Planning and Reporting

Financial Statements

2012-2013
Status of Women Canada

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, 2013, and all information contained in these statements rests with the management of Status of Women Canada. 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 the Status of Women Canada's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in Status of Women Canada'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 Status of Women Canadaand 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.

Status of Women Canadais subject to periodic Core Control Audits performed by the Office of the Comptroller General and uses the results of such audits to comply with the Treasury Board Policy on Internal Control.

A Core Control Audit was performed in 2011-2012by the Office of the Comptroller General of Canada (OCG). The Audit Report and related Management Action Plan are posted on the departmental web site at http://www.swc-cfc.gc.ca/trans/account-resp/pr/cca-vmc/index-eng.html.

The financial statements of Status of Women Canadahave not been audited.

Suzanne Clément
Coordinator, Status of Women Canada
Ottawa, Canada
August 21, 2013

Johanne Tremblay
Chief Financial Officer

Status of Women Canada Statement of Financial Position (Unaudited)
As at March 31
(in dollars) 2013 2012
Liabilities
Accounts payable and accrued liabilities (Note 4) 2,884,795 4,870,903
Vacation pay and compensatory leave 395,133 350,132
Employee future benefits (Note 5) 460,828 649,869
Total Liabilities 3,740,756 5,870,904
Financial Assets
Due from Consolidated Revenue Fund 2,641,380 4,329,333
Accounts receivable and advances (Note 6) 14,251 169,862
Net financial assets 2,655,631 4,499,195
Departmental net debt 1,085,125 1,371,709
Non-financial assets
Tangible capital assets(Note 7) 90,917 160,663
Total non-financial assets 90,917 160,663
Departmental net financial position (994,208) (1,211,046)

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

Suzanne Clément
Coordinator, Status of Women Canada
Ottawa, Canada
August 21, 2013

Johanne Tremblay
Chief Financial Officer

Statement of Operations and Departmental Net Financial Position (Unaudited)
For the year ended March 31
(in dollars) 2013
Planned Results
2013 2012
Expenses
Women's participation in Canadian society 24,485,000 22,979,644 22,054,423
Strategic policy analysis, planning and development 2,037,000 2,446,185 2,246,280
Internal Services 4,317,000 5,681,383 5,871,419
Total Expenses 30,839,000 31,107,212 30,172,122
Revenues
Miscellaneous revenues - 125 50
Total Revenues - 125 50
Net cost of operations before government funding 30,839,000 31,107,087 30,172,072
Government funding
Net cash provided by Government 29,422,000 31,498,853 29,162,739
Change in Due from Consolidated Revenue Fund - (1,687,953) 228,416
Services provided without charge by other government departments (Note 8) 1,423,000 1,513,025 1,447,226
Net cost of operations after government funding (6,000) (216,838) (666,309)
Departmental net financial position – Beginning of year (1,095,000) (1,211,046) (1,877,355)
Departmental net financial position – End of year (1,089,000) (994,208) (1,211,046)

Segmented information (note 9)

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 dollars) 2013
Planned Results
2013 2012
Net cost of operations after government funding (6,000) (216,838) (666,309)
Change due to tangible capital assets
Acquisition of tangible capital assets (Note 7) 117,000 18,963 18,940
Amortization of tangible capital assets(Note 7) (83,000) (88,709) (84,631)
Proceeds from disposal of tangible capital assets - - (50)
Net gain on disposal of tangible capital assets including adjustments - - 50
Total change due to tangible capital assets 34,000 (69,746) (65,691)
Net Increase/(decrease) in net debt 28,000 (286,584) (732,000)
Departmental net debt - Beginning of year 1,355,000 1,371,709 2,103,709
Departmental net debt – End of year 1,383,000 1,085,125 1,371,709
Status of Women Canada Statement of Cash Flow (Unaudited)
For the year ended March 31
(in dollars) 2013 2012
Operating activities
Net Cost of Operations before government funding 31,107,087 30,172,072
Non-cash items
Amortization of tangible capital assets (Note 7) (88,709) (84,631)
Gain (Loss) on disposal of tangible capital assets - 50
Services provided without charge by other government departments  (Note 8) (1,513,025) (1,447,226)
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances (155,611) 144,905
Decrease (increase) in accounts payable and accrued liabilities 1,986,108 (334,331)
Increase in vacation pay and compensatory leave (45,001) (25,878)
Decrease in future employee benefits 189,041 718,888
Cash used in operating  activities 31,479,890 29,143,849
Capital investing activities
Acquisitions of tangible capital assets  (Note 7) 18,963 18,940
Proceeds from disposal of tangible capital assets - (50)
Cash used in capital investing activities 18,963 18,890
Net cash provided by Government of Canada 31,498,853 29,162,739

The accompanying notes form an integral part of these financial statements

1. Authority and Objectives

Status of Women Canada (SWC) was established by the Government of Canada in 1976 to "co-ordinate policy with respect to the status of women and administer related program" (Order in Council 1976-779).  The mandate of SWC is further guided by the Canadian Charter of Rights and Freedoms, as well as by Canada's adherence to the Convention on the Elimination of all Forms of Discrimination against Women. SWC plays a key role in fulfilling the Government of Canada's commitment to building a society that is inclusive and respectful of all Canadians by promoting equality and the full participation of women in Canada.

Strategic Outcome: Equality for women and their full participation in the economic, social, and democratic life of Canada. To achieve real progress on gender equality, SWC is firmly committed to consulting and acting in partnership with non-government organizations, provincial and territorial governments, the private and voluntary sectors and international organizations.

Programs

  • Women's Participation in Canadian Society: This program strengthens women's full participation by addressing their economic and social situations and their participation in democratic life through financial and professional assistance for projects and through strategic partnerships that leverage resources involving public institutions and non-governmental organizations.
  • Strategic Policy Analysis, Planning and Development: SWC develops strategic policy analysis, advice, and tools to support federal departments and central agencies in identification of policy priorities and in integrating gender-based analysis in existing and proposed policies, programs and initiatives. This is done through collaboration with other federal departments, provincial-territorial governments, civil society, and key international partners.
  • Internal Services: are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2. Summary of Significant accounting policies

These financial statements have been prepared using the Government's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

  1. Parliamentary authorities

    The Department is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Department 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 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 and the Statement of Change in Net Debt are the amounts reported in the future-oriented financial statements included in the 2012-13 Report on Plans Priorities.

  2. Net Cash Provided by Government 

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

  3. Amounts due from/to the  Consolidated Revenue Fund

    Amounts due from/to the Consolidated Revenue Fund (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 Department is entitled to draw from the CRF without further authorities to discharge its liabilities.

  4. Revenues

    Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

      
  5. 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, employer contributions to the health and dental insurance plans and legal are recorded as operating expenses at their estimated cost.
  6. Employee future benefits
    1. Pension benefits:  Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government.  The Department's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The Department'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.
    2. Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole. 
  7. 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.

  8. Tangible capital assets

    All tangible capital assets and leasehold improvements having an initial cost of $2,500 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 of the asset as follows:

    Asset Class

    Acquisition Cost equal or greater than Amortization Period
    Machinery and equipment $2,500 3-5 years
    Computer hardware $2,500 3-5 years
    Computer software $2,500 3-5 years
    Other equipment, including furniture $2,500 3-5 years
  9. 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 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.

3. Parliamentary Authorities

The Department 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, the Department 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:

  1. Reconciliation of net cost of operations to current year authorities used
    (in dollars) 2013 2012
    Net Cost of Operations before government funding  31,107,087 30,172,072
    Adjustments for items affecting net cost of operations but not affecting authorities:
    Services provided without charge by other government departments (Note 8) (1,513,025) (1,447,226)
    Decrease in employee future benefits (Note 5) 189,041 718,888
    Amortization of tangible capital assets (Note 7) (88,709) (84,631)
    Refund of previous year expenditures 59,706 82,610
    Gain on disposal of tangible capital assets - 50
    Increase in vacation pay and compensatory leave (45,001) (25,878)
    Other 125 1
      (1,397,863) (756,186)
    Adjustments for items not affecting net cost of operations but affecting authorities:
    Acquisitions of tangible capital assets 18,963 18,940
    Current year authorities used 29,728,187 29,434,826
  2. Authorities provided and used
    (in dollars) 2013 2012
    Authorities provided
    Vote 30 - Operating expenditures 10,310,751 10,594,731
    Vote 35 - Grants and Contributions 19,033,334 18,950,001
    Statutory amounts 1,262,449 1,216,207
    Less:
    Lapsed: Operating ExpendituresFootnote 1 (732,009) (660,895)
    Lapsed: Grants & Contributions  (146,288) (664,950)
    Lapsed: Proceeds from disposal of tangible capital assets (50) (218)
    Authorities available in future years - (50)
    Current year authorities used 29,728,187 29,434,826

    Footnotes

    Note 1: The $732,009 lapse in Operating expenditures includes two frozen allotments totalling approximately $124K (funds withheld by the Treasury Board which can not be spent by Status of Women Canada) and the planned carry forward of $462,303 for 2013-2014.

4. Accounts payable and accrued liabilities

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

(in dollars) 2013 2012
Accounts payable - Other government departments and agencies 46,906 6,407
Accounts payable - External parties 2,113,670 4,373,138
Total accounts payable 2,160,576 4,379,545
Accrued liabilities 724,219 491,358
Total accounts payable and accrued liabilities 2,884,795 4,870,903

5. Employee future benefits

  1. Pension benefits

    The Department's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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 Department contribute to the cost of the Plan. The 2012-13 expense amounts to $901,353 ($874,260 in 2011-12) which represents approximately 1.7 times (1.8 in 2011-12) the contributions by employees.

    The Department'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.

  2. Severance benefits

    The Department provides severance benefits to its employees based on eligibility, years of service and salary at termination.  These severance benefits are not pre-funded.  Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

    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.

    (in dollars) 2013 2012
    Restated
    (Note 10)
    Accrued benefit obligation, beginning of year 649,869 1,368,757
    Expense for the year 136,375 255,422
    Benefits paid during the year  (325,416) (974,310)
    Accrued benefit obligation, end of year  460,828 649,869

6. Accounts receivable and advances

The following table presents details of the Department's accounts receivable and advance balances:

(in dollars) 2013 2012
Receivables  - Other government departments and agencies 8,495 62,602
Receivables  - External parties 4,356 105,860
Employee advances  1,400 1,400
Net accounts receivable  14,251 169,862

7. Tangible capital assets

(in dollars)

Cost
Capital
Asset Class
Opening
Balance
Acquisitions Adjustments
(1)
Closing
Balance
Machinery and
equipment
27,617 - (27,617) -
Computer
hardware
547,468 18,963 35,957 602,388
Computer
software
189,393 - - 189,393
Other equipment,
including furniture
285,662 - (8,340) 277,322
Total 1,050,140 18,963 - 1,069,103

(1) Adjustments reflect changes to internal coding structure

Accumulated Amortization
Capital
Asset Class
Opening
Balance
Acquisitions Adjustments
(1)
Closing
Balance
Machinery and
equipment
27,617 - (27,617) -
Computer
hardware
492,552 26,125 30,258 548,935
Computer
software
141,025 29,474 - 170,499
Other equipment,
including furniture
228,283 33,110 (2,641) 258,752
Total 889,477 88,709 - 978,186

(1) Adjustments reflect changes to internal coding structure

Net Book Value
Capital
Asset Class
2013 2012
Machinery and
equipment
- -
Computer
hardware
53,453 54,916
Computer
software
18,894 48,368
Other equipment,
including furniture
18,570 57,379
Total 90,917 160,663

8. Related party transactions

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

  1. Common services provided without charge by other government departments During the year, the Department received services without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the Department's Statement of Operations and Departmental Net Financial Position as follows:
    (in dollars) 2013 2012
    Accommodation 839,258 820,893
    Employer's contribution to the health and dental insurance plans  673,767 626,333
    Total 1,513,025 1,447,226

    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 other departments and agencies without charge. The costs of these services, such as 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 the Department's Statement of Operations and Departmental Net Financial Position.

  2. Other transactions with related parties
    (in dollars) 2013 2012
    Expenses – Other Government departments and agencies   1,558,938 1,914,139
    Revenues - Other Government departments and agencies  125 50

9. Segmented information

Presentation by segment is based on the Department's program alignment architecture. 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 the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

(in dollars) 2013 2012
  Women's Participation
in Canadian Society
Strategic Policy
Analysis, Planning
and Development
Internal
Services
Total Total
Transfer payments
Payments to Provincial non–profit organizations 13,252,723 - - 13,252,723 13,971,194
Payments to national organizations 5,634,323 - - 5,634,323 4,313,857
Total transfer payments 18,887,046 - - 18,887,046 18,285,051
Operating expenses
Salaries and employee benefits 3,469,540 2,010,050 4,307,483 9,787,073 9,276,557
Accommodation 293,276 169,063 376,919 839,258 820,893
Professional and special services 94,075 105,160 358,331 557,566 878,748
Information 4,091 36,759 257,668 298,518 125,967
Travel and relocation 105,656 77,944 48,551 232,151 289,842
Communication 68,019 24,675 65,828 158,522 160,813
Rentals 42,701 20,262 61,871 124,834 55,622
Machinery and equipment 3,807 1,600 88,574 93,981 89,178
Amortization of tangible capital assets - - 88,709 88,709 84,631
Utilities, material and supplies 9,296 652 19,682 29,630 45,131
Repair and maintenance 1,890 - 7,280 9,170 59,264
Other 247 20 487 754 425
Total Operating expenses 4,092,598 2,446,185 5,681,383 12,220,166 11,887,071
Total Expenses 22,979,644 2,446,185 5,681,383 31,107,212 30,172,122
Revenues
Miscellaneous revenues - - 125 125 50
Total Revenues - - 125 125 50
Net cost of operations before government funding 22,979,644 2,446,185 5,681,258 31,107,087 30,172,072

10. Correction of Error

The results for Note 5b (Severance Benefits) for the year ended March 31, 2012 have been restated to reflect the correction of an error with respect to expenses for the year and benefits paid during the year.

(in dollars) 2012
As previously stated
Effect of change 2012
Restated
Accrued benefit obligation, beginning of year 1,368,757 - 1,368,757
Expense for the year (533,369) 788,791 255,422
Benefits paid during the year  (185,519) 788,791 (974,310)
Accrued benefit obligation, end of year  649,869 - 649,869