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Financial Statements (unaudited) for the year ended March 31, 2018

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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, 2018, 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 of Canada'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 Results 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 Financial Management.

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.

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

 

Dylan Jones, Deputy Minister
Edmonton, Canada
Date
September 4, 2018
Cathy McLean
Chief Financial Officer
Date
August 30, 2018

 


 

Statement of Financial Position (Unaudited)
As at March 31

(in dollars)

Statement of Operations and Departmental Net Financial Position (Unaudited) As at March 31
  2018 2017
Liabilities
Accounts payable and accrued liabilities (note 4) $ 70,738,935 $ 61,389,983
Vacation pay and compensatory leave 1,273,791 1,136,913
Employee future benefits (note 5) 1,216,137 1,320,844
Total gross liabilities 73,228,863 63,847,740
Total net liabilities 73,228,863 63,847,740
Financial assets
Due from Consolidated Revenue Fund 70,591,502 60,954,607
Accounts receivable and advances  (note 6) 158,326 435,387
Loans receivable (note 7) 52,112,402 52,733,424
Total gross financial assets 122,862,230 114,123,418
Financial assets held on behalf of Government
Loans receivable (note 7) (52,112,402) (52,733,424)
Total financial assets held on behalf of Government (52,112,402) (52,733,424)
Total net financial assets 70,749,828 61,389,994
Departmental net debt 2,479,035 2,457,746
Non-financial assets
Tangible capital assets (note 8) 545,092 76,786
Total non-financial assets 545,092 76,786
Departmental net financial position $ (1,933,943) $ (2,380,960)
Contractual obligations (note 9)

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

 

Dylan Jones, Deputy Minister
Edmonton, Canada
Date
September 4, 2018
Cathy McLean
Chief Financial Officer
Date
August 30, 2018

 


 

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

(in dollars)

Statement of Financial Position (Unaudited) As at March 31
  2018
Planned Results
2018 2017
Expenses
Business Development and Innovation $ 77,754,252 $ 103,844,802 $ 79,506,709
Community Economic Growth 80,512,672 99,010,813 75,006,796
Policy, Advocacy and Coordination 9,763,273 10,445,843 7,842,208
Internal Services 13,760,637 14,320,949 14,030,210
Expenses incurred on behalf of Government (912,085) (16,909,529) (10,650,154)
Total expenses 180,878,749 210,712,878 165,735,769
Revenues
Interest 54,431 69,930 44,910
Other 2,326 7,509 2,305
Amortization of discount 58,265 1,462 71,156
Revenues earned on behalf of Government (112,753) (71,457) (116,131)
Total revenues 2,269 7,444 2,240
Net cost of operations before government funding and transfers 180,876,480 210,705,434 165,733,529
Government funding and transfers
Net cash provided by Government of Canada   195,803,726 152,880,653
Change in due from Consolidated Revenue Fund   9,636,895 7,825,525
Services provided without charge by other government departments (note 10)   5,722,429 5,442,138
Transfer of the transition payments for implementing salary payments in arrears   (5,230) (2,705)
Transfer of assets and liabilities from (to) other government departments (note 11)   (5,369) (4,284)
Net cost of operations after government funding and transfers   (447,017) (407,798)
Departmental net financial position — Beginning of year   (2,380,960) (2,788,758)
Departmental net financial position — End of year   $ (1,933,943) $ (2,380,960)
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)

Statement of Change in Departmental Net Debt (Unaudited) For the Year Ended March 31
  2018 2017
Net cost of operations after government funding and transfers $   (447,017) $  (407,798)
Change due to tangible capital assets
Acquisition of tangible capital assets 507,298 30,494
Amortization of tangible capital assets (25,118) (40,309)
Proceeds from disposal of tangible capital assets (13,928) 0
Gain on disposal of tangible capital assets including adjustments 5,423 0
Transfer to other government departments (note 11) (5,369) (4,284)
Total change due to tangible capital assets 468,306 (14,099)
Net increase (decrease) in departmental net debt 21,289 (421,897)
Departmental net debt - Beginning of year 2,457,746 2,879,643
Departmental net debt - End of year $ 2,479,035 $ 2,457,746
The accompanying notes form an integral part of these financial statements.

