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The vision of Public Works and Government Services Canada (PWGSC) is to excel in government operations. We strive to deliver quality services and programs that meet the needs of federal organizations and ensure sound stewardship on behalf of Canadians. This enables other government departments and agencies to offer their programs and services to Canadians. Our two strategic outcomes, quality services and sound stewardship, support the Government of Canada’s outcomes related to the economic, social, international, and government affairs spending areas. (See Canada’s Performance 2007-2008 at http://www.tbs-sct.gc.ca). Under the Treasury Board Secretariat’s whole-of-government framework, PWGSC contributes to all of the Government of Canada’s outcomes by providing services to government departments and agencies. Further information about our organization and services can be found in the following tables:
Table 1: Comparison of Planned to Actual Spending (including FTEs)
Table 2: Voted and Statutory Items
Table 3: Details on Transfer Payment Programs (TPPs)
Table 4: Loans, Investments, and Advances (Non-budgetary)*
Table 5: Sources of Respendable and Non-respendable Revenue*
Table 7: User Fees/External Fees*
Table 8: Details on Project Spending*
Table 9: Status Report on Major Crown Projects*
Table 10: Foundations (Conditional Grants)*
Table 11: Horizontal Initiatives*
Table 12: Sustainable Development Strategy*
Table 13: Response to Parliamentary Committees and External Audits*
Table 14: Internal Audits and Evaluations*
Table 16: Financial Statements of Departments and Agencies (including Agents of Parliament) and Revolving Funds Financial Statements*
(in millions of dollars)
Historical Comparison of Total Planned Spending to Actual Spending | 2007-2008 | |||||
---|---|---|---|---|---|---|
Actual 2005-2006 |
Actual 2006-2007 |
Main Estimates |
Planned Spending |
Total Authorities | Actual | |
GOVERNMENT SERVICES PROGRAM | ||||||
Operating (including Special Purpose Allotments), Capital, Grants and Contributions and Statutory Votes | ||||||
Quality Services | ||||||
Gross Expenditures | 2,083.5 | 2,200.6 | 2,155.3 | 2,592.9 | 2,428.5 | 2,277.4 |
Less: Respendable Revenues | 436.3 | 472.3 | 286.8 | 286.8 | 756.4 | 756.4 |
Federal Accommodation and Holdings | 1,647.2 | 1,728.3 | 1,868.5 | 2,306.1 | 1,672.1 | 1,521.0 |
Gross Expenditures | 912.3 | 984.8 | 892.3 | 892.3 | 892.3 | 1,035.7 |
Less: Respendable Revenues | 912.3 | 984.8 | 892.3 | 892.3 | 892.3 | 1,036.2 |
Real Property Services Revolving Fund | - | - | - | - | - | (0.5) |
Gross Expenditures | 3.7 | 2.8 | 4.0 | 4.0 | 4.0 | 2.5 |
Less: Respendable Revenues | 6.7 | 8.9 | 12.0 | 12.0 | 12.0 | 11.2 |
Real Property Disposition Revolving Fund | (3.0) | (6.1) | (8.0) | (8.0) | (8.0) | (8.7) |
Gross Expenditures | 235.4 | 230.0 | 191.7 | 193.4 | 244.0 | 247.1 |
Less: Respendable Revenues | 55.2 | 60.5 | 42.4 | 42.4 | 82.4 | 82.4 |
Acquisition Services | 180.2 | 169.5 | 149.3 | 151.0 | 161.6 | 164.7 |
Gross Expenditures | 92.6 | 94.3 | 100.4 | 100.4 | 100.4 | 101.5 |
Less: Respendable Revenues | 94.0 | 95.2 | 100.4 | 100.4 | 100.4 | 104.8 |
Optional Services Revolving Fund | (1.4) | (0.9) | - | - | - | (3.3) |
Gross Expenditures | - | - | - | - | - | - |
Less: Respendable Revenues | - | - | - | - | - | - |
Defence Production Revolving Fund | - | - | - | - | - | - |
Gross Expenditures | 501.1 | 455.1 | 348.9 | 394.5 | 466.7 | 464.4 |
Less: Respendable Revenues | 219.0 | 196.0 | 212.5 | 212.5 | 249.6 | 249.6 |
IM/IT Services | 282.1 | 259.0 | 136.4 | 182.0 | 217.1 | 214.7 |
Gross Expenditures | 135.5 | 161.3 | 134.3 | 134.3 | 134.3 | 195.9 |
Less: Respendable Revenues | 131.5 | 168.2 | 134.3 | 134.3 | 134.3 | 196.6 |
Telecommunications Services Revolving Fund | 4.0 | (6.8) | - | - | - | (0.7) |
Gross Expenditures | 11.9 | 10.7 | 10.8 | 10.9 | 11.0 | 10.2 |
Less: Respendable Revenues | 4.8 | 3.4 | 2.2 | 2.2 | 2.4 | 2.4 |
Receiver General Services | 7.1 | 7.3 | 8.6 | 8.7 | 8.6 | 7.8 |
Gross Expenditures | 4.4 | 4.4 | 4.6 | 4.7 | 5.7 | 5.5 |
Less: Respendable Revenues | 2.9 | 2.6 | 2.9 | 2.9 | 3.4 | 3.4 |
Public Service Compensation Services | 1.5 | 1.9 | 1.7 | 1.8 | 2.3 | 2.1 |
Gross Expenditures | 64.3 | 40.0 | 36.2 | 41.1 | 19.0 | 20.3 |
Less: Respendable Revenues | 14.8 | 9.2 | 11.0 | 11.0 | 5.8 | 5.8 |
Government Information Services | 49.5 | 30.8 | 25.2 | 30.1 | 13.2 | 14.5 |
Gross Expenditures | 31.3 | 38.3 | 29.8 | 29.8 | 46.5 | 44.5 |
Less: Respendable Revenues | 15.4 | 22.9 | 22.3 | 22.3 | 28.2 | 28.2 |
Business Integration Services | 15.9 | 15.5 | 7.5 | 7.5 | 18.3 | 16.4 |
Gross Expenditures | 103.2 | 71.4 | 53.7 | 53.7 | 53.7 | 35.3 |
Less: Respendable Revenues | 103.6 | 71.9 | 53.7 | 53.7 | 53.7 | 35.3 |
Consulting and Audit Canada Revolving Fund | (0.4) | (0.5) | - | - | - | - |
Gross Expenditures | 51.4 | 58.2 | 55.7 | 55.7 | 57.7 | 57.8 |
Less: Respendable Revenues | - | - | - | - | - | - |
Translation and Interpretation to Parliament, Conference Interpretation, Terminology | 51.4 | 58.2 | 55.7 | 55.7 | 57.7 | 57.8 |
Gross Expenditures | 195.7 | 211.7 | 214.9 | 214.9 | 221.1 | 218.6 |
Less: Respendable Revenues | 204.9 | 207.1 | 214.9 | 214.9 | 214.9 | 215.3 |
Translation Bureau Revolving Fund | (9.2) | 4.6 | - | - | 6.2 | 3.3 |
Gross Expenditures | - | - | - | - | 10.6 | 10.2 |
Less: Respendable Revenues | - | - | - | - | - | - |
Greening Government Operations Services | - | - | - | - | 10.6 | 10.2 |
Total Quality Services | 2,224.9 | 2,260.8 | 2,244.9 | 2,734.9 | 2,159.7 | 1,999.3 |
Sound Stewardship | ||||||
Gross Expenditures | 58.8 | 53.3 | 43.7 | 44.1 | 76.3 | 70.4 |
