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Financial Statements -

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Canadian Space Agency

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended , and all information contained in these statements rests with the management of the Canadian Space Agency. These financial statements have been prepared by management using the Government's accounting standards, which are based on the Government's accounting policies and Canadian accounting standards stated in the Public Sector Accounting Handbook.

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 Agency's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Agency'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 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 Agency; 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 was completed in accordance with the Treasury Board Policy on Internal Control. The results of this assessment and the action plans are summarized in the annex.

The effectiveness and adequacy of the Agency's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Agency's operations, and by the Audit 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 Deputy Head of the Agency.

The financial statements of the Canadian Space Agency have not been subject to an external audit.

The original version was signed by Sylvain Laporte, President, in Longueuil, Canada, on .

The original version was signed by Marie-Claude Guérard, CPA, CGA, Chief Financial Officer, in Longueuil, Canada, on .

Statement of Financial Position (Unaudited)

As at March 31
(in thousands of dollars)

$

$
Liabilities
Accounts payable and accrued liabilities (note 4) 94,384 106,198
Vacation pay and compensatory leave 4,149 3,616
Deferred revenue (note 5) 50 9
Severance benefits (note 6(b)) 2,767 3,602
Contingent liabilities (note 7) 350 -
Other liabilities (note 8) 2,484 2,075
Total net liabilities 104,184 115,500
Assets
Financial assets
Due from the Consolidated Revenue Fund 87,531 96,850
Accounts receivable and advances (note 9) 12,285 12,537
Total gross financial assets 99,816 109,387
Financial assets held on behalf of Government
Accounts receivable and advances (note 9) (1,725) (1,337)
Total financial assets held on behalf of Government (1,725) (1,337)
Total net financial assets 98,091 108,050
Agency's net debt 6,093 7,450
Non-financial assets
Prepaid expenses (note 10) 132,825 175,775
Tangible capital assets (note 11) 1,431,147 1,326,629
Other receivables (note 12) 7,059 7,484
Total non-financial assets 1,571,031 1,509,888
Agency's net financial position 1,564,938 1,502,438

Contractual obligations (note 13)

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

The original version was signed by Sylvain Laporte, President, in Longueuil, Canada, on .

The original version was signed by Marie-Claude Guérard, CPA, CGA, Chief Financial Officer, in Longueuil, Canada, on .

Statement of Operations and the Agency's Net Financial Position (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

$
Planned

$

$
Expenses
Space Exploration 156,688 125,374 120,763
Space Data, Information and Services 95,492 87,439 87,703
Future Canadian Space Capacity 67,612 79,965 62,778
Internal Services 50,759 48,607 46,426
Expenses incurred on behalf of Government - (2) -
Total Expenses 370,551 341,383 317,670
Revenues
Sale of goods and services 1,600 531 398
Location and use of public property 325 272 317
Sale of rights and privileges 100 36 83
Other revenues 40 9,204 3,048
Revenues earned on behalf of Government (2,065) (10,007) (3,824)
Total Revenues - 36 22
Net cost of operations before government funding and transfers 370,551 341,347 317,648
Government funding and transfers
Net cash provided by Government   407,669 423,450
Change in due from Consolidated Revenue Fund   (9,319) (7,587)
Services provided without charge by other government departments (note 14(a))   5,499 5,196
Transfer of the transition payments for implementing salary payments in arrears   (2) (3)
Total Government funding and transfers   403,847 421,056
Net cost of operations after government funding and transfers   (62,500) (103,408)
Agency's net financial position - Beginning of year   1,502,438 1,399,030
Agency's net financial position - End of year   1,564,938 1,502,438

Other transactions with related parties (note 14(b))

Segmented information (note 15)

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

Statement of Change in the Agency's Net Debt (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

$

$
Net cost of operations after government funding and transfers (62,500) (103,408)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 11) 153,586 179,124
Amortization of tangible capital assets (note 11) (43,604) (43,445)
Proceeds from disposal of tangible capital assets (7) (1)
Net loss on disposal and write-offs of tangible capital assets (5,457) (2)
Total change due to tangible capital assets 104,518 135,676
Change due to prepaid expenses (42,950) (33,595)
Change due to other receivables (425) -
Net decrease in the Agency's net debt (1,357) (1,327)
Agency's net debt - Beginning of year 7,450 8,777
Agency's net debt - End of year 6,093 7,450

