Aboriginal Affairs and Northern Development Canada Financial Statements for the Year Ended March 31, 2012 (Unaudited)

PDF Version   (641 Kb, 49 Pages)

  


Table of Contents




Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2012, and all information contained in these statements rests with the management of Aboriginal Affairs and Northern Development Canada (AANDC). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

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

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

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

A risk-based assessment of the system of ICFR for the year ended March 31, 2012 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.

The effectiveness and adequacy of AANDC's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of AANDC'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 Minister.

The financial statements of AANDC have not been audited.

Original signed by Michael Wernick
___________________________
Michael Wernick
Deputy Minister
Original signed by Susan MacGowan
___________________________
Susan MacGowan, CMA
Chief Financial Officer

Gatineau, Canada
August 29, 2012




Statement of Financial Position (Unaudited)

As at March 31
(in thousands of dollars)

  2012 2011
Restated
(notes 20, 21)
Liabilities
Accounts payable and accrued liabilities (note 4) 727,689 875,694
Vacation pay and compensatory leave 17,488 18,103
Other liabilities (note 5) 76,058 68,949
Trust accounts (note 6) 939,080 1,148,048
Settled claims (note 7) 519,626 594,489
Provision for claims and litigation (note 8) 10,964,626 11,988,760
Environmental liabilities (note 8) 2,370,969 2,015,473
Provision for loan guarantees (note 8) 1,465 1,655
Employee future benefits (note 9) 44,001 80,567
Total liabilities 15,661,002 16,791,738
Financial assets
Due from the Consolidated Revenue Fund 1,706,281 2,053,931
Accounts receivable and advances (note 10) 59,503 92,889
Interest receivable (note 11) 2,008 1,458
Loans receivable (note 12) 790,044 773,586
Total gross financial assets  2,557,836 2,921,864 
Financial assets held on behalf of Government
Interest receivable (note 11) (2,008) (1,458)
Loans receivable (note 12) (790,044) (773,586)
Total financial assets held on behalf of government (792,052) (775,044)
Total net financial assets 1,765,784 2,146,820
Departmental net debt 13,895,218 14,644,918
Non-financial assets
Land held for future claims settlements (note 13) 26,270 26,167
Tangible capital assets (note 14) 52,580 54,320
Total non-financial assets 78,850 80,487 
Departmental net financial position (note 15) (13,816,368) (14,564,431)

  • Contingent liabilities (note 8)
  • Contractual obligations (note 16)

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

Original signed by Michael Wernick
___________________________
Michael Wernick
Deputy Minister
Original signed by Susan MacGowan
___________________________
Susan MacGowan, CMA
Chief Financial Officer

Gatineau, Canada
August 29, 2012





Statement of Operations and Departmental Net Financial Position (Unaudited)

For the year ended March 31
(in thousands of dollars)

  2012
Planned Results
2012 2011
Restated (notes 20, 21)
Expenses
People 3,696,684 3,465,466 4,429,203
Land and Economy  1,511,835 1,523,260  1,596,772
Government  1,627,693 1,050,344   879,037
North 106,312   688,438   588,258
Internal Services 370,740   391,713   418,276
Office of the Federal Interlocutor 42,232   38,767   38,737
Expenses incurred on behalf of Government (17,780) (11,333)   2,306
Total expenses 7,337,716 7,146,655 7,952,589 
Revenues
Resource royalties 116,354 143,738 124,211
Norman Wells project profits 87,782 97,176 102,181
Miscellaneous 1,213 28,310 9,039
Interest on loans 9,229 7,000 6,913
Leases and rentals 5,279 4,862 5,111
Finance and administrative services 0 644 0
Revenues earned on behalf of Government (219,857) (281,086) (247,455)
Total revenues 0 644 0
Net cost from continuing operations 7,337,716  7,146,011 7,952,589 
Transferred operations (note 18)
Expenses 0 16,049 30,087
Net cost of transferred operations 0 16,049 30,087
Net cost of operations before government funding and transfers  7,337,716 7,162,060 7,982,676
Government funding and transfers
Net cash provided by Government n/a 8,163,499 8,251,378
Change in due from the Consolidated Revenue Fund n/a (347,650) (130,631)
Services provided without charge by other government departments (note 17) n/a 95,945 89,341
Transfer of assets and liabilities to other government departments (note 18) n/a (1,671) 0
Net cost of operations after government funding and transfers  n/a (748,063) (227,412)
Departmental net financial position – Beginning of year  n/a (14,564,431) (14,791,843)
Departmental net financial position – End of year n/a (13,816,368) (14,564,431)
  • Segmented information (note 19)

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






Statement of Change in Departmental Net Debt (Unaudited)

For the year ended March 31
(in thousands of dollars)

  2012 2011
Restated (notes 20, 21)
Net cost of operations after government funding and transfers (748,063) (227,412)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 14) 9,343 11,260
Amortization of tangible capital assets (note 14) (6,635) (6,512)
Proceeds from disposal of tangible capital assets (371) (374)
Gain (loss) on disposal of tangible capital assets (1,343)   329
Transfer to other government departments (note 18) (2,734) 0
Total change due to tangible capital assets (1,740) 4,703
Change due to prepaid expenses 0 (2,154)
Change due to land held for future claims settlements 103 10
Net increase (decrease) in departmental net debt (749,700) (224,853)
Departmental net debt – Beginning of year 14,644,918 14,869,771
Departmental net debt – End of year 13,895,218 14,644,918

