Canadian Polar Commission Annual Report, 2010-2011 - Financial Statements
Canadian Polar Commission Annual Report, 2010-2011
Financial Statements
- Statement of Management Responsibility
- Independent Auditor's Report
- Statement of Financial Position
- Statement of Operations
- Statement of Equity of Canada
- Statement of Cash Flow
- Notes to the Financial Statements
- Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting
Return to Table of Contents: Annual Report, 2010-2011
Statement of Management Responsibility
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 the Commission's 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 Commission's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Commission's Annual Report and its 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 Commission; 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-ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The Commission has instituted an Internal Audit Committee to assist the Board of Directors to fulfill its oversight responsibilities in the areas of standards of integrity and behaviour, reporting of financial information and the internal control systems of the Commission.
The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the Commission which does not include an audit opinion on the annual assessment of the effectiveness of the Commission's internal controls over financial reporting.
Approved by:
Bernard Funston, Chairperson
Steven C. Bigras, Executive Director
Ottawa, Canada
December 22, 2011
Independent Auditor's Report
To the Board of Directors of the Canadian Polar Commission and the Minister of Aboriginal Affairs and Northern Development
Report on the Financial Statements
I have audited the accompanying financial statements of the Canadian Polar Commission, which comprise the statement of financial position as at 31 March 2011, and the statement of operations, statement of equity of Canada and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Canadian Polar Commission as at 31 March 2011, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.
Report on Other Legal and Regulatory Requirements
In my opinion, the transactions of the Canadian Polar Commission that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Canadian Polar Commission Act with the exception that the Canadian Polar Commission did not maintain at least one office at a place north of sixty degrees north latitude as required by section 14(2). Note 2 (b) to these financial statements describes that the Canadian Polar Commission closed its last northern office in January 2000 in order to contain costs.
John Apt, CA
Principal
for the Auditor General of Canada
22 December 2011
Ottawa, Canada
Statement of Financial Position
as at March 31
| Assets | 2011 | 2010 Restated (note 13) |
|---|---|---|
| Financial assets | ||
| Due from the Consolidated Revenue Fund | $88,694 | $75,324 |
| Accounts receivable and advances (note 5) | 12,696 | 7,772 |
| Total financial assets | 101,390 | 83,096 |
| Non-financial assets | ||
| Pre-paid expenses | 9,498 | 3,498 |
| Tangible capital assets (note 6) | 68,545 | 91,529 |
| Total non-financial assets | 78,043 | 95,027 |
| Total | $179,433 | $178,123 |
| Liabilities and Equities of Canada | 2011 | 2010 Restated (note 13) |
|---|---|---|
| Accounts payable and accrued liabilities (note 7) | $97,553 | $84,116 |
| Vacation pay and compensatory leave | 18,232 | 15,152 |
| Employee severance benefits (note 8/note 13) | 283,301 | 269,148 |
| Total liabilities | 399,086 | 368,416 |
| Equity of Canada | (219,653) | (190,293) |
| Total | $179,433 | $178,123 |
Contractual obligations (note 9)
The accompanying notes form an integral part of these financial statements.
Approved by:
Bernard Funston, Chairperson
Steven C. Bigras, Executive Director
Ottawa, Canada
December 22, 2011
Statement of Operations
| For the year ended March 31 | 2011 | 2010 Restated (note 13) |
|---|---|---|
| Expenses | ||
| Program expenses (note 11) | $1,175,627 | $1,077,894 |
| International Polar Year Early Career Researcher Symposium | - | 43,574 |
| Total expenses | 1,175,627 | 1,121,468 |
| Revenues | ||
| Contributions to International Polar Year Early Career Researcher Symposium | - | 43,574 |
| Total revenues | - | 43,574 |
| Net Cost of Operations | $1,175,627 | $1,077,894 |
Segmented information (note 11)
The accompanying notes form an integral part of these financial statements.
