2019–20 Departmental Results Report - Financial Statements

(Back to 2019–20 Departmental Results Report)

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2020, 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 of Canada’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 Results 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, 2020, was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex of the 2019–20 Departmental Results Report.

The effectiveness and adequacy of the Office’s system of internal control are 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 for approval the financial statements to the Commissioner.

The Auditor General of Canada, 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.

(Original signed by)

  • Joe Friday
    Public Sector Integrity Commissioner
  • Éric Trottier, MBA, CPA, CMA
    Chief Financial Officer

Ottawa, Canada
September 22, 2020


Independent Auditor’s Report

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

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the Office of the Public Sector Integrity Commissioner of Canada (the Office), which comprise the statement of financial position as at 31 March 2020, 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 notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Office as at 31 March 2020, 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.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Office in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the 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.

In preparing the financial statements, management is responsible for assessing the Office’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Office or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Office’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit 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 Office’s internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
  • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Office’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Office to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Compliance with Specified Authorities

Opinion

In conjunction with the audit of the financial statements, we have audited transactions of the Office of the Public Sector Integrity Commissioner of Canada coming to our notice for compliance with specified authorities. The specified authorities against which compliance was audited are the Financial Administration Act and regulations, and the Public Servants Disclosure Protection Act.

In our opinion, the transactions of the Office of the Public Sector Integrity Commissioner of Canada that came to our notice during the audit of the financial statements have complied, in all material respects, with the specified authorities referred to above.

Responsibilities of Management for Compliance with Specified Authorities

Management is responsible for the Office of the Public Sector Integrity Commissioner of Canada’s compliance with the specified authorities named above, and for such internal control as management determines is necessary to enable the Office of the Public Sector Integrity Commissioner of Canada to comply with the specified authorities.

Auditor’s Responsibilities for the Audit of Compliance with Specified Authorities

Our audit responsibilities include planning and performing procedures to provide an audit opinion and reporting on whether the transactions coming to our notice during the audit of the financial statements are in compliance with the specified authorities referred to above.

(Original signed by)

Nathalie Chartrand, CPA, CA
Principal
for the Auditor General of Canada

Ottawa, Canada
22 September 2020


Statement of Financial Position

As at March 31

(in dollars) 2020 2019
Liabilities
Accounts payable and accrued liabilities (note 4) 684,904 1,100,353
Vacation pay and compensatory leave 328,350 247,583
Employee future benefits (note 5) 163,400 165,700
Total liabilities 1,176,654 1,513,636
Financial assets
Due from the Consolidated Revenue Fund 465,011 914,780
Accounts receivable and advances (note 6) 239,662 204,029
Total financial assets 704,673 1,118,809
Net debt 471,981 394,827
Non-financial assets
Prepaid expenses 60
Tangible capital assets (note 7) 1,039,307 866,653
Total non-financial assets 1,039,367 866,653
Net financial position 567,386 471,826


Contractual obligations (note 8)

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

(Original signed by)

  • Joe Friday
    Public Sector Integrity Commissioner
  • Éric Trottier, MBA, CPA, CMA
    Chief Financial Officer

Ottawa, Canada
September 22, 2020


Statement of Operations and Net Financial Position

For the year ended March 31

(in dollars) Planned Results
(note 2) 2020
2020 2019
Expenses
Disclosure and Reprisal Management Program 5,230,814 3,820,751 3,611,319
Internal Services 1,096,067 2,168,713 1,984,391
Net cost of operations before government funding 6,326,881 5,989,464 5,595,710
Government funding
Net cash provided by Government of Canada 5,639,648 5,805,608 5,197,067
Change in due from the Consolidated Revenue Fund (108,369) (449,769) 389,463
Services provided without charge by other government departments (note 9) 756,045 738,616 687,933
Transfers of assets to other government departments (9,431)
Net cost (revenue) of operations after government funding 39,557 (95,560) (678,753)
Net financial position – Beginning of year 857,502 471,826 (206,927)
Net financial position – End of year 817,945 567,386 471,826


Segmented information (note 10)

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


Statement of Change in Net Debt

For the year ended March 31

(in dollars) Planned Results
(note 2) 2020
2020 2019
Net cost (revenue) of operations after government funding 39,557 (95,560) (678,753)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7) 184,523 349,924 766,124
Amortization of tangible capital assets (note 7) (190,336) (170,928) (56,920)
Net loss on disposal of tangible capital assets (note 7) (6,342)
Total change due to tangible capital assets (5,813) 172,654 709,204
Change due to prepaid expenses 60
Net increase in net debt 33,744 77,154 30,451
Net debt – Beginning of year 245,117 394,827 364,376
Net debt – End of year 278,861 471,981 394,827