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





Statement of Cash Flow (Unaudited)

For the year ended March 31
(in thousands of dollars)

  2012 2011
Restated (notes 20, 21)
Operating activities
Net cost of operations before government funding and transfers 7,162,060  7,982,676
Non-cash items:
Amortization of tangible capital assets (note 14) (6,635) (6,512)
Gain (loss) on disposal of tangible capital assets (1,343) 329
Services provided without charge by other government departments (note 17) (95,945) (89,341)
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances (33,386) (34,919)
Increase (decrease) in prepaid expenses 0 (2,154)
Increase (decrease) in land held for future claims settlements 103 10
Decrease (increase) in liabilities 1,130,736 390,403
Transfer of liabilities to other government departments (note 18) (1,063) 0
Cash used by operating activities 8,154,527 8,240,492
Capital investment activities
Acquisitions of tangible capital assets 9,343 11,260
Proceeds from disposal of tangible capital assets (371) (374)
Cash used in capital investing activities 8,972 10,886
Net cash provided by Government of Canada 8,163,499 8,251,378

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





Notes to the Financial Statements (Unaudited) for the Year Ended March 31

1. Authority and Objectives

The Department, under its legal name the Department of Indian Affairs and Northern Development, was established by the Government Organization Act, 1966 and continued by the Department of Indian Affairs and Northern Development Act (R.S., 1985, c. I-6). It is named in Schedule I of the Financial Administration Act. However, the Department is more commonly known by its applied title under the Federal Identity Program (FIP) as Aboriginal Affairs and Northern Development Canada (AANDC).

AANDC is the federal government department primarily responsible for meeting the Government of Canada's obligations and commitments to First Nations, Inuit and Métis, and for fulfilling the federal government's constitutional responsibilities in the North. The mandate of AANDC is derived largely from the Department of Indian Affairs and Northern Development Act, the Indian Act and its amendments, as well as numerous other statutes, negotiated agreements and relevant legal decisions.

To deliver on its mandate, AANDC has structured its operations along six strategic outcomes as follows:

a) People - Activities within this strategic outcome are dedicated to achieving a Canada where there is strengthened individual, family and community well-being for First Nations and Inuit. Program activities are designed to:

  • Provide tools to achieve better educational outcomes for First Nations and Inuit;
  • Support First Nation individuals and families in being self-sufficient, secure and safe within supportive, sustainable communities;
  • Support responsible Federal stewardship of the legislative, administrative and treaty obligations for which AANDC is responsible; and
  • Contribute to a fair resolution of Indian residential schools.

b) Land and Economy – This strategic outcome supports the full participation of First Nations, Inuit and Métis individuals and communities in the economy. These program activities promote:

  • Viable Aboriginal businesses and opportunity-ready communities;
  • Timely administration of reserve lands and prudent management of contaminated sites; and
  • Infrastructure which protects the health and safety of First Nation communities.
c) Government - Under this strategic outcome, activities enable and support good governance and effective institutions for First Nations and Inuit. Program activities are designed to:
  • Support capable and accountable First Nation governments and institutions;
  • Build relationships between parties based on trust, respect, understanding, shared responsibilities, accountability, rights and dialogue; and
  • Create and maintain ongoing partnerships to support historical and modern treaty structures.

d) North - Through this strategic outcome, AANDC promotes self-reliance, prosperity and well-being for the people and communities of the North. Program activities are designed to:

  • Strengthen northern communities and people;
  • Support scientific research and technology in the North; and
  • Support the management, sustainable development and regulatory oversight of the North's natural resources.

e) Internal Services - Under this strategic outcome, activities are designed to support the effective delivery of AANDC's programs and services and other corporate obligations of the organization. These activities include:

  • Governance and management support;
  • Resource management services; and
  • Asset management services.

f) Office of the Federal Interlocutor - Under this strategic outcome, activities focus on improving the socio-economic well-being of Métis, Non-Status Indians and urban Aboriginal people. These program activities support:

  • Capacity development within Métis and Non-Status Indian organizations;
  • Urban Aboriginal people in taking advantage of economic opportunities; and
  • Respect for Aboriginal rights of Métis and developing membership systems.





2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with 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 authoritiesAANDC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to AANDC does not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting.

The planned results amounts in the Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2011–2012 Report on Plans and Priorities. The future-oriented financial statements for 2011–2012 have been restated to reflect the revenue net of non-respendable amounts. This restatement resulted in a $202,077,000 increase in net cost of operations before government funding and transfers. The future oriented financial statements have been reclassified to conform to the current year presentation with the exception of transferred operations. Planned amounts do not include segregation of transferred operations as the transfer was not contemplated at the time of the forecast.

b) Net cash provided by GovernmentAANDC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by AANDC is deposited to the CRF and all cash disbursements made by AANDC 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) Amounts due from/to the CRF – These amounts 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 AANDC is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues – Revenues from regulatory fees are recognized in the accounts based on the services provided in the year. Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues takes place. Revenues that are non-respendable are not available to discharge AANDC's liabilities. While the Deputy Minister 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 therefore presented in reduction of AANDC'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 the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
  • 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, the employer's contribution to the health and dental insurance plans, legal services, and workers' compensation are recorded as operating expenses at their estimated cost.

f) Employee future benefits

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

g) Accounts receivable – Accounts receivable are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

The amount of the allowance is determined based on an assessment of each account. The collectibility of each account is reviewed by regional accounting offices on a semi-annual basis using a standard set of criteria to assess default risk.

h) Loans receivable – Loans receivable are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

The amount of the allowance is determined based on an assessment of each loan. The collectibility of each loan is reviewed by program managers on an annual basis using a standard set of criteria to assess default risk.

Interest on loans receivable is calculated in accordance with the terms and conditions of each individual program. Interest is not accrued on loans approved for write-off or forgiveness.

i) Contingent liabilities – A contingent liability is a potential liability which may become an actual liability 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 an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j) Environmental liabilities –Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when AANDC becomes aware of the contamination and is obligated, or is likely to be obligated, to incur such costs. If the likelihood of AANDC's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.

k) 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. AANDC does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, or assets located on Indian Reserves.

Capital assets which are held for future contribution to First Nations are reported as land held for future claims settlements.

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

Asset Class Amortization period
Buildings
Residential mobile 20 years
Administrative, institutional, recreational and residential 40 years
Works and infrastructure 30 years
Machinery and equipment 
Communication equipment 5 years
Lab, scientific and testing equipment 10 years
Construction, excavating and clearing equipment 15 years
Generating equipment 15 years
Informatics hardware and software 3 years
Ships and boats 10 years
Motor vehicles
Passenger vehicles and light trucks 5 years
Heavy trucks 10 years
Other vehicles 5 years
Leasehold improvements Lesser of the remaining term of lease or useful life of the improvement
Assets under construction Once in service, in accordance with asset type

l) Measurement uncertainty – The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee future benefits, the allowance for doubtful accounts and the useful life of tangible capital assets. Actual results could differ significantly 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

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

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

(in thousands of dollars)

  2012 2011
Restated
(notes 20, 21)
Net cost of operations before government funding
and transfers
7,162,060  7,982,676 
Adjustments for items affecting net cost of operations
but not affecting authorities:   
Amortization of tangible capital assets (6,635) (6,512)
Gain (loss) on disposal of tangible capital assets (1,343) 329
Transfer of land held for future claims settlements (55) (19)
Services provided without charge by other government departments (95,945) (89,341)
Bad debt expense (not incurred on behalf of government) (1,066) (98)
Decrease (increase) in vacation pay and compensatory leave 615 63
Decrease (increase) in liability for settled claims   74,863 (56,078)
Decrease (increase) in provision for claims and litigation 1,024,134 386,812
Decrease (increase) in environmental liabilities (355,496) (113,475)
Decrease (increase) in employee future benefits  36,566 (6,247)
Decrease (increase) in accrued liabilities not charged to authorities (20,971) 0
Refunds/adjustments to prior years' expenditures 58,668 70,967
Other (3,642)  (831)
Total items affecting net cost of operations
but not affecting authorities
709,693 185,570
Adjustments for items not affecting net cost of operations
but affecting authorities:
Acquisition of tangible capital assets 9,343 11,260
Proceeds from disposal of tangible capital assets (371) (374)
Acquisitions of land held for future claims settlements 158 29
Increase (decrease) in prepaid expenses 0 (2,154)
Total items not affecting net cost of operations
but affecting authorities
9,130 8,761
Current year authorities used 7,880,883  8,177,007 

b) Authorities provided and used

(in thousands of dollars)

  2012 2011
Authorities Provided:
Vote 1 - Operating Expenditures 1,387,289 1,403,926
Vote 5 - Capital Expenditures 5,102 10,666
Vote 10 - Grants and Contributions 6,371,858 6,600,251
Vote 15 - Payment to Canada Post Corporation 0 59,000
Vote 20 - Office of the Federal Interlocutor - Operating 0 9,861
Vote 25 - Office of the Federal Interlocutor - Contributions 0 29,939
Statutory Amounts 230,380 205,622
Sub-Total 7,994,629  8,319,265 
Less:
Authorities available for future years (32,862) (32,110)
Authorities lapsed:
Vote 1 – Operating expenditures (43,976) (52,898)
Vote 5 – Capital expenditures (3,048) (10,643)
Vote 10 – Grants and Contributions (33,839) (45,276)
Vote 15 – Payment to Canada Post Corporation 0 0
Vote 20 – Office of the Federal Interlocutor- Operating  0 (647)
Vote 25 – Office of the Federal Interlocutor- Contributions 0 (680)
Statutory amounts (21) (4)
Sub-Total (113,746) (142,258) 
Current year authorities used 7,880,883 8,177,007

In addition to the amount for authorities available for future years presented above, some of the other lapsed amounts may become available to AANDC in the 2013 fiscal year, but due to the timing of parliamentary approvals, these amounts had not been approved at March 31, 2012. Additional information on the use of authorities, including explanation of variances and lapsed amounts, can be found in AANDC's Departmental Performance Report.






4. Accounts Payable and Accrued Liabilities

The following table presents details of AANDC's accounts payable and accrued liabilities:

(in thousands of dollars)

  2012 2011
Restated
(note 21)
Accounts payable – Other government departments and agencies 21,486 28,024
Accounts payable – External parties 283,702 406,276
Total accounts payable 305,188 434,300
Accrued liabilities 422,501 441,394
Total accounts payable and accrued liabilities 727,689 875,694 

In Canada's Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012–2013. As a result, AANDC has recorded at March 31, 2012 an obligation for termination benefits in the amount of $20,971,000 as part of accrued liabilities to reflect the estimated workforce adjustment costs.






5. Other Liabilities

The following table presents details of other liabilities:

(in thousands of dollars)

  2012 2011
Opening Balance Receipts Interest Disburse-
ments
Closing Balance Closing Balance
Guarantee deposits 875,290 375,662 0 (76,233) 1,174,719 875,290
Securities held in trust (857,016) (369,372) 0 68,712 (1,157,676) (857,016)
Net cash 18,274 6,290 0 (7,521) 17,043 18,274
Other specified purpose accounts 50,675 79,805 1,293 (72,758) 59,015 50,675
Total other liabilities 68,949 86,095 1,293 (80,279) 76,058 68,949

Guarantee deposits and securities held in trust

In fulfilling its duties under various acts that govern the use of federal Crown land, including land use activities, water resources, and water rights, AANDC may issue licences, permits, and other instruments to individuals and organizations that propose to undertake resource exploration and other types of development projects.

In accordance with the terms and conditions of the instrument, AANDC may require security deposits to ensure the lands and waters are returned in a condition acceptable to AANDC. These security or guarantee deposits can be in the form of cash or paper securities (usually letters of credit).

Cash amounts received are transferred to and held in the CRF, whereas paper securities are held by AANDC.

Other specified purpose accounts

These accounts are established to receive, hold and disburse monies in accordance with relevant statues, departmental policies and agreements. The most significant of these accounts is the Indian Moneys Suspense Account. This statutory account was established to hold moneys received for individual Indians and bands pending execution of the related lease, permit or licence, settlement of litigation, registration of the Indian or identification of the recipient, and for Indian locatees pursuant to land tenure instruments issued by AANDC. These moneys are eventually disbursed to individual Indians, credited to Band Fund or Individual Trust Fund accounts, or returned to payers, as appropriate.






6. Trust Accounts

The following table shows AANDC's financial obligations in its role as administrator of trust accounts:

(in thousands of dollars)

  2012 2011
Opening Balance Receipts Interest Disburse-
ments
Closing Balance Closing Balance
Indian band funds 1,091,928 244,694 27,939 (482,458) 882,103 1,091,928
Indian savings accounts 37,893 1,476 1,039 (3,658) 36,750 37,893
Indian estate accounts 18,227 7,488 378 (6,965) 19,128 18,227
Total Indian moneys 1,148,048 253,658 29,356 (493,081) 937,981 1,148,048
Other trust accounts 0 1,099 0 0 1,099 0
Total trust accounts 1,148,048 254,757 29,356 (493,081) 939,080 1,148,048

Indian moneys

In accordance with the Indian Act, AANDC has responsibility to administer Indian moneys of bands and certain individual Indians, including minors, mentally incompetent individuals and deceased Indians.

Moneys collected or received for the use and benefit of these groups are deposited to the CRF. Pursuant to Section 61(2) of the Indian Act, interest on Indian moneys held in the CRF is allowed at a rate fixed from time to time by the Governor-in-Council. Interest accumulated in the accounts is compounded semi-annually.

There are three categories of Indian moneys administered by AANDC: Indian band funds, Indian savings accounts, and Indian estate accounts.

Indian band funds

These accounts were established to record moneys belonging to Indian bands throughout Canada pursuant to sections 61 to 69 of the Indian Act.

Moneys are classified as either capital moneys or revenue moneys. Capital moneys of the band include all moneys derived from the sale of surrendered lands or the sale of band capital assets. Moneys from the sale of surrendered lands can include land sales, timber sales, oil and gas royalties, and sale of gravel. Revenue moneys are all moneys not classified as capital moneys.

Moneys are generally disbursed from these accounts pursuant to an authorized request from a band.

Indian savings accounts

These accounts were established to record moneys belonging to certain individual Indians pursuant to sections 52 and 52.1 to 52.5 of the Indian Act.

Sources of moneys include inheritances and per capita distribution of band funds. Moneys are generally disbursed from these accounts pursuant to an authorized request from an individual.

Indian estate accounts

These accounts were established to record moneys belonging to mentally incompetent individuals and deceased Indians pursuant to sections 42 to 51 of the Indian Act.

Sources of moneys belonging to mentally incompetent individuals include inheritances, per capita distribution of band funds, and provincial assistance payments. Payments are made from these accounts for the maintenance and care of the individuals.

Estate accounts for deceased Indians include the proceeds of their liquidated assets that are held pending the settlement of the estate. The closing of the account usually corresponds with the final distribution to their heirs.

Other trust accounts

Relative to AANDC's legislative mandate, trust accounts may also be established in accordance with settlement agreements, legislative authorities other than the Indian Act, or court decisions.





7. Settled Claims

The liability for settled claims represents AANDC's financial obligation pursuant to agreements related to comprehensive land claims and specific claims.

Comprehensive land claims are negotiated in areas where Aboriginal title has not been dealt with by treaty or by other legal methods. In such cases, the claim is based on an Aboriginal group's traditional use and occupancy of that land. Comprehensive land claim settlements result in agreement on special rights Aboriginal peoples will have in the future with respect to lands and resources.

Specific claims address past grievances arising out of non-fulfilment of Indian treaties and other lawful obligations, the improper administration of lands and other assets under the Indian Act, or formal agreements that are being pursued through negotiations.