Statement of Equity of Canada
| For the year ended March 31 | 2011 | 2010 Restated (Note 13) |
|---|---|---|
| Equity of Canada, beginning of year | $(190,293) | $(203,930) |
| Net cost of operations | (1,175,627) | (1,077,894) |
| Net cash provided by government | 996,812 | 988,403 |
| Services received without charge from other government departments and agencies (note 10) | 136,085 | 123,275 |
| Change in due from the Consolidated Revenue Fund | 13,370 | (20,147) |
| Equity of Canada, end of year | $(219,653) | $(190,293) |
The accompanying notes form an integral part of these financial statements.
Statement of Cash Flow
| For the year ended March 31 | 2011 | 2010 Restated (Note 13) |
|---|---|---|
| Operating Activities | ||
| Net cost of operations | $1,175,627 | $1,077,894 |
| Non-cash items | ||
| Services provided without charge by other government departments (note 10) | (136,085) | (123,275) |
| Amortization of tangible capital assets | (30,815) | (23,936) |
| Variations in statement of financial position | ||
| Increase (descrease) in accounts receivable and advances | 4,924 | (1,221) |
| Increase (decrease) in prepaid expenses | 6,000 | 2,414 |
| Decrease (increase) in liabilities | (13,437) | 18,104 |
| Decrease (increase) in vacation pay | (3,080) | 4,020 |
| Decrease (increase) in employee future benefits | (14,153) | 12,942 |
| Cash used by operating activities | 988,981 | 941,058 |
| Capital Investment Activities | ||
| Acquisition of tangible capital assets | 7,831 | 47,345 |
| Cash used by capital investment activities | 7,831 | 47,345 |
| Net Cash Provided by Government of Canada | $(996,812) | $(988,403) |
The accompanying notes form an integral part of these financial statements.
Notes to the Financial Statements
For the year ended March 31, 2011
- Authority and Objectives
- Governing Body and Limited Funds
- Summary of Significant Accounting Policies
- Parliamentary Appropriations
- Accounts Receivable and Advances
- Tangible Capital Assets
- Accounts Payable and Accrued Liabilities
- Employee Benefits
- Contractual Obligations
- Related Party Transactions
- Segmented Information
- Net Debt Indicator
- Restatement of Prior Year Employee Severance Benefits
1. Authority and Objectives
The Canadian Polar Commission was established on February 1, 1991 by the Canadian Polar Commission Act and is a departmental corporation named in Schedule II of the Financial Administration Act. The Commission commenced its operations on September 9, 1991. The Commission was established to promote and encourage the development and dissemination of knowledge of the polar regions; to monitor the state of polar knowledge in Canada and elsewhere; to enhance Canada's international polar profile; and to provide information about research relating to polar regions to Canadians and to Canadian organizations, institutions and associations. The Commission's operating expenses are funded by a budgetary lapsing authority.
The Canadian Polar Commission has two program activities: to promote, develop and disseminate polar knowledge and to provide the necessary internal services to support the delivery of its mandate.
2. Governing Body and Limited Funds
(a) Governing Body
According to the Canadian Polar Commission Act, the activities of the Commission shall be managed by a Board of Directors, including a Chairperson and two Vice-Chairpersons who will be appointed by the Governor in Council, on the recommendation of the Minister. In November, 2010, the appointments of the Board of Directors, including the Chairperson were made. The appointments of the previous Board of Directors ended in October 2008.
(b) Limited Funds
The Canadian Polar Commission's budgetary appropriations for 2010-11 were $984,294 (excluding employee benefits) (2009-10 $981,942). In 1991, when it was first created, the Commission's funding level was set at $1,179,317 (excluding employee benefits). In successive years, its budgetary appropriations have been reduced over time.
The Canadian Polar Commission Act requires the Commission to maintain one office in the National Capital Region and at least one office at a place north of sixty degrees north latitude. Notwithstanding this statutory requirement, in order to contain costs, the Commission closed its last northern office in January 2000.
The current funding situation threatens the Commission's ability to deliver on its legislated mandate.
3. Summary of Significant Accounting Policies
The financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences form Canadian generally accepted accounting principles except as disclosed in note 12 - Net Debt Indicator.
Significant accounting policies are as follows.
(a) Parliamentary Appropriations
The Commission is financed by the Government of Canada through Parliamentary appropriations. Financial reporting of appropriations provided to the Commission do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 4 provides a reconciliation between the bases of reporting.
(b) Net Cash Provided by Government
The Commission operates within the Consolidated Revenue Fund (CRF) which is administered by the Receiver General for Canada. All cash received by the Commission is deposited to the CRF and all cash disbursements made by the Commission 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.
(c) Due from the Consolidated Revenue Fund
Amounts Due from/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 the Commission is entitled to draw from the CRF without further appropriations to discharge its liabilities.
(d) Revenues
Revenues are recognized in the year in which the underlying transaction or event occurred that gave rise to the revenue.
Revenues for contributions to the International Polar Year and consultations are recognized at the same time as the related expenses are incurred.
(e) Expenses
Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
Services received without charge from other government departments and agencies are recorded as operating expenses at their estimated cost.
(f) Employee Future Benefits
i. Pension benefits:
Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Commission's contributions to the Plan are charged to expenses in the year incurred and represent its total obligation to the Plan. Current legislation does not require the Commission to make contributions for any actuarial deficiencies of the Plan.
ii. Severance benefits:
Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using specific contractual terms of employment as well as information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
(g) Accounts Receivable
Accounts receivable are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.
(h) Tangible Capital Assets
All tangible capital assets having an initial cost of $1,000 or more are recorded at their acquisition cost. The Commission does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value. 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 |
|---|---|
| Office equipment | 5 years |
| Informatics hardware | 5 years |
| Software | 5 years |
| Furniture and fixtures | 5 years |
(i) 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 of tangible capital assets. 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.
4. Parliamentary Appropriations
The Commission receives its funding through annual Parliamentary appropriations. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Commission 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 Appropriations Used
| 2011 | 2010 Restated (Note 13) |
|
|---|---|---|
| Net cost of operations | $1,175,627 | $1,077,894 |
| Adjustments for items affecting net cost of operations but not affecting appropriations | ||
| Services provided without charge | (136,085) | (123,275 |
| Amortization of tangible capital assets | (30,815) | (23,936) |
| Change in employee severance benefits | (14,153) | (12,942) |
| Change in prepaid expenses | 7,854 | - |
| Change in vacation pay | (3,080) | 4,020 |
| Other | 8,134 | (906) |
| $1,007,482 | $920,855 | |
| Adjustments for items not affecting net cost of operations but affecting appropriations | ||
| Acquisition of tangible capital assets | 7,831 | 47,345 |
| Prepaid expenses | 1,333 | 2,414 |
| Current year appropriations used | $1,016,646 | $970,614 |
(b) Appropriations Provided and Used
| 2011 | 2010 | |
|---|---|---|
| Vote 40-Operating expenditures | $938,944 | $917,000 |
| Transfer from Treasury Board Votes for program expenditures | 45,350 | 64,942 |
| subtotal | 984,294 | 981,942 |
| Statutory amounts | 70,143 | 65,172 |
| subtotal | 1,054,437 | 1,047,114 |
| Less: lapsed operating | (37,791) | (76,500) |
| Current year appropriations used | $1,016,646 | $970,614 |
5. Accounts Receivable and Advances
The following table presents details of accounts receivable and advances.
