2014–15 Departmental Performance Report - Financial Statements

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Office of the Public Sector Integrity Commissioner of Canada

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2015, and all information contained in these statements rests with the management of the Office of the Public Sector Integrity Commissioner of Canada (the Office). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Office's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Office's Departmental Performance Report, is consistent with these financial statements.

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

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

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

A risk-based assessment of the system of ICFR for the year ended March 31, 2015 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Office's system of internal control is reviewed by an independent Audit and Evaluation Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Commissioner.

The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the Office which does not include an audit opinion on the annual assessment of the effectiveness of the Office's internal controls over financial reporting.

Joe Friday Public Sector Integrity Commissioner of Canada

Patricia Fraser, CPA, CA Chief Financial Officer

Ottawa, Ontario
June 22, 2015

 

Independent Auditor's Report

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

Report on the Financial Statements

I have audited the accompanying financial statements of the Office of the Public Sector Integrity Commissioner of Canada, which comprise the statement of financial position as at 31 March 2015, and the statement of operations and net financial position, statement of change in net debt and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of the Office of the Public Sector Integrity Commissioner of Canada as at 31 March 2015, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Report on Other Legal and Regulatory Requirements

In my opinion, the transactions of the Office of the Public Sector Integrity Commissioner of Canada that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Public Servants Disclosure Protection Act.

 

Marian McMahon CPA, CA
Assistant Auditor General
for the Auditor General of Canada

22 June 2015
Ottawa, Canada

 

Statement of Financial Position

As of March 31

Office of the Public Sector Integrity Commissioner of Canada

(in dollars)	2015	2014
Liabilities
Accounts payable and accrued liabilities (note 4)	459,015	422,804
Vacation pay and compensatory leave	169,132	164,450
Employee future benefits (note 5)	212,000	250,000
Total liabilities	840,147	837,254
Financial assets
Due from the Consolidated Revenue Fund	343,251	403,126
Accounts receivable and advances (note 6)	122,763	20,678
Total financial assets	466,014	423,804
Net debt	374,133	413,450
Non-financial assets
Prepaid expenses	-	1,900
Tangible capital assets (note 7)	171,658	215,031
Total non-financial assets	171,658	216,931
Net financial position	(202,475)	(196,519)

Contractual obligations (note 8)

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

Joe Friday Public Sector Integrity Commissioner of Canada

Patricia Fraser, CPA, CA Chief Financial Officer

Ottawa, Ontario
June 22, 2015

Statement of Operations and Net Financial Position

For the year ended March 31

Office of the Public Sector Integrity Commissioner of Canada

(in dollars)	Planned Results (note 2) 2015	2015	2014
Expenses
Disclosure and Reprisal Management Program	4,280,354	2,967,884	3,999,787
Internal Services	2,106,350	2,430,291	2,179,566
Net cost of operation before government funding	6,386,704	5,398,175	6,179,353
Government funding
Net cash provided by Government	5,675,172	4,901,826	5,633,765
Change in due from Consolidated Revenue Fund	71,062	(59,875)	(95,817)
Services provided without charge by other government departments (note 9)	717,338	663,702	679,930
Transfer of the transition payments for implementing salary payments in arrears (note 10)	-	(113,434)	-
Net cost (revenue) of operations after government funding	(76,868)	5,956	(38,525)
Net financial position - Beginning of year	(191,238)	(196,519)	(235,044)
Net financial position - End of year	(114,370)	(202,475)	(196,519)

Segmented Information (note 11)

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

Statement of Change in Net Debt

For the year ended March 31

Office of the Public Sector Integrity Commissioner of Canada

(in dollars)	Planned Results (note 2) 2015	2015	2014
Net cost (revenue) of operations after government funding	(76,868)	5,956	(38,525)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7)	10,000	24,312	54,408
Amortization of tangible capital assets (note 7)	(70,155)	(67,685)	(73,003)
Net loss on disposal of tangible capital assets (note 7)	-	-	(14,250)
Total change due to tangible capital assets	(60,155)	(43,373)	(32,845)
Change due to prepaid expenses	112,770	(1,900)	(3,867)
Net decrease in net debt	(24,253)	(39,317)	(75,237)
Net debt - Beginning of year	411,716	413,450	488,687
Net debt - End of year	387,463	374,133	413,450