Less: Respendable Revenues | 1.7 | 2.0 | 1.9 | 1.9 | 3.3 | 3.3 |
Real Property Stewardship | 57.1 | 51.3 | 41.8 | 42.2 | 73.0 | 67.1 |
Gross Expenditures | 59.8 | 68.1 | 36.7 | 65.7 | 67.5 | 52.1 |
Less: Respendable Revenues | 7.4 | 3.7 | 8.5 | 8.5 | 4.7 | 4.7 |
Supply Operations Stewardship | 52.4 | 64.4 | 28.2 | 57.2 | 62.8 | 47.4 |
Gross Expenditures | 14.5 | 15.0 | 13.9 | 14.1 | 18.8 | 15.0 |
Less: Respendable Revenues | 3.2 | 0.8 | 0.6 | 0.6 | 1.1 | 1.1 |
IM/IT Stewardship | 11.3 | 14.2 | 13.3 | 13.5 | 17.7 | 13.9 |
Gross Expenditures | 130.5 | 146.0 | 143.6 | 144.0 | 150.6 | 146.1 |
Less: Respendable Revenues | 14.2 | 18.0 | 13.4 | 13.5 | 19.5 | 19.5 |
Receiver General Stewardship | 116.3 | 128.0 | 130.3 | 130.5 | 131.1 | 126.6 |
Gross Expenditures | 35.2 | 39.7 | 30.4 | 30.7 | 44.7 | 43.4 |
Less: Respendable Revenues | 6.9 | 7.8 | 3.8 | 3.8 | 6.7 | 6.7 |
Public Service Pay Stewardship | 28.3 | 31.9 | 26.6 | 26.9 | 38.0 | 36.7 |
Gross Expenditures | 68.1 | 75.9 | 55.7 | 56.9 | 99.0 | 97.5 |
Less: Respendable Revenues | 48.9 | 52.6 | 37.9 | 37.9 | 74.2 | 74.2 |
Public Service Pension Stewardship | 19.2 | 23.3 | 17.8 | 19.0 | 24.8 | 23.3 |
Gross Expenditures | 10.2 | 20.3 | 17.5 | 17.5 | 22.1 | 21.5 |
Less: Respendable Revenues | 0.2 | - | - | - | - | - |
Government Information Stewardship | 10.0 | 20.3 | 17.5 | 17.5 | 22.1 | 21.5 |
Gross Expenditures | 44.3 | 40.7 | 34.4 | 34.4 | 45.6 | 45.6 |
Less: Respendable Revenues | 38.2 | 34.6 | 29.9 | 30.0 | 38.6 | 38.6 |
Business Integration Performance Management | 6.1 | 6.1 | 4.5 | 4.4 | 7.0 | 7.0 |
Gross Expenditures | 2.5 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 |
Less: Respendable Revenues | - | - | - | - | - | - |
Translation Stewardship | 2.5 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 |
Gross Expenditures | - | 6.2 | 11.1 | 10.5 | 5.0 | 4.8 |
Less: Respendable Revenues | - | 5.4 | 4.7 | 4.8 | 2.0 | 2.0 |
Greening Government Operations Stewardship | - | 0.7 | 6.4 | 5.7 | 3.0 | 2.7 |
Total Sound Stewardship | 303.2 | 342.6 | 288.8 | 319.3 | 381.9 | 348.6 |
Gross Expenditures | 4,850.2 | 5,031.2 | 4,622.3 | 5,142.9 | 5,227.5 | 5,225.7 |
Less: Respendable Revenues | 2,322.1 | 2,427.9 | 2,088.6 | 2,088.7 | 2,685.9 | 2,877.7 |
DEPARTMENT TOTAL | 2,528.1 | 2,603.4 | 2,533.7 | 3,054.2 | 2,541.7 | 2,347.9 |
Less: Non-Respendable revenues | 67.4 | 63.8 | 20.9 | 20.9 | 1,417.3 | 1,417.3 |
Plus: Cost of services received without charge | 53.5 | 60.2 | 38.3 | 38.3 | 53.8 | 53.8 |
NET COST OF DEPARTMENT | 2,514.2 | 2,599.8 | 2,551.1 | 3,071.6 | 1,178.2 | 984.4 |
FULL-TIME EQUIVALENTS (FTEs) | 12,483 | 12,338 | 12,718 | 11,870 | 12,581 | 12,764 |
Note 1: Totals may not add up due to rounding. |
(in millions of dollars)
Vote or Statutory Item | 2007-2008 | ||||
---|---|---|---|---|---|
Vote or Statutory Wording | Total Main Estimates | Total Planned Spending (Note1) | Total Authorities (Note2) | Actual | |
1 | Gross Expenditures |
2,119.1
|
2,349.2
|
2,084.7
|
1,937.9
|
5 | Capital expenditures |
340.2
|
630.6
|
343.8
|
304.8
|
(S) | Minister of Public Works and Government Services - Salary and motor car allowance |
0.1
|
0.1
|
0.1
|
0.1
|
(S) | Contributions to employee benefit plans |
82.3
|
82.3
|
110.3
|
110.3
|
(S) | Real Property Services Revolving Fund |
-
|
-
|
-
|
(0.5)
|
(S) | Real Property Disposition Revolving Fund |
(8.0)
|
(8.0)
|
(8.0)
|
(8.7)
|
(S) | Optional Services Revolving Fund |
-
|
-
|
-
|
(3.3)
|
(S) | Telecommunications and Services Revolving Fund |
-
|
-
|
-
|
(0.7)
|
(S) | Consulting and Audit Canada Revolving Fund |
-
|
-
|
-
|
-
|
(S) | Translation Bureau Revolving Fund |
-
|
-
|
6.2
|
3.3
|
(S) | Defence Production Revolving Fund |
-
|
-
|
-
|
-
|
(S) | Payment in lieu of taxes to municipalities and other taxing authorities |
-
|
-
|
1.6
|
1.6
|
(S) | Refunds of amounts credited to revenue in previous years |
-
|
-
|
2.7
|
2.7
|
(S) | Spending of proceeds from the disposal of surplus Crown assets | - | - | 0.5 | 0.4 |
DEPARTMENT TOTAL | 2,533.7 | 3,054.2 | 2,541.8 | 2,347.9 | |
(S) = Statutory Note 1: Total Planned Spending is the amount included in the Department's 2007-2008 Report on Plans and Priorities and indicates amounts planned at the beginning of the year. |
(in millions of dollars)
Details on Transfer Payment Programs | 2007-2008 | ||||
---|---|---|---|---|---|
Actual 2005-2006 | Actual 2006-2007 | Planned Spending | Total Authorities | Actual | |
GOVERNMENT SERVICES | |||||
Federal Accommodation and Holdings | |||||
GRANTS | |||||
Municipalities and Other Taxing Authorities (Note 1) | 1.16 | (0.27) | - | 1.60 | 1.60 |
1.16 | (0.27) | - | 1.60 | 1.60 | |
CONTRIBUTIONS | |||||
Argentia Management Authority (Note 2) |
4.00
|
1.25
|
-
|
-
|
-
|
Divestiture of the Trois-Rivières harbourfront park (Note 2) |
5.07
|
-
|
-
|
-
|
-
|
Divestiture of the 3 Dams (Laniel, Kipawa and Des Quinze) |
-
|
44.12
|
-
|
-
|
-
|
Canadian Standards Association |
-
|
0.01
|
-
|
-
|
-
|
9.07
|
45.38
|
-
|
-
|
-
|
|
TOTAL FEDERAL ACCOMMODATION AND HOLDINGS | 10.23 | 45.11 | - | 1.60 | 1.60 |
Total Transfer Payments | 10.23 | 45.11 | - | 1.60 | 1.60 |
Note 1: Funding for Payments to Municipalities and Other Taxing Authorities was devolved to the applicable custodial departments. The figures reported represent payments not recovered by year-end from custodial clients. Note 2: The 2005-2006 Actual amount was adjusted to reflect the amount published in the 2005-2006 Public Accounts of Canada. Note 3: Totals may not add up due to rounding. |
Further information on the following tables 4 to 16, can be found at:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.