An act of Parliament, based on a negotiated agreement, establishes the authority for AANDC to make claim payments. The interest rate attached to these claim payments is set out in the act, along with a claim payment schedule. Claim payments are generally made over a number of years.

At March 31, 2012, AANDC had 12 outstanding settled claims (12 in 2011). Payments totalled $158,000,000 in 2012 ($99,000,000 in 2011).

The present value of the liability for outstanding settled claims, calculated using the appropriate Consolidated Revenue Fund Monthly Lending Rate as published by the Department of Finance, at March 31, 2012 is $519,626,000 ($594,489,000 in 2011)

Future scheduled claim payments are as follows:

(in thousands of dollars)

  2013 2014 2015 2016 2017 and
thereafter
Total
Scheduled payments 96,000 86,000 87,000 57,000 236,000 562,000






8. Contingent Liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are classified into three categories: claims and litigation, environmental liabilities (contaminated sites) and loan guarantees.

Claims and litigation

Claims and pending and threatened litigation cases outstanding against AANDC 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, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

There are four significant types of claims faced by AANDC: comprehensive land claims, specific claims, general litigation claims, and claims arising from the legacy of Indian residential schools [Note 1].

Comprehensive land claims arise in areas of the country where Aboriginal rights and title have not been resolved by treaty or by other legal means. There are currently 81 (80 in 2011) comprehensive land claims under negotiation, accepted for negotiation or under review.

Specific claims deal with the past grievances of First Nations related to Canada's obligations under historic treaties or the way it managed First Nations' funds or other assets. The Government of Canada will pursue a settlement agreement with the First Nation when a claim demonstrates an outstanding lawful obligation. There are currently 439 (487 in 2011) specific claims under negotiation, accepted for negotiation or under review.

There are legal proceedings for 531 (514 in 2011) general litigation claims being pursued through the courts still pending at March 31, 2012. There are also thousands of claims being managed by AANDC with respect to the legacy of Indian residential schools, including class action claims, as well as claims submitted under its Alternative Dispute Resolution process and its Independent Assessment Process.

AANDC has recorded a provision of $10,964,626,000 ($11,988,760,000 in 2011) as an estimate of the likely liability that will result from the above claims. This estimate includes projections based on historical rates and costs of settlement for similar claims. Exposure to liability in excess of the amount accrued is $151,460,000 ($157,505,000 in 2011) and an additional amount of $4,068,722,000 ($3,836,000,000 in 2011) is considered uncertain as the probability of the occurrence or non-occurrence of the future event confirming that a liability existed at the financial statements date cannot be determined.

Environmental liabilities (Contaminated Sites)

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where AANDC is obligated or likely to be obligated to incur such costs [Note 2].

AANDC has identified 823 sites (665 sites in 2011) where such action is possible and for which a liability of $2,370,969,000 ($2,015,473,000 in 2011) has been recorded. AANDC has estimated additional clean-up costs of $21,838,000 ($61,673,000 in 2011) that have not been accrued, as these are not considered likely to be incurred at this time.

AANDC's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by AANDC in the year in which they become likely and are reasonably estimable.

Loan guarantees

As at March 31, 2012, AANDC has issued loan guarantees under its On-Reserve Housing Guarantee program of $1,820,611,000 ($1,897,592,000 in 2011) and under its Indian Economic Development Guarantee program of $648,000 ($569,000 in 2011). AANDC's authority limit for issuing loan guarantees under these programs is $2.2 billion ($2.2 billion in 2011) and $60 million ($60 million in 2011) respectively.

A provision for losses on loan guarantees is recorded when it is likely that a payment will be made in the future to honour a guarantee and when the amount of the loss can be reasonably estimated. The provision is determined by applying the weighted average historical percentage of default to total outstanding loan guarantees. The provision is reviewed at least annually, with any changes being charged or credited to current year expenses.

The provision for losses for each loan guarantee program is as follows:

(in thousands of dollars)

  2012 2011
On-Reserve Housing Guarantee Program 1,400 1,600
Indian Economic Development Guarantee Program 65 55
Total provision for losses 1,465 1,655





9. Employee Future Benefits

a) Pension benefits

AANDC'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 are indexed to inflation.

Both the employees and AANDC contribute to the cost of the Plan. For the year ended March 31, 2012, the expense amounts to $51,786,000 ($49,260,000 in 2011), which represents approximately 1.8 times (1.9 in 2011) the contributions by employees.

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

b) Severance benefits

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

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

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

(in thousands of dollars)

  2012 2011
Accrued benefit obligation- Beginning of year 80,567 74,320
Transferred to other government departments, effective November 15, 2011 (note 18) (1,063) 0
Sub-Total 79,504 74,320
Expense for the year 12,323 13,264
Benefits paid during the year (47,826) (7,017)
Accrued benefit obligation- End of year 44,001 80,567





10. Accounts Receivable and Advances

The following table presents details of AANDC's accounts receivables and advances:

(in thousands of dollars)

  2012 2011
Receivables – Other government departments and agencies 15,366 49,886
Receivables – External Parties 59,260 57,110
Employee advances 278 236
Sub-Total 74,904 107,232
Allowance for doubtful accounts on receivables from external parties (15,401) (14,343)
Total accounts receivable and advances 59,503 92,889






11. Interest Receivable

The following table presents details of accrued interest receivable on loans:

(in thousands of dollars)

