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Financial Statements (unaudited) for the year ended March 31, 2014

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, 2014, 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 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 completed in 2013-14 by the Office of the Comptroller General of Canada (OCG). The Audit Report and related Management Action Plan will be posted on the departmental web site when available.

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

 

Daphne Meredith, Deputy Minister
 
Edmonton, Canada

 
August 11, 2014
Date
 
Kathryn Mattern,
A/Chief Financial Officer
 
 
August 1, 2014
Date
 

 


 

Statement of Financial Position (Unaudited)
As at March 31

(in dollars)

  2014 2013
Liabilities
Accounts payable and accrued liabilities (note 4) $ 61,867,745 $ 85,066,868
Vacation pay and compensatory leave 1,409,895 1,618,382
Employee future benefits (note 5) 1,452,582 2,225,146
Total gross liabilities 64,730,222 88,910,396
 
Total net liabilities 64,730,222 88,910,396
 
Financial assets
Due from Consolidated Revenue Fund 61,833,534 85,032,611
Accounts receivable and advances (note 6) 34,218 146,205
Loans receivable (note 7) 14,427,729 18,417,443
Total gross financial assets 76,295,481 103,596,259
 
Financial assets held on behalf of Government
Accounts receivable and advances (note 6) (7) (750)
Loans receivable (note 7) (14,427,729) (18,417,443)
Total financial assets held on behalf of Government (14,427,736) (18,418,193)
 
Total net financial assets 61,867,745 85,178,066
 
Departmental net debt 2,862,477 3,732,330
 
Non-financial assets
Tangible capital assets (note 8) 467,452 782,506
Total non-financial assets 467,452 782,506
 
Departmental net financial position $ (2,395,025) $ (2,949,824)
Contractual obligations (note 9)

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

 

Daphne Meredith, Deputy Minister
 
Edmonton, Canada

 
August 11, 2014
Date
 
Kathryn Mattern,
A/Chief Financial Officer
 
 
August 1, 2014
Date
 

 


 

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

(in dollars)

  2014
Planned Results
2014 2013
Expenses
Business Development and Innovation $ 93,540,617 $ 98,953,836 $ 116,530,552
Community Economic Growth 52,616,119 59,092,238 34,714,177
Policy, Advocacy and Coordination 9,433,639 10,273,715 9,117,524
Internal Services 23,674,644 19,885,109 24,126,213
Expenses incurred on behalf of Government 907,776 (204,033) (4,402,930)
Total expenses 180,172,795 188,000,865 180,085,536
 
Revenues
Amortization of discount 365,968 398,276 81,842
Other 41,233 271,151 33,355
Interest 13,572 4,501 1,602
Revenues earned on behalf of Government (417,741) (673,093) (112,242)
Total revenues 3,032 835 4,557
 
Net cost of operations before government funding and transfers 180,169,763 188,000,030 180,080,979
 
Government funding and transfers
Net cash provided by Government 180,170,669 205,735,447 171,448,650
Change in due from Consolidated Revenue Fund (6,274,883) (23,199,077) 4,845,270
Services provided without charge by other government departments (note 10) 6,139,539 6,021,428 6,270,136
Transfer of assets and liabilities from (to) other government departments (note 11) 0 (2,969) (60,007)
Total government funding and transfers 180,035,325 188,554,829 182,504,049
 
Net cost of operations after government funding and transfers 134,438 (554,799) (2,423,070)
 
Departmental net financial position — Beginning of year (6,111,744) (2,949,824) (5,372,894)
Departmental net financial position — End of year $ (6,246,182) $ (2,395,025) $ (2,949,824)
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 dollars)

  2014
Planned Results
2014 2013
Net cost of operations after government funding and transfers $ 134,438 $ (554,799) $ (2,423,070)
 
Change due to tangible capital assets
Acquisition of tangible capital assets 0 39,701 0
Amortization of tangible capital assets (351,447) (351,786) (411,993)
Transfer to other government departments (note 11) 0 (2,969) (4,340)
Total change due to tangible capital assets (351,447) (315,054) (416,333)
Net decrease in departmental net debt (217,009) (869,853) (2,839,403)
 
Departmental net debt - Beginning of year 6,894,251 3,732,330 6,571,733
Departmental net debt - End of year $6,677,242 $2,862,477 $3,732,330
The accompanying notes form an integral part of these financial statements.

