Language selection

Search

Top of page

Financial Statements -

On this page

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 financial statements rests with the management of the Canadian Space Agency. These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on the Canadian public sector accounting standards.

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 Financial Management and the results and 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 Lisa Campbell, President, in Longueuil, Canada, on .

The original version was signed by Jean-Claude Piedboeuf, B. Ing., Ph. D, 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) 77,244 67,351
Vacation pay and compensatory leave 7,554 6,473
Deferred revenue (note 5) 44 102
Severance benefits (note 6(b)) 2,468 2,691
Contingent liabilities (note 7) 140 -
Other liabilities (note 8) 1,773 1,592
Total net liabilities 89,223 78,209
Assets
Financial assets
Due from the Consolidated Revenue Fund 71,288 61,787
Accounts receivable and advances (note 9) 9,271 7,935
Total gross financial assets 80,559 69,722
Financial assets held on behalf of Government
Accounts receivable and advances (note 9) (393) (797)
Total financial assets held on behalf of Government (393) (797)
Total net financial assets 80,166 68,925
Agency's net debt 9,057 9,284
Non-financial assets
Prepaid expenses (note 10) 7,256 23,887
Tangible capital assets (note 11) 1,535,031 1,535,281
Total non-financial assets 1,542,287 1,559,168
Agency's net financial position 1,533,230 1,549,884

Contractual obligations (note 12)

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

The original version was signed by Lisa Campbell, President, in Longueuil, Canada, on .

The original version was signed by Jean-Claude Piedboeuf, B. Ing., Ph. D., 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
Canada in Space 295,772 292,330 288,907
Internal Services 60,193 63,224 58,523
Expenses incurred on behalf of Government - - (28)
Total Expenses 355,965 355,554 347,402
Revenues
Sale of goods and services 355 419 439
Location and use of public property 259 238 312
Sale of rights and privileges 22 43 6
Other revenues 255 2,772 18,249
Revenues earned on behalf of Government (867) (3,416) (18,987)
Total Revenues 24 56 19
Net cost of operations before government funding and transfers 355,941 355,498 347,383
Government funding and transfers
Net cash provided by Government of Canada - 322,721 366,432
Change in due from Consolidated Revenue Fund - 9,501 (7,507)
Services provided without charge by other government departments (note 13(a)) - 6,657 6,730
Other transfers of assets from other government departments - (35) (8,410)
Total Government funding and transfers - 338,844 357,245
Net cost of operations after government funding and transfers - 16,654 (9,862)
Agency's net financial position - Beginning of year - 1,549,884 1,540,022
Agency's net financial position - End of year - 1,533,230 1,549,884

Other transactions with related parties (note 13(b))

Segmented information (note 14)

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 16,654 (9,862)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 11) 47,804 75,927
Amortization of tangible capital assets (note 11) (48,014) (47,565)
Proceeds from disposal of tangible capital assets (14) (6)
Net loss on disposal and write-offs of tangible capital assets (26) (18)
Total change due to tangible capital assets (250) 28,338
Change due to prepaid expenses (16,631) (17,009)
Net increase (decrease) in the Agency's net debt (227) 1,467
Agency's net debt - Beginning of year 9,284 7,817
Agency's net debt - End of year 9,057 9,284

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 355,498 347,383
Non-cash items:
Amortization of tangible capital assets (note 11) (48,014) (47,565)
Net loss on disposal and write-offs of tangible capital assets (26) (18)
Services provided without charge by other government departments (note 13(a)) (6,657) (6,730)
Variations in Statement of Financial Position:
Increase in accounts receivable and advances 1,740 1,277
Decrease in prepaid expenses (16,631) (17,009)
Decrease (increase) in accounts payable and accrued liabilities (9,893) 6,121
Increase in vacation pay and compensatory leave (1,081) (1,570)
Decrease (increase) in deferred revenue 58 (100)
Decrease (increase) in severance benefits 223 (25)
Increase in contingent liabilities (140) -
Decrease (increase) in other liabilities (181) 337
Other transfers of assets from other government departments 35 8,410
Cash used in operating activities 274,931 290,511
Capital Investing Activities
Acquisition of tangible capital assets (note 11) 47,804 75,927
Proceeds from disposal of capital assets (14) (6)
Cash used in capital investing activities 47,790 75,921
Net cash provided by Government of Canada 322,721 366,432

