2017-2018 Financial Statements

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Financial statements for the year ended March 31, 2018

Statement of management responsibility including internal control over financial reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2018, and all information contained in these statements rests with Library and Archives Canada (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.

LAC management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information presented 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 financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in LAC’s Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded, and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout 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.

LAC will be subject to periodic Core Control Audits performed by the Office of the Comptroller General, which will use the results of such audits to adhere to the Treasury Board Policy on Financial Management.

In the interim, the LAC has undertaken a risk-based assessment of the system of ICFR for the year that ended on March 31, 2018, in accordance with the Treasury Board Policy on Financial Management, and the action plan is summarized in the annex.

The financial statements of LAChave not been audited.


 

_________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, QC
August 9, 2018

 


 

_________________________________
Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate
Services, and Chief Financial Officer
Gatineau, QC
August 9, 2018

 

 

Statement of financial position (Unaudited)
As at March 31 (in thousands of dollars)

Table 1table 1 note *
  2018 2017
Liabilities
Accounts payable and accrued liabilities (note 4) 12,157 12,169
Vacation pay and compensatory leave 3,705 3,277
Deferred revenue (note 5) 2,288 1,099
Employee future benefits (note 6) 3,379 3,260
Total net liabilities 21,529 19,805
 
Financial assets
Due from Consolidated Revenue Fund 12,325 12,557
Accounts receivable and advances (note 7) 1,300 1,015
Total net financial assets 13,625 13,572
 
Departmental net debt 7,904 6,233
 
Non-financial assets
Tangible capital assets (note 8) 91,026 85,133
Prepaid expenses 450 601
Collections (note 9) 1 1
Total non-financial assets 91,477 85,735
 
Departmental net financial position 83,573 79,502
Table 1 Notes
Table 1 Note *

This table indicates LAC's Statement of Financial Position for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, showing the liabilities, assets and departmental net financial position for both 2017 and 2018.

Return to table 1 note * referrer

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


 

_________________________________
Guy Berthiaume
Librarian and Archivist of Canada
Gatineau, QC
August 9, 2018

 


 

_________________________________
Anick Ouellette, CPA, CA
Assistant Deputy Minister, Corporate
Services, and Chief Financial Officer
Gatineau, QC
August 9, 2018

 

 

Statement of operations and departmental net financial position (unaudited)
For the year ended March 31 (in thousands of dollars)

Table 2table 2 note *
  2018
Planned Results
2018 2017
Expenses
Development of disposition authorizations 3,835 4,127 4,217
Collaboration in the management of government records 4,080 3,844 3,959
Documentation of the Canadian society 13,631 15,754 13,254
Stewardship of documentary heritage 38,812 36,961 37,183
Access to documentary heritage 37,253 42,732 37,836
Internal services 31,727 39,516 31,900
Total expenses 129,338 142,934 128,349
 
Revenues
Sales of goods and information products 190 190 190
Gain on disposal of non-capital assets 20 11 12
Gain on disposal of tangible capital assets 0 0 0
Miscellaneous revenues 120 263 247
Revenues earned on behalf of Government -115 -59 -55
Total revenues 215 405 394
 
Net cost of operations before government funding and transfers 129,123 142,529 127,955
 
Government funding and transfers
Net cash provided by the Government   125,997 111,284
Change in due from Consolidated Revenue Fund   -232 3,058
Services provided without charge by other government departments (note 10)   21,155 20,630
Transfer of the transition payments for implementing salary payments in arrears (note 11) -320 41,642
Net cost of operations after government funding and transfers   -4,071 -48,659
 
Departmental net financial position—beginning of year   79,502 30,843
Departmental net financial position—end of year   83,573 79,502
Table 2 Notes
Table 2 Note *

This table indicates LAC's Statement of Operations and Departmental Net Financial Position for the year ended March 31, 2018. 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 2017 and 2018 are presented, in thousands of dollars.

Return to table 2 note * referrer

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

Statement of change in departmental net debt (Unaudited)
For the year ended March 31 (in thousands of dollars)

Table 3table 3 note *
  2018 2017
Net cost of operations after government funding and transfers -4,071 -48,659
 
Change due to tangible capital assets (note 8)
Acquisition of tangible capital assets 11,403 8,073
Amortization of tangible capital assets -4,624 -4,623
Proceeds from disposal of tangible capital assets 0 -12
Net (loss) gain on disposal and write-off of tangible capital assets including adjustments -575 12
Transfer between government departments -311 41,657
Total change due to tangible capital assets 5,893 45,107
 
Change due to prepaid expenses -151 601
 
Net increase (decrease) in departmental net debt 1,671 -2,951
 
Departmental net debt—beginning of year 6,233 9,184
Departmental net debt—end of year 7,904 6,233
Table 3 Notes
Table 3 Note *

This table indicates LAC's Statement of Change in Departmental Net Debt for the year ended March 31, 2018. 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 2017 and 2018.

Return to table 3 note * referrer

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)

Table 4table 4 note *
2018 2017
Operating activities
Net cost of operations before government funding and transfers 142,529 127,955
Non-cash items:
Amortization of tangible capital assets (note 8) -4,624 -4,623
Gain (loss) on disposal and write-off of tangible capital assets -575 12
Services provided without charge by other government departments (note 10) -21,155 -20,630
 
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 285 475
Increase (decrease) in prepaid expenses -151 601
Decrease (increase) in liabilities -1,724 -582
Transfer of assets to other government departments (note 12) 9 15
Cash used in operating activities 114,594 103,223
 
Capital investing activities
Acquisitions of tangible capital assets (note 8) 11,403 8,073
Proceeds from disposal of tangible capital assets 0 -12
Cash used in capital investing activities 11,403 8,061
 
Net cash provided by Government of Canada 125,997 111,284
Table 4 Notes
Table 4 Note *

This table indicates LAC's Statement of Cash Flow for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, showing the operating, investment, and financing activities for both 2017 and 2018.

Return to table 4 note * referrer

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

Notes to the financial statements (Unaudited)
For the year ended March 31

1. Authority and objectives

(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

  1. Development of disposition authorizations: To enable effective record keeping within federal institutions, LAC issues disposition authorizations. These authorizations specify the records that must be transferred to LAC at the end of their active use based on their historical importance. Other records are disposed of by the creating institution at the end of their retention period.

  2. Collaboration in the management of government records: In collaboration with central agencies, federal departments and agencies, and other stakeholders, LAC plays a lead role in developing standards, tools and best practices for information management and record keeping.

    LAC helps federal institutions to manage their information resources by:
    • providing advice on record keeping and records management to central agencies, other federal institutions and intergovernmental committees;
    • preparing and delivering training and awareness sessions to federal public servants through seminars and forums on record keeping;
    • establishing networks in the Government of Canada information management community; and
    • supporting the efforts of federal libraries and their respective departments.

  3. Acquisition and processing of documentary heritage: This program includes all activities undertaken to identify, evaluate acquire and process Canada’s documentary heritage for current and future generations.

    LAC’s collection consists of published and unpublished documentary resources in a variety of media and formats, both analogue and digital. LAC’s acquisitions are governed by legislation in the following ways:

    LAC also acquires records of historical value created by individuals, non-governmental organizations and the private sector, to constitute a collection that is representative of Canadian society.

    Processing of documentary heritage includes appraisal to support selection, arrangement, description and contextualization of documentary heritage. It results in databases, catalogue indexes and other tools that help users to locate LAC’s documentary resources.

  4. Preservation of documentary heritage: LAC manages a vast collection of materials in a wide variety of formats, both digital and analogue, to ensure its long-term preservation and accessibility. Preservation activities are divided into several categories:
    • those related to the physical management of the collection, such as circulation and storage;
    • those involving restoration and conservation, to help prevent the deterioration of documents, and to repair damage;
    • those associated with reproduction and the making of replacement copies to ensure the preservation and availability of records that would otherwise be too fragile to be accessed; and
    • management activities and the implementation of innovative strategies to ensure the integrity and authenticity of digital documentary heritage resources, as well as their current and long-term accessibility.

  5. Access to documentary heritage: This program provides access to original and digital versions of LAC collections, making them known and available through consultation and reproduction services, as well as loans to other institutions. These services are available at various locations across Canada, in person, online and through other means.

    LAC promotes access to its collection through public programming made up of exhibitions and events led by LAC, or carried out in collaboration with other institutions.

    LAC also expands access to its collections by developing web pages that include contextual information and databases, as well as by increasing the amount of documentary heritage available online through digitization. LAC provides access to government records in accordance with the Access to Information Act and the Privacy Act.

    Finally, the Documentary Heritage Communities Program provides financial contributions to help Canada’s documentary heritage institutions facilitate access to their collections, and increase their capacity by preserving them in a sustainable manner.

  6. 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 those dedicated to one program in particular.

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 does not parallel financial reporting according to generally accepted accounting principles, since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2017-2018 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position or in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2017-2018 Departmental Plan.

(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

  1. 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.
  2. 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.
  3. Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
  4. 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, these 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:

  1. 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.
  2. Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
  3. 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

  1. 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 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.
  2. 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) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 8. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

(i) 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, 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.

(j) 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 Segmented information (note 12).

(k) Collections

LAC's collections 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.

Table 5: (a) Reconciliation of net cost of operations to current year authorities used (in thousands of dollars)table 5 note *
  2018 2017
Net cost of operations before government funding and transfers 142,529 127,955
 
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments -21,155 -20,630
Amortization of tangible capital assets -4,624 -4,623
Decrease (increase) in employee future benefits -119 2,994
Decrease (increase) in vacation pay and compensatory leave -428 -285
Refund of previous year's expenditures 407 143
Revenue not available for spending during the fiscal year 23 68
Gain (loss) on disposal and write-off of tangible capital assets -575 12
Other -43 156
Total items affecting net cost of operations but not affecting authorities -26,514 -22,165
 
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 11,403 8,073
Proceeds from disposal of tangible capital assets 0 -12
Increase in prepaid expenses -151 601
Other 150 49
Total items not affecting net cost of operations but affecting authorities 11,402 8,711
Current year authorities used 127,417 114,501
Table 5 Notes
Table 5 Note *

This table reconciles LAC's net cost of operations to current year authorities used for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 5 note * referrer

 

Table 6: (b) Authorities provided and used (in thousands of dollars)table 6 note *
  2018 2017
Authorities provided:
Vote 1—Operating expenditures 108,692 101,468
Vote 5—Capital expenditures 14,398 11,241
Statutory amounts 10,894 10,141
 
Less
Authorities available for future years -11 -12
Lapsed: Operating -3,072 -2,539
Lapsed: Capital -2,821 -2,800
Lapsed: Frozen allotments -663 -2,998
Current year authorities used 127,417 114,501
Table 6 Notes
Table 6 Note *

This table details LAC's current year authorities used for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 6 note * referrer

4. Accounts payable and accrued liabilities

Table 7: Details of LAC's accounts payable and accrued liabilities (in thousands of dollars)table 7 note *
  2018 2017
Accounts payable—Other government departments and agencies 2,948 2,313
Accounts payable—External parties 9,152 9,679
Total accounts payable 12,100 11,992
Accrued liabilities 57 177
Total accounts payable and accrued liabilities 12,157 12,169
Table 7 Notes
Table 7 Note *

This table indicates LAC's accounts payable and accrued liabilities for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 7 note * referrer

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:

Table 8table 8 note *
  2018 2017
Opening balance 1,099 258
Amounts received 1,844 1,418
Revenues recognized -655 -577
Net closing balance 2,288 1,099
Table 8 Notes
Table 8 Note *

This table indicates LAC'sred revenue for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, showing thered revenue beginning of year balance, variances, and end of year balance for both 2017 and 2018.

Return to table 8 note * referrer

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 Economic Action Plan 2012, employee contributors have been divided into two groups—Group 1 relates to existing plan members as at December 31, 2012, and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2017–2018 expense amounts to $7,403,123 ($7,039,704 in 2016–2017). For Group 1 members, the expense represents approximately 1.01 times (1.12 times in 2016–2017) the employee contributions, and for Group 2 members, approximately 1.00 times (1.08 times in 2016–2017) the employee contributions.

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

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

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

Table 9table 9 note *
  2018 2017
Accrued benefit obligation, beginning of year 3,260 6,254
Expense for the year 723 -1,956
Benefits paid during the year -604 -1,038
Accrued benefit obligation, end of year 3,379 3,260
Table 9 Notes
Table 9 Note *

This table indicates LAC's employee future benefits for the year ended March 31, 2018. 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 2017 and 2018.

Return to table 9 note * referrer

7. Accounts receivable and advances

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

Table 10table 10 note *
  2018 2017
Receivables—Other government departments and agencies 954 644
Receivables—External parties 341 357
Employee advances 5 14
Accounts receivable 1,300 1,015
Table 10 Notes
Table 10 Note *

This table details LAC's accounts receivable and advances for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 10 note * referrer

8. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Table 11table 11 note *
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
Table 11 Notes
Table 11 Note *

This table indicates LAC's asset classes and their amortization period for the year ended March 31, 2018.

Return to table 11 note * referrer

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.

Table 12: Cost and accumulated amortization (in thousands of dollars)table 12 note *
Asset Class Opening Balance Acquisitions Adjustmentstable 12 note ** Disposals and
Write-offs
Closing
Balance
Cost
Land 8,786 0 -311 0 8,475
Buildings 102,881 0 5,873 0 108,754
Machinery and equipment 850 0 0 -206 644
Computer hardware 4,431 50 0 0 4,481
Computer software 15,961 20 0 0 15,981
Other equipment 35,204 729 0 -1,538 34,395
Vehicles 604 0 0 0 604
Leasehold improvements 18,601 0 538 0 19,139
Building in progress of construction 7,478 9,035 -5,873 0 10,640
Leasehold improvements in progress of construction 114 424 -538 0 0
Software under development 345 1,145 0 0 1,490
Total 195,255 11,403 -311 -1,744 204,603
 
Accumulated Amortization
Buildings 64,886 1,863 0 0 66,749
Machinery and equipment 739 24 0 -194 569
Computer hardware 3,724 117 0 0 3,841
Computer software 15,110 361 0 0 15,471
Other equipment 21,811 1,383 0 -975 22,219
Vehicles 273 41 0 0 314
Leasehold improvements 3,579 835 0 0 4,414
Total 110,122 4,624 0 -1,169 113,577
Table 12 Notes
Table 12 Note *

This table indicates LAC's tangible capital assets for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, showing the cost and accumulated amortization.

Return to table 12 note * referrer

Table 12 Note **

Adjustments include assets under construction of $6,411,134 transferred to other categories upon completion of the assets.

Return to table 12 note ** referrer

Table 13: Net Book Value (in thousands of dollars)table 13 note *
Asset Class 2018 2017
Land 8,475 8,786
Buildings 42,005 37,995
Machinery and equipment 75 111
Computer hardware 640 707
Computer software 510 851
Other equipment 12,176 13,393
Vehicles 290 331
Leasehold improvements 14,725 15,022
Building in progress of construction 10,640 7,478
Leasehold improvements in progress of construction 0 114
Software under development 1,490 345
Total 91,026 85,133
Table 13 Notes
Table 13 Note *

This table indicates LAC's tangible capital assets for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, showing the net book value for both 2017 and 2018.

Return to table 13 note * referrer

Effective March 29, 2018, LAC transferred land with a net book value of $311,137 to the Parks Canada Agency. This transfer is included in the adjustment columns (refer to note 11 for further details on the transfer).

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 monetary value for Canadians. 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:

Table 14table 14 note *
  2018 2017
Accommodation 14,546 14,450
Employer's contribution to the health and dental insurance plans 6,609 6,180
Total 21,155 20,630
Table 14 Notes
Table 14 Note *

This table indicates the services provided without charge to LAC for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 14 note * referrer

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and audit services provided by the Office of the Auditor General, are not included in 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

Table 15table 15 note *
  2018 2017
Expenses—Other government departments and agencies 29,177 28,079
Revenues—Other government departments and agencies 228 204
Table 15 Notes
Table 15 Note *

This table indicates LAC's other transactions with related parties for the year ended March 31, 2018. Displayed are the figures, in thousands of dollars, for both 2017 and 2018.

Return to table 15 note * referrer

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

11. Transfers from/to other government departments

On March 29, 2018, LAC transferred a piece of land to the Parks Canada Agency (PCA).

Table 16table 16 note *
Assets 2018
Tangible capital assets (net book value) (note 8) -311
Total assets transferred to PCA -311
Transfer of an account receivable -9
Total assets transferred to other departments -9
Adjustment to the departmental net financial position -320
Table 16 Notes
Table 16 Note *

This table indicates LAC's piece of land transfer to the Parks Canada Agency (PCA). Displayed are the Assets and the figures, in thousands of dollars, for 2018.

Return to table 16 note * referrer

12. Segmented information

Presentation by segment is based on LAC's Program Alignment Architecture. The presentation by segment is based on the accounting policies as described in the summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues yielded for the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Table 17table 17 note *
  2018 2017
Development of disposition authorizations Collaboration in the Management of Government Records Documentation of Canadian Society Stewardship of documentary heritage Access to Documentary Heritage Internal Services Total Total
Transfer payments 0 0 0 0 1,513 0 1,513 1,492
Operating expenses
Salaries and employee benefits 3,614 3,567 12,458 14,100 33,691 26,011 93,441 79,127
Accommodation 403 0 2,376 4,660 4,137 2,970 14,546 14,450
Professional and special services 68 39 218 4,560 1,825 3,470 10,180 9,847
Payments in lieu of taxes 0 0 0 5,743 0 0 5,743 5,609
Rental costs 1 10 15 230 55 4,608 4,919 2,738
Amortization of tangible capital assets 0 61 122 3,919 381 141 4,624 4,623
Utilities, materials and supplies 8 8 301 2,112 197 160 2,786 2,692
Acquisition of machinery and equipment 14 6 135 238 271 1,044 1,708 1,011
Repair and maintenance 0 1 3 757 46 560 1,367 4,719
Travel and relocation 19 79 112 97 363 192 862 801
Loss on disposal and write-off of tangible capital asset 0 43 0 532 0 0 575 0
Communications services 0 8 14 0 250 256 528 1,030
Other 0 22 0 13 3 104 142 210
Total operating expenses 4,127 3,844 15,754 36,961 41,219 39,516 141,421 126,857
Total expenses 4,127 3,844 15,754 36,961 42,732 39,516 142,934 128,349
 
Revenues
Miscellaneous revenues 0 47 0 29 128 59 263 247
Sales of goods and information products 0 0 0 0 190 0 190 190
Gain on disposal of non-capital assets 0 0 0 0 0 11 11 12
Revenues earned on behalf of Government 0 0 0 0 0 -59 -59 -55
Total revenues 0 47 0 29 318 11 405 394
Net cost from continuing operations 4,127 3,797 15,754 36,932 42,414 39,505 142,529 127,955
Table 17 Notes
Table 17 Note *

This table indicates the expenses incurred and revenues yielded for the main programs, by major object of expense and by major type of revenue in thousands of dollars figures, for both 2017 and 2018.

Return to table 17 note * referrer

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