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:
|2012||2013||2014||2015||2016 and thereafter||Total|
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.
- 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
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.
- 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:
|Community and Business Development||Infrastructure||Internal services||2011 Total||2010 Total|
Note — numbers may not match exactly due to rounding
|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|
|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|
|Amortization of tangible capital assets||-||9||27||36||13|
|Furniture and equipment||21||3||1,133||1,157||814|
|Equipment repair and maintenance||8||8||1,665||1,681||86|
|Utilities, materials and supplies||57||18||146||221||437|
|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|
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.
|Tangible capital assets (net book value)||75|
|Vacation pay and compensatory leave||64|
|Employee future benefits||995|
|Adjustment to Equity of Canada||(984)|
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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