| 2011 | 2010 | |
|---|---|---|
| Receivables from other Federal Government departments and agencies | $12,096 | $7,172 |
| Petty cash advance | 600 | 600 |
| Total | $12,696 | $7,772 |
6. Tangible Capital Assets
Cost
| Capital asset class | Opening balance | Acquisitions | Disposals and write-offs | Closing balance |
|---|---|---|---|---|
| Office equipment | $4,272 | - | - | 4,272 |
| Informatics hardware | 104,006 | 3,281 | - | 107,287 |
| Software | 37,366 | 4,550 | - | 41,916 |
| Furniture and fixtures | 5,339 | - | - | 5,339 |
| Total | $150,983 | 7,831 | - | 158,814 |
Accumulated amortization
| Capital asset class | Opening balance | Amortization | Disposals and write-offs | Closing balance |
|---|---|---|---|---|
| Office equipment | $1,263 | 854 | - | 2,117 |
| Informatics hardware | 54,019 | 20,965 | - | 74,984 |
| Software | 3,104 | 7,928 | - | 11,032 |
| Furniture and fixtures | 1,068 | 1,068 | - | 2,136 |
| Total | $59,454 | 30,815 | - | 90,269 |
Net book value
| Capital asset class | 2011 | 2010 |
|---|---|---|
| Office equipment | $2,155 | 3,009 |
| Informatics hardware | 32,303 | 49,987 |
| Software | 30,884 | 34,262 |
| Furniture and fixtures | 3,203 | 4,271 |
| Total | $68,545 | 91,529 |
Amortization expense for the year ended March 31, 2011 is $30,815 (2010-$23,936).
7. Accounts Payable and Accrued Liabilities
The following table presents details of accounts payable and accrued liabilities
| 2011 | 2010 | |
|---|---|---|
| Accounts payable to external suppliers | $38,747 | $72,289 |
| Accrued liabilities | 58,806 | 11,827 |
| Total | $97,553 | $84,116 |
8. Employee Benefits
(a) Pension Benefits
The Commission's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Cananda. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year o pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plans benefits and they are indexed to inflation.
Both the employees and the Commission contribute to the cost of the Plan. The 2010-11 expense amounts to $49,240 (2009-10 - $47,054), which represents approximately 1.9 times (1.9 times in 2009-10) the contributions by employees.
| 2011 | 2010 | |
|---|---|---|
| Commission's contributions | $49,240 | $47,054 |
| Employees' contributions | 25,916 | 24,765 |
The Commission'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
The Commission provides severance benefits to its employees based on eligibility, years of service and final salary and other related contractual terms of employment. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Benefits paid are reimbursed in the year of payment in the form of transfers from Treasury Board Vote 30 to the Commission's appropriations.
Information about the severance benefits, measured as at March 31, is as follows:
| 2011 | 2010 Restated (Note 13) |
|
|---|---|---|
| Accrued benefit obligation, beginning of the year | $269,148 | $256,206 |
| Expense for the year | $14,153 | 12,942 |
| Benefits paid during the year | - | - |
| Accrued benefit obligation, end of the year | $238,301 | $269,148 |
9. Contractual Obligations
The Canadian Polar Commission has a commitment with a related party for an operating lease for its accommodations of $66,173. The expiry date is October 31, 2011. A new lease is presently being negotiated for a 10 year term starting November 1, 2011. As of November 14, 2011, a new occupancy instrument had yet to be issued.
Minimum future lease payments are as follows:
| Fiscal Period | Amount |
|---|---|
| 2011-12 | $66,173 |
| Total | $66,173 |
10. Related Party Transactions
The Commission is related as a result of common ownership to all Government of Canada departments, agencies and Crown Corporations. The Commission enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Commission received services which were obtained without charge from other Government departments and agencies as disclosed below.
(a) Common Services Provided Without Charge by Other Government Departments
During the year, the Commission received services without charge from certain common service organizations, related to audit, the employer's contribution to the health and dental insurance plans and salary and associated costs of human resource management. These services provided without charge have been recorded in the Commission's Statement of Operations as follows.
| 2011 | 2010 | |
|---|---|---|
| Audit services provided by the Office of the Auditor General of Canada | $95,000 | $84,000 |
| Employer's contributions to the health and dental plans provided by Treasury Board | 37,085 | 35,275 |
| Salary and associated costs of human resource management provided by Aboriginal Affairs and Northern Development Canada | 4,000 | 4,000 |
| Total | $136,085 | $123,275 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of its 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 cost of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada are not included in the Commission's Statement of Operations.
