Archived — FedDev Ontario Financial Statements (Unaudited) - For the Year Ended March 31, 2011

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9. Contractual Obligations

The nature of FedDev Ontario's activities can result in some large multi-year contracts and obligations whereby FedDev Ontario will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Table 9.  Significant contractual obligations that can be reasonably estimated (in thousands of dollars)
  2012 2013 2014 2015 2016 and thereafter Total
Transfer Payments 98,000 61,000 19,000     178,000
Total 98,000 61,000 19,000     178,000

10.  Related party transactions

FedDev Ontario is related as a result of common ownership to all government departments, agencies, and Crown corporations. FedDev Ontario enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, FedDev Ontario has an agreement with the Department of Industry related to the provision of finance and administration services. During the year, FedDev Ontario received common services which were obtained without charge from other gGovernment departments as disclosed below.

  1. Common services provided without charge by other government departments

    During the year FedDev Ontario received services without charge from certain common service organizations, related to accommodation services and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in FedDev Ontario's Statement of Operation as follows:

    Table 10a.  Common services provided without charge by other government departments (in thousands of dollars)
      2011 2010
    Employer's contribution to the health and dental insurance plan 1,320 645
    Accommodation 1,949 527
    Total 3,269 1,172

    (Return to reference 10a)

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

  2. Administration of programs on behalf of other government departments

    Under a memorandum of understanding signed with Infrastructure Canada on August 9, 2009, FedDev Ontario administers four programs. During the year, the agency incurred expenses of $198,470,150 on behalf of Infrastructure Canada. These expenses are reflected in the financial statements of Infrastructure Canada and are not recorded in these financial statements.

    Table 10b.  Administration of programs on behalf of other government departments (in thousands of dollars)
      2011 2010
    Canada Strategic Infrastructure Fund – Infrastructure Canada $ 50,670 -
    Canada-Ontario Municipal Rural Infrastructure Fund – Infrastructure Canada 24,000  
    Municipal Rural Infrastructure Fund – Infrastructure Canada 22,800  
    Building Canada Fund – Infrastructure Canada 101,000  
    Total 198,470  

11. Segmented information

Presentation by segment is based on the department's program activity architecture. The presentation by segment is based on the same accounting policies as described in the summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses. The segment results for the period are as follows:

Table 11.  Segmented information (in thousands of dollars)
  Community and Business Development Infrastructure Internal services 2011 Total 2010 Total

Note — numbers may not match exactly due to rounding

Transfer Payments
Economic Action Plan 200,138 98,233 - 298,371 96,768
Non-Economic Action Plan 3,807 1,869 - 5,676 95,537
Total transfer payments 203,946 100,102 - 304,047 192,305
Operating Expenses
Salaries and employee benefits 8,559 3,483 9,647 21,690 8,279
Professional and special services 3,789 481 3,802 8,072 4,447
Accommodation 775 313 861 1,949 645
Travel 299 55 1,596 1,950 749
Amortization of tangible capital assets - 9 27 36 13
Communication 67 22 443 532 317
Furniture and equipment 21 3 1,133 1,157 814
Equipment repair and maintenance 8 8 1,665 1,681 86
Rentals 5 0 204 209 56
Utilities, materials and supplies 57 18 146 221 437
Postage 12 2 48 62 108
Other   3 88 92 1,740
Total operating expenses 13,592 4,398 19,660 37,650 17,692
Net cost from continuing operations 217,539 104,499 19,661 341,698 209,997

(Return to reference 11)

12.  Transfers from/ to other government departments

Effective August 13, 2009, the FedDev Ontario assumed responsibility for the Southern Ontario Regional Economic Development Branch from Industry Canada, in accordance with Order-in-Council P.C. 2009–1411, including the stewardship responsibility for the assets and liabilities related to the program. Due to the timing and the logistical requirements for creating a new department, the Federal Economic Development Agency for Southern Ontario remained consolidated within Industry Canada financial records for the purpose of Public Accounts reporting until April 1, 2010. Fiscal year 2009–10 as reported in these financial statements and accompanying notes has been restated to reflect the transfer of assets and liabilities to FedDev Ontario as at August 13, 2009.

Table 12.  Transfers from/ to other government departments (in thousands of dollars)
Assets
Tangible capital assets (net book value) 75
Total Assets 75
Liabilities
Vacation pay and compensatory leave 64
Employee future benefits 995
Total Liabilities 1,059
Adjustment to Equity of Canada (984)

(Return to reference 12)

In addition, the 2010 comparative figures have been reclassified on the Statement of Operations to present the revenues and expenses of the transferred operations

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