Financial Statements 2014-2015

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, 2015, 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 Canada 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.

Status of Women Canada is 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 2011-12 by the Office of the Comptroller General of Canada . 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-en.html.

The financial statements of Status of Women Canada have not been audited.

Original signed by

Meena Ballantyne, Deputy Head
Status of Women Canada
Gatineau, Canada
August 5, 2015

Original signed by

Anik Lapointe, Chief Financial Officer
Status of Women Canada
Gatineau, Canada

Status of Women Canada

Statement of Financial Position (Unaudited)
As at March 31
(in dollars)

2015 2014
Departmental net financial position $ (149,149) $ (100,839)
Liabilities
Accounts payable and accrued liabilities (Note 4) $ 5,135,217 $ 3,668,925
Vacation pay and compensatory leave 297,027 323,167
Employee future benefits (Note 5) 451,247 335,351
Total liabilities 5,883,491 4,327,443
Financial assets
Due from Consolidated Revenue Fund 5,006,454 3,551,168
Accounts receivable and advances (Note 6) 201,396 66,213
Net financial assets 5,207,850 3,617,381
Departmental net debt 675,641 710,062
Non-financial assets
Tangible capital assets (Note 7) 526,492 609,223
Total non-financial assets 526,492 609,223

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

Meena Ballantyne, Deputy Head
Status of Women Canada
Gatineau, Canada
August 5, 2015

Anik Lapointe, Chief Financial Officer
Status of Women Canada
Gatineau, Canada

Status of Women Canada

Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31
(in dollars)

2015
Planned Results
2015 2014
Departmental net financial position – End of year $ (149,149) $ (100,839)
Expenses
Advancing equality for women $ 24,423,000 $ 23,346,863 $ 23,181,897
Leadership, expertise and advice 2,473,000 2,294,109 2,482,054
Internal services 4,185,000 5,857,268 6,371,020
Total expenses 31,081,000 31,498,240 32,034,971
Revenues
Miscellaneous revenues - - 2,004
Total revenues - - 2,004
Net cost of operations before government funding $ 31,081,000 $ 31,498,240 $ 32,032,967
Government funding and transfers
Net cash provided by Government 28,788,249 30,568,533
Change in due from Consolidated Revenue Fund 1,455,286 909,788
Services provided without charge from other government departments (Note 8) 1,487,124 1,448,015
Transfer of the transition payments for implementing salary payments in arrears (Note 9) (280,729) -
Net cost of operations after government funding 48,310 (893,369)
Departmental net financial position – Beginning of year (100,839)) (994,208)

Segmented information (note 10)

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

Status of Women Canada

Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31
(in dollars)

2015 2014
Departmental net debt – End of year $ 675,641 $ 710,062
Net cost of operations after government funding $ 48,310 $ (893,369)
Change due to tangible capital assets
Acquisition of tangible capital assets 29,584 583,890
Amortization of tangible capital assets (112,315) (65,584)
Proceeds from disposal of tangible capital assets - ($2,004)
Net gain on disposal of tangible capital assets including adjustments - 2,004
Total change due to tangible capital assets (82,731) 518,306
Net increase (decrease) in departmental net debt (34,421) (375,063)
Departmental net debt - Beginning of year 710,062 1,085,125

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

Status of Women Canada

Statement of Cash Flow (Unaudited)
For the Year Ended March 31
(in dollars)

2015 2014
Net cash provided by Government of Canada $ 28,788,249 $ 30,568,533
Operating activities
Net cost of operations before government funding $ 31,498,240 $ 32,032,967
Non-cash items
Amortization of tangible capital assets (112,315) (65,584)
Gain (Loss) on disposal of tangible capital assets - 2,004
Services provided without charge by other government departments (Note 8) (1,487,124) (1,448,015)
Transfer of transition payments for implementing salary payments in arrears (Note 9) 280,729 -
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances 135,183 51,962
Decrease (increase) in accounts payable and accrued liabilities (1,466,292) (784,130)
Decrease (increase) in vacation pay and compensatory leave 26,140 71,966
Decrease (increase) in future employee benefits (115,896) 125,477
Cash used in operating activities 28,758,665 29,986,647
Capital investing activities
Acquisition of tangible capital assets 29,584 583,890
Proceeds from disposal of tangible capital assets - (2,004)
Cash used in capital investing activities 29,584 581,886

The accompanying notes form an integral part of these financial statements

Status of Women Canada

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

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 between Women and Men is Promoted and Advanced in Canada.

Programs

2. Summary of Significant accounting policies

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

Significant accounting policies are as follows:

a. Parliamentary authorities
The 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 “Expenses” and “Revenues” section of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2014-15 Report on Plans Priorities. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Department Net Financial Position and in the Statement of Change in Department Net Debt because these amounts were not included in the 2014-15 Report on Plans and Priorities.
b. 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.
c. 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.
d. Revenues
Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the 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. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as receivable.
  •  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 are recorded as operating expenses at their estimated cost.
f. Employee future benefits
i. 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.
ii. 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.
h. 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 Amortization Period
Computer hardware 3-5 years
Computer software 3-5 years
Other equipment, including furniture 3-5 years
Motor vehicles 5 years
i. 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:

a) Reconciliation of net cost of operations to current year authorities used
2015 2014
(in dollars)
Current year authorities used $ 30,125,743 $ 31,422,283
Net Cost of Operations before government funding $ 31,498,240 $ 32,032,967
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (Note 8) (1,487,124) (1,448,015)
(Increase) Decrease in employee future benefits (115,896) 125,477
Amortization of tangible capital assets (112,315) (65,584)
Refund of previous year expenditures 6,385 119,575
Gain on disposal of tangible capital assets - 2,004
Decrease in vacation pay and compensatory leave 26,140 71,966
Other - 3
Total items affecting net cost of operations but not affecting authorities (1,682,810) (1,194,574)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 29,584 583,890
Transition payments for implementing salary payments in arrears 280,729 -
Total items not affecting net cost of operations but affecting authorities 310,313 583,890
b) Authorities provided and used
2015 2014
(in dollars)
Authorities provided:
Vote 1 - Operating expenditures $ 10,018,894 $ 11,625,969
Vote 5 - Grants and Contributions 19,033,333 19,033,333
Statutory amounts 1,275,340 1,327,619
Less:
Lapsed: Operating Expenditures 201,823 562,509
Lapsed: Grants & Contributions 1 -
Lapsed: Proceeds from disposal of tangible capital assets - 125
Authorities available in future years - 2,004
Current year authorities used $ 30,125,743 $ 31,422,283

4. Accounts payable and accrued liabilities

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

2015 2014
(in dollars)
Accounts payable - Other government departments and agencies $ 161,761 $ 136,300
Accounts payable - External parties 2,840,744 2,617,971
Total accounts payable 3,002,505 2,754,271
Accrued liabilities 2,132,712 914,654
Total accounts payable and accrued liabilities $ 5,135,217 $ 3,668,925

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 2012‒13. As a result, the Department has recorded at March 31, 2015, an obligation for termination benefits for an amount of $451,247 ($361,998 in 2013‒14) as part of accrued liabilities to reflect the estimated workforce adjustment costs.

5. Employee future benefits

a) Pension benefits

The Department's employees participate in the public service pension plan (the “Plan”), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and the Department contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Canada’s Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2014-15 expense amounts to $870,453 ($931,952 in 2013-14). For Group 1 members, the expense represents approximately 1.41 times (1.6 times in 2013-14) the employee contributions and, for Group 2 members, approximately 1.39 times (1.5 times in 2013-14) the employee contributions.

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.

b) Severance benefits

The Department 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. Information about the severance benefits, measured as at March 31, is presented below.

