plan. A number of similar joint planning initiatives were also introduced to facilitate the integration of the various components of the Portfolio.
At Transport Canada headquarters, an Associate Deputy Minister and six Assistant Deputy Ministers – Policy (2), Programs, Corporate Services, Safety and Security (2) – report to the Deputy Minister, in addition to Corporate Management, comprised of the Communications Group and Departmental General Counsel (functional reporting). Five Regional Directors General – Atlantic, Quebec, Ontario, Prairie and Northern, and Pacific – also report directly to the Deputy Minister. Each of these organizational heads is accountable for the management of his/her organization and for the delivery of results associated with the Program Activities as set out in the Program Activity Architecture.
($ thousands) | ||||||
---|---|---|---|---|---|---|
Program Activity | 2005-2006 Actual | 2006-2007 Actual | 2007–2008 | |||
Main Estimates | Planned Spending | Total Authorities | Actual | |||
Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system | 485,906 | 499,315 | 632,856 | 641,525 | 663,420 | 566,177 |
Policies, Programs and Infrastructure in support of a market-based framework | 333,826 | 145,797 | 101,192 | 101,459 | 198,063 | 123,998 |
Policies and Programs in support of sustainable development | 55,144 | 56,615 | 124,979 | 125,013 | 242,318 | 145,529 |
Canadian Air Transport Security Authority 1 | 428,766 | 441,068 | - | - | - | - |
Bridge Corporation Limited 1 | 31,288 | 32,307 | - | - | - | - |
Marine Atlantic Inc. 1 | 70,233 | 82,080 | - | - | - | - |
VIA Rail Canada Inc. 1 | 169,001 | 169,001 | - | - | - | - |
Total | 1,574,165 | 1,426,183 | 859,027 | 867,997 | 1,103,801 | 835,704 |
Less: Non-respendable revenue | (76,128) | (137,287) | (33,186) | (33,186) | (142,589) | (142,589) |
Plus: Cost of services received without charge | 59,718 | 68,531 | - | 59,668 | 64,401 | 64,401 |
Total Departmental Spending | 1,557,755 | 1,357,427 | 825,841 | 894,479 | 1,025,613 | 757,516 |
Full-time Equivalents | 4,873 | 4,854 | 5,090 | 5,090 | 5,090 | 5,043 |
Due to rounding, columns may not add to total shown.
1. Crown Corporations were moved outside of Transport Canada’s Program Activity Architecture to stand as separate entities within the Ministry. This explains, in large part, the year over year decline in actual spending.
2. The decreased net spending from 2006-2007 to 2007-2008 ($590 million) is due to: an increase in operating expenditures ($39.5 million), an increase in capital spending ($1.4 million), an increase in transfer payments ($86.2 million) and a decrease in vote-netted revenues ($6.8 million).
Vote or Statutory Item |
Truncated Vote or Statutory Wording |
2007-08 ($ thousands) | |||
---|---|---|---|---|---|
Main Estimates | Planned Spending | Total Authorities | Actual | ||
1 | Operating expenditures | 318,413 | 325,083 | 359,523 | 304,312 |
5 | Capital expenditures | 73,260 | 73,260 | 82,833 | 72,695 |
10 | Grants and Contributions | 313,145 | 315,445 | 514,663 | 316,324 |
(S) | Minister of Transport Canada – Salary and motor car allowance | 75 | 75 | 74 | 74 |
(S) | Contributions to employee benefit plans | 68,658 | 68,658 | 65,928 | 65,928 |
(S) | Payments to Canadian National Railway Company in respect of the termination of the collection of tolls on the Victoria Bridge, Montreal and for the rehabilitation work on the roadway portion of the Bridge | 3,300 | 3,300 | 2,505 | 2,505 |
(S) | Payments in respect of the St. Lawrence Seaway agreements | 26,900 | 26,900 | 18,931 | 18,931 |
(S) | Northumberland Strait Crossing subsidy payment | 55,276 | 55,276 | 54,897 | 54,897 |
(S) | Spending of proceeds from the disposal of surplus Crown assets | - | - | 4,409 | - |
(S) | Refunds of amounts credited to revenues in previous years | - | - | 38 | 38 |
|
Total | 859,027 | 867,997 | 1,103,801 | 835,704 |
Due to rounding, columns may not add to total shown.