  2012 2011
Direct loans 2,035 1,443
Defaulted guaranteed loans 514 525
Sub-Total 2,549 1,968
Less:
Allowance for doubtful accounts (541) (510)
Total interest receivable (held on behalf of Government) 2,008 1,458






12. Loans Receivable

The following table presents details of loans receivable:

(in thousands of dollars)

  2012 2011
Direct loans portfolio:
Native claimants 459,029 453,030
First Nations in British Columbia 443,052 420,800
Other direct loans 504 509
Sub-Total 902,585 874,339
Add: Capitalized interest 4,681 7,052
Less: Allowance for doubtful loans (126,621) (117,431)
Net recoverable value 780,645 763,960
Defaulted guaranteed loans portfolio:
On-reserve housing guarantees 11,315 11,826
Indian economic development guarantees 3,219 3,137
Other defaulted guaranteed loans 104 104
Sub-Total 14,638 15,067
Add: Capitalized interest 16,971 14,656
Less: Allowance for doubtful loans (22,210) (20,097)
Net recoverable value 9,399 9,626
Loans receivable, net recoverable value
(held on behalf of Government)
790,044 773,586

Direct loans portfolio

The objective of direct loans is to support active participation by First Nations and First Nations organizations and to promote a balanced exchange of ideas in negotiating the settlement of comprehensive land claims, specific claims, and treaties.

AANDC's direct loans portfolio has two active programs in support of this objective.

Native claimants

These are loans made to Native claimants to defray the costs related to the research, development and negotiation of comprehensive land claims and specific claims.

The significant terms and conditions of loans to Native claimants are as follows:

  1. before an agreement-in-principle for the settlement of a claim is reached, all loans issued are non-interest bearing;
  2. once an agreement-in-principle for the settlement of a claim is reached, all loans that remain outstanding and all loans subsequently issued are interest bearing at a rate equal to the rate established by the Minister of Finance in respect of borrowings with equivalent terms by Crown corporations;
  3. loans are due and payable, as to principal and interest, on the date on which the claim is settled, or on a date fixed in the loan agreement;
  4. loans may be restructured, including forgiveness of a portion of the principal or interest in arrears, when the borrower cannot meet the term of the original loan agreement; and
  5. AANDC may seek security for loans when deemed appropriate.

When an agreement-in-principle is reached for the settlement of a claim, any accrued interest receivable is capitalized semi-annually as part of the principal amount owing on the loan. After a final agreement is reached, any accrued interest receivable outstanding is capitalized annually as part of the principal amount owing on the loan.

The interest bearing and non-interest bearing portions of direct loans for Native claimants outstanding at March 31 are as follows:

(in thousands of dollars)

  2012 2011
Interest bearing 87,336 97,553
Non-interest bearing 371,693 355,477
Total 459,029 453,030

First Nations in British Columbia

These are loans made to First Nations in British Columbia to support their participation in the British Columbia Treaty Commission and to defray the costs related to the research, development and negotiation of treaties.

The significant terms and conditions of direct loans to First Nations in British Columbia are the same as those for loans to Native claimants, except as follows:

  1. loans issued after April 1, 2004 and after the date on which an agreement-in-principle for the settlement of a treaty is reached shall be non-interest bearing unless the loans become due and payable during this period.

The interest bearing and non-interest bearing portions of direct loans for First Nations in British Columbia outstanding at March 31 are as follows:

(in thousands of dollars)

  2012 2011
Interest bearing 21,337 23,860
Non-interest bearing 421,715 396,940
Total 443,052 420,800

Other direct loans

AANDC also has various legacy programs that are no longer active. These legacy programs will continue to operate under their existing arrangements until the land claims are settled, at which point the loans will become repayable and the respective programs closed.

All loans outstanding at year-end under the various legacy programs both for the current and prior year are interest bearing.

Defaulted guaranteed loans portfolio

The objective of loan guarantees is to encourage lending institutions to make loans for properties located on First Nations lands and to support access to credit markets for First Nations and First Nations organizations. Since properties located on First Nations lands cannot be used as collateral to secure the loans and lending institutions are prevented from foreclosing on these properties in the event of borrower default as prescribed by the Indian Act, lending institutions can be exposed to greater business risk in issuing loans for properties located on First Nations lands.

As guarantor, loan guarantees issued under the various programs may become receivables of AANDC when, at the request of a lending institution, AANDC is required to honour these loan guarantees. As a result, AANDC makes payment to the lending institution and establishes a receivable from the First Nation or First Nation organization.

AANDC has access to an annual $2 million statutory authority for funding payments to lending institutions to honour loan guarantees. Payments made in excess of the $2 million authority limit are charged to program expenses and funded by budgetary authorities.

AANDC charged $89,000 to its reserve in 2012 ($1,354,000 in 2011) for payments covering the default of 1 loan (3 in 2011).

The various loan guarantee programs are described below.

On-reserve housing guarantee program

This program authorizes AANDC to guarantee loans to individuals and Indian bands to assist in the purchase of housing on reserves because security restrictions in the Indian Act prevent the mortgage and seizure of property located on reserves. These loan guarantees enable status Indians residing on reserves, Band councils, or their delegated authorities, to secure housing loans without giving the lending institution rights to the property.

The significant terms and conditions of the On-reserve housing guarantee program are as follows:

Payments of principal and interest for loans issued under this program are amortized over a period of 25 years. The interest rates on the guaranteed loans are consistent with conventional mortgage interest rates offered by the major banks. On a semi-annual basis, any accrued interest receivable outstanding is capitalized as part of the principal amount owing on the loan.