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

Statement of Cash Flow

For the year ended March 31

Office of the Public Sector Integrity Commissioner of Canada

(in dollars)	2015	2014
Operating Activities
Net cost of operations before government funding and transfers	5,398,175	6,179,353
Non-cash items:
Amortization of tangible capital assets (note 7)	(67,685)	(73,003)
Services provided without charge by other government departments (note 9)	(663,702)	(679,930)
Transition payments for implementing salary payments in arrears (note 10)	113,434	-
Net loss on disposal of tangible capital assets (note 7)	-	(14,250)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	102,085	(5,137)
Increase (decrease) in prepaid expenses	(1,900)	(3,867)
Decrease (increase) in accounts payable and accrued liabilities	(36,211)	100,941
Increase in vacation pay and compensatory leave	(4,682)	(14,750)
Decrease in employee future benefits	38,000	90,000
Cash used in operating activities	4,877,514	5,579,357
Capital activities
Acquisition of tangible capital assets (note 7)	24,312	54,408
Cash used in capital activities	24,312	54,408
Net cash provided by Government of Canada	4,901,826	5,633,765

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

Notes to the Financial Statements

For the year ended March 31

Office of the Public Sector Integrity Commissioner of Canada

1. Authority and objectives

The Office of the Public Sector Integrity Commissioner of Canada (the Office) was set up to administer the Public Servants Disclosure Protection Act, which came into force on April 15, 2007. The Office is established under the authority of Schedule 1.1 of the Financial Administration Act and is funded through annual appropriations. The Commissioner is accountable for, and reports directly to Parliament on the results achieved.

The Office is mandated to establish a safe, independent, and confidential process for public servants and members of the public to disclose potential wrongdoing in the federal public sector. The Office also helps to protect public servants who have filed disclosures or participated in related investigations from reprisal. The disclosure regime is an element of the framework which strengthens accountability and management oversight in government operations.

Disclosure and Reprisal Management Program

The objective of the program is to address disclosures of wrongdoing and complaints of reprisal and contribute to increasing confidence in federal public institutions. It aims to provide advice to federal public sector employees and members of the public who are considering making a disclosure and to accept, investigate and report on disclosures of information concerning possible wrongdoing. Based on this activity, the Public Sector Integrity Commissioner will exercise exclusive jurisdiction over the review, conciliation and settlement of complaints of reprisal, including making applications to the Public Servants Disclosure Protection Tribunal to determine if reprisals have taken place and to order appropriate remedial and disciplinary action.

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization. and not those provided to a specific program. The groups of activities are Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services. and Acquisition Services.

2. Summary of significant accounting policies

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

Significant accounting policies are as follows:

a) Parliamentary authorities

The Office is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Expenses section of the Statement of Operations and Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2014-15 Report on Plans and Priorities. The planned results amounts in the Government funding section of the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt were prepared for internal management purposes and have not been previously published.

Liquidity risk is the risk that the Office will encounter difficulty in meeting its obligations associated with financial liabilities. The Office's objective for managing liquidity risk is to manage operations and cash expenditures within the appropriation authorized by Parliament or allotment limits approved by the Treasury Board.

Each year, the Office presents information on planned expenditures to Parliament through the tabling of Estimates publications. These estimates result in the introduction of supply bills (which, once passed into legislation, become appropriation acts) in accordance with the reporting cycle for government expenditures. The Office exercises expenditure initiation processes such that unencumbered balances of budget allotments and appropriations are monitored and reported on a regular basis to help ensure sufficient authority remains for the entire period and appropriations are not exceeded.

