Financial Statements for 2013–14

For the Year Ended March 31, 2014

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, 2014, and all information contained in these statements rests with LAC management. 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 the 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, 2014, 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 effectiveness and adequacy of LAC's ICFR system is reviewed by internal audit staff, who conduct periodic audits of different areas of LAC's operations.

The financial statements of LAC have not been audited.


 

____________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, QC
August 28, 2014

 


 

____________________________________
Hervé Déry
Assistant Deputy Minister, Corporate Services, and Chief Financial Officer
Gatineau, QC
August 22, 2014  

 

Statement of Financial Position (Unaudited)
As at March 31

(in thousands of dollars)

2014

2013


Liabilities

 

Accounts payable and accrued liabilities (note 4)

 $         10,536

 

 $           8,514

 

Vacation pay and compensatory leave

3,049

 

3,186

 

Deferred revenue (note 5)

483

 

509

 

Employee future benefits (note 6)

4,309

 

7,328

Total net liabilities

18,377

 

19,537


Financial assets

 

 

 

Due from Consolidated Revenue Fund

10,411

 

7,446

 

Accounts receivable and advances (note 7)

881

 

846

Total net financial assets

11,292

 

8,292


 Departmental net debt 

7,085

 

11,245


 Non-financial assets

 

 

 

 

Tangible capital assets (note 8)

51,150

 

50,653

 

Collections (note 9)

1

 

1

Total non-financial assets

51,151

 

50,654


Departmental net financial position

$          44,066

 

$          39,409

 [Text version: Figure 1]

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


 

____________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, QC
August 28, 2014   

 


 

____________________________________
Hervé Déry
Assistant Deputy Minister, Corporate Services, and Chief Financial Officer
Gatineau, QC
August 22, 2014  

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

(in thousands of dollars)

2014

 

2014

2013

 

 

Planned Results

 

Expenses

 

 

 

 

 

Development of regulatory instruments and recordkeeping tools

$     4,468


$       3,225


$         2,150

 

Collaboration in the management of government records

20,636

 

21,061

 

21,997

 

Documentation of the Canadian experience

18,550

 

19,428

 

15,204

 

Preservation of continuing memory

44,926

 

40,284

 

37,664

 

Exploration of documentary resources

37,711

 

35,704

 

43,778

 

Internal services

26,643

 

26,663

 

31,672

Total expenses

152,934

 

146,365

 

152,465


Revenues

 

 

 

 

 

 

Sales of goods and information products

270

 

226

 

236

 

Gain on disposal of non-capital assets

190

 

112

 

127

 

Gain on disposal of tangible capital assets

-

 

19

 

5

 

Miscellaneous revenues

76

 

83

 

56

 

Revenues earned on behalf of Government

(60)

 

(80)

 

(48)

Total revenues

476

 

360

 

376


Net cost from continuing operations

152,458

 

146,005

 

152,089


Net cost of operations before government funding and transfers

152,458

 

146,005

 

152,089


Government funding and transfers

 

 

 

 

 

 

Net cash provided by the Government

107,193

 

97,319

 

118,519

 

Change in due from Consolidated Revenue Fund

1,223

 

2,965

 

409

 

Services provided without charge by other government departments (note 10)

48,232

 

50,435

 

52,336

 

Other transfers to other government departments

-

 

(57)

 

(160)

Net cost of operations after government funding and transfers

(4,190)

 

(4,657)

 

(19,015)


Departmental net financial position—beginning of year

33,354

 

39,409

 

20,394

Departmental net financial position—end of year

$ 37,544

 

$     44,066

 

$        39,409

Segmented information (note 11)
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 thousands of dollars)

 

2014

 

2014

 

2013

 

Planned Results

 

 

 

 

Net cost of operations after government funding and transfers

$ (4,190)

 

$ (4,657)

 

$ (19,015)


Change due to tangible capital assets (note 8)

 

 

 

 

 

Acquisition of tangible capital assets

3,697

 

4,288

 

19,264

Amortization of tangible capital assets

(3,749)

 

(3,107)

 

(2,990)

Proceeds from disposal of tangible capital assets

-

 

(19)

 

(5)

Net (loss) gain on disposal of tangible capital assets including adjustments

-

 

(665)

 

(4,020)

Total change due to tangible capital assets

(52)

 

497

 

12,249


Net increase (decrease) in departmental net debt

(4,242)

 

(4,160)

 

(6,766)


Departmental net debt—beginning of year

13,651

 

11,245

 

18,011

Departmental net debt—end of year

$  9,409

 

$  7,085

 

$   11,245

 [Text version: Figure 3]

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

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

(in thousands of dollars)

2014

2013

Operating activities

 

 

 

Net cost of operations before government funding and transfers

 $       146,005


$    152,089


Non-cash items:

 

 

 

 

 

Amortization of tangible capital assets (note 8)

(3,107)

 

(2,990)

 

 

Gain (loss) on disposal of tangible capital assets

(665)

 

(4,020)

 

 

Services provided without charge by other government departments (note 10)

(50,435)

 

(52,336)


 

 

Variations in Statement of Financial Position:

 

 

 

 

 

Increase (decrease) in accounts receivable and advances

35

 

403

 

 

Decrease (increase) in liabilities

1,160

 

5,954

 

 

Other transfers to other government departments

57

 

160

Cash used in operating activities

93,050

 

99,260

Capital investing activities

 

 

 

 

Acquisitions of tangible capital assets (note 8)

4,288

 

19,264

 

Proceeds from disposal of tangible capital assets (note 11)

(19)

 

(5)

Cash used in capital investing activities

4,269

 

19,259


Net cash provided by Government of Canada

$        97,319

 

$  118,519

 [Text version: Figure 4]

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

1. Authority and objectives

(a) Description of the authority and objectives
LAC is a government institution that 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 objectives. Pursuant to the Act, no government or ministerial record may be destroyed without the prior written consent of the Librarian and Archivist of Canada. Government records deemed to be of historical or archival importance shall be transferred to his or her care and control.
 
LAC is a Schedule I.1 organization within the Financial Administration Act and reports to Parliament through the Minister of Canadian Heritage. LAC's 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 cooperation 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 

) 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. Furthermore, LAC provides input on information management policy by chairing and participating in various intergovernmental committees.

ii) Collaboration in the management of government records: 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 institutions, presenting papers at conferences, symposiums and forums, and developing and delivering training and awareness sessions. LAC also facilitates the disposition of government information resources, 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. LAC conducts research on topics of interest to federal libraries, coordinates the procurement of electronic information resources for federal libraries through the Federal Library Consortium, and manages relationships with federal library partners. Finally, LAC contributes significantly to the accessibility of the government information resources 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 the mandate of LAC is to ensure that Canada's continuing memory reflects Canadian society and is of interest to current and future generations. The LAC holdings consist 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 information resources of enduring 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 also builds its holdings by acquiring on a discretionary basis material that is as representative as possible of Canadian society. For this type of acquisition, LAC's acquisition mechanisms are purchases and receipts in exchange for documentary heritage considered to be of national significance and coming from individuals or private organizations. To deliver on its mandate and realize shared priorities, LAC is supporting a pan-Canadian network focused on all aspects of documentary heritage through the development of an online tool that will foster the exchange of ideas and expertise across Canada. The diversity of experience and expertise in this network will strengthen communities and provide support in finding solutions for shared issues in a rapidly changing environment.

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; 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 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 documentary heritage organizations are responsible, LAC contributes to the creation of new knowledge that will increase the understanding of Canada's continuing memory.

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 as 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 2013–2014 Report on Plans and Priorities.

(b) Net cash provided by the 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 the 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 receivable and advances
Accounts receivable 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 11).

(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:

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

 

2014

2013

 

(in thousands of dollars)

Net cost of operations before government funding and transfers

$       146,005

 

$       152,089


Adjustments for items affecting net cost of operations but not affecting authorities:

 

Services provided without charge by other government departments

(50,435)

(52,336)

 

Amortization of tangible capital assets

(3,107)

(2,990)

 

Decrease (increase) in obligation for termination benefits

798

 

2,147

 

Decrease (increase) in employee future benefits

3,019

4,233

 

Decrease (increase) in vacation pay and compensatory leave

137

343

 

Bad debts

(3)

 

(61)

 

Refund of previous year's expenditures

659

113

 

Revenue not available for spending during the fiscal year

127

120

 

Gain (loss) on disposal and write-down of tangible capital assets

(665)

 

(4,020)

 

Other

-

26

 

Total items affecting net cost of operations but not affecting authorities

(49,470)

(52,425)

Adjustments for items not affecting net cost of operations but affecting authorities:

 

 

Acquisitions of tangible capital assets

4,288

19,264

 

Proceeds from disposal of tangible capital assets

(19)

 

(5)

 

Total items not affecting net cost of operations but affecting authorities

4,269

 

19,259

Current year authorities used

$       100,804


$       118,923

 [Text version: Figure 6]

(b) Authorities provided and used

 

2014

2013

Authorities provided:

(in thousands of dollars)

Vote 55—Operating expenditures

$         91,271

$         96,728

Vote 60—Capital expenditures

3,943

19,353

Statutory amounts

11,086

12,639

 

 

 

 

Less:

Authorities available for future years

(132)

 

(132)

Lapsed: Operating

(229)

(5,079)

Lapsed: Capital

(298)

(987)

Lapsed: Statutory amounts

-

(220)

Lapsed: Frozen allotments

(4,837)

 

(3,379)

Current year authorities used

$      100,804

$      118,923

 [Text version: Figure 7]

 

4. Accounts payable and accrued liabilities

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

 

 

2014

2013

 

 

(in thousands of dollars)

Accounts payable—Other government departments and agencies

$            1,052

$        1,559

Accounts payable—External parties

8,680

5,952

Total accounts payable 

          9,732

          7,511

Accrued liabilities

804

1,003

Total accounts payable and accrued liabilities

 $         10,536

$          8,514

 [Text version: Figure 8]

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, 2014, an obligation for termination benefits for an amount of $55,000 ($853,308 as at March 31, 2013) 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:

 

2014

2013

 

 

(in thousands of dollars)

Opening balance

$              509


$           1,008

Amounts received

560

 

123

Revenues recognized

(586)

 

(622)

Net closing balance

$           483

 

$           509

 [Text version: Figure 9]

 

6. Employee future benefits

(a) Pension benefits
LAC'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 two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plan benefits and they are indexed to inflation.

Both the employees and LAC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to EAP 2012, employee contributors have been divided into two groups—Group 1 relates to existing plan members as of December 31, 2012, and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
 
The 2013–2014 expense amounts to $7,608,091 ($8,773,418 in 2012–2013). For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012–2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012–2013) the employee contributions.
 
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:

 

2014

2013

 

 

(in thousands of dollars)

Accrued benefit obligation, beginning of year

 $        7,328

 

 $       11,561

Expense for the year

1,997

 

7,640

Benefits paid during the year

(5,016)

 

 (11,873)

Accrued benefit obligation, end of year

 $         4,309 

 

 $      7,328

 [Text version: Figure 10]

 

7. Accounts receivable and advances

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

 

 

2014

2013

 

 

(in thousands of dollars)

Receivables—Other government departments and agencies

$               805

 

$             690

Receivables—External parties

71

 

210

Employee advances

5

 

7

Subtotal

881

 

907

Allowance for doubtful accounts on receivables from external parties

-

 

(61)

Accounts receivable

$               881

 

$             846

 [Text version: Figure 11]

8. Tangible capital assets

Cost
(in thousands of dollars)

Opening Balance

Acquisitions

Adjustments
 (1)

Disposals and
Write-offs

 

Closing
Balance

Buildings

8,001

19

-

-

8,020

Machinery and equipment

843

132

-

(44)

931

Computer hardware

3,532

390

(30)

(15)

3,877

Computer software

23,613

-

218

(30)

23,801

Other equipment

35,028

1,753

-

(1,503)

35,278

Vehicles

443

32

-

(43)

432

Leasehold improvements

2,055

-

13,209

-

15,264

Leasehold improvements in progress of construction

13,209

1,172

(13,209)

-

1,172

Software under development

65

 

790

 

(188)

 

-

 

667

 

$    86,789

 

$        4,288

 

$               -        

 

 $  (1,637)

 

$      89,442

 

 

Accumulated Amortization  
(in thousands of dollars)

Opening Balance

Amortization

Adjustments
 (1)

Disposals and
Write-offs

Closing
Balance

Buildings

433

200


-

 

-

 

633

Machinery and equipment

741

33

-

 

(39)

 

735

Computer hardware

3,412

10

-

 

-

 

3,422

Computer software

12,666

1,036

-

 

-

 

13,702

Other equipment

17,910

1,247

-

 

(870)

 

18,287

Vehicles

387

31

-

 

(42)

 

376

Leasehold improvements

587

 

550

 

-

 

-

 

1,137

 

 $   36,136

 

$       3,107

 

$           -

 

$      (951)

 

 $      38,292    

 

 

 

 

 

 

 

Net Book Value
(in thousands of dollars)

2014

 

2013

 

 

Buildings

 

7,387

 

7,568

 

 

Machinery and equipment

 

196

 

102

 

 

Computer hardware

 

455

 

120

 

 

Computer software

 

10,099

 

10,947

 

 

Other equipment

 

16,991

 

17,118

 

 

Vehicles

 

56

 

56

 

 

Leasehold improvements

 

14,127

 

1,468

 

 

Leasehold improvements in progress of construction

 

1,172

 

13,209

 

 

Software under development

 

667

 

65

 

 

 

 

 

$    51,150

 

$   50,653

 

 

 [Text version: Figure 12]

  1. Adjustments include software under development of $187,671 and leasehold improvements in progress of construction of $13,208,830 that were transferred to other categories upon completion of the assets and a reclassification of $29,586 to record an asset 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:

 

 

2014

2013

 

 

(in thousands of dollars)

Accommodation

$ 44,216

 

$       46,054

Employer's contribution to the health and dental insurance plans

6,203

 

6,264

Workers' compensation

16

 

18

 

 

$ 50,435

 

$       52,336

 [Text version: Figure 13]

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) Other transactions with related parties

 

 

2014

2013

 

 

(in thousands of dollars)

Expenses—Other government departments and agencies

 $        10,733

 

 $         10,120

Revenues—Other government departments and agencies

26

 

33

 [Text version: Figure 14]

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

11. 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. The following table presents the expenses incurred and revenues generated for the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

 

 

 

2014

 

2013

 

 

(in thousands of dollars)

Development of Regulatory Instruments and Recordkeeping Tools

Collaboration in the Management of Government Records

Documentation of the Canadian Experience

Preservation of Continuing Memory

Exploration of Documentary Resources

Internal Services

Total

 

Total

Transfer payments

-

-

-

-

37

-

$       37


$       35

Operating expenses

 

 

 

Salaries and employee benefits

2,558

7,679

12,701

12,622

29,374

15,307

80,241

 

87,850

 

Accommodation

628

12,460

3,063

22,170

2,622

3,271

44,214

 

46,053

 

Professional and special services

34

341

1,004

1,674

2,257

4,805

10,115

 

5,529

 

Amortization of tangible capital assets

-

246

413

1,929

371

148

3,107

 

2,990

 

Rental costs

-

27

23

38

69

1,110

1,267

 

1,840

 

Acquisition of machinery and equipment

-

19

44

507

675

835

2,080

 

809

 

Utilities, materials and supplies

-

125

2,056

449

92

117

2,839

 

774

 

Repair and maintenance

-

6

-

194

30

844

1,074

 

887

 

Travel and relocation

5

99

76

47

88

131

446

 

486

 

Other

-

23

7

6

7

-

43

 

933

 

Communication services

-

-

41

-

82

95

218

 

254

 

Loss on disposal of tangible capital assets

-

36

-

648

-

-

684

 

4,025

Total operating expenses

3,225

21,061

19,428

40,284

35,667

26,663

146,328

 

152,430

 

 

 

 

 

 

 

 

 

 

Total expenses

3,225

21,061

19,428

40,284

35,704

25,642

146,365

 

152,465

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

Sales of goods and information products

-

-

-

-

226

-

226

 

236

 

Gain on disposal of non-capital assets

-

-

-

-

-

112

112

 

127

 

Proceeds from disposal of tangible capital assets

-

-

-

6

4

9

19

 

5

 

Miscellaneous revenues

-

-

-

-

4

79

83

 

56

 

Revenues earned on behalf of Government

-

-

-

-

(1)

(79)

(80)

 

(48)

Total revenues

-

-

-

6

233

121

360

 

376

Net cost from continuing operations

3,225

21,061

19,428

40,278

35,471

26,542

$146,005

 

$152,089

 [Text version: Figure 15]

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