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Financial Statements (unaudited) for the year ended March 31, 2015

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 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 performed in 2013-2014 by the Office of the Comptroller General of Canada (OCG). The Audit Report and related Management Action Plan are posted on the departmental web site at http://www.wd-deo.gc.ca/eng/18737.asp and http://www.wd-deo.gc.ca/eng/18738.asp.

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

 

Daphne Meredith, Deputy Minister

Edmonton, Canada

 
 
Date
 
Cathy Matthews,
Chief Financial Officer
 
 
Date
 

 


 

Statement of Financial Position (Unaudited)
As at March 31

(in dollars)

  2015 2014
Liabilities
Accounts payable and accrued liabilities (note 4) $ 69,985,935 $ 61,867,745
Vacation pay and compensatory leave 1,321,515 1,409,895
Employee future benefits (note 5) 1,855,569 1,452,582
Total gross liabilities 73,163,019 64,730,222
 
Total net liabilities 73,163,019 64,730,222
 
Financial assets
Due from Consolidated Revenue Fund 69,983,622 61,833,534
Accounts receivable and advances  (note 6) 5,895 34,218
Loans receivable (note 7) 19,253,531 14,427,729
Total gross financial assets 89,243,048 76,295,481
 
Financial assets held on behalf of Government
Accounts receivable and advances (note 6) 0 (7)
Loans receivable (note 7) (19,253,531) (14,427,729)
Total financial assets held on behalf of Government (19,253,531) (14,427,736)
 
Total net financial assets 69,989,517 61,867,745
 
Departmental net debt 3,173,502 2,862,477
 
Non-financial assets
Tangible capital assets (note 8) 228,463 467,452
Total non-financial assets 228,463 467,452
 
Departmental net financial position $ (2,945,039) $ (2,395,025)
Contractual obligations (note 9)

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

 

Daphne Meredith, Deputy Minister
Edmonton, Canada


 
 
Date
 
Cathy Matthews,
Chief Financial Officer
 
 
Date
 

 


 

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Statement of Operations and Departmental Net Financial Position (Unaudited)
As at March 31

(in dollars)

  2015
Planned
Results
2015 2014
Expenses
Business Development and Innovation $ 92,236,524 $ 98,881,388 $ 98,953,836
Community Economic Growth 29,632,511 28,944,563 59,092,238
Policy, Advocacy and Coordination 11,740,725 9,674,552 10,273,715
Internal Services 15,006,323 15,216,891 19,885,109
Expenses incurred on behalf of Government 376,571 (1,503,300) (204,033)
Total expenses 148,992,654 151,214,094 188,000,865
 
Revenues
Amortization of discount 381,833 871,108 398,276
Interest 7,300 34,929 4,501
Other 36,024 708 271,151
Revenues earned on behalf of Government (422,086) (906,156) (673,093)
Total revenues 3,071 589 835
 
Net cost of operations before government funding and transfers 148,989,583 151,213,505 188,000,030
 
Government funding and transfers
Net cash provided by Government 158,303,900 137,964,702 205,735,447
Change in due from Consolidated Revenue Fund (14,870,054) 8,150,088 (23,199,077)
Services provided without charge by other government departments (note 10) 5,427,086 5,520,716 6,021,428
Transfer of accounts receivable to Public Works and Government Services Canada (note 11) 0 (970,664) 0
Transfer of assets and liabilities from (to) other government departments (note 12) 0 (1,351) (2,969)
Total government funding and transfers 148,860,932 150,663,491 188,554,829
 
Net cost of operations after government funding and transfers 128,651 550,014 (554,799)
 
Departmental net financial position — Beginning of year (2,462,123) (2,395,025) (2,949,824)
Departmental net financial position — End of year $ (2,590,774) $ (2,945,039) $ (2,395,025)
Segmented information (note 13)

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)

  2015
Planned
Results
2015 2014
Net cost of operations after government funding and transfers $ 128,651 $ 550,014 $ (554,799)
 
Change due to tangible capital assets
Acquisition of tangible capital assets 0 24,139 39,701
Amortization of tangible capital assets (246,816) (242,348) (351,786)
(Loss) on disposal of tangible capital assets 0 (19,429) 0
Transfer to other government departments (note 12) 0 (1,351) (2,969)
Total change due to tangible capital assets (246,816) (238,989) (315,054)
 
Net increase (decrease) in departmental net debt (118,165) 311,025 (869,853)
 
Departmental net debt - Beginning of year 2,929,576 2,862,477 3,732,330
Departmental net debt - End of year $ 2,811,411 $ 3,173,502 $ 2,862,477
The accompanying notes form an integral part of these financial statements.