(S): Statutory
TRANSPORT CANADA
(Unaudited)
For the year ended March 31, 2008
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in these statements rests with departmental management. 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.
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 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.
The financial statements of the department have not been audited.
_________________________________ |
_____________________________________ |
Statement of Operations (Unaudited) For the Year Ended March 31
(in thousands of dollars)
|
||
2008 |
2007 |
|
|
||
Expenses (Note 5) | ||
Infrastructure |
568,632 |
649,489 |
Safe and secure transportation |
627,154 |
621,649 |
Sustainable development |
163,825 |
99,983 |
Ship-Source Oil Pollution Fund and other programs (Note 16) |
1,814 |
1,152 |
|
||
Total expenses |
1,361,425 |
1,372,273 |
Revenues (Note 6) | ||
Infrastructure |
369,152 |
376,649 |
Safe and secure transportation |
68,534 |
66,327 |
Sustainable development |
1,185 |
744 |
Ship-Source Oil Pollution Fund and other programs (Note 16) |
14,511 |
14,108 |
|
||
Total revenues |
453,382 |
457,828 |
|
||
|
||
Net cost of operations |
908,043 |
914,445 |
|
The accompanying notes form an integral part of these financial statements.
Statement of Financial Position (Unaudited) At March 31
(in thousands of dollars)
|
||
2008 |
2007 |
|
|
||
Assets | ||
Financial assets | ||
Accounts receivable and advances (Note 7) |
41,344 |
33,683 |
Loans receivable (Note 8) |
11,915 |
11,316 |
Rent receivable (Note 9) |
56,752 |
64,073 |
Investments (Note 10) |
52,792 |
52,792 |
|
||
Total financial assets |
162,803 |
161,864 |
Non-financial assets | ||
Prepaid expenses |
1,500 |
1,419 |
Inventory |
58,392 |
53,854 |
Tangible capital assets (Note 11) |
2,953,669 |
3,087,333 |
|
||
Total non-financial assets |
3,013,561 |
3,142,606 |
|
||
Total |
3,176,364 |
3,304,470 |
|
||
Liabilities and Equity of Canada | ||
Liabilities | ||
Accounts payable and accrued liabilities (Note 12) |
996,441 |
650,810 |
Vacation pay and compensatory leave |
25,854 |
29,372 |
Deferred revenue |
3,923 |
3,664 |
Employee severance benefits (Note 13) |
81,653 |
79,432 |
Lease obligation for tangible capital assets (Note 14) |
653,829 |
668,565 |
Environmental and contingent liabilities (Note 15) |
204,877 |
227,227 |
|
||
Total liabilities |
1,966,577 |
1,659,070 |
Equity of Canada (Note 16) |
1,209,787 |
1,645,400 |
|
||
|
||
Total |
3,176,364 |
3,304,470 |
Contingent liabilities (Note 15) Contractual obligations (Note 17) The accompanying notes form an integral part of these financial statements. |
Statement of Equity of Canada (Unaudited) At March 31
(in thousands of dollars)
|
||
2008 |
2007 |
|
|
||
Equity of Canada, beginning of year |
1,645,400 |
1,792,872 |
|
||
Net cost of operations |
(908,043) |
(914,445) |
|
||
Current year appropriations used (Note 4) |
835,705 |
701,655 |
|
||
Revenues not available for spending |
(74,440) |
(66,369) |
|
||
Refund of previous year’s expenditures |
(1,896) |
(425) |
|
||
Change in net position of the Consolidated Revenue Fund (Note 4) |
(351,339) |
63,581 |
|
||
Services received without charge from other government departments (Note 18) |
64,400 |
68,531 |
|
||
Equity of Canada, end of year |
1,209,787 |
1,645,400 |
|
||
The accompanying notes form an integral part of these financial statements. |
Statement of Cash Flow (Unaudited) For the Year Ended March 31
(in thousands of dollars)
|
||
2008 |
2007 |
|
|
||
Operating activities |
|
|
Net cost of operations |
908,043 |
914,445 |
Non-cash items |
|
|
Amortization of tangible capital assets |
(169,822) |
(182,113) |
Services received without charge |
(64,400) |
(68,531) |
Loss on disposal and write-down of tangible capital assets |
(20,032) |
(72,023) |
Allowance for environmental and contingent liabilities |
22,349 |
(49,326) |
Prior years’ work-in-progress expensed |
(15,086) |
(3,630) |
Employee severance benefits |
(2,221) |
(5,717) |
Other |
- |
12,377 |
Variations in Statement of Financial Position |
|
|
Increase (decrease) in financial assets |
939 |
35,669 |
Increase (decrease) in inventory and prepaid expenses |
4,619 |
(3,356) |
Increase (decrease) in other liabilities |
(342,371) |
8,774 |
|
||
Cash used by operating activities |
322,018 |
586,569 |
|
||
Capital investment activities |
|
|
Principal repayment of tangible capital leases |
14,736 |
14,095 |
Acquisitions of tangible capital assets |
95,319 |
113,727 |
Transfer of TGA with no monetary impact |
(19,945) |
(8,747) |
Proceeds from disposal of tangible capital assets |
(4,098) |
(7,202) |
|
||
Cash used by capital investment activities |
86,012 |
111,873 |
Financing activities |
|
|
Net cash provided by Government of Canada |
(408,030) |
(698,442) |
|
||
The accompanying notes form an integral part of these financial statements. |
Transport Canada is a department of the Government of Canada named in Schedule 1 of the Financial Administration Act and reports to Parliament through the Minister of Transport, Infrastructure and Communities.
Transport Canada is responsible for the transportation policies, programs and goals set by the Government of Canada, which are supported through the following departmental programs:
Transport Canada delivers its programs and services under numerous legislative and constitutional authorities including the Department of Transport Act, Canada Transportation Act, Aeronautics Act, Canada Marine Act, Canada Shipping Act, Navigable Waters Protection Act, Railway Safety Act, Transportation of Dangerous Goods Act, Motor Vehicle Safety Act, Canadian Air Transport Security Authority Act and Marine Transportation Security Act.
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:
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the assets as follows:
|
|
Asset type |
Amortization period |
|
|
Confederation Bridge |
100 years |
Buildings and works: |
|
Buildings |
20 to 40 years |
Works and Infrastructure |
10 to 40 years |
Machinery and equipment: |
|
Machinery and equipment |
5 to 20 years |
Informatics hardware |
3 to 5 years |
Informatics software |
3 years |
Vehicles: |
|
Ships and boats |
10 to 20 years |
Aircraft |
6 to 20 years |
Motor vehicles |
6 to 35 years |
Leasehold improvements |
Lesser of the remaining term of the lease or useful life of the improvement |
Work-in-progress |
Once in service, in accordance with asset type |
Leased tangible capital assets |
According to the useful life of the asset if a bargain purchase offer exists or over the term of the lease |
|
In 2007-2008, Transport Canada identified tangible capital assets not recorded that had been donated to them. Consequently, the comparative financial statements presented for the year ended March 31, 2007 have been restated. The effect of this adjustment is presented below:
|
|||
2006-2007 (in thousands of dollars ) |
As previously stated |
Effect of the adjustment |
Restated amount |
|
|||