We are undertaking three Major Crown Projects to ensure quality services for Canadians and sound stewardship of public assets. Supplementary information can be found at: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp. However, a short description follows for:
A: Parliamentary Precinct Project
B: Pension Modernization Project
C: Shared Travel Services Initiative
i. Long-Term Vision and Plan
Maintaining the Parliamentary Precinct for future generations is a vital service to Canadians. In order to fulfill this responsibility and further our goals of providing quality services and sound stewardship, we worked with the Senate, the House of Commons and the Library of Parliament to revise the Long-Term Vision and Plan (LTVP) for the Parliamentary Precinct. The revised LTVP is comprised of five-year program cycles that are more responsive to changing market and building conditions. The plan was approved by Cabinet in June 2007 and established a comprehensive approach to rehabilitate the heritage buildings, provide additional parliamentary accommodations and create a secure and welcoming environment for parliamentarians, staff, visitors and tourists.
ii. Parliamentary Precinct Project - West Block Renovation Program
The critical first step in the LTVP strategic direction is the full rehabilitation of the West Block. The West Block Renovation Program will transform the West Block and restore the elegance of this significant heritage building. It will pave the way for the Parliamentary Precinct to be used well into the future.
iii. Parliamentary Precinct Project - Wellington Building Renovation Project
The Wellington Building, located at 180 Wellington Street, Ottawa is a recognized federal heritage building and key Parliament Hill asset. Renovations of the building are required for health and safety reasons and involve extensive exterior and interior work. The building and life safety systems are more than 40 years old and have long surpassed their life expectancy. Renovations will include: removing asbestos; upgrading obsolete building systems; meeting new seismic and environmental standards; reinforcing the structure, restoring the stonework and renovating the interior space. The renovated Wellington Building will provide interim accommodations for parliamentarians, as well as committee rooms.
The Government of Canada Pension Modernization Project (GCPMP) is a major component of PWGSC's Transformation of Pension Administration agenda. The purpose of this project is to renew PWGSC's pension administration systems and services and transform its business processes. This will allow PWGSC to provide industry-standard pension administration services to employees, employers and pensioners. The GCPMP began its implementation phase following receipt of Effective Project Approval from Treasury Board in June 2007. The project team is currently completing the design for the first release of the new pension system in the fall of 2008. Preparations for the replacement of the current systems used for administering pension accounts for active members will be fully implemented in July 2010. The GCPMP will also replace the current systems used for administering pension accounts for retired members. The project is on time, under budget and the implementation of all new system releases and business processes is expected to be completed in early 2012.
Our implementation of the Shared Travel Services Initiative (STSI) was a successful highlight of 2007-2008. This corporate travel management services initiative allows government employees to reduce their travel costs through bulk buying and tools such as on-line booking. Such investments in technology are critical to minimize costs of doing government business and return value to Canadian taxpayers. STSI offers fully functional, comprehensive and seamlessly integrated travel services to employees travelling on government business, and allows for better travel expense management. Travel services include the following: full-service travel call centre; on-line pre-trip approvals; on-line reservation service; travel expense claim service; business intelligence service; employee portal; employee traveler service network; and travel credit card.
PWGSC is carrying out two horizontal initiatives of great importance to Canadians: the Sydney Tar Ponds Remediation Project and the Government of Canada Marketplace. A short description of these initiatives follows, and supplementary information can be found at http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/profil_e.asp.
The first initiative addresses the cleaning up the Sydney Tar Ponds and Coke Ovens through the remediation of federally and provincially owned lands that were contaminated as a result of a century of manufacturing steel. The sites are located in the centre of Sydney, Nova Scotia and are considered to be a stain on the area’s world-renowned reputation as a natural masterpiece. The project is in support of the federal government’s sustainable development initiative, recognizing the environmental, social and economic dimensions of the Sydney area. The project will have long-term benefits for all Canadians. The website for the provincial agency delivering the project (the Sydney Tar Pond Agency) is http://www.tarpondscleanup.ca. The website for the Canadian Environmental Assessment Agency is http://www.ceaa-acee.gc.ca/050/viewer_e.cfm?cear_id=8989#Documents.
Our second horizontal initiative, the Government of Canada Marketplace (GoCM), is an electronic catalogue that enables departments and agencies to search for goods and services available through PWGSC standing offers and supply arrangements and to generate order forms for the selected goods and services. E-tools, such as the GoCM, support the Government of Canada Procurement Renewal by automating and simplifying purchasing processes, facilitating standardized reporting on purchasing activities, and maintaining high levels of transparency and accountability. For more information on the GoCM see http://www.tpsgc-pwgsc.gc.ca/app-acq/cae-esc/mdgc-gocm-eng.html.