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

(in dollars)

  2014 2013
Operating activities
Net cost of operations before government funding and transfers $ 188,000,030 $ 180,080,979
Non-cash items:
Amortization of tangible capital assets (351,786) (411,993)
Services provided without charge by other government departments (note 10) (6,021,428) (6,270,136)
 
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances (111,244) (13,658)
Decrease (increase) in accounts payable and accrued liabilities 23,199,123 (4,817,483)
Decrease in vacation pay and compensatory leave 208,487 65,654
Decrease in employee future benefits 772,564 2,759,620
Transfer of liabilities to other government departments (note 11) 0 55,667
Cash used in operating activities 205,695,746 171,448,650
 
Capital investing activities
Acquisition of tangible capital assets 39,701 0
Cash used in capital investing activities 39,701 0
 
Net cash provided by Government of Canada $ 205,735,447 $ 171,448,650
The accompanying notes form an integral part of these financial statements.

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

1. Authority and Objectives

Western Economic Diversification Canada (WD) was established in 1988 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. The Minister of Health, supported by the Minister of State (Western Economic Diversification), is responsible for this organization.

As the department responsible for regional development in Western Canada, WD develops and supports economic policies, programs and activities to promote economic growth throughout Western Canada.

Its western base has enabled the department to develop an 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 programs:

  • Business Development and Innovation: Western Canadian small and medium-sized enterprises (SMEs) are engaged in international business, competitive and innovative;
     
  • Community Economic Growth: Western Canadian communities have strong businesses, the capacity for socio-economic development and the necessary public infrastructure to support economic growth;
     
  • Policy, Advocacy and Coordination: Policies and programs that strengthen the western Canadian economy; and
     
  • Internal Services: Effective and efficient support for advancing the department'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 2013–2014 Report on Plans and Priorities.
     
  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.

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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

  2014 2013
(in dollars)
Net cost of operations before government funding and transfers $ 188,000,030 $ 180,080,979
 
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (351,786) (411,993)
Services provided without charge by other government departments (6,021,428) (6,270,136)
Decrease in vacation pay and compensatory leave 208,487 65,654
Decrease in employee future benefits 772,564 2,759,620
Decrease in accrued liabilities not charged to authorities 1,437,704 1,102,736
Refund of prior years expenditures 4,242,184 4,363,066
Other 835 4,557
Total items affecting net cost of operations but not affecting authorities 288,560 1,613,504
 
Adjustments for items not affecting net cost of operations, but affecting authorities:
Acquisitions of tangible capital assets 39,701 0
Unconditionally repayable transfer payments 0 2,024,000
Total items not affecting net cost of operations but affecting authorities 39,701 2,024,000
 
Current year authorities used $ 188,328,291 $ 183,718,483

(b) Authorities provided and used

  2014 2013
(in dollars)
Authorities provided:
Vote 1 - Operating expenditures $ 42,799,950 $ 47,430,024
Vote 5 - Transfer payments 147,133,550 142,147,747
Statutory amounts 5,168,835 10,184,238
 
Less:
Authorities available for future years (681) 0
Lapsed: Operating (2,646,211) (4,879,498)
Lapsed: Transfer payments (4,127,152) (11,164,028)
 
Current year authorities used $ 188,328,291 $ 183,718,483

4. Accounts payable and accrued liabilities

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

  2014 2013
(in dollars)
Accounts payable - Other government departments and agencies $ 310,140 $ 726,598
Accounts payable - External parties 60,026,392 82,690,116
Total accounts payable 60,336,532 83,416,714
 
Accrued liabilities 1,531,213 1,650,154
 
Total accounts payable and accrued liabilities $ 61,867,745 $ 85,066,868

In Canada's Economic Action Plan (EAP) 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012-2013. As a result, the Department has recorded at March 31, 2014, an obligation for termination benefits for an amount of $371,570 ($494,091 in 2012-2013) as part of accrued liabilities to reflect the estimated workforce adjustment costs.