Statement of Financial Position |
|
|
|
Tangible capital assets |
3,063,410 |
23,923 |
3,087,333 |
|
|
|
|
|
|
|
|
Statement of Operations |
|
|
|
Infrastructure revenues |
352,726 |
23,923 |
376,649 |
|
|
|
|
|
|
|
|
Statement of Equity of Canada |
|
|
|
Equity of Canada, end of year |
1,621,477 |
23,923 |
1,645,400 |
|
|
|
|
|
|
|
|
Statement of Cash Flow |
|
|
|
Net cost of operations |
938,368 |
(23,923) |
914,445 |
Acquisitions of tangible assets |
89,804 |
23,923 |
113,727 |
|
Transport 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:
a. Reconciliation of net cost of operations to current year appropriations used
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Net cost of operations |
908,043 |
914,445 |
Adjustments for items affecting net cost of operations but not affecting appropriations: |
|
|
Add (Less): |
|
|
Amortization of tangible capital assets |
(169,822) |
(182,113) |
Services provided without charge |
(64,400) |
(68,531) |
Revenues not available for spending |
74,440 |
66,369 |
Allowance for environmental and contingent liabilities |
22,349 |
(49,326) |
Loss on disposals and write-downs of tangible capital assets |
(20,032) |
(72,023) |
Prior years’ asset under construction expensed |
(15,086) |
(3,630) |
Variation in vacation pay and compensatory leave |
3,518 |
(1,776) |
Employee severance benefits |
(2,221) |
(5,717) |
Justice Canada legal fees |
- |
(6,455) |
Refunds of previous years' expenditures |
1,896 |
425 |
Other |
- |
12,377 |
|
||
738,685 |
604,045 |
|
|
||
Adjustments for items not affecting net cost of operations but affecting appropriations: |
|
|
Add (Less): |
|
|
Variation in prepaid expenses |
81 |
(265) |
Variation in inventory |
4,538 |
(3,091) |
Acquisitions of tangible capital assets |
95,319 |
113,727 |
Transfer of tangible capital assets with no monetary impact |
(19,945) |
(8,747) |
Repayment of lease obligation for tangible capital assets |
14,736 |
14,095 |
Other |
2,291 |
(18,109) |
|
||
97,020 |
97,610 |
|
|
||
Current year appropriations used |
835,705 |
701,655 |
|
b. Appropriations provided and used
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Appropriations provided |
|
|
Vote 1 – Operating expenditures |
359,523 |
301,080 |
Vote 5 – Capital expenditures |
82,834 |
79,124 |
Vote 10 – Transfer payments |
514,664 |
297,173 |
Statutory amounts |
146,782 |
146,853 |
1,103,803 |
824,230 |
|
|
|
|
Less: |
|
|
Appropriations available for future years |
(3,040) |
(1,369) |
Lapsed appropriations: Operating |
(265,058) |
(121,206) |
|
||
Current year appropriations used |
835,705 |
701,655 |
|
c. Reconciliation of net cash provided by Government to current year appropriations used
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Net cash provided by Government |
408,030 |
698,442 |
|
|
|
Revenues not available for spending |
74,440 |
66,369 |
|
|
|
Refunds of previous years' expenditures |
1,896 |
425 |
484,366 |
765,236 |
|
|
|
|
Change in net position in the Consolidated Revenue Fund |
|
|
|
|
|
Justice Canada legal fees |
- |
(6,455) |
Variation in financial assets |
(939) |
(35,669) |
Variation in liabilities |
345,889 |
(10,550) |
Proceeds of disposal – Capital assets |
4,098 |
7,202 |
Other adjustments |
2,291 |
(18,109) |
|
||
351,339 |
(63,581) |
|
|
||
Current year appropriations used |
835,705 |
701,655 |
The following table presents details of expenses by category:
|
||
2008
|
2007
|
|
(in thousands of dollars) |
||
|
||
Other levels of governments within Canada |
