Financial Statements -
On this page
- Statement of Management Responsibility Including Internal Control over Financial Reporting
- Statement of Financial Position (Unaudited)
- Statement of Operations and the Agency's Net Financial Position (Unaudited)
- Statement of Change in the Agency's Net Debt (Unaudited)
- Statement of Cash Flows (Unaudited)
- Notes to the Financial Statements (Unaudited)
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 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 Departmental 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 Éric Vachon, Acting Vice-President, Corporate Strategy and Innovation and Chief Financial Officer, in Longueuil, Canada, on .
Statement of Financial Position (Unaudited)
Liabilities | $ |
Restated (note 14) $ |
---|---|---|
Accounts payable and accrued liabilities (note 4) | 176,025 | 100,684 |
Vacation pay and compensatory leave | 7,174 | 7,318 |
Asset retirement obligations (note 5) | 574 | 560 |
Deferred revenue (note 6) | 90 | 44 |
Severance benefits (note 7(b)) | 2,085 | 2,235 |
Other liabilities (note 8) | 2,394 | 3,250 |
Total net liabilities | 188,342 | 114,091 |
Assets | $ |
Restated (note 14) $ |
---|---|---|
Financial assets | ||
Due from the Consolidated Revenue Fund |
161,666 | 94,112 |
Accounts receivable and advances (note 9) |
16,880 | 9,516 |
Total gross financial assets |
178,546 | 103,628 |
Financial assets held on behalf of Government | ||
Accounts receivable and advances (note 9) |
(42) | (553) |
Total financial assets held on behalf of Government |
(42) | (553) |
Total net financial assets | 178,504 | 103,075 |
Agency's net debt | 9,838 | 11,016 |
Non-financial assets | ||
Prepaid expenses |
1,774 | 1,070 |
Tangible capital assets (note 10) |
1,323,420 | 1,363,152 |
Total non-financial assets |
1,325,194 | 1,364,222 |
Agency's net financial position | 1,315,356 | 1,353,206 |
Contractual obligations (note 11)
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 Éric Vachon, Acting Vice-President, Corporate Strategy and Innovation and Chief Financial Officer, in Longueuil, Canada, on .
Statement of Operations and the Agency's Net Financial Position (Unaudited)
Expenses | Planned results $ |
Actual $ |
Actual restated (note 14) $ |
---|---|---|---|
Canada in Space | 498,353 | 467,550 | 486,999 |
Internal Services | 61,460 | 76,500 | 65,321 |
Total Expenses | 559,813 | 544,050 | 552,320 |
Revenues | Planned results $ |
Actual $ |
Actual restated (note 14) $ |
---|---|---|---|
Sale of goods and services | 790 | 632 | 583 |
Location and use of public property | 239 | 260 | 241 |
Sale of rights and privileges | 32 | 47 | 27 |
Other revenues | 1,085 | 387 | 651 |
Revenues earned on behalf of Government | (1,495) | (1,297) | (1,330) |
Total Revenues | 651 | 29 | 172 |
Net cost of operations before government funding and transfers | 559,162 | 544,021 | 552,148 |
Government funding and transfers | Planned results $ |
Actual $ |
Actual restated (note 14) $ |
---|---|---|---|
Net cash provided by Government of Canada | - | 430,537 | 342,223 |
Change in due from Consolidated Revenue Fund | - | 67,554 | 22,824 |
Services provided without charge by other government departments (note 12(a)) | - | 8,104 | 7,548 |
Other transfers of assets from other government departments | - | (24) | (45) |
Total Government funding and transfers | - | 506,171 | 372,550 |
Net cost of operations after government funding and transfers | - | 37,850 | 179,598 |
Agency's net financial position - Beginning of year | - | 1,353,206 | 1,532,804 |
Agency's net financial position - End of year | - | 1,315,356 | 1,353,206 |
- Other transactions with related parties (note 12(b))
- Segmented information (note 13)
The accompanying notes are an integral part of these financial statements.