PWGSC is ensuring a better future for Canadians through greening initiatives. Due to our large and varied portfolio, we make a significant contribution to the development of and support for a more sustainable and healthy environment, while pursuing cost-saving opportunities. By improving resource efficiency, reducing waste, and cutting energy and emissions, we also produce cost savings for taxpayers. Through the commitments in our Sustainable Development Strategy (SDS), PWGSC leverages our expertise and experience to help make the Government of Canada's operations more environmentally, socially and economically sustainable. Specifically, PWGSC phased out 20 of the 47 chlorofluorocarbon (CFC)-containing heating, ventilation, and air-conditioning units. We have also implemented multi-material recycling in 284 of 292 (97%) of Crown-owned facilities, where the infrastructure exists and where recycling is economically feasible. Three new office construction projects are registered with the Canadian Green Building Council and have or are awaiting their LEED® Gold certification: the Greenstone Building in Yellowknife, the Normand Maurice Building in Montréal and the Jean Canfield Building in Charlottetown. More information on SDS 2007 is available at: http://www.tpsgc-pwgsc.gc.ca/sd-env/sds2007/strategy/sdd-sds2007-tc-e.html and http://www.pwgsc.gc.ca/sd-env/text/performance-report-e.html.
Responsibility for the integrity and objectivity of the accompanying consolidated financial statements for the year ended March 31, 2008 and all information contained in these statements rests with Public Works and Government Services Canada (PWGSC) management. These consolidated 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 consolidated financial statements. Some of the information in the consolidated 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 PWGSC financial transactions. Financial information submitted to the Public Accounts of Canada and included in PWGSC's Departmental Performance Report is consistent with these consolidated financial statements.
Management is supported by the Department's Audit and Evaluation Committee, which ensures that the Deputy Minister of Public Works and Government Services Canada has independent and objective advice, guidance, and assurance on the adequacy of the department's risk management, control, and governance processes. The Committee reinforces the independence of the internal audit and evaluation functions. The Committee's oversight responsibilities extend to other core areas of departmental control and accountability including values and ethics, risk management and management control framework.
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 consolidated 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 PWGSC.
The consolidated financial statements of PWGSC have not been audited.
François Guimont, Deputy Minister
Public Works and Government Services Canada
Gatineau, Canada
September 9, 2008
Mike Hawkes, Chief Financial Officer
Public Works and Government Services Canada
Gatineau, Canada
September 9, 2008
For the year ended March 31
(in thousands of dollars)
2008
|
2007
|
|
---|---|---|
Expenses (Note 4) |
Restated (Note 16) |
|
Real Property |
3,131,446
|
3,175,980
|
Information Technology |
624,938
|
530,960
|
Acquisitions |
372,152
|
377,654
|
Receiver General and Public Service Compensation |
242,029
|
273,866
|
Translation Bureau |
204,955
|
212,453
|
Audit Services Canada |
74,810
|
58,739
|
Business Integration |
38,715
|
39,692
|
Consulting, Information and Shared Services |
37,709
|
68,314
|
Greening Government Operations |
4,758
|
2,047
|
Total expenses |
4,731,512
|
4,739,705
|
Revenues (Note 5) |
||
Real Property |
1,938,733
|
1,417,344
|
Information Technology |
294,972
|
232,875
|
Acquisitions |
193,826
|
166,837
|
Translation Bureau |
143,173
|
132,456
|
Receiver General and Public Service Compensation |
104,287
|
86,101
|
Audit Services Canada |
24,611
|
60,054
|
Business Integration |
22,865
|
18,882
|
Consulting, Information and Shared Services |
5,290
|
9,390
|
Greening Government Operations |
1,315
|
712
|
Total revenues | 2,729,072 | 2,124,651 |
Net cost of operations | 2,002,440 | 2,615,054 |
The accompanying notes form an integral part of these consolidated financial statements. |
At March 31
(in thousands of dollars)
2008
|
2007
|
|
---|---|---|
Assets |
Restated (Note 16) |
|
Financial assets | ||
Accounts receivable and advances (Note 6) |
434,111
|
407,655
|
Inventory held for resale |
5,357
|
5,304
|
Seized Property Working Capital Account |
16,520
|
17,461
|
455,988
|
430,420
|
|
Non-financial assets | ||
Prepaid expenses |
6,502
|
7,537
|
Tangible capital assets (Note 7) |
4,567,966
|
4,356,929
|
4,574,468
|
4,364,466
|
|
Total assets |
5,030,456
|
4,794,886
|
Liabilities and Equity of Canada |
||
Liabilities | ||
Accounts payable and accrued liabilities (Note 8) |
516,801
|
615,804
|
Other liabilities (Note 9) |
77,019
|
80,337
|
Lease obligation for tangible capital assets (Note 10) |
2,497,179
|
1,258,966
|
Vacation pay and compensatory leave |
52,029
|
46,420
|
Employee severance benefits (Note 11) |
184,213
|
185,433
|
Contingent liabilities (Note 12) |
319,023
|
324,155
|
Lease inducements |
27,047
|
27,391
|
3,673,311
|
2,538,506
|
|
Equity of Canada (Note 15) |
1,357,145
|
2,256,380
|
Total liabilities and equity of Canada |
5,030,456
|
4,794,886
|
Contingent liabilities (disclosed, not accrued) (Note 12) Contractual obligations (Note 13) |
||
The accompanying notes form an integral part of these consolidated financial statements. |
For the year ended March 31
(in thousands of dollars)
2008
|
2007
|
|
---|---|---|
Restated (Note 16) |
||
Equity of Canada, beginning of year - restated |
2,256,380
|
2,202,701
|
Net cost of operations |
(2,002,440)
|
(2,649,829)
|
Change in accounting policy (Note 16 a) |
-
|
35,306
|
Restatement of tangible capital assets (Note 16 b) |
-
|
(531)
|
Net cost of operations |
(2,002,440)
|
(2,615,054)
|
Current year appropriations used (Note 3) |
2,347,228
|
2,605,650
|
Revenue not available for spending (Note 3) |
(63,504)
|
(49,162)
|
Proceeds on sale-leaseback transactions for capital leases (Note 7) |
(1,353,316)
|
- |
Transfer of activities |
-
|
3,132
|
Change in net position in the Consolidated Revenue Fund (Note 3) |
119,030
|
48,825 |
Services received without charge from other government departments (Note 14) |
53,767
|
60,288
|
Equity of Canada, end of year (Note 15) |
1,357,145
|
2,256,380
|
The accompanying notes form an integral part of these consolidated financial statements. |
For the year ended March 31
(in thousands of dollars)
2008
|
2007
|
|
---|---|---|
Operating activities |
Restated (Note 16) |
|
Net cost of operations |
2,002,440
|
2,615,054
|
Non cash items: | ||
Amortization of tangible capital assets (Note 7) |
(382,103)
|
(371,520)
|
Gain or Loss on disposals / Adjustments of tangible capital assets |
(154)
|
(73,218)
|
Services received without charge from other government departments (Note 14) |
(53,767)
|
(60,288)
|
Transfer of activities |
-
|
(3,132)
|
Economic gain on Sale-leaseback |
163,662
|
-
|
Variations in Consolidated Statement of Financial Position: | ||
Increase in financial assets |
25,568
|
82,251
|
Increase (decrease) in prepaid expenses |
(1,035)
|
1,301
|
(Increase) decrease in liabilities other than lease obligation for tangible capital assets |
103,408
|
(32,860)
|
Cash used by operating activities |
1,858,019
|
2,157,588
|
Capital investment activities |
||
Acquisitions of tangible capital assets (Note 7) |
430,406
|
361,665
|
Payments on lease obligation for tangible capital assets |
114,496
|
86,201
|
Proceeds on disposal of tangible capital assets |
(167)
|
(141)
|
Cash used by capital investment activities |
544,735
|
447,725
|
Financing activities |
||
Proceeds on sale-leaseback transactions for capital leases (Note 7) |
(1,353,316)
|
-
|
Net cash provided by Government of Canada |
(1,049,438)
|
(2,605,313)
|
Cash used by financing activities |
(2,402,754)
|
(2,605,313)
|
The accompanying notes form an integral part of these consolidated financial statements. |
For the year ended March 31
The department of Public Works and Government Services Canada (PWGSC) was established effective June 20, 1996, under the Department of Public Works and Government Services Act. This legislation specifies that PWGSC shall provide common, central and shared services to other government departments and agencies, thereby enabling them to provide programs and services to Canadians. These services are grouped into the following key areas:
The consolidated 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:
(a) Parliamentary appropriations
PWGSC is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to PWGSC do not parallel financial reporting according to Canadian generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Consolidated Statement of Operations and the Consolidated 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.