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

(in dollars)

  2015 2014
Operating activities
Net cost of operations before government funding and transfers $ 151,213,505 $ 188,000,030
Non-cash items:
Amortization of tangible capital assets (242,348) (351,786)
(Loss) on disposal of tangible capital assets (19,429) 0
Services provided without charge (note 10) (5,520,716) (6,021,428)
 
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances (28,316) (111,244)
Decrease (increase) in accounts payable and accrued liabilities (8,118,190) 23,199,123
Decrease in vacation pay and compensatory leave 88,380 208,487
Decrease (increase) in employee future benefits (402,987) 772,564
Transition payments for implementing salary payments in arrears (note 11) 970,664 0
Cash used in operating activities 137,940,563 205,695,746
 
Capital investing activities
Acquisition of tangible capital assets 24,139 39,701
Cash used in capital investing activities 24,139 39,701
 
Net cash provided by Government of Canada $ 137,964,702 $ 205,735,447
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 in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2014-2015 Report on Plans and Priorities. The planned results amounts in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt were prepared for internal management purposes and have not been previously published.
     
  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 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. 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
     
    • These are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts and loans receivable where recovery is considered uncertain.
       
    1. Unconditionally repayable transfer payments: Transfer payments that are unconditionally repayable are recognized as loans receivable because they must be repaid without condition, under various repayment terms. The loans have significant concessionary terms as they include a no-interest clause, and are discounted so they can be recorded at their estimated present value.
       
    2. Transfer payments recoverable – Conditionally repayable transfer payments: Transfer payments that are conditionally repayable are reclassified as accounts receivable when conditions specified in the agreement come into effect, or in the event of default.
       
  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

  2015 2014
(in dollars)
Net cost of operations before government funding and transfers $ 151,213,505 $ 180,080,979
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (242,348) (351,786)
Services provided without charge by other government departments (5,520,716) (6,021,428)
Decrease in vacation pay and compensatory leave 88,380 208,487
Decrease (increase) in employee future benefits (402,987) 772,564
Decrease in accrued liabilities not charged to authorities 1,777,917 1,437,704
Refund of prior years expenditures 4,748,771 4,242,184
Other (15,258) 835
Total items affecting net cost of operations but not affecting authorities 433,759 288,560
 
Adjustments for items not affecting net cost of operations, but affecting authorities:
Acquisitions of tangible capital assets 24,139 39,701
Transition payments for implementing salary payments in arrears 970,664 0
Unconditionally repayable transfer payments 9,360,469 0
Total items not affecting net cost of operations but affecting authorities 10,355,272 39,701
 
Current year authorities used $ 162,002,536 $ 188,328,291

(b) Accounts payable and accrued liabilities

  2015 2014
(in dollars)
Authorities provided:
Vote 1 - Operating expenditures $ 39,107,069 $ 42,799,950
Vote 5 - Transfer payments 122,232,026 147,133,550
Statutory amounts 4,248,406 5,168,835
 
Less:
Authorities available for future years 0 (681)
Lapsed: Operating (3,050,614) (2,646,211)
Lapsed: Transfer payments (534,351) (4,127,152)
 
Current year authorities used $ 162,002,536 $ 188,328,291

4. Accounts payable and accrued liabilities

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

  2015 2014
(in dollars)
Accounts payable - Other government departments and agencies $ 215,039 $ 310,140
Accounts payable - External parties 67,706,090 60,026,392
Total accounts payable 67,921,129 60,336,532
 
Accrued liabilities 2,064,806 1,531,213
 
Total accounts payable and accrued liabilities $ 69,985,935 $ 61,867,745

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, 2015, an obligation for termination benefits for an amount of $42,191 ($371,570 in 2013-2014) 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 2014-2015 expense amounts to $2,899,376 ($3,362,215 in 2013-2014).  For Group 1 members, the expense represents approximately 1.41 times (1.6 times in 2013-2014) the employee contributions and, for Group 2 members, approximately 1.39 times (1.5 times in 2013-2014) 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.

  2015 2014
(in dollars)
Accrued benefit obligation - Beginning of year $ 1,452,582 $ 2,225,146
Expense for the year 755,974 1,662,046
Benefits paid during the year (352,987) (2,434,610)
Accrued benefit obligation - End of year $ 1,855,569 $ 1,452,582

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6. Accounts receivable and advances

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

  2015 2014
(in dollars)
Receivables - Other government departments and agencies $ 413 $ 31,811
Receivables - External parties 3,582 7
Employee advances 1,900 2,400
Gross accounts receivable 5,895 34,218
Accounts receivable held on behalf of Government 0 (7)
Net accounts receivable $ 5,895 $ 34,211

7. Loans receivable

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

  2015 2014
(in dollars)
Loans receivable
Unconditionally repayable transfer payments $ 30,490,742 $ 28,186,556
Accrued interest - unconditionally repayable transfer payments 7,375 1,286
Less: Unamortized discount (695,620) (1,235,189)
Subtotal 29,802,497 26,952,653
 
Transfer payments recoverable - Conditionally repayable transfer payments 0 55
Subtotal 29,802,497 26,952,708
 
Less: Allowance for uncollectibility (10,548,966) (12,524,979)
 
Gross loans receivable 19,253,531 14,427,729
 
Loans receivable held on behalf of Government (19,253,531) (14,427,729)
 
Net loans receivable $ 0 $ 0

(a) Unconditionally repayable transfer payments

The unconditionally repayable transfer payment portfolio consists of 53 non-interest bearing loans issued in the years from 1997 to 2015, 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 $10,548,866 ($12,524,437 in 2013–2014) has been recorded.

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

(b) Transfer payments recoverable – Conditionally repayable transfer payments

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 2014–2015 ($0 in 2013–2014) 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 2015 2014
(in dollars)
Machinery and equipment $ 132 076 $ 0 $ 0 $ 50,130 $ 81,946 $ 85,444 $ 4,889 $ 0 $ 30,701 $ 59,632 $ 22,314 $ 46,632
Computer software 1,885,642 0 0 0 1,885,642 1,619,672 161,034 0 0 1,780,706 104,936 265,970
Vehicles 78,997 24,139 (22,568) 0 80,568 34,042 11,313 (21,217) 0 24,138 56,430 44,955
Leasehold improvements 843 970 0 0 0 843,970 734,075 65,112 0 0 799,187 44,783 109,895
Total $ 2,940,685 $ 24,139 $ (22,568) $ 50,130 $ 2,892,126 $ 2,473,233 $ 242 348 $ (21,217) $ 30,701 $ 2,663,663 $ 228,463 $ 467,452

(1) During November 2014, WD transferred to Natural Resources Canada and Employment and Social Development Canada, and transferred from Treasury Board of Canada Secretariat, three vehicles with a total net book value of $1,351. These transfers are included in the adjustments column (refer to note 12 for further details).

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:

  2016 2017 2018 2019 2020 and thereafter Total
(in dollars)
Transfer payments
Core Programming $ 88,266,747 $ 52,356,373 $ 34,746,952 $ 1,699,931 $ 4,833,226 $ 181,903,229
Rick Hansen Foundation 7,135,000 6,660,000 5,980,000 0 0 19,775,000
Total $ 95,401,747 $ 59,016,373 $ 40,726,952 $ 1,699,931 $ 4,833,226 $ 201,678,229

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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:

  2015 2014
(in dollars)
Employer's contribution to the health and dental insurance plans $ 2,304,565 $ 2,676,921
Accommodation 3,168,401 3,298,373
Workers' Compensation 47,750 46,134
Total $ 5,520,716 $ 6,021,428

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 Aboriginal Affairs and Northern Development Canada, and not those of WD.

  2015 2014
(in dollars)
Building Canada Fund (Communities) $ 23,907,933 $ 44,387,919
Canada Strategic Infrastructure Fund 1,712,743 4,099,333
Strategic Partnerships Initiative 1,441,859 0
Municipal Rural Infrastructure Fund 0 1,366,852
Total $ 27,062,535 $ 49,854,104

(c) Other transactions with related parties

  2015 2014
(in dollars)
Expenses - Other government departments and agencies $ 1,450,252 $ 1,822,750

11. Transfer of accounts receivable to Public Works and Government Services Canada

  2015 2014
(in dollars)
Accounts receivable
Transferred to Public Works and Government Services Canada $ 970,664 $ 0
Adjustment to the departmental net financial position $ 970 664 $ 0

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, along with the creation of an interim account receivable. Prior to year end, this interim account receivable was transferred to Public Works and Government Services Canada, who is responsible for the administration of the Government pay system.

12. Transfers from/to other government departments

  2015 2014
(in dollars)
Assets:
Tangible capital assets (net book value) (note 8)
Transferred from Treasury Board of Canada Secretariat $ (21,059) $ 0
Transferred to Natural Resources Canada 22,409 0
Transferred to Employment and Social Development Canada 1 0
Transferred to Foreign Affairs, Trade and Development Canada 0 2,969
Total assets transferred 1,351 2,969
 
Adjustment to the departmental net financial position $ 1,351 $ 2,969

13. 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 2015
Total
2014
Total
(in dollars)
Transfer payments
Non-profit organizations $ 81,042,232 $ 27,593,706 $ 1,524,413 $ 0 $ 110,160,351 $ 134,298,289
Industry 502,206 0 0 0 502,206 (313,285)
Other levels of governments within Canada 0 (21,728) 0 0 (21,728) 7,381,881
Transfer payment conditions met 0 (4,183,821) 0 0 (4,183,821) (4,381,821)
Total transfer payments 81,544,438 23,388,157 1,524,413 0 106,457,008 137,183,064
 
Operating expenses
Salaries and employee benefits 12,324,201 3,844,901 7,164,692 10,281,518 33,615,312 38,988,174
Professional and special services 3,517,437 230,625 74,063 1,203,844 5,025,969 4,392,208
Accommodation 1,235,043 372,287 623,858 937,213 3,168,401 3,298,373
Rentals 32,965 6,391 20,355 1,202,487 1,262,198 1,359,890
Bad debt expense 0 1,001,094 0 0 1,001,094 517,318
Transportation and communication 178,330 86,353 225,264 480,305 970,252 1,103,631
Acquisition of machinery and equipment 8,659 2,596 5,398 606,821 623,474 470,094
Amortization of tangible capital asset 0 0 0 242,348 242,348 351,786
Information 22,743 5,009 10,712 173,506 211,970 321,180
Utilities, materials and supplies 19,422 5,518 11,884 113,320 150,144 188,055
Repairs and maintenance 5,507 1,829 5,096 11,172 23,604 26,851
Other (7,357) (197) 8,817 (35,643) (34,380) 4,274
Expenses incurred on behalf of government (502,206) (1,001,094) 0 0 (1,503,300) (204,033)
Total operating expenses 16,834,744 4,555,312 8,150,139 15,216 ,891 44,757,086 50,817,801
Total expenses 98,379,182 27,943,469 9,674,552 15,216,891 151,214,094 188,000,865
 
Revenues
Amortization of discount 0 871,108 0 0 871,108 398,276
Interest 14,606 20,323 0 0 34,929 4,501
Other 230 69 116 293 708 271 151
Revenues earned on behalf of government (14,606) (891,431) 0 (119) (906,156) (673,093)
Total revenues 230 69 116 174 589 835
Net cost from continuing operations $ 98,378,952 $ 27,943,400 $ 9,674,436 $ 15,216,717 $ 151,213,505 $ 188,000,030

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14. Subsequent events

Additional multi-year agreements have been entered into to make future payments to carry out WD's transfer payment programs. This amount is estimated at $117,765,783 for core programs and the Canada 150 Community Infrastructure Program. This is in addition to the contractual obligations disclosed in Note 9.

15. Comparative information

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