Consistent with Section 32 of the Financial Administration Act, the Office's policy to manage liquidity risk is that no contract or other arrangement providing for a payment shall be entered into with respect to any program for which there is an appropriation by Parliament or an item included in estimates then before the House of Commons to which the payment will be charged unless there is a sufficient unencumbered balance available out of the appropriation or item to discharge any debt that, under the contract or other arrangement, will be incurred during the fiscal year in which the contract or other arrangement is entered into.

The Office's risk exposure and its objectives, policies and processes to manage and measure this risk did not change significantly from the prior year.

b) Net Cash Provided by Government

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

c) Due from the Consolidated Revenue Fund

Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further authorities to discharge its liabilities. This amount is not considered to be a financial instrument.

d) Expenses

Expenses are recorded on the accrual basis:

• Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program.
• Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
• Services provided without charge by other government departments for accommodation, employer's contributions to the health and dental insurance plans and audit services are recorded as operating expenses at their estimated cost.

e) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan (Plan), a multiemployer pension plan administered by the Government of Canada. The Office's contributions to the Plan are charged to expenses in the year incurred and represent the total Office obligation to the Plan. The Office's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
• Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

f) Accounts receivable

Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain. Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Office is not exposed to significant credit risk. Accounts receivable are due on demand. The majority of accounts receivable are due from other government of Canada departments and agencies where there is minimal potential risk of loss. The maximum exposure the Office has to credit risk equal to the carrying value of its accounts receivable.

g) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization Period
Informatics hardware	3 to 5 years
Informatics software	3 to 5 years
Other equipment	1 to 15 years
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

h) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary authorities

The Office receives its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the Office has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year authorities used

(in dollars)	2015	2014
Net cost of operations before government funding	5,398,175	6,179,353
Adjustments for items affecting net cost of operations but not affecting authorities: Add (Less):
Services provided without charge by other government departments (note 9)	(663,702)	(679,930)
Amortization of tangible capital assets (note 7)	(67,685)	(73,003)
Net loss on disposal of tangible capital assets (note 7)	-	(14,250)
Increase in vacation pay and compensatory leave	(4,682)	(14,750)
Decrease in employee future benefits	38,000	90,000
Adjustments to previous year's expenses	5,075	5,080
	(692,994)	(686,853)
Adjustments for items not affecting net cost of operations but affecting authorities: Add (Less):
Acquisition of tangible capital assets (note 7)	24,312	54,408
Transition payments for implementing salary payments in arrears (note 10)	113,434	-
Decrease in prepaid expenses	(1,900)	(3,867)
	135,846	50,541
Current year authorities used	4,841,027	5,543,041

b) Authorities provided and used

(in dollars)	2015	2014
Authorities provided:
Vote 1 - Program expenditures	5,210,967	5,459,782
Statutory amounts - Proceeds from the disposal of surplus Crown assets	46	-
Statutory amounts - Contributions to employee benefits plan	447,023	536,434
Less:
Lapsed authorities	(817,009)	(453,175)
Current year authorities used	4,841,027	5,543,041

4. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are measured at cost, the majority of which are due within six months of year-end.

(in dollars)	2015	2014
Accounts payable - Other government departments and agencies	7,625	103,317
Accounts payable - External parties	196,276	190,547
	203,901	293,864
Accrued salaries	255,114	128,940
	459,015	422,804

5. Employee future benefits

a) Pension benefits

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

Both the employees and the Office contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups - Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2014-15 expense amounts to $305,585 ($377,167 in 2013-14). For Group 1 members, the expense represents approximately 1.41 times (1.6 times in 2013-14) the employee contributions and, for Group 2 members, approximately 1.39 times (1.5 times in 2013-14) the employee contributions.

The Office's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

b) Severance benefits

The Office provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid from future authorities.