(b) Consolidation
These consolidated financial statements include the accounts of seven revolving funds as listed below. Each revolving fund prepares a complete set of financial statements annually that are audited and published in the Public Accounts of Canada. The accounts of these revolving funds have been consolidated with those of PWGSC and inter-organizational balances and transactions have been eliminated.
The PWGSC revolving funds are as follows:
(c) Net cash provided by Government
PWGSC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by PWGSC is deposited to the CRF and all cash disbursements made by PWGSC 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) Change in net position in the Consolidated Revenue Fund
This is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by PWGSC. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
(e) Revenues
(f) Expenses
Expenses are recorded on the accrual basis of accounting:
(g) Employee future benefits
(i) Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer plan administered by the Government of Canada. The department's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the department to make contributions for actuarial deficiencies of the Plan.
(ii) 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.
(h) Accounts receivable and advances
Accounts receivable and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
(i) Lease inducements
Lease inducements represent incentives received by PWGSC to enter into a lease. Lease inducements include incentives such as: free rent, cash received to be applied to rent, lump sum cash, leasehold improvements and moving costs paid by lessor. The lease inducements are accounted for as follows:
(j) 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 consolidated financial statements.
(k) Environmental liabilities
Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the consolidated financial statements.
(l) Inventories
Inventories held for resale are physical items that will be sold in the future in the ordinary course of business to parties outside of the government reporting entity.
(m) Tangible capital assets
Betterments and leasehold improvements carried out on buildings and works and infrastructure having an initial cost of $25,000 or more are recorded at their acquisition cost. All other tangible capital assets having an initial cost of $10,000 or more are recorded at their acquisition cost.
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of each asset as follows:
Asset class | Amortization period |
---|---|
Buildings | 25 years |
Works and infrastructure | 40 years |
Machinery and equipment | 3 to 20 years |
Informatics hardware and software | 3 to 5 years |
Vehicles | 7 to 8 years |
Leasehold improvements | Lesser of the remaining term of the lease or useful life of the improvement |
Assets under construction | Once in service, in accordance with asset class |
Leased tangible capital assets | In accordance with asset class if ownership is likely to transfer to PWGSC; otherwise, over the lease term |
(n) Measurement uncertainty
The preparation of these consolidated financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the consolidated financial statements. At the time of preparation of these consolidated statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental 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 consolidated financial statements in the year they become known.
(o) Seized Property Working Capital Account
This account was established by section 12 of the Seized Property Management Act. Expenses incurred, and advances made, to maintain and manage any seized or restrained property and other properties subject to a management order or forfeited to Her Majesty, are charged to this account. This account is credited when expenses and advances to third parties are repaid or recovered and when revenues from these properties or proceeds of their disposal are received and credited with seized cash upon forfeiture.
The total amount authorized to be outstanding in the Seized Property Working Capital Account at any time is $50,000,000.
Any shortfall between the proceeds from the disposition of any property forfeited to Her Majesty and the amounts that were charged to this account and that are still outstanding, is charged to a Seized Property Proceeds Account and credited to this account.
(p) Payments in lieu of taxes to municipalities and other taxing authorities
PWGSC administers the Payments in Lieu of Taxes Program on behalf of all federal departments and agencies under the authority of the Payments in Lieu of Taxes Act.
In accordance with the Constitution Act, the Government of Canada is exempt from property taxes. The Government of Canada voluntarily pays an appropriate share of the costs of local government to municipalities and other taxation authorities having jurisdiction to levy and collect real property tax in locations where federal lands and buildings are situated.
The payments are made to the taxing authorities by PWGSC and are then recovered from each participating federal department.
PWGSC receives most of its funding through annual Parliamentary appropriations. Items recognized in the Consolidated Statement of Operations and the Consolidated Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years.