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


Statement of Cash Flow

For the year ended March 31

(in dollars) 2020 2019
Operating activities
Net cost of operations before government funding 5,989,464 5,595,710
Non-cash items:
Amortization of tangible capital assets (note 7) (170,928) (56,920)
Services provided without charge by other government departments (note 9) (738,616) (687,933)
Net loss on disposal of tangible capital assets (note 7) (6,342)
Variations in Statement of Financial Position:
Increase in accounts receivable and advances 35,633 94,542
Increase in prepaid expenses 60
Decrease (increase) in accounts payable and accrued liabilities (notes 4, 7) 145,359 (222,839)
Increase in vacation pay and compensatory leave (80,767) (36,253)
Decrease (increase) in employee future benefits 2,300 (5,500)
Transfer of assets to other government departments 9,431
Cash used in operating activities 5,185,594 4,680,807
Capital investing activities
Acquisition of tangible capital assets (note 7) 620,014 516,260
Cash used in capital investing activities 620,014 516,260
Net cash provided by Government of Canada 5,805,608 5,197,067


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


Notes to the Financial Statements

For the year ended March 31

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 I.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 which determines whether reprisals have taken place and orders 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 Management Services; Materiel Management Services and Acquisition Management Services.

2. Summary of significant accounting policies

These financial statements have been prepared using the Government of Canada’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 2019–20 Departmental Plan. 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 of Canada

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 of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government of Canada.

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

  • 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.
  • Expenses are recorded on the accrual basis.

e) Employee future benefits

  • Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government of Canada. The Office’s contributions to the Plan are charged to expenses in the year incurred and represent the total 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: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. Due to the size of the Office, the remaining obligation for employees who did not withdraw benefits is calculated using employee specific information.

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 is 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 3 to 15 years
Leasehold improvements Lesser of the remaining term of 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) Related Party Transactions

Inter-entity transactions

The Office is related, in terms 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, which are measured at the carrying amount, except for the following:

  • Inter-entity transactions are measured at the exchange amount when undertaken on similar terms and conditions to those adopted if the entities were dealing at arm’s length, or where costs provided are recovered.
  • Goods or services received without charge between commonly controlled entities, when used in the normal course of the operations and would otherwise have been purchased, are recorded as revenues and expenses at the carrying amount. The Government also 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 Services and Procurement Canada are not included in the Office’s Statement of Operations and Net Financial Position.
Other related party transactions

Related parties also include key management personnel (KMP) having authority and responsibility for planning, directing and controlling the activities of the Office, as well as their close family members. The Office has defined its KMP to be the Commissioner, Deputy Commissioner, Chief Financial Officer, General Counsel and Director of Operations.

These related party transactions are recorded at the exchange amount.

i) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Office’s best estimates of the related amount at the end of the reporting period. The most significant items where estimates are used are the liability for vacation pay, 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) 2020 2019
Net cost of operations before government funding 5,989,464 5,595,710
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (note 9) (738,616) (687,933)
Amortization of tangible capital assets (note 7) (170,928) (56,920)
Net loss on disposal of tangible capital assets (note 7) (6,342)
Increase in vacation pay and compensatory leave (80,767) (36,253)
Decrease (increase) in employee future benefits 2,300 (5,500)
Adjustments to previous year’s expenses 6,458 22,891
Refund of program expenditures 12,181
Subtotal (987,895) (751,534)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets (note 7) 349,924 766,124
Increase in prepaid expenses 60
Employee advances and overpayments 47,048 10,812
Subtotal 397,032 776,936
Current year authorities used 5,398,601 5,621,112

b) Authorities provided and used

(in dollars) 2020 2019
Authorities provided:
Vote 1 – Program expenditures 5,275,715 5,382,010
Statutory amounts – Proceeds from the disposal of surplus Crown assets 84
Statutory amounts – Contributions to employee benefits plan 438,151 418,784
Less:
Authorities available for future years (84)
Lapsed authorities (315,265) (179,682)
Current year authorities used 5,398,601 5,621,112

4. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are due within six months of year-end.

(in dollars) 2020 2019
Other government departments and agencies 120,325 570,555
External parties 84,203 103,937
Subtotal 204,528 674,492
Accrued liabilities 480,376 425,861
Total 684,904 1,100,353

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 of Canada. 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/Québec 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 2019–20 expense amounts to $303,551 ($290,133 in 2018–19). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2018–19) the employee contributions and, for Group 2 members, approximately 1.00 time (1.00 time in 2018–19) 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 consolidated financial statements of the Government of Canada, as the Plan’s sponsor.

b) Severance benefits

Severance benefits provided to the Office’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. As at March 31, 2020, substantially all settlements for immediate cash out were completed and the remaining obligation will be disbursed upon departure from the public service. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