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

Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)	2015	2014
Accrued benefit obligation, beginning of year	250,000	340,000
Expense for the year	(38,000)	55,126
Benefits paid during the year	-	(145,126)
Accrued benefit obligation, end of year	212,000	250,000

6. Accounts receivable and advances

(in dollars)	2015	2014
Accounts receivable - Other government departments and agencies	115,763	19,678
Accounts receivable - External parties	6,000	-
Advance - Petty cash	1,000	1,000
	122,763	20,678

7. Tangible capital assets

Cost (in dollars)	Opening Balance	Acquisitions	Disposals, Write-Offs and Transfers	Closing Balance
Informatics hardware	64,589	-	-	64,589
Informatics software	41,149	-	63,264	104,413
Other equipment	70,320	-	-	70,320
Leasehold improvements	242,589	-	-	242,589
Assets under construction	38,952	24,312	(63,264)	-
	457,599	24,312	-	481,911

Accumulated amortization (in dollars)	Opening Balance	Amortization	Disposals, Write-Offs and Transfers	Closing Balance
Informatics hardware	34,990	11,846	-	46,836
Informatics software	26,636	11,931	-	38,567
Other equipment	31,712	9,302	-	41,014
Leasehold improvements	149,230	34,606	-	183,836
	242,568	67,685	-	310,253

Net book value (in dollars)	2014	2015
Informatics hardware	29,599	17,753
Informatics software	14,513	65,846
Other equipment	38,608	29,306
Leasehold improvements	93,359	58,753
Assets under construction	38,952	-
	215,031	171,658

8. Contractual obligations

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

(in dollars)	Acquisitions of goods and services	Operating leases	Total
2016	577,779	128,384	706,163
2017	342,051	93,751	435,802
2018	89,826	1,368	91,194
2019	5,271	1,368	6,639
2020	-	1,254	1,254

9. Related party transactions

The Office is related as a result of common ownership to all government departments, agencies, and Crown corporations. The Office enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, the Office has shared service agreements with other government departments related to the provision of Finance, Human Resources, Administration and Information Technology services. The expenses are $432,896 in 2014-15 ($446,694 in 2013-14). During the year, the Office received common services which were obtained without charge from other government departments as disclosed below.

a) Common services provided without charge by other government departments

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

(in dollars)	2015	2014
Accommodation	325,380	302,971
Employer's contribution to the health and dental insurance plans	234,322	269,959
Audit services	104,000	107,000
	663,702	679,930

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

b) Other transactions with related parties

The Office incurred expenses of $1,045,359 in 2014-15 ($1,531,706 in 2013-14) from transactions in the normal course of business with other Government departments, agencies and Crown corporations. These expenses exclude common services received without charge, which are already disclosed in a).

10. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in 2014-15. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay processes. This change to the pay system had no impact on the expenses of the Office. However, it did result in the use of additional spending authorities by the Office. Prior to year end, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Works and Government Services Canada, who is responsible for the administration of the Government pay system.

11. Segmented information

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

(in dollars)	Disclosure and Reprisal Management Program	Internal Services	2015	2014
Transfer payments
Individuals	40,638	-	40,638	34,533
Total transfer payments	40,638	-	40,638	34,533
Operating Expenses
Salaries and employee benefits	2,420,489	1,048,397	3,468,886	4,004,307
Professional and special services	88,562	1,040,016	1,128,578	1,334,375
Accommodation	307,685	140,715	448,400	425,532
Equipment expenses	572	3,094	3,666	84,121
Amortization of tangible capital assets	37,733	29,952	67,685	73,003
Information	7,370	60,362	67,732	64,195
Rentals	6,558	62,688	69,246	45,720
Travel	28,466	3,201	31,667	39,383
Communication	19,204	21,017	40,221	38,529
Utilities, materials and supplies	10,607	4,331	14,938	15,793
Other	-	10,030	10,030	14,250
Repair and maintenance	-	6,488	6,488	5,612
Total operating expenses	2,927,246	2,430,291	5,357,537	6,144,820
Net cost of operations	2,967,884	2,430,291	5,398,175	6,179,353