Accordingly, PWGSC 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) | 2008 | 2007 Restated (Note 16) |
---|---|---|
Net cost of operations |
2,002,440
|
2,615,054
|
Adjustments for items affecting net cost of operations but not affecting appropriations: | ||
Add (less): | ||
Amortization of tangible capital assets (Note 7) |
(382,103)
|
(371,520)
|
Reclassification of assets under construction |
(62,990)
|
(73,786)
|
Services received without charge from other government departments (Note 14) |
(53,767)
|
(60,288)
|
Justice Canada legal services |
-
|
(5,286)
|
Decrease (increase) in lease inducements |
(2,567)
|
(2,306)
|
Revenue (expenses) from Seized Property Proceeds Account (Note 15) |
794
|
(4,375)
|
Vacation pay and compensatory leave |
5,609
|
(3,671)
|
Employee severance benefits |
(1,220)
|
4,198
|
Revenue not available for spending |
63,504
|
49,162
|
Refunds / Adjustments to previous years' expenses |
19,314
|
7,998
|
Decrease (increase) in contingent liabilities |
5,132
|
(4,106)
|
Economic gain on Sale-leaseback (Note 7) |
163,662
|
-
|
Other |
9,940
|
(4,971)
|
(234,692)
|
(468,951)
|
|
Adjustments for items not affecting net cost of operations but affecting appropriations: | ||
Add: | ||
Acquisitions of tangible capital assets (Note 7) |
430,406
|
361,665
|
Acquisitions of assets under construction for capital leases (Note 7) |
31,113
|
-
|
Payments on lease obligation for tangible capital assets |
114,496
|
86,201
|
Other |
3,465
|
11,681
|
579,480
|
459,547
|
|
Current year appropriations used |
2,347,228
|
2,605,650
|
(b) Appropriations provided and used | ||
(in thousands of dollars) |
2008
|
2007
|
Vote 1 - Operating expenditures |
2,084,705
|
2,365,357
|
Vote 5 - Capital expenditures |
343,836
|
297,954
|
Vote 10 - Grants and contributions |
-
|
45,402
|
Statutory items: | ||
Revolving Funds |
382,798
|
378,543
|
Other |
115,274
|
110,090
|
Appropriations provided |
2,926,613
|
3,197,346
|
Less: | ||
Appropriations available for future years |
(384,032)
|
(381,751)
|
Lapsed appropriations |
(194,411)
|
(212,152)
|
Current year budgetary appropriations used |
2,348,170
|
2,603,443
|
Seized Property Management Act |
(942)
|
2,207
|
Current year appropriations used |
2,347,228
|
2,605,650
|
(c) Reconciliation of net cash provided by Government to current year appropriations used | ||
(in thousands of dollars) | 2008 | 2007 Restated (Note 16) |
Net cash provided by Government |
1,049,438
|
2,605,313
|
Revenue not available for spending |
63,504
|
49,162
|
Proceeds on sale-leaseback transactions for capital leases (Note 7) |
1,353,316
|
-
|
Change in net position in the Consolidated Revenue Fund | ||
Change in financial assets |
(25,568)
|
(82,251)
|
Change in prepaid expenses |
1,035
|
(1,301)
|
Change in accounts payable and accrued liabilities |
(99,003)
|
20,397
|
Change in other liabilities |
(3,318)
|
7,156
|
Refunds / Adjustments to previous years' expenses |
19,314
|
7,998
|
Other adjustments |
(11,490)
|
(824)
|
(119,030)
|
(48,825)
|
|
Current year appropriations used |
2,347,228
|
2,605,650
|
The following table presents details of expenses by category:
(in thousands of dollars) | 2008 | 2007 Restated (Note 16) |
---|---|---|
Payments in lieu of taxes to municipalities and other taxing authorities | 458,550 | 468,132 |
Recovery of Payments in lieu of taxes to municipalities and other taxing authorities | (458,600) | (468,073) |
Other grants and contributions |
-
|
45,385 |
Total grants and contributions | (50) | 45,444 |
Cost of goods sold for inventories | 1,131,201 | 1,080,155 |
Salaries and employee benefits | 1,100,005 | 1,098,379 |
Rentals | 742,111 | 695,700 |
Professional and special services | 450,006 | 435,380 |
Repair and maintenance | 420,259 | 413,151 |
Amortization of tangible capital assets | 382,103 | 371,520 |
Interest on capital lease payments and other | 124,952 | 99,665 |
Utilities, material and supplies | 92,015 | 96,942 |
Transportation and communications | 77,981 | 78,522 |
Reclassification of assets under construction | 62,990 | 73,786 |
Machinery and equipment | 50,563 | 31,193 |
Other expenses | 48,282 | 173,157 |
Expenses from Seized Property Proceeds Account (Note 15) | 28,754 | 26,382 |
Information | 15,543 | 15,020 |
Legal services | 4,797 | 5,309 |
Total operating expenses | 4,731,562 | 4,694,261 |
Total expenses | 4,731,512 | 4,739,705 |
The following table presents details of revenues by category:
(in thousands of dollars) | 2008 | 2007 |
---|---|---|
Services of a non-regulatory nature | 1,073,788 | 766,470 |
Sales of goods and information products | 885,423 | 818,287 |
Economic gain on Sale-leaseback (Note 7) | 163,662 |
-
|
Rentals | 423,666 | 390,111 |
Services of a regulatory nature | 106,742 | 80,647 |
Other revenues | 46,101 | 46,989 |
Revenue from Seized Property Proceeds Account (Note 15) | 29,548 | 22,007 |
Gain on disposal of capital assets | 142 | 140 |
Total revenues | 2,729,072 | 2,124,651 |
Services of a non-regulatory nature are mainly comprised of special accommodation and real property services, real property project management services, information technology and telecommunication services, translation services, professional services for consulting and audit services as well as traffic management and central freight.
Services of a regulatory nature are mainly comprised of cost recovery for services provided to administer the Public Service Superannuation Act (PSSA) and for payment services for Receiver General functions.
The following table presents details of accounts receivable and advances:
(in thousands of dollars) | 2008 | 2007 |
---|---|---|
Accounts receivable from other government departments and agencies | 352,848 | 324,506 |
Accounts receivable from external parties | 84,557 | 83,184 |
Other advances | 617 | 617 |
438,022 | 408,307 | |
Less: Allowance for doubtful accounts on external receivables | (3,911) | (652) |
Total | 434,111 | 407,655 |
Cost | ||||
---|---|---|---|---|
(in thousands of dollars) | Opening balance Restated (Note 16) |
Acquisitions | Disposals, write-offs and other adjustments | Closing balance |
Tangible capital assets | ||||
Land | 264,731 |
-
|
(67,113) | 197,618 |
Buildings | 3,440,162 |
-
|
(318,191) | 3,121,971 |
Works and infrastructure | 860,921 |
-
|
631 | 861,552 |
Machinery and equipment | 5,956 | 117 | (10) | 6,063 |
Informatics hardware and software | 190,247 | 4,549 | 2,222 | 197,018 |
Vehicles | 9,605 | 999 | (769) | 9,835 |
Leasehold improvements | 342,650 | 1,425 | 62,036 | 406,111 |
Assets under construction | 956,235 | 423,316 | (276,553) | 1,102,998 |
6,070,507 | 430,406 | (597,747) | 5,903,166 | |
Leased tangible capital assets | ||||
Land | 44,942 |
-
|
-
|
44,942 |
Buildings | 1,630,902 | 165,700 | 261,150 | 2,057,752 |
Informatics equipment | 13,093 |
-
|
(8,407) | 4,686 |
Assets under construction |
-
|
31,113 | 34,003 | 65,116 |
1,688,937 | 196,813 | 286,746 | 2,172,496 | |
Total | 7,759,444 | 627,219 | (311,001) | 8,075,662 |
Accumulated amortization | Net Book Value | |||||
---|---|---|---|---|---|---|
(in thousands of dollars) | Opening balance Restated (Note 16) | Amortization | Disposals, write-offs and other adjustments | Closing balance | 2008 | 2007 Restated (Note 16) |
Tangible capital assets | ||||||
Land |
-
|
-
|
-
|
-
|
197,618 | 264,731 |
Buildings | 2,126,513 | 160,982 | (206,589) | 2,080,906 | 1,041,065 | 1,313,649 |
Works and infrastructure | 334,414 | 23,574 | (17) | 357,971 | 503,581 | 526,507 |
Machinery and equipment | 3,515 | 406 | (10) | 3,911 | 2,152 | 2,441 |
Informatics hardware and software | 140,719 | 21,087 | 909 | 162,715 | 34,303 | 49,528 |
Vehicles | 4,991 | 926 | (638) | 5,279 | 4,556 | 4,614 |
Leasehold improvements | 162,686 | 44,013 | 929 | 207,628 | 198,483 | 179,964 |
Assets under construction |
-
|
-
|
-
|
-
|
1,102,998 | 956,235 |
2,772,838 | 250,988 | (205,416) | 2,818,410 | 3,084,756 | 3,297,669 | |
Leased tangible capital assets | ||||||
Land |
-
|
-
|
-
|
-
|
44,942 | 44,942 |
Buildings | 624,413 | 129,036 | (65,731) | 687,718 | 1,370,034 | 1,006,489 |
Informatics equipment | 5,264 | 2,079 | (5,775) | 1,568 | 3,118 | 7,829 |
Assets under construction |
-
|
-
|
-
|
-
|
65,116 |
-
|
629,677 | 131,115 | (71,506) | 689,286 | 1,483,210 | 1,059,260 | |
Total | 3,402,515 | 382,103 | (276,922) | 3,507,696 | 4,567,966 | 4,356,929 |
Amortization expense for the year ended March 31, 2008 is $382,102,872 ($371,519,675 in 2007).