(b) Other Transactions with Related Parties
| 2011 | 2010 | |
|---|---|---|
| Expenses-other government departments and agencies | ||
| Office accommodation | $99,037 | $98,666 |
| Employee benefits | 70,143 | 65,172 |
| Professional services | 18,726 | 18,270 |
| Telephone and telecommunications | 6,925 | 11,555 |
| Printing and publishing | - | 735 |
| Materials and supplies | - | 298 |
| Total | $194,831 | $194,695 |
11. Segmented Information
Presentation by segment is based on the Commission's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of Significant Accounting Policies in note 3. The following table presents the expenses incurred for the main program activities, by major object of expenses. The segment results for the period are as follows.
| Operating Expenses | Total Program | Total Internal Services | Total 2011 | Total 2010 Restated (Note 13) |
|---|---|---|---|---|
| Salaries and employee benefits | $460,432 | $103,869 | $564,301 | $490,132 |
| Professional and special services | 68,284 | 212,502 | 280,786 | 326,974 |
| Travel | 120,627 | 765 | 121,392 | 43,327 |
| Accommodation | 78,866 | 19,717 | 98,583 | 97,584 |
| Printing and publishing | 31,466 | 697 | 32,163 | 39,289 |
| Amortization of tangible capital assets | 24,652 | 6,163 | 30,815 | 23,936 |
| Telephone and telecommunications | 286 | 15,203 | 15,489 | 16,953 |
| Office expenses and equipment | 10,209 | 1,538 | 11,747 | 15,804 |
| Contributions | 10,000 | - | 10,000 | 10,000 |
| Postage and courier services | 5,932 | 441 | 6,373 | 7,110 |
| Materials and supplies | 194 | 3,784 | 3,978 | 6,785 |
| Total program expenses | $810,948 | 364,679 | 1,175,627 | 1,077,894 |
12. Net Debt Indicator
The presentation of the net debt indicator and a statement of change in net debt is required under Canadian generally accepted accounting principles.
Net debt is the difference between a government's liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventories. Departments are financed by the Government of Canada through appropriations and operate within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by departments is deposited to the CRF and all cash disbursements made by departments are paid by the CRF. Under this government business model, assets reflected on the Commission's financial statements, with the exception of the Due from the Consolidated Revenue Fund, are not available to use for the purpose of discharging the existing liabilities of the Commission. Future appropriations and any respendable revenues generated by the Commission's operations would be used to discharge existing liabilities.
| 2011 | 2010 | |
|---|---|---|
| Liabilities | ||
| Accounts payable and accrued liabilities | $97,553 | $84,116 |
| Vacation pay | 18,232 | 15,152 |
| Employee severance benefits | 283,301 | 269,148 |
| Total financial liabilities | 399,086 | 368,416 |
| Financial assets | ||
| Due from the Consolidated Revenue Fund | 88,694 | 75,324 |
| Accounts receivable and advances | 12,696 | 7,772 |
| Total financial assets | 101,390 | 83,096 |
| Net debt indicator | $297,696 | $285,320 |
13. Restatement of Prior Year Employee Severance Benefits
In 2010-11, it became apparent that the calculations of severance liability using the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole resulted in an understatement of the actual severance liability at March 31, 2010 largely due to the omission of certain contractual terms of employment. The effects of the correction of this error on the 2009-10 financial statements are presented in the table below.
| As previously stated | Effect of the adjustment | Revised amount | |
|---|---|---|---|
| Employee severance benefits | $82,384 | $186,764 | $269,148 |
| Program expenses/net cost of operations | 1,055,921 | 21,973 | 1,077,894 |
| Equity of Canada, beginning of year | (39,139) | (164,791) | (203,930) |
| Equity of Canada, end of year | (3,529) | (186,764) | (190,293) |
| Decrease (increase) in employee severance benefits | 9,031 | (21,973) | (12,942) |
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