149,242 |
165,452 |
Individuals |
67,947 |
741 |
Industry |
66,646 |
46,282 |
Non-profit organizations |
45,110 |
38,183 |
Other countries and international organizations |
182 |
130 |
|
||
Total transfer payments |
329,127
|
250,788
|
|
Salaries and employee benefits |
487,983 |
486,951 |
Amortization of tangible capital assets |
169,822 |
182,113 |
Professional and special services |
136,384 |
192,938 |
Equipment repair and maintenance |
59,954 |
36,362 |
Interest on lease obligation for tangible capital assets |
40,659 |
40,161 |
Travel and relocation |
36,328 |
35,932 |
Accommodation |
25,699 |
25,560 |
Net loss on disposal of tangible capital assets |
20,032 |
60,315 |
Utilities, materials and supplies |
18,285 |
19,808 |
Telecommunications |
7,638 |
7,470 |
Information services – communications |
7,060 |
9,244 |
Payments in lieu of property taxes |
6,907 |
6,958 |
Rentals |
5,956 |
5,227 |
Miscellaneous |
4,096 |
6,283 |
Postage |
3,490 |
3,584 |
Pollution control |
1,814 |
1,152 |
Damage and other claims against the Crown |
191 |
1,427 |
|
||
Total operating expenses |
1,032,298 |
1,121,485 |
|
||
Total expenses |
1,361,425 |
1,372,273 |
|
The following table presents details of revenues by category:
|
||
2008
|
2007
(restated) |
|
(in thousands of dollars)
|
||
|
||
Sales of goods and services: |
|
|
Airport rent |
287,805 |
295,181 |
Rentals and concessions |
42,770 |
26,788 |
Monitoring and enforcement revenues |
40,391 |
36,010 |
Aircraft maintenance and flying services |
34,548 |
34,369 |
Transport facilities user fees |
14,165 |
14,155 |
Miscellaneous |
17,942 |
35,078 |
Pollution control revenues |
14,511 |
14,108 |
Interest |
642 |
642 |
Research and development |
608 |
1,497 |
|
||
Total revenues |
453,382 |
457,828 |
|
The following table presents details of accounts receivable and advances:
|
||
2008
|
2007
|
|
(in thousands of dollars) |
||
|
||
Accounts receivable from other government departments |
17,358 |
17,602 |
Accounts receivable from external parties |
27,057 |
25,440 |
Advances to employees |
304 |
335 |
44,719 |
43,377 |
|
|
|
|
Less: Allowance for doubtful accounts on external accounts receivable |
(3,375) |
(9,694) |
|
||
Total accounts receivable and advances |
41,344 |
33,683 |
|
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Saint. John Harbour Bridge Authority |
22,647 |
22,647 |
Canadian Airport Authorities |
24,330 |
24,330 |
Victoria Harbour |
2,408 |
2,451 |
St. Lawrence Seaway Management Corporation |
168 |
168 |
|
||
49,553 |
49,596 |
|
Less: |
|
|
Valuation allowance |
(20,604) |
(20,604) |
Discounts on loans |
(17,034) |
(17,676) |
|
||
Total Loans |
11,915 |
11,316 |
|
The National Airport System (NAS) consists of Canadian airports considered essential to air transportation in Canada, including 3 airports owned by Territorial Governments. Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities (21) and a municipal government (1).
In fiscal year 2003-04, Transport Canada entered into lease amendments with nine of the Canadian Airport Authorities, which provided for deferral of a portion of the airport rent payable by the Airport Authorities to Transport Canada for the 2003 to 2005 lease years. The total rent deferred for 2003 to 2005 is payable to Transport Canada over ten years beginning in the 2006 lease year. Repayments of $7,321,000 were received in fiscal year 2007-08 ($6,855,000 in 2006-07). Rent receivable was $56,752,000 at March 31, 2008 ($64,073,000 at March 31, 2007).