 

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

(in dollars)

Statement of Cash Flows (Unaudited) For the Period Ended March 31
  2018 2017
Operating activities
Net cost of operations before government funding and transfers $ 210,705,434 $ 165,733,529
Non-cash items:
Amortization of tangible capital assets (25,118) (40,309)
Gain on disposal of tangible capital assets 5,423 0
Services provided without charge by other government departments (note 10) (5,722,429) (5,442,138)
Transition payments for implementing salary payments in arrears 5,230 2,705
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (277,061) 152,416
Decrease (increase) in accounts payable and accrued liabilities (9,348,952) (7,984,303)
Decrease (increase) in vacation pay and compensatory leave (136,878) 58,717
Decrease (increase) in employee future benefits 104,707 369,542
Cash used in operating activities 195,310,356 152,850,159
Capital investing activities
Acquisitions of tangible capital assets 507,298 30,494
Proceeds from disposal of tangible capital assets (13,928) 0
Cash used in capital investing activities 493,370 30,494
Net cash provided by Government of Canada $ 195,803,726 $ 152,880,653
The accompanying notes form an integral part of these financial statements.

 

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 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 Innovation, Science and Economic Development is responsible for this organization.

WD implements diverse initiatives across the West and makes strategic investments that build on regional competitive advantages.

It's western base enables the Department to foster strong partnerships with business and community organizations, research and academic institutions, Indigenous peoples, as well as provincial and municipal governments.

WD works to grow the western Canadian economy by helping to build businesses that are productive, innovative and export-oriented.

WD's strategic outcome is advanced through the following programs:


 

2. Summary of significant accounting policies

These financial statements have been prepared using the department'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 2017-2018 Departmental Plan. Planned results are not presented 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 because these amounts were not included in the 2017-2018 Departmental Plan.
     
  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
    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 recognized in the period the event giving rise to the revenues occurred.

    Revenues that are non-respendable are not available to discharge WD's liabilities. While the Deputy Head is expected to maintain accounting control, he 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 as a reduction of the entity's gross revenues.
     
  5. Expenses
    Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

    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 carrying value.
     
  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: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits 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
    Accounts and loans receivable are initially recorded at cost and where necessary, are discounted to reflect their concessionary terms. Concessionary terms of loans include cases where loans are made on a long-term, low interest or interest-free basis. Transfer payments that are unconditionally repayable are recognized as loans receivable. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts and loans receivable to amounts that approximate their net recoverable value.
     
  8. Non-financial assets
    The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 8. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.
     
  9. Contingent Liabilities
    Contingent liabilities, including the allowance for guarantees, are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

    For guarantees, an allowance is recorded when it is determined that a loss is likely and the amount of the allowance is estimated taking into consideration the nature of the guarantee, loss experience and current conditions. The allowance is reviewed on an ongoing basis and changes in the allowance are recorded as expenses in the year they become known.
     
  10. Contingent assets
    Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in the notes to the financial statements.
     
  11. Measurement uncertainty
    The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. 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 contributions. 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.
     
  12. Related party transactions
    Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

    Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:
     
    1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
       
    2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.
       

 

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

 

  2018 2017
(in dollars)
Net cost of operations before government funding and transfers $ 210,705,434 $ 165,733,529
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (25,118) (40,309)
Gain on disposal of tangible capital assets 5,423 0
Services provided without charge by other government departments (5,722,429) (5,442,138)
Decrease (increase) in vacation pay and compensatory leave (136,878) 58,717
Decrease (increase) in employee future benefits 104,707 369,542
Decrease (increase) in accrued liabilities not charged to authorities 260,525 492,508
Refund of prior years' expenditures 38,663 79,145
Other 66,818 1,809
Total items affecting net cost of operations but not affecting authorities (5,408,289) (4,480,726)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 507,298 30,494
Transition payments for implementing salary payments in arrears 5,230 2,705
Unconditionally repayable transfer payments 21,220,025 29,197,272
Increase in employee advances 38,421 0
Total items not affecting net cost of operations but affecting authorities 21,770,974 29,230,471
Current year authorities used  $ 227,068,119 $ 190,483,274

(b) Authorities provided and used

Authorities provided and used
  2018 2017
(in dollars)
Authorities provided:
Vote 1 - Operating expenditures $ 38,617,715 $ 36,720,314
Vote 5 - Transfer payments 189,690,082 163,559,924
Statutory amounts 3,755,390 3,811,508
Less:
Lapsed: Operating (1,588,456) (2,792,064)
Lapsed: Transfer payments (3,406,612) (10,816,408)
Current year authorities used $ 227,068,119 $ 190,483,274

4. Accounts payable and accrued liabilities

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

Accounts payable and accrued liabilities
  2018 2017
(in dollars)
Accounts payable - Other government departments and agencies $ 433,538 $ 98,149
Accounts payable - External parties 68,040,370 59,280,211
Total accounts payable 68,473,908 59,378,360
 
Accrued liabilities 2,265,027 2,011,623
 
Total accounts payable and accrued liabilities $ 70,738,935 $ 61,389,983

5. Employee future benefits

(a) Pension benefits

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

Both the employees and 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 Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 related 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 2017-2018 expense amounts to $2,546,560 ($2,653,917 in 2016-2017). For Group 1 members, the expense represents approximately 1.01 times (1.12 times in 2016-2017) the employee contributions and, for Group 2 members, approximately 1.00 times (1.08 times in 2016-2017) the employee contributions.

WD's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

Severance benefits provided to WD's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Severance benefits
  2018 2017
(in dollars)
Accrued benefit obligation - Beginning of year $ 1,320,844 $ 1,690,386
Expense for the year 312,711 (16,390)
Benefits paid during the year (417,418) (353,152)
Accrued benefit obligation - End of year $ 1,216,137 $ 1,320,844

6. Accounts receivable and advances

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

Accounts receivable and advances
  2018 2017
(in dollars)
Receivables - Other government departments and agencies $ 107,730 $ 433,776
Receivables - External parties 10,893 11
Employee advances 39,703 1,600
Gross and net accounts receivable $ 158,326 $ 435,387

7. Loans receivable

The following table presents details of WD's loans and unconditionally repayable contribution balances:

Loans receivable
  2018 2017
(in dollars)
Loans receivable
Unconditionally repayable contributions $ 88,846,484 $ 75,463,922
Accrued interest - unconditionally repayable transfer payments 131,565 32,923
Less: Unamortized discount (5,498,895) (2,821,068)
Subtotal 83,479,154 72,675,777
Less: Allowance for uncollectibility (31,366,752) (19,942,353)
Gross loans receivable 52,112,402 52,733,424
Loans receivable held on behalf of Government (52,112,402) (52,733,424)
Net loans receivable $ 0 $ 0

Unconditionally repayable contributions

The unconditionally repayable contributions portfolio consists of 92 non-interest bearing loans issued in the years from 1997 to 2017, 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 $31,315,854 ($19,942,253 in 2016–2017) has been recorded.

With respect to interest charged on unconditionally repayable transfer payments, an allowance of $50,898 ($100 in 2016–2017) has been recorded.


8. Tangible capital assets

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
Computer hardware 3 years
Computer software 7 years
Vehicles 5 years
Leasehold improvements Lesser of the remaining term of lease or useful life of the improvement
Assets under construction Once in service, in accordance with asset type

Assets under construction are recorded in the applicable asset class in the year they are put into service and are not amortized until they are put into service.

Tangible capital assets (in dollars)
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 2018 2017
(in dollars)
Machinery and equipment $ 79,943 $ 12,737 $ (10,739) $ 0 $ 81,941 $ 59,191 $ 2,354 $ (5,369) $ 0 $ 56,176 $ 25,765 $ 20,752
Computer hardware 30,494 0 0 0 30,494 2,541 10,165 0 0 12,706 17,788 27,953
Computer software 1,885,642 0 0 0 1,885,642 1,879,936 1,670 0 0 1,881,606 4,036 5,706
Vehicles 24,299 0 0 24,299 0 14,579 1,215 0 15,794 0 0 9,720
Leasehold improvements 288,927 0 0 26,668 262,259 276,272 9,714 (1) 26,668 259,317 2,942 12,655
Assets under construction 0 494,561 0 0 494,561 0 0 0 0 0 494,561 0
Total $ 2,309,305 $ 507,298 $ (10,739) $ 50,967 $ 2,754,897 $ 2,232,519 $ 25,118 $ (5,370) $ 42,462 $ 2,209,805 $ 545,092 $ 76,786

(1) Effective April 2017, WD transferred a boardroom table with a net book value of $5,369 to Transport Canada. This transfer is included with other minor rounding adjustments in the adjustment columns (refer to note 11 for further detail on the transfer).


9. Contractual obligations

The nature of WD's activities may 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:

 

Contractual obligations
  2019 2020 2021 2022 2023 and thereafter Total
(in dollars)
Transfer payments
Western Diversification Program $ 58,569,257 $ 21,148,692 $ 6,118,989 $ 2,660,720 $ 0 $ 88,497,658
Community Futures Program 27,796,822 27,209,603 27,209,603 0 0 82,216,028
Women's Enterprise Initiative 3,900,000 3,900,000 3,900,000 0 0 11,700,000
Total $ 90,266,079 $ 52,258,295 $ 37,228,592 $ 2,660,720 $ 0  $ 182,413,686

10. Related party transactions

WD is related as a result of common ownership to all government departments, agencies and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

WD enters into transactions with these entities in the normal course of business and on normal trade terms.