On October 31, 2007, PWGSC entered into a sale-leaseback agreement for seven buildings resulting in gross proceeds of $1,353,315,920. The leases provide for the lessor to make certain capital improvements to the properties to the benefit of the lessee. These improvements will be recognized as lease inducements as they occur, resulting in a total sale price of $1,411,087,830. As a result of the transaction:
The buildings were treated as capital leases and reflected in the lease obligation for tangible capital assets (Note 10). The economic gain of $163,662,087 resulting from the transaction is presented in Revenues (Note 5).
The following table presents details of accounts payable and accrued liabilities:
(in thousands of dollars) | 2008 | 2007 |
---|---|---|
Accounts payable and accrued liabilities | 403,795 | 505,752 |
Accrued salaries and wages | 41,450 | 38,033 |
Contractors' holdbacks and other | 33,542 | 35,515 |
Accounts payable to other government departments and agencies | 38,014 | 36,504 |
Total | 516,801 | 615,804 |
The following table presents details of other liabilities:
(in thousands of dollars) | 2007 |
Receipts and credits
|
Payments and charges
|
2008 |
---|---|---|---|---|
Seized property - cash | 73,645 | 35,779 | (40,235) | 69,189 |
Deposits on disposals | 262 | 10,068 | (9,690) | 640 |
Contractors' security deposits | 5,400 | 6,507 | (5,661) | 6,246 |
Francophone summits | 30 |
-
|
(11) | 19 |
Credit card special project fund | 1,000 |
-
|
(75) | 925 |
Total | 80,337 | 52,354 | (55,672) | 77,019 |
Seized property - cash
This account was established pursuant to the Seized Property Management Act, to record seized cash. These funds will be deposited to the Consolidated Revenue Fund and credited to the account until returned to the owner or forfeited.
Deposits on disposals
This account was established in accordance with the terms and conditions of the Real Property Disposition Revolving Fund to record receipts on future disposals of properties that are not closed at the end of the year.
Contractors' security deposits
This account was established to record contractors' securities that are required for the satisfactory performance of work in accordance with the Government Contract Regulations.
Francophone summits
This account was established to record funding granted since 1994 by the Agence intergouvernementale de la Francophonie (Paris), which changed its name in 2006 to the Organisation internationale de la Francophonie, for projects involving the development of French and partner languages in order to express scientific and technical modernity.
Credit card - special project fund
This account was established to record funds received from American Express (AMEX) to improve the Travel Card Program.
PWGSC has entered into agreements to rent buildings, land and information technology equipment under capital leases with a cost of $2,172,496,646 and accumulated amortization of $689,285,853 as at March 31, 2008 ($1,688,937,677 and $629,677,336 respectively as at March 31, 2007) (Note 7). The obligations for the upcoming years include the following:
(in thousands of dollars) | 2008 | 2007 |
2008 |
-
|
201,698 |
2009 | 277,213 | 189,135 |
2010 | 273,295 | 184,252 |
2011 | 282,817 | 193,470 |
2012 | 254,524 | 165,142 |
2013 and thereafter | 2,880,139 | 988,425 |
Total future minimum lease payments | 3,967,988 | 1,922,122 |
Less: Imputed interest (weighted average implicit rate 6.942% (8.196% in 2007)) | (1,470,809) | (663,156) |
Present value of obligation under leased tangible capital assets | 2,497,179 | 1,258,966 |
On October 31, 2007 PWGSC entered into an agreement for the sale-leaseback of seven buildings for gross proceeds of $1,353,315,920. The buildings were treated as capital leases and are reflected in PWGSC's long-term capital lease obligations for a present value amount of $1,183,400,000 as at March 31, 2008. This amount is included in the present value of obligation under leased tangible capital asets of $2,497,179,000.
(a) Pension benefits
PWGSC 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/Quebec Pension Plan benefits and they are indexed to inflation.
Both the employees and the department contribute to the cost of the Plan. The 2007-2008 expense amounts to $108,548,526 ($109,043,987,in 2006-2007) which represents approximately 2.1 times (2.2 times in 2007) the contributions by employees.
PWGSC's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the consolidated financial statements of the Government of Canada, as the Plan's sponsor.
(b) Severance benefits
The department 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 and revolving funds. Information about the severance benefits, measured as at March 31 is as follows:
(in thousands of dollars) | 2008 | 2007 Restated (Note 16) |
Accrued benefit obligation, beginning of year | 185,433 | 181,235 |
Transfer of activities |
-
|
(942) |
Expense for the year | 20,421 | 25,509 |
Benefits paid during the year | (21,641) | (20,369) |
Accrued benefit obligation, end of year | 184,213 | 185,433 |
(a) Environmental liabilities - Contaminated sites
Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where PWGSC is obligated or likely to be obligated to incur such costs. The department has identified approximately 215 sites (209 in 2007) where such action is possible and for which a liability of $310,523,035 ($320,154,947 in 2007) has been recorded. Of this amount, $271,425,194,($280,817,000 in 2007) is related to environmental remediation activity for the Sydney Tar Ponds and Coke Ovens remediation project. PWGSC has estimated additional clean-up costs of $134,713,156 ($141,215,487 in 2007) that are not accrued, as these are not considered likely to be incurred at this time. PWGSC'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 PWGSC in the year in which they become known.
(b) Claims and litigation
Claims have been made against PWGSC in the normal course of operations. Legal proceedings for claims totalling approximately $632,600,683 ($342,989,424 in 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 consolidated financial statements. An amount of $8,500,000 ($4,000,000 in 2007) has been accrued in these statements.
The nature of PWGSC’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.