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.

2015 2014
(in dollars)
Accrued benefit obligation - Beginning of year $ 335,351 $ 460,828
Expense for the year 183,223 308,778
Benefits paid during the year (67,327) (434,255)
Accrued benefit obligation - End of year $ 451,247 $ 335,351

6. Accounts receivable and advances

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

2015 2014
Receivables - Other government departments and agencies $ 19,678 $ 10,255
Receivables - External parties 181,718 54,558
Employee advances - 1,400
Net accounts receivable $ 201,396 $ 66,213

7. Tangible capital assets

Cost
(in dollars)
Opening Balance Acquisitions Disposals and Write-Offs Closing Balance
Total $ 1,043,770 $ 112,315 $ (823,070) $ 333,015
Informatics hardware $ 941,118 $ 8,525 $ (509,579) $ 440,064
Informatics purchased and developed software 189,393 13,720 (183,183) 19,930
Other equipment, including furniture 522,482 7,339 (130,308) 399,513
Accumulated Amortization
(in dollars)
Opening Balance Amortization Disposals and Write-Offs Closing Balance
Total $ 1,043,770 $ 112,315 $ (823,070) $ 333,015
Informatics hardware $ 590,050 $ 53,085 $ (509,577) $ 133,558
Informatics purchased and developed software 185,184 4,209 (183,183) 6,210
Other equipment, including furniture 268,536 112,315 (823,070) 333,015
Net book value
(in dollars)
2015 2014
Total $ 526,492 $ 609,223
Informatics hardware $ 306,506 $ 351,068
Informatics purchased and developed software 13,720 4,209
Other equipment, including furniture 206,266 253,946

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.

(a) 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:

2015 2014
(in dollars)
Accommodation $ 848,923 $ 799,331
Employer's contribution to the health and dental insurance plans 638,201 648,684
Total $ 1,487,124 $ 1,448,015

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.

(b) Other transactions with related parties
2015 2014
Expenses – Other Government departments and agencies $ 1,781,343 $ 2,258,484
Revenues - Other Government departments and agencies - 2,004

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

9. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in 2014-15. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay processes. This change to the pay system had no impact on the expenses of the Department. However, it did result in the use of additional spending authorities by the Department. Prior to year end, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Services and Procurement Canada, who is responsible for the administration of the Government pay system.

10. 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:

2015 2014
(in dollars)
Advancing equality for women Leadership, expertise and advice Internal Services Total Total
Transfer Payments to Organizations, Including Crown Corporations and Non-Profit Organizations $ 19,033,332 $ - $ - $ 19,033,332 $ 19,033,333
Operating expenses
Salaries and employee benefits 3,689,958 1,925,803 4,360,348 9,976,109 10,037,651
Accommodation 321,999 165,213 361,711 848,923 799,331
Professional and special services 101,515 78,556 513,084 693,155 1,169,152
Information 6,500 10,364 92,988 109,852 97,769
Travel and relocation 114,090 88,987 167,637 370,714 304,722
Communication 42,840 16,891 82,392 142,123 242,503
Rentals 17,651 6,095 123,125 146,871 134,241
Machinery and equipment 12,563 820 23,594 36,977 167,413
Amortization of tangible capital assets - - 112,315 112,315 65,584
Utilities, material and supplies 6,515 1,380 18,767 26,662 34,388
Repair and maintenance 296 - 1,536 1,832 44,721
Other (396) - (229) (625) (95,837)
Total Operating expenses 4,313,531 2,294,109 5,857,268 12,464,908 13,001,638
Total Expenses 23,346,863 2,294,109 5,857,268 31,498,240 32,034,971
Revenuess
Miscellaneous revenues - - - - 2,004
Total Revenues - - - - 2,004
Net cost of operations before government funding $ 23,346,863 $ 2,294,109 $ 5,857,268 $ 31,498,240 $ 32,032,967
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