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

Notes to the Financial Statements (Unaudited)

In this section
  1. Authority and Objectives
  2. Summary of Significant Accounting Policies
  3. Parliamentary Authorities
  4. Accounts Payable and Accrued Liabilities
  5. Deferred Revenue
  6. Employee Future Benefits
  7. Contingent liabilities
  8. Other Liabilities
  9. Accounts Receivable and Advances
  10. Prepaid Expenses
  11. Tangible Capital Assets
  12. Contractual Obligations
  13. Related Party Transactions
  14. Segmented Information
  15. Subsequent events
  16. Comparative information

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 mandate of the Canadian Space Agency is "To promote the peaceful use and development of space, to advance the knowledge of space through science and to ensure that space science and technology provide social and economic benefits for Canadians".

The Agency fulfills its mandate through the following core responsibilities:

Canada in space

The Canadian Space Agency coordinates the space policies and programs of the government of Canada; ensures that other government departments and agencies have access to space data, information, and services to deliver on their mandate; plans, directs and manages projects relating to scientific or industrial space research and the development of space science and technology; promotes the transfer and diffusion of space technology to and throughout the Canadian industry; and encourages the commercial exploitation of the space capabilities, technology, facilities and systems. The Canadian Space Agency also aims to build Canada's capacity and engage the next generation of space scientists and engineers and provide opportunities to inspire young people to develop the required skills and to pursue studies and careers in science, technology, engineering and math.

Internal services

Internal Services are groups of related activities and resources that the Federal Government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refer to the activities and resources of ten distinct services that support program delivery in the organization, regardless of the Internal Services delivery model in a department. These services are: Acquisition Management Services, Communications Services, Financial Management Services, Human Resources Management Services, Information Management Services, Information Technology Services, Legal Services, Materiel Management Services, Management and Oversight Services, Real Property Management 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 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 - Departmental Plan. 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 because these amounts were not included in the - Departmental Plan.

(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 received from external parties for specified purposes are recorded as deferred revenue, provided the Agency has an obligation 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 in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
  • 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 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 charged 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 recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
  2. Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Governement 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) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in note 11. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

(i) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision 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.

(j) Foreign currency transactions

Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars using the rate of exchange in effect at March 31st. 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.

(k) Measurement uncertainty

The preparation of the 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 estimated are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. 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.

(l) Related party transactions

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

  1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
  2. Certain services received on a without charge basis are recorded for the Agency's financial statement purposes at the carrying amount.

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 in prior, current or future years. 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 to current year parliamentary authorities used

(in thousands of dollars)
$

$
Net cost of operations before government funding and transfers 355,498 347,383
Adjustments for items affecting net cost of operations but not affecting authorities
Amortization of tangible capital assets (note 11) (48,014) (47,565)
Services provided without charge by other government departments (note 13(a)) (6,657) (6,730)
Refund of previous years' expenditures 1,485 289
Decrease (increase) in severance benefits 223 (25)
Increase in vacation pay and compensatory leave (1,081) (1,570)
Increase in contingent liabilities (140) -
Net loss on disposal and write-offs of tangible capital assets (26) (18)
Change in non-monetary exchange CSA/NASA (1,980) (728)
Additional Data Credit RADARSAT-2 - (26,400)
Other (57) 887
299,251 265,523
Adjustments for items not affecting net cost of operations but affecting authorities
Acquisition of tangible capital assets (note 11) 47,804 75,927
Proceeds from disposal of tangible capital assets (14) (6)
Decrease in prepaid expenses (16,631) (17,009)
31,159 58,912
Current year authorities used 330,410 324,435

(b) Authorities provided and used

(in thousands of dollars)
$

$
Authorities provided
Vote 1 - Operating expenditures 204,688 189,687
Vote 5 - Capital expenditures 155,522 182,468
Vote 10 - Grants and contributions 80,294 59,626
Statutory amounts 10,947 10,057
451,451 441,838
Less:
Authorities available for use in future years 49 1
Lapsed: Operating 13,220 10,818
Lapsed: Capital 107,718 106,541
Lapsed: Grants and contributions 54 43
121,041 117,403
Current year authorities used 330,410 324,435

Lapsed funds are unspent funds at year-end, which can be eligible for a carryforward to the subsequent year.

