ARCHIVED - Financial Statements 2008-2009

ISSN: 2818-0151

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

unaudited

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the period ended March 31, 2009 and all information contained in these statements rests with Commission's management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

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

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Commission.

The financial statements of the Commission have not been audited.

Originally signed by:

_____________________
Paul E. Kennedy
Chair

_____________________
Helen Banulescu
Chief Financial Officer


Statement of Financial Position

Assets as at March 31 (in dollars)
Financial Assets 2009 2008
Accounts receivable and advances (Note 5) 51,155 88,426
Assets as at March 31 (in dollars)
Non-financial assets 2009 2008
Tangible capital assets (Note 7) 81,711 53,001
Total Asset 132,866 141,427
Liabilities and Equity of Canada as at March 31 (in dollars)
Liabilities 2009 2008
Accounts payable and accrued liabilities 654,072 326,145
Vacation pay and compensatory leave 213,336 213,336
Employee severance benefits (Note 4) 707,296 587,835
Total Liabilities 1,574,704 1,127,316
Liabilities and Equity of Canada as at March 31 (in dollars)
  2009 2008
Equity of Canada (1,441,838) (985,889)
Total Liabilities and Equity of Canada 132,866 141,427
Variance -0.24 0.00

The accompanying notes form an integral part of these financial statements

Statement of Equity of Canada

Statement of Equity of Canada as at March 31 (in dollars)
  2009 2008
Equity of Canada, beginning of year (985,889) (848,174)
Net cost of operations (9,208,800) (7,639,567)
Current year appropriations used (Note 3) 8,341,745 6,815,729
Revenue not available for spending (Note 3) (4,012) (946)
Refunds of prior year expenditures (Note 3) (1,300) (2,222)
Change in net position in the Consolidated Revenue Fund (Note 3) (385,081) (191,751)
Services received without charge from other government departments (Note 6) 801,499 881,042
Equity of Canada, end of year (1,441,838) (985,889)

The accompanying notes form an integral part of these financial statements

Statement of Operations

Statement of Operations as at March 31 (in dollars)
Expenses 2009 2008
Salaries and employee benefits 5,594,073 4,565,728
Professional and special services 1,939,541 1,347,479
Accommodation 616,818 620,615
Equipment 252,847 310,049
Travel and relocation (385,081) (191,751)
Information 165,520 197,106
Communication 147,445 107,784
Utilities, material and supplies 133,840 114,289
Repairs 101,704 37,094
Equipment rentals 64,204 79,649
Amortization 26,500 26,500
Total Expenses 9,212,812 7,640,513
Statement of Operations as at March 31 (in dollars)
Revenues 2009 2008
Other revenues 4,012 946
Net Cost of Operations 9,208,800 7,639,567

The accompanying notes form an integral part of these financial statements

Statement of Cash Flow

Statement of Cash Flow as at March 31 (in dollars)
Operating activities 2009 2008
Net Cost of Operations 9,208,800 7,639,567
Statement of Cash Flow as at March 31 (in dollars)
Non-cash items: 2009 2008
Services received without charge from other government departments (Note 6) (801,499) (881,042)
Amortization of tangible capitale assets (Note 7) (26,500) (26,500)
Statement of Cash Flow as at March 31 (in dollars)
Variations in Statement of Financial Position: 2009 2008
Increase (decrease) in accounts receivable and advances (37,271) (41,687)
(Increase) decrease in accounts payables and accrued liabilities (447,388) (69,528)
Cash used by operating activities 7,896,142 6,620,810
Statement of Cash Flow as at March 31 (in dollars)
Capital investment activities 2009 2008
Acquisitions of tangible capital assets (Note 7) 55,210 0
Statement of Cash Flow as at March 31 (in dollars)
Financing activities 2009 2008
Net cash provided by Government of Canada (Note 3(c)) (7,951,351) (6,620,810)

The accompanying notes form an integral part of these financial statements


Notes to the Financial Statements

1. Authority and purpose

The Commission for Public Complaints Against the RCMP is a federal agency reporting to Parliament that receives and reviews public complaints about the conduct of members of the RCMP in the performance of any duty or function under the Royal Canadian Mounted Police Act. The Commission is entirely separate from and independent of the RCMP. The mandate of the Commission is set out in Part VII of the Royal Canadian Mounted Police Act and can be summarized as follows:

  • To receive complaints from the public about the conduct of RCMP members;
  • To conduct reviews when complainants are not satisfied with the RCMP's disposition of their complaints;
  • To hold hearings and investigations; and
  • To report findings and recommendations.

2. Significant accounting policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

  • (a) Parliamentary appropriations
    The Commission is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Commission do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
  • (b) Net Cash Provided by Government
    The Commission operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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 federal government.
  • (c) Change in net position in the Consolidated Revenue Fund
    Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the Commission. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
  • (d) Expenses
    Expenses are recorded on the accrual basis:
    • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
    • Services provided without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
  • (e) Employee future benefits
    1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer administered by the Government of Canada. The Commission's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
    2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. 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.
  • (f) Receivables
    Accounts receivables are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is made for receivables where recovery is considered uncertain.
  • (g) Tangible capital assets
    All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

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

    Asset Class
    Other equipment including Furniture
    Informatics Hardware
    Informatics Software
    Motors Vehicule
    Leaseholder improvements
    Amortization period
    5 years
    4 years
    3-5 years
    3 years
    Remaining term of the lease or useful life of the improvement
  • (h) Measurement uncertainty
    The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, 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 an estimate is used are the liability for employee severance benefits and the estimated life of tangible capitle assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary appropriations

The Commission receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Commission 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 appropriations used:

Reconciliation of net cost of operations to current year appropriations used (in dollars)
  2009 2008
Net cost of operations 9,208,800 7,639,567
Reconciliation of net cost of operations to current year appropriations used (in dollars)
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less): 2009 2008
Services received without charge from other government departments (Note 6) (801,499) (881,042)
Refund of prior year expenditures 1,300 2,222
Adjustments of accounts payable at year end 19,883 65,106
Employee severance benefits (119,461) 71,714
Vacation pay and compensatory leave 0 (42,155)
Revenue not available for spending 4,012 946
Amortization of tangible capital assets (26,500) (26,500)
Adjustment of accounts receivable at year end 0 (14,129)
Reconciliation of net cost of operations to current year appropriations used (in dollars)
Adjustments for items not affecting net cost of operations but affecting appropriation:
Add (Less):
2009 2008
Acquisition of tangible capital assets :    
Other equipment including furnitures 23,036 0
Informatics hardware 32,174 0
Current year appropriations used 8,341,745 6,815,729

(b) Appropriations provided and used:

Appropriations provided and used (in dollars)
  2009 2008
Program expenditures – Vote 70 8,481,026 6,936,422
Appropriations provided and used (in dollars)
Less: 2009 2008
Lapsed appropriations (916,442) (706,587)
  7,564,584 6,229,835
Contributions to employee benefits plan 777,161 585,894
Current year appropriations used 8,341,745 6,815,729

(c) Reconciliation of net cash provided by Government to current year appropriations used:

Reconciliation of net cash provided by Government to current year appropriations used (in dollars)
  2009 2008
Net cash provided by Government 7,951,351 6,620,810
Revenue not available for spending 4,012 946
Refunds of prior year expenditures 1,300 2,222
  7,956,664 6,623,978
Reconciliation of net cash provided by Government to current year appropriations used (in dollars)
Change in net position in the Consolidated Revenue Fund 2009 2008
Adjustment of accounts payable at year end 19,883 65,105
(Increase) decrease in accounts receivables and advances 37,271 41,687
Increase (decrease) in accounts payable and accrued liabilities 327,927 99,088
Adjustment of acounts receivable at year end 0 (14,129)
  385,081 191,751
Current year appropriations used 8,341,745 6,815,729

4. Employee Benefits

  • (a) Pension benefits
    The Commission's employees participate in the Public Service Pension 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 Plans benefits and they are indexed to inflation.

    Both the employees and the Commission contribute to the cost of the Plan. The 2008-09 expense amounts to $561,110 ($427,116 in 2007-08), which represents approximately 2.0 times (2.1 in 2007-08) the contributions by employees.

    The Commission'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
    The Commission provides severance benefits to its employees based on eligibility, years of service and final salary. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
    Information about the severance benefits, measured as at March 31 (in dollars)
      2009 2008
    Accrued benefit obligation, beginning of year 587,835 659,549
    Expense for the year 154,131 100,589
    Benefits paid during the year (34,670) (172,303)
    Accrued benefit obligation, end of year 707,296 587,835

5. Accounts receivable and advances

The following table presents details of accounts receivable and advances:

Dtails of accounts receivable and advances (in dollars)
  2009 2008
Receivables from other Federal Government departments and agencies 50,355 86,624
Employee advances 800 1,802
Total 51,155 88,426

6. Related party transactions

The Commission is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Commission enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Commission received services which were obtained without charge from other Government departments as presented in part (a).

  • (a) Services received without charge from other government departments
    During the year the Commission received service without charge from other departments. These services have been recognized in the Commission's Statement of Operations as follows:
    Commission's Statement of Operations (in dollars)
      2009 2008
    Accommodation 591,307 615,432
    Employer's contribution to the health and dental insurance plans 210,192 265,610
      801,499 881,042

    The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada are not included as an expense in the Commission's Statement of Operations.

  • b) Payables outstanding at year-end with related parties:
    Payables outstanding at year-end with related parties (in dollars)
      2009 2008
    Accounts payable to other government departments and agencies 174,927 53,552

7. Tangible capital assets

Tangible capital assets (in dollars)
Cost Opening balance Acquisitions Disposals and write off Closing balance
Informatics hardware 0 32,174 0 32,174
Other equipment including furnitures 0 23,036 0 23,036
Leasehold improvements 79,501 0 0 79,501
Total cost 79,501 55,210 0 134,711
Tangible capital assets (in dollars)
Accumulated amortization Opening balance Amortization Disposals and write off Closing balance
Informatic hardware 0 0 0 0
Other equipment including furnitures 0 0 0 0
Leasehold improvements 26,500 26,500 0 53,000
Total cost 26,500 26,500 0 53,000
Date modified: