Planning and Reporting

Financial Statements

2013-2014 (Future-oriented)

Status of Women Canada
Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial statements for the years ending March 31, 2013 and 2014 rests with departmental management.

Management is responsible for the information contained in these future-oriented financial statements and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management as at December 1st, 2012, reflect the plans described in the Report on Plans and Priorities and reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material.

The Future-Oriented Financial Statements for Status of Women have not been audited.

Suzanne Clément
Coordinator / Head of Agency
Status of Women Canada
Ottawa, Canada
Johanne Tremblay
A/Chief Financial Officer
 

February 15, 2013

Status of Women Canada
Future-oriented Statement of Financial Position (Unaudited)
At March 31
(in thousand of dollars) Forecast 2013 Forecast 2014
Departmental net financial position (927) (991)
Liabilities
Accounts payable and accrued liabilities 4,444 4,433
Vacation pay and compensatory leave 387 409
Employee future benefits (Note 7) 660 670
Total Liabilities 5,491 5,512
 
Financial Assets
Due from Consolidated Revenue Fund 4,437 4,420
Accounts receivable and advances 10 17
Net financial assets 4,447 4,437
 
Departmental net debt 1,044 1,075
 
Non-financial assets
Tangible capital assets (Note 6) 117 84
Total non-financial assets 117 84
 

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

Suzanne Clément
Coordinator / Head of Agency
Status of Women Canada
Ottawa, Canada
Johanne Tremblay
A/Chief Financial Officer
 

February 15, 2013

Status of Women Canada
Future Oriented Statement of Operations and Departmental Net Financial Position (Unaudited)
For the year ended March 31
(in thousands of dollars) Forecast 2013 Forecast 2014
Expenses
Departmental net financial position – Beginning of year (1,211) (927)
     
Departmental net financial position – End of year (927) (991)
Women's participation in Canadian society 24,434  
Strategic policy analysis, planning and development 2,328  
Advancing equality for women   24,484
Leadership, expertise and advice   2,520
Internal services 4,463 4,112
Total Expenses 31,225 31,116
     
Net cost of operations before Government funding 31,225 31,116
     
Government funding
Net cash provided by Government 29,938 29,635
Change in due from Consolidated Revenue Fund 108 (17)
Services provided without charge by other Government departments (Note 8) 1,463 1,434
Net cost of operations after Government funding (284) 64
     

Segmented information (note 9)

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

Status of Women Canada
Future Oriented Statement of Change in Departmental Net Debt (Unaudited)
For the year ended March 31
(in thousands of dollars) Forecast 2013 Forecast 2014
Departmental net debt - Beginning of year 1,372 1,044
     
Departmental net debt – End of year 1,044 1,075
Net cost of operations after government funding (284) 64
     
Change due to tangible capital assets
Acquisition of tangible capital assets (Note 6) 46 46
Amortization of tangible capital assets (Note 6) (90) (78)
Total change due to tangible capital assets (44) (33)
     
Net Increase/(decrease) in net debt (328) 31
     
Status of Women Canada
Future Oriented Statement of Cash Flow (Unaudited)
For the year ended March 31
(in thousands of dollars) Forecast 2013 Forecast 2014
Operating activities
Net cash provided by Government of Canada 29,938 29,635
Net Cost of Operations before government funding 31,225 31,116
     
Non-cash items
Amortization of tangible capital assets (Note 6) (90) (78)
Services provided without charge by other government departments (Note 8) (1,463) (1,435)
     
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances (36) 7
(Increase) decrease in liabilities 256 (21)
Cash used in operating activities 29,892 29,589
     
Capital investing activities
Acquisitions of tangible capital assets (Note 6) 46 46
Cash used in capital investing activities 46 46
     

The accompanying notes form an integral part of these financial statements

Status of Women Canada
Notes to the Future-Oriented Financial Statements (Unaudited)

1. Authority and Objectives

The Office of the Co-ordinator, Status of Women, known as Status of Women Canada (SWC), is a federal government agency that promotes equality between women and men in all aspects of Canadian life. The mandate of SWC is “to coordinate policy with respect to the status of women and administer related programs” (1976).

SWC is responsible for exercising leadership and working in partnership to promote and advance equality by: supporting community-based action and innovation that will lead to equality by helping to create conditions for success for women and girls in Canada; providing expert advice on gender equality and gender-based analysis in the development of effective programs, policies and legislation for all Canadians; promoting commemorative dates relating to women and girls in Canada; and supporting Canada's efforts to meet international obligations.

SWC works to promote and advance equality for women and girls, focusing its efforts in three areas: improving women's and girls' economic security and prosperity; ending violence against women and girls; and supporting the advancement and increased representation of women and girls in leadership and decision-making roles. While SWC focuses on these three areas, the agency is able to address issues specific to diverse groups, such as Aboriginal, immigrant and rural women and girls.

SWC has updated its program alignment architecture for fiscal year 2013-14 and beyond. The Programs description provided below reflect the new architecture.

Strategic Outcome: Equality between women and men is promoted and advanced in Canada

Programs

  • Leadership, expertise and advice: SWC promotes public understanding about the status of women in Canada and encourages Canadians to engage in efforts to advance equality between women and men. SWC also provides strategic policy analysis and advice and acts as a knowledge broker to support federal organizations and other stakeholders in advancing equality for women and girls. Communications activities form a key aspect of this Program and commemorate important dates such as Women's History Month and Persons Day.

  • Advancing equality for women: SWC supports action and innovation by investing in initiatives that work to bring about equality between women and men. The Program provides grant and contribution funding to organizations to support community-based action by carrying out projects that will lead to equality in communities across Canada. Funded projects occur at the national, regional, and local levels and work to help create conditions for success for women in Canada.

  • 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; 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. Methodology and Significant assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the Organization as described in the Report on Plans and Priorities.

The main assumptions are as follows:

  1. The Organization's activities will remain substantially the same as for the previous year.
  2. Expenses, including the determination of amounts internal and external to the government, are based on historical experience, trend analysis and other analytical methodologies. The general historical pattern is expected to continue.
  3. Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
  4. Estimated year end information for 2012-13 is used as the opening position for the 2013-14 forecasts.

These assumptions are adopted as at December 1st, 2012

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results from 2012-13 and for 2013-14, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements, Status of Women Canada has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  2. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.
  3. Implementation of new collective agreements

Once the Report on Plans and Priorities is presented, Status of Women Canada will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant accounting policies

The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2012-13 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

  1. Parliamentary authorities

    The Organization is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Organization 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 Future-Oriented Statement of Operations and Departmental Net Financial Position and in the Future-Oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting.

  2. Net Cash Provided by Government

    The Organization operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Organization is deposited to the CRF and all cash disbursements made by the Organization 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 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 Organization is entitled to draw from the CRF without further authorities to discharge its liabilities.

  4. 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 services are recorded as operating expenses at their estimated cost.
  5. Employee future benefits
    1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government. The Organization's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The Organization'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. 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.
  6. 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.

  7. 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 Organization 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 Acquisition Cost equal or greater than Amortization Period
    Machinery and equipment $2,500 3-5 years
    Informatics hardware $2,500 3-5 years
    Informatics purchased and developed software $2,500 3-5 years
    Other equipment, including furniture $2,500 3-5 years

5. Parliamentary Authorities

The Organization receives most of its funding through annual Parliamentary authorities. Items recognized in the Future-Oriented Statement of Operations and Departmental Net Financial Position and the Future-Oriented Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the Organization 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) Authorities requested

(in thousands of dollars)

  Forecast 2013 Forecast 2014
Authorities requested:
Forecast authorities available 29,671 29,617
Operating expenditures 9,495 9,339
Grants and Contributions 18,950 19,033
Statutory amounts 1,226 1,245

Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

(b) Reconciliation of net cost of operations to requested authorities
(in thousands of dollars) Forecast 2013 Forecast 2014
Current year authorities used 29,671 29,617
Net Cost of Operations before Government funding 31,225 31,116
     
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other Government departments (Note 8) (1,463) (1,435)
Increase in employee future benefits (10) (10)
Amortization of tangible capital assets (Note 6) (90) (78)
Increase in vacation pay and compensatory leave (37) (22)
  (1,600) (1,545)
     
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 46 46

6. Tangible capital assets

(in thousands of dollars) Forecast 2013 Forecast 2014
Net Book Value 117 85
Opening balance 161 117
Acquisition of tangible capital assets 46 46
Less: Current year amortization (90) (78)

7. Employee future benefits

(a) Pension benefits

The Organization'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 Organization contribute to the cost of the Plan. The forecasted expenses are $834,000 in 2012-13 and $857,000 in 2013-14, which represents approximately 1.8 times the contributions by employees.

The Organization'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 Organization 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, estimated as at the date of these statements is as follows:

(in thousands of dollars) Forecast 2013 Forecast 2014
Accrued benefit obligation, end of year 660 670
Accrued benefit obligation, beginning of year 650 660
Expense for the year (162) (164)
Benefits paid during the year 172 174

8. Related party transactions

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

(a) Common services provided without charge by other Government departments

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

(in thousands of dollars) Forecasted 2013 Forecasted 2014
Total 1,463 1,435
Accommodation 843 798
Employer's contribution to the health and dental insurance plans 620 637

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 Organization's Future-Oriented Statement of Operations and Departmental Net Financial Position.

9. Segmented information

Presentation by segment is based on the Organization'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 4. The following table presents the forecasted expenses by program and by major object of expenses. The segment results for the period are as follows:

(in thousands of dollars) Forecasted 2013 Forecasted
2014
    Advancing equality for women Leadership, expertise and advice Internal Services Total
Net cost of operations before Government funding 31,225 24,484 2,520 4,112 31,116
Transfer payments
Payments to provincial non–profit organizations 14,885 14,950 - - 14,950
Payments to national organizations 4,065 4,083 - - 4,083
Total transfer payments 18,950 19,033 - - 19,033
           
Operating expenses
Salaries and employee benefits 8,857 4,552 1,858 2,656 9,066
Professional and special services 1,055 207 308 553 1,068
Accommodation 843 401 164 234 799
Travel and relocation 404 133 108 142 383
Communications 235 58 13 151 222
Machinery and equipment 181 41 18 84 143
Information 381 7 31 93 131
Amortization of tangible capital assets 90 - - 78 78
Repair and maintenance 89 12 4 50 66
Utilities, material and supplies 83 20 4 42 66
Rentals 53 19 12 28 59
Other 4 1 - 1 2
Total operating expenses 12,275 5,451 2,520 4,112 12,083