4. Accounts Payable and Accrued Liabilities

(in thousands of dollars)
$

$
Accounts payable - External parties 26,714 25,064
Contractor's holdbacks 5,415 4,726
Accounts payable – Other governement departments and agencies 1,216 1,655
Other accounts payable 31 3
Total accounts payable 33,376 31,448
Accrued liabilities 43,868 35,903
Total accounts payable and accrued liabilities 77,244 67,351

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 102 2
Amounts received 985 1,422
Services rendered (1,043) (1,322)
Deferred revenue as at March 31 44 102

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 $7.4 million ($7.0 million in -). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in -) the employee contributions and, for Group 2 members, approximately 1 time (1 time 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 Consolidated 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 , substantially 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 benefit obligation, beginning of year 2,691 2,666
Expense for the year 79 424
Benefits paid during the year (302) (399)
Accrued benefit obligation, end of year 2,468 2,691

7. Contingent liabilities

During -2021, an allowance of $140,000 ($0 in -) has been recorded, related to a claim made against the Agency in the normal course of operations.

8. Other Liabilities

(in thousands of dollars)
$

$
Contractor's holdbacks 1,773 1,177
Research Collaboration Agreement - SMILE-UVI - 415
1,773 1,592

Research Collaboration Agreement - SMILE-UVI (Solar wind Magnetosphere Ionosphere Link Explorer Ultra-Violet Imager)

This account was established to record funds received from the University of Calgary for the financing of the development of the Ultra-Violet Imager Infrastructure.

9. Accounts Receivable and Advances

(in thousands of dollars)
$

$
Receivables from other government departments and agencies 8,822 6,315
Receivables from external entities 339 1,370
Other receivables and advances 120 291
Allowance for doubtful accounts on receivables from external entities (10) (41)
Gross accounts receivable 9,271 7,935
Accounts receivable held on behalf of Government (393) (797)
Net accounts receivable 8,878 7,138

10. Prepaid Expenses

(in thousands of dollars)
$

$
Non-monetary exchange CSA/NASA 6,283 4,303
Other prepaid expenses 973 1,069
RADARSAT-2 prepaid services - 18,515
7,256 23,887

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 take place over the lifetime of the International Space Station. As at , the Agency recorded a net value of $6.3 million CDN which corresponds to the residual receivable in regards to the barter agreement. 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.

11. Tangible Capital Assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follow:

Asset category Amortization period
Buildings, works and infrastructure 9-40 years
Material and equipment 9-20 years
Computer material 5-10 years
Computer software 3-15 years
Other equipment 3-30 years
Motor vehicles 5 years
Other vehicles 10 years
Leasehold improvements Lesser of the remaining term of lease or useful life of the improvement

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.

Cost
(in thousands of dollars)
Opening Balance

$
Acquisitions
$
Adjustments
Table note 1
$
Disposals and
Write-Offs
$
Closing Balance

$
Land 85 - - - 85
Buildings, works and infrastructure 155,301 - 15,034 - 170,335
Material and equipment 45,569 218 - (597) 45,190
Computer material 14,737 1,119 - (117) 15,739
Computer software 16,490 78 27,950 - 44,518
Other equipment 1,410,383 - 969,706 (230) 2,379,859
Motor vehicles 161 - - (23) 138
Other vehicles 549 22 - - 571
Leasehold improvements 742 - - - 742
Assets under construction 1,290,428 46,367 (1,012,690) - 324,105
2,934,445 47,804 - (967) 2,981,282
Accumulated amortization
(in thousands of dollars)
Opening Balance

$
Amortization
$
Adjustments
$
Disposals and
Write-Offs
$
Closing Balance

$
Buildings, works and infrastructure 111,009 4,438 - - 115,447
Material and equipment 36,675 1,250 - (561) 37,364
Computer material 13,300 334 - (118) 13,516
Computer software 12,175 773 - - 12,948
Other equipment 1,225,347 41,074 - (230) 1,266,191
Motor vehicles 61 32 - (18) 75
Other vehicles 411 20 - - 431
Leasehold improvements 186 93 - - 279
1,399,164 48,014 - (927) 1,446,251
Net book value
(in thousands of dollars)
Opening Balance

$
Closing Balance

$
Land 85 85
Buildings, works and infrastructure 44,292 54,888
Material and equipment 8,894 7,826
Computer material 1,437 2,223
Computer software 4,315 31,570
Other equipment 185,036 1,113,668
Motor vehicles 100 63
Other vehicles 138 140
Leasehold Improvements 556 463
Assets under construction 1,290,428 324,105
Net Book Value 1,535,281 1,535,031

12. Contractual Obligations

The nature of the Agency's activities may 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
$
Transfer payments 46,924 36,474 28,644 23,915 69,703 205,660
Acquisitions of goods and services 61,864 54,778 51,504 27,266 - 195,412
Construction of assets 21,545 6,767 - - - 28,312
Total 130,333 98,019 80,148 51,181 69,703 429,384

Contractual obligations for transfer payments are related to the contributions to the European Space Agency. The construction of assets is mostly related to the Quantum Encryption and Science Satellite (QEYSSat) demonstration mission while obligations for the acquisition of goods and services are mostly related to the Canadian Space Station Program.

13. Related Party Transactions

The Agency is related as a result of common ownership to all government departments, organizations, and Crown Corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The Agency enters into transactions with these entities in the normal course of business and on normal trade terms.

(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 at the carrying value 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 6,488 6,565
Accommodation 169 165
6,657 6,730

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a results, the Government uses central agencies and common service organizations so that one department performs services for all departments and agencies 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 Office of the Auditor General, are not included in the Agency's Statement of Operations and the Agency's Net Financial Position.

(b) Other transactions with other government departments and agencies

(in thousands of dollars)
$

$
Expenses 33,817 32,763
Revenues 237 222

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

14. Segmented Information

Presentation by segment is based on the Agency'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 and revenues generated for main core responsibilities, by major object of expense and by revenue type. The results for the period are as follows:

(in thousands of dollars) Canada in Space
$
Internal Services
$

$

$
Operating expenses
Professional and special services 94,391 10,309 104,700 93,320
Salaries and employee benefits 49,797 38,372 88,169 84,592
Amortization of tangible capital assets 43,888 4,126 48,014 47,565
Acquisition of machinery and material 19,743 1,088 20,831 45,667
Rentals 806 2,275 3,081 3,733
Information 1,221 1,393 2,614 2,818
Travel and communications 1,958 147 2,105 5,000
Purchased repair and maintenance 213 1,177 1,390 1,102
Utilities, materials and supplies 115 1,033 1,148 1,546
Loss on disposal and write-offs of tangible capital assets - 34 34 24
Other 5 3,270 3,275 2,525
Expenses incurred on behalf of Government - - - (28)
Total operating expenses 212,137 63,224 275,361 287,864
Transfer payments
International organizations 50,807 - 50,807 36,092
Industry 17,755 - 17,755 12,118
Non-Profit Organizations 11,629 - 11,629 11,269
Individuals 2 - 2 59
Total transfer payments 80,193 - 80,193 59,538
Total expenses 292,330 63,224 355,554 347,402
Revenues
Sale of goods and services 419 - 419 439
Lease and use of public property - 238 238 312
Sale of rights and privileges 43 - 43 6
Gain on disposal of tangible assets - 8 8 6
Other revenues 2,509 255 2,764 18,243
Revenues earned on behalf of Government (2,958) (458) (3,416) (18,987)
Total Revenues 13 43 56 19
Net cost of operations 292,317 63,181 355,498 347,383

15. Subsequent events

The outbreak of the Coronavirus disease ["COVID-19"] has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. The duration and impact of the COVID-19 outbreak is unknown at this time. The Agency has determined the impact of COVID-19 to be non-material on its financial statements for the year ending . Although we do not foresee any major impact on the Agency's activities, any possible future impacts on the Agency's financial position and financial results in future periods are still to be determined.

16. Comparative information

Certain comparative figures have been reclassified in order to conform to the current year's presentation.

Date modified: