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Annual report for 2004-2005Laying a Foundation
This publication can be viewed or printed in PDF: 598 KB. TABLE OF CONTENTS
Chief Executive Officer's MessageAs the new Chief Executive Officer of Passport Canada, I am pleased to outline the achievements, and challenges, faced by this Agency in Fiscal Year 2004-2005. The format of this Annual Plan has been revised to introduce clear indicators and measures that can be used to gauge our performance over time. It outlines our mission, our vision, our values and our strategic objectives. It provides a comprehensive look across the organization as we provide citizen-focused service mindful of the new security environment in which we operate. It outlines how our program delivers on broader policy objectives of the Government of Canada, and it addresses our performance and stewardship of the resources available to us in meeting these objectives. Our commitment to laying a strong, new foundation for this Agency has lead to significant accomplishments over the last year including organizational changes, legislative amendments, the strengthening of security functions and continuous service improvements. In doing so we are positioning Passport Canada to better respond to transformational changes to come. In September 2004, three amendments to the Canadian Passport Order were brought into force. These amendments are a significant step in further strengthening the security of the issuance process. The first amendment provides for the Minister of Foreign Affairs to refuse and/or revoke a passport on the grounds of national security. The second amendment provides Passport Canada with the authority to introduce a microchip into the passport. Also known as an e-Passport, the biometric chip will contain the same biographical information contained on page 2 of a Canadian passport and will confirm that the identity of the bearer of the document who appears at a port-of-entry, is the same person to whom it is issued. The third amendment authorizes Passport Canada to introduce facial recognition technology within its databanks to assist with the identification of incidents involving multiple identity and fraud. This year has seen Passport Canada conclude a number of agreements and Memoranda of Understanding (MOU) with other government departments while also strengthening the legal framework in which this Agency operates. We have signed an MOU with Correctional Service Canada that will provide us with data on offenders along with a daily electronic update of this information. As well, we have signed an MOU with Citizenship and Immigration Canada, Canadian Border Services Agency, and Interpol, via the Royal Canadian Mounted Police, to share real time information regarding lost and stolen passports. As a result, Canadians who have reported their passports lost or stolen can be assured that their documents are not being abused or misused by others. While the integrity of the passport issuance process remains our top priority, in the last year we have continued to make investments in serving Canadians better. We have launched an ambitious number of projects to help us broaden access while still strengthening compliance. What we have accomplished in this last year lays the foundation for the years to come. In 2004-2005, we expanded the Receiving Agent network. In partnership with Canada Post, we added 51 new locations and our work with Service Canada will see a further expansion of the network. The launch of the Passport Renewal pilot project was also a significant step in bettering service to Canadians. The pilot project allowed us to invite previous passport holders, who are known to us, to apply using a simplified process. The success of this project is a foundation for the future and we are already investing in the next phase of the project. In an effort to ease the application process for Canadians, we unveiled our Passport on-line (POL) program. By leveraging technology for service and security, we are able to offer Canadians the choice to fill in their application on-line and then present themselves at one of our offices to complete the process. Continuous service improvement is only possible by the commitment of employees throughout the organization. Passport Canada is fortunate to have a dedicated, committed and expert workforce now numbering over 1800 employees in 33 offices across Canada. Unlocking their potential through investments in learning and training, providing them with an environment in which they can focus on authenticating identity and determining entitlement, and inspiring them with an innovative workplace are our commitments, and our challenges. I would like to recognize and thank them for ensuring that over 2,700,000 Canadians received their passports this year. I would also like to take this opportunity to acknowledge the service and dedication of Kathryn McCallion, Assistant Deputy Minister for Corporate Services, Passport and Consular Affairs at Foreign Affairs Canada. Her leadership of the Passport Office was instrumental as it grew over many years to become, in 2005, Passport Canada. Finally, I would like to join our Minister in acknowledging the importance of maintaining the respect and integrity of the Canadian passport. Passport Canada and its employees are mindful of this responsibility every day.
Doreen Steidle
IntroductionPassport Canada was established in 1990 as a Special Operating Agency (SOA) of Foreign Affairs Canada, reporting to Parliament through the Minister of Foreign Affairs. Using a revolving fund, Passport Canada funds its operations primarily through fees charged to clients rather than through funds allocated from the federal budget. Passport Canada's mandate is derived from the Canadian Passport Order under which Passport Canada is accountable for all matters related to the issuance and use of Canadian passports and travel documents. Our MissionTo issue internationally respected travel documents. Our VisionIn a rapidly changing policy and technological environment, we aim to:
Our Values
Our PartnersTo ensure security and service objectives are met, Passport Canada works closely with:
Collaboration with partner organizations allows Passport Canada to both share and benefit from a diverse range of perspectives and expertise, ensuring that we stay current and engaged with developments in secure travel and identity systems, cutting edge approaches to excellence in customer service, and the best in management and accountability practices. Annual ReportThis annual report covers Passport Canada fiscal year April 1, 2004 to March 31, 2005. It sets out how Passport Canada has performed against key corporate targets. The Year in Review |
Service Channel | Service Type | Service Standard - 100% | 2003-2004 | 2004-2005 |
---|---|---|---|---|
Passport Canada Offices | Regular | 10 working days | 96.53% | 97.42% |
Passport Canada Offices | Urgent | next working day | 98.3% | 98.83% |
Passport Canada Offices | Express | 2 - 9 working days | 99.78% | 99.88% |
Mail-In | Regular | 20 working days | 94.87% | 94.66% |
Canada Post receiving agents | Regular | 15 working days | 98.16% | 77.00% |
Service Canada receiving agents | Regular | 20 working days | na | 85.50% |
Renewal | Regular | na | 99.99% | |
Passport on-line | Regular | 10 working days | na | 98.50% |
Improvements in wait and turnaround times are attributed to several factors, including:
Our call centre also experienced service improvements:
The Client Satisfaction Survey was held from April 18 to May 23, 2005, and polled clients had applied for and received a passport between January 1 and March 31, 2005. Survey results show overall improvements over the previous year, including:
All Passport Canada's activities are based on authenticating the identity of applicants who apply for documents, determining their entitlement to a travel document, and ensuring that the documents which are issued meet the highest standards of security and integrity. We do so while striving to improve client service and client access to service.
Our strategic priorities flow from our mission, our vision and our values. Because of the increasing emphasis on security and identity in our national and international operating environments, Passport Canada has adopted three new strategic objectives in 2004-2005 by which we have aligned our key activities and planning processes. These objectives continue to support the progress we are making in service delivery in response to volume pressures while reinforcing compliance to security and identity activities. To do both, as an Agency, Passport Canada must inspire innovation, improvement and excellence.
Our Strategic Priority of Broadening Accesscommits us to find ways to increase both the means by which Canadians can apply for passport services and the convenience associated with those means.
Passport Canada values the high level of customer satisfaction identified by clients. Efforts in this area are targeted to respond to client needs and to ensure that we maintain this level of customer satisfaction in the future by expanding our services. The groundwork for the following key activities commenced over the previous year, laying a solid foundation for these areas to expand over the next three years. These activities include:
For the fifth consecutive year, Canada ranked first in accentures global egovernment survey published on 6 April 2005. E-government is now a key channel for the delivery of public services in the country, representing almost a third of transactions between the federal government and citizens.
- Government News, April 8, 2005
Introduction of passport renewals: In the summer of 2004, the Renewals Pilot Project was launched. Using a targeted mail-out, over 38,000 Canadians were invited to renew their passports through a simplified mail-in process.
Implementation of Passport on-line: The Passport online Project began as a direct result of the drive within the Government of Canada to provide key government services on-line. The project leverages Internet technology to provide applicants with greater access to passport services. In 2004-2005, an interactive on-line form was developed and launched marking the first step towards the availability of full Internet based passport application services.
Piloting of Receiving Agents Project: Significant progress on this project was made in 2004-2005 such that it has moved from a pilot phase to maintenance and management phase. The project broadens access to passport services through networks outside of Passport Canada offices. In September 2004, 58 Canada Post outlets began to receive passport applications, providing additional channels to access passport service. By the end of 2004 three designated Service Canada Centres also became receiving agents. In 2004-2005, these 61 receiving agents resulted in the issuance of over 57,000 passports.
Foreign issuance of passports: Treasury Board approved the Mission Passport Print Solution (MPPS) Project and committed capital costs required for implementation. The aim of the MPPS project is to standardize the production of passports to ensure the most secure travel documents for all Canadians. In 2004-2005, Passport Canada has identified the Mississauga print centre as the centralized production site.
During the last year, Passport Canada carried out several other initiatives aimed at broadening access to our services, including:
The Passport Canada strategic priority of Strengthening Compliancecalls upon us to ensure that Canadian passports are designed, issued, and managed in a context that recognizes international requirements, expectations and developments for travel documents. By strengthening compliance we seek to improve the security of Canadian travel documents and the integrity of the entitlement process.