To control the occurrence of defaulted loans in this program, AANDC restricts the eligibility of recipients for further loans until such time as a recovery plan has been approved and has been in operation in accordance with its terms and conditions for a period of six months.

Indian economic development guarantee program

This program authorizes AANDC to guarantee loans for non-incorporated Indian businesses on a risk-sharing basis with commercial lenders because security restrictions in the Indian Act prevent the mortgage and seizure of property located on reserves. Guarantees are provided for various types of borrowers whose activities contribute to the economic development of Indians and enable them to develop long-term credit relationships with mainstream financial institutions.

The significant terms and conditions of the Indian economic development guarantee program are as follows:

Loans issued under this program cannot exceed a term of 15 years and the line of credit must be renewed every year. Interest rates on guaranteed loans are consistent with rates provided by lending institutions to commercial businesses, which are usually based on a spread from the prime lending rate. Accrued interest on loans issued under this program is not capitalized. Any security pledged for a guaranteed loan may not be released by the lending institution without the prior approval of the Minister of AANDC.

Other defaulted guaranteed loans

AANDC also has a legacy program that is no longer active. This legacy program will continue to operate under its existing arrangements until the defaulted guaranteed loans are paid and the program closed.





13. Land Held for Future Claims Settlements

Land held for future claims settlements is segregated from other tangible capital assets as these assets are not acquired with the intention of being used on a continuous basis in government operations. Rather, these assets are properties acquired and held by AANDC for the purpose of future settlements of Aboriginal land claims. Following the ratification of a negotiated agreement, these assets are transferred to the Aboriginal group.

Changes in this account are summarized in the following table:

(in thousands of dollars)

  2012 2011
Opening
Balance
Acquisitions Transfers Closing Balance Closing Balance
Land held for future claims settlements 26,167 158 (55) 26,270  26,167 






14. Tangible Capital Assets

Table - Tangible Capital Assets






15. Departmental Net Financial Position

A portion of AANDC's net financial position is restricted to be used for a specific purpose. Related revenues and expenses are included in the Statement of Operations and Departmental Net Financial Position.

The Environmental Studies Research Fund account was established pursuant to the Canada Petroleum Resources Act and related regulations to record levies stipulated under the Act. The balance of the account is to be used to finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration, development and production activities on frontier lands authorized under this Act or any other Act of Parliament should be conducted.

The Bowater Environmental Remediation Fund was established pursuant to a decision of the Commercial Division of the Superior Court in the Province of Quebec. The balance in the account is to be used to finance the remediation of environmental damage caused by Bowater Canadian Forest Products Inc. relative to a land lease issued by AANDC.

The balance of the funds at the end of the year is included in Departmental Net Financial Position. Activity in the funds is as follows:

(in thousands of dollars)

  2012 2011
Environmental Studies Research Fund – Restricted
Balance – Beginning of year – Restricted 2,172 2,536
Revenues 2,026 1,736
Expenses (2,172) (2,100)
Balance – End of year – Restricted 2,026 2,172
Bowater Environmental Remediation Fund – Restricted  
Balance – Beginning of year – Restricted 0 0
Revenues 2,597 0
Expenses 0 0
Balance – End of year – Restricted 2,597 0
Total restricted 4,623 2,172
Unrestricted (13,820,991) (14,566,603)
Departmental net financial position – End of year (13,816,368) (14,564,431)





16. Contractual Obligations

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

(in thousands of dollars)

  2013 2014 2015 2016 2017 and
thereafter
Total
Transfer payments 2,226,800 1,240,614 950,166 739,500 315,117 5,472,197
Total 2,226,800  1,240,614  950,166 739,500 315,117 5,472,197





17. Related Party Transactions

AANDC is related as a result of common ownership to all Government departments, agencies, and Crown corporations. AANDC enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, AANDC has an agreement for the provision of finance and administrative services to the Canadian Northern Economic Development Agency. During the year, AANDC received common services which were obtained without charge from other Government departments as disclosed below.

a) Common services provided without charge by other government departments

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

(in thousands of dollars)

  2012 2011
Employer's contribution to the health and dental insurance plans 41,450 34,770
Accommodation 40,752 37,004
Legal services 13,269 17,084
Worker's compensation 474 483
Total 95,945 89,341

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

b) Other transactions with related parties

(in thousands of dollars)

  2012 2011
Expenses – Other Government departments and agencies 272,375 300,571
Revenues – Other Government departments and agencies 2,852 1,776

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






18. Transfers to Other Government Departments

Effective November 15, 2011, AANDC transferred responsibility for the provision of e-mail, data centre and network support services, including stewardship responsibility for the assets and liabilities related to the program, to Shared Services Canada. This transfer was performed pursuant to paragraph 2(a) of the Public Service Rearrangement and Transfer of Duties Act and Order-in-Council P.C. 2011–1297.

Accordingly, AANDC transferred the following assets and liabilities to Shared Services Canada on November 15, 2011:

(in thousands of dollars)

Assets:
Tangible capital assets (note 14) 2,734
Total assets transferred 2,734
Liabilities:
Employee future benefits (note 9) 1,063
Total liabilities transferred 1,063
Adjustment to the departmental net financial position 1,671

In addition, the 2011 comparative figures have been reclassified on the Statement of Operations and Departmental Net Financial Position to present the revenues and expenses of the transferred operations. Total expenses related to transferred operations were $16,049,000 for 2012 ($30,087,000 for 2011).

During the transition period, AANDC continued to administer the transferred activities on behalf of Shared Services Canada. The administered expenses amounted to $9,765,000 for the year. These expenses are not recorded in these financial statements and are recorded in the financial statements of Shared Services Canada.






19. Segmented Information

Table - Segmented Information 





20. Accounting Changes

This note should be read in conjunction with note 21 - prior year corrections. Some of the 2011 restated amounts presented hereunder are the final restated amounts and are reported on the financial statements, while other amounts are also affected by prior year corrections and have been carried forward to note 21 for further restatement.

During 2011, amendments were made to Treasury Board Accounting Standards 1.2 - Departmental and Agency Financial Statements to improve financial reporting by government departments and agencies. The amendments are effective for financial reporting of fiscal years ending March 31, 2012, and later. The significant changes to the AANDC's financial statements are described below. These changes have been applied retroactively and comparative information for 2011 has been restated.

Net debt (calculated as liabilities less financial assets) is now presented in the Statement of Financial Position. Accompanying this change, AANDC now presents a Statement of Change in Departmental Net Debt and no longer presents a Statement of Equity.

Revenue and related accounts receivable are now presented net of non-respendable amounts in the Statement of Operations and Departmental Net Financial Position and Statement of Financial Position. The effect of this change was to increase the net of cost of operations before government funding and transfers by $281,086,000 for 2012 ($247,455,000 for 2011) and decrease total financial assets by $792,052,000 for 2012 ($775,044,000 for 2011).

Government funding and transfers, including the credit related to services provided without charge by other government departments, are now recognized in the Statement of Operations and Departmental Net Financial Position below "Net cost of operations before government funding and transfers". In previous years, AANDC recognized these transactions directly in the Statement of Equity of Canada. The effect of this change was to decrease the net cost of operations after government funding and transfers by $7,910,123,000 for 2012 ($8,210,088,000 for 2011).

The net effect of these changes on the 2011 comparative figures included in these financial statements is summarized below:

(in thousands of dollars)

  2011
As previously stated
Effect of policy change   2011
Restated
Statement of Financial Position:
Financial assets held on behalf of Government (775,044)  (775,044)
Departmental net financial position
(reported as Equity of Canada in 2011)
(13,493,582) (775,044) (14,268,626)
Statement of Operations and
Departmental Net Financial Position:
Revenues 247,455 (247,455)
Expenses (net of transferred operations) 7,979,478  2,306 7,981,784
Government funding and transfers
Net cash provided by Government 8,229,101 8,229,101
Change in due from Consolidated Revenue Fund (108,354)  (108,354)
Services provided without charge by other government departments 0 89,341 89,341
Net cost of operations after government funding and transfers 0 (198,217) (198,217)





21. Prior Year Corrections

This note should be read in conjunction with note 20 - accounting changes. All 2011 restated amounts presented hereunder are the final restated amounts and are reported on the financial statements.

During the current year, it was discovered that some transactions had been improperly reported as accrued liabilities for the 2011 fiscal year. This led to a corresponding overstatement of the asset ‘Due from Consolidated Revenue Fund'. Neither Parliamentary authorities nor departmental expenses for the 2011 fiscal year were affected by this misstatement.

It was also discovered that the liability for settled claims was overstated for the 2011 fiscal year, due to the recognition of an amount that had already been recognized as an accrued liability. The misstatement of the liability for settled claims was corrected during the 2012 fiscal year, while the accrued liability was extinguished by a cash payment.

During the 2012 third quarter contingent liability reporting exercise, a claim was reported for the first time. Upon further review, it was determined that this claim should have been reported in a prior year. This claim remains unresolved at March 31, 2012.

The net effect of these corrections on the 2011 comparative figures included in these financial statements is summarized below:

(in thousands of dollars)

  2011
As previously stated
Effect of
prior year correction
2011
Restated
Statement of Financial Position:
Accounts payable and accrued liabilities 897,971 (22,277) 875,694
Settled claims 623,684 (29,195) 594,489
Provision for claims and litigation 11,663,760 325,000 11,988,760
Due from Consolidated Revenue Fund 2,076,208 (22,277) 2,053,931
Departmental net financial position (14,268,626) (295,805) (14,564,431)
Statement of Operations and
Departmental Net Financial Position:
Expenses 7,981,784 (29,195) 7,952,589
Government funding and transfers
Net cash provided by Government 8,229,101 22,277 8,251,378
Change in due from Consolidated Revenue Fund  (108,354) (22,277) (130,631)
Net cost of operations after government funding and transfers (198,217) (29,195) (227,412)
Departmental net financial position- Beginning of year (14,466,843) (325,000) (14,791,843)
Departmental net financial position- End of year (14,268,626) (295,805) (14,564,431)





22. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.






Additional Information:






Footnotes:

  1. Depending on its type, a claim may be resolved with a transfer payment or an operating expenditure. As a result, the year-over-year change in the provision is allocated between transfer payment expenses and operating expenses, as shown in note 19 – Segmented information. (return to source paragraph)
  2. Contaminated sites may be remediated with a transfer payment or an operating expenditure. As a result, the year-over-year change in environmental liabilities is allocated between transfer payment expenses and operating expenses, as shown in note 19 – Segmented information. (return to source paragraph)