Significant contractual obligations ($10 million or more) that can be reasonably estimated are summarized as follows:
(in thousands of dollars) | 2009 | 2010 | 2011 | 2012 | 2013 and thereafter | Total |
---|---|---|---|---|---|---|
Capital assets | 18,000 | 6,000 | 6,000 |
-
|
-
|
30,000 |
Operating leases | 136,000 | 138,000 | 125,000 | 101,000 | 220,000 | 720,000 |
Purchases | 547,000 | 322,000 | 28,000 | 14,000 | 17,000 | 928,000 |
Total | 701,000 | 466,000 | 159,000 | 115,000 | 237,000 | 1,678,000 |
PWGSC is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. PWGSC enters into transactions with these entities in the normal course of business and on normal trade terms. As a service provider, PWGSC provided accommodation without charge to other government departments throughout the year. In addition, during the year the department received services without charge from other departments. These services received without charge have been recognized in PWGSC's Consolidated Statement of Operations as follows:
(in thousands of dollars) | 2008 | 2007 |
---|---|---|
Employer's contribution to the health and dental insurance plans (excluding Revolving Funds) paid by Treasury Board | 46,557 | 52,330 |
Legal services provided by Justice Canada | 4,797 | 5,309 |
Workers' compensation coverage provided by Human Resources and Social Development Canada | 2,413 | 2,649 |
Total | 53,767 | 60,288 |
A portion of PWGSC's Equity is restricted and earmarked for specific purpose. Transactions related to the Seized Property Proceeds Account are recorded in special categories of revenues, and payments and expenses are charged against such revenues.
The Seized Property Proceeds Account was established pursuant to section 13 of the Seized Property Management Act. The net proceeds received from the disposition of seized and forfeited properties to Her Majesty or fines imposed and also monies received from the government of foreign states pursuant to agreements for the purpose of the Act are to be earmarked for specified purposes. Under the Act, expenses to be charged against the revenues include: operating expenses incurred in carrying out the purpose of the Act, amounts paid as a result of claims and repayments of advances from the Minister of Finance, interest on drawdown from Seized Property Working Capital Account and distribution of the proceeds to other government departments and the Consolidated Revenue Fund.
(in thousands of dollars) | 2008 | 2007 Restated (Note 16) |
---|---|---|
Seized Property Proceeds Account - restricted | ||
Balance, beginning of year | 28,470 | 32,845 |
Revenues | 29,548 | 22,007 |
Expenses | (28,754) | (26,382) |
794 | (4,375) | |
Balance, end of year | 29,264 | 28,470 |
Unrestricted Equity of Canada, end of year | 1,327,881 | 2,227,910 |
Total Equity of Canada, end of year | 1,357,145 | 2,256,380 |
(a) Change in accounting policy
The approach used in the evaluation of the severance benefits was changed in 2007-08 from a calculation based upon years of service and actual salary per employee, to an approach that uses an actuarial rate set by Treasury Board Secretariat. In addition, the termination benefits allowance for the Consulting and Audit Canada Revolving Fund was adjusted as the benefits ceased to be funded by Treasury Board.
(b) Restatement of Tangible capital assets
The Department has adjusted tangible capital assets to include assets identified as part of a divestiture strategy. These assets will remain under the Department's responsibility until they are fully divested to third parties.
Consequently, the comparative consolidated financial statements presented for the year ended March 31, 2007 have been restated. The effect of both changes is presented in the table below.
(in thousands of dollars) | As previously stated | Effect of the adjustment | Revised amount |
---|---|---|---|
Consolidated Statement of Operations | |||
Expenses | |||
Real Property | 3,188,860 | (12,880) | 3,175,980 |
Information Technology | 539,184 | (8,224) | 530,960 |
Acquisitions | 391,950 | (14,296) | 377,654 |
Receiver General and Public Service Compensation | 282,235 | (8,369) | 273,866 |
Translation Bureau | 203,561 | 8,892 | 212,453 |
Business Integration | 39,970 | (278) | 39,692 |
Consulting, Information and Shared Services | 68,520 | (206) | 68,314 |
Audit Services Canada | 58,177 | 562 | 58,739 |
Greening Government Operations | 2,023 | 24 | 2,047 |
Total expenses | 4,774,480 | (34,775) | 4,739,705 |
Net cost of operations | 2,649,829 | (34,775) | 2,615,054 |
Consolidated Statement of Financial Position | |||
Assets | |||
Tangible capital assets (Note 7) | 4,344,749 | 12,180 | 4,356,929 |
Total Assets | 4,782,706 | 12,180 | 4,794,886 |
Liabilities | |||
Employee severance benefits (Note 11) | 220,739 | (35,306) | 185,433 |
Equity of Canada | 2,208,894 | 47,486 | 2,256,380 |
Total liabilities and equity of Canada | 4,782,706 | 12,180 | 4,794,886 |
Consolidated Statement of Equity of Canada |
|||
Equity of Canada, beginning of year | 2,189,990 | 12,711 | 2,202,701 |
Net cost of operations | (2,649,829) | 34,775 | (2,615,054) |
Equity of Canada, end of year | 2,208,894 | 47,486 | 2,256,380 |
Consolidated Statement of Cash Flow |
|||
Net cost of operations | 2,649,829 | (34,775) | 2,615,054 |
Amortization of tangible capital assets | (370,989) | (531) | (371,520) |
(Increase) decrease in liabilities other than lease obligation for tangible capital assets | (68,166) | 35,306 | (32,860) |
Note 3(a) Reconciliation of net cost of operations to current year appropriations used |
|||
Net cost of operations | 2,649,829 | (34,775) | 2,615,054 |
Amortization of tangible capital assets (Note 7) | (370,989) | (531) | (371,520) |
Employee severance benefits | (39,504) | 35,306 | (4,198) |
Note 4 Expenses |
|||
Salaries and employee benefits | 1,133,685 | (35,306) | 1,098,379 |
Amortization of tangible capital assets | 370,989 | 531 | 371,520 |
Total expenses | 4,774,480 | (34,775) | 4,739,705 |
Note 7 Tangible capital assets |
|||
Cost - Opening balance | |||
Buildings | 3,440,072 | 90 | 3,440,162 |
Works and infrastructure | 839,841 | 21,080 | 860,921 |
Total Cost - Opening balance | 7,738,274 | 21,170 | 7,759,444 |
Accumulated amortization - Opening balance | |||
Buildings | 2,126,433 | 80 | 2,126,513 |
Works and infrastructure | 325,504 | 8,910 | 334,414 |
Total Accumulated amortization - Opening balance | 3,393,525 | 8,990 | 3,402,515 |
Note 11 Employee benefits |
|||
(b) Severance benefits | |||
Expense for the year | 60,815 | (35,306) | 25,509 |
Accrued benefit obligation, end of year | 220,739 | (35,306) | 185,433 |
Note 15 Equity of Canada |
|||
Unrestricted Equity of Canada, end of year | 2,180,424 | 47,486 | 2,227,910 |
Total Equity of Canada, end of year | 2,208,894 | 47,486 | 2,256,380 |
Comparative figures have been reclassified to conform to the current year's presentation.
* Information on these tables is available on-line at http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp