Western Economic Diversification Canada
Symbol of the Government of Canada

Common menu bar links

Financial Statements (unaudited) for the year ended March 31, 2013

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 Western Economic Diversification Canada (WD). 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 WD's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in WD'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 WD 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 on-going process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

WD will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Internal Control.

In the interim, WD has undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2013, in accordance with the Treasury Board Policy on Internal Control, and the results and action plan are summarized in the annex.

The financial statements of Western Economic Diversification Canada have not been audited.

 

Daphne Meredith,
Deputy Minister

Edmonton, Canada
Cathy Matthews
A/Chief Financial Officer
 

 

August 22, 2013
Date

 


 

Statement of Financial Position (Unaudited)
As at March 31

(in thousands of dollars)

  2013 2012
Liabilities
Accounts payable and accrued liabilities (note 4) $ 85,067 $ 80,249
Vacation pay and compensatory leave 1,619 1,684
Employee future benefits (note 5) 2,225 4,985
Total gross liabilities 88,911 86,918
 
Total net liabilities 88,911 86,918
 
Financial assets
Due from Consolidated Revenue Fund 85,033 80,187
Accounts receivable and advances (note 6) 146 166
Loans receivable (note 7) 18,418 23,808
Total gross financial assets 103,597 104,161
 
Financial assets held on behalf of Government
Accounts receivable and advances (note 6) (1) (7)
Loans receivable (note 7) (18,418) (23,808)
Total financial assets held on behalf of Government (18,419) (23,815)
 
Total net financial assets 85,178 80,346
 
Departmental net debt 3,733 6,572
 
Non-financial assets
Tangible capital assets (note 8) 783 1,199
Total non-financial assets 783 1,199
 
Departmental net financial position $ (2,950) $ (5,373)
Contractual obligations (note 9)

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

 

Daphne Meredith
Deputy Minister

Edmonton, Canada
Cathy Matthews
A/Chief Financial Officer

 

 

August 22, 2013
Date

 


 

Return to the top of this pagetop of page

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

(in thousands of dollars)

  2013
Planned Results
(Restated)
2013 2012
Expenses
Business Development $ 63,815 $ 56,708 $ 53,561
Innovation 62,049 59,822 66,502
Community Economic Development 16,698 34,715 40,321
Policy, Advocacy and Coordination 9,137 9,118 8,166
Internal Services 25,406 24,126 28,774
Expenses incurred on behalf of Government (1,987) (4,403) (4,766)
Total expenses 175,118 180,086 192,558
 
Revenues
Amortization of discount 486 82 2,222
Other 0 33 51
Interest 8 2 67
Revenues earned on behalf of Government (494) (112) (2,327)
Total revenues 0 5 13
 
Net cost from continuing operations 175,118 180,081 192,545
 
Transferred operations
Expenses 0 0 1,513
Net cost of transferred operations 0 0 1,513
 
Net cost of operations before government funding and transfers 175,118 180,081 194,058
 
Government funding and transfers
Net cash provided by Government 179,800 171,447 345,612
Change in due from Consolidated Revenue Fund (11,653) 4,846 (157,312)
Services provided without charge by other
government departments (note 10)
6,514 6,271 6,854
Transfer of assets and liabilities from (to)
other government departments (note 11)
0 (60) (553)
Total government funding and transfers 174,661 182,504 194,601
 
Net cost of operations after government funding and transfers 457 (2,423) (543)
 
Departmental net financial position — Beginning of year (7,092) (5,373) (5,916)
Departmental net financial position — End of year $ (7,549) $ (2,950) $ (5,373)
Segmented information (note 12)

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

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

(in thousands of dollars)

  2013
Planned Results
(Restated)
2013 2012
Net cost of operations after government funding and transfers $ 457 $ (2,423) $ (543)
 
Change due to tangible capital assets
Acquisition of tangible capital assets 0 0 83
Amortization of tangible capital assets (501) (412) (531)
Transfer to other government departments (note 11) 0 (4) (750)
Prior year adjustment to tangible capital assets 0 0 (10)
Total change due to tangible capital assets (501) (416) (1,208)
 
Change due to prepayments 0 0 (978)
 
Net increase (decrease) in departmental net debt (44) (2,839) (2,729)
 
Departmental net debt - Beginning of year 8,894 6,572 9,301
Departmental net debt - End of year $ 8,850 $ 3,733 $ 6,572
The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (Unaudited)
For the Year Ended March 31

(in thousands of dollars)

  2013 2012
Operating activities
Net cost of operations before government funding and transfers $ 180,081 $ 194,058
Non-cash items:
Amortization of tangible capital assets (412) (531)
Prior year adjustment to tangible capital assets 0 (10)
Services provided without charge
by other government departments (note 10)
(6,271) (6,854)
 
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (14) 2
Increase (decrease) in prepayments 0 (978)
Decrease (increase) in accounts payable and accrued liabilities (4,818) 157,370
Decrease (increase) in vacation pay and compensatory leave 65 184
Decrease (increase) in future employee benefits 2,760 2,485
Transfer of liabilities to other government departments (note 11) 56 (197)
Cash used in operating activities 171,447 345,529
 
Capital investing activities
Acquisition of tangible capital assets 0 83
Cash used in capital investing activities 0 83
 
Net cash provided by Government of Canada $ 171,447 $ 345,612
The accompanying notes form an integral part of these financial statements.

Return to the top of this pagetop of page


 

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

1. Authority and Objectives

Western Economic Diversification Canada (WD) was established in 1987 and mandated to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program, and project development and implementation.

As the federal economic development department for Western Canada, WD develops and supports economic policies, programs and activities that promote economic growth and assist Western Canada in responding to the economic challenges and opportunities it faces.

Its western base has enabled the department to develop a broad understanding of Western Canada and foster extensive partnerships with business and community organizations, research and academic institutions as well as provincial and municipal governments.

WD works to develop and diversify the western Canadian economy, helping to build businesses that are innovative and competitive globally, while diversifying the base of the western Canadian economy beyond primary resource industries.

WD's strategic outcome is advanced through the following program activities:

  1. Business Development: Strong small and medium-sized enterprises (SMEs) in Western Canada with improved capacity to remain competitive in the global marketplace;
     
  2. Innovation: A stronger knowledge-based economy;
     
  3. Community Economic Development: Communities have increased economic opportunities and capacity to respond to economic challenges, as well as the necessary investments in public infrastructure;
     
  4. Policy, Advocacy and Coordination: Policies and programs that strengthen the western Canadian economy;
     
  5. Internal Services: Effective and efficient support for advancing the organization's strategic outcome.
     

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 – WD is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to WD 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 are the amounts reported in the future-oriented financial statements included in the 2012–2013 Report on Plans and Priorities. The future-oriented financial statements for 2012–2013 have been restated to reflect the revenue net of non-respendable amounts. This restatement resulted in a $1.5M decrease in net cost of operations before government funding and transfers. In addition, the future-oriented financial statements have also been reclassified to conform to the current year presentation.
     
  2. Net Cash Provided by Government – WD operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by WD is deposited to the CRF, and all cash disbursements made by WD 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 or 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 WD is entitled to draw from the CRF without further authorities to discharge its liabilities.
     
  4. Revenues:
     
    • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.

      Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

      Revenues that are non-respendable are not available to discharge WD's liabilities. While the Deputy Head is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross 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. 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 a 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, legal services and workers' compensation 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 (The Public Service Superannuation Act), a multiemployer plan administered by the Government. WD's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. WD'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 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 and loans receivable are stated at the lower of cost and net recoverable value. However, when the terms of the loans are concessionary, such as those provided with a low or no interest clause, they are recorded at their estimated present value. A portion of the unamortized discount is recorded as revenue each year to reflect the change in the present value of the loans outstanding. Transfer payments that are unconditionally repayable are recognized as loans receivable. A valuation allowance is recorded for accounts and loans receivable where recovery is considered uncertain.
     
  8. Tangible capital assets – All tangible assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. WD 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 Amortization Period
    Machinery and equipment 10 years
    Vehicles 5 years
    Computer Software 3-7 years
    Leasehold improvements Lesser of the remaining term of lease
    or useful life of the improvement


    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
     
  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 allowance for doubtful accounts, the liability for employee future benefits, the useful life of tangible capital assets and unamortized discount related to unconditionally repayable transfer payments. 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.

Return to the top of this pagetop of page

3. Parliamentary authorities

WD 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, WD 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

  2013 2012
(Restated)
(in thousands of dollars)
Net cost of operations before government funding and transfers $ 180,081 $ 194,058
 
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (412) (531)
Services provided without charge by other government departments (6,271) (6,854)
Decrease in vacation pay and compensatory leave 65 154
Decrease in employee future benefits 2,760 2,327
Decrease in accrued liabilities not charged to authorities 1,103 1,281
Refund of prior years expenditures 4,363 4,234
Other 5 (6)
Total items affecting net cost of operations but not affecting authorities 1,613 605
 
Adjustments for items not affecting net cost of operations, but affecting authorities:
Acquisitions of tangible capital assets 0 83
Unconditionally repayable transfer payments 2,024 1,515
Decrease in prepayments 0 (978)
Total items not affecting net cost of operations but affecting authorities 2,024 620
 
Current year authorities used $ 183,718 $ 195,283

(b) Authorities provided and used

  2013 2012
(in thousands of dollars)
Authorities provided:
Vote 1 - Operating expenditures $ 47,430 $ 52,283
Vote 5 - Transfer payments 142,148 155,098
Statutory amounts 10,184 10,697
 
Less:
Authorities available for future years 0 (11)
Lapsed: Operating (4,880) (3,532)
Lapsed: Transfer payments (11,164) (19,252)
 
Current year authorities used $ 183,718 $ 195,283

4. Accounts payable and accrued liabilities

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

  2013 2012
(in thousands of dollars)
Accounts payable - Other government departments and agencies $ 727 $ 4,293
Accounts payable - External parties 82,690 74,198
Total accounts payable 83,417 78,491
 
Accrued liabilities 1,650 1,758
 
Total accounts payable and accrued liabilities $ 85,067 $ 80,249

In Canada's Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012–2013. As a result, WD has recorded at March 31, 2013, an obligation for termination benefits for an amount of $ 494,091 ($ 291,976 in 2011–2012) as part of accrued liabilities to reflect the estimated workforce adjustment costs.

5. Employee future benefits

(a) Pension benefits

WD'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 WD contribute to the cost of the Plan.  The estimated 2012–2013 expense amounts to $4,045,814 ($4,445,163 in 2011–2012), which represents approximately 1.7 times (1.8 times in 2011–2012) the contributions by employees.

WD'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

WD 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 as follows:

As part of the 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.

  2013 2012
(in thousands of dollars)
Accrued benefit obligation - Beginning of year $ 4,985 $ 7,470
Transferred to other government department, effective November 15, 2011 (note 11) 0 (174)
Subtotal 4,985 7,296
Expense for the year (890) 652
Benefits paid during the year (1,870) (2,963)
Accrued benefit obligation - End of year $ 2,225 $ 4,985

Return to the top of this pagetop of page

6. Accounts receivable and advances

The following table presents details of WD's accounts receivable and advances balances:

  2013 2012
(in thousands of dollars)
Receivables - Other government departments and agencies $ 31 $ 58
Receivables - External parties 112 104
Employee advances 3 4
Gross accounts receivable 146 166
Accounts receivable held on behalf of Government (1) (7)
Net accounts receivable $ 145 $ 159

7. Loans receivable

The following table presents details of WD's loans and transfer payments recoverable balances:

  2013 2012
(in thousands of dollars)
Loans receivable
Unconditionally repayable transfer payments $ 35,321 $ 38,361
Accrued interest - unconditionally repayable transfer payments 3,276 4,720
Less: Unamortized discount (1,633) (1,715)
Subtotal 36,964 41,366
 
Transfer payments recoverable 0 139
Subtotal 36,964 41,505
 
Less: Allowance for uncollectibility (18,546) (17,697)
 
Gross loans receivable 18,418 23,808
 
Loans receivable held on behalf of Government (18,418) (23,808)
 
Net loans receivable $ 0 $ 0

(a) Unconditionally repayable transfer payments

The unconditionally repayable transfer payment portfolio consists of 32 non-interest bearing loans issued in the years from 1992 to 2013, with prescribed repayment terms. The loans are recorded at their discounted net present values using market interest rates at the time of the loans. An allowance of $15,270,000 ($12,846,000 in 2011–2012) has been recorded.