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

Statement of Cash Flows (Unaudited)

For the Year Ended March 31
(in thousands of dollars)

$

$
Operating Activities
Net cost of operations before government funding and transfers 341,347 317,648
Non-cash items:
Amortization of tangible capital assets (note 11) (43,604) (43,445)
Net loss on disposal and write-offs of tangible capital assets (5,457) (2)
Services provided without charge by other government departments (note 14(a)) (5,499) (5,196)
Transition payments for implementing salary payments in arrears 2 3
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (640) 291
Decrease in prepaid expenses (42,950) (33,595)
Decrease in other receivables (425) -
Decrease in accounts payable and accrued liabilitiess 11,814 9,000
Increase in vacation pay and compensatory leave (533) (64)
Decrease (increase) in deferred revenue (41) 83
Decrease in severance benefits 835 171
Increase in contingent liabilities (350) -
Increase in other liabilities (409) (567)
Cash used in operating activities 254,090 244,327
Capital Investing Activities
Acquisition of tangible capital assets (note 11) 153,586 179,124
Proceeds from disposal of capital assets (7) (1)
Cash used in capital investing activities 153,579 179,123
Net cash provided by Government of Canada 407,669 423,450

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

Notes to the Financial Statements (Unaudited)

For the Year Ended March 31

1. Authority and Objectives

The Canadian Space Agency "Agency" was decreed a "Department" on . The Agency is a division of the public service named in Schedule I.1 of the Financial Administration Act. The Agency is part of the Ministerial Portfolio of Innovation, Science and Economic Development, which represents the Agency in Parliament and in Cabinet.

The Canadian Space Agency Act that received Royal Assent in attributes four main functions to the Agency:

  • Assist the Minister to coordinate the space policies and programs of the Government of Canada;
  • Plan, direct, manage and implement programs and projects relating to scientific or industrial space research and development and the application of space technology;
  • Promote the transfer and diffusion of space technology to and throughout Canadian industry; and
  • Encourage commercial exploitation of space capabilities, technology, facilities and systems.

The objectives of the Canadian Space Agency are "to promote the peaceful use and development of space, to advance the knowledge of space through science and to ensure that space science and technologies provide social and economic benefits for Canadians".

According to the approved Program Alignment Architecture (PAA), the Statement of Operations and the Agency's Net Financial Position is detailed by the following Programs (Business Lines):

Space Exploration

This Program provides valuable Canadian science, signature technologies and qualified astronauts to international space exploration endeavours. This Program contributes to the Government of Canada's Strategy Mobilizing Science and Technology to Canada's Advantage. It fosters the generation of knowledge as well as technological spin-offs that contribute to a higher quality of life for Canadians. It generates excitement within the population in general and contributes to nation-building. This Program appeals to the science and technology communities. It is targeted mostly towards Canadian academia and international space exploration partnerships. Canadian industry also benefits from the work generated within this Program. This Program is delivered with the participation of foreign space agencies and Government of Canada (GoC) organizations. This collaborative effort is formalized under international partnership agreements, contracts, grants or contributions.

Space Data, Information and Services

This Program includes the provision of space-based solutions (data, information and services) and the progression of their utilization. It also serves to install and run ground infrastructure that processes the data and operates satellites. This Program utilizes space-based solutions to assist Government of Canada (GoC) organizations in delivering growing, diversified or cost-effective programs and services within their mandate, which are related to key national priorities, such as sovereignty, defence, safety and security, resource management, environmental monitoring and the North. It also provides academia with the data required to perform its own research. The services delivered through this Program are rendered, and the data and information are generated and processed, with the participation of the Canadian space industry, academia, GoC organizations, national and international organizations, such as foreign space agencies, not-for-profit organizations, as well as provincial and municipal governments. This collaborative effort is formalized under national and international partnership agreements and contracts. This Program is also funded through the Class Grant and Contribution Program.

Future Canadian Space Capacity

This Program attracts, sustains and enhances the nation's critical mass of Canadian space specialists, fosters space-related innovation and know- how in Canada, and preserves the nation's space-related facilities capability. In doing so, it encourages private-public collaboration that requires a concerted approach to future space missions. This Program secures the nation's future strategic and ongoing presence in space and helps preserve Canada's capability to deliver internationally renowned space assets for future generations. It is targeted at Canadian academia, industry and youth, as well as users of Canadian space solutions (Government of Canada (GoC) organizations) and international partners. This Program is conducted with the participation of funding agencies, GoC organizations along with government facilities and infrastructure, foreign space agencies, not-for-profit organizations and provincial governments. This collaborative effort is formalized under contracts, grants, contributions or national and international partnership agreements.

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. These groups 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; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

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 Agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Agency 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 Financial Position and the Statement of Operations and Agency Net Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the two bases of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Agency Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the - Report on Plans and Priorities . Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Agency Net Financial Position and in the Statement of Change in the Agency's Net Debt since the related Future-Oriented statements are no longer produced and therefore, are not included in the - Report on Plans and Priorities.

(b) Net cash provided by Government

The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency 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 (CRF)

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 Agency is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues

  • Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
  • Funds that have been received are recorded as deferred revenue, provided the Agency has an obligation to other parties for the provision of goods, services or the use of assets in the future (note 5).
  • Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the deputy head is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross revenues.

(e) 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 entitlements for the transfer payment program.
  • Vacation pay and compensatory leave are recorded as expenses as benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation and employer contributions to the health and dental insurance plans are recorded as operating expenses at their estimated cost.

(f) Employee future benefits (note 6)

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada. The Agency's contributions to the Plan are recorded to expenses in the year incurred and represent the Agency's total obligation to the Plan. The Agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficits are recongnized in the financial statements of the Government of Canada, as the Plan's sponsor.
  2. 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.

(g) Accounts receivables and advances

Accounts receivables and advances are stated at the lower of cost and net recoverable value. A provision is recorded for receivables where recovery is considered uncertain.

(h) Contingent liabilities

Contingent liabilities are potential liabilities that 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 if an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements

(i) Foreign currency transactions

Transactions involving foreign currencies are translated into Canadian dollar equivalents using the exchange rates in effect at the time of the transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the exchange rate in effect at year-end. Gains and losses resulting from foreign currency transactions are included in the item "others" in the Statement of Operations and the Agency's Net Financial Position.

(j) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Agency does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

Asset category Amortization period
Buildings, works and infrastructure 15-40 years
Material and equipment 9-20 years
Computer material 5-10 years
Computer software 3-10 years
Other equipment 3-30 years
Motor vehicles 5 years
Other vehicles 10 years

Assets under construction are accounted for in the applicable capital asset category in the fiscal year in which they become available for use for the production of goods or the provision of services (commissioning) and are only amortized as of that date.

The space assets are not considered operational until they have attained orbit or their expected trajectory or the landing date on the International Space Station.

(k) Measurement uncertainty

The preparation of the 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 the statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are 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 financial statements in the year they become known.

3. Parliamentary Authorities

The Agency receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Financial Position, and the Statement of Operations and the Agency's Net Financial Position in one fiscal year may be funded through parliamentary authorities that were authorized in a prior or in the current year or that will be in a future fiscal year. Accordingly, the Agency 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 and to current year parliamentary authorities used

(in thousands of dollars)
$

$
Net cost of operations before government funding and transfers 341,347 317,648
Adjustments for items affecting net cost of operations but not affecting authorities
Add (Less):
Amortization of tangible capital assets (note 11) (43,604) (43,445)
Revenue not available for spending    
Services provided without charge by other government departments (note 14(a)) (5,499) (5,196)
Refund of previous years' expenditures 312 1,123
Decrease in severance benefits 835 171
Increase in vacation pay and compensatory leave (533) (64)
Increase in contingent liabilities (350) -
Net loss on disposal and write-offs of tangible capital assets (5,457) (2)
Change in non-monetary exchange CSA/NASA (410) -
Additional Data Credit RADARSAT-2 (9,074) (2,981)
Other 100 13
277,667 267,267
Adjustments for items not affecting net cost of operations but affecting authorities
Add (Less):
Acquisition of tangible capital assets (note 11) 153,586 179,124
Proceeds from disposal of tangible capital assets (7) (1)
Decrease in prepaid expenses (42,950) (33,595)
Transition payments for implementing salary payments in arrears 2 3
110,631 145,531
Current year authorities used 388,298 412,798

(b) Authorities provided and used

(in thousands of dollars)
$

$
Authorities provided
Vote 1 - Operating expenditures 184,498 191,597
Vote 5 - Capital expenditures 210,228 255,909
Vote 10 - Grants and contributions 55,942 45,356
Statutory amounts 8,681 8,706
459,349 501,568
Less:
Authorities available for use in future years 26 16
Lapsed: Operating 14,076 11,227
Lapsed: Capital 56,523 76,702
Lapsed: Grants and contributions 426 789
Lapsed: Proceeds from the disposal of surplus Crown assets - 36
71,051 88,770
Current year authorities used 388,298 412,798

4. Accounts Payable and Accrued Liabilities

(in thousands of dollars)
$

$
Accounts payable - External parties 46,475 60,013
Contractor's holdbacks 3,801 6,726
Accounts payable – Other Departments 704 685
Other accounts payable 20 14
Total accounts payable 51,000 67,438
Accrued liabilities 43,384 38,760
Total accounts payable and accrued liabilities 94,384 106,198

In Canada's Economic Action Plan , the Government announced savings measures to be implemented by departments starting in and extending over the three subsequent fiscal years. To this effect, the Agency has recorded an obligation for termination benefits as part of accrued liabilities to reflect the estimated workforce adjustment costs. The remaining balance of these measures as of is $0 ($3,983 in -).

5. Deferred Revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received prior to services being performed as part of the activities of RADARSAT-2 to cover expenses related to the reception, archiving, cataloguing and satellite acquisition services and for the preparation of accommodations of MacDonald Dettwiler and Associates Ltd. (MDA) employees. Revenues are recognized in the period that the expenditures are incurred or the service is performed. Details of the transactions related to this account are as follows:

(in thousands of dollars)
$

$
Deferred revenue as at April 1st 9 92
Plus: Amounts received 1,820 1,664
Less: Services rendered 1,779 1,747
Deferred revenue as at March 31 50 9

6. Employee Future Benefits

(a) Pension benefits

The Agency's employees participate in the Public Service Pension Plan (the "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/Québec Pension Plan benefits and they are indexed to inflation.

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

The - expense amounts to $6.0 million ($6.0 million in -). For Group 1 members, the expense represents approximately 1.12 times (1.25 times in -) the employee contributions and, for Group 2 members, approximately 1.08 times (1.24 times in -) the employee contributions.

The Agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficits are recognized in the Financial Statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

Severance benefits provided to the Agency's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since , 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. By , all settlements for immediate cash out were completed. 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 thousands of dollars)
$

$
Accrued benefits obligation, beginning of year 3,602 3,773
Plus: Adjustment for the year (500) (36)
Less: Benefits paid during the year (335) (135)
Accrued benefits obligation, end of year 2,767 3,602

7. Contingent liabilities

Claims have been made against the Agency in the normal course of operations. During -, the Agency has recorded an allowance of $350,000 ($0 in -).

8. Other Liabilities

(in thousands of dollars)
$

$
Contractor's holdbacks 2,484 2,075
2,484 2,075

9. Accounts Receivable and Advances

(in thousands of dollars)
$

$
Receivables from other federal departments and organizations 11,916 12,277
Receivables from external entities 331 261
Other receivables and advances 48 7
Less: Allowance for doubtful accounts on receivables from external entities (10) (8)
Gross accounts receivable 12,285 12,537
Accounts receivable held on behalf of Government (1,725) (1,337)
Net accounts receivable 10,560 11,200

10. Prepaid Expenses

(in thousands of dollars)
$

$
RADARSAT-2 prepaid services 131,932 174,627
Other prepaid expenses 893 1,148
132,825 175,775

RADARSAT-2 prepaid services

Under a private-public partnership agreement, the Agency has invested $445.9 million in the construction and launch of the RADARSAT-2 satellite. In exchange of its participation, the Agency received credits for the supply of data (imagery) to Canadian Government departments and agencies over the life of the mission. Since the satellite is operational, federal departments and organizations received imagery valued at $326.1 million ($274.3 million for -). In addition, in -, the Agency received additional credits of $9.1 million ($3.0 million for -), resulting from a contractual arrangement with the supplier.

11. Tangible Capital Assets

Cost
(in thousands of dollars)
Opening Balance
as at
$
Acquisitions
$
Adjustments
Table note 1
$
Disposals and
Write-Offs
$
Closing Balance
as at
$
Land 85 - - - 85
Buildings, works and infrastructure 138,955 - 2,291 - 141,246
Material and equipment 42,882 828 - (1,925) 41,785
Computer material 15,315 47 1,453 (1,740) 15,075
Computer software 11,142 69 906 - 12,117
Other equipment Table note 2 1,367,084 87 5,452 - 1,372,623
Motor vehicles 74 59 (24) - 109
Other vehicles 455 52 - (41) 466
Assets under construction 984,832 152,444 (10,102) (4,958) 1,122,216
2,560,824 153,586 (24) (8,664) 2,705,722
Accumulated amortization
(in thousands of dollars)
Opening Balance
as at
$
Amortization
$
Adjustments
$
Disposals and
Write-Offs
$
Closing Balance
as at
$
Buildings, works and infrastructure 93,166 4,505 - - 97,671
Material and equipment 33,189 1,629 - (1,432) 33,386
Computer material 13,931 477 - (1,727) 12,681
Computer software 10,354 679 - - 11,033
Other equipmentTable note 2 1,083,213 36,269 - - 1,119,482
Motor vehicles 35 11 (24) - 22
Other vehicles 307 34 - (41) 300
1,234,195 43,604 (24) (3,200) 1,274,575
Net book value
(in thousands of dollars)
Opening Balance
as at
$
Closing Balance
as at
$
Land 85 85
Buildings, works and infrastructure 45,789 43,575
Material and equipment 9,693 8,399
Computer material 1,384 2,394
Computer software 788 1,084
Other equipment 283,871 253,141
Motor vehicles 39 87
Other vehicles 148 166
Assets under construction 984,832 1,122,216
Net Book Value 1,326,629 1,431,147

12. Other Receivables

(in thousands of dollars)
$

$
Non-monetary exchange CSA/NASA 7,059 7,468
Other non-monetary exchange - 16
7,059 7,484

Non-monetary exchange CSA/NASA

Under the International Space Station Agreement, which was executed in , and ratified by Canada in year , following the passing of the Civil International Space Station Agreement Implementation Act, in the Agency signed a barter agreement with NASA in , which the fair value was estimated at $20.8 million U.S. This agreement provided that the Agency would exchange a part of its utilization rights on the International Space Station and agreed to assume repair costs for its Special Purpose Dexterous Manipulator. In return, NASA would provide to the Agency, astronaut training, satellite and launch services. The transactions under this barter agreement took place over the lifetime of the International Space Station. During fiscal years to , the Agency received all of the astronaut training valued at $12.6 million CDN and launch services valued at $5.5 million CDN, and NASA did exercise the option to access its proportion of Canada's utilization rights on the International Space Station valued at $20.8 million CDN. As at , the Agency recorded a net value of $7.1 million CDN as other receivables which corresponds to the residual receivable in regards to the barter agreement and the effect of the variances in the exchange rates. In regards to this barter agreement or other agreements of the same kind that the Agency may enter into with its International Partners under the Agreement on the International Space Station, the Agency was granted an exemption by Treasury Board under the Policy on Accounting for Non-Monetary Transactions and does not have to charge the transactions to its appropriation.