Passport Canada must recognize and respond to a changing global environment. To ensure that the Canadian passport maintains its high level of respect and that we contribute to efforts in identity authentication and secure document processes, activities undertaken over 2004-2005 have been implemented in order to strengthen our efforts to further detect and reduce fraud. These activities include the following:
The link between Canada's economic health and the security of its southern neighbour has long been established... To that we must add a further link. The security of the bi-lateral relationship hinges in part on the security of the Canadian passport.
- David Rudd, President and Executive Director of the Canadian Institute of Strategic Studies
Evaluation of facial recognition technology: Facial recognition is a way to identify a person by their unique facial features, using advanced computerized recognition techniques. Passport Canada completed a study of concepts and products in the use of facial recognition and a Treasury Board submission seeking Effective Project Approval for the implementation of facial recognition was completed. The Treasury Board submission will proceed in 2005- 2006.
Expansion of the National Routing System (NRS) Project: Due to funding constraints during 2004- 2005, Passport Canada's National Routing System (NRS) Project devoted most of its limited resources to advancing the NRS's pilot sub-project, an integral phase of the development stage of the NRS Project. Activities completed within the pilot sub-project have resulted in the pilot project being in a position to start development and testing work in early 2005-2006 in anticipation of a summer 2005 "go live" date.
New booklet design integrating new technology: Significant progress was made in identifying design options for a new booklet integrating new technology. Initially planned to improve upon the booklet with digitized photos, the scope of new booklet design was expanded to include an examination of new chip enabled passports, the e- Passport. Project planning for a limited pilot of a new e-Passport booklet using diplomatic and special passports was completed. The pilot project will launch in 2005-2006, pending Treasury Board approval.
Participation with G8 counterparts in a common database of lost-stolen travel documents: In September 2004, Passport Canada signed a memorandum of understanding (MOU) with Interpol, to share lost and stolen passport information.
2004-2005 was marked by an increasing organizational focus on security matters. As such, numerous additional achievements in this area were a key part of our overall success. Additional highlights include:
Passport Canada concluded a number of Memoranda of Understanding (MOU) with:
Document identification tools were developed and distributed to strengthen the ability of passport examiners to verify the authenticity of identity documentation. A standardized tool for the conduct of guarantor checks was also developed.
The Passport Canada strategic priority of Continuous Improvementreflects our commitment to constantly evaluate and reassess our business practices and operations to make them better. This strategic priority recognizes and addresses the need for a solid foundation on which to build our security and service efforts, and a corporate framework that promotes excellence in all we do. Under this strategic priority, Passport Canada will lay the foundation to support strengthened leadership and accountability, improved planning and communication, and quality and efficiency in all aspects of its business. Continuous corporate improvement is an essential element in supporting Passport Canada's transformation as we envision it.
The ability to improve on security and service requires that the necessary tools and processes be put in place to facilitate improvement. Employees have demonstrated their dedication and commitment to Passport Canada by going the extra mile to ensure that, to the best of their ability, service standards are met. In 2004-2005 we have begun to review and revise processes and systems to relieve the pressure on our employees while improving service, we have started planning for the future by reviewing our business processes and we are developing and implementing a human resources plan to respond to the needs of the organization.
Activities under the strategic priority of continuous improvement are in the areas of:
Passport Canada improved in the area of stewardship through the implementation of activities related to business continuity, financial management and business processes:
Review and standardisation of the mail-in and member of parliament processes: Passport Canada completed a process review and standardization pilot for the mail-in and member of Parliament sections, and a printing process review at the Mississauga Print Centre. Lean methodology was used to review and refine the processes of these sections. Evaluation of each pilot found that we were able to favourably influence productivity, reducing cost and time.
Development of a Business Continuity Plan: Business continuity plans were completed in accordance with Government Security Policy. The business continuity plans respond to all missioncritical processes. They detail the protection of critical assets in the face of a crisis or emergency. Passport Canada prepared a specific plan for each office. We also prepared generic regional plans. These are living plans: we will update them as processes change, such as progress on the Passport on-line and receiving agent projects outlined above.
Development of a modified volume forecasting model: New client surveys were implemented to gather information on client behaviour that may impact demand, for example measuring the client response to the Western Hemisphere Travel Initiative. Results of these surveys are now incorporated in the forecasting model.
Ongoing review of volume and budget: Passport Canada's Executive Committee reviews, on a monthly basis, the actual versus forecasted passport volume as well as the actual versus forecasted budget.
Development of a Quality Improvement Framework: Passport Canada developed a Quality Policy and Continuous Improvement Model. To support both the policy and model, a Continuous Improvement Council was established. Elements of the Quality Improvement Framework serve to integrate improvement processes and quality initiatives across Passport Canada.
Development of a Strategic Management Framework: Passport Canada began the development of a Strategic Management Framework. The framework utilizes the Balanced Scorecard approach to performance measurement and reporting and will promote the alignment of resources to organizational objectives.
As a learning organization we continue to improve our programs and policies which reflect our desire to respect demographic changes in Canada, government policies, and legislative changes as well as the changing needs of our business.
Implementation of a Human Resources Action Plan: Passport Canada has continued the ongoing implementation of the Human Resources Strategic Action Plan. We have reviewed elements of the action plan to incorporate potential impacts that stem from implementing the Public Service Modernization Act. Over the course of the current planning period, the Human Resources Action Plan will be integrated with strategic planning.
Creation of a Strategic Human Resources Planning Guide: This Guide has been created to address the emerging need for a more strategic approach to planning for, and identifying, our human resources requirement at Passport Canada. Also, this Guide was designed to work as a tool to assist managers in developing their human resource plans for the coming years, and to anticipate the impacts of changes
Implementation of an Informal Conflict Management System Framework: Passport Canada developed its Informal Conflict Management System Framework in consultation with union representatives, managers, legal services, HR services, communications, regional representatives and central operations representatives. This framework was implemented on April 1st, 2005.
Passport Canada continually seeks ways to improve processes and tools that will result in better client service.
Review and standardization of correspondence and public enquiries: The Correspondence and Public Enquiries section took measures to improve its turnaround time on responding to letters and e-mails from the public by reviewing and implementing standards such as 48 hours/2 days for Infopass enquiries and 25 days for CEO and Ministerial correspondence. Performance measures will be implemented in 2005-2006 to evaluate performance against these standards.
Review and standardization of the front counter process: Review and standardization of the front counter process was reconsidered in 2004-2005, and is now part of phase I of the larger Next Generation Issuance System project.
Review of IRIS® Foundation: A third party independent audit of our passport issuance system took place and found that the foundation of the system was sound, but that performance and maintenance improvements would be best achieved through the development of a new system.
A Project Management Bureau was created to approve and manage various Passport Canada projects and ensure successful implementation.
Implementation of the Project Management Framework: A formalized framework for major projects has been developed and implemented to ensure that projects are delivered in a timely manner, within budget, while achieving the objectives of the organisation.
Creation of the Project Approval Board (PAB): A Project Approval Board was established to review new projects requesting capital funding. Based on the review of the projects, recommendations are made to the Executive Committee as to which projects should receive capital funding and a proposed priority list of projects for the organization is recommended.
Creation of a Project Review Board (PRB): A Project Review Board was established to review ongoing projects at critical points in the project cycle. The board determines whether projects continue to meet financial and performance objectives and the overall objectives of the organization.
Passport Canada undertook a major revision of the tools used in the examiner-training program, refreshing them and bringing them up to date with developments in identity and security issues.
The creation of a Policy and Planning Bureau to provide a centre of expertise in support of Passport Canada's expanding policy role in both identity and security related issues.
A Corporate Learning Policy was developed and adopted, detailing our commitment to being a learning organization. A Corporate Learning Plan was also developed, outlining specific learning and development initiatives including reviewing organizational core competencies, surveying employee-learning needs, establishing learning plans, and strengthening our commitment to performance reviews for all employees.
Over the next five years, Passport Canada will be working on developing a comprehensive plan that will enable the vision that has been set forth to be achieved, and for improvements in service delivery to be implemented. Presently, Passport Canada is concentrating efforts on addressing the issues identified in the 2004 Auditor General Report, with significant steps already in place and many more planned. In addition, we are preparing to respond to a potentially significant volume increase in passport applications as a consequence of the new travel requirements in the United States, as decreed by the Western Hemisphere Travel Initiative and which is set to come into effect in 2007.
Leveraging horizontal partnerships and technology, Passport Canada is positioning itself to broaden the access of Canadians to passport services. Building upon continuous improvements in security, we are strengthening our processes and ensuring that we continue to produce internationally respected travel documents. Continuously seeking improvement as an organization whose resources are its greatest strength, we are striving to identify and implement effective and efficient corporate practices.
As strategic objectives, these achievements lay a stable foundation for transformational change to come. While the pace and extent of the change ahead will present its challenges, the strength of Passport Canada and the core from which all its successes flow, are its people. In working toward meeting international standards through the development and implementation of advanced technological and security measures, along with continuing to make client satisfaction our highest priority, we will ensure that Passport Canada will maintain its position as a global leader in the field of secure identity and travel documents.
The accompanying financial statements for 2004-05 of the Passprot Canada Revolving Fund have been prepared as required by and in accordance with the policy of the Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada. The primary responsibility for the interity and objectivity of the data in these financial statements rests with the management of the Fund.
The financial statements were prepared in accordance with the significant accounting policies on a basis consistent with that of the preceding year, as set out in Note 2. Some of the information included in these financial statments is based on managment's best estimates and judgments and gives due consideration to materiality. To fulfill this reporting responsibility, the Fund maintains a set of accounts that provide a centralized record of the Fund's financial transactions. Financial information contained in the ministerial statments and eslwhere in the Public Accounts of Canada is consistent with that in these financial statements, unless indicated otherwise.
The Financial and Administrative Services Directorate of the Passport Canada Revolving Fund complies with departemental financial management and accounting policies, develops those specific to the Fund's requirements and issues manuals and directives that maintain these policies and which describe procedures. The Fund maintains systems of fincancial management and internal accounting controls that provide management with reasonable assurance that transactions are recorded and executed in accordance with its authorizations and that its assets are safeguarded.
Approved by:
Denis Fortier
Director General, Corporate Services
Doreen Steidle
Chief Executive Officer, Passport Canada
To the Assistant Deputy Minister,
Foreign Affairs Canada
Passport Canada Revolving Fund
We have audited the statement of financial position of Passport Canada Revolving Fund as at March 20, 2005 and the statements of operations, accumulated surplus and cash flows for the year then ended. These financial statements are the responsibility of the management of the Passport Canada Revolving Fund. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we 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 our opinion, these financial statements present fairly, in all material respects, the financial position of the Passport Canada Revolving Fund at March 31, 2005 and the results of its operations and its cash flows for the year then ended in accordance with the basis of accounting for revolving funds of the Government of Canada as described in note 2 to the financial statements.
These financial statements, which have not been, and were not intended to be, prepared in accordance with the Canadian generally accepted accounting principles, are solely for the information and use of the Assistant Deputy Minister of Foreign Affairs Canada and for complying with the Revolving Funds Act. The financial statements are not intended to be and should not be used by anyone other than the specified users or for any other purpose.
Chartered Accountants
Ottawa, Canada
May 20, 2005
As of March 31, 2005
(In thousands of dollars)
2005 | 2004 | |||
---|---|---|---|---|
Assets | ||||
Current: | ||||
Accounts receivables: | ||||
Government of Canada (Note 6) | $ | 4,109 | $ | 196 |
Outside parties | 762 | 191 | ||
Inventories | 4,084 | 4,116 | ||
Prepaid expenses | 1,509 | 2,078 | ||
10,464 | 6,581 | |||
Long-term: | ||||
Capital assets (Note 3): | ||||
At cost | 109,769 | 92,976 | ||
Less accumulated amortization | 65,533 | 54,480 | ||
44,236 | 38,496 | |||
$ | 54,700 | $ | 45,077 | |
Liabilities and Equity of Canada | ||||
Current: | ||||
Accounts payables and accrued liabilities: | ||||
Government of Canada (Note 6) | $ | 6,150 | $ | 4,385 |
Outside parties: | ||||
Accounts payable | 8,019 | 7,156 | ||
Vacation pay | 2,627 | 2,371 | ||
Contractors' holdbacks | 90 | 101 | ||
Current portion of the provision for employee termination benefits | 226 | 188 | ||
Current portion of the loan payable (Note 7) | - | 4,477 | ||
17,112 | 18,678 | |||
Long-term: | ||||
Provision for employee termination benefits | 10,913 | 9,541 | ||
10,913 | 9,541 | |||
Equity of Canada (Note 4): | ( 16,683) | ( 20,063) | ||
Accumulated net charge against the Fund's authority | 41,128 | 36,921 | ||
Accumulated surplus | 2,230 | - | ||
Contributed capital ( Note 8) | 26,675 | 16,858 | ||
Commitments (Note 5) | ||||
$ | 54,700 | $ | 45,077 | |
The accompanying notes are an integral part of the financial statements.
For the year ended March 31, 2005
(In thousands of dollars)
2005 | 2004 | |||
---|---|---|---|---|
Balance, beginning of year | $ | 36,921 | $ | 27,929 |
Net profit | 4,207 | 8,992 | ||
Balance, end of year | $ | 41,128 | $ | 36,921 |
The accompanying notes are an integral part of the financial statements.
For the year ended March 31, 2005
(In thousands of dollars)
2005 | 2004 | |||
---|---|---|---|---|
Revenues: | ||||
Fees earned | $ | 166,843 | $ | 158,103 |
Miscellaneous revenues | 370 | 267 | ||
167,213 | 158,370 | |||
Operating expenses: | ||||
Salaries and employee benefits | 92,687 | 84,414 | ||
Provision for employee termination benefits | 1,783 | 1,461 | ||
Passport materials | 12,107 | 12,498 | ||
Freight, express and cartage | 13,559 | 9,229 | ||
Amortization of capital assets | 11,091 | 8,862 | ||
Accommodation | 9,875 | 7,692 | ||
Professional and special services | 8,456 | 7,642 | ||
Passport operations at missions abroad (Note 6) | 4,447 | 4,447 | ||
Printing, stationery and supplies | 2,823 | 3,094 | ||
Repair and maintenance | 2,679 | 2,630 | ||
Telecommunications | 2,394 | 1,961 | ||
Information | 1,920 | 1,774 | ||
Travel and removal | 1,565 | 1,589 | ||
Postal services and postage | 1,370 | 1,448 | ||
Rentals | 302 | 276 | ||
Interest | 7 | 243 | ||
Miscellaneous expenses | 418 | 118 | ||
167,483 | 149,378 | |||
(270) | 8,992 | |||
Gain on loan forgiveness (Note 7) | 4,477 | - | ||
Net profit | $ | 4,207 | $ | 8,992 |
The accompanying notes are an integral part of the financial statements.
For the period ended March 31, 2004
(In thousands of dollars)
2005 | 2004 | |||
---|---|---|---|---|
Operating activities: | $ | 4,207 | $ | 8,992 |
Net profit | ||||
Add items not affecting cash: | ||||
Provision for employee termination benefits | 1,410 | 1,314 | ||
Amortization of capital assets | 11,091 | 8,862 | ||
Deferred leasehold inducements | - | (253) | ||
Accrued interest on loan | - | 231 | ||
16,708 | 19,146 | |||
Changes in current assets and liabilities (Note 9) | (1,010) | 5,461 | ||
Investing activities | ||||
Capital assets acquired | (16,831) | (16,322) | ||
Financing activities | ||||
Repayment of the loan payable | (4,477) | (4,500) | ||
Contributed capital (Note 8) | 2,230 | - | ||
Net financial resources used and changed in the accumulated net charge against the Fund's authority account, during the year | (3,380) | 3,785 | ||
Accumulated net charge against the Fund's authority account, beginning of year | 20,063 | 16,278 | ||
Accumulated net charge against the Fund's authority account, end of year | $ | 16,683 | $ | 20,063 |
The accompanying notes are an integral part of the financial statements.
March 31, 2005
The Passport Canada Revolving Fund (the "Fund") was established in 1969 to provide for the issue of appropriate travel documents to Canadian citizens and to certain permanent residents of Canada who are unable to obtain valid passports from their country of origin. The Revolving Funds Act authorized the operation of the Fund.
The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, capital acquisitions and temporary financing of accumulated operating deficits, the total of which is not to exceed $4,000,000 at any time. An amount of $746,000 representing net assets assumed by the Fund and assets contributed to the Fund was charged to this authority when the Fund became budgetary in 1981. Passport Canada is a non-taxable entity.
These financial statements have been prepared in accordance with the significant accounting policies set out below to comply with accounting requirements prescribed by the policy of Treasury Board on revolving funds and the reporting requirements and standards of the Receiver General for Canada for financial statements prepared under the Revolving Funds Act. The basis of accounting used in these financial statements materially differs from Canadian generally accepted accounting principles because:
Revenues from passport fees are recognized upon application and receipt of payment.
The inventory of materials and supplies is carried at cost using the average cost method.
Leasehold improvements are amortized on a straight-line basis over the term of the leases. Capital assets are recorded at cost and amortized from the year of acquisition on a straight-line basis over their estimated useful lives as follows:
Asset | Years |
---|---|
Leasehold improvements | Term of lease |
Furniture | 10 years |
Electronic data processing (EDP) equipment | 3 - 5 years |
Other machines and equipment | 5 years |
Effective April 1, 1994, all expenditures associated with the Technology Enhancement Plan Project (TEP) were capitalized. The project costs have been separated in four categories, which are amortized on a straight-line basis over the useful life of each category as follows:
Asset | Years |
---|---|
Technology Enhancement Plan (TEP) | |
Machines and equipment | 10 years |
System | 4 years |
Furniture | 10 years |
Electronic data processing (EDP) equipment | 4 years |
All project costs for the other capital projects are amortized on a straight-line basis over the useful life of the project.
Passport Canada does not carry insurance on its properties. This is in accordance with the Government of Canada policy of self-insurance.
Employees of the Fund are entitled to specified termination benefits, calculated based on salary levels in effect at the time of termination as provided for under collective agreements and conditions of employment. The cost of these benefits is recorded in the accounts as the benefits accrue to the employees.
Employees of Passport Canada are covered by the Public Service Superannuation Plan administered by the Government of Canada. Under present legislation, contributions made by Passport Canada to the Plan are limited to an amount equal to the employee's contributions on account of current service. These contributions represent the total pension obligations of Passport Canada and are charged to operations on a current basis. Passport Canada is not required under present legislation to make contributions with respect to actuarial deficiencies of the Public Service Superannuation Account and/or with respect to charges to the Consolidated Revenue Fund for the indexation of payments under the Supplementary Retirement Benefits Act.
The fair value of the Fund's financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximates carrying value.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The more significant areas requiring the use of estimates relate to employee termination benefits and to accrued liabilities. Actual results could differ from those estimates. These estimates are reviewed annually and as adjustments become necessary, they are recorded in the financial statements in the period in which they become known.
(In thousands of dollars)
Capital assets | Balance, beginning of year | Acquisitions | Disposals | Balance, end of year | ||||
---|---|---|---|---|---|---|---|---|
Technology Enhancement Plan Project | $ | 33,877 | $ | - | $ | - | $ | 33,877 |
Other capital projects | 49,476 | 23,338 | 6,674 | 66,140 | ||||
Furniture | 2,360 | - | - | 2,360 | ||||
EDP equipment | 6,961 | 107 | 31 | 7,037 | ||||
Other machine and equipment | 302 | 53 | - | 355 | ||||
$ | 92,976 | $ | 23,498 | $ | 6,705 | $ | 109,769 |
Accumulated amortization | Balance, beginning of year | Acquisitions | Disposals | Balance, end of year | ||||
---|---|---|---|---|---|---|---|---|
Technology Enhancement Plan Project | $ | 33,061 | $ | 658 | $ | - | $ | 33,719 |
Other capital projects | 16,385 | 8,781 | - | 25,166 | ||||
Furniture | 2,114 | 195 | - | 2,309 | ||||
EDP equipment | 2,736 | 1,393 | 31 | 4,098 | ||||
Other machine and equipment | 184 | 57 | - | 241 | ||||
$ | 54,480 | $ | 11,084 | $ | 31 | $ | 65,533 |
Other capital projects category includes leasehold improvements.
Accumulated net charge against the Fund's authority is the cash position of the Fund, held by the Government on the Fund's behalf.
The accumulated surplus is an accumulation of each year's surpluses including the absorption of the opening net assets of $746,000 upon establishment of the Fund.
(In thousands of dollars)
Passport Canada rents office premises and other office equipment under long-term operating leases, which expire in 2011. Future minimum lease payments by year are approximately as follows:
2006 | 10,549 | |
2007 | 10,710 | |
2008 | 10,682 | |
2009 | 10,385 | |
2010 | 1,225 | |
$ | 43,551 |
Passport Canada signed a contract for the purchase of passport materials, which expires in May 2008. Future minimum payments by year are approximately as follows:
2006 | 9,082 | |
2007 | 9,082 | |
2008 | 5,485 | |
$ | 23,649 |
Through common ownership, Passport Canada is related to all Government of Canada created departments, agencies and Crown corporations. Payments for passport operations at missions abroad, accommodation and legal services are made to related parties in the normal course of business. All related party transactions are accounted for at the exchange amount, which represents the consideration agreed to by both parties. As part of its operations Passport Canada, which is an agency of the Department of Foreign Affairs Canada (FAC), collects consular fees on behalf of FAC Consular Affairs division. These fees are not recorded as revenues in the statement of operations. In fiscal year 2005, the Fund collected and remitted to FAC $55,816,353 (2004 - $51,594,200) in consular fees.
During the 2005 fiscal year the Department of Foreign Affairs Canada (FAC) authorized the forgiveness of the balance of the loan payable in the amount of $4,477,000. This amount had been repaid in June 2004 and was returned by FAC in March 2005.
Passport Canada received $2,230,000 from Treasury Board to fund two capital projects. As of March 31, 2005, $870,844 had been spent on the two projects, which are expected to be completed in the fiscal year ending March 31, 2006.
(In thousands of dollars)
2005 | 2004 | |||
---|---|---|---|---|
Changes in current assets and liabilities: | ||||
Accounts receivables - Government of Canada | $ | (3,913) | $ | 2,809 |
Accounts receivables - Outside parties | (571) | 66 | ||
Inventories | 32 | (468) | ||
Prepaid expenses | 569 | 158 | ||
Accounts payable and accrued liabilities: | ||||
Government of Canada | 1,765 | 2,724 | ||
Outside parties - accounts payable | 863 | 170 | ||
Outside parties - vacation pay | 256 | 271 | ||
Outside parties - contractors' holdbacks | (11) | (269) | ||
$ | (1,010) | $ | 5,461 |
Certain amounts for the 2004 fiscal year have been reclassified to make them comparative with the current year.
Alberta | |
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Calgary
Suite 254 Harry Hays Building 220-4th Avenue South East Office hours: 08:30 - 13:30 | Calgary (South) (Anglais seulement)
14331 Macleod Trail SW Office hours: 08:30 - 16:30 |
Edmonton
Suite 126 Canada Place Building 9700 Jasper Avenue Office hours: 08:30 - 16:15 | |
British Columbia | |
Richmond (Anglais seulement)
Suite 135 8011 Saba Road Office hours: 08:30 - 16:00 | Surrey (Anglais seulement)
Suite 900 13401-108th Avenue Office hours: 08:00 - 16:30 |
Vancouver
Suite 200 Sinclair Centre 757 Hastings Street West Office hours: 07:30 - 16:30 | Victoria
5th Floor 747 Fort Street Office hours: 08:30 - 16:30 |
Manitoba | |
Winnipeg
Suite 400 433 Main Street Office hours: 08:00 - 16:00 | |
New Brunswick | |
Fredericton
Suite 430 Frederick Square 77 Westmorland Street Office hours: 08:30 - 16:30 | |
Newfoundland and Labrador | |
St. John's (Anglais seulement)
Suite 802 TD Place 140 Water Street Office hours: 08:30 - 16:30 | |
Nova Scotia | |
Halifax
Suite 1508, 15th Floor Maritime Centre 1505 Barrington Street Office hours: 08:30 - 16:30 | |
Ontario | |
Brampton (Anglais seulement)
Suite 401 40 Gillingham Drive
Office hours: 08:00 - 16:00 | Scarborough (Anglais seulement)
Suite 210 200 Town Centre Court Office hours: 08:00 - 16:30 |
Hamilton
Suite 330 Standard Life Building 120 King Street West Office hours: 08:45 - 16:30 | St. Catharines
Suite 600 Landmark Building 43 Church Street Office hours: 08:45 - 16:30 |
Kitchener
Suite 630 The Galleria 101 Frederick Street Office hours: 08:45 - 16:30 | Thunder Bay
2nd Floor 979, rue Alloy Office hours: 08:45 - 16:30 |
London
Suite 201, 2nd Floor 400 York Street Office hours: 08:45 - 16:30 | Toronto (Anglais seulement)
Suite 300 74, rue Victoria Office hours: 08:00 - 16:30 |
Mississauga
Suite 116, 2nd Floor Central Parkway Mall 377 Burnhamthorpe Road East Office hours: 08:00 - 16:30 | Whitby
Whitby Mall 1615 Dundas Street East
Office hours: 08:00 - 16:00 |
North York
Suite 380, 3rd Floor Joseph Shepard Building 4900 Yonge Street Office hours: 08:00 - 16:30 | Windsor
Suite 503 CIBC Building 100, Ouellette Avenue Office hours: 08:45 - 16:30 |
Ottawa
Level C, East Tower C.D. Howe Building 240 Sparks Street Office hours: 07:30 - 16:30 | |
Quebec | |
Gatineau (Hull)
Commercial Level 2 Place du Centre 200 Promenade du Portage Office hours: 08:30 - 16:30 | Saint-Laurent
Suite 112 3300 Côte Vertu Boulevard Office hours: 07:30 - 16:30 |
Montréal
West Tower Suite 803 Complexe Guy-Favreau 200 René-Lévesque Boulevard W. Office hours: 07:30 - 16:30 | Laval
Suite 500, 5th Floor 3 Place Laval Office hours: 07:30 - 16:30 |
Québec
Suite 2410, 2nd Floor Place de la Cité, Tour Cominar 2640 Laurier Boulevard
Office hours: 08:30 - 16:30 | Pointe-Claire
Fairview Pointe-Claire Shopping Centre 6815 Trans-Canada Highway
Office hours: 10:00 - 18:00 |
Saguenay
Suite 408 Immeuble Saint-Michel 3885 Harvey Boulevard Office hours: 09:00 - 16:45 | |
Saskatchewan | |
Regina
Suite 500 1870 Albert Street Office hours: 09:00 - 16:30 | Saskatoon
Immeuble Federal Suite 405 101-22nd Street East Office hours: 08:30 - 16:00 |
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