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Annual Financial Report 1999-2000: 7 - Table of Contents - Previous -
Condensed Financial Statements of the Government of Canada
The fundamental purpose of these condensed financial statements is to provide an overview of the financial affairs and the resources for which the Government is responsible under authority granted by Parliament. Responsibility for the integrity and objectivity of these statements rests with the Government.
These financial statements are extracted and condensed from the audited financial statements included in Section 1 of Volume I of the 2000 Public Accounts of Canada, which are expected to be tabled in Parliament later this year. As these condensed financial statements are, by their nature, summarized, they do not include all disclosure required for financial reporting by governments in Canada. Readers interested in the disclosure of more detailed data should refer to the audited financial statements in the Public Accounts.
Table 7 Government of Canada Condensed Statement of Revenues, Expenditures and Accumulated Deficit for the Year Ended March 31, 2000
|
|
2000 |
1999 |
|
|
($ millions) |
Revenues |
|
|
Tax revenues |
|
|
Income tax |
111,493 |
102,183 |
Excise taxes and duties |
35,806 |
34,249 |
Employment insurance premiums |
18,512 |
19,363 |
|
165,811 |
155,795 |
Non-tax revenues |
12,279 |
11,748 |
Total gross revenues |
178,090 |
167,543 |
Amounts deducted to arrive at net revenues |
12,382 |
11,872 |
Total net revenues |
165,708 |
155,671 |
Expenditures |
|
|
Transfer payments |
|
|
Old Age Security and related
payments |
22,856 |
22,285 |
Other levels of government |
23,243 |
25,523 |
Employment insurance benefits |
11,301 |
11,884 |
Other transfer payments |
27,455 |
27,300 |
|
84,855 |
86,992 |
Crown corporation expenditures |
4,344 |
4,995 |
Other program expenditures |
34,946 |
31,278 |
Total gross program expenditures |
124,145 |
123,265 |
Amounts deducted to arrive at net program expenditures |
12,382 |
11,872 |
Total net program expenditures |
111,763 |
111,393 |
Interest on debt |
41,647 |
41,394 |
Total net expenditures |
153,410 |
152,787 |
Surplus for the year |
12,298 |
2,884 |
Accumulated deficit at beginning of year |
576,824 |
579,708 |
Accumulated deficit at end of year |
564,526 |
576,824 |
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Table 8 Government of Canada Condensed Statement of Assets and Liabilities as at March 31, 2000
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|
2000 |
1999 |
|
|
($ millions) |
Liabilities |
|
|
Payables, accruals and allowances |
|
|
Accounts payable and
accruals |
28,904 |
34,300 |
Allowances for guarantees
and employee benefits |
11,844 |
11,016 |
Total |
40,748 |
45,316 |
Interest-bearing debt |
|
|
Unmatured debt |
|
|
Marketable
bonds |
293,927 |
295,752 |
Treasury bills |
99,850 |
96,950 |
Canada Savings
Bonds |
26,489 |
27,662 |
Non-marketable
bonds and notes |
3,552 |
4,063 |
Total payable
in Canadian currency |
423,818 |
424,427 |
Payable in
foreign currencies |
32,588 |
36,000 |
Total |
456,406 |
460,427 |
Pension and other accounts |
|
|
Public sector
pensions |
128,346 |
122,407 |
Due to Canada
Pension Plan |
6,217 |
5,427 |
Other |
6,963 |
6,724 |
Total |
141,526 |
134,558 |
Total interest-bearing debt |
597,932 |
594,985 |
Total liabilities |
638,680 |
640,301 |
Assets |
|
|
Cash and accounts receivable |
|
|
Cash |
14,511 |
10,693 |
Accounts receivable |
4,353 |
4,580 |
Total |
18,864 |
15,273 |
Foreign exchange accounts |
41,494 |
34,668 |
Loans, investments and advances |
|
|
Enterprise Crown
corporations and other
government business enterprises |
10,562 |
11,052 |
National governments and
international organizations |
7,316 |
7,555 |
Other |
4,184 |
4,341 |
Total |
22,062 |
22,948 |
Less allowance for
valuation |
8,266 |
9,412 |
Total |
13,796 |
13,536 |
Total assets |
74,154 |
63,477 |
Accumulated deficit |
564,526 |
576,824 |
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Table 9 Government of Canada Condensed Statement of Changes in Financial Position for the Year Ended March 31, 2000
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|
2000 |
1999 |
|
|
($ millions) |
Cash provided by operating activities |
|
|
Surplus for the year |
12,298 |
2,884 |
Add expenditures not requiring cash |
8,510 |
11,016 |
|
20,808 |
13,900 |
Net payments from pension and other accounts |
(4,010) |
(3,081) |
Net change in receivables, payables and accruals |
(3,272) |
181 |
|
13,526 |
11,000 |
Cash provided by investing activities |
|
|
Net decrease in loans, investments and advances |
1,139 |
566 |
|
|
|
Cash provided by foreign exchange activities |
|
|
Net increase in foreign currency borrowings |
(3,412) |
8,817 |
Net increase in foreign exchange accounts |
(6,826) |
(5,700) |
|
(10,238) |
3,117 |
Net cash generated before financing
activities |
4,427 |
14,683 |
Cash used for financing activities |
|
|
Net decrease in Canadian currency borrowings |
609 |
15,681 |
Net increase (decrease) in cash |
3,818 |
(998) |
Cash at beginning of year |
10,693 |
11,691 |
Cash at end of year |
14,511 |
10,693 |
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Government of Canada
Notes to the Condensed Financial Statements
Significant Accounting Policies
The Government of Canada reporting entity includes all departments, agencies, corporations and funds which are owned or controlled by the Government and which are accountable to Parliament. The financial activities of all these entities are consolidated in these statements, except for enterprise Crown corporations and other government business enterprises, which are not dependent on the Government for financing their activities. These corporations are reported as investments at their original cost adjusted by an allowance for valuation to reflect their annual profits or losses. The Canada Pension Plan is excluded from the reporting entity, as it is under the joint control of the Government and participating provinces.
The Government basically accounts for transactions on an accrual basis. Two notable exceptions are tax revenues and related refunds, which are generally accounted for on a cash basis; and capital assets, which are fully charged to expenditures at the time of acquisition or construction.
As a consequence, the only assets recorded on the Condensed Statement of Assets and Liabilities are financial assets, as they can provide resources to discharge liabilities or finance future operations. Assets are recorded at the lower of cost or net realizable value. Liabilities are recorded on an accrual basis with public sector pension and severance liabilities being determined on an actuarial basis. Valuation allowances are established for loan guarantees, concessionary and sovereign loans, and other obligations.
Some amounts in these statements are based on estimates and assumptions made by the Government. By their nature, such estimates are subject to measurement uncertainty, although all of them are believed to be reasonable.
Comparative figures for 1999 are reclassified to conform to the current year’s presentation.
Reporting of Revenues and Expenditures on a Gross Basis
Detailed amounts on the Condensed Statement of Revenues, Expenditures and Accumulated Deficit are presented on a full (gross) disclosure basis only. Gross revenues include revenues of consolidated Crown corporations and revenues of government departments, agencies and funds which, on the net basis, are deducted from expenditures for budget and parliamentary authority purposes. Gross expenditures include expenditures determined through the tax system, such as child tax benefits and quarterly GST credits, that are deducted from revenues on the net basis.
Contractual Commitments
Contractual commitments that will materially affect the level of future expenditures include transfer payment agreements; benefit plans for veterans and others; capital asset acquisitions and other purchases; operating and capital leases; and funding of international organizations. At March 31, 2000, contractual commitments amounted to approximately $33 billion ($31 billion in 1999).
Contingent Liabilities
Contingent or potential liabilities that may become actual liabilities in future years include guarantees by the Government; callable share capital in international organizations; claims and pending and threatened litigation; and environmental contingencies. Contingent liabilities related to guarantees by the Government and to international organizations amount to $67 billion ($62 billion in 1999). The total amount claimed against the Government for other claims and pending and threatened litigation but not assessed is not determinable. Of these other claims, over $200 billion relates to Aboriginal and comprehensive land claims. The Government is confident that the ultimate settlement for these contingent liabilities will be for amounts significantly lower than those being disclosed.
Insurance in force relating to self-sustaining insurance programs operated for the Government by three enterprise Crown corporations amounted to approximately $555 billion ($522 billion in 1999). The Government expects that it will not incur any costs to cover the claims for these programs.
Other Sources of Information
The Public Accounts of Canada
The Public Accounts of Canada, as required under Section 64(1)
of the Financial Administration Act, are tabled in the fall
of each year by the President of the Treasury Board. This
report is presented in two volumes:
- Volume I contains the Government’s audited financial
statements and supporting schedules and information; and
- Volume II contains details of financial operations by
ministry (Part I) and additional information and analyses
(Part II).
The Budget
The budget, usually introduced in February, presents the
Government’s overall fiscal plan, incorporating revenue projections
and spending plans, which combine to determine the resulting budgetary
balance. The budget also introduces proposals for changes in taxation.
The Fiscal Monitor
This monthly newsletter produced by the Department of Finance highlights the financial results of the Government together with the reasons underlying major variances.
Debt Management Strategy
This report is tabled annually in Parliament. It provides information on the federal government’s debt management strategy for the coming fiscal year.
The Debt Management Report
This annual document provides an accounting of the key elements of federal debt strategy and describes various strategic and operational aspects of the Government’s debt program and cash management activities over the past fiscal year.
The Estimates
Each year, the Government prepares Estimates in support of its request to Parliament for authority to spend public monies. This request is formalized through the tabling of appropriation bills in Parliament. The Estimates are tabled in the House of Commons by the President of the Treasury Board and consists of three parts:
Part I – The Government Expenditure Plan provides an overview of federal spending and summarizes the relationship of the key elements of the Main Estimates to the Expenditure Plan set out in the budget.
Part II – The Main Estimates directly support the Appropriations Act.
Part III – Departmental Expenditure Plans, which consist of two components – Reports on Plans and Priorities and Departmental Performance Reports. |
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