(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 at the carrying value in WD's Statement of Operations and Departmental Net Financial Position as follows:

Common services provided without charge by other government departments
  2018 2017
(in dollars)
Employer's contribution to the health and dental insurance plans $ 2,609,606 $ 2,364,627
Accommodation 3,071,670 3,028,472
Workers' Compensation 41,153 49,039
Total $ 5,722,429 $ 5,442,138

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 Services and Procurement 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

Under an interdepartmental letter of agreement signed with the Department of Indian Affairs and Northern Development (DIAND) on June 22, 2017, WD administers Strategic Partnerships Initiative for Aboriginal Participation in West Coast Energy. During the year, WD incurred expenses of $2,023,731 ($2,042,100 in 2016-17) on behalf of DIAND. These expenses are reflected in the financial statements of DIAND and are not recorded in these financial statements.

Administration of programs on behalf of other government departments
  2018 2017
(in dollars)
Strategic Partnerships Initiative $ 2,023,731 $ 2,042,100
Building Canada Fund (Communities)  0  9,340,723
Total $ 2,023,731 $ 11,382,823

(c) Other transactions with other government departments and agencies

Other transactions with related parties
  2018 2017
(in dollars)
Accounts receivable $ 107,730 $ 433,776
Accounts payable 433,538 98,149
Expenses  1,422,048  1,613,276

Expenses disclosed in (c) exclude common services provided without charge, which are already disclosed in (a).


11. Transfers from/to other government departments

Transfers from/to other government departments
  2018 2017
(in dollars)
Assets:
Tangible capital assets (net book value) (note 8)
Transferred to Transport Canada $ 5,369 $ 0
Transferred to Correctional Services Canada 0 4,284
Total assets transferred 5,369 4,284
Adjustment to the departmental net financial position $ 5,369 $ 4,284

12. Segmented information

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

Segmented information
  Business Development and Innovation Community Economic Growth Policy, Advocacy and Coordination Internal Services 2018 Total 2017 Total
(in dollars)
Transfer payments
Non-profit organizations $ 65,294,189 $ 53,350,223 $ 1,412,144 $ 0 $ 120,056,556 $ 104,147,034
Other levels of governments within Canada 2,090,522 32,177,457 0 0 34,267,979 18,967,760
Industry 5,575,606 7,315,340 0 0 12,890,946 1,906,945
Individuals 0 151,085 0 0 151,085 0
Total transfer payments 72,960,317 92,994,105 1,412,144 0 167,366,566 125,021,739
Operating expenses
Salaries and employee benefits 11,699,471 4,928,948 7,651,317 9,909,788 34,189,524 31,049,121
Bad debt expense 14,191,629 156,827 0 0 14,348,456 8,743,209
Professional and special services 3,653,867 388,389 274,851 1,110,967 5,428,074 4,915,855
Accommodation 1,060,340 435,563 659,795 915,972 3,071,670 3,028,472
Transportation and communication 195,740 80,410 360,545 471,576 1,108,271 1,305,715
Acquisition of machinery and equipment 8,079 3,245 6,514 807,270 825,108 670,353
Rentals 29,538 5,581 30,112 532,203 597,434 990,336
Repairs and maintenance 4,275 1,745 2,659 363,405 372,084 276,116
Information 16,680 5,937 16,621 144,603 183,841 180,976
Utilities, materials and supplies 10,660 4,228 22,445 94,956 132,289 134,210
Amortization of tangible capital assets 0 0 0 25,118 25,118 40,309
Other 14,206 5,835 8,840 (54,909) (26,028) 29,512
Expenses incurred on behalf of Government (16,752,702) (156,827) 0 0 (16,909,529) (10,650,154)
Total operating expenses 14,131,783 5,859,881 9,033,699 14,320,949 43,346,312 40,714,030
Total expenses 87,092,100 98,853,986 10,445,843 14,320,949 210,712,878 165,735,769
Revenues
Interest 7,131 62,799 0 0 69,930 44,910
Other 714 277 428 6,090 7,509 2,305
Amortization of discount 0 1,462 0 0 1,462 71,156
Revenues earned on behalf of Government (7,156) (64,261) 0 (40) (71,457) (116,131)
Total revenues 689 277 428 6,050 7,444 2,240
Net cost from contining operations $ 87,091,411 $ 98,853,709 $ 10,445,415 $ 14,314,899 $ 210,705,434 $ 165,733,529
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