Financial Statements for 2012-13

For the year ended March 31, 2013  

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, 2013, and all information contained in these statements rests with the management of LAC. 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 LAC’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in LAC’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 LAC; 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 ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
 
A risk-based assessment of the system of ICFR for the year ended March 31, 2013, was completed in accordance with the Treasury Board's Policy on Internal Control and the results and action plans are summarized in the annex.
 
The financial statements of LAC have not been audited.

Signed by H. Déry on Aug. 20, 2013
Acting Librarian and Archivist of Canada
Gatineau, QC
August 20, 2013

Mark C. Melanson, CGA
Chief Financial Officer

August 19, 2013

Statement of Financial Position (Unaudited)
As at March 31

This table indicates LAC's Statement of Financial Position for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing the liabilities, assets and departmental net financial position for both 2012 and 2013.

 
(in thousands of dollars)
Statement of Financial Position  2013 2012
Liabilities
Accounts payable and accrued liabilities (note 4) $ 8,514 $ 9,393
Vacation pay and compensatory leave    3,186    3,529
Deferred revenue (note 5)       509    1,008
Employee future benefits (note 6)    7,328  11,561
Total net liabilities  19,537  25,491
Financial assets
Due from consolidated Revenue Fund     7,446    7,037
Accounts receivable and advances (note 7)       846       443
Total net financial assets    8,292    7,480
Departmental net debt 11,245   18,011
Non-financial assets
Tangible capital assets (note 8) 50,653   38,404
Collections (note 9)           1           1
Total non-financial assets 50,654   38,405
Departmental net financial position $ 39,409  $ 20,394

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

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Signed by H. Déry on Aug. 20, 2013
Acting Librarian and Archivist of Canada
Gatineau, QC
August 20, 2013
  
Mark C. Melanson, CGA
Chief Financial Officer
August 19, 2013
 

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

 
This table indicates LAC's Statement of Operations and Departmental Net Financial Position for the year ended March 31, 2013. Displayed are the expenses by program, the revenues by type, the net cost of operations before government funding and transfers, and the net cost of operations after government funding and transfers. The departmental net financial position at the beginning and at the end of the year is also displayed. The figures for both 2012 and 2013 are presented in thousands of dollars.
  
(in thousands of dollars)
 Statement of Operations and Departmental Net Financial Position 2013
Planned
Results
2013 2012
Expenses
Development of regulatory instruments and recordkeeping tools $ 3,547 $ 2,150 $ 3,025
Collaboration in the management of government records 20,631 21,997 23,033
Documentation of the Canadian experience 19,451 15,204 15,833
Preservation of continuing memory 38,946 37,664 38,402
Exploration of documentary resources 40,920 43,778 42,843
Internal Services 32,478 31,672 36,273
Total expenses 155,973 152,465 159,409
Revenues
Sales of goods and information products 315 236 290
Gain on disposal of non-capital assets 100 127 212
Gain on disposal of tangible capital assets -     5     8
Miscellaneous revenues   38   56    49
Revenues earned on behalf of Government (30) (48) (31)
Total revenues 423 376 528
Net cost from continuing operations $ 155,550  152,089  158,881
Transferred operations (note 11)
Expenses - - 3,221
Net cost of transferred operations - - 3,221
Net cost of operations before government funding and transfers  155,550  152,089  162,102
Government funding and transfers
Net cash provided by Government 118,519 112,747
Change in due from Consolidated Revenue Fund        409   (1,250)
Services provided without charge by other
government departments (note 10)
  52,336   51,772
Transfer of assets and liabilities to other
government departments (note 11)
        - (2,040)
Other transfers to other government departments      (160) (15)
Net cost of operations after government funding and transfers  (19,015)   888
Departmental net financial position – Beginning of year    20,394 21,282
Departmental net financial position – End of year $ 39,409 $ 20,394

Segmented information (note 12)
The accompanying notes form an integral part of these financial statements.

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Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31

This table indicates LAC’s Statement of Change in Departmental Net Debt for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing the departmental net debt beginning-of-year balance, the adjustments throughout the year, and the end-of-year balance for both 2012 and 2013. 
 