5. Employee future benefits

(a) Pension benefits

WD 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 WD contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to EAP 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 2013-2014 expense amounts to $3,362,215 ($4,045,814 in 2012-2013). For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012-2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012-2013) the employee contributions.

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.

  2014 2013
(in dollars)
Accrued benefit obligation - Beginning of year $ 2,225,146 $ 4,984,767
Expense for the year 1,662,046 (889,553)
Benefits paid during the year (2,434,610) (1,870,068)
Accrued benefit obligation - End of year $ 1,452,582 $ 2,225,146

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6. Accounts receivable and advances

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

  2014 2013
(in dollars)
Receivables - Other government departments and agencies $ 31,811 $ 31,307
Receivables - External parties 7 111,948
Employee advances 2,400 2,950
Gross accounts receivable 34,218 146,205
Accounts receivable held on behalf of Government (7) (750)
Net accounts receivable $ 34,211 $ 145,455

7. Loans receivable

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

  2014 2013
(in dollars)
Loans receivable
Unconditionally repayable transfer payments $ 28,186,556 $ 35,320,912
Accrued interest - unconditionally repayable transfer payments 1,286 3,276,103
Less: Unamortized discount (1,235,189) (1,633,465)
Subtotal 26,952,653 36,963,550
 
Transfer payments recoverable 55 375
Subtotal 26,952,708 36,963,925
 
Less: Allowance for uncollectibility (12,524,979) (18,546,482)
 
Gross loans receivable 14,427,729 18,417,443
 
Loans receivable held on behalf of Government (14,427,729) (18,417,443)
 
Net loans receivable $ 0 $ 0

(a) Unconditionally repayable transfer payments

The unconditionally repayable transfer payment portfolio consists of 26 non-interest bearing loans issued in the years from 1997 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 $12,524,437 ($15,270,077 in 2012–2013) has been recorded.

With respect to interest charged on unconditionally repayable transfer payments, an allowance of $542 ($3,276,405 in 2012–2013) 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 2013–2014 ($0 in 2012–2013) has been recorded.

8. Tangible capital assets

Capital asset class Cost Accumulated Amortization Net Book Value
Opening Balance Acquisitions Adjustments
(1)
Disposals and Write–offs Closing Balance Opening Balance Amortization Adjustments
(1)
Disposals and Write–offs Closing Balance 2014 2013
(in dollars)
Machinery and equipment $ 145,082 $ 0 $ (13,006) $ 0 $ 132,076 $ 86,667 $ 11,782 $ (13,005) $ 0 $ 85,444 $ 46,632 $ 58,415
Computer software 1,896,593  11,690 0 22,641 1,885,642 1,388,912 253,401 0 22,641 1,619,672 265,970 507,681
Vehicles 74,683  28,011 (23,697) 0 78,997 44,635 10,136 (20,729) 0 34,042 44,955 30,048
Leasehold improvements 927,311  0 0 83,341 843,970 740,949 76,467 0 83,341 734,075 109,895 186,362
Total $ 3,043,669 $ 39,701 $ (36,703) $  105,982 $ 2,940,685 $ 2,261,163 $ 351,786 $ (33,734) $ 105,982 $ 2,473,233 $ 467,452 $ 782,506

(1) Effective July 15, 2013, WD transferred a 2009 Dodge Caravan SE with a net book value of $2,969 to Foreign Affairs, Trade and Development Canada. This transfer is included in the adjustment columns (refer to note 11 for further details on the transfer).

Adjustments also include the correction of two assets previously capitalized that did not meet the department's capitalization threshold.

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:

  2015 2016 2017 2018 2019 and
thereafter
Total
(in dollars)
Transfer Payments
Core programming $ 66,953,121 $ 11,255,907 $ 3,711,026 $ 1,500,000 $ 6,000,000 $ 89,420,054
Rick Hansen Foundation 7,990,000 7,860,000 6,660,000 5,980,000 0 28,490,000
Total $ 74,943,121 $ 19,115,907 $ 10,371,026 $ 7,480,000 $ 6,000,000 $ 117,910,054

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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:

  2014 2013
(in dollars)
Employer's contribution to the health and dental insurance plans $ 2,676,921 $ 2,884,958
Accommodation 3,298,373 3,343,507
Workers' Compensation 46,134 41,671
Total $ 6,021,428 $ 6,270,136

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, audit services provided by the Office of the Auditor General, and the email, network and data centre services provided by Shared Services Canada, 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.