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Royal Canadian Mint |
40,000 |
40,000 |
Via Rail Canada Inc. |
9,300 |
9,300 |
Parc Downsview Park Inc. |
2,492 |
2,492 |
Ridley Terminals Inc. |
1,000 |
1,000 |
|
||
Total Investments |
52,792 |
52,792 |
|
(in thousands of dollars) | |||||||||||
Cost |
Accumulated Amortization |
2008 |
2007 |
||||||||
|
Opening balance (restated) |
Acquisitions |
Transfer |
Disposals |
Closing balance |
Opening balance |
Amortization |
Disposals |
Closing balance |
||
Land (1) |
221,923 |
22,945 |
- |
20,005 |
c224,863 |
- |
- |
- |
- |
224,863 |
221,923 |
Buildings and works (2) |
3,877,886 |
127 |
30,310 |
40,452 |
3,867,871 |
2,171,782 |
116,643 |
24,482 |
2,263,943 |
1,603,928 |
1,706,104 |
Machinery and equipment (3) |
180,180 |
921 |
13,138 |
5,815 |
188,424 |
112,800 |
20,209 |
5,724 |
127,285 |
61,139 |
67,380 |
Vehicles |
784,904 |
7,157 |
22,547 |
25,967 |
788,641 |
559,782 |
23,377 |
19,703 |
563,456 |
225,185 |
225,122 |
Leasehold improvements |
14,166 |
633 |
473 |
- |
15,272 |
6,680 |
1,405 |
- |
8,085 |
7,187 |
7,486 |
Assets under construction |
121,015 |
63,536 |
(66,468) |
16,831 |
101,252 |
- |
- |
- |
- |
101,252 |
121,015 |
Confederation Bridge |
818,820 |
- |
- |
- |
818,820 |
80,517 |
8,188 |
- |
88,705 |
730,115 |
738,303 |
TOTAL |
6,018,894 |
95,319 |
- |
109,070 |
6,005,143 |
2,931,561 |
169,822 |
49,909 |
3,051,474 |
2,953,669 |
3,087,333 |
Amortization expense for the year ended March 31, 2008 is $169,822 (2007 - $182,113). (1) Includes land for 23 National Airports with a net book value of $158,658 (2007 - $131,743). (2) Includes building and works for 23 National Airports with a net book value of $847,383 (2007 - $941,913). (3) Includes machinery and equipment for 23 National Airports with a net book value of $783 (2007 - $294). |
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Payables to third parties |
803,640 |
523,294 |
Payables to other government departments |
159,338 |
60,231 |
Accrued salaries |
18,765 |
17,200 |
Other |
14,698 |
50,085 |
|
||
Total accounts payable and accrued liabilities |
996,441 |
650,810 |
|
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Accrued benefit obligation, beginning of year |
79,432 |
73,716 |
Expense for the year |
9,323 |
13,080 |
Benefits paid during the year |
(7,102) |
(7,364) |
|
||
Accrued benefit obligation, end of year |
81,653 |
79,432 |
|
Under the Northumberland Strait Crossing Act, the Government of Canada entered into a long-term capital lease arrangement in 1992 and is obligated to pay an annual subsidy of $41,900,000 to the Strait Crossing Finance Inc., a wholly owned corporation of the Province of New Brunswick, for the construction of the Confederation Bridge. The annual payments made by Transport Canada are due on April 1 and will be used to retire $661,000,000 of 4.5 per cent real rate bonds issued in October 1993 by Strait Crossing Finance Inc. to finance the construction of the bridge. Annual payments made by Transport Canada began in 1997 and will continue until 2033. At such time, the ownership of the bridge will be transferred to the Government of Canada.
On April 1, 2007, an annual payment in the amount of $54,897,000 (2007 - $54,265,000) was made. This payment represents payment of principal in the amount of $14,736,000 (2007 – $14,095,000) and interest expense of $40,161,000 (2007 - $40,170,000).
The department has recorded a capital lease obligation of $653,829,000 as of March 31, 2008 ($668,565,000 at March 31, 2007), based on the present value for the future subsidy payments using an interest rate of 6.06% (2007 – 6.06%).