Statement of Change in the Agency's Net Debt (Unaudited)
$ |
Restated (note 14) $ |
|
---|---|---|
Net cost of operations after government funding and transfers | 37,850 | 179,598 |
Change due to tangible capital assets | ||
Acquisition of tangible capital assets (note 10) |
174,852 | 44,746 |
Amortization of tangible capital assets (note 10) |
(208,210) | (216,662) |
Proceeds from disposal of tangible capital assets |
(610) | (6) |
Net loss on disposal and write-offs of tangible capital assets |
(5,764) | (78) |
Total change due to tangible capital assets | (39,732) | (172,000) |
Change due to prepaid expenses | 704 | (6,186) |
Increase (decrease) in the Agency's net debt | (1,178) | 1,412 |
Agency's net debt - Beginning of year | 11,016 | 9,604 |
Agency's net debt - End of year | 9,838 | 11,016 |
The accompanying notes are an integral part of these financial statements.
Statement of Cash Flows (Unaudited)
Operating Activities | $ |
Restated (note 14) $ |
---|---|---|
Net cost of operations before government funding and transfers | 544,021 | 552,148 |
Non-cash items: | ||
Amortization of tangible capital assets (note 10) |
(208,210) | (216,662) |
Net loss on disposal and write-offs of tangible capital assets |
(5,764) | (78) |
Services provided without charge by other government departments (note 12(a)) |
(8,104) | (7,548) |
Variations in Statement of Financial Position: | ||
Increase in accounts receivable and advances | 7,875 | 85 |
Increase (decrease) prepaid expenses | 704 | (6,186) |
Increase in accounts payable and accrued liabilities | (75,341) | (23,440) |
Decrease in vacation pay and compensatory leave | 144 | 236 |
Increase in asset retirement obligations | (14) | (13) |
Increase in deferred revenue | (46) | - |
Decrease in severance benefits | 150 | 233 |
Decrease in contingent liabilities | - | 140 |
Decrease (increase) in other liabilities | 856 | (1,477) |
Other transfers of assets from other government departments | 24 | 45 |
Cash used in operating activities | 256,295 | 297,483 |
Capital Investing Activities | $ |
Restated (note 14) $ |
---|---|---|
Acquisition of tangible capital assets (note 10) | 174,852 | 44,746 |
Proceeds from disposal of capital assets | (610) | (6) |
Cash used in capital investing activities | 174,242 | 44,740 |
Net cash provided by Government of Canada | 430,537 | 342,223 |
The accompanying notes are an integral part of these financial statements.
Notes to the Financial Statements (Unaudited)
In this section
- Authority and Objectives
- Summary of Significant Accounting Policies
- Parliamentary Authorities
- Accounts Payable and Accrued Liabilities
- Asset Retirement Obligations
- Deferred Revenue
- Employee Future Benefits
- Other Liabilities
- Accounts Receivable and Advances
- Tangible Capital Assets
- Contractual Obligations
- Related Party Transactions
- Segmented Information
- Adoption of a new accounting standard
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 6).
- 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 or she 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, legal services and employer contributions to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
(f) Employee future benefits (note 7)
- 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.
- 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 Government as a whole.
(g) Financial instruments
A contract establishing a financial instrument creates, at its inception, rights, and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. The Agency recognizes a financial instrument when it becomes a party to a financial instrument contract.
Financial instruments consist of accounts receivable, and accounts payable and accrued liabilities.
All financial assets and liabilities are recorded at cost or amortized cost. Any associated transaction costs are added to the carrying value upon initial recognition.
Accounts receivable are initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.
(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 10. 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) Asset retirement obligations
Asset retirement obligation is recognized when all of the following criteria are satisfied: there is a legal obligation to incur retirement costs in relation to a tangible capital asset; the past event or transaction giving rise to the retirement liability has occurred; it is expected that the government will give up future economic benefits to retire the asset; and a reasonable estimate of the amount can be made. The costs to retire an asset are normally capitalized and amortized over the asset's estimated remaining useful life. An asset retirement obligation may arise in connection with a tangible capital asset that is not recognized or no longer in productive use. In this case, the asset retirement cost would be expensed. The measurement of the liability is the Government's best estimate of the amount required to retire a tangible capital asset.
When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable, and expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the government's cost of borrowing, associated with the estimated number of years to complete the retirement or remediation.
The recorded liabilities are adjusted each year, as required, for present value adjustments, inflation, new obligations, and changes in management estimates and actual costs incurred.
(k) 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.
(l) 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 estimates 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 asset retirement obligations, contingent liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
Asset retirement obligations are subject to measurement uncertainty due to the evolving technologies used in the estimation of the costs of asset retirements, the use of discounted present value of future estimated costs, inflation, interest rates and the fact that not all sites have had a complete assessment of the extent and nature of asset retirement costs. Changes to underlying assumptions, the timing of the expenditures, the technology employed, the revisions to environmental standards or changes in regulatory requirements could result in significant changes to liabilities recorded.
(m) 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:
- Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
- 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:
$ |
Restated (note 14) $ |
|
---|---|---|
Net cost of operations before government funding and transfers | 544,021 | 552,148 |
Adjustments for items affecting net cost of operations but not affecting authorities | ||
Amortization of tangible capital assets (note 10) |
(208,210) | (216,662) |
Services provided without charge by other government departments (note 12(a)) |
(8,104) | (7,548) |
Refund of previous years' expenditures |
318 | 977 |
Decrease in severance benefits |
150 | 233 |
Decrease in vacation pay and compensatory leave |
144 | 236 |
Increase in asset retirement obligations |
(14) | (13) |
Decrease in contingent liabilities |
- | 140 |
Net loss on disposal and write-offs of tangible capital assets |
(5,764) | (78) |
Other |
749 | 121 |
Subtotal | 323,290 | 329,554 |
Adjustments for items not affecting net cost of operations but affecting authorities | ||
Acquisition of tangible capital assets (note 10) |
174,852 | 44,746 |
Proceeds from disposal of tangible capital assets |
(610) | (6) |
Increase (decrease) in prepaid expenses |
704 | (6,186) |
Subtotal | 174,946 | 38,554 |
Current year authorities used | 498,236 | 368,108 |
$ |
$ |
|
---|---|---|
Authorities provided | ||
Vote 1 - Operating expenditures |
230,698 | 240,107 |
Vote 5 - Capital expenditures |
285,958 | 153,481 |
Vote 10 - Grants and contributions |
85,581 | 86,889 |
Statutory amounts |
13,195 | 11,073 |
Subtotal | 615,432 | 491,550 |
Less: | ||
Authorities available for use in future years |
- | 172 |
Lapsed : Operating |
5,574 | 14,432 |
Lapsed : Capital |
111,106 | 108,735 |
Lapsed : Grants and contributions |
516 | 55 |
Lapsed: Proceeds from the disposal of surplus Crown assets |
- | 48 |
Subtotal | 117,196 | 123,442 |
Current year authorities used | 498,236 | 368,108 |
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
$ |
$ |
|
---|---|---|
Accounts payable - External parties | 81,581 | 35,402 |
Contractor's holdbacks | 9,541 | 5,433 |
Accounts payable – Other government departments and agencies | 2,572 | 1,020 |
Other accounts payable | 21 | 31 |
Total accounts payable | 93,715 | 41,886 |
Accrued liabilities | 82,310 | 58,798 |
Total accounts payable and accrued liabilities | 176,025 | 100,684 |
5. Asset Retirement Obligations
The Agency has recorded asset retirement obligations for the removal of asbestos in buildings, and other asset retirement obligations.