13. Contractual Obligations

The nature of the Agency's activities can result in some large multi-year contracts and obligations whereby the Agency will be obligated to make future payments in order to carry out its transfer payment programs, for the construction of assets and for the acquisitions of goods and services. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)
$

$

$

$
&
thereafter
$
Total
$
Construction of assets 85,627 63,069 4,000 - - 152,696
Transfer payments 21,255 24,405 23,065 17,133 30,599 116,457
Acquisitions of goods and services 38,966 5,012 2,396 - - 46,374
Total 145,848 92,486 29,461 17,133 30,599 315,527

Contractual obligations for the construction of assets are mostly related to the construction of RADARSAT Constellation. The acquisition of goods and services is mostly related to the Canadian Space Station Program, while obligations for transfer payments are related to the contributions to the European Space Agency.

14. Related Party Transactions

The Agency is related as a result of common ownership to all government departments, organizations, and Crown Corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Agency received common services without charge from other government departments as disclosed below.

(a) Common services provided without charge by other government departments

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

(in thousands of dollars)
$

$
Employer's contribution to the health and dental insurance plans 5,446 4,977
Accommodation 53 207
Legal Services - 12
5,499 5,196

The Government has centralized some of its administrative activities in order to optimise the efficiency and the cost-effectiveness of the program delivery to the public. The Government uses central agencies and common services organizations so that one department performs services for all departments and organizations without charge. The costs of these services, such as payroll and cheque issuance services provided by Public Services and Procurement Canada , information technology (IT) infrastructure services in the areas of data centre and network services provided by Shared Services Canada and audit services provided by the Auditor General, are not included in the Agency's Statement of Operations and the Agency's Net Financial Position.

(b) Other transactions with related parties

(in thousands of dollars)
$

$
Expenses - other government departments and organizations 26,024 23,417
Revenues - other government departments and organizations 47 13

Expenses and revenues disclosed in section (b) exclude common services provided without charge, which are already disclosed in section (a).

15. Segmented Information

Presentation by segment is based on the Agency's Program Alignment Architecture (PAA). 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 and revenues generated for main programs, by major object of expense and by revenue type. The results for the period are as follows:

(in thousands of dollars) Space
Exploration
$
Space Data, Information and Services
$
Future Canadian Space Capacity
$
Internal Services
$

$

$
Operating expenses
Professional and special services 57,833 13,687 17,128 7,756 96,404 100,158
Salaries and employee benefits 20,051 9,432 11,750 25,510 66,743 65,331
Acquisition of machinery and material 3,682 52,013 299 1,096 57,090 38,911
Amortization of tangible capital assets 34,174 3,610 1,288 4,532 43,604 43,445
Loss on disposal and write-offs of tangible capital assets 5,416 - 11 37 5,464 3
Travel and communications 2,324 566 581 670 4,141 3,306
Rentals 271 426 580 2,172 3,449 3,516
Information 125 1,388 23 1,284 2,820 11,264
Purchased repair and maintenance 3 28 147 1,464 1,642 2,632
Utilities, materials and supplies 97 57 294 1,107 1,555 1,709
Other 20 7 16 2,979 3,022 2,851
Expenses incurred on behalf of Government - - - (2) (2) -
Total operating expenses 123,996 81,214 32,117 48,605 285,932 273,126
Transfer payments
International organizations - - 34,500 - 34,500 27,803
Non-Profit Organizations 1,378 5,466 3,799 - 10,643 8,630
Industry - 759 9,509 - 10,268 8,111
Individuals - - 40 - 40 -
Total transfer payments 1,378 6,225 47,848 - 55,451 44,544
Total expenses 125,374 87,439 79,965 48,605 341,383 317,670
Revenues
Sale of goods and services - - 531 - 531 398
Lease and use of public property - 25 - 247 272 317
Sale of rights and privileges - 9 27 - 36 83
Gain on disposal of tangible assets - - - 7 7 1
Other revenues 2 9,156 - 39 9,197 3,047
Revenues earned on behalf of Government (1) (9,190) (558) (258) (10,007) (3,824)
Total Revenues 1 - - 35 36 22
Net cost of operations 125,373 87,439 79,965 48,570 341,347 317,648

16. Comparative information

Comparative figures have been reclassified in order to comply with the current year's presentation.

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