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Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Department’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Department’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 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 the Department; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.
An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.
The system of internal control over financial reporting 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. The effectiveness and adequacy of the Department’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Department's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Deputy Head of the Department.
The financial statements of the Department have not been audited.
Daniel Schnob
Chief Financial Officer
Myles J. Kirvan
Deputy Minister of Justice and Deputy Attorney General of Canada
Ottawa, Canada
August 31, 2011
Statement of Financial Position (unaudited)
As at March 31
(in thousands of dollars)
| 2011 | 2010 | |
|---|---|---|
| Financial assets | ||
| Due from the Consolidated Revenue Fund | 424,418 | 444,915 |
| Receivables and advances (Note 4) | 24,488 | 19,151 |
| Total financial assets | 448,906 | 464,066 |
| Non-financial assets | ||
| Prepaid expenses | 70 | 85 |
| Tangible capital assets (Note 5) | 43,916 | 40,282 |
| Total non-financial assets | 43,986 | 40,367 |
| Total | 492,892 | 504,433 |
| Liabilities | 2011 | 2010 |
|---|---|---|
| Accounts payable and accrued liabilities (Note 6) | 63,667 | 70,284 |
| Family Law account (Note 7) | 4,962 | 6,578 |
| Transfer payments payable | 392,331 | 400,114 |
| Vacation pay and compensatory leave | 19,157 | 18,082 |
| Employee severance benefits (Note 8) | 91,517 | 90,297 |
| Total liabilities | 571,634 | 585,355 |
| Deficit of Canada | (78,742) | (80,922) |
| Total | 492,892 | 504,433 |
Contingent liabilities (Note 9)
Contractual obligations (Note 10)
The accompanying notes form an integral part of these financial statements.
Daniel Schnob
Chief Financial Officer
Myles J. Kirvan
Deputy Minister of Justice and Deputy Attorney General of Canada
Ottawa, Canada
August 31, 2011
| 2011 | 2010 | |
|---|---|---|
| Expenses | ||
| Services to government | 497,368 | 456,876 |
| Justice policies, laws and programs | 459,126 | 455,209 |
| The Office of the Federal Ombundsman for Victims of Crime | 1,394 | 1,353 |
| Internal Services | 169,107 | 161,923 |
| Total expenses | 1,126,995 | 1,075,361 |
| Revenues | ||
| Services to government | 298,300 | 240,723 |
| Justice policies, laws and programs | 8,464 | 8,603 |
| Internal Services | 30,882 | 21,622 |
| Total revenues | 337,646 | 270,948 |
| Net cost of operations | 789,349 | 804,413 |
The accompanying notes form an integral part of these financial statements.
| 2011 | 2010 | |
|---|---|---|
| Deficit of Canada, beginning of year | (80,922) | (107,914) |
| Net cost of operations | (789,349) | (804,413) |
| Change in due from the Consolidated Revenue Fund | (20,497) | 46,898 |
| Net cash provided by Government | 726,630 | 702,045 |
| Services provided without charge by other government departments (Note 11) | 85,396 | 82,462 |
| Deficit of Canada, end of year | (78,742) | (80,922) |
The accompanying notes form an integral part of these financial statements.
| Operating activities | 2011 | 2010 |
|---|---|---|
| Net cost of operations | 789,349 | 804,413 |
| Non-cash items | ||
| Amortization of tangible capital assets (Note 5) | (11,389) | (10,700) |
| Gain on disposal and transfer of capital assets | 11 | - |
| Services provided without charge by other government departments (Note 11) | (85,396) | (82,462) |
| Variations in Statement of Financial Position | ||
| Increase (decrease) in accounts receivable and advances | 5,337 | (540) |
| (Decrease) increase in prepaid expenses | (15) | 7 |
| Decrease (increase) in liabilities | 13,721 | (22,819) |
| Cash used by operating activities | 711,618 | 687,899 |
| Capital investment activities | 2011 | 2010 |
|---|---|---|
| Acquisitions of tangible capital assets (Note 5) | 15,023 | 14,146 |
| Proceeds from disposal of tangible capital assets | (11) | - |
| Cash used by capital investment activities | 15,012 | 14,146 |
| Net cash provided by Government | 726,630 | 702,045 |
The accompanying notes form an integral part of these financial statements.
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