The changes in asset retirement obligations during the year are as follows:
Asbestos $ |
Other $ |
$ |
Restated (note 14) $ |
|
---|---|---|---|---|
Asset retirement obligations as at April 1st | 517 | 43 | 560 | 547 |
Accretion expense Footnote 1 |
13 | 1 | 14 | 13 |
Asset retirement obligations as at March 31 | 530 | 44 | 574 | 560 |
The undiscounted future expenditures, adjusted for inflation, for the planned projects comprising the liability are $ 0.9 million ($0.9 million at ).
Key assumptions used in determining the provision are as follows:
Key assumption | ||
---|---|---|
Discount rate | 2.4 - 2.5% | 2.4 - 2.5% |
Discount period | 7 to 21 years | 8 to 22 years |
Long-term rate of inflation | 2% | 2% |
The International Space Station asset retirement obligation, in partnership with our international partners, has not been recognized in the financial statements due to the fact that they are subject to several uncertainties and a reasonable estimate cannot be determined at this time.
6. 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:
$ |
$ |
|
---|---|---|
Deferred revenue as at April 1st | 44 | 44 |
Amounts received |
1,208 | 1,071 |
Services rendered |
(1,162) | (1,071) |
Deferred revenue as at March 31 | 90 | 44 |
7. 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 $8.1 million ($7.3 million in -). For Group 1 members, the expense represents approximately 1.02 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:
$ |
$ |
|
---|---|---|
Accrued benefit obligation, beginning of year | 2,235 | 2,468 |
Expense for the year | 101 | 38 |
Benefits paid during the year | (251) | (271) |
Accrued benefit obligation, end of year | 2,085 | 2,235 |
8. Other Liabilities
$ |
$ |
|
---|---|---|
Contractor's holdbacks | 2,394 | 3,250 |
Total | 2,394 | 3,250 |
9. Accounts Receivable and Advances
$ |
$ |
|
---|---|---|
Receivables from other government departments and agencies | 16,575 | 9,153 |
Receivables from external entities | 205 | 302 |
Other receivables and advances | 106 | 70 |
Subtotal | 16,886 | 9,525 |
Allowance for doubtful accounts on receivables from external entities | (6) | (9) |
Gross accounts receivable | 16,880 | 9,516 |
Accounts receivable held on behalf of Government | (42) | (553) |
Net accounts receivable | 16,838 | 8,963 |
The following table provides an aging analysis of accounts receivable from external parties and the associated valuation allowances used to reflect their net recoverable value.
Accounts receivable from external parties | $ |
$ |
---|---|---|
Not past due | 192 | 266 |
Number of days past due | ||
1 to 30 |
4 | 36 |
31 to 60 |
9 | - |
Sub-total | 205 | 302 |
Less: Valuation allowance | (6) | (9) |
Total | 199 | 293 |
10. 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 | 4-20 years |
Computer material | 3-13 years |
Computer software | 3-15 years |
Other equipment | 2-30 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 Restated (note 14) $ |
Acquisitions $ |
Adjustments Footnote 2 $ |
Disposals and Write-Offs $ |
Closing Balance $ |
---|---|---|---|---|---|
Land | 85 | - | - | - | 85 |
Buildings, works and infrastructure | 182,353 | - | 2,966 | - | 185,319 |
Material and equipment | 45,786 | 233 | 1,198 | (442) | 46,775 |
Computer material | 16,092 | 158 | - | (42) | 16,208 |
Computer software | 43,536 | 133 | - | - | 43,669 |
Other equipment | 2,471,152 | 445 | 15,521 | (850) | 2,486,268 |
Motor vehicles | 178 | - | - | - | 178 |
Other vehicles | 571 | 44 | - | - | 615 |
Leasehold improvements | 742 | - | - | - | 742 |
Assets under construction | 263,979 | 173,839 | (19,685) | (5,739) | 412,394 |
Total | 3,024,474 | 174,852 | - | (7,073) | 3,192,253 |
Accumulated amortization (in thousands of dollars) |
Opening Balance Restated (note 14) $ |
Amortization $ |
Adjustments $ |
Disposals and Write-Offs $ |
Closing Balance $ |
---|---|---|---|---|---|
Buildings, works and infrastructure | 120,652 | 5,467 | - | - | 126,119 |
Material and equipment | 38,410 | 1,042 | - | (441) | 39,011 |
Computer material | 14,136 | 516 | - | (41) | 14,611 |
Computer software | 19,868 | 2,817 | - | - | 22,685 |
Other equipment | 1,467,330 | 198,221 | - | (217) | 1,665,334 |
Motor vehicles | 101 | 28 | - | - | 129 |