  2014 2013
(in dollars)
Building Canada Fund (Communities) $ 44,387,919 $ 62,139,075
Canada Strategic Infrastructure Fund 4,099,333 5,000,797
Municipal Rural Infrastructure Fund 1,366,852 10,804,479
Total $ 49,854,104 $ 77,944,351

(c) Other transactions with related parties

  2014 2013
(in dollars)
Expenses - Other government departments and agencies $ 1,822,750 $ 1,410,598

11. Transfers from/to other government departments

  2014 2013
(in dollars)
Assets:
Tangible capital assets (net book value) (note 8)
Transferred to Foreign Affairs, Trade and Development Canada $ 2,969 $ 0
Transferred to Canada Border Services Agency 0 4,340
Total assets transferred 2,969 4,340
 
Liabilities:
Accounts payable and accrued liabilities 0 (55,667)
Total liabilities transferred 0 (55,667)
 
Adjustment to the departmental net financial position $ 2,969 $ 60,007

WD continued to administer the transferred activities on behalf of Shared Services Canada related to workplace technology software. The administered expenses amounted to $64,282 for the year. These expenses are not recorded in the financial statements.

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 and Innovation Community Economic Growth Policy, Advocacy and Coordination Internal Services 2014
Total
2013
Total
(in dollars )
Transfer payments
Non-profit organizations $ 83,603,733 $ 48,932,909 $ 1,761,647 $ 0 $ 134,298,289 $ 126,433,018
Other levels of governments within Canada 0 7,381,881 0 0 7,381,881 5,806,778
Industry (313,285) 0 0 0 (313,285) 741,428
Transfer payment conditions met 0 (4,183,821) 0 0 (4,183,821) (4,183,821)
Total transfer payments 83,290,448 52,130,969 1,761,647 0 137,183,064 128,797,403
 
Operating expenses
Salaries and employee benefits 11,224,111 5,720,813 7,499,209 14,544,041 38,988,174 40,391,738
Professional and special services 2,921,820 148,089 137,311 1,184,988 4,392,208 4,207,110
Accommodation 1,017,548 506,300 644,173 1,130,352 3,298,373 3,343,507
Rentals 133,510 5,023 16,963 1,204,394 1,359,890 1,405,971
Transportation and communication 224,616 33,285 175,133 670,597 1,103,631 1,344,490
Bad debt expense 0 517,318 0 0 517,318 3,719,522
Acquisition of machinery and equipment 17,269 5,536 9,148 438,141 470,094 292,045
Amortization of tangible capital assets 13,151 0 0 338,635 351,786 411,993
Information 67,389 10,033 8,260 235,498 321,180 254,166
Utilities, materials and supplies 31,186 7,638 14,999 134,232 188,055 261,306
Repairs and maintenance 2,040 528 3,214 21,069 26,851 42,522
Other 10,748 6,706 3,658 (16,838) 4,274 16,693
Expenses incurred on behalf of government 313,285 (517,318) 0 0 (204,033) (4,402,930)
Total operating expenses 15,976,673 6,443,951 8,512,068 19,885,109 50,817,801 51,288,133
Total expenses 99,267,121 58,574,920 10,273,715 19,885,109 188,000,865 180,085,536
 
Revenues
Amortization of discount 0 398,276 0 0 398,276 81,842
Other 270,469 82 129 471 271,151 33,355
Interest 0 4,501 0 0 4,501 1,602
Revenues earned on behalf of government (270,196) (402,777) 0 (120) (673,093) (112,242)
Total revenues 273 82 129 351 835 4,557
Net cost from continuing operations $ 99,266,848 $ 58,574,838 $ 10,273,586 $ 19,884,758 $ 188,000,030 $ 180,080,979

13. Comparative information

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