(in thousands of dollars)
 Statement of Change in Departmental Net Debt 2013 2012
Net cost of operations after government funding and transfers $ (19,015)   $ 888
Change due to tangible capital assets
Acquisition of tangible capital assets  19,264   3,361
Amortization of tangible capital assets  (2,990)  (3,699)
Proceeds from disposal of tangible capital assets  (5)        (8)
Net (loss) gain on disposal of tangible capital assets including adjustments  (4,020)     (200)
Transfer to other government departments       -  (2,511)
Total change due to tangible capital assets  12,249  (3,057)
Net increase (decrease) in departmental net debt  (6,766)   (2,169)
Departmental net debt – Beginning of year   18,011    20,180
Departmental net debt – End of year $ 11,245     $ 18,011

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

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


This table indicates LAC’s Statement of Cash Flows for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing the operating, investment, and financing activities for both 2012 and 2013.

 
(in thousands of dollars)
 Statement of Cash Flows 2013 2012
Operating activities
Net costs of operations before government funding and transfers $ 152,089   $ 162,102
Non-cash items:
Amortization of tangible capital assets (note 8) (2,990)  (3,699)
Gain (Loss) on disposal of tangible capital assets (4,020)     (200)
Services provided without charge by other government departments (note 10) (52,336) (51,772)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 403     46
Decrease (increase) in liabilities 5,954    3,373
Transfer of liabilities to other government departments (note 11)   -    (456)
Other transfers to other government departments       160        -
Cash used in operating activities  99,260 109,394
Capital investing activities
Acquisitions of tangible capital assets (note 8) 19,264   3,361
Proceeds from disposal of tangible capital assets       (5)       (8)
Cash used in capital investing activities 19,259   3,353
Net cash provided by Government of Canada $ 118,519   $ 112,747

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

(a) Description of the authority and objectives
LAC is a government institution and was established on May 21, 2004, as a result of the amalgamation of the former National Library of Canada and National Archives of Canada. LAC's role was confirmed in the 2004 Library and Archives of Canada Act which assigns discretionary power to the Librarian and Archivist of Canada in attaining LAC's objects. Pursuant to the Act, no government or ministerial institution may destroy records under its control prior to receiving consent from the Librarian and Archivist of Canada; records considered to be of historical or archival importance to the Librarian and Archivist of Canada shall be transferred to his or her care and control.

LAC is considered a Schedule I.1 organization within the Financial Administration Act and reports to Parliament through the Minister of Canadian Heritage; its mandate is as follows:

  • to preserve the documentary heritage of Canada for the benefit of current and future generations;
  • to serve as a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society;
  • to facilitate in Canada co-operation among communities involved in the acquisition, preservation and diffusion of knowledge; and
  • to serve as the continuing memory of the Government of Canada and its institutions.   

(b) Description of the Programs
i) Development of regulatory instruments and recordkeeping tools: LAC, working collaboratively with central agencies, federal departments and institutions, and other stakeholders, plays a lead role in developing standards, tools and best practices for information management and recordkeeping. LAC facilitates the management of information within federal institutions through the approval and issuance of Records Disposition Authorities and the development of recordkeeping tools, guides and guidelines that support the advancement of the government's Recordkeeping Initiative. LAC provides input on information management policy by chairing and participating in various intergovernmental committees.

ii) Collaboration in the management of government records of business value to ensure their availability: LAC offers advice, support, services and training to federal institutions, which enables them to manage their information effectively and helps them comply with the requirements of the Directive on Recordkeeping. LAC carries out these functions by providing direction to national and international institutions, presenting papers at conferences, symposiums and forums, and developing and delivering training and awareness sessions. LAC also facilitates the disposition of government records, providing guidance and support on their storage, preservation, destruction and transfer. In addition, LAC works with the federal library community to ensure access to relevant information to support the work of decision makers, while maintaining the excellence of the Government of Canada's library services. LAC conducts research on topics of interest to federal libraries, coordinates the procurement of electronic information resources for federal libraries, supports the ADM Task Force on the Future of Federal Library Services and manages relationships with federal library partners. Finally, LAC contributes significantly to the accessibility of the government records that originate from the various institutions, for which it has responsibility and legislated authority under the Access to Information Act.

iii) Documentation of the Canadian experience: One of the pillars of LAC’s mandate is to ensure that Canada's continuing memory reflects Canadian society and is of interest to current and future generations. The LAC collection consists of published and unpublished materials in a variety of formats, both analogue and digital. The majority of LAC’s acquisitions take place within a legislative framework. For example, Canadian publishers must deposit published material with LAC in accordance with the Legal Deposit of Publications Regulations. As well, federal government records of archival value must be transferred to LAC when they cease being of operational value to the organization that produced them, in accordance with the Library and Archives of Canada Act. LAC builds its collection by acquiring material on the Canadian experience through donations and selective purchases, which are subject to rigorous criteria to ensure the collection's coherence and relevance.

iv) Preservation of continuing memory: LAC manages a vast collection of materials in a wide range of formats, both digital and analogue, to ensure their long-term preservation and accessibility to Canadians. Traditional and cutting-edge archival and preservation techniques ensure the long-term availability of both analogue and relevant digital materials. The preservation of analogue and digital materials includes all management activities and strategies aimed at ensuring the integrity, authenticity, and short- and long-term availability of Canada's continuing memory. There are various types of preservation activities: those related to the physical management of the collection, such as storage and circulation; those involving restoration, which include preventing documents from deteriorating and repairing already damaged documents; and those associated with reproduction and the making of replacement copies, which ensure the preservation and availability of documents that would otherwise be too fragile to access. On the digital side, innovative strategies are implemented to maintain accessibility to documents in outdated formats and to ensure the originals are protected through backup and storage.

v) Exploration of documentary resources: This program is aimed at distributing Canadian documentary resources and making them available to Canadians or to anyone interested in Canada, its society or its experience. To this end, strategies are put in place to provide Canadians with easier access to these documentary resources and increase their use among the general public. By making available the documentary resources for which it or other heritage organizations are responsible, LAC contributes to the creation of new knowledge that will increase our understanding of Canada.

vi) Internal services: Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal services include only those activities and resources that apply across an organization and not to those provided specifically to a program.   

 

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:

(a) Parliamentary authorities

LAC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to LAC 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 Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2012–2013 Report on Plans and Priorities.
 

(b) Net cash Provided by Government
LAC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by LAC is deposited to the CRF and all cash disbursements made by LAC 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) Amounts due from/to the CRF
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 LAC is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues
i) Sales of goods and information products are revenues from regulatory fees and are recognized in the accounts based on the services provided in the year.

ii) Funds received from external parties for specified purposes are recorded upon receipt asred revenues. These revenues are recognized in the period in which the related expenses are incurred.

iii) Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

iv) Revenues that are non-respendable are not available to discharge the Department's liabilities. While the Deputy Head is expected to maintain accounting control, he or 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.

(e) Expenses
Expenses are recorded on the accrual basis:
i) Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.

ii) Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

iii) Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans and workers' compensation 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 multi-employer pension plan administered by the Government. LAC’s contributions to the Plan are charged to expenses in the year incurred and represent the total of LAC’s obligation to the Plan. LAC’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.

ii) Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits 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.

(g) Accounts receivables and advances
Accounts receivables and advances are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

(h) Contingent liabilities
Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(i) Foreign currency transactions
Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect at year-end. Gains and losses resulting from foreign currency transactions are included in Other items within the Segmented information (note 12).

(j) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. LAC 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:
 
This table indicates LAC’s asset classes and their amortization period for the year ended March 31, 2013.
 
Asset Class Amortization Period
Buildings 40 years
​Machinery and equipment 3-15 years​
Computer hardware 2-7 years
Computer software 2-10 years
Other equipment 3-40 years
Vehicles 3-5 years
Leasehold improvements              Lesser of the remaining term of lease or useful life of the improvement


Assets under construction and software under development 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.

(k) Collections
The collections of LAC are presented in the Statement of Financial Position at a nominal value of $1,000. Items purchased for the collections are recorded as an expense in the year of acquisition. Items collected from the federal government are not recorded in the Statement of Financial Position.

(l) 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 contingent liabilities, the liability for employee future benefits and the useful life 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.

 

3. Parliamentary authorities

LAC 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, LAC 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

This table reconciles LAC’s net cost of operations to current year authorities used for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.
 
(in thousands of dollars)
Net Cost of Operations to Current Year Authorities   2013 2012
Net cost of operations before government funding and transfers $ 152,089   $ 162,102
Adjustments for items affecting net cost of operations but not affecting authorities:
   Services provided without charge by other government departments    (52,336)      (51,772)
   Amortization of tangible capital assets      (2,990)      (3,699)
   Decrease (increase) in obligation for termination benefits      2,147     (3,000)
   Decrease (increase) in employee future benefits       4,233       4,630
   Decrease (increase) in vacation pay and compensatory leave          343          326
   Bad debt expense          (61)          -
   Refund of previous year's expenditures          113            58
   Revenue not available for spending during the fiscal year          120          223
   Gain (loss) on disposal and write-down of tangible capital assets        (4,020)         (200)
   Other            26   -
   Total items affecting net cost of operations but not affecting authorities      (52,425)       (53,434)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets       19,264        3,361
Proceeds from disposal of tangible capital assets            (5)             (8)
Total items not affecting net cost of operations but affecting authorities       19,259        3,353
Current year authorities used     $ 118,923      $ 112,021

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(b) Authorities provided and used 

This table details LAC’s current year authorities used for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.

(in thousands of dollars)
Authorities Provided and Used   2013

2012 

Restated
(Note 13)

Authorities provided:
Vote 55 – Operating expenditures $ 96,728     $ 102,241
Vote 60 – Capital expenditures    19,353     10,350
Statutory amounts    12,639     12,888
Less:
Authorities available for future years      (132)        (326)
Lapsed: Operating   (5,079)     (2,258)
Lapsed: Capital      (987)         -
Lapsed: Statutory amounts      (220)         -
Lapsed: Frozen allotments   (3,379)    (10,874)
Current year authorities used $ 118,923  $ 112,021

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4. Accounts payable and accrued liabilities

This table indicates LAC’s accounts payable and accrued liabilities for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.

(in thousands of dollars)
Accounts Payable and Accrued Liabilities  2013 2012
Accounts payable – Other government departments and agencies     $ 1,559    $ 1,166
Accounts payable – External parties        5,952       4,814
Total accounts payable        7,511       5,980
Accrued liabilities       1,003       3,413
Total accounts payable and accrued liabilities      $ 8,514    $ 9,393

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In Canada’s Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012–2013. As a result, LAC has recorded, at March 31, 2013, an obligation for termination benefits for an amount of $853,308 ($3,000,000 as at March 31, 2012) as part of accrued liabilities to reflect the estimated workforce adjustment costs.

5. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific research projects and stemming from amounts received for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed. Details of the transactions related to this account are as follows:

This table indicates LAC’sred revenue for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing thered revenue beginning-of-year balance, variances, and end-of-year balance for both 2012 and 2013.


(in thousands of dollars)
Deferred Revenue  2013 2012
Opening balance    $ 1,008       $ 946
Amounts received         123          754
Revenues recognized       (622)         (692)
Net closing balance     $   509       $ 1,008

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6. Employee future benefits

a) Pension benefits
LAC’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of two 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 LAC contribute to the cost of the Plan. The 2012–2013 expense amounts to $8,773,418 (2011–2012 - $8,967,312), which represents approximately 1.7 (1.8 in 2011–2012) times the contributions by employees.

LAC’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
LAC provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities.

As part of 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.

Information about the severance benefits, measured as at March 31, is as follows:


This table indicates LAC’s employee future benefits for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing the accrued benefit obligations beginning-of-year balance, variances, and end-of-year balance for both 2012 and 2013.


(in thousands of dollars)
Employee Future Benefits  2013 2012
Accrued benefit obligation, beginning of year    $ 11,561   $ 16,540
Transferred to other government department, effective
November 15, 2011 (note 11)
          -         (349)
Subtotal       11,561       16,191
Expense for the year         7,640         2,555
Benefits paid during the year     (11,873)
      (7,185)
Accrued benefit obligation, end of year    $ 7,328
    $ 11,561

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7. Accounts receivable and advances

This table details LAC’s accounts receivable and advances for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.


(in thousands of dollars)
Accounts Receivable and Advances  2013 2012
Receivables – Other government departments and agencies     $ 690    $ 327
Receivables – External parties        210       107
Employee advances           7          9
Subtotal        907       443
Allowance for doubtful accounts on receivables from external parties        (61)         -
Accounts receivable      $ 846     $ 443

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8. Tangible capital assets

This table indicates LAC’s tangible capital assets for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, showing the cost, accumulated amortization and net book value for both 2012 and 2013.

Tangible capital assests - Cost

(in thousands of dollars)

Cost Opening Balance Acquisitions Adjustments
(1)
Disposals and Write-offs Closing Balance
Buildings   8,001 - - -   8,001
Machinery and equipment       850 - -           (7)      843
Computer hardware   3,004       93     435 -   3.532
Computer software 24,997       69     234     (1,687) 23,613
Other equipment 30,845  6,474     129     (2,420) 35,028
Vehicles      462       18 -          (37)      443
Leasehold improvements   2,055 - - -   2,055
Leasehold improvements in progress of construction   1,283 11,926 - - 13,209
Software under development      179      684     (798) -         65
Cost $71,676 $19,264 -      ($4,151)  $86,789

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Tangible capital assets - Accumulated Amortization

(in thousands of dollars)

Accumulated amortization Opening Balance Amortization Adjustments
(1)
Disposals, Write-offs and Write-downs Closing Balance
Buildings 233 78 122 - 433
Machinery and equipment 709 30 - 2 741
Computer hardware 2,950 17 (4) 449 3,412
Computer software 10,753 1,269 4 640 12,666
Other equipment 17,981 1,151 - (1,222) 17,910
Vehicles 352 30 - 5 387
Leasehold improvements 294 415 (122) - 587
Accumulated amortization $33,272 $2,990 - ($126) $36,136

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Tangible capital assets - Net Book Value

(in thousands of dollars)

Net book value 2013 2012
Buildings 7,568 7,768
Machinery and equipment 102 141
Computer hardware 120 54
Computer software 10,947    14,244
Other equipment 17,118 12,864
Vehicles 56 110
Leasehold improvements 1,468 1,761
Leasehold improvements in progress of construction   13,209 1,283
Software under development 65 179
Net book value $50,653 $38,404

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(1) Adjustments include software under development of $798,481 that were transferred to the other categories upon completion of the assets; reclassifications to record certain assets under the appropriate category; and reclassifications to adjust the amortization expense of certain assets under the appropriate category.

9. Collections

LAC preserves Canada’s documentary heritage and serves as the continuing memory of the Government of Canada, thereby contributing to the country’s cultural, social and economic advancement as a free and democratic society.

While the nominal valuation attributed to the collections in these financial statements is aligned with Canadian public sector reporting standards, this is not representative of the historical or market value of the collection. Although not capitalized like other assets, such as buildings or equipment, these irreplaceable treasures have inestimable legal, evidentiary, cultural and, indeed, monetary value for Canadians now and for generations to come. These include documentary material transferred at no charge from government departments, publications received through Legal Deposit, materials purchased, and donated materials for which receipts for tax purposes may have been issued.

10. Related party transactions

LAC is related, as a result of common ownership, to all government departments, agencies and Crown corporations. LAC enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, during the year, LAC 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, LAC 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 LAC's Statement of Operations as follows:

This table indicates the services provided without charge to LAC for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.
 
(in thousands of dollars)
Services Provided Without Charge   2013 2012
Accommodation   $ 46,054    $ 45,121
Employer's contribution to the health and dental insurance plans 6,264 6,614
Workers' compensation 18 37
Total $ 52,336 $ 51,772

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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 and audit services provided by the Office of the Auditor General, are not included in LAC’s Statement of Operations. Similarly, LAC manages records, in all media, on behalf of more than 90 federal government organizations across the country.

(b) Administration of programs on behalf of other government departments

Since September 2011, LAC has been coordinating and managing funds on behalf of the network of small federal agencies. During the year, LAC incurred expenses of $378,161 on behalf of the network. These expenses are reflected in the financial statements of the members of the network and are not recorded in these financial statements.
 
(c) Other transactions with related parties

This table indicates LAC’s other transactions with related parties for the year ended March 31, 2013. Displayed are the figures, in thousands of dollars, for both 2012 and 2013.

(in thousands of dollars)
Other Transactions With Related Parties   2013 2012
Expenses - Other Government departments and agencies     $ 10,120     $ 12,756
Revenues - Other Government departments and agencies 33    41

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

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11. Transfers from/to other government departments

Effective November 15, 2011, LAC transferred responsibility for its email, data centre and network services to Shared Services Canada in accordance with Order-in-Council 2011-1297, including the stewardship responsibility for the assets and liabilities related to the program. Accordingly, on November 15, 2011, LAC transferred the following assets and liabilities related to its email, data centre and network services to Shared Services Canada.
 
During the transition period, LAC continued to administer the transferred activities on behalf of Shared Services Canada. The administered expenses amounted to $0 for 2012-2013 ($1,964,000 for 2011-2012). These expenses were not recorded in the 2011-2012 financial statements. 

12. Segmented information

Presentation by segment is based on LAC’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.

Table: 12. Segmented information

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13. Comparative information

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

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