With respect to interest charged on unconditionally repayable transfer payments, an allowance of $3,276,000 ($4,720,000 in 2011–2012) has been recorded.

(b) Transfer payments recoverable

Transfer payments recoverable relate to payments made to outside parties which are repayable based on conditions specified in the contribution agreement that have come into being. No allowance in 2012–2013 ($131,000 in 2011–2012) has been recorded.

8. Tangible capital assets

Capital asset class Cost Accumulated Amortization Net Book Value
Opening Balance Adjustments
(1)
Disposals and Write–offs Closing Balance Opening Balance Amortization Adjustments
(1)
Disposals and Write–offs Closing Balance 2013 2012
(in thousands of dollars)
Machinery and equipment $ 156 $ (11) $ 0 $ 145 $ 81 $ 12 $ (7) $ 0 $ 86 $ 59 $ 75
Computer software 2,243 0 346 1,897 1,453 282 0 346 1,389 508 790
Vehicles 113 0 38 75 69 14 0 38 45 30 44
Leasehold improvements 1,004 0 77 927 714 104 0 77 741 186 290
Total $ 3,516 $ (11) $  461 $ 3,044 $ 2,317 $ 412 $ (7) $ 461 $ 2,261 $ 783 $ 1,199

There were no acquisitions of tangible capital assets in 2012–2013.

(1) Effective June 20, 2013, WD transferred a Pitney Bowes MB 800 Mail Machine with a net book value of $4,340 to Canada Border Services Agency. This transfer is included in the adjustment columns (refer to note 11 for further detail on the transfer).

9. Contractual obligations

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

  2014 2015 2016 2017 2018 and
thereafter
Total
(in thousands of dollars)
Transfer Payments
Core programming $ 77,151 $ 6,745 $ 2,404 $ 1,845 $ 7,500 $ 95,645
Community Infrastructure Improvement Fund 27,363 0 0 0 0 27,363
Total $ 104,514 $ 6,745 $ 2,404 $ 1,845 $ 7,500 $ 123,008

Return to the top of this pagetop of page

10. Related party transactions

WD is related as a result of common ownership to all government departments, agencies and Crown Corporations. WD enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, WD 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, WD received services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded in WD's Statement of Operations and Departmental Net Financial Position as follows:

  2013 2012
(in thousands of dollars)
Employer's contribution to the health and dental insurance plans $ 2,885 $ 3,273
Accommodation 3,344 3,540
Workers' Compensation 42 41
Total $ 6,271 $ 6,854

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 the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included in WD's Statement of Operations and Departmental Net Financial Position.

(b) Administration of programs on behalf of other government departments

Part of WD's mandate is to coordinate federal economic activities in the West. In this regard, WD implements programs on behalf of other federal departments and agencies. The following is a list of programs valued at greater than one million dollars in federal transfer payments administered by WD over the last two fiscal years. These transfer payment expenses are reflected in the financial statements of Infrastructure Canada and not those of WD.

  2013 2012
(in thousands of dollars)
Building Canada Fund (Communities) $ 62,139 $ 122,639
Canada Strategic Infrastructure Fund 5,001 14,162
Municipal Rural Infrastructure Fund 10,804 26,717
Total $ 77,944 $ 163,518

(c) Other transactions with related parties

  2013 2012
(in thousands of dollars)
Expenses - Other government departments and agencies $ 1,411 $ 2,198

11. Transfers from/to other government departments

During fiscal year 2012–2013, WD transferred to Shared Services Canada (SSC) accrued liabilities book of $56 thousand.

  2013 2012
(in thousands of dollars)
Assets:
Tangible capital assets (net book value) (note 8)
Transferred to Canada Border Services Agency $ 4 $ 0
Transferred to Shared Services Canada 0 720
Transferred to Canadian Environmental Assessment Agency 0 30
Total assets transferred 4 750
 
Liabilities:
Accounts payable and accrued liabilities (56) 0
Vacation pay and compensatory leave 0 23
Employee future benefits (note 5) 0 174
Total liabilities transferred (56) 197
 
Adjustment to the departmental net financial position $ 60 $ 553

12. Segmented information

Presentation by segment is based on WD'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 program activities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

  Business Development Innovation Community Economic Development Policy, Advocacy and Coordination Internal Services 2013
Total
2012
Total
(in thousands of dollars )
Transfer payments
Non-profit organizations $ 46,563 $ 54,613 $ 24,376 $ 881 $ 0 $ 126,433 $ 133,783
Other levels of governments within Canada 0 0 5,807 0 0 5,807 3,489
Industry 741 0 0 0 0 741 1,491
Transfer payment conditions met 0 0 (4,184) 0 0 (4,184) (3,703)
Total transfer payments 47,304 54,613 25,999 881 0 128,797 135,060
Operating expenses
Salaries and employee benefits 6,032 4,717 4,429 7,110 18,104 40,392 44,929
Professional and special services 2,504 18 119 138 1,428 4,207 5,092
Bad debt expense 1 0 3,719 0 0 3,720 4,054
Accommodation 491 404 353 583 1,513 3,344 3,540
Rentals 127 7 9 29 1,234 1,406 840
Transportation and communication 86 27 54 291 886 1,344 2,027
Amortization of tangible capital assets 13 0 0 0 399 412 447
Acquisition of machinery and equipment 46 16 15 29 186 292 543
Utilities, materials and supplies 62 7 7 18 167 261 446
Information 25 6 7 29 187 254 236
Repairs and maintenance 11 2 2 4 24 43 105
Other 6 5 2 6 (2) 17 5
Expenses incurred on behalf of government (684) 0 (3,719) 0 0 (4,403) (4,766)
Total operating expenses 8,720 5,209 4,997 8,237 24,126 51,289 57,498
Total expenses 56,024 59,822 30,996 9,118 24,126 180,086 192,558
Revenues
Amortization of discount 0 6 76 0 0 82 2,222
Other 26 4 0 1 2 33 51
Interest 0 0 2 0 0 2 67
Revenues earned on behalf of government (25) (9) (78) 0 0 (112) (2,327)
Total revenues 1 1 0 1 2 5 13
Net cost from continuing operations $ 56,023 $ 59,821 $ 30,996 $ 9,117 $ 24,124 $ 180,081 $ 192,545

Return to the top of this pagetop of page

13. Comparative information

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

 


 

Summary of the assessment of effectiveness of the systems of internal control over financial reporting and the action plan of Western Economic Diversification Canada for fiscal year 2012–2013 (unaudited)

Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting (unaudited)

1. Introduction

In support of an effective system of internal control, Western Economic Diversification Canada (WD) annually assesses the performance of its financial controls to ensure:

  • Financial arrangements or contracts are entered into only when sufficient funding is available;
     
  • Payments for goods and services are made only when the goods or services are received or the conditions of contracts or other arrangements have been satisfied; and
     
  • Payments have been properly authorized.

WD will leverage the results of the periodic Core Control Audit to be performed by the Office of the Comptroller General. Below is a summary of the results of the assessment conducted during fiscal year 2012–2013.

2. Assessment results during fiscal year 2012–2013

For the most part, controls related to payment for goods and services and payment authority were functioning well and form an adequate basis for WD's system of internal control.

In the current year there were no significantly amended key controls which required a reassessment.

The department conducted its on-going monitoring as per its plan as follows:

  • Completed as planned and remedial actions partially commenced – Entity Level Controls, Transfer Payments, Payroll and Revenue and Account Receivable.
     
  • Minor control exceptions in Operating Expenses and action plans will be completed by September 30, 2013.

3. Departmental Action Plan

WD will continue to monitor the performance of its system of internal control with a focus on the core controls related to financial transactions. The department will address items identified for remedial action.