Annual Report of the Canada Pension Plan 2001-2002
Management's Responsibility for Financial Statements
The financial statements of the Canada Pension Plan have been prepared by management of Human Resources Development Canada in accordance with the accounting policies set out in Note 2 to the financial statements.
Management is responsible for the integrity and objectivity of the data in these financial statements, including the amounts which must, of necessity, be based on best estimates and judgements. The financial information presented throughout the Annual Report is consistent with the financial statements.
In support of its responsibility, management has developed and maintains books of account, financial and management controls, information systems and management practices. These are designed to provide reasonable assurance as to the reliability of the financial information, and to ensure that the transactions are in accordance with the Canada Pension Plan and regulations, as well as the Financial Administration Act and regulations.
The Auditor General of Canada, the external auditor of the Canada Pension Plan, has conducted an independent audit of the financial statements in accordance with Canadian generally accepted auditing standards and has reported to the Minister of Human Resources Development Canada.
Alan Winberg
Assistant Deputy Minister
Financial and Administrative Services
Maryantonett Flumian
Associate Deputy Minister
July 25, 2002
AUDITOR'S REPORT
To the Minister of Human Resources Development Canada
I have audited the statement of net assets of the Canada Pension Plan as at March 31, 2002 and the statement of changes in net assets for the year then ended. These financial statements are the responsibility of the management of Human Resources Development Canada. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In my opinion, these financial statements present fairly, in all material respects, the financial position of the Canada Pension Plan as at March 31, 2002 and the changes in its net assets for the year then ended in accordance with the significant accounting policies set out in Note 2 to the financial statements.
Sheila Fraser, FCA
Auditor General of Canada
Ottawa, Canada
July 25, 2002
| 2002 | 2001 | ||
|---|---|---|---|
| Assets | |||
| Investments | |||
| CPP Investment Fund - at cost (Note 3) | |||
| Provincial and Territorial bonds | 24,890 | 26,188 |
|
| Canada bonds | 3,386 | 3,403 | |
| CPP Investment Board - at fair value (Note 4) | |||
| Canadian equities | 10,114 | 5,024 | |
| Non-Canadian equities | 4,175 | 2,131 | |
| Cash | |||
| Deposit with Receiver General for Canada | 6,770 | 6,420 | |
| Receivables | |||
| Contributions | 1,594 | 1,415 | |
| Accrued interest | 1,030 | 1,139 | |
| Régime des rentes du Québec | 25 | 24 | |
| Beneficiaries (Note 5) | 43 | 46 | |
| 52,027 | 45,790 | ||
| Liabilities | |||
| Accounts payable | 47 | 51 | |
| Accrued pensions and benefits | 51 | 50 | |
| CPP Investment Board's liabilities, net of its other assets | 4 | 1 | |
| 102 | 102 | ||
| Net Assets | 51,925 | 45,688 | |
| Net Assets, represented by: | |||
| Canada Pension Plan Investment Fund | 28,276 | 29,591 | |
| Accumulated transfers to Canada Pension Plan Investment Board | 14,372 | 7,546 | |
| Accumulated net loss from Investment Board's operations | (87) | (391) | |
| Canada Pension Plan Account (Note 6) | 6,770 | 6,420 | |
| CPP receivables, net of liabilities | 2,594 | 2,522 | |
| Net Assets | 51,925 | 45,688 | |
The accompanying notes are an integral part of these financial statements.
Approved by Human Resources Development Canada:
Alan Winberg
Assistant Deputy Minister
Financial and Administrative Services
Maryantonett Flumian
Associate Deputy Minister
| 2002 | 2001 | ||
|---|---|---|---|
| Net assets, beginning of year | 45,688 | 41,261 | |
| Increase in assets | |||
| Contributions (Note 7) | 23,533 | 21,407 | |
| Investment Income (Note 8) | 3,565 | 2,849 | |
| 27,098 | 24,256 | ||
| Decrease in assets | |||
| Pensions and Benefits(Note 9) | |||
| Retirement | 14,270 | 13,527 | |
| Survivors | 2,933 | 2,802 | |
| Disability | 2,641 | 2,546 | |
| Disabled Contributor's Child | 242 | 233 | |
| Death | 227 | 213 | |
| Orphan | 205 | 198 | |
| Less: Net overpayments | 28 | 25 | |
| 20,490 | 19,494 | ||
| Administration costs (Note 10) | 371 | 335 | |
| 20,861 | 19,829 | ||
| Increase in net assets | 6,237 | 4,427 | |
| Net assets, end of year | 51,925 | 45,688 | |
The accompanying notes are an integral part of these financial statements.