Other vehicles | 454 | 26 | - | - | 480 |
Leasehold improvements | 371 | 93 | - | - | 464 |
Total | 1,661,322 | 208,210 | - | (699) | 1,868,833 |
Net book value (in thousands of dollars) |
Opening Balance Restated (note 14) $ |
Closing Balance $ |
---|---|---|
Land | 85 | 85 |
Buildings, works and infrastructure | 61,701 | 59,200 |
Material and equipment | 7,376 | 7,764 |
Computer material | 1,956 | 1,597 |
Computer software | 23,668 | 20,984 |
Other equipment | 1,003,822 | 820,934 |
Motor vehicles | 77 | 49 |
Other vehicles | 117 | 135 |
Leasehold Improvements | 371 | 278 |
Assets under construction | 263,979 | 412,394 |
Net Book Value | 1,363,152 | 1,323,420 |
11. 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:
$ |
$ |
$ |
$ |
& thereafter $ |
Total $ |
|
---|---|---|---|---|---|---|
Transfer payments | 34,500 | 33,279 | 34,027 | 32,838 | 60,884 | 195,528 |
Construction of assets | 154,705 | 712 | - | - | - | 155,417 |
Acquisitions of goods and services | 60,456 | 24,478 | 12,909 | 5,128 | - | 102,971 |
Total | 249,661 | 58,469 | 46,936 | 37,966 | 60,884 | 453,916 |
Contractual obligations for transfer payments are mostly related to the contributions to the European Space Agency. The construction of assets is mostly related to the Canadarm3 and the Gateway External Robotics Interfaces while obligations for the acquisition of goods and services are mostly related to the Canadian Space Station Program and the Lunar Rover mission.
12. 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, legal services 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:
$ |
$ |
|
---|---|---|
Employer's contribution to the health and dental insurance plans | 7,812 | 7,280 |
Accommodation | 181 | 173 |
Legal Services | 111 | 95 |
Total | 8,104 | 7,548 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all 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
$ |
$ |
|
---|---|---|
Expenses | 40,831 | 36,524 |
Revenues | 368 | 373 |
Expenses and revenues disclosed in section (b) exclude common services provided without charge, which are already disclosed in section (a).
13. 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:
Canada in Space $ |
Internal Services $ |
$ |
Restated (note 14) $ |
|
---|---|---|---|---|
Operating expenses | ||||
Amortization of tangible capital assets |
203,455 | 4,755 | 208,210 | 216,662 |
Professional and special services |
100,393 | 13,560 | 113,953 | 127,225 |
Salaries and employee benefits |
59,622 | 44,630 | 104,252 | 95,036 |
Travel and communications |
7,503 | 841 | 8,344 | 5,483 |
Loss on disposal and write-offs of tangible capital assets |
5,638 | 128 | 5,766 | 82 |
Rentals |
2,409 | 3,064 | 5,473 | 4,914 |
Purchased repair and maintenance |
538 | 2,807 | 3,345 | 1,227 |
Acquisition of machinery and material |
1,754 | 1,417 | 3,171 | 3,107 |
Information |
934 | 1,580 | 2,514 | 8,229 |
Utilities, materials and supplies |
327 | 1,236 | 1,563 | 1,222 |
Other |
25 | 2,482 | 2,507 | 2,483 |
Total operating expenses | 382,598 | 76,500 | 459,098 | 465,670 |
Transfer payments | ||||
International organizations |
47,415 | - | 47,415 | 50,120 |
Industry |
22,626 | - | 22,626 | 22,864 |
Non-Profit Organizations |
14,790 | - | 14,790 | 13,666 |
Individuals |
121 | - | 121 | - |
Total transfer payments | 84,952 | - | 84,952 | 86,650 |
Total expenses | 467,550 | 76,500 | 544,050 | 552,320 |
Revenues | ||||
Sale of goods and services |
632 | - | 632 | 583 |
Lease and use of public property |
- | 260 | 260 | 241 |
Sale of rights and privileges |
47 | - | 47 | 27 |
Gain on disposal of tangible assets |
- | 2 | 2 | 4 |
Other revenues |
56 | 329 | 385 | 647 |
Revenues earned on behalf of Government |
(716) | (581) | (1,297) | (1,330) |
Total Revenues | 19 | 10 | 29 | 172 |
Net cost of operations | 467,531 | 76,490 | 544,021 | 552,148 |
14. Adoption of a new accounting standard
Effective the Government adopted the new Public Sector Accounting Standard PS3280 Asset Retirement Obligations. This standard requires public sector entities to recognize legally obligated costs associated with the retirement of tangible capital assets on acquisition, construction or development and expense those costs systematically over the life of the asset.