Future minimum annual lease payments are as follows:
|
||
Maturing year |
|
|
(in thousands of dollars) |
||
|
||
2008-2009 |
|
56,066 |
2009-2010 |
|
54,158 |
2010-2011 |
|
54,977 |
2011-2012 |
|
55,807 |
2012-2013 and thereafter |
|
1,323,929 |
|
||
Total future minimum lease payments |
|
1,544,937 |
|
|
|
Less: imputed interest (6.06%) |
|
891,108 |
|
||
Balance of obligations under leased tangible capital assets |
|
653,829 |
|
The department includes in its revenues and expenses certain transactions that legislation requires be earmarked for expenses relating to specified purposes. The department has two such accounts:
a. The Ship-Source Oil Pollution Fund
The Ship-Source Oil Pollution Fund (Fund) was established pursuant to section 702 of the Canada Shipping Act, to record levy tonnage payments for oil carried by ships in Canadian waters. Maritime pollution claims, the fee of the fund administrator, and related oil pollution control expenses, are financed out of the Fund.
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Restricted Ship-source Oil Pollution: |
|
|
|
|
|
Opening balance |
363,783 |
350,843 |
|
|
|
Revenues for the year |
14,463 |
14,092 |
Expenses for the year |
(1,814) |
(1,152) |
|
|
|
|
||
Closing balance |
376,432 |
363,783 |
|
b. Fines for transport of dangerous goods
The Fines for Transport of Dangerous Goods account was established pursuant to the Transportation of Dangerous Goods Act 1992 and related regulations to record fines levied by courts.
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Restricted - Fines for Transport of Dangerous Goods: |
|
|
|
|
|
Opening balance |
615 |
599 |
|
|
|
Revenues |
48 |
16 |
Expenses |
- |
- |
|
|
|
|
||
Closing balance |
663 |
615 |
|
||
|
|
|
Restricted equity of Canada |
377,095 |
364,398 |
|
The nature of Transport Canada’s activities results in some large multi-year contracts and obligations whereby the department is committed to making future payments when the services are performed and goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
|
||||||
(in thousands of dollars) |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 Thereafter |
Total |
|
||||||
Transfer payments |
180,638 |
68,602 |
34,488 |
30,229 |
143,441 |
457,398 |
Tangible capital assets |
17,380 |
4,000 |
- |
- |
- |
21,380 |
Other goods and services |
17,985 |
5,950 |
4,107 |
4,047 |
2,378 |
34,467 |
Software maintenance agreements |
879 |
- |
- |
- |
- |
879 |
Operating leases |
1,629 |
836 |
416 |
424 |
143 |
3,448 |
Other |
763 |
212 |
212 |
212 |
638 |
2,037 |
|
||||||
Total |
219,274 |
79, 600 |
39,223 |
34,912 |
146,600 |
519,609 |
|
Transport Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The department enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, Transport Canada received services, which were obtained without charge from other Government departments as presented below.
During the year Transport Canada received without charge from other departments, accommodation, the employer’s contribution to the health and dental insurance plans, worker's compensation, and legal services. These services without charge have been recognized in the department’s Statement of Operations as follows:
|
||
2008 |
2007 |
|
(in thousands of dollars) |
||
|
||
Accommodation |
25,699 |
25,560 |
Contributions covering employer's share of employees' insurance premiums |
27,561 |
30,631 |
Worker's compensation |
3,757 |
3,802 |
Legal services |
7,383 |
8,538 |
|
||
Total |
64,400 |
68,531 |
|
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, 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.
The following tables were submitted electronically. The electronic tables can be found on the Treasury Board Secretariat’s website at: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.
Table 4: Sources of Re-spendable and Non-Respendable Revenue
Table 6 A: 2007-08 User Fee Reporting – User Fees Act
Table 6 B: 2007-08 External Fee Reporting: Policy on Service Standards for External Fees
Table 9: Details on Transfer Payment Programs (TPPs)
Table 11 A-B: Horizontal Initiatives
Table 12: Sustainable Development Strategy
Table 13: Response to Parliamentary Committees and External Audits
Table 14: Internal Audits and Evaluations
Table 15: Travel Policies