(in dollars) 2020 2019
Accrued benefit obligation, beginning of year 165,700 160,200
Expense for the year (2,300) 82,033
Benefits paid during the year (76,533)
Accrued benefit obligation, end of year 163,400 165,700

6. Accounts receivable and advances

(in dollars) 2020 2019
Other government departments and agencies 168,368 168,541
External parties 19,769 18,456
Employee advances and overpayments 51,525 17,032
Total 239,662 204,029

7. Tangible capital assets

Cost
(in dollars)
Opening Balance Acquisitions Disposals, Write-Offs
and Transfers
Closing Balance
Informatics hardware 221,161 221,161
Informatics software 133,079 (14,295) 118,784
Other equipment 62,686 30,172 (48,410) 44,448
Leasehold improvements 242,589 319,752 491,046 1,053,387
Assets under construction 752,634 (752,634)
Total 1,412,149 349,924 (324,293) 1,437,780

 

Accumulated amortization
(in dollars)
Opening Balance Amortization Disposals, Write-Offs
and Transfers
Closing Balance
Informatics hardware 138,843 34,650 173,493
Informatics software 108,080 15,150 (33,295) 89,935
Other equipment 55,984 2,622 (42,067) 16,539
Leasehold improvements 242,589 118,506 (242,589) 118,506
Total 545,496 170,928 (317,951) 398,473

 

Net book value
(in dollars)
2020 2019
Informatics hardware 47,668 82,318
Informatics software 28,849 24,999
Other equipment 27,909 6,702
Leasehold improvements 934,881
Assets under construction 752,634
Total 1,039,307 866,653


The “Acquisition of tangible capital assets” and the “Increase in accounts payables and accrued liabilities” presented in the Statement of Cash Flow exclude an amount of $270,090 in 2018–19, as the amount relates to capital investing activities in 2018–19 that remain to be paid as at March 31, 2019. For 2019–20, there was no remaining amount to be paid in capital investing activities as at March 31, 2020.

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) Related Parties Acquisitions of
goods and services
Operating leases Total
2021 155,716 83,849 1,692 241,257
2022 33,574 36,489 1,295 71,358
2023 33,778 28,289 1,295 63,362
2024 1,295 1,295
2025 1,187 1,187

9. Related party transactions

a) Services provided without charge by common service organizations

During the year, the Office received services without charge from common service organizations. These services provided without charge have been recorded at the carrying value in the Office’s Statement of Operations and Net Financial Position as follows:

(in dollars) 2020 2019
Accommodation 258,170 293,595
Employer’s contribution to the health and dental insurance plans 302,446 281,338
Audit services 178,000 113,000
Total 738,616 687,933

b) Other transactions with related parties

The Office incurred expenses from transactions in the normal course of business with other government departments, agencies and Crown corporations. A portion of these expenses comes from shared services agreements with other government departments related to the provision of Finance, Human Resources, Administrative and Information Technology internal support services. These expenses exclude services received without charge, which are already disclosed in a). Contractual obligations with related parties, as shown in note 8 above, amount to a total of $223,068 over the next five years.

(in dollars) 2020 2019
Expenses for internal support services 487,935 482,778
Expenses for other business operations 952,855 1,318,581
Subtotal 1,440,790 1,801,359
Tangible capital asset acquisitions 319,752 733,634
Accounts payable 120,325 570,555
Accounts receivable 168,541 168,541

10. Segmented information

Presentation by segment is based on the Office’s core responsibility. 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 core responsibilities, by major object of expense. The segment results for the period are as follows:

(in dollars) Disclosure and Reprisal
Management Program
Internal Services 2020 2019
Transfer payments
Individuals 22,362 22,362 30,167
Total transfer payments 22,362 22,362 30,167
Operating expenses
Salaries and employee benefits 3,169,926 1,018,234 4,188,160 4,044,064
Professional and special services 137,081 879,709 1,016,784 969,461
Accommodation 192,815 65,355 258,170 293,595
Amortization of tangible capital assets 118,506 52,422 170,928 56,920
Communication 21,370 75,039 96,409 66,446
Travel 76,890 4,095 80,985 39,132
Rentals 27,409 27,794 55,203 34,685
Information 13,045 21,076 34,121 33,183
Utilities, materials and supplies 18,965 4,703 23,659 4,539
Other 21,575 1,008 22,583
Equipment expenses 1,892 14,053 15,945 45,109
Net loss on disposal of tangible capital assets 6,342 6,342
Repair and maintenance 150 4,121 4,271 1,300
Adjustments to previous year’s expenses (1,226) (5,232) (6,458) (22,891)
Total operating expenses 3,798,389 2,168,713 5,967,102 5,565,543
Net cost of operations 3,820,751 2,168,713 5,989,464 5,595,710