The Government applied the modified retrospective application transitional approach. On initial application of the standard, the Government recognized:
- a liability for any existing asset retirement obligations, adjusted for accumulated accretion to that date;
- an asset retirement cost capitalized as an increase to the carrying amount of the related tangible capital assets;
- accumulated amortization on that capitalized cost; and
- an adjustment to the opening balance of the accumulated surplus / deficit.
These amounts were measured using information, assumptions and discount rates that are current at the beginning of the fiscal year. The amount recognized as an asset retirement cost is measured as of the date the asset retirement obligation was incurred. Accumulated accretion and amortization are measured for the period from the date the liability would have been recognized had the provisions of this standard been in effect to the date as of which this standard is first applied.
A reconciliation of the restatement for the significant financial statement line items follows:
Statement of Financial Position: | As previously stated $ |
Effect of the adoption of the new accounting standard $ |
Restated $ |
---|---|---|---|
Asset retirement obligations | - | 560 | 560 |
Total net liabilities | 113,531 | 560 | 114,091 |
Agency's net debt | 10,456 | 560 | 11,016 |
Tangible capital assets | 1,363,039 | 113 | 1,363,152 |
Total non-financial assets | 1,364,109 | 113 | 1,364,222 |
Agency's net financial position | 1,353,653 | (447) | 1,353,206 |
Statement of Operations and the Agency's Net Financial Position: | As previously stated $ |
Effect of the adoption of the new accounting standard $ |
Restated $ |
---|---|---|---|
Total Expenses | 552,299 | 21 | 552,320 |
Net cost of operations before government funding and transfers | 552,127 | 21 | 552,148 |
Net cost of operations after government funding and transfers | 179,577 | 21 | 179,598 |
Agency's net financial position - Beginning of year | 1,533,230 | (426) | 1,532,804 |
Agency's net financial position - End of year | 1,353,653 | (447) | 1,353,206 |
Statement of Change in the Agency's Net Debt: | As previously stated $ |
Effect of the adoption of the new accounting standard $ |
Restated $ |
---|---|---|---|
Net cost of operations after government funding and transfers | 179,577 | 21 | 179,598 |
Total change due to tangible capital assets | (171,992) | (8) | (172,000) |
Increase in the Agency's net debt | 1,399 | 13 | 1,412 |
Agency's net debt - Beginning of year | 9,057 | 547 | 9,604 |
Agency's net debt - End of year | 10,456 | 560 | 11,016 |
Statement of Cash Flows: | As previously stated $ |
Effect of the adoption of the new accounting standard $ |
Restated $ |
---|---|---|---|
Net cost of operations before government funding and transfers | 552,127 | 21 | 552,148 |
Amortization of tangible capital assets | (226,654) | (8) | (226,662) |
Increase in asset retirement